Document:

Exhibit 10.1

 

SECURITIES PURCHASE AGREEMENT

 

This Securities Purchase Agreement (this
“Agreement”) is dated as of November 20, 2020, between Arcimoto, Inc., an Oregon corporation (the “Company”),
and each purchaser identified on the signature pages hereto (each, including its successors and assigns, a “Purchaser”
and collectively the “Purchasers”).

 

WHEREAS, subject to the terms and conditions
set forth in this Agreement and pursuant to an effective registration statement under the Securities Act (as defined below), the
Company desires to issue and sell to each Purchaser, and each Purchaser, severally and not jointly, desires to purchase from the
Company, securities of the Company as more fully described in this Agreement.

 

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

 

ARTICLE I.

 

DEFINITIONS

 

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

 

“Acquiring
Person” shall have the meaning ascribed to such term in Section 4.4.

 

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

 

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

 

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

 

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

 

     

     

    

 

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

 

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

 

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

 

“Common Stock”
means the common stock of the Company, no par value, and any other class of securities into which such securities may hereafter
be reclassified or changed.

 

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

 

“Company Counsel”
means Nelson Mullins Riley & Scarborough LLP, with offices located at 4140 Parklake Ave., 2nd Floor, Raleigh, NC
27612.

 

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

 

“Disclosure Time”
means, (i) if this Agreement is signed on a day that is not a Trading Day or after 9:00 a.m. (New York City time) and before midnight
(New York City time) on any Trading Day, 9:01 a.m. (New York City time) on the Trading Day immediately following the date hereof,
unless otherwise instructed as to an earlier time by the Placement Agent, and (ii) if this Agreement is signed between midnight
(New York City time) and 9:00 a.m. (New York City time) on any Trading Day, no later than 9:01 a.m. (New York City time) on the
date hereof, unless otherwise instructed as to an earlier time by the Placement Agent.

 

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

 

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

 

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“Exempt Issuance”
means the issuance of (a) shares of Common Stock or options to employees, officers or directors of the Company pursuant to any
stock or option plan duly adopted for such purpose, by a majority of the non-employee members of the Board of Directors or a majority
of the members of a committee of non-employee directors established for such purpose for services rendered to the Company, (b)
securities upon the exercise or exchange of or conversion of securities exercisable or exchangeable for or convertible into shares
of Common Stock issued and outstanding on the date of this Agreement, provided that such securities have not been amended since
the date of this Agreement to increase the number of such securities or to decrease the exercise price, exchange price or conversion
price of such securities (other than in connection with stock splits or combinations) or to extend the term of such securities,
and (c) securities issued pursuant to acquisitions or strategic transactions approved by a majority of the disinterested directors
of the Company, provided that such securities are issued as “restricted securities” (as defined in Rule 144) and carry
no registration rights that require or permit the filing of any registration statement in connection therewith during the prohibition
period in Section 4.9(a) herein, and provided that any such issuance shall only be to a Person (or to the equityholders of a Person)
which is, itself or through its subsidiaries, an operating company or an owner of an asset in a business synergistic with the business
of the Company and shall provide to the Company additional benefits in addition to the investment of funds, but shall not include
a transaction in which the Company is issuing securities primarily for the purpose of raising capital or to an entity whose primary
business is investing in securities.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Per Share Purchase
Price” equals $13.25, subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations
and other similar transactions of the Common Stock that occur after the date of this Agreement.

 

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

 

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“Placement Agent”
means A.G.P./Alliance Global Partners.

 

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

 

“Prospectus”
means the final prospectus filed for the Registration Statement.

 

“Prospectus Supplement”
means the supplement to the Prospectus complying with Rule 424(b) of the Securities Act that is filed with the Commission and delivered
by the Company to each Purchaser at the Closing.

 

“Purchaser Party”
shall have the meaning ascribed to such term in Section 4.7.

 

“Registration Statement”
means the effective registration statement with Commission file No. 333-227683 which registers the sale of the Shares to the Purchasers.

 

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

 

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

 

“Rule 424”
means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time
to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect
as such Rule.

 

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

 

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

 

“Shares” means
the shares of Common Stock issued or issuable to each Purchaser pursuant to this Agreement.

 

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

 

“SRF” means
Sichenzia Ross Ference LLP, with offices located at 1185 Avenue of the Americas, 37th Floor, New York, New York 10036.

 

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

 

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“Subsidiary”
means any subsidiary of the Company as set forth on Schedule 3.1(a), and shall, where applicable, also include any direct
or indirect subsidiary of the Company formed or acquired after the date hereof.

 

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

 

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

 

“Transaction Documents”
means this Agreement, all exhibits and schedules thereto and hereto and any other documents or agreements executed in connection
with the transactions contemplated hereunder.

 

“Transfer Agent”
means the current transfer agent of the Company and any successor transfer agent of the Company.

 

“Variable Rate Transaction”
shall have the meaning ascribed to such term in Section 4.9(b).

 

ARTICLE II.

 

PURCHASE AND SALE

 

2.1 Closing.
On the Closing Date, upon the terms and subject to the conditions set forth herein, substantially concurrent with the execution
and delivery of this Agreement by the parties hereto, the Company agrees to sell, and the Purchasers, severally and not jointly,
agree to purchase, an aggregate of up to $15,000,000 of Shares. Each Purchaser’s Subscription Amount as set forth on the
signature page hereto executed by such Purchaser shall be made available for “Delivery Versus Payment” settlement with
the Company or its designee. The Company shall deliver to each Purchaser its respective Shares, and the Company and each Purchaser
shall deliver the other items set forth in Section 2.2 deliverable at the Closing. Upon satisfaction of the covenants and conditions
set forth in Sections 2.2 and 2.3, the Closing shall occur at the offices of SRF or such other location as the parties shall mutually
agree. Unless otherwise directed by the Placement Agent, settlement of the Shares shall occur via “Delivery Versus Payment”
(“DVP”) (i.e., on the Closing Date, the Company shall issue the Shares registered in the Purchasers’ names and
addresses and released by the Transfer Agent directly to the account(s) at the Placement Agent identified by each Purchaser; upon
receipt of such Shares, the Placement Agent shall promptly electronically deliver such Shares to the applicable Purchaser, and
payment therefor shall be made by the Placement Agent (or its clearing firm) by wire transfer to the Company).

 

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2.2 Deliveries.

 

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

 

(i) this
Agreement duly executed by the Company;

 

(ii)  a
legal opinion of Company Counsel, substantially in the form of Exhibit A attached hereto;

 

(iii)  subject
to the last sentence of Section 2.1, the Company shall have provided each Purchaser with the Company’s wire instructions,
on Company letterhead and executed by the Chief Executive Officer or Chief Financial Officer;

 

(iv)  subject
to the last sentence of Section 2.1, a copy of the irrevocable instructions to the Transfer Agent instructing the Transfer Agent
to deliver on an expedited basis via The Depository Trust Company Deposit or Withdrawal at Custodian system (“DWAC”)
Shares equal to such Purchaser’s Subscription Amount divided by the Per Share Purchase Price, registered in the name of such
Purchaser; and

 

(v)  the
Prospectus and Prospectus Supplement (which may be delivered in accordance with Rule 172 under the Securities Act).

 

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

 

(i)  this
Agreement duly executed by such Purchaser; and

 

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

 

2.3 Closing
Conditions.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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ARTICLE III.

 

REPRESENTATIONS AND WARRANTIES

 

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

 

(a) Subsidiaries.
All of the direct and indirect subsidiaries of the Company are set forth on Schedule 3.1(a). The Company owns, directly
or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any Liens, and all of the
issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free
of preemptive and similar rights to subscribe for or purchase securities. If the Company has no subsidiaries, all other references
to the Subsidiaries or any of them in the Transaction Documents shall be disregarded.

 

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

 

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

 

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

 

(e) Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other
Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than: (i)
the filings required pursuant to Section 4.3 of this Agreement, (ii) the filing with the Commission of the Prospectus Supplement,
(iii) application(s) to each applicable Trading Market for the listing of the Shares for trading thereon in the time and manner
required thereby and (iv) such filings as are required to be made under applicable state securities laws (collectively, the “Required
Approvals”).

 

(f) Issuance
of the Shares; Registration. The Shares are duly authorized and, when issued and paid for in accordance with the applicable
Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the
Company. The Company has reserved from its duly authorized capital stock the maximum number of shares of Common Stock issuable
pursuant to this Agreement. The Company has prepared and filed the Registration Statement in conformity with the requirements of
the Securities Act, which became effective on October 17, 2018 (the “Effective Date”), including the Prospectus,
and such amendments and supplements thereto as may have been required to the date of this Agreement. The Registration Statement
is effective under the Securities Act and no stop order preventing or suspending the effectiveness of the Registration Statement
or suspending or preventing the use of the Prospectus has been issued by the Commission and no proceedings for that purpose have
been instituted or, to the knowledge of the Company, are threatened by the Commission. The Company, if required by the rules and
regulations of the Commission, shall file the Prospectus with the Commission pursuant to Rule 424(b). At the time the Registration
Statement and any amendments thereto became effective, at the date of this Agreement and at the Closing Date, the Registration
Statement and any amendments thereto conformed and will conform in all material respects to the requirements of the Securities
Act and did not and will not contain any untrue statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein not misleading; and the Prospectus and any amendments or supplements
thereto, at the time the Prospectus or any amendment or supplement thereto was issued and at the Closing Date, conformed and will
conform in all material respects to the requirements of the Securities Act and did not and will not contain an untrue statement
of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading. The Company was at the time of the filing of the Registration Statement eligible to
use Form S-3. The Company is eligible to use Form S-3 under the Securities Act and it meets the transaction requirements with respect
to the aggregate market value of securities being sold pursuant to this offering and during the twelve (12) months prior to this
offering, as set forth in General Instruction I.B.6 of Form S-3.

 

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(g) Capitalization.
The capitalization of the Company as of the date hereof is as set forth in the SEC Reports. The Company has not issued any capital
stock since its most recently filed periodic report under the Exchange Act, other than pursuant to the exercise of employee stock
options under the Company’s stock option plans, the issuance of shares of Common Stock to employees pursuant to the Company’s
employee stock purchase plans and pursuant to the conversion and/or exercise of Common Stock Equivalents outstanding as of the
date of the most recently filed periodic report under the Exchange Act. No Person has any right of first refusal, preemptive right,
right of participation, or any similar right to participate in the transactions contemplated by the Transaction Documents. There
are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to,
or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe
for or acquire, any shares of Common Stock or the capital stock of any Subsidiary, or contracts, commitments, understandings or
arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock or Common
Stock Equivalents or capital stock of any Subsidiary. The issuance and sale of the Shares will not obligate the Company or any
Subsidiary to issue shares of Common Stock or other securities to any Person (other than the Purchasers). There are no outstanding
securities or instruments of the Company or any Subsidiary with any provision that adjusts the exercise, conversion, exchange or
reset price of such security or instrument upon an issuance of securities by the Company or any Subsidiary. There are no outstanding
securities or instruments of the Company or any Subsidiary that contain any redemption or similar provisions, and there are no
contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to redeem
a security of the Company or such Subsidiary. The Company does not have any stock appreciation rights or “phantom stock”
plans or agreements or any similar plan or agreement. All of the outstanding shares of capital stock of the Company are duly authorized,
validly issued, fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and none
of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities.
No further approval or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale
of the Shares. There are no stockholders agreements, voting agreements or other similar agreements with respect to the Company’s
capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s
stockholders.

 

(h) SEC
Reports; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents required
to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof,
for the two years preceding the date hereof (or such shorter period as the Company was required by law or regulation to file such
material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, together with
the Prospectus and the Prospectus Supplement, being collectively referred to herein as the “SEC Reports”) on
a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration
of any such extension. As of their respective dates, the SEC Reports complied in all material respects with the requirements of
the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement
of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading. The Company has never been an issuer subject
to Rule 144(i) under the Securities Act. The financial statements of the Company included in the SEC Reports comply in all material
respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect
at the time of filing. Such financial statements have been prepared in accordance with United States generally accepted accounting
principles applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified
in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes
required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated Subsidiaries
as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of
unaudited statements, to normal, immaterial, year-end audit adjustments.

 

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

 

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

 

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

 

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

 

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

 

(n) Regulatory
Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Reports,
except where the failure to possess such permits could not reasonably be expected to result in a Material Adverse Effect (“Material
Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation
or modification of any Material Permit.

 

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

 

(p) Intellectual
Property. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark
applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights
and similar rights necessary or required for use in connection with their respective businesses as described in the SEC Reports
and which the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual Property Rights”).
None of, and neither the Company nor any Subsidiary has received a notice (written or otherwise) that any of, the Intellectual
Property Rights has expired, terminated or been abandoned, or is expected to expire or terminate or be abandoned, within two (2)
years from the date of this Agreement. Neither the Company nor any Subsidiary has received, since the date of the latest audited
financial statements included within the SEC Reports, a written notice of a claim or otherwise has any knowledge that the Intellectual
Property Rights violate or infringe upon the rights of any Person, except as could not have or reasonably be expected to not have
a Material Adverse Effect. To the knowledge of the Company, all such Intellectual Property Rights are enforceable and there is
no existing infringement by another Person of any of the Intellectual Property Rights. The Company and its Subsidiaries have taken
reasonable security measures to protect the secrecy, confidentiality and value of all of their intellectual properties, except
where failure to do so could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

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

 

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(r) Transactions
With Affiliates and Employees. Except as set forth on Schedule 3.1(r), none of the officers or directors of the Company
or any Subsidiary and, to the knowledge of the Company, none of the employees of the Company or any Subsidiary is presently a party
to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including
any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or
personal property to or from, providing for the borrowing of money from or lending of money to or otherwise requiring payments
to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director,
or any such employee has a substantial interest or is an officer, director, trustee, stockholder, member or partner, in each case
in excess of $120,000 other than for (i) payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses
incurred on behalf of the Company and (iii) other employee benefits, including stock option agreements under any stock option plan
of the Company.

