Document:

Exhibit 10.1

 

SECURITIES
PURCHASE AGREEMENT

 

This
Securities Purchase Agreement (this “Agreement”) is dated as of January 15, 2019, between Helios and Matheson
Analytics Inc., a Delaware 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 of 1933, as amended (the “Securities Act”), 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 4.5.

 

“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 except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or
any day on which banking institutions in the State of New York are authorized or required by law or other governmental action
to close.

 

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

 

“Closing
Date” means the Trading Day on which all of the Transaction Documents have been executed and delivered by the applicable
parties thereto, and all conditions precedent to (i) the Purchasers’ obligations to pay the Subscription Amount and (ii)
the Company’s obligations to deliver the Securities, in each case, have been satisfied or waived, but in no event later
than the first (1st) Trading Day following the date hereof.

 

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

 

“Common
Stock” means the common stock of the Company, par value $0.01 per share, and any other class of securities into which
such securities may hereafter be reclassified or changed.

 

“Common
Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to
acquire at any time 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.

 

“Common
Units” means each Common Unit consisting of (a) one Share, (b) a Series C Warrant to purchase one (1) Series C Warrant
Share, (c) a Series D Warrant to purchase one (1) Series D Warrant Shares and (d) a Series E Warrant to purchase one (1) Series
E Warrant Shares.

 

“Common
Unit Purchase Price” equals $0.0163 per each Common Unit, 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.

 

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

 

“Company
Counsel” means Greenberg Traurig, LLP, with offices located at 1840 Century Park East, Suite 1900, Los Angeles, CA 90067.

 

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

 

“Disclosure
Time” means, (i) if this Agreement is signed on any 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, no later than 9:01 a.m. (New York City time) on the Trading
Day immediately following the date hereof, unless otherwise instructed to an earlier time by the Placement Agent (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 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, consultants, 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 any Securities issued hereunder
and/or other 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
4.12(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 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 $0.0163, 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 H.C. Wainwright & Co., LLC.

 

“Pre-Funded
Units” means each Pre-Funded Unit consisting of (a) one Pre-Funded Warrant to initially purchase one Pre-Funded Warrant
Share, (b) a Series C Warrant to purchase one (1) Series C Warrant Share, (c) a Series D Warrant to purchase one (1) Series D
Warrant Shares and (d) a Series E Warrant to purchase one (1) Series E Warrant Shares.

 

“Pre-Funded
Unit Purchase Price” equals $0.0153 per each Pre-Funded Unit, 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.

 

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

 

“Pre-Funded
Warrants” means, collectively, the Pre-Funded Common Stock purchase warrants delivered to the Purchasers at the Closing
in accordance with Section 2.2(a) hereof, which Pre-Funded Warrants shall be exercisable immediately and shall expire when exercised
in full, in the form of Exhibit B attached hereto.

 

“Pre-Funded
Warrant Shares” means the Shares issuable upon exercise of the Pre-Funded Warrants.

 

“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 base 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 4.8.

 

“Registration
Statement” means the effective registration statement with Commission file No. 333-226024 which registers the sale of
the Shares, the Warrants and the Warrant Shares.

 

“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.

 

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“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”
means the Units, Shares, the Warrants and the Warrant Shares.

 

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

 

“Series
C Warrants” means, collectively, the Series C Common Stock Purchase Warrants delivered to the Purchasers at the Closing
in accordance with Section 2.2(a) hereof, which Warrants shall be exercisable commencing six (6) months following the issuance
date and have a term of exercise equal to five (5) years, in the form of Exhibit A-1 attached hereto.

 

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

 

“Series
D Warrants” means, collectively, the Series D Common Stock Purchase Warrants delivered to the Purchasers at the Closing
in accordance with Section 2.2(a) hereof, which Warrants shall be exercisable commencing six (6) months following the issuance
date and have a term of exercise equal to one (1) year, in the form of Exhibit A-2 attached hereto.

 

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

 

“Series
E Warrants” means, collectively, the Series E Common Stock Purchase Warrants delivered to the Purchasers at the Closing
in accordance with Section 2.2(a) hereof, which Warrants shall be exercisable commencing six (6) months following the issuance
date and have a term of exercise equal to one (1) year, in the form of Exhibit A-3 attached hereto.

 

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

 

“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). 

 

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

 

“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, the Warrants, all exhibits and schedules thereto and hereto and any other documents
or agreements executed in connection with the transactions contemplated hereunder.

 

“Transfer
Agent” means Computershare, the current transfer agent of the Company, with a mailing address of 350 Indiana Street,
Suite 750, Golden, Colorado 80401, and any successor transfer agent of the Company.

 

“Units”
means, collectively, the Common Units and the Pre-Funded Units.

 

“Warrants”
means, collectively, Series C Warrants, Series D Warrants, Series E Warrants and the Pre-Funded Warrants.

 

“Warrant
Shares” means, collectively, the Series C Warrants Shares, the Series D Warrant Shares, the Series E Warrant Shares
and the Pre-Funded Warrant Shares issuable upon exercise of the Warrants.

 

ARTICLE
II.

PURCHASE AND SALE

 

2.1 Closing.
On the Closing Date, upon the terms and subject to the conditions set forth herein, the Company agrees to sell, and
the Purchasers, severally and not jointly, agree to purchase, up to an aggregate of $5,433,333.34 million of Common Units
as determined pursuant to Section 2.2(a); provided, however, that, solely to the extent a Purchaser
determines that such Purchaser (together with such Purchaser’s Affiliates, and any Person acting as a group together
with such Purchaser or any of such Purchaser’s Affiliates) would beneficially own in excess of the Beneficial
Ownership Limitation, in lieu of purchasing Common Units, such Purchaser may elect to purchase Pre-Funded Units at the
Pre-Funded Unit Purchase Price in lieu of Common Units. 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 designees. The Company shall deliver to each Purchaser its respective Shares and Warrants as
determined pursuant to Section 2.2(a), and the Company and each Purchaser shall deliver the other items set forth in Section
2.2 deliverable at the Closing. Upon satisfaction of the covenants and conditions set forth in Sections 2.2 and 2.3, the
Closing shall occur at the offices of the Placement Agent 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). The “Beneficial Ownership Limitation” shall be 9.99% of the number of Common Stock
outstanding immediately after giving effect to the issuance of the Securities on the Closing Date. The Company covenants
that, if the Purchaser delivers a Notice of Exercise (as defined in the Pre-Funded Warrant) no later than 12:00 p.m. (New
York City time) on the Closing Date to exercise any Pre-Funded Warrants between the date hereof and the Closing Date, the
Company shall deliver Pre-Funded Warrant Shares to the Purchaser on the Closing Date in connection with such Notice of
Exercise.

 

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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, in a form reasonably acceptable to the Placement Agent and Purchasers;

 

(iii)
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;

 

(v)
for each Purchaser of Pre-Funded Units, a Pre-Funded Warrant registered in the name of such Purchaser to purchase up to such
number of shares of Common Stock equal to such Purchaser’s Pre-Funded Unit Subscription Amount divided by the
Pre-Funded Unit Purchase Price, with an exercise price equal to $0.001, subject to adjustment therein;

 

(vi)
such number of Series C Warrants registered in the name of such Purchaser to purchase up to a number of shares of Common
Stock equal to 100% of such Purchaser’s Shares and Pre-Funded Warrant Shares initially underlying the Pre-Funded
Warrants, with an exercise price equal to $0.0163, subject to adjustment therein;

 

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(vii)
such number of Series D Warrants registered in the name of such Purchaser to purchase up to a number of shares of Common
Stock equal to 100% of such Purchaser’s Shares and Pre-Funded Warrant Shares initially underlying the Pre-Funded
Warrants, with an exercise price equal to $0.0163, subject to adjustment therein;

 

(viii)
such number of Series E Warrants registered in the name of such Purchaser to purchase up to a number of shares of Common
Stock equal to 100% of such Purchaser’s Shares and Pre-Funded Warrant Shares initially underlying the Pre-Funded
Warrants, with an exercise price equal to $1.00, subject to adjustment therein; and

 

(ix)
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 designees.

 

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) when made and on the Closing Date of the representations and warranties of the
Purchasers contained herein (unless as of a specific date therein in which case they shall be accurate as of such
date);

 

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

 

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

 

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(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 Securities at the Closing.

 

ARTICLE
III.

REPRESENTATIONS AND WARRANTIES

 

3.1
Representations and Warranties of the Company. Except as set forth in the SEC Reports and 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, the capital stock or other equity interests of each Subsidiary that it owns 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.

 

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(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, 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.

 

(d) No
Conflicts. The execution, delivery and performance by the Company of this Agreement and the other Transaction
Documents to which it is a party, the issuance and sale of the Securities and the consummation by it of the transactions
contemplated hereby and thereby do not and will not (i) conflict with or violate any provision of the Company’s or any
Subsidiary’s certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii)
conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under,
result in the creation of any Lien upon any of the properties or assets of the Company or any Subsidiary, or give to others
any rights of termination, amendment, anti-dilution or similar adjustments, acceleration or cancellation (with or without
notice, lapse of time or both) of, any agreement, credit facility, 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.

 

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(e) Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any
notice to, or make any filing or registration with, any court or other federal, state, local or other governmental
authority or other Person in connection with the execution, delivery and performance by the Company of the Transaction
Documents, other than: (i) the filings required pursuant to Section 4.4 of this Agreement, (ii) the filing with the
Commission of the Prospectus Supplement, (iii) application(s) to each applicable Trading Market for the listing of the Shares
and Warrant 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 Securities; 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 Warrants are duly authorized and, when issued and paid for in accordance with the
applicable Transaction Documents, will constitute valid and legally binding obligations of the Company, enforceable against
the Company in accordance with their terms, except as may be limited by bankruptcy, insolvency, reorganization, fraudulent
transfer, fraudulent conveyance, moratorium or other laws now or hereafter in effect relating to or affecting enforcement of
creditors’ rights generally and by general principles of equity (including without limitation concepts of materiality,
reasonableness, good faith and fair dealing), regardless of whether such enforcement is considered in a proceeding at law or
in equity. The Warrant Shares are duly authorized and, when issued in accordance with the terms of the Warrants, will be
validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company. The Company has reserved
from its duly authorized capital stock the maximum number of shares of Common Stock issuable pursuant to this Agreement and
the Warrants. The Company has prepared and filed the Registration Statement in conformity with the requirements of the
Securities Act, which became effective on July 5, 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 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 the transaction contemplated by the Transaction Documents meets the transaction requirements as
set forth in General Instruction I.B.1 of Form S-3. 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 Supplement 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.

 

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(g) Capitalization.
The capitalization of the Company is as set forth on Schedule 3.1(g), which Schedule 3.1(g) shall also include
the number of shares of Common Stock owned beneficially, and of record, by Affiliates of the Company as of the date hereof.
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. Except as set forth on Schedule 3.1(g), 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.
Except as a result of the purchase and sale of the Securities, and except as set forth on Schedule 3.1(g), there are
no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to,
or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to
subscribe for or acquire, any shares of Common Stock or the capital stock of any Subsidiary, or contracts, commitments,
understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of
Common Stock or Common Stock Equivalents or capital stock of any Subsidiary. Except as set forth on Schedule 3.1(g),
the issuance and sale of the Securities will not obligate the Company or any Subsidiary to issue shares of Common Stock or
other securities to any Person (other than the Purchasers) and will not result in a right of any holder of Company securities
to adjust the exercise, conversion, exchange or reset price under any of such securities. Except as set forth on Schedule
3.1(g), 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. Except for approval by the
Trading Market, no further approval or authorization of any stockholder, the Board of Directors or others is required for the
issuance and sale of the Securities. Except as described in the SEC Reports, 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.

 

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(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.

 

(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 in the SEC Reports or in 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 Securities contemplated by
this Agreement or as set forth on Schedule 3.1(i), no event, liability, fact, circumstance, occurrence or development
has occurred or exists or is reasonably expected to occur or exist with respect to the Company or its Subsidiaries or their
respective businesses, 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.

 

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(j) Litigation.
Except as set forth on Schedule 3(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”) which (i) adversely
affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the Securities or (ii)
could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect. Except
as set forth on Schedule 3(j), 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 that would be required to be disclosed under applicable securities laws and which has not been publicly announced.
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. Except as set forth on Schedule 3.1(k), 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. 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. To the
knowledge of the Company, 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, (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, and (iii) Liens
set forth on Schedule 3.1(o). 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 except as set forth in the complaint filed by MoviePass Inc.
against Sinemia Inc. for patent infringement in a case filed on February 23, 2018 in the United States District Court,
Central District of California (Case no. 2:18-cv-01517-SJO-PLA). 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. The
Company has no knowledge of any facts that would preclude it from having valid license rights or clear title to the
Intellectual Property Rights. The Company has no knowledge that it lacks or will be unable to obtain any rights or
licenses to use all Intellectual Property Rights that are necessary to conduct its business.

 

(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 been advised 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 in all material
respects. Except as set forth in the SEC Reports, the Company and the Subsidiaries maintain a system of internal
accounting controls sufficient to provide reasonable assurance that: (i) transactions are executed in accordance with
management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of
financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only
in accordance with management’s general or specific authorization, and (iv) the recorded accountability for assets is
compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.
The Company and the Subsidiaries have established disclosure controls and procedures (as defined in Exchange Act Rules
13a-15(e) and 15d-15(e)) for the Company and the Subsidiaries and designed such disclosure controls and procedures to provide
reasonable assurances 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, except as
disclosed in the SEC Reports, 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 Securities,
will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940,
as amended. The Company shall conduct its business in a manner so that it will not become an “investment company”
subject to registration under the Investment Company Act of 1940, as amended.

 

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

 

(w) Listing
and Maintenance Requirements. The 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. Except as set forth in the SEC Reports, 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. 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 Securities and the
Purchasers’ ownership of the Securities.

 

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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 in all material
respects 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, except as set forth on Schedule 3.1(z), neither the Company, nor any of its Affiliates, nor any Person
acting on its or their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers
to buy any security, under circumstances that would cause this offering of the Securities to be integrated with prior
offerings by the Company for purposes of any applicable shareholder approval provisions of any Trading Market on which any of
the securities of the Company are listed or designated.

 

(aa) Indebtedness. 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.

 

(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.

 

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(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 independent registered public accounting firm is Rosenberg Rich Baker Berman, P.A. 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 ended December 31, 2018.

 

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

 

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(ff)
Acknowledgment Regarding Purchaser’s Trading Activity. Anything
in this Agreement or elsewhere herein to the contrary notwithstanding (except for Sections 3.2(e) and 4.14 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 Securities for any specified term; (ii) past or future open market or
other transactions by any Purchaser, specifically including, without limitation, Short Sales or “derivative” transactions,
before or after the closing of this or future private placement transactions, may negatively impact the market price of the Company’s
publicly-traded securities; (iii) any Purchaser, and counter-parties in “derivative” transactions to which any such
Purchaser is a party, directly or indirectly, presently may have a “short” position in the Common Stock, and (iv)
each Purchaser shall not be deemed to have any affiliation with or control over any arm’s length counter-party in any “derivative”
transaction. The Company further understands and acknowledges that (y) one or more Purchasers may engage in hedging activities
at various times during the period that the Securities are outstanding, including, without limitation, during the periods that
the value of the Warrant Shares deliverable with respect to Securities are being determined, and (z) such hedging activities (if
any) could reduce the value of the existing 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 Securities, (ii) sold, bid for, purchased, or, paid any
compensation for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay to any Person any
compensation for soliciting another to purchase any other securities of the Company, 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
Securities.

 

(hh) Stock
Option Plans. The Company has not granted any stock options under its stock option plan.

 

(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.

 

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(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.