 

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

 

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

 

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

 

(v) Registration
Rights. No Person has any right to cause the Company or any Subsidiary to effect the registration under the Securities Act
of any securities of the Company or any Subsidiary.

 

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

 

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

 

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

 

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

 

(aa) Solvency. Based on the
consolidated financial condition of the Company as of the Closing Date, after giving effect to the receipt by the Company of the
proceeds from the sale of the Shares hereunder, (i) the fair saleable value of the Company’s assets exceeds the amount that
will be required to be paid on or in respect of the Company’s existing debts and other liabilities (including known contingent
liabilities) as they mature, (ii) the Company’s assets do not constitute unreasonably small capital to carry on its business
as now conducted and as proposed to be conducted including its capital needs taking into account the particular capital requirements
of the business conducted by the Company, consolidated and projected capital requirements and capital availability thereof, and
(iii) the current cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate all of its
assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect of
its liabilities when such amounts are required to be paid. The Company does not intend to incur debts beyond its ability to pay
such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt). The
Company has no knowledge of any facts or circumstances which lead it to believe that it will file for reorganization or liquidation
under the bankruptcy or reorganization laws of any jurisdiction within one year from the Closing Date. Schedule 3.1(aa)
sets forth as of the date hereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which
the Company or any Subsidiary has commitments. For the purposes of this Agreement, “Indebtedness” means (x)
any liabilities for borrowed money or amounts owed in excess of $50,000 (other than trade accounts payable incurred in the ordinary
course of business), (y) all guaranties, endorsements and other contingent obligations in respect of indebtedness of others, whether
or not the same are or should be reflected in the Company’s consolidated balance sheet (or the notes thereto), except guaranties
by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business;
and (z) the present value of any lease payments in excess of $50,000 due under leases required to be capitalized in accordance
with GAAP. Neither the Company nor any Subsidiary is in default with respect to any Indebtedness.

 

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(bb) Tax Status. Except for
matters that would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect,
the Company and its Subsidiaries each (i) has made or filed all United States federal, state and local income and all foreign income
and franchise tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has paid all taxes
and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports
and declarations and (iii) has set aside on its books provision reasonably adequate for the payment of all material taxes for periods
subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material amount
claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company or of any Subsidiary know of no
basis for any such claim.

 

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

 

(dd) Accountants. The Company’s
accounting firm is set forth on Schedule 3.1(cc) of the Disclosure Schedules. To the knowledge and belief of the Company,
such accounting firm (i) is a registered public accounting firm as required by the Exchange Act and (ii) shall express its opinion
with respect to the financial statements to be included in the Company’s Annual Report for the fiscal year ending December
31, 2020.

 

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

 

(ff) Acknowledgment Regarding
Purchaser’s Trading Activity. Anything in this Agreement or elsewhere herein to the contrary notwithstanding
(except for Sections 3.2(f) and 4.12 hereof), it is understood and acknowledged by the Company that: (i) none of the
Purchasers has been asked by the Company to agree, nor has any Purchaser agreed, to desist from purchasing or selling, long
and/or short, securities of the Company, or “derivative” securities based on securities issued by the Company or
to hold the Shares for any specified term; (ii) past or future open market or other transactions by any Purchaser,
specifically including, without limitation, Short Sales or “derivative” transactions, before or after the closing
of this or future private placement transactions, may negatively impact the market price of the Company’s
publicly-traded securities; (iii) any Purchaser, and counter-parties in “derivative” transactions to which any
such Purchaser is a party, directly or indirectly, presently may have a “short” position in the Common Stock, and
(iv) each Purchaser shall not be deemed to have any affiliation with or control over any arm’s length counter-party in
any “derivative” transaction. The Company further understands and acknowledges that (y) one or more Purchasers
may engage in hedging activities at various times during the period that the Shares are outstanding, and (z) such hedging
activities (if any) could reduce the value of the existing stockholders' equity interests in the Company at and after the
time that the hedging activities are being conducted. The Company acknowledges that such aforementioned hedging activities do
not constitute a breach of any of the Transaction Documents.

 

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

 

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(hh) Stock Option Plans. Each
stock option granted by the Company under the Company’s stock option plan was granted (i) in accordance with the terms of
the Company’s stock option plan and (ii) with an exercise price at least equal to the fair market value of the Common Stock
on the date such stock option would be considered granted under GAAP and applicable law. No stock option granted under the Company’s
stock option plan has been backdated. The Company has not knowingly granted, and there is no and has been no Company policy or
practice to knowingly grant, stock options prior to, or otherwise knowingly coordinate the grant of stock options with, the release
or other public announcement of material information regarding the Company or its Subsidiaries or their financial results or prospects.

 

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

 

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

 

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

 

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

 

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

 

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

 

(b) Understandings
or Arrangements. Such Purchaser is acquiring the Shares as principal for its own account and has no direct or indirect arrangement
or understandings with any other persons to distribute or regarding the distribution of such Shares (this representation and warranty
not limiting such Purchaser’s right to sell the Shares pursuant to the Registration Statement or otherwise in compliance
with applicable federal and state securities laws). Such Purchaser is acquiring the Shares hereunder in the ordinary course of
its business.

 

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

 

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

 

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(e) Access
to Information. Such Purchaser acknowledges that it has had the opportunity to review the Transaction Documents (including
all exhibits and schedules thereto) and the SEC Reports and has been afforded, (i) the opportunity to ask such questions as it
has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the
offering of the Shares and the merits and risks of investing in the Shares; (ii) access to information about the Company and its
financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate
its investment; and (iii) the opportunity to obtain such additional information that the Company possesses or can acquire without
unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment. Such Purchaser
acknowledges and agrees that neither the Placement Agent nor any Affiliate of the Placement Agent has provided such Purchaser with
any information or advice with respect to the Shares nor is such information or advice necessary or desired. Neither the Placement
Agent nor any Affiliate has made or makes any representation as to the Company or the quality of the Shares and the Placement Agent
and any Affiliate may have acquired non-public information with respect to the Company which such Purchaser agrees need not be
provided to it. In connection with the issuance of the Shares to such Purchaser, neither the Placement Agent nor any of its Affiliates
has acted as a financial advisor or fiduciary to such Purchaser.

 

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

 

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

 

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ARTICLE IV.

 

OTHER AGREEMENTS OF THE PARTIES

 

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

 

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

 

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

 

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

 

4.5 Non-Public
Information. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents,
which shall be disclosed pursuant to Section 4.3, the Company covenants and agrees that neither it, nor any other Person acting
on its behalf will provide any Purchaser or its agents or counsel with any information that constitutes, or the Company reasonably
believes constitutes, material non-public information, unless prior thereto such Purchaser shall have consented to the receipt
of such information and agreed with the Company to keep such information confidential. The Company understands and confirms that
each Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company. To the extent
that the Company, any of its Subsidiaries, or any of their respective officers, directors, agents, employees or Affiliates delivers
any material, non-public information to a Purchaser without such Purchaser’s consent, the Company hereby covenants and agrees
that such Purchaser shall not have any duty of confidentiality to the Company, any of its Subsidiaries, or any of their respective
officers, directors, agents, employees or Affiliates, or a duty to the Company, any of its Subsidiaries or any of their respective
officers, directors, agents, employees or Affiliates not to trade on the basis of, such material, non-public information, provided
that the Purchaser shall remain subject to applicable law. To the extent that any notice provided pursuant to any Transaction Document
constitutes, or contains, material, non-public information regarding the Company or any Subsidiaries, the Company shall simultaneously
file such notice with the Commission pursuant to a Current Report on Form 8-K. The Company understands and confirms that each Purchaser
shall be relying on the foregoing covenant in effecting transactions in securities of the Company.

 

    23

     

    

 

4.6 Use
of Proceeds. Except as set forth on Schedule 4.6 attached hereto, the Company shall use the net proceeds from the sale
of the Shares hereunder for working capital purposes and shall not use such proceeds: (a) for the redemption of any Common Stock
or Common Stock Equivalents, (b) for the settlement of any outstanding litigation or (c) in violation of FCPA or OFAC regulations.

 

4.7 Indemnification
of Purchasers. Subject to the provisions of this Section 4.7, the Company will indemnify and hold each Purchaser and its directors,
officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent role of a
Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser (within
the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders,
agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles
notwithstanding a lack of such title or any other title) of such controlling persons (each, a “Purchaser Party”)
harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments,
amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such Purchaser
Party may suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants or
agreements made by the Company in this Agreement or in the other Transaction Documents or (b) any action instituted against the
Purchaser Parties in any capacity, or any of them or their respective Affiliates, by any stockholder of the Company who is not
an Affiliate of such Purchaser Party, with respect to any of the transactions contemplated by the Transaction Documents (unless
such action is solely based upon a material breach of such Purchaser Party’s representations, warranties or covenants under
the Transaction Documents or any agreements or understandings such Purchaser Party may have with any such stockholder or any violations
by such Purchaser Party of state or federal securities laws or any conduct by such Purchaser Party which is finally judicially
determined to constitute fraud, gross negligence or willful misconduct). If any action shall be brought against any Purchaser Party
in respect of which indemnity may be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the Company
in writing, and the Company shall have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable
to the Purchaser Party. Any Purchaser Party shall have the right to employ separate counsel in any such action and participate
in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Purchaser Party except to the
extent that (i) the employment thereof has been specifically authorized by the Company in writing, (ii) the Company has failed
after a reasonable period of time to assume such defense and to employ counsel or (iii) in such action there is, in the reasonable
opinion of counsel, a material conflict on any material issue between the position of the Company and the position of such Purchaser
Party, in which case the Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel.
The Company will not be liable to any Purchaser Party under this Agreement (y) for any settlement by a Purchaser Party effected
without the Company’s prior written consent, which shall not be unreasonably withheld or delayed; or (z) to the extent, but
only to the extent that a loss, claim, damage or liability is attributable to any Purchaser Party’s breach of any of the
representations, warranties, covenants or agreements made by such Purchaser Party in this Agreement or in the other Transaction
Documents. The indemnification required by this Section 4.7 shall be made by periodic payments of the amount thereof during the
course of the investigation or defense, as and when bills are received or are incurred. The indemnity agreements contained herein
shall be in addition to any cause of action or similar right of any Purchaser Party against the Company or others and any liabilities
the Company may be subject to pursuant to law.

 

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

 

4.9 Subsequent Equity Sales.

 

(a) From
the date hereof until the date that is 45 calendar days from the Closing Date, neither the Company nor any Subsidiary shall issue,
enter into any agreement to issue or announce the issuance or proposed issuance of any shares of Common Stock or Common Stock Equivalents
at a price less than the Per Share Purchase Price.

 

    25

     

    

 

(b) From
the date hereof until the date that is 45 calendar days from the Closing Date, the Company shall be prohibited from effecting or
entering into an agreement to effect any issuance by the Company or any of its Subsidiaries of Common Stock or Common Stock Equivalents
(or a combination of units thereof) involving a Variable Rate Transaction. “Variable Rate Transaction” means
a transaction in which the Company (i) issues or sells any debt or equity securities that are convertible into, exchangeable or
exercisable for, or include the right to receive additional shares of Common Stock either (A) at a conversion price, exercise price
or exchange rate or other price that is based upon and/or varies with the trading prices of or quotations for the shares of Common
Stock at any time after the initial issuance of such debt or equity securities, or (B) with a conversion, exercise or exchange
price that is subject to being reset at some future date after the initial issuance of such debt or equity security or upon the
occurrence of specified or contingent events directly or indirectly related to the business of the Company or the market for the
Common Stock or (ii) enters into, or effects a transaction under, any agreement, including, but not limited to, an equity line
of credit, whereby the Company may issue securities at a future determined price. Any Purchaser shall be entitled to obtain injunctive
relief against the Company to preclude any such issuance, which remedy shall be in addition to any right to collect damages.

 

(c) Notwithstanding
the foregoing, this Section 4.9 shall not apply in respect of an Exempt Issuance, except that no Variable Rate Transaction shall
be an Exempt Issuance.

 

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

 

4.11 Certain
Transactions and Confidentiality. Each Purchaser, severally and not jointly with the other Purchasers, covenants that neither
it nor any Affiliate acting on its behalf or pursuant to any understanding with it will execute any purchases or sales, including
Short Sales of any of the Company’s securities during the period commencing with the execution of this Agreement and ending
at such time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release
as described in Section 4.3.Each Purchaser, severally and not jointly with the other Purchasers, covenants that until such time
as the transactions contemplated by this Agreement are publicly disclosed by the Company pursuant to the initial press release
as described in Section 4.3, such Purchaser will maintain the confidentiality of the existence and terms of this transaction and
the information included in the Disclosure Schedules. NNotwithstanding the foregoing, in the case of a Purchaser that is a multi-managed
investment vehicle whereby separate portfolio managers manage separate portions of such Purchaser’s assets and the portfolio
managers have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such Purchaser’s
assets, the covenant set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that
made the investment decision to purchase the Shares covered by this Agreement.

 

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4.12 Capital
Changes. Until the one year anniversary of the Closing Date, the Company shall not undertake a reverse or forward stock split
or reclassification of the Common Stock without the prior written consent of the Purchasers holding a majority in interest of the
Shares.

 

ARTICLE V.

 

MISCELLANEOUS

 

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

 

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

 

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

 

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

 

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5.5 Amendments;
Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed,
in the case of an amendment, by the Company and Purchasers which purchased at least 50.1% in interest of the Shares based on the
initial Subscription Amounts hereunder or, in the case of a waiver, by the party against whom enforcement of any such waived provision
is sought, provided that if any amendment, modification or waiver disproportionately and adversely impacts a Purchaser (or group
of Purchasers), the consent of such disproportionately impacted Purchaser (or group of Purchasers) shall also be required. No waiver
of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver
in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall
any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right. Any proposed
amendment or waiver that disproportionately, materially and adversely affects the rights and obligations of any Purchaser relative
to the comparable rights and obligations of the other Purchasers shall require the prior written consent of such adversely affected
Purchaser. Any amendment effected in accordance with this Section 5.5 shall be binding upon each Purchaser and holder of Shares
and the Company.