 

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

 

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

 

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

 

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

 

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

 

(e) Access
to Information. Such Purchaser acknowledges that it has had the opportunity to review the Transaction
Documents (including all exhibits and schedules thereto) and the SEC Reports and has been afforded, (i) the opportunity to
ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the
terms and conditions of the offering of the Securities and the merits and risks of investing in the Securities; (ii) access
to information about the Company and its financial condition, results of operations, business, properties, management and
prospects sufficient to enable it to evaluate its investment; and (iii) the opportunity to obtain such additional information
that the Company possesses or can acquire without unreasonable effort or expense that is necessary to make an informed
investment decision with respect to the investment.  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
Securities 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 Securities 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 Securities 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 terms of the transactions contemplated hereunder and ending immediately
prior to the execution hereof. Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment
vehicle whereby separate portfolio managers manage separate portions of such Purchaser’s assets and the portfolio
managers have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such
Purchaser’s assets, the representation set forth above shall only apply with respect to the portion of assets managed
by the portfolio manager that made the investment decision to purchase the Securities covered by this Agreement. Other than
to other Persons party to this Agreement or to such Purchaser’s representatives, including, without limitation, its
officers, directors, partners, legal and other advisors, employees, agents and Affiliates, such Purchaser has maintained the
confidentiality of all disclosures made to it in connection with this transaction (including the existence and terms of this
transaction). Notwithstanding the foregoing, for the avoidance of doubt, nothing contained herein shall constitute a
representation or warranty, or preclude any actions, with respect to locating or borrowing shares in order to effect Short
Sales or similar transactions in the future.

 

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

 

ARTICLE
IV.

OTHER AGREEMENTS OF THE PARTIES

 

4.1
Warrant Shares. If all or any portion of a Warrant is exercised at a time when there is an effective registration statement
to cover the issuance or resale of the Warrant Shares or if the Warrant is exercised via cashless exercise, the Warrant Shares
issued pursuant to any such exercise shall be issued free of all legends. If at any time following the date hereof the Registration
Statement (or any subsequent registration statement registering the sale or resale of the Warrant Shares) is not effective or
is not otherwise available for the sale or resale of the Warrant Shares, the Company shall immediately notify the holders of the
Warrants in writing that such registration statement is not then effective and thereafter shall promptly notify such holders when
the registration statement is effective again and available for the sale or resale of the Warrant Shares (it being understood
and agreed that the foregoing shall not (1) limit the ability of the Company to issue, or any Purchaser to sell, any of the Warrant
Shares in compliance with applicable federal and state securities laws or (2) obligate the Company to register the Warrant Shares
for resale on any registration statement). The Company shall use best efforts to keep the Registration Statement registering the
issuance of the Warrant Shares effective during the term of the Warrants.

 

4.2
Furnishing of Information. Until the earlier of the time that (i) no Purchaser owns Securities and (ii) the Warrants have
expired or are otherwise no longer outstanding, the Company covenants to use commercially reasonable efforts 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.

 

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

 

4.4
Securities Laws Disclosure; Publicity. The Company shall (a) by 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).

 

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

 

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

 

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

 

4.8
Indemnification of Purchasers. Subject to the provisions of this Section 4.8, the Company will indemnify and hold each
Purchaser and its directors, officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally
equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls
such Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors,
officers, shareholders, agents, members, partners or employees (and any other Persons with a functionally equivalent role of a
Person holding such titles notwithstanding a lack of such title or any other title) of such controlling persons (each, a “Purchaser
Party”) harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses,
including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation
that any such Purchaser Party may suffer or incur as a result of or relating to (a) a material 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 (x) the employment thereof has been specifically authorized by the Company in writing, (y) the
Company has failed after a reasonable period of time to assume such defense and to employ counsel or (z) 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 (1) for any settlement
by a Purchaser Party effected without the Company’s prior written consent, which shall not be unreasonably withheld or delayed;
or (2) to the extent, but only to the extent that a loss, claim, damage or liability is attributable to any Purchaser Party’s
breach of any of the representations, warranties, covenants or agreements made by such Purchaser Party in this Agreement or in
the other Transaction Documents. The indemnification required by this Section 4.8 shall be made by periodic payments of the amount
thereof during the course of the investigation or defense, as and when bills are received or are incurred. The indemnity agreements
contained herein shall be in addition to any cause of action or similar right of any Purchaser Party against the Company or others
and any liabilities the Company may be subject to pursuant to law.

 

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4.9
Reservation of Common Stock. As of the date hereof, the Company has reserved and the Company shall continue to reserve
and keep available at all times, free of preemptive rights, a sufficient number of shares of Common Stock for the purpose of enabling
the Company to issue Shares pursuant to this Agreement and Warrant Shares pursuant to any exercise of the Warrants.

 

4.10
Listing of Common Stock. The Company hereby agrees to use commercially reasonable 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 and Warrant Shares on such Trading Market and promptly secure the listing of all of the
Shares and Warrant 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 Warrant Shares, and will take
such other action as is necessary to cause all of the Shares and Warrant Shares to be listed or quoted on such other Trading Market
as promptly as possible. The Company will then use commercially reasonable efforts to continue the listing and trading of its
Common Stock on such other Trading Market and will comply in all respects with the Company’s reporting, filing and other
obligations under the bylaws or rules of such other Trading Market. The Company agrees to use commercially reasonable efforts
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.

 

4.11
Reserved.

 

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4.12 Subsequent
Equity Sales.

 

(a)
From the date hereof until 15 days after 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.

 

(b) Notwithstanding the foregoing, this Section 4.12 shall not apply in respect of an Exempt Issuance.

 

4.13
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 Documents. For clarification purposes, this provision
constitutes a separate right granted to each Purchaser by the Company and negotiated separately by each Purchaser, and is intended
for the Company to treat the Purchasers as a class and shall not in any way be construed as the Purchasers acting in concert or
as a group with respect to the purchase, disposition or voting of Securities or otherwise.

 

4.14
Certain Transactions and Confidentiality. Each Purchaser, severally and not jointly with the other Purchasers, covenants
that neither it nor any Affiliate acting on its behalf or pursuant to any understanding with it will execute any purchases or
sales, including Short Sales of any of the Company’s securities during the period commencing with the execution of this
Agreement and ending at such time that the transactions contemplated by this Agreement are first publicly announced pursuant to
the initial press release as described in Section 4.4.  Each Purchaser, severally and not jointly with the other Purchasers,
covenants that until such time as the transactions contemplated by this Agreement are publicly disclosed by the Company pursuant
to the initial press release as described in Section 4.4, such Purchaser will maintain the confidentiality of the existence and
terms of this transaction and the information included in the Disclosure Schedules.  Notwithstanding the foregoing, and notwithstanding
anything contained in this Agreement to the contrary, the Company expressly acknowledges and agrees that (i) no Purchaser makes
any representation, warranty or covenant hereby that it will not engage in effecting transactions in any securities of the Company
after the time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press
release as described in Section 4.4, (ii) no Purchaser shall be restricted or prohibited from effecting any transactions in any
securities of the Company in accordance with applicable securities laws from and after the time that the transactions contemplated
by this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.4 and (iii) no
Purchaser shall have any duty of confidentiality or duty not to trade in the securities of the Company to the Company or its Subsidiaries
after the issuance of the initial press release as described in Section 4.4.  Notwithstanding the foregoing, in the case
of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such
Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio
managers managing other portions of such Purchaser’s assets, the covenant set forth above shall only apply with respect
to the portion of assets managed by the portfolio manager that made the investment decision to purchase the Securities covered
by this Agreement.

 

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4.15
Reserved.

 

4.16
Exercise Procedures. The form of Notice of Exercise included in the Warrants set forth the totality of the procedures required
of the Purchasers in order to exercise the Warrants. No additional legal opinion, other information or instructions shall be required
of the Purchasers to exercise their Warrants. Without limiting the preceding sentences, no ink-original Notice of Exercise shall
be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise form be
required in order to exercise the Warrants. The Company shall honor exercises of the Warrants and shall deliver Warrant Shares
in accordance with the terms, conditions and time periods set forth in the Transaction Documents.