 

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

 

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

 

5.8 No
Third-Party Beneficiaries. The Placement Agent shall be the third party beneficiary of the representations and warranties of
the Company in Section 3.1 and the representations and warranties of the Purchasers in Section 3.2. This Agreement is intended
for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor
may any provision hereof be enforced by, any other Person, except as otherwise set forth in Section 4.7 and this Section 5.8.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(Signature Pages Follow)

 

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

  

	ARCIMOTO, INC.	 	Address for Notice:
	 	 	 	 	 	 
	By:	 	 	E-Mail:	 
		Name:	 	 	Fax:	 
		Title:	 	 	 	 
	 	 	 	 	 	 
	With a copy to (which shall not constitute notice):	 	 	 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOR PURCHASER FOLLOWS]

 

    32

     

    

 

[PURCHASER SIGNATURE PAGES TO FUV SECURITIES
PURCHASE AGREEMENT]

 

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

 

Name of Purchaser: ________________________________________________________

Signature of Authorized Signatory of
Purchaser: _________________________________

Name of Authorized Signatory: _______________________________________________

Title of Authorized Signatory: ________________________________________________

Email Address of Authorized Signatory:_________________________________________

Facsimile Number of Authorized Signatory: __________________________________________

Address for Notice to Purchaser:

 

Address for Delivery of Shares to Purchaser (if not same as
address for notice):

 

Subscription Amount: $_________________

 

Shares: _________________

 

 

33Exhibit 10.4

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE
REGISTRANT, IF PUBLICLY DISCLOSED.

 

DEVELOPMENT
AND PRODUCTION AGREEMENT

 

This Development
and Production Agreement (“Agreement”), which is effective as of August 4, 2020 (the “Effective Date”)
is made and entered into by and between Matrix Industries, Inc., a Delaware USA corporation with a place of business at 1440 O’Brien
Drive, Suite A-1, Menlo Park, California, USA 94025 (“Company”) and MEDIROM Healthcare Technologies Inc., a
Japan corporation having a place of business at Tradepia Odaiba 16F, 2-3-1 Daiba, Minato-ku, Tokyo 135-0091, Japan (“Customer”).
Company and Customer are sometimes referred to herein individually as a “Party” and collectively as the “Parties”.

 

RECITALS

 

	A.	WHEREAS,
Company has developed thermoelectric energy harvesting technology and applied it to wearable devices and offers development services
and its thermoelectric energy harvesting modules set forth in Appendix A (the “Products”);
	 	 
	B.	WHEREAS,
the Parties wish to collaborate in the development and deployment of a completed wearable device and service offering described
in Appendix A as the “Customer Product”;
	 	 
	C.	WHEREAS,
Customer desires to purchase technical and engineering services (“Development Services”) and Products from
Company for incorporation into Customer Products to be sold by Customer in and for use solely in the Territory in the Field (as
those terms are defined and set forth in Appendix A);
	 	 
	D.	WHEREAS,
in connection with this Agreement, the Parties are entering into that certain Software License
Agreement of even date herewith as attached hereto as Appendix E) (the “SLA”), pursuant to which Company will
license to Customer the Firmware (as defined in the SLA) and provide the Support (as defined in the SLA), all as further described
in and subject to the terms and conditions of the SLA; and
	 	 
	E.	WHEREAS,
Subject to the terms and conditions of this Agreement, Company is willing to perform the Development Services, and to supply to
Customer the Products for use solely in the Territory in the Field on an exclusive basis in the Territory in the Field, all as
further described herein and subject to the terms and conditions set forth below.

 

     

     

    

 

NOW, THEREFORE,
in consideration of the foregoing premises and the mutual covenants herein contained, and intending to be legally bound hereby,
the Parties agree as follows:

 

AGREEMENT

 

		1.	Definitions.
                                         As used herein,

 

a.    
 “Affiliate” means, with respect to any Person, any other Person, which directly or indirectly controls, is
controlled by, or is under common control with, such Person. A Person shall be regarded as in control of another Person if it
owns, or directly or indirectly controls, fifty percent (50%) or more of the voting stock or other ownership interest of the other
Person, or if it directly or indirectly possesses the power to direct or cause the direction of the management and policies of
the other Person by any means whatsoever.

 

b.    
 “Commercialize”, “Commercializing” and “Commercialization” shall mean
activities directed to using, marketing, advertising, promoting, exploiting, distributing, importing, selling, offering for sale
and/or disposing of a product.

 

c.    
 “Confidential Information” means, with respect to a Party (“Discloser”), all information
of any kind whatsoever, and all tangible and intangible embodiments thereof of any kind whatsoever, which is disclosed by such
Party to the other Party (“Recipient”) that is marked or identified as “Confidential” or which
is treated by Discloser as confidential or proprietary and which a reasonable person would recognize to be confidential or proprietary
from its nature or the manner of its disclosure. Notwithstanding the foregoing, Confidential Information of a Party shall not
include information which (i) was publicly known prior to disclosure of such information by the Discloser to the Recipient, (ii)
became publicly known, without fault on the part of the Recipient subsequent to disclosure of such information by the Discloser
to the Recipient, (iii) was received by the Recipient at any time from a source, other than the Discloser, rightfully having possession
of and the right to disclose such information without obligation of confidentiality, or (iv) was independently developed by employees
or agents of the Recipient who have not had access to or made use of any information disclosed by the Discloser to the Recipient.

 

d.    
 “Defect” means any material non-conformance to the Specifications. Products that are subject to a Defect may
be referred to herein as “Defective.”

 

e.     “Development Services” means technical and engineering activities provided by Company for the design, development,
and preparation for manufacturing of the Product.

 

f.      “Field” means and is limited to the field described in Appendix A under the heading “Field”.

 

g.    
 “Intellectual Property Rights” means all past, present and future trade secret rights, trademark rights, patent
rights, copyrights, moral rights, contract rights, and other proprietary rights in any jurisdiction.

 

h.    
 “Law” and “Laws” means all laws, statutes, rules, regulations, ordinances and other pronouncements
having the effect of law of any federal, national, multinational, state, regional, provincial, county, city or other political
subdivision, agency or other body, domestic or foreign.

 

i.     
 “Person” means an individual, corporation, partnership, limited liability company, trust, business trust,
association, joint stock company, joint venture, pool, syndicate, sole proprietorship, unincorporated organization,
governmental authority or any other form of entity not specifically listed herein.

 

    Page 2 of 35

     

    

 

j.     
 “Specifications” mean the specifications set forth in Appendix C. From time to time, the Development Services
and Specifications may be amended upon mutual written agreement by the Parties.

 

k.    
 “Technology” means and includes all innovations, improvements, suggestions, ideas, apparatuses, methods, processes,
inventions (whether or not patentable), discoveries, proprietary information, trade secrets, know-how, protocols, specifications,
techniques, works of authorship (including software), algorithms, documentation, designs, diagrams, data, test results, reports,
and other forms of technology and information, whether in tangible or intangible form.

 

l.      
 “Third Party” means any Person other than Company, Customer, and their respective Affiliates.

 

		2.	Product
                                         Supply.

 

Supply; Exclusivity.
Subject to the terms and conditions of this Agreement, Company agrees to sell the Products to Customer within the Territory for
use by Customer in the Field. Except for the particular third party that Company has identified to Customer, Company will not
provide, directly or indirectly, the Products to any third party for such Third Party, during the Initial Term, to distribute
or sell the Products (whether in stand-alone form or as embedded or incorporated into a finished product of such Third Party)
within the Field and Territory. For clarity, Company retains at all times the right to (A) Commercialize the Products inside and
outside of the Field and inside and outside of the Territory so long as Company does not provide the Products to a Third Party
for such Third Party, during the Initial Term, to distribute or sell the Products (whether in stand-alone form or as embedded
or incorporated into a finished product of such Third Party) within the Field and Territory, (B) undertake and provide general
engineering, customization, and consulting work for or to any Third Party, and (C) Commercialize its own product and supply against
prior contractual obligations to Richemont Cartier without restriction other than activity band for consumer lifestyle health
monitoring with all of the following characteristics:

 

		i)	Does
                                         not have a display; 

 

		ii)	Does
                                         not contain GPS or other location capability

 

		iii)	Does
                                         includes heart rate and motion sensing

 

		iv)	For
                                         clarity, industrial, medical, and clinical applications are not considered exclusive.

 

b.    Prohibited Activities. Neither Customer nor its Affiliates may, directly or indirectly, during the term of this Agreement,
(i) export, Commercialize, or otherwise exploit the Products (including as embedded or incorporated into any product of Customer)
outside the Field or outside the Territory, or (ii) sell or distribute the Products (including as embedded or incorporated into
any product of Customer) to any Person whom Customer or any of its Affiliates knows, or has a reasonable suspicion, has caused
or will cause or has permitted or will permit the Products (including as embedded or incorporated into any product of Customer)
to be Commercialized outside the Field or outside the Territory.

 

    Page 3 of 35

     

    

 

c.    
 Additional Products. From time to time, the Products listed in Appendix A and the prices listed in Appendix B may be amended
by mutual agreement of the Parties.

 

d.   
Firmware. Notwithstanding anything to the contrary contained herein or in any attachment hereto (other than the SLA), the
Products sold by Company to Customer hereunder expressly exclude the Firmware, which is licensed, not sold, to Customer pursuant
to the SLA. Any and all use of the Firmware by Customer and its End Customers (as defined in the SLA) shall be governed by and
subject to, the terms and conditions of the SLA.

 

		3.	Purchase
                                         of Products.

 

a.    
Forecast and Reports. Customer will provide Company with a twelve (12) months rolling forecast of estimated quantities
of the Products which Customer intends to order from Company. The forecast is for planning purposes only and is not binding. Customer
will deliver the initial forecast within thirty (30) days after the Effective Date. Thereafter, Customer will deliver the forecast
and the reports on a monthly basis by the first business day of each month.

 

b.   
Purchase Orders. On the Effective Date, Customer is required to purchase the minimum quantity of Products referenced in
Appendix A as Initial Product Purchase Requirement and thereafter, on an annual basis during the term of this Agreement, the Annual
Minimum Purchase Requirement referenced in Appendix A. From time to time, Customer will place written purchase orders with Company
to purchase additional quantity of Products. Each purchase order shall identify (i) the purchase order number, (ii) the quantity
of Products Customer desires to purchase, (iii) delivery address, (iv) the requested shipment date, (v) the price to be paid for
the Products, and (vi) any other elements necessary to ensure the timely delivery of the Products. The Parties agree that the
shipment dates requested in the purchase order must be at least forty five (45) days after the purchase order is submitted to
Company. All purchase orders are subject to acceptance by Company. Company shall indicate its written acceptance of each purchase
order within [5] days of receipt thereof, failing which the purchase order shall be deemed accepted. In its acceptance, Company
shall notify Customer of the estimated shipping date of the Products. All purchase orders placed under this Agreement are subject
to the terms and conditions provided in this Agreement, unless otherwise agreed upon formally in writing between the Parties with
signatures of responsible executives. Company agrees to sell to Customer, if ordered, at least 300,000 units of Product during
[2] years since the Effective Date provided that this Supply Agreement is in force and that Customer is not and has not been in
default on any of its obligations under this Supply Agreement.

 

c.     Shipment,
Title and Delivery. All sales of the Products are made Ex Works (Incoterms 2020) Company’s or its
supplier’s facility. At the time a Product is delivered to Customer or an agent of Customer, including common carrier,
title and risk of loss of the Product shall pass to Customer and Company is not responsible for any subsequent delay in
transportation or non-delivery of the Product. Customer shall provide whatever insurance against loss or damage it considers
necessary once a Product is shipped from Company or its supplier’s facility, and shall be responsible for all shipping
and related costs following shipment of the Product at Company’s or its supplier’s facility.

 

    Page 4 of 35

     

    

 

d.   
Order Reschedule or Cancellation. Reschedule or cancellation of any purchase order by Customer prior to shipment will be
subject to the terms specified in Appendix B.

 

e.    
Reserved.

 

f.    
Non-Conforming Orders.

 

		i)	Customer
                                         shall inform Company in writing, within thirty (30) days of receipt of Products under
                                         a particular purchase order (the “Review Period”), of any claims in
                                         which (a) there is a shortfall in the quantity of Products delivered, or (b) a delivered
                                         Product is Defective, provided that if a Defect in the Product could not reasonably be
                                         discovered by Customer within the Review Period (a “Latent Defect”),
                                         Customer shall provide Company with notice of such Latent Defect within thirty (30) days
                                         after discovering and confirming such Latent Defect (but in all cases within ninety (90)
                                         days of delivery' of the Product to Customer hereunder). Customer will return Defective
                                         Products to Company at Company’s expense. Provided that Customer complies with
                                         the obligations set forth above in this Section 3(f)(i):

 

		(1)	in
                                         the event of a shortfall in the quantity of Products delivered under a purchase order,
                                         Company shall supply as soon as reasonably practicable, but no later than [30] days after
                                         receipt of the Products, to Customer any additional Products as is necessary to meet
                                         the quantity ordered under such purchase order;

 

		(2)	in
                                         the event that more Products are delivered to Customer than ordered under a purchase
                                         order, Customer may elect either to (i) return to Company, at Company’s expense,
                                         any Products in excess of the quantity ordered, or (ii) accept any Products in excess
                                         of the quantity ordered as against future purchase orders of Products; and

 

		(3)	in
                                         the event a Product is Defective, Company will honor the production warranty provisions
                                         as stated in Appendix B.