 

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 and any exercise notice delivered by a Purchaser), stamp taxes and other taxes and duties levied in connection with the
delivery of any Securities to the Purchasers.

 

5.3
Entire Agreement. The Transaction Documents, 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 date 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 date of transmission,
if such notice or communication is delivered via facsimile at the facsimile number or email attachment at the email address as
set forth on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time)
on any Trading Day, (c) the second (2nd)Trading Day following the date of mailing, if sent by U.S. nationally recognized
overnight courier service or (d) upon actual receipt by the party to whom such notice is required to be given. The address for
such notices and communications shall be as set forth on the signature pages attached hereto. To the extent that any notice provided
pursuant to any Transaction Document constitutes, or contains, material, non-public information regarding the Company or any Subsidiaries,
the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K.

 

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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 Securities 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 Securities, provided that such transferee agrees in writing to be
bound, with respect to the transferred Securities, by the provisions of the Transaction Documents that apply to the “Purchasers.”

 

5.8
No Third-Party Beneficiaries. 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 4.8 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 4.8, the prevailing party in such Action or Proceeding shall be reimbursed by the non-prevailing party for its reasonable
attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such Action
or Proceeding.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    32

     

    

 

5.17
Independent Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction
Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way
for the performance or non-performance of the obligations of any other Purchaser under any Transaction Document. Nothing contained
herein or in any other Transaction Document, and no action taken by any Purchaser pursuant hereto or thereto, shall be deemed
to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption
that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated
by the Transaction Documents. Each Purchaser shall be entitled to independently protect and enforce its rights including, without
limitation, the rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary
for any other Purchaser to be joined as an additional party in any Proceeding for such purpose. 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 the legal counsel of the Placement
Agent. The legal counsel of the Placement Agent 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
Liquidated Damages. The Company’s obligations to pay any partial liquidated damages or other amounts owing under
the Transaction Documents is a continuing obligation of the Company and shall not terminate until all unpaid partial liquidated
damages and other amounts have been paid notwithstanding the fact that the instrument or security pursuant to which such partial
liquidated damages or other amounts are due and payable shall have been canceled.

 

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

 

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

 

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

 

(Signature
Pages Follow)

 

    33

     

    

 

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

 

	Helios
                                         and Matheson Analytics Inc. 

	 	Address
    for Notice:
	 	 	 
	By:		 	Fax:
    (305) 402-2226
	 	Name:
    Theodore Farnsworth	 	E-mail:
    ted@hmny.com
	 	Title:
    Chief Executive Officer	 	 

 

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

 

	Kevin
Friedmann

        Greenberg
        Traurig, LLP

        1840
        Century Park East, Suite 1900

        Los
        Angeles, CA 90067-2121

        Fax:
        (310) 586-7800

        E-mail:
friedmannk@gtlaw.com
	 

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE
PAGE FOR PURCHASER FOLLOWS]

 

     

     

    

 

[PURCHASER
SIGNATURE PAGES TO HMNY 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 Warrants to Purchaser (if not same as address for notice):

 

 

DWAC
for Shares:

 

Common
Unit Subscription Amount: $_______________________

 

Common
Units: _________________

 

Shares:
_______________________

 

Series
C Warrant Shares: ________________________

 

Series
D Warrant Shares: ________________________

 

Series
E Warrant Shares: ________________________

 

Pre-Funded
Unit Subscription Amount: $____________

 

Pre-Funded
Units: __________________

 

Pre-Funded
Warrant Shares: ______________

 

EIN
Number:____________________________

 

☐ Notwithstanding
anything contained in this Agreement to the contrary, by checking this box (i) the obligations of the above-signed to
purchase the securities set forth in this Agreement to be purchased from the Company by the above-signed, and the obligations
of the Company to sell such securities to the above-signed, shall be unconditional and all conditions to Closing shall be
disregarded, (ii) the Closing shall occur by the first (1st) Trading Day following the date of this Agreement and (iii) any
condition to Closing contemplated by this Agreement (but prior to being disregarded by clause (i) above) that required
delivery by the Company or the above-signed of any agreement, instrument, certificate or the like or purchase price (as
applicable) shall no longer be a condition and shall instead be an unconditional obligation of the Company or the
above-signed (as applicable) to deliver such agreement, instrument, certificate or the like or purchase price (as applicable)
to such other party on the Closing Date.

 

[SIGNATURE
PAGES CONTINUE]

 

     

     

    

 

 

 

 

 

 

 

DISCLOSURE
SCHEDULES TO THE

 

SECURITIES
PURCHASE AGREEMENT

 

 

 

 

 

These
Disclosure Schedules are being delivered by Helios and Matheson Analytics Inc., a Delaware corporation (the “Company”),
to each purchaser identified on the signature pages to that certain Securities Purchase Agreement, dated January 15, 2019 (as
may be amended from time to time, the “Agreement”). Capitalized terms used herein, but not defined herein,
shall have the respective meanings ascribed thereto in the Agreement.

 

The
inclusion of any information in these Disclosure Schedules shall not be deemed to be an admission or evidence of the materiality
of such information, nor shall it establish a standard of materiality for any purpose whatsoever. Matters reflected in these Disclosure
Schedules are not necessarily limited to matters required by the Agreement to be disclosed in these Disclosure Schedules. Neither
the specification of any dollar amount in the representations and warranties contained in the Agreement nor the inclusion of any
specific item in these Disclosure Schedules is intended to imply that such amounts, higher or lower amounts, the items so included
or other items, are or are not material, and no party to the Agreement shall use the fact of the setting of such amounts or the
fact of the inclusion of any such item in these Disclosure Schedules in any dispute or controversy between the parties as to whether
any obligation, item or matter is or is not material, or may constitute an event or condition which could be considered to have
a Material Adverse Effect.

 

No
disclosure in these Disclosure Schedules relating to any possible or alleged breach or violation of any law or contract shall
be construed as an admission or indication that any such breach or violation exists or has actually occurred. In disclosing the
information in these Disclosure Schedules, each of the Company and its Subsidiaries expressly does not waive any attorney-client
privilege associated with such information or any protection afforded by the work-product doctrine with respect to any of the
matters disclosed or discussed herein. References in these Disclosure Schedules to any contract or other agreement, whether or
not binding, include references to such contract’s or other agreement’s exhibits, annexes and schedules.

 

     

     

    

 

Schedule
3.1(a)

 

Subsidiaries

 

		(1)	Helios
                                         and Matheson Global Services Private Limited, a corporation incorporated under the laws
                                         of India (“Helios India”), of which the Company owns 99.99% of the
                                         outstanding equity and voting power.

 

		(2)	Zone
                                         Technologies, Inc., a Nevada corporation (“Zone”), which is a wholly
                                         owned subsidiary of the Company.

 

		(3)	HMNY
                                         Zone Loan LLC, a Delaware limited liability company (“NewSub”), which
                                         is a wholly owned subsidiary of the Company.

 

		(4)	MoviePass
                                         Inc., a Delaware corporation (“MoviePass”), of which the Company owns
                                         91.8% of the outstanding shares of common stock (excluding options and warrants of MoviePass).

 

		(5)	MoviePass
                                         Ventures, LLC, a Delaware limited liability company, which is a wholly owned subsidiary
                                         of the Company.

 

		(6)	MoviePass
                                         Air LLC, a Delaware limited liability company, which is a wholly owned subsidiary of
                                         the Company.

 

		(7)	MoviePass
                                         Entertainment Holdings Inc., a Delaware corporation, which is a wholly owned subsidiary
                                         of the Company.

 

		(8)	MoviePass
                                         Films LLC, a Delaware limited liability company (“MoviePass Films”),
                                         of which the Company owns 51% of its outstanding membership interests.

 

		(9)	10
                                         Minutes Gone, LLC, a Delaware limited liability company, which is a wholly owned subsidiary
                                         of MoviePass Films.

 

		(10)	Georgia
                                         Film Fund 79, LLC, a Delaware limited liability company, which is a wholly owned subsidiary
                                         of 10 Minutes Gone, LLC.