 

		ii)	In
                                         the event Company or its supplier does not agree with Customer’s determination
                                         that Products are Defective, Company shall promptly notify Customer of its dispute. In
                                         such event, Customer shall promptly segregate the disputed Products (“Disputed
                                         Products”) from the undisputed Products and the Parties will attempt, in good
                                         faith, to resolve such dispute. If the Parties cannot resolve such dispute within fifteen
                                         (15) days, an independent, neutral, qualified expert that is reasonably acceptable to
                                         both Parties shall be asked to inspect and test the Disputed Products. If such expert
                                         finds that the Disputed Products are not Defective, Customer shall accept delivery of
                                         the Products and pay the fees related to such inspection and testing and shall pay for
                                         the Disputed Products in accordance with this Agreement. If such expert finds that the
                                         Disputed Products are Defective, Company shall comply with its obligation under Section
                                         3(f)(i)(3) and pay the fees of such inspection and testing. The findings of such
                                         inspection and testing shall be final and binding on the Parties and treated as the Company’s
                                         Confidential Information.

 

    Page 5 of 35

     

    

 

		4.	Compliance
                                         with Laws. Each Party will comply with all applicable Laws with regard to its Commercialization
                                         of the Products (including as embedded or incorporated into any product of Customer)
                                         or otherwise regarding such Party’s activities hereunder. Neither Party will engage
                                         in any
illegal or unethical practices in connection with its Commercialization of the Products (including as embedded or incorporated
into any product of Customer) or otherwise regarding such Party’s activities hereunder. Without limiting the foregoing,
each Party shall comply, and shall ensure its officers, directors, employees and contractors, subcontractors, agents and any person
or entity acting on its behalf or under its control comply, with all applicable anti-corruption Laws, including but not limited
to the U.S. Foreign Corrupt Practices Act (“FCPA”). If at any time any potential or actual conflict of interest
arises the Party that becomes aware of such conflict shall immediately notify the other Party in writing of the potential or actual
conflict. No payments or transfers of value shall be made which have the purpose or effect of public or commercial bribery, acceptance
or acquiescence in extortion, kickbacks or other unlawful or improper means of obtaining or retaining business or directing business
to any Person. Each Party' shall cooperate fully in the other Party’s efforts to enforce the terms of this provision, including
but not limited to providing, upon request from the other Party (a) certification of compliance with this provision as signed
by an authorized representative of Customer or Company, as applicable, and (b) reasonable cooperation at the requesting Party’s
expense with respect to any investigation relating to this provision.

 

		5.	Fees.

 

a.    
Product Price. The Products will be sold to Customer at the Product Prices set forth in Appendix B.

 

b.   
Taxes and Other Charges. The prices owed by Customer to Company as set forth in this Agreement (including all Software
Fees under the SLA) exclude all taxes, whether or not set forth separately. Customer shall be responsible for all sales, use,
VAT and other taxes (including taxes based on Customer’s net income), fees and import duties arising from the purchase and
delivery of the Products and the licensing of the Firmware. The prices will be subject to an additional charge to cover any applicable
tax or government assessments (other than any tax based solely upon Company’s net income) and related interest which Company
is at any time obligated to pay or collect in connection with or arising out of transactions between Company and Customer. The
prices do not include any transportation or shipping charges, insurance charges, export or special packaging charges. The prices
also do not include any charges relating to inspection performed by outside individuals, entities, or agents at the request of
Customer.

 

c.     Payment. All payments due under this Agreement will be made in U.S. dollars in accordance with the Payment Terms set forth
in Appendix B. Payments shall be made, at the instruction of Company, by either (i) a check to Company, or (ii) electronic
transfer of funds to Company’s account. Except as may be expressly provided in this Agreement, all payments made under this
Agreement are non-refundable. Failure of a Product to comply with the Specifications will not delay Customer’s obligation
to pay for the Product but may be subject to the remedies set forth in Section 3(f).

 

d.     Late
Fees. In the event Customer fails to make any payments when due under this Agreement then Customer will be charged a late
fee of one and a half percent (1.5%) of the outstanding balance per month or the maximum rate allowed by applicable Law,
whichever is lower. Company shall recover any reasonable out-of-pocket expenses incurred in collecting payments due,
including, without limitation, any bank charges for returned checks and attorneys’ fees. In the event of any late
payment by Customer that is not cured within ten (10) days from the date of notice thereof, Company may decline to make
further shipments of the Products until all amounts due and late fees are paid in full, without in any way affecting its
rights under this Agreement. Company may enforce the foregoing rights without waiving any and all other rights or remedies it
may have for any breach of this Agreement.

 

    Page 6 of 35

     

    

 

e.    
Extension of Credit. Company may, in its sole discretion, extend credit to Customer for some or all of the entire amount
due to Company hereunder. The amount or terms of credit may be changed or withdrawn completely by Company at any time for any
reason.

 

		6.	Intellectual
                                         Property.

 

a.   
Company IP. As between the Parties, Company exclusively owns all right, title, and interest in and to (i) the Products
and Firmware, including all Technology embodied or incorporated therein and all Intellectual Property Rights therein or thereto,
and (ii) all other Technology that is either (i) owned by Company (or its affiliates or third party suppliers or licensors) prior
to the Effective Date, (ii) developed, acquired, or otherwise obtained by Company (or its affiliates or third party suppliers
or licensors) during the term of this Agreement, and (iii) any improvements, enhancements, modifications, or derivative works
of or to any of the foregoing, including all Intellectual Property Rights therein or thereto (collectively, the “Company
IP”). There are no implied rights or licenses granted to Customer hereunder and Company expressly reserves all of its
Intellectual Property Rights in and to the Company IP (including the Products and Firmware).

 

b.    
Company hereby grants to Customer during the term of this Agreement a worldwide, non-exclusive, non-transferable, non-sublicensable
license under Company’s Intellectual Property Rights for Customer to (i) use any plans, bill of material(s), documents,
specifications, software code (in object code form only), and other materials specific to the Customer Product that are developed
by Company in its performance of the Development Services and delivered to Customer hereunder (excluding, in all cases, the Firmware)
(collectively, the “Customer Product Plans”) for the sole purpose of making or having made the Customer Product
(other than the Product), and (ii) make and have made the Customer Product (other than the Product or the Firmware) in strict
accordance with any applicable specifications provided by Company. For the avoidance of doubt, (i) all Customer Product Plans
are and shall be deemed to be the Confidential Information of Company and may not be disclosed to any third party or used for
any purpose other than manufacturing the Customer Product, (ii) Customer may not modify any Customer Product Plans or the Customer
Product without Company’s prior written consent, and (iii) no right or license of any kind is granted hereunder for Customer
to make or have made the Product or any component thereof or to make, have made, use, sell, import, export, reproduce, modify,
create derivative works of, perform, display, or otherwise exploit the Firmware (which rights, if any, are granted solely under
the SLA).

 

c.    
Should Customer wish to develop a next-generation product, it will first invite Company to evaluate the requirements and make
a proposal and provide Company the opportunity to meet any competitive bids. If Company provides a proposal that is the same
or better for Customer, Customer will select Company for the development. During the term of this Agreement, should Company
develop a next-generation set of capabilities, it shall, provided that Customer has agreed to appropriate confidentiality and
non-use obligations and is not and has not been in breach of this Agreement, provide information on the capabilities to
Customer and, at Customer’s request, negotiate in good faith with Customer to offer the capabilities to Customer prior
to offering the capabilities to Company’s other customers. For any next-generation development, the Parties shall both
use commercially reasonable efforts to provide exclusivity to each other.

 

    Page 7 of 35

     

    

 

d.   
Proprietary Notice. Customer will not remove, alter, or conceal any proprietary rights notices, warnings, or disclaimers
of Company provided with the Products without Company’s prior written consent.

 

e.   
Patent Challenge. During the term of this Agreement, neither Party nor its Affiliates will (i) commence or participate
in any action or proceeding (including any patent opposition or re-examination proceeding), or otherwise assert in writing any
claim, challenging or denying the validity of any Intellectual Property Rights in or embodied by the Company IP (including the
Products) or the Customer Products, as applicable, or (ii) actively assist any other Person or entity in bringing or prosecuting
any such patent challenge.

 

f.    
Customer Intellectual Property. As between the Parties, Customer owns all rights, title, and interest in the Technology
shown in Appendix A that Customer contributes to the Customer Products, including all Intellectual Property Rights therein,
but in each instance excluding the Company IP. There are no implied rights or licenses granted to Company hereunder and Company
expressly reserves all of its Intellectual Property Rights in and to the Customer Products except as expressly granted hereunder.
Customer hereby grants to Company during the term of this Agreement a worldwide, non-exclusive, royalty-free license under all
Intellectual Property Rights of Customer to make, have made, import, export, and sell the Products to Customer and to otherwise
use and exploit such Intellectual Property Rights to the extent necessary for Company to perform its obligations hereunder or
any attachment hereto.

 

g.    Customer
Product Plans. Within two (2) weeks after Customer receives the Customer Product Plans from Company (the
 “Acceptance Period”), Customer will conduct acceptance testing (including in accordance with any criteria
and procedures set forth in Appendix A) to evaluate whether such Customer Product Plans conform in all material
respects with the specifications and requirements of this Agreement and will provide Company either (i) a written acceptance
of the Customer Product Plans or (ii) a written statement of rejection indicating the non-conformities to the specification
or requirements requiring correction. In the absence of such criteria and procedures being set forth in Appendix A,
acceptance by Customer will be based solely upon such Customer Product Plans’ material conformance to objective
criteria to be reasonably derived from the specifications and requirements of this Agreement. The Customer Product Plans and
the corresponding Development Services will be deemed irrevocably accepted by Customer if Company does not receive either
written acceptance or written rejection regarding such Customer Product Plans within the Acceptance Period. If Company
receives a written statement of rejection and confirms that the Customer Product Plans are non-conforming, Company will use
commercially reasonable efforts to remedy all identified, material, reproducible non-conformities and will promptly return
the reworked Customer Product Plans to Customer for re-testing and reevaluation in accordance with the procedures set forth
in this Section 6(g). The foregoing procedure will be repeated until (i) final written acceptance of the Customer
Product Plans by Customer, (ii) the parties mutually agree in writing to terminate this Agreement, or (iii) at
Company’s election, Company reimburses Customer the amounts it paid to Company for those portions of the Customer
Product Plans that are non-conforming. This Section 6(g) sets forth the sole and exclusive remedies of Customer, and
the exclusive obligations and liabilities of Company, with respect to all non-conforming Customer Product Plans and the
Development Services.

 

    Page 8 of 35

     

    

 

		7.	Term
                                         and Termination.

 

a.    
Term. Unless earlier terminated pursuant to this Section 7, this Agreement shall remain in full force for an initial
term of two (2) years from the Effective Date or one (1) year from date of first shipment of Customer Products to retailer / in
store, whichever is the lesser (the “Initial Term”). This Agreement shall automatically renew for one (1) year
terms (each, a Renewal Term”) unless either Party provides written notice of non-renewal to the other Party at least
sixty (60) days prior to the end of the Initial Term or the then-current Renewal Term, provided that Company agrees not to issue
a notice of non-renewal to Customer so long as Customer is not in material breach of the Agreement at the time of renewal. Further
Customer agrees that Customer’s exclusive rights under Section 2.1 hereof will automatically terminate following the Initial
Term.

 

b.    
Termination for Breach. Either Party may terminate this Agreement, effective immediately, by giving the other Party written
notice of termination, if the other Party breaches any of its material obligations under this Agreement and fails to cure such
breach to the satisfaction of the terminating Party within thirty (30) days after receiving written notice thereof from the terminating
Party. In addition, Company may terminate this Agreement, effective immediately, by giving written notice of termination to Customer
if Customer has failed to pay any undisputed amounts owed under this Agreement within thirty (30) days after Customer has received
written notice from Company regarding such past due amount.

 

c.    
Effects of Termination. In the event that this Agreement is terminated for any reason Company shall have no further obligation
to fulfill any new orders for the Products and each Party shall immediately pay to the other party all outstanding amounts due
under this Agreement. Neither Party shall be liable for damages of any kind as a result of properly exercising its respective
right to terminate this Agreement according to the terms and conditions of this Agreement, and termination will not affect any
other right or remedy of either Party. No compensation of any kind (including without limitation any claim for loss of profits,
loss of prospective profits, damages, or indemnity) shall be due from either Party to the other solely as a result of termination
of this Agreement.

 

d.    
Survival. Sections 1, 2(b), 4, 6(a), 6(b), 6(d), 7(d), 8, 9(c), and 10-12, and any outstanding payment obligation of either
Party will survive any termination of this Agreement.

 

		8.	Indemnification.

 

a.     Indemnification
by Customer. Customer agrees to defend Company, Affiliates and licensors (directly or indirectly) of Company, and their
respective directors, officers, employees and agents (collectively, the “Company Indemnitees”), and shall
indemnify and hold harmless the Company Indemnitees, from and against any liabilities, losses, costs, damages, fees or
expenses payable to a Third Party, and reasonable attorneys’ fees and other legal expenses with respect thereto arising
out of any claim, action, lawsuit, or other proceeding arising out of any theory of liability (collectively, “Losses
and Claims”) brought against any Company Indemnitee by a Third Party resulting from or relating to: (i) any
activities undertaken by Customer in its further Commercialization of the Products (including as embedded or incorporated
into any product of Customer) and excluding Losses and Claims to the
extent attributable to any failure or delay by Company in taking reasonable actions to mitigate such Losses and Claims, (ii)
infringement, misappropriation, or violation by Customer of any Intellectual Property Rights of a Third Party, other than to
the extent Company is obligated to indemnify Customer as set forth in Section 8(b) hereof, (iii) any breach by
Customer of any of its representations or warranties or obligations pursuant to this Agreement, or (iv) the gross negligence
or willful misconduct of Customer or any Affiliate of Customer.

 

    Page 9 of 35

     

    

 

b.   
Indemnification by Company. Company agrees to defend Customer, Affiliates of Customer, and their respective directors,
officers, employees and agents (collectively, the “Customer Indemnitees”), and shall indemnify and hold harmless
the Customer Indemnitees, from and against any Losses and Claims brought against any Customer Indemnitee by a Third Party to the
extent resulting from or relating to: (i) Defects with the Product, other than caused by Customer, and excluding Losses and Claims
to the extent attributable to any failure or delay by Customer in taking all necessary actions to mitigate such Losses and Claims,
(ii) infringement, misappropriation, or violation by a Customer Indemnity based solely upon the sale or import of the Product
as and in the form provided by Company, of any Intellectual Property Rights of a Third Party, (iii) any breach by Company of any
of its representations or warranties or obligations pursuant to this Agreement, or (iv) the gross negligence or willful misconduct
of Company or any Affiliate of Company, and in all cases excluding all Losses and Claims to the extent attributable to any failure
or delay by Customer in taking reasonable actions to mitigate such Losses and Claims . For clarity, Company shall have no obligations
under this Section 8(b) to the extent any Losses and Claims arise out of or relate to the modification of the Products
by anyone other than Company, the misuse of the Products (including any Commercialization of the Products outside of the Field
or the Territory), the combination of the Products with any hardware, products, or services not provided by Company or embedding
or incorporating the Products into any products of Customer, or Customer’s gross negligence or willful misconduct or breach
of this Agreement (all of the foregoing being subject to Customer’s obligations under Section 8(a)).

 

c.    
Procedure. If any Company Indemnitee or Customer Indemnitee (collectively, the “Indemnitee”) intends
to claim indemnification under this Section 8, the Indemnitee shall promptly notify the other Party (the “Indemnitor”)
of any Loss and Claim for which the Indemnitee intends to claim such indemnification, and the Indemnitor shall assume the defense
thereof with counsel selected by the Indemnitor and reasonably acceptable to the Indemnitee, provided, however, that an Indemnitee
shall have the right to retain its own counsel, with the fees and expenses to be paid by the Indemnitor if representation of such
Indemnitee by the counsel retained by the Indemnitor would be inappropriate due to actual or potential conflicting interests between
such Indemnitee and any other Party represented by such counsel in such proceedings. The Indemnitor shall have the right to settle
or compromise any claims for which it is providing indemnification under this Section 8, provided that the consent of the
Indemnitee (which shall not be unreasonably withheld, conditioned or delayed) shall be required in the event any such settlement
or compromise would adversely affect the interests of the Indemnitee. The indemnity obligation under this Section
8 shall not apply to amounts paid in settlement of any loss, claim, damage, liability or action if such settlement is effected
without the consent of the Indemnitor. The failure to deliver notice to the Indemnitor within a reasonable time after the commencement
of any such action, if prejudicial to the Indemnitor’s ability to defend such action, shall relieve such Indemnitor of any
liability to the Indemnitee under this Section 8, but the omission to so deliver notice to the Indemnitor will not relieve
Indemnitor of any liability that it may have to any Indemnitee otherwise than under this Section 8 other than to the extent
such omission impinges on the ability to mitigate or avoid such liability. The Indemnitee under this Section 8 and its
employees and legal representatives shall cooperate fully with the Indemnitor and its legal representatives in the investigation
of any action, claim or liability covered by this indemnification. For clarity, nothing contained in this Section 8 shall
be deemed to apply to the Firmware or Support, which are exclusively addressed in the SLA.

 

    Page 10 of 35

     

    

 

		9.	Representations
                                         and Warranties.

 

a.    
Mutual Representations and Warranties. Each Party hereby represents and warrants to the other Party as follows:

 

		i)	Corporate
                                         Existence. Such Party is an entity duly organized, validly existing and in good standing
                                         under the Laws of the jurisdiction in which it is incorporated.

 

		ii)	Authorization
                                         and Enforcement of Obligations. Such Party (a) has the corporate power and authority
                                         and the legal right to enter into this Agreement and to perform its obligations hereunder,
                                         and (b) has taken all necessary corporate action on its part to authorize the execution
                                         and delivery of this Agreement and the performance of its obligations hereunder. This
                                         Agreement has been duly executed and delivered on behalf of such Party, and constitutes
                                         a legal, valid, binding obligation, enforceable against such Party in accordance with
                                         its terms.

 

		iii)	No
                                         Consents. All necessary consents, approvals and authorizations of all governmental
                                         authorities and other Persons required to be obtained by such Party in connection with
                                         this Agreement have been and will be obtained.

 

		iv)	Compliance.
                                         Each Party will comply with all applicable Laws in exercising its rights and performing
                                         its obligations hereunder, including any applicable anti-corruption Laws.

 

b.     Company
Warranties. Company represents and warrants to Customer that: (i) the Products when delivered to Customer will be new,
free and clear of all liens, and, for a period of one year following delivery to Customer, will not be Defective (provided
that Customer’s sole and exclusive remedies, and Company’s sole and exclusive liability (other than as set forth
in Section 8(b)) arising out of or relating to any Defective Products are as set forth in Section 3(f) and the
production warranty provisions as stated in Appendix B); and (ii) Company has all rights necessary to provide the
Products hereunder, and that none of the Products do or will infringe upon the Intellectual Property Rights or other
proprietary rights of any third party (provided that Customer’s sole and exclusive remedies (if any), and
Company’s sole and exclusive liability arising out of or relating to any infringement by the Products of any
Intellectual Property Rights or other proprietary rights of any third party are as set forth in Section 8(b)); (iii)
Company will use commercially reasonable efforts to perform the Development Services hereunder in a timely and professional
manner. For the avoidance of doubt, (1) Company shall respond to the Customer within [3] days after Customer contacts in
relation to the Product and/or the Development Services, and (2)
Company’s exclusive obligations and liabilities with respect to any non-conforming Development Services are as set
forth in Section 6(g) hereof.

 

Company
shall have no obligations under this Agreement and a Product shall not be deemed to be Defective to the extent a Product was subject
to improper storage, handling, use, abuse, damage, destruction, or modification by anyone other than Company. 

 

    Page 11 of 35

     

    

 

c.    
Warranty Disclaimer. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, TO THE FULLEST EXTENT PERMITTED BY LAW, THE PRODUCTS,
DEVELOPMENT SERVICES, AND CUSTOMER PRODUCT PLANS ARE PROVIDED “AS IS” WITHOUT WARRANTIES OF ANY KIND, AND COMPANY
DISCLAIMS ALL WARRANTIES AND REPRESENTATIONS OF ANY KIND, WHETHER EXPRESS, IMPLIED, OR STATUTORY, INCLUDING WITHOUT LIMITATION
THE IMPLIED WARRANTIES OF MERCHANTABILITY, TITLE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS, FITNESS FOR A PARTICULAR PURPOSE, QUIET
ENJOYMENT, AND ACCURACY. THIS DISCLAIMER OF WARRANTIES IS AN ESSENTIAL CONDITION OF THIS AGREEMENT.

 

		10.	Limitation
                                         of Liability. EXCEPT ARISING OUT OF A PARTY’S INDEMNIFICATION OBLIGATIONS UNDER
                                         THIS AGREEMENT, OR LIABILITY OF A PARTY FOR ITS BREACH OF SECTION 2 (PRODUCT SUPPLY)
                                         HEREOF OR ITS UNAUTHORZED USE OF THE OTHER PARTY’S INTELLECTUAL PROPERTY RIGHTS,
                                         TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE
                                         OTHER PARTY FOR LOST PROFITS OR SPECIAL, INCIDENTAL, INDIRECT OR CONSEQUENTIAL DAMAGES
                                         ARISING OUT OF OR RELATED TO THE PRODUCTS OR THIS AGREEMENT (WHETHER FROM BREACH OF CONTRACT,
                                         BREACH OF WARRANTY, NEGLIGENCE, STRICT LIABILITY, OR ANY OTHER FORM OF ACTION), EVEN
                                         IF THE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. TO THE MAXIMUM EXTENT
                                         PERMITTED BY LAW, AND EXCEPT ARISING OUT OF A PARTY’S INDEMNIFICATION OBLIGATIONS
                                         UNDER THIS AGREEMENT OR ITS UNAUTHORZED USE OF THE OTHER PARTY’S INTELLECTUAL PROPERTY
                                         RIGHTS, IN NO EVENT WILL THE TOTAL LIABILITY OF EITHER PARTY UNDER THIS AGREEMENT (OTHER
                                         THAN CUSTOMER’S PAYMENT OBLIGATIONS HEREUNDER) EXCEED THE TOTAL AMOUNT OF FEES
                                         ACTUALLY PAID BY CUSTOMER TO COMPANY UNDER THIS AGREEMENT. THE PARTIES ACKNOWLEDGE THAT
                                         THE PRICES SPECIFIED IN THIS AGREEMENT REFLECT THE ALLOCATION OF RISK SET FORTH IN THIS
                                         AGREEMENT AND THAT COMPANY WOULD NOT HAVE ENTERED INTO THIS AGREEMENT WITHOUT THE FOREGOING
                                         LIMITATIONS OF ITS LIABILITY.

 

		11.	Confidentiality.

 

a.    
Confidentiality Obligations. Each Party agrees that, for so long as this Agreement is in effect and for a period of three
(3) years thereafter, the Recipient shall (i) maintain in confidence such Confidential Information using not less than the efforts
such Recipient uses to maintain in confidence its own proprietary industrial or technical information of similar kind and value,
but in no event using less than reasonable care, (ii) not disclose such Confidential Information to any Third Party without the
prior written consent of the Discloser, except for disclosures expressly permitted below, and (iii) not use such Confidential
Information for any purpose except those expressly permitted by this Agreement.

 

    Page 12 of 35

     

    

 

b.    
Authorized Disclosure. To the extent (and only to the extent) that it is reasonably necessary or appropriate to fulfill
its obligations or exercise its rights under this Agreement, the Recipient may disclose Confidential Information belonging to
the Discloser in the following instances: (i) regulatory filings; (ii) prosecuting or defending litigation; (iii) subject to Sections
11(c) and 11(d) in complying with applicable Laws and regulations (including, without limitation, the rules and regulations
of the Securities and Exchange Commission or any national securities exchange) and with judicial process, if in the reasonable
opinion of the Recipient’s counsel, such disclosure is necessary for such compliance; and (iv) disclosure, in connection
with the performance of this Agreement and solely on a need-to-know basis, to potential or actual collaborators; potential or
actual investment bankers, investors, lenders, or acquirers; or employees, independent contractors (including without limitation
consultants and clinical investigators) or agents, each of whom prior to disclosure must be bound by written obligations of confidentiality
and non- use no less restrictive than the obligations set forth in this Section 11; provided, however, that the Recipient
shall remain responsible for any failure by any Person who receives Confidential Information pursuant to this Section 11
to treat such Confidential Information as required under this Section 11.

 

If
and whenever any Confidential Information is disclosed in accordance with this Section 11(b), such disclosure shall not
cause any such information to cease to be Confidential Information except to the extent that such permitted disclosure results
in a public disclosure of such information (otherwise than by breach of this Agreement). Where reasonably possible and subject
to Sections 11(c) and 11(d), the Recipient shall notify the Discloser of the Recipient’s intent to make such
disclosure pursuant to Section 11(b) sufficiently prior to making such disclosure so as to allow the Discloser adequate
time to take whatever action it may deem appropriate to protect the confidentiality of the information.

 

c.    
Required Disclosure. A Recipient may disclose Confidential Information pursuant to interrogatories, requests for information
or documents, subpoena, civil investigative demand issued by a court or governmental agency or as otherwise required by Law; provided
however, that the Recipient shall notify the Discloser promptly upon receipt thereof, giving (where practicable) the Discloser
sufficient advance notice to permit it to oppose, limit or seek confidential treatment for such disclosure, and to file for patent
protection if relevant; and provided, further, that the Recipient shall furnish only that portion of the Confidential Information
which it is advised by counsel is legally required whether or not a protective order or other similar order is obtained by the
Discloser.

 

d.    
Securities Filings. In the event either Party proposes to file with the Securities and Exchange Commission or the securities
regulators of any state or other jurisdiction a registration statement or any other disclosure document which describes or refers
to this Agreement under the Securities Act of 1933, as amended, the Securities Exchange Act, of 1934, as amended, or any other
applicable securities Law, the Party shall notify the other Party of such intention and shall provide such other Party with a
copy of relevant portions of the proposed filing not less than ten (10) Business Days prior to such filing (and any revisions
to such portions of the proposed filing a reasonable time prior to the filing thereof), including any exhibits thereto relating
to the Agreement, and shall use reasonable efforts to obtain confidential treatment of any information concerning the Agreement
that such other Party requests be kept confidential, and shall only disclose Confidential Information which it is advised by counsel
is legally required to be disclosed. No such notice shall be required under this Section 11(d) if the substance of the
description of or reference to this Agreement contained in the proposed filing has been included in any previous filing made by
the either Party hereunder or otherwise approved by the other Party.

 

    Page 13 of 35

     

    

 

e.    
Terms of Agreement. The existence and the terms and conditions of the Agreement that the Parties have not specifically
agreed to disclose pursuant to Sections 11(d) or 11(g) shall be considered Confidential Information of both Parties.
Either Party may disclose such terms to a bona fide potential licensee, investor, investment banker, acquiror, merger partner
or other potential financial partner, and their attorneys and agents, provided that each such Person to whom such information
is to be disclosed is informed of the confidential nature of such information and has entered into a written agreement with the
Party requiring such Person to keep such information confidential.

 

f.    
Injunctive Relief. The Parties hereto understand and agree that remedies at Law may be inadequate to protect against any
breach of any of the provisions of this Section 11 by either Party or their employees, agents, officers or directors or
any other person acting in concert with it or on its behalf. Accordingly, each Party shall be entitled to seek injunctive relief
by a court of competent jurisdiction against any action that constitutes any such breach of this Section 11.