 

The
items set forth on Schedule 3.1(o) of these Disclosure Schedules are incorporated herein by reference.

 

    2

     

    

 

Schedule
3.1(g)

 

Capitalization

 

As
of the date hereof, the authorized capital stock of the Company consists of (A) 5,000,000,000 shares of Common Stock, of which
1,668,208,926 shares are issued and outstanding as of January 10, 2019, and (B) 2,000,000 shares of preferred stock, $0.01 par
value, of which 20,500 shares of the Company’s Series A Preferred Stock, $0.01 par value, are issued and outstanding as
of the date hereof.

 

	Name of Affiliate	 	

Common Stock

Amount
    and Nature of Beneficial Ownership(1)	 
	Named Executive Officers and Directors	 	 	 	 
	Theodore Farnsworth	 	 	  9,960	(2)
	Stuart Benson	 	 	-	(3)
	Muralikrishna Gadiyaram	 	 	  9,294 	(4)
	Prathap Singh	 	 	  160
	(5)
	Gavriel Ralbag	 	 	  160
	(5)

 

	(1)	Unless otherwise noted, each person named in the table below has sole voting and investment power with regard to all shares beneficially owned, subject to applicable community property laws.  
	(2)	This amount includes 1,000 shares of Common Stock issuable within 60 days of December 5, 2018, subject to entry into applicable award agreements.  This amount does not include 8,213 shares of Common Stock that have been approved for issuance to Mr. Farnsworth in conjunction with the execution of his employment agreement, but have not yet been approved by the Company’s stockholders, as required by Nasdaq Listing Rule 5635(c).
	(3)	Does not include 4,000 shares of Common Stock that have been approved for issuance to Mr. Benson in conjunction with the execution of his employment agreement, but have not yet been approved by the Company’s stockholders, as required by Nasdaq Listing Rule 5635(c).
	(4)	Includes (i) 2,750 shares held by Helios & Matheson Information Technology Ltd. and (ii) 3,544 shares held by Helios Matheson Inc., over which Mr. Gadiyaram holds shared voting and investment control.
	(5)	Each of the Company’s independent directors received a grant of 160 shares as payment for services rendered as a director during 2017.  The shares of Common Stock have not yet been issued.

 

    3

     

    

 

		(1)	On
October 4, 2018, the Company entered into that certain October 2018 Amendment and Exchange Agreement with Hudson Bay Master Fund
Ltd. (the “October Exchange Agreement”), pursuant to which Hudson Bay Master Fund Ltd. has the right to participate
in the transactions contemplated by the Transaction Documents. The Company incorporates herein by reference the information included
at Item 1.01 of, and Exhibit 10.1 to, the Current Report on Form 8-K filed with the Securities and Exchange Commission on October
4, 2018.

 

		(2)	As partial payment for services received from Palladium Capital Advisors, LLC (“Palladium”),
the Company has issued to Palladium warrants to purchase up to 29,364 shares of Common Stock.

 

		(3)	The Company has issued in public offerings in December 2017, February 2018 and April 2018, warrants
to purchase up to 50,886 shares of Common Stock.

 

		(4)	The Company has issued to Oath Inc. warrants to purchase up to 10,201 shares of Common Stock.

 

		(5)	MoviePass has issued outstanding options exercisable for an aggregate amount of 68,205,603 shares
of common stock of MoviePass.

 

		(6)	There are 16,000 shares of Common Stock issuable to MoviePass upon receipt of stockholder approval
and unrestricted conversion of the convertible promissory note in the principal amount of $12 million that the Company issued to
MoviePass upon the closing of the Securities Purchase Agreement, dated August 15, 2017, between the Company and MoviePass.

 

		(7)	On April 15, 2018, the Company’s Board of Directors authorized the issuance of 2,000 shares
of common stock to Helios & Matheson Information Technology Ltd., an Indian corporation and former parent company of the Company
(“HMIT”), in consideration for a 12-month lockup agreement on all of HMIT’s shares ending April 15, 2019.

 

		(8)	The Company’s Board of Directors authorized the issuance of 18,545 shares of Common Stock
to various directors, officers, employees and consultants for services rendered to the Company.

 

		(9)	On April 19, 2018, the Company entered into an underwriting agreement with Canaccord Genuity Inc.
pursuant to which the Company agreed to issue and sell to the underwriters in a best-efforts underwritten public offering of up
to approximately $30 million in gross proceeds of securities of the Company including (A) 10,500,000 Series A-2 units, with each
Series A-2 unit consisting of (i) one share of the Company’s common stock, and (ii) one Series A-2 warrant to purchase one
share of common stock (the “Series A-2 Warrants”) and (B) 500,000 Series B-2 units, with each Series B-2 unit
consisting of (i) one share of the Company’s common stock, and (ii) one Series B-2 warrant to purchase one share of common
stock. The Series A-2 Warrants also include “full ratchet” anti-dilution protection provisions, which provide that
if the Company issues any shares of common stock at a price less than the then current exercise price of the Series A-2 Warrants,
or if the Company issues any securities convertible into, or exercisable, or exchangeable for, shares of common stock with an exercise
or conversion price less than the then current exercise price of the Series A-2 Warrants, then the exercise price of the Series
A-2 Warrants will automatically be reduced to the issuance price of the new shares of common stock or the exercise or conversion
price of the warrants, options or other convertible or exchangeable securities. The Company incorporates herein by reference the
information included at Item 1.01 of the Current Report on Form 8-K filed with the Securities and Exchange Commission on April
19, 2018.

 

    4

     

    

  

		(10)	On October 4, 2018, pursuant to the October Exchange Agreement, the Company issued to Hudson Bay
Master Fund Ltd. a Senior Note in an aggregate principal amount of approximately $20.4 million, which contains redemption or similar
provision, and a participation right by Hudson Bay Master Fund Ltd. The Company incorporates herein by reference the information
included at Item 1.01 of, and Exhibit 4.1 to, the Current Report on Form 8-K filed with the Securities and Exchange Commission
on October 4, 2018.

 

		(11)	On December 18, 2018, pursuant to December 2018 Amendment and Exchange Agreements between the Company
and each of certain institutional investors, the Company issued Series B Senior Notes to such institutional investors in an aggregate
principal amount of approximately $11.3 million, which contain redemption or similar provisions. The Company incorporates herein
by reference the information included at Item 1.01 of, and Exhibit 4.1 to, the Current Report on Form 8-K filed with the Securities
and Exchange Commission on December 18, 2018.

 

		(12)	On June 21, 2018, the Company issued 20,500 shares of Series A Preferred Stock, par value $0.01,
of the Company, and such shares of Series A Preferred Stock contain redemption or similar provisions. The Company incorporates
herein by reference the information included at Item 1.01 of, and Exhibit 3.1 to, the Current Report on Form 8-K filed with the
Securities and Exchange Commission on June 21, 2018.

 

    5

     

    

 

Schedule
3.1(i)

 

Material
Changes; Undisclosed Events; Liabilities or Developments

 

The
items set forth on Schedule 3.1(r) of these Disclosure Schedules related to the issuances of equity securities to any officer,
director or affiliate are incorporated herein by reference.

 

On
January 11, 2019, MoviePass Entertainment Holdings Inc. confidentially submitted a Draft Registration Statement on Form DRS to
the Commission.

 

    6

     

    

 

Schedule
3.1(j)

 

Litigation

 

		(1)	On
                                         August 2, 2018, Jeffrey Chang, acting on behalf of himself and a putative class of persons
                                         who purchased or otherwise acquired the Company’s common stock between August 15,
                                         2017, and July 26, 2018, filed a class action complaint in the U.S. District Court for
                                         the Southern District of New York against the Company and two of its executive officers,
                                         Theodore Farnsworth and Stuart Benson. Jeffrey Chang v. Helios and Matheson Analytics
                                         Inc., et. al., Case No. 1:18-cv-6965. On August 13, 2018, Jeffrey Braxton, acting on
                                         behalf of himself and a putative class of persons who purchased or otherwise acquired
                                         the Company’s common stock between August 15, 2017, and July 26, 2018, filed a
                                         class action complaint in the U.S. District Court for the Southern District of New York
                                         against the Company and two of its executive officers, Theodore Farnsworth and Stuart
                                         Benson. Jeffrey Braxton v. Helios and Matheson Analytics, Inc. et al., Case No. 1:18-cv-07242-UA.
                                         On November 16, 2018, the Court consolidated the two actions, appointed a group as lead
                                         plaintiffs and appointed Levi & Korsinsky as lead counsel for the putative class.
                                         On January 4, 2019, the lead plaintiffs filed a consolidated amended complaint against
                                         the Company, Theodore Farnsworth, Stuart Benson, and Mitchell Lowe (the “Consolidated
                                         Complaint”). The complaint alleges, among other things, that the Company’s
                                         statements to the market were materially false or misleading because the Company allegedly
                                         represented that it would continue to experience substantial growth, and that its business
                                         model was sustainable. The plaintiffs assert claims under Sections 10(b) and 20(a) of
                                         the Exchange Act and Rule 10b-5.

 

		(2)	On
                                         September 20, 2018, Yu Chen, a purported stockholder of the Company, filed a complaint
                                         in the Supreme Court of the State of New York, County of New York, Index No. 654686/2018,
                                         derivatively on behalf of the Company against Theodore Farnsworth, Stuart Benson, Muralikrishna
                                         Gadiyaram, Prathap Singh, Gavriel Ralbag, and Carl Schramm, and the Company as a nominal
                                         defendant. The complaint alleges claims for breach of fiduciary duty and unjust enrichment
                                         against the individual defendants. The plaintiff has agreed to stay the action pending
                                         a decision on an anticipated motion to dismiss the Consolidated Complaint.

 

		(3)	On
                                         February 23, 2018, MoviePass filed a patent infringement complaint against Sinemia, Inc.
                                         in United States District Court, Central District of California. The complaint asserts
                                         infringement of two U.S. patents, U.S. Patent Nos. 8,484,133 (“Secure targeted
                                         personal buying/selling method and system”) and 8,612,325 (“Automatic authentication
                                         and funding method”) by Sinemia, Inc.’s movie-ticket subscription service.
                                         MoviePass’ complaint requests damages and an injunction. On October 29, 2018, Sinemia,
                                         Inc. filed a motion to dismiss MoviePass’ complaint, and the parties are awaiting
                                         the court’s decision with respect to such motion.

 

    7

     

    

 

		(4)	On
                                         November 21, 2018, Jackie Tabas and Katherine Rosenberg-Wohl, acting on behalf of themselves
                                         and all others similarly situated, filed a class action complaint in the U.S. District
                                         Court for the Northern District of California against MoviePass, the Company and three
                                         of their executive officers, Theodore Farnsworth, Stuart Benson and J. Mitchell Lowe
                                         (the “November 21, 2018 Complaint”). Jackie Tabas and Katherine Rosenberg-Wohl
                                         v. MoviePass Inc., et. al., Case No. 3:18-cv-7087. The November 21, 2018 Complaint alleges,
                                         among other things, breach of contract by MoviePass, failure to disclose certain terms
                                         of service under Section 17602 of the California Business and Professions Code, and violations
                                         of the California Consumers Legal Remedies Act, the California False Advertising Law,
                                         the California Unfair Competition Law and the Racketeer Influenced and Corrupt Organizations
                                         Act. The November 21, 2018 Complaint also alleges claims of quantum meruit and
                                         unjust enrichment and inducement to breach contracts.

 

		(5)	The
                                         Company has received demand letters dated February 23, 2017 and March 9, 2017 on behalf
                                         of certain minority stockholders. There has been no further correspondence.

 

		(6)	The
                                         Company maintains an e-mail address for investors who wish to contact the Company. The
                                         Company has received emails from alleged shareholders complaining about the decline in
                                         the market price of the Common Stock.

 

		(7)	On
                                         December 19, 2018, the Company received a written notice from the Nasdaq Listing Qualifications
                                         Department (the “Staff”) that the Company has not regained compliance with
                                         the minimum bid price requirement for continued listing on The Nasdaq Capital Market
                                         pursuant to Nasdaq Listing Rule 5550(a)(2). As a result, Nasdaq has determined that unless
                                         the Company timely requests an appeal of such determination before the Nasdaq Hearings
                                         Panel (the “Panel”), the Company’s common stock will be scheduled for
                                         delisting from The Nasdaq Capital Market and will be suspended at the opening of business
                                         on December 28, 2018, and a Form 25-NSE will be filed with the Securities and Exchange
                                         Commission, which will remove the Company’s securities from listing and registration
                                         on The Nasdaq Capital Market. In accordance with Nasdaq’s procedures, the Company
                                         appealed the Staff’s determination by requesting a hearing before the Panel (the
                                         “Hearing”) to seek continued listing. This hearing request automatically
                                         stays the suspension of the Company’s securities and the filing of a Form 25-NSE
                                         pending the Panel’s decision. Nasdaq has informed the Company that the Hearing
                                         is scheduled to take place on January 31, 2018.

 

    8

     

    

 

Schedule
3.1(k)

 

Labor
Disputes

 

The
Company and its Subsidiaries have terminated certain employees and certain employees have terminated their employment. Negotiations
over severance and release agreements are ongoing with certain former employees. There can be no assurance that a severance and
release agreement will be reached with each terminated employee, and therefore labor disputes may exist with respect to terminated
employees who do not execute a severance and release agreement.

 

    9

     

    

 

Schedule
3.1(o)

 

Title
to Assets

 

The
Company and its Subsidiaries have incurred the following Liens:

 

	Debtor	 	Secured Party(ies)	 	Filing Jurisdiction	 	Filing Number	 	Filing Date	 	Status
	Company	 	Ionic Ventures LLC	 	SOS Delaware	 	Initial: 2018 4374316*	 	06/26/2018	 	Active
	Company	 	Hudson Bay Master Fund Ltd	 	SOS Delaware	 	Initial: 2018 4374423*	 	06/26/2018	 	Active
	Company	 	Empery Tax Efficient, LP	 	SOS Delaware	 	Initial: 2018 4374506*	 	06/26/2018	 	Active
	Company	 	Empery Tax Efficient II, LP	 	SOS Delaware	 	Initial: 2018 4374571*	 	06/26/2018	 	Active
	Company	 	Empery Asset Master, Ltd	 	SOS Delaware	 	Initial: 2018 4374647*	 	06/26/2018	 	Active
	Company	 	Discover Growth Fund	 	SOS Delaware	 	Initial: 2018 4374662*	 	06/26/2018	 	Active
	Company	 	Alto Opportunity Master Fund, SPC – Segregated Master Portfolio B	 	SOS Delaware	 	Initial: 2018 4374753*	 	06/26/2018	 	Active
	Company	 	Hudson Bay Master Fund Ltd	 	SOS Delaware	 	Initial: 2018 0584710*	 	01/25/2018	 	Active
	Company	 	Hudson Bay Master Fund Ltd	 	SOS Delaware	 	Initial: 2017 7453105*	 	11/09/2017	 	Active
	Company	 	CVT Investments, Inc.	 	SOS Delaware	 	Initial: 2017 7453345*	 	11/09/2017	 	Active
	Company	 	Discover Growth Fund	 	SOS Delaware	 	Initial: 2017 7453725*	 	11/09/2017	 	Active
	Company	 	Empery Asset Master, Ltd	 	SOS Delaware	 	Initial: 2017 7454087*	 	11/09/2017	 	Active
	Company	 	Empery Tax Efficient II, LP	 	SOS Delaware	 	Initial: 2017 7454319*	 	11/09/2017	 	Active
	Company	 	Empery Tax Efficient, LP	 	SOS Delaware	 	Initial: 2017 7454392*	 	11/09/2017	 	Active
	Company	 	Alto Opportunity Master Fund, SPC – Segregated Master Portfolio B	 	SOS Delaware	 	Initial: 2017 7454558*	 	11/09/2017	 	Active
	MoviePass	 	Employment Development Department	 	SOS California	 	Initial: 177620328490	 	12/06/2017	 	Active
	MoviePass	 	Company	 	SOS Delaware	 	Initial: 2017 7861026	 	11/28/2017	 	Active
	MoviePass Films	 	SMC Specialty Finance, LLC	 	SOS Delaware	 	Initial: 2018 7700566	 	11/07/2018	 	Active
	MoviePass Films	 	City National Bank	 	SOS Delaware	 	Initial: 2018 6299503	 	09/12/2018	 	Active
	MoviePass	 	State of California	 	Sacramento County Court (RD), California	 	Initial: 201810220104	 	10/22/2018	 	Active
	MoviePass	 	City of New York	 	New York	 	Initial: 3764255	 	08/28/2018	 	Active
	MoviePass	 	State of California	 	Sacramento County Court (RD), California	 	Initial: 201709070301	 	09/07/2017	 	Active
	MoviePass	 	State of California	 	Sacramento County Court (RD), California	 	Initial: 201707110234	 	07/11/2017	 	Active
	MoviePass	 	West World Media LLC	 	New York Civil Court of the City of New York	 	Initial: CV00768914NY	 	05/22/2014	 	Active
	Georgia Film Fund 79, LLC	 	Screen Actors Guild-American Federation of Television and Radio Artists	 	SOS Delaware	 	Initial: 2018 5862087	 	08/24/2018	 	Active
	Georgia Film Fund 79, LLC	 	City National Bank	 	SOS Delaware	 	Initial: 2018 5114307	 	07/25/2018	 	Active
	10 Minutes Gone, LLC	 	Film Finances, Inc.	 	SOS Delaware	 	Initial: 2018 6405571	 	09/17/2018	 	Active
	10 Minutes Gone, LLC	 	Grindstone Entertainment Group, LLC	 	SOS Delaware	 	Initial: 2018 5975442	 	08/29/2018	 	Active
	10 Minutes Gone, LLC	 	Screen Actors Guild – American Federation of Television and Radio Artists	 	SOS Delaware	 	Initial: 2018 5861998	 	08/24/2018	 	Active
	10 Minutes Gone, LLC 
Ten Minutes Gone, LLC	 	City National Bank	 	SOS Delaware	 	Initial: 2018 5114323 
Amendment: 2018 6264358	 	07/25/2018	 	Active