 

g.    
Publicity. Each Party agrees not to issue any press release or other public statement disclosing information relating to
the content of this Agreement without the prior written consent of the other Party, which consent shall not be unreasonably withheld,
conditioned or delayed, provided however, that any disclosure which is required by Law or the rules of a securities exchange,
as reasonably advised by the disclosing Party’s counsel, may be made subject to the following. The Parties agree that any
such announcement will not contain the Confidential Information or any other confidential business or technical information and,
if disclosure of any such information is required by Law, the Parties will use reasonable efforts to minimize such disclosure
and obtain confidential treatment for any such information which is disclosed to a governmental agency. Each Party agrees to provide
to the other Party a copy of any public announcement regarding this Agreement or the subject matter thereof as soon as reasonably
practicable under the circumstances prior to its scheduled release. Each Party shall provide the other with an advance copy of
any such announcement at least ten (10) business days prior to its scheduled release. Each Party shall have the right to expeditiously
review and recommend changes to any such announcement and, except as otherwise required by Law, the Party whose announcement has
been reviewed shall remove any information the reviewing Party reasonably deems to be inappropriate for disclosure.

 

    Page 14 of 35

     

    

 

		12.	General
                                         Terms and Conditions.

 

a.    
Notices. Any consent, notice or report required or permitted to be given or made under this Agreement by one of the Parties
to the other shall be in writing and addressed to such other Party at its address indicated below, or to such other address as
the addressee shall have last furnished in writing to the addressor. Such notices shall be deemed to have been sufficiently given
if and at the moment it is delivered in person, transmitted by facsimile (upon receipt by the sender of a positive transmission
report), by express courier service (upon signature of the receipt), or by registered letter with return receipt or its equivalent
(upon execution of the return receipt by the recipients) to the following persons and addresses:

 

If
to Customer:                                                              MEDIROM,
Inc.

Tradepia
Odaiba 16F, 2-3-1

Daiba,
Minato-ku

Tokyo
135-0091

Japan

Attention:
CEO

 

If
to Company:                                                              Matrix Industries, Inc.,

1440
O’Brien Drive, Suite A-1

Menlo
Park, California, USA 94025

Attention:
CEO

 

b.    
Governing Law: Venue. This Agreement and all related agreements shall be governed by and construed in accordance with the
laws of the State of New York, USA without regard to the conflicts of law principles thereof. The parties further agree that the
state and federal courts located in any competent jurisdiction in New York shall have exclusive jurisdiction and venue for all
matters regarding the existence, interpretation, execution, validity, enforceability, performance and termination of this Agreement.
The United Nations Convention on Contracts for the International Sale of Goods shall not apply to this Agreement.

 

c.    
Dispute Resolution. In the event of any dispute between the parties relating to, resulting from or arising out of this
Agreement, a Party may notify the other Party in writing of such dispute providing details of the subject matter of the dispute
and any relevant documentation. Up to one (1) duly authorized executive officer of each Party shall promptly attempt to settle
such dispute within a period of three (3) months after notice. If the executive officers of the Parties are unable to resolve
the issue within three (3) months after notice, the dispute may be submitted by either Party to the court stipulated in Section
12(b)(provided that Company may at any time bring an action anywhere in the world to protect or enforce its Intellectual Property
Rights and Confidential Information).

 

d.    
Independent Contractors. Each Party acknowledges that the parties shall be independent contractors and that the relationship
between the parties shall not constitute a partnership, joint venture or agency. Neither Party shall have the authority to make
any statements, representations or commitments of any kind, or to take any action, which shall be binding on the other Party,
without the prior consent of the other Party to do so.

 

e.    
Waiver. The waiver by a Party of any right hereunder, or of any failure to perform or breach by the other Party, shall
not be deemed a waiver of any other right hereunder or of any other breach or failure by the other Party, whether of a similar
nature or otherwise. Any waiver must be in writing and signed by an authorized representative of the waiving Party.

 

    Page 15 of 35

     

    

 

f.     
 Further Assurance. Each Party will duly execute and deliver, or cause to be duly executed and delivered, such further instruments
and do and cause to be done such further acts and things, including the filing of such assignments, agreements, documents and
instruments, as may be necessary or as the other Party may reasonably request in connection with this Agreement or to carry out
more effectively the provisions and purposes, or to better assure and confirm to such other Party its rights and remedies under
this Agreement.

 

g.   
Construction. The singular will include the plural and the plural will include the singular. The captions of this Agreement
are for convenience of reference only and in no way define, describe, extend or limit the scope or intent of this Agreement or
the intent of any provision contained in this Agreement. The words “include” and “including” will be deemed
to be followed by the phrase “but not limited to”, “without limitation”, “inter alia” or words
of similar import. The rights and remedies provided herein shall be cumulative and not exclusive of any other rights or remedies
provided by law or in equity, unless expressly stated otherwise.

 

h.   
Severability. In the event that any provision of this Agreement is declared invalid, unenforceable or void to any extent,
such provision shall be modified, if possible, by reducing its duration and scope to allow enforcement of the maximum permissible
duration and scope. In any event, such declaration shall not affect the remaining provisions of this Agreement. Any declaration
of such invalidity, unenforceability or void provision in any jurisdiction shall not invalidate or render unenforceable or void
such provision in any other jurisdiction.

 

i.      English Language. This Agreement was negotiated and executed in English, and the original language version shall be controlling.
All communications and notices to be made or given pursuant to this Agreement shall be in English.

 

j.     
Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but
all of which together shall constitute one and the same instrument. A signature transmitted via facsimile or electronic means
shall be deemed to be and shall be as effective as an original signature upon confirmation of transmission.

 

k.    
Force Majeure. Neither Party will be responsible for any failure or delay in the performance of all or any part of this
Agreement caused by force majeure, including, without limitation, acts of God and nature, intervention of government, war or threat
of war, conditions similar to war, acts of terrorism, sanctions, blockades, embargoes, strikes, lockouts, or other similar causes
or circumstances which cannot reasonably be prevented by the Party the performance of which is delayed (“Force Majeure”).
The affected Party shall promptly give written notice to the other Party whenever such Force Majeure becomes reasonably foreseeable,
and shall use all reasonable commercial efforts to overcome the effects of the Force Majeure as promptly as possible, and shall
promptly give written notice to the other Party of the cessation of such Force Majeure.

 

l.     
Attorneys’ Fees. In any action or other legal proceeding between the Parties for relief based in whole or in part
on this Agreement (or the breach thereof), the prevailing Party shall be entitled to recover (in addition to any other relief
awarded or granted) its reasonable costs and expenses (including attorneys’ fees) incurred in the proceeding.

 

    Page 16 of 35

     

    

 

m.   
 Waiver. Any waiver by either Party of the breach of any of the terms or conditions of this Agreement will not be considered
as a continuing waiver or a waiver of any prior or subsequent breach of the same or any other terms or conditions.

 

n.   
Entire Agreement. This Agreement (including its Appendices (including the SLA) which are hereby incorporated herein) contains
the entire understanding of the parties with respect to the subject matter hereof. All express or implied representations, agreements
and understandings, either oral or written, regarding the subject matter of this Agreement heretofore made are expressly superseded
by this Agreement. Each Party confirms that it is not relying on any representations or warranties of the other Party or its representatives
except as specifically set forth herein. No amendment or modification of this Agreement will be binding upon the parties unless
in writing and duly executed by authorized representatives of both parties. In the event of a conflict between the terms and conditions
of this Agreement or any other attachment hereto, on the one hand, and the terms and conditions of the SLA, on the other hand,
the terms and conditions of the SLA shall control with respect to the subject matter thereof (including with respect to the Firmware
and Support).

 

o.   
Assignment. Neither Party may assign this Agreement without the other Party’s prior written consent, not to unreasonably
withheld or delayed, provided, however, in the event of a transfer or sale by a Party to a third party of all or substantially
all of the business or assets of the assigning Party to which this Agreement relates then the assigning Party shall be required
to assign this Agreement to such third party, the other Party’s consent shall not be required for such assignment, and this
Agreement (including all supply obligations hereunder) will continue on in full force and effect. In the event of any assignment
by a Party in accordance with this Section 12(o), the assigning Party’s rights and obligations herein shall be binding
upon its successor and assigns. Any attempted assignment or delegation in violation of this Section 12(o) shall be void
and of no effect. In the event of any assignment by a Party in accordance with this Section 12(o), the assigning Party shall notify
the other Party of such fact in advance.

 

[remainder
of page intentionally left blank]

 

    Page 17 of 35

     

    

 

Signature
Page to Development and Production Agreement

 

IN WITNESS
WHEREOF, the Parties have executed this Agreement as of the Effective Date.

 

	Company	 	Customer
	 	 	 
	MATRIX Industries, Inc.	 	MEDIROM, Inc.
	 	 	 
	By:	/s/ Akram Boukai	 	By:	/s/ Kouji Eguchi
	 	 	 
	Name: Akram Boukai	 	Name: Kouji Eguchi
	 	 	 
	Title: CEO	 	Title: CEO

 

    Page 18 of 35

     

    

 

Appendix
A

 

General
Terms and Conditions

 

Territory

Asia

 

Product(s):

 

		·	Product:
                                         Matrix thermoelectric power module for “MOTHER” smart tracker wearable device

		·	Customer
                                         Product: “MOTHER” activity band for consumer lifestyle health monitoring
                                         including hardware, related firmware, mobile phone application, and related cloud infrastructure

 

Field

 

Activity
band for consumer lifestyle health monitoring Includes:

 

		·	Heart
                                         rate and motion sensing

		·	“MOTHER”
                                         brand, worldwide

 

Excludes:

 

		·	Analog
                                         and digital watches

		·	Industrial,
                                         medical, and clinical applications

		·	Display

		·	GPS

 

Exclusivity

 

		·	Exclusivity
                                         period shall be 1 year from the date that Customer receives the DVT sample unit (whichever
                                         is earlier, but no later than February 2021)

		·	Should
                                         Customer fail to meet an agreed-to forecast, Customer shall have 3 months’ time
                                         to remedy by placing orders, or this exclusivity provision is null and void

 

Contributed
Technologies

 

		·	Customer
                                         shall be solely responsible for the development of a mobile phone application and associated
                                         cloud infrastructure and shall retain Intellectual Property Rights for this contributed
                                         Technology

		·	Company
                                         shall retain Intellectual Property Rights for all other technologies that are incorporated
                                         in Customer Product

 

    Page 19 of 35

     

    

 

Appendix
A (cont’d)

 

Financial
arrangements

 

CUSTOMER

 

		·	Shall
                                         assume all costs of sales of the Customer Product including direct purchase from a mutually
                                         agreed contract manufacturer, inventory, sales channel and distribution expenses

		·	Payment
                                         of Non-Recurring Engineering charges to Company

		·	Acceptance
                                         of the risk of change in the cost of the non-Company bill of materials items and related
                                         manufacturing services

		·	Customer
                                         shall purchase a minimum of 100,000 units during the first 6 months since the first shipment
                                         of the Customer Products (“Initial Product Purchase Requirement”)

		·	[***]

 

Company

 

		·	Shall
                                         sell its thermoelectric power module and associated components directly to the chosen
                                         contract manufacturer

		·	These
                                         General Terms and Conditions of Sale may be extended to a contract manufacturer for the
                                         purpose of manufacturing the Customer’s product

		o	Customer
                                         shall request such an extension in writing for acceptance by Company

		o	A
                                         credit application to Company from the contract manufacturer will be also required

		o	Should
                                         the contract manufacturer fail to pay invoices on time or otherwise violate the terms
                                         of the credit application and agreement, this extension may be revoked by Company after
                                         notifying Customer and allowing 15 days for corrective action

		·	The
                                         purchase price shall include an activation fee that is included in the purchase price

		·	A
                                         software maintenance fee shall be applied to the mutually agreed number of active units
                                         that are in use by Customer’s customers and shall be invoiced by Company to Customer
                                         on a quarterly basis

		·	Company
                                         shall have the right to purchase the Customer Product from the contract manufacturer
                                         on the same terms and conditions and at the same prices as Customer. Customer hereby
                                         grants to Company a limited, non-exclusive, non-transferrable, non-sublicensable (solely
                                         with respect to any units of Customer Products purchased by Company for resale as contemplated
                                         herein), right and license, in the United States of America, Canada, Mexico, the United
                                         Kingdom, and the European Union to use Customer’s trademarks, service marks, and
                                         logos incorporated on any such Customer Products or their packaging that are owned by
                                         Customer during the term of the Agreement or any extension thereof, but excluding any
                                         Company IP ("Customer Marks”) in connection with the marketing, promotion,
                                         sale, licensing, distribution, resale and support of such Customer Products. It is understood
                                         and agreed that Customer shall retain all right, title and interest in and to Customer
                                         Marks. Company's use of Customer Marks will not tarnish, blur, or dilute the quality
                                         associated with the Customer Trademarks or the associated goodwill. Any goodwill accruing
                                         from Company's use of such Customer Marks will automatically vest in Customer.

		·	[***]

 

    Page 20 of 35

     

    

 

 

Appendix
B

 

Production
Terms and Conditions

 

General
Terms and Conditions of Sale

 

	Item	Description
	Pricing	In
    US Dollars
	Payment
    terms	Net
    30 days from the date of invoice, with prior credit approval
	Production
    Lead time	12-weeks
    ARO
	Production
    Warranty	One
    year from shipment date.