 

		*	These
Liens were filed against the Company’s interest in certain secured promissory notes issued by the applicable secured party
in favor of the Company (the “Investor Notes”), and secured certain obligations of the Company under convertible promissory
notes issued by the Company to the applicable secured party (the “Convertible Notes”). All of the Investor Notes and
the Convertible Notes have been cancelled. As a result, the Company intends to file a termination statement to terminate these
Liens.

 

In
addition, MoviePass Films and its subsidiaries incur Liens in the ordinary course of their respective businesses for the purposes
of obtaining production financing of their films.

 

    10

     

    

 

Schedule
3.1(r)

 

Transactions
with Affiliates

 

		(1)	On
                                         April 15, 2018, the Company’s Board of Directors authorized the issuance of 2,000
                                         shares of common stock to HMIT, in consideration for a 12-month lockup agreement on all
                                         of HMIT’s shares ending April 15, 2019.

 

		(2)	Since
                                         October 1, 2017, the Company has been paying the rent on an apartment in New York City
                                         for Mr. Farnsworth, a resident of Florida. In 2017, the amount of rent paid totaled $17,550.

 

		(3)	On
                                         August 10, 2017, the Company’s Board of Directors approved the issuance of 2,000
                                         shares of the Company’s common stock to each of Mr. Gadiyaram and Mr. Farnsworth.
                                         The Company’s stockholders approved the issuance of the shares on October 27, 2017.
                                         The shares became fully earned on December 11, 2017, upon the closing of the acquisition
                                         of the majority stake in MoviePass.

 

		(4)	On
                                         January 20, 2017, the Company’s Board of Directors approved individual employee
                                         benefit plans (the “Executive Plans”) for Theodore Farnsworth, Pat
                                         Krishnan and Muralikrishna Gadiyaram. Pursuant to the Executive Plans, the Company has
                                         agreed to issue 1,000 unregistered shares of common stock to each of these individuals
                                         as a bonus for exceptional services provided in connection with the Company’s merger
                                         transaction with Zone. The Company incorporates herein by reference the information included
                                         at Item 1.01 of the Current Report on Form 8-K filed with the Securities and Exchange
                                         Commission on January 23, 2017.

		(5)	In
                                         the fiscal years ended December 31, 2016 and 2015, both the Company and Helios India
                                         received services and/or provided services to subsidiaries of HMIT, including Jayamaruthi
                                         Software Systems Pvt. Ltd., Maruthi Consulting Inc. and Helios and Matheson IT (Bangalore)
                                         Ltd. During the period from January 1, 2017 through April 30, 2017, the Company reimbursed
                                         Maruthi Consulting Inc. for health insurance premiums in the amount of $1,561.37.

 

		(6)	The
                                         Company determined to provide for a reserve in its September 30, 2015 and December 31,
                                         2015 financial statements in the amount of $2.3 million due to an uncertainty relating
                                         to the ability of its former parent, HMIT, to (i) return the security deposit held by
                                         HMIT in connection with a memorandum of understanding entered into in September 2010
                                         and (ii) pay approximately $344,000 in reimbursable expenses and advances pursuant to
                                         a professional service agreement entered into in August 2014. On January 21, 2016, HMIT
                                         became subject to a liquidation order by an Indian court resulting from creditors’
                                         claims against HMIT. On February 15, 2016, the High Court of Judicature at Madras (Civil
                                         Appellate Jurisdiction) issued an order of interim stay of the liquidation order. HMIT
                                         continues to await a decision from the High Court of Judicature relating to this matter.
                                         If HMIT becomes subject to liquidation, the Company would likely not be able to collect
                                         the full amounts reserved by the Company.

 

    11

     

    

 

Schedule
3.1(z)

 

No
Integrated Offerings

 

While
the following offerings are more than six months old, Nasdaq may consider other factors in determining whether such offerings
should be integrated with the current offering:

 

		(1)	On
                                         June 28, 2018, the Company entered into separate June 2018 Amendment and Exchange Agreements
                                         with the holders of certain warrants to purchase shares of Common Stock for the purpose
                                         of exchanging outstanding warrants to purchase an aggregate of 26,609,269 shares of Common
                                         Stock (the “Exchanged Warrants”) for an aggregate of 22,617,879 shares
                                         of Common Stock (collectively, the “Exchange Shares”), based on a
                                         ratio of 0.85 Exchange Shares for each warrant share. As a result, the Exchanged Warrants
                                         have been cancelled. The Company incorporates herein by reference the information included
                                         at Item 1.01 of the Current Report on Form 8-K filed with the Securities and Exchange
                                         Commission on June 29, 2018.

 

		(2)	On
                                         June 26, 2018, pursuant to the Securities Purchase Agreement, dated as of June 21, 2018
                                         (the “June SPA”), by and between the Company and the institutional
                                         investors party to the June SPA, the Company completed the sale and issuance of 20,500
                                         shares of Series A Preferred Stock of the Company and Series B-2 senior convertible notes
                                         in the aggregate principal amount of $164,000,000 (which includes an approximate 15.0%
                                         original issue discount) (the “June Convertible Notes”), for total
                                         consideration consisting of an aggregate cash payment to the Company of $20,500,000 and
                                         secured promissory notes payable by such institutional investors to the Company (the
                                         “Investor Notes”) in the aggregate principal amount of $139,400,000.
                                         The Company incorporates herein by reference the information included at Item 1.01 of
                                         the Current Report on Form 8-K filed with the Securities and Exchange Commission on June
                                         26, 2018. As of the date hereof, all of the June Convertible Notes and the Investor Notes
                                         have been cancelled.