    

    A Return Material Authorization (RMA) is required prior to Company’s acceptance of a customer return request. For authorized
    returns, Company may replace, repair, or refund the purchase price of the Defective Products at its sole option.
	Governing
    law	New
    York
	Shipment
    terms	Ex-Works
    (EXW), Incoterms® 2020
	Sales
    taxes	To
    be paid by the Customer unless the Customer supplies a valid resale certificate at the time of order placement
	Minimum
    Annual Purchase Quantity (units)	100,000
	Minimum
    production line item purchase quantity (units)	10,000

 

Reschedule and Cancellation
Terms

 

	Days
    Before Shipment	Reschedule/Push-Out	Cancellation
    Liability
	0
    to 30	No
    reschedule allowed	100%
    of the purchase price
	31
    to 60	Up
    to 30 days, one time only	75%
    of the purchase price
	61
    to 90	Up
    to 60 days, one time only	50%
    of the purchase price
	90
    days or more	Unlimited
    reschedule push-out	Cancellation
    allowed with no liability

 

End-of-life in production

 

Company may notify Customer of
end-of-life with 6 months of advance notification and an additional 6 months to request shipment of lifetime buys

 

Company shall use commercially
reasonable efforts to provide replacement components that are equivalent to or better than the discontinued components

 

    Page 21 of 35

     

    

 

Appendix
B (cont’d)

 

Non-Recurring
Engineering Charges

 

[***]

 

Unit Pricing in Production

 

[***]

 

    Page 22 of 35

     

    

 

Appendix
C

 

Specification

 

[to be added]

 

    Page 23 of 35

     

    

 

Appendix
D

 

Development
Services

 

[***]

 

    Page 24 of 35

     

    

 

Appendix
E

 

Software
License Agreement

 

This Software
License Agreement (this “Agreement”), which is effective as of August 4, 2020 (the “Effective Date”)
is made and entered into by and between Matrix Industries, Inc., a Delaware USA corporation with a place of business at 1440 O’Brien
Drive, Suite A-1, Menlo Park, California, USA 94025 (“Company”) and MEDIROM Healthcare Technologies Inc., a
Japan corporation having a place of business at Tradepia Odaiba 16F, 2-3-1 Daiba, Minato-ku, Tokyo 135-0091, Japan (“Customer”).
Company and Customer are sometimes referred to herein individually as a “Party” and collectively as the “Parties”.

 

RECITALS

 

	A.	WHEREAS,
in connection with this Agreement, the Parties are entering into that certain Development and
Production Agreement on even date herewith (the “DPA”), pursuant to which the Parties are collaborating
in the development and deployment of a completed wearable device and service offering described in Appendix A to the DPA as the
 “Customer Product”, and Company will be performing certain Development Services and supplying certain Products for
incorporation into the Customer Product solely in the Territory in the Field (as those terms are defined and set forth in the
DPA);
	 	 
	B.	WHEREAS,
Company and its suppliers have developed certain software that will be customized by Company for the Customer Product and installed
by Company in the Products supplied by Company to Customer under the DPA [***] (the foregoing, together with any associated documentation
and any updates thereto made available to Customer hereunder, collectively, the “Firmware”),
which Firmware is to be provided and licensed by Company to Customer in the Territory in the Field as
part of the Products supplied by Company under the DPA, solely for incorporation by Customer into Customer Products for
use by Customer’s customers and end users of the Customer Products (collectively, “End Users”) solely
as part of Customer Products (collectively, the “Purpose”); and
	 	 
	C.	WHEREAS,
Subject to the terms and conditions of this Agreement, Company is willing to license the Firmware to Customer and to provide the
software maintenance and second-level support for the Firmware further described below, all as further described herein and subject
to the terms and conditions set forth below.

 

NOW, THEREFORE,
in consideration of the foregoing premises and the mutual covenants herein contained, and intending to be legally bound hereby,
the Parties agree as follows:

 

AGREEMENT

 

1.         
Definitions. As used herein,

 

“Confidential
Information” means (i) the Firmware and (ii) all other information or materials of any kind whatsoever, including
all tangible and intangible embodiments thereof of any kind whatsoever, which is disclosed or made available by Company to
Customer hereunder. With respect to the foregoing item (ii), Confidential Information shall not include information which (a)
was publicly known prior to disclosure of such information by Company to Customer and/or the Manufacturer, (b) became
publicly known, without fault on the part of Customer and/or the Manufacturer subsequent to disclosure of such information by
Company to Customer and/or the Manufacturer, (c) was received by Customer and/or the Manufacturer at any time from a source,
other than Company, rightfully having possession of and the right to disclose such information without obligation of
confidentiality, or (d) was independently developed by employees or agents of Customer who have not had access to or made use
of any information disclosed by Company to Customer. For clarity, the Firmware shall not be subject to the foregoing
exclusions in items (a)-(d) and shall at all times remain, and shall be deemed and treated by Customer, its employees,
contractors, suppliers, agents and End Users as the Confidential Information of Company.

 

    Page 25 of 35

     

    

 

2.      
Limited License.

 

2.1              
Firmware. Company hereby grants to Customer, subject to the terms and on the conditions of this Agreement, including Sections
2.3 and 3 and Customer’s payment to Company of the applicable Activation Fee (defined below) for the applicable
Firmware installed on each unit of Product supplied by Company to Customer under the DPA, a limited, non-transferable, non-sublicensable
(except as expressly provided herein) and non-exclusive license solely in the Territory in the Field, to: (i) use the Firmware,
in object code form only, that is installed, or provided by Company to Customer hereunder for installation on, Products supplied
by Company to Customer under the DPA solely for incorporation by Customer into Customer Products for use by End Users as part
of Customer Products; (ii) make a reasonable number of reproductions of the Firmware (including any updates thereto made available
to Customer hereunder) made available by Company to Customer hereunder solely for installation on Products supplied by Company
to Customer under the DPA, and to install such Firmware on such Products, in each case that are incorporated into Customer Products
for use by End Users as part of Customer Products; and (iii) to use the API and documentation included among the Firmware provided
by Company to Customer hereunder for the sole purpose of developing and supporting a mobile application for End Users that will
interface with the Firmware on the Customer Products (the “Customer App”), in each of the foregoing (i)-(iii),
in furtherance of the Purpose and for no other purposes (collectively, the “License”). The License is also
conditioned upon Customer’s full and continuing compliance with the terms and conditions set forth in the DPA and any other
attachment thereto.

 

2.2              
Number of Licenses; Sublicenses. Customer acknowledges and agrees that the Firmware is licensed on a per unit of Product
basis, that the License with respect to the Firmware installed on each unit of Product attaches to such Product, and that no right
or license of any kind is granted to Customer to install, execute, or otherwise use more instances of the Firmware than the corresponding
number of units of Products supplied by Company to Customer under the DPA. During the term of this Agreement, Customer shall have
the right to grant pass-through sublicenses of the rights granted in item (i) of the License to End Users in the Territory in
the Field with respect to their particular unit of Customer Product purchased from Customer for the sole purpose of making personal,
non-commercial use of such Customer Product; provided, Customer may only grant such sublicenses pursuant to written agreements
with each End User containing terms and conditions consistent with and no less protective of Company than those set forth in this
Agreement, including the restrictions and obligations set forth in Sections 3, 4, 5, 7, 8.2
and 8.3. Provided that Customer shall not have any liability of any kind whatsoever for any breach of Sections 3,4,5,7,
8.2 and 8.3 by any End User.

 

2.3              
Open Source Software. [***]If a software component included with or in the Firmware is licensed under an open source software
license that is incompatible with the terms and conditions of this Agreement, the terms and conditions of such open source software
license will take priority over this Agreement solely with respect to such incompatibility and solely with respect to Customer’s
and End Users’ use of such software component. Company shall have no responsibility or liability for Customer’s and
its end Customer’s use of any such third party open source software, including their respective compliance with and the
application of any corresponding open source license terms to the Customer App or any other software of Customer or its other
suppliers, licensors or End Users. For clarity, nothing in this Section 2.3 will (i) broaden Company’s representations
or warranties or indemnification obligations to Customer; (ii) waive, limit, or disclaim any limitations of liability of Company
set forth in this Agreement; or (iii) amend the scope of any license granted to Customer with respect to any proprietary portions
of the Firmware.

 

    Page 26 of 35

     

    

 

2.4              
 Support and Maintenance.

 

(i)               
Customer will be solely responsible for performing training, support (including providing routine reports, call-in customer services,
and on-site service calls), maintenance, and other services requested or required by End Users. Customer may not refer any End
Users to Company for such support and services. Provided that Company shall use its best efforts to respond to inquiries from
Customer concerning support and maintenance.

 

(ii)               
So long as Customer has not breached this Agreement and provided Customer remains in full and continuing compliance with the terms
and conditions set forth in the DPA and any other attachment thereto, and subject to Customer’s continued payment of the
Support Fees (defined below), Company agrees to use commercially reasonable efforts to respond to Customer requests for second-level
support and maintenance with respect to the Firmware (collectively, “Support”); provided, that Support
shall not include, and Company shall have no obligation under this Agreement (or the DPA or any other attachment thereto) to:
(a) provide any maintenance, support or other services directly to Customer’s End Users nor to respond directly to
any requests from Customer’s End Users for maintenance or support; (b) provide any maintenance or support with respect to
the Customer App or any issues, complaints or questions related thereto; (c) provide any maintenance or support outside of Company’s
regular business hours nor any on site services; or (d) provide any upgrades, enhancements, customizations, integrations, installations,
new versions or any new or additional functionality. Company may, from time to time, provide certain updates for Firmware (such
as bug fixes, etc.), which Customer shall promptly install, or require to be installed, on the Customer Products. Company will
be responsible for providing Support only to Customer. Notwithstanding the foregoing, Company shall provide maintenance, support
or other services directly to End Users to whom Company has sold the Customer Products (“Company’s End Users”)
and respond directly to any requests from Company’s End Users for maintenance or support.

 

3.       
Restrictions. Customer acknowledges that the Firmware contains valuable trade secrets of Company and its licensors and
suppliers and constitutes the Confidential Information of Company. Accordingly, and except as may be permitted under Section
2.4, Customer agrees that it may not: (i) modify, adapt, alter, translate, or create derivative works of the Firmware; (ii)
build a product or service using similar ideas, features, functions, or graphics of the Firmware; (iii) except as expressly provided
in Section 2, sublicense, resell, rent, lease, transfer or assign Firmware or its use, or offer the Firmware on a time
share basis to any third party; (iv) reverse engineer, decompile, decode, or disassemble the Firmware; or (v) otherwise attempt
to derive the source code or algorithms for or included in the Firmware or attempt to gain access to any underlying code or algorithms
used in or to implement or deploy the Firmware. For clarity, Customer receives no right or license hereunder (nor pursuant to
the DPA or any other attachment thereto) to any source code to the Firmware nor any of the algorithms contained therein.

 

4.       
Ownership.

 

4.1              
Firmware. Subject to the licenses expressly granted to Customer hereunder, all right, title and interest in and to the
Firmware and any Technology embodied or incorporated therein and all Intellectual Property Rights (as those terms are defined
in the DPA) therein and thereto are and shall be owned solely and exclusively by Company.

 

4.2              
Feedback. To the extent Customer, its employees, or any End Users of the Firmware provide Company with any suggestions,
ideas, enhancement requests, recommendations or feedback regarding the Firmware, or Company otherwise conceives of or creates
any ideas, enhancements, improvements, or modifications to the Firmware (collectively, “Feedback and Improvements”),
Company will be free to use, disclose, commercialize, license, and exploit such Feedback and Improvements without any restriction.
Feedback and Improvements may also be used to improve the Firmware for other customers of Company.

 

    Page 27 of 35

     

    

 

5.       
Confidentiality.

 

5.1              
 Confidentiality Obligations. Customer agrees that, for so long as this Agreement is in effect and for a period of three
(3) years thereafter (other than with respect to the Firmware, for which the obligations of this Section 5 shall apply
in perpetuity), Customer shall (i) maintain in confidence such Confidential Information using not less than the efforts such Recipient
uses to maintain in confidence its own proprietary industrial or technical information of similar kind and value, but in no event
using less than reasonable care, (ii) not disclose such Confidential Information to any Third Party (as defined in the DPA) without
the prior written consent of Company, except for disclosures to the Manufacturer and disclosures expressly permitted below in
furtherance of the Purpose, and (iii) not use such Confidential Information for any purpose except those expressly permitted by
this Agreement in furtherance of the Purpose.

 

5.2              
Authorized Disclosure. To the extent (and only to the extent) that it is reasonably necessary or appropriate to fulfill
its obligations or exercise its rights under this Agreement in furtherance of the Purpose, Customer may disclose Confidential
Information belonging to Company in the following instances: (i) regulatory filings; (ii) prosecuting or defending litigation;
(iii) subject to Section 5.3 in complying with applicable Laws (as defined in the DPA) and regulations (including, without
limitation, the rules and regulations of the Securities and Exchange Commission or any national securities exchange) and with
judicial process, if in the reasonable opinion of Customer’s counsel, such disclosure is necessary for such compliance;
and (iv) disclosure, in connection with the performance of this Agreement and solely on a need-to-know basis, to the Manufacturer,
potential or actual collaborators; potential or actual investment bankers, investors, lenders, or acquirers; or employees, independent
contractors (including without limitation consultants and clinical investigators) or agents, each of whom prior to disclosure
must be bound by written obligations of confidentiality and non-use no less restrictive than the obligations set forth in this
Section 5; provided, however, that Customer shall remain responsible for any failure by any Person (as defined in the DPA)
who receives Confidential Information pursuant to this Section 5 to treat such Confidential Information as required under
this Section 5.

 

If
and whenever any Confidential Information is disclosed in accordance with this Section 5.2, such disclosure shall not cause
any such information to cease to be Confidential Information except to the extent that such permitted disclosure results in a
public disclosure of such information (otherwise than by breach of this Agreement). Where reasonably possible and subject to Section
5.3, Customer shall notify Company of Customer’s intent to make such disclosure pursuant to this Section 5.2
sufficiently prior to making such disclosure so as to allow Company adequate time to take whatever action it may deem appropriate
to protect the confidentiality of the information.

 

5.3              
Required Disclosure. Customer may disclose Confidential Information pursuant to interrogatories, requests for information
or documents, subpoena, civil investigative demand issued by a court or governmental agency or as otherwise required by Law; provided
however, that Customer shall notify Company promptly upon receipt thereof, giving (where practicable) Company sufficient advance
notice to permit it to oppose, limit or seek confidential treatment for such disclosure, and to file for patent protection if
relevant; and provided, further, that Customer shall furnish only that portion of the Confidential Information which it is advised
by counsel is legally required whether or not a protective order or other similar order is obtained by Company.