 

    12

     

    

 

Schedule
3.1(aa)

 

Indebtedness

 

		(1)	On
                                         October 4, 2018, pursuant to the October Exchange Agreement, the Company issued to Hudson
                                         Bay Master Fund Ltd. a Senior Note in an aggregate principal amount of approximately
                                         $20.4 million. The Company incorporates herein by reference the information included
                                         at Item 1.01 of, and Exhibit 4.1 to, the Current Report on Form 8-K filed with the Securities
                                         and Exchange Commission on October 4, 2018.

 

		(2)	On
                                         December 18, 2018, pursuant to December 2018 Amendment and Exchange Agreements between
                                         the Company and each of certain institutional investors, the Company issued Series B
                                         Senior Notes to such institutional investors in an aggregate principal amount of approximately
                                         $11.3 million. The Company incorporates herein by reference the information included
                                         at Item 1.01 of, and Exhibit 4.1 to, the Current Report on Form 8-K filed with the Securities
                                         and Exchange Commission on December 18, 2018.

 

		(3)	On
                                         December 11, 2017, the Company issued to MoviePass a subordinated convertible promissory
                                         note in the principal amount of $12 million which will convert automatically, upon the
                                         Company’s receipt of approval from its stockholders in accordance with Nasdaq Listing
                                         Rule 5635, into 16,000 unregistered shares of the Company’s common stock. On December
                                         11, 2017, the Company also issued to MoviePass a promissory note in the principal amount
                                         of $5 million. The Company incorporates by reference the information included at Item
                                         1.01 of the Current Report on Form 8-K filed with the Securities and Exchange Commission
                                         on December 11, 2017.

 

		(4)	On
                                         November 22, 2017, the Company entered into a commercial guaranty in favor of PayPal,
                                         Inc. (“PayPal”) pursuant to which the Company agreed to guarantee
                                         the payment obligations of MoviePass to PayPal under a payment services agreement by
                                         and between PayPal and MoviePass. The Company incorporates by reference the information
                                         included at Item 1.01 of the Current Report on Form 8-K filed with the Securities and
                                         Exchange Commission on November 24, 2017.

 

		(5)	Zone
                                         issued a promissory note to NewSub, dated September 7, 2016, as amended by the Amendment
                                         dated October 25, 2016, in the aggregate principal amount of $1,113,305. In connection
                                         with this indebtedness, a UCC Financing Statement has been filed in Nevada to reflect
                                         NewSub’s security interest in certain collateral of Zone.

 

		(6)	The
                                         Company has guaranteed the payment obligations of MoviePass to salesforce.com under that
                                         certain Master Subscription Agreement by and between salesforce.com and MoviePass in
                                         the aggregate amount of $860,000.

 

		(7)	The
                                         Company has guaranteed the payment obligations of MoviePass to Zuora, Inc. under that
                                         certain Zuora Master Subscription Agreement, dated July 31, 2018, by and between Zuora,
                                         Inc. and MoviePass in the aggregate amount of $500,000.

 

		(8)	The
                                         Company has guaranteed the payment obligations of MoviePass to Worldpay, LLC under that
                                         certain Bank Card Merchant Agreement by and between Worldpay, LLC and MoviePass in the
                                         aggregate amount of $1,200,000.

 

    13

     

    

 

Schedule
4.7

 

Use
of Proceeds

 

The
Company will use approximately $1.2 million of the net proceeds from the sale of the Common Units and Pre-Funded Units to redeem
a portion of outstanding non-convertible senior notes that issued by the Company on October 4, 2018 and December 18, 2018 (the
“Senior Notes”), and the remaining proceeds for general corporate purposes of the Company and its Subsidiaries
and transaction expenses.

 

    14Eaton Vance Corp.

2013 INCENTIVE COMPENSATION NONQUALIFIED
EMPLOYEE STOCK PURCHASE PLAN

October 4, 2013

as Amended and Restated on October 30, 2015
and January 16, 2019

 

The purpose of this
2013 Incentive Compensation Nonqualified Employee Stock Purchase Plan, as amended and restated, (the “Incentive ESPP”)
is to provide employees of Eaton Vance Corp. (the “Company”) and its subsidiaries with opportunities to apply
up to fifty percent (50%) of their Non-Base Compensation (as defined below) to purchase shares of the Company’s non-voting
common stock (the “Non-Voting Common Stock”) in accordance with the terms hereof. Either authorized and unissued
shares of Non-Voting Common Stock or issued shares of Non-Voting Common Stock heretofore or hereafter reacquired by the Company
may be issued under the Incentive ESPP. Nine hundred thousand (900,000) shares of Non-Voting Common Stock in the aggregate have
been approved for this purpose, subject to any adjustment pursuant to Section 13 hereof.

1.                 
Administration. The Incentive ESPP will be administered by the Company’s Board of Directors (the “Board”)
or by a Committee appointed by the Board (the “Committee”) (See Exhibit A). The Board or the Committee
has authority to make rules and regulations for the administration of the Incentive ESPP and its interpretation and decisions with
regard thereto shall be final and conclusive.

2.                 
Eligibility. Any employee of the Company or any subsidiary of the Company who receives Non-Base Compensation is eligible
to elect to participate in any one or more of the offerings of Options (as defined in Section 7) to purchase Non-Voting
Common Stock under the Incentive ESPP. The Company retains the discretion to determine which eligible employees may participate
in an offering.

3.                 
Offerings. The Company will make one or more offerings (“Offerings”) to eligible employees who
elect to purchase shares of Non-Voting Common Stock under this Incentive ESPP. Offerings will begin on or about each November 16,
February 16, May 16 and August 16, or the first business day thereafter (the “Offering Commencement Dates”),
with the actual Offering Commencement Date for each Plan Period (as defined below) to be communicated to eligible employees no
later than ten (10) days prior to such Offering Commencement Date. Each Offering Commencement Date will begin a three (3) month
period (a “Plan Period”). The Board or the Committee may, at its discretion, choose a different commencement
date for Offerings under the Incentive ESPP.

4.                 
Participation. An eligible employee may participate in any Offering by completing and submitting an online election
form with the Company’s authorized agent or otherwise completing and forwarding such other written or electronic election
form approved by the Company to the employee’s appropriate payroll office, in either case, by the tenth (10th)
day of the month in which the applicable Offering Commencement Date occurs and complying with

    	 

    	 

    

such other administrative procedures
as the Board or the Committee shall establish from time to time. The participating employee will elect on such election form to
apply any whole percentage from a minimum of five percent (5%) to a maximum of fifty percent (50%) of the Non-Base Compensation
the employee will receive during the following Plan Period (such amount, the “Elected Amount”) to purchase shares of
Non-Voting Common Stock. Unless an employee withdraws from the Incentive ESPP in accordance with Section 6 hereof, the employee’s
Elected Amount will remain the same for future Offerings under the Incentive ESPP as long as the Incentive ESPP remains in effect.
The term “Non-Base Compensation” means any compensation other than (a) current base salary, (b) retroactive base salary,
(c) overtime, (d) dividends on unvested restricted stock and (e) vacation payouts and shall include, without limitation, annual
cash incentives awarded by the Company, including cash amounts paid in settlement of incentive awards under the Eaton Vance Corp.
Deferred Alpha Incentive Plan (and similar incentive plans), bonuses known as pre-tax incentive bonuses and annual sales bonuses,
as well as monthly cash incentive bonuses and commissions.

5.                 
Interest. Interest will not be paid on any portion of any Elected Amount to be applied to the purchase of shares
of Non-Voting Common Stock pursuant to the terms hereof, except to the extent that the Board or the Committee, in its sole
discretion, elects to credit an employee with interest on the employee’s Elected Amount at such rate as it may from time
to time determine.

6.                 
Withdrawal. An employee who has elected to participate under the Incentive ESPP may withdraw his or her election
to participate in an Offering by giving notice to the Company or its authorized agent at any time prior to the close of business
on the tenth (10th) day prior to the applicable Exercise Date (as defined below). The portion of any Elected Amount
withheld for the purchase of shares of Non-Voting Common Stock and not used for the purchase of such shares shall be returned without
interest. The employee