 

5.4              
Terms of Agreement. The existence and the terms and conditions of the Agreement shall be considered Confidential Information
of each Party. Each Party may disclose such terms to the Manufacturer, a bona fide potential licensee, investor, investment banker,
acquiror, merger partner or other potential financial partner, and their attorneys and agents, or otherwise as required by applicable
laws and regulations; provided that, where practicable, each such Person to whom such information is to be disclosed is informed
of the confidential nature of such information.

 

5.5              
Injunctive Relief. The Parties hereto understand and agree that remedies at Law may be inadequate to protect against any
breach of any of the provisions of this Section 5 by Customer or its employees, agents, officers, directors, End Users
or any other person acting in concert with it or on its behalf. Accordingly, Company shall be entitled to seek injunctive relief
by a court of competent jurisdiction against any action that constitutes any such breach of this Section 5.

 

    Page 28 of 35

     

    

 

5.6              
 Ownership and Return of Confidential Information. All Confidential Information of Company shall remain the sole property
of Company. Upon the termination of this Agreement, or at any time upon written request of Company, Customer shall return Company’s
Confidential Information and not keep any copies thereof.

 

6.      
Payment Terms.

 

6.1              
Firmware Activation Fees. Customer will pay Company the software activation fees set forth in Appendices A & B attached
to the DPA, on a per unit basis, for the Firmware installed on each unit of Product supplied by Company to Customer under the
DPA (with respect to each such unit, the “Activation Fee” and collectively, the “Activation Fees”)
at the time and in the manner set forth in the DPA.

 

6.2              
Support Fees. Customer will pay Company the annual software maintenance fees set forth in Appendices A & B attached
to the DPA, on a per unit basis, based on the total number of active units of Customer Products during such applicable year (the
 “Support Fees”, and together with the Activation Fees, collectively, the “Software Fees”)
at the time and in the manner set forth in the DPA.

 

7.       
Disclaimer. By its nature, the Firmware may contain errors, bugs, and other problems that could cause system failure. In
addition, the Firmware may not have any documentation, and any documentation in existence may be inaccurate or incomplete. Company
PROVIDES THE FIRMWARE, SUPPORT AND ANY RELATED DOCUMENTATION TO CUSTOMER ON AN “AS-IS” AND “WITH ALL
FAULTS” BASIS WITHOUT REPRESENTATION OR WARRANTY OF ANY KIND, AND COMPANY, ON BEHALF OF ITSELF AND ITS AFFILIATES, SUPPLIERS
AND LICENSORS, MAKES NO AND HEREBY DISCLAIMS ANY AND ALL REPRESENTATIONS AND WARRANTIES OF ANY KIND REGARDING THE FIRMWARE, SUPPORT,
AND ANY RELATED DOCUMENTATION, OR THE USE OR OPERATION OF THE FIRMWARE, SUPPORT, AND ANY RELATED DOCUMENTATION, AND HEREBY SPECIFICALLY
DISCLAIMS ALL OTHER REPRESENTATIONS AND WARRANTIES, WHETHER EXPRESS, IMPLIED OR OTHERWISE, INCLUDING WITHOUT LIMITATION, ANY IMPLIED
WARRANTIES OF TITLE, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AVAILABILITY, AND NON-INFRINGEMENT.

 

8.       
Indemnification; Consequential Damages Waiver; Limitation of Liability.

 

8.1              
Indemnification. Each Party shall indemnify, defend, and hold harmless the other Party and its officers, directors, employees,
and contractors from and against any and all liabilities, losses, damages, costs, and other expenses (including reasonable attorneys’
fees) resulting from any claim or suit arising out of or related to (i) the indemnifying Party’s material breach of this
Agreement; (ii) any use or misuse (including any use outside of the express scope of the licenses granted hereunder) of the Firmware,
Support or Customer Products by the indemnifying Party or any of its officers, directors, employees, and contractors or any of
their End Users of the Firmware, Support or Customer Products; (iii) the other Party’s compliance with any explicit instructions
or specifications provided by the indemnifying Party; (iv) in the case of the Customer, (x) the modification of the Firmware by
anyone other than Company; (y) the combination of the Firmware with any product, component, software, or service not provided
by Company without Company’s written consent, not to be unreasonably withheld.

 

8.2              
Consequential Damages Waiver. EXCEPT WITH RESPECT TO THE OBLIGATIONS SET FORTH IN SECTION 5 AND SECTION 8.1,
AND EXCLUDING ANY UNAUTHORIZED USE OF THE FIRMWARE BY THE CUSTOMER, IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER PARTY
OR ANY THIRD PARTY FOR THE COST OF PROCUREMENT OF SUBSTITUTE GOODS, LOSS OF USE, LOSS OF DATA, INTERRUPTION OF BUSINESS OR ANY
INCIDENTAL, SPECIAL, INDIRECT, EXEMPLARY, CONSEQUENTIAL OR PUNITIVE DAMAGES OF ANY KIND ARISING OUT OF OR RELATING TO THIS AGREEMENT,
HOWEVER INCURRED, WHETHER SUCH LIABILITY IS ASSERTED ON THE BASIS OF CONTRACT, TORT (INCLUDING NEGLIGENCE OR STRICT LIABILITY),
OR OTHERWISE, EVEN IF SUCH PARTY IS ADVISED OF THE POSSIBILITY OF SUCH DAMAGES IN ADVANCE BY THE OTHER PARTY.

 

    Page 29 of 35

     

    

 

8.3              
 Limitation of Liability. NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE CONTRARY, IN NO EVENT SHALL THE TOTAL, CUMULATIVE
LIABILITY OF COMPANY ARISING OUT OF OR RELATING TO THIS AGREEMENT IN ANY CONTRACT YEAR EXCEED THE SOFTWARE FEES ACTUALLY PAID
TO COMPANY DURING THE IMMEDIATELY PRIOR CONTRACT YEAR.

 

9.      
Term and Termination.

 

9.1              
Term; Termination. This Agreement shall remain in full force during the term of the DPA for so long as the DPA remains
in effect and Customer remains in full and continuing compliance with the terms and conditions of this Agreement and those set
forth in the DPA and any other attachment thereto; provided, Company may terminate or suspend, in its sole discretion,
its obligations to provide Support hereunder, effective immediately, by giving Customer written notice of termination or suspension,
if Customer breaches any of its material obligations under this Agreement and fails to cure such breach to the satisfaction of
Company within thirty (30) days after receiving written notice thereof from Company or if Customer has failed to pay any undisputed
amounts owed under this Agreement within thirty (30) days after Customer has received written notice from Company regarding such
past due amount; and further provided, Customer may terminate this Agreement, effective immediately, by giving Company
written notice of termination or suspension, if Company breaches any of its material obligations under this Agreement and fails
to cure such breach to the satisfaction of Company within thirty (30) days after receiving written notice thereof from Customer
or if Company fails to provide the Support to Customer.

 

9.2              
Effect of Termination. In the event that this Agreement is terminated pursuant to Article 9.1 Company shall have no further
obligation to provide Support and Customer shall immediately pay to Company all outstanding amounts due under this Agreement.
Customer shall not be liable for damages of any kind as a result of properly exercising its respective right to suspend performance
or terminate this Agreement according to the terms and conditions of this Agreement, and such suspension or termination, as applicable,
will not affect any other right or remedy of either Party. No compensation of any kind (including without limitation any claim
for loss of profits, loss of prospective profits, damages, or indemnity) shall be due from either Party to the other solely as
a result of such suspension or termination of this Agreement. For clarity, upon termination or expiration of the DPA for any reason,
Company shall have no further obligation to fulfill any new orders for the Products and the License shall thereby cease to apply
with respect any new or additional Products not supplied by Company to Customer, including with respect to any Customer Products
that do not incorporate Products supplied by Company to Customer.

 

10.     
General Terms and Conditions.

 

10.1           
Notices. Any consent, notice or report required or permitted to be given or made under this Agreement by one of the Parties
to the other shall be in writing and addressed to such other Party at its address indicated below, or to such other address as
the addressee shall have last furnished in writing to the addressor. Such notices shall be deemed to have been sufficiently given
if and at the moment it is delivered in person, transmitted by facsimile (upon receipt by the sender of a positive transmission
report), by express courier service (upon signature of the receipt), or by registered letter with return receipt or its equivalent
(upon execution of the return receipt by the recipients) to the following persons and addresses:

 

    Page 30 of 35

     

    

 

If
to Customer:                                                              MEDIROM, Inc.

Tradepia
Odaiba 16F, 2-3-1

Daiba,
Minato-ku

Tokyo
135-0091

Japan

Attention:
CEO

 

If
to Company:                                                              Matrix Industries, Inc.,

1440
O’Brien Drive, Suite A-1

Menlo
Park, California, USA 94025

Attention:
CEO

 

10.2           
Governing Law: Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of New
York, USA without regard to the conflicts of law principles thereof. The parties further agree that the state and federal courts
located in ay competent jurisdiction in New York shall have exclusive jurisdiction and venue for all matters regarding the existence,
interpretation, execution, validity, enforceability, performance and termination of this Agreement(provided that Company may at
any time bring an action anywhere in the world to protect or enforce its Intellectual Property Rights and Confidential Information).
The United Nations Convention on Contracts for the International Sale of Goods shall not apply to this Agreement.

 

10.3           
Dispute Resolution. In the event of any dispute between the parties relating to, resulting from or arising out of this
Agreement, a Party may notify the other Party in writing of such dispute providing details of the subject matter of the dispute
and any relevant documentation. Up to one (1) duly authorized executive officer of each Party shall promptly attempt to settle
such dispute within a period of three (3) months after notice. If the executive officers of the Parties are unable to resolve
the issue within three (3) months after notice, the dispute may be submitted by either Party to the courts stipulated in Section
10.2.

 

10.4           
Independent Contractors. Each Party acknowledges that the parties shall be independent contractors and that the relationship
between the parties shall not constitute a partnership, joint venture or agency. Neither Party shall have the authority to make
any statements, representations or commitments of any kind, or to take any action, which shall be binding on the other Party,
without the prior consent of the other Party to do so.

 

10.5           
Waiver. The waiver by a Party of any right hereunder, or of any failure to perform or breach by the other Party, shall
not be deemed a waiver of any other right hereunder or of any other breach or failure by the other Party, whether of a similar
nature or otherwise. Any waiver must be in writing and signed by an authorized representative of the waiving Party.

 

10.6           
Construction. The singular will include the plural and the plural will include the singular. The captions of this Agreement
are for convenience of reference only and in no way define, describe, extend or limit the scope or intent of this Agreement or
the intent of any provision contained in this Agreement. The words “include” and “including” will be deemed
to be followed by the phrase “but not limited to”, “without limitation”, “inter alia” or words
of similar import. The rights and remedies provided herein shall be cumulative and not exclusive of any other rights or remedies
provided by law or in equity, unless expressly stated otherwise.

 

10.7            Severability.
In the event that any provision of this Agreement is declared invalid, unenforceable or void to any extent, such provision
shall be modified, if possible, by reducing its duration and scope to allow enforcement of the maximum permissible duration
and scope. In any event, such declaration shall not affect the remaining provisions of this Agreement. Any declaration of
such invalidity, unenforceability or void provision in any jurisdiction shall not invalidate or render unenforceable or void
such provision in any other jurisdiction.

 

    Page 31 of 35

     

    

 

10.8           
English Language. This Agreement was negotiated and executed in English, and the original language version shall be controlling.
All communications and notices to be made or given pursuant to this Agreement shall be in English.

 

10.9           
Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but
all of which together shall constitute one and the same instrument. A signature transmitted via facsimile or electronic means
shall be deemed to be and shall be as effective as an original signature upon confirmation of transmission.

 

10.10       
Force Majeure. Neither Party will be responsible for any failure or delay in the performance of all or any part of this
Agreement caused by force majeure, including, without limitation, acts of God and nature, intervention of government, war or threat
of war, conditions similar to war, acts of terrorism, sanctions, blockades, embargoes, strikes, lockouts, or other similar causes
or circumstances which cannot reasonably be prevented by the Party the performance of which is delayed (“Force Majeure”).
The affected Party shall promptly give written notice to the other Party whenever such Force Majeure becomes reasonably foreseeable,
and shall use all reasonable commercial efforts to overcome the effects of the Force Majeure as promptly as possible, and shall
promptly give written notice to the other Party of the cessation of such Force Majeure.

 

10.11       
Waiver. Any waiver by either Party of the breach of any of the terms or conditions of this Agreement will not be considered
as a continuing waiver or a waiver of any prior or subsequent breach of the same or any other terms or conditions.

 

10.12       
Entire Agreement. This Agreement (including all attachments hereto which are hereby incorporated herein) contains the entire
understanding of the parties with respect to the subject matter hereof. All express or implied representations, agreements and
understandings, either oral or written, regarding the subject matter of this Agreement heretofore made are expressly superseded
by this Agreement. Each Party confirms that it is not relying on any representations or warranties of the other Party or its representatives
except as specifically set forth herein. No amendment or modification of this Agreement will be binding upon the parties unless
in writing and duly executed by authorized representatives of both parties.

 

10.13        
Assignment. Neither Party may assign this Agreement without the other Party’s prior written consent, not to
unreasonably withheld or delayed, provided, however, in the event of a transfer or sale by a Party to a third party of all or
substantially all of the business or assets of the assigning Party to which this Agreement relates then
the assigning Party shall be required to assign this Agreement to such third party, the other Party’s consent shall not
be required for such assignment, and this Agreement (including all supply obligations hereunder) will continue on in full force
and effect. In the event of any assignment by a Party in accordance with this Section 10.13, the assigning Party’s
rights and obligations herein shall be binding upon its successor and assigns. Any attempted assignment or delegation in violation
of this Section 10.13 shall be void and of no effect.

 

    Page 32 of 35

     

    

 

Appendix
A

 

[***]

 

    Page 33 of 35

     

    

 

Appendix
F

 

Costed
Bill of Materials (Preliminary)

 

[to be added]

 

    Page 34 of 35

     

    

 

Appendix
G

 

Preliminary
Development Schedule

 

[***]

 

    Page 35 of 35

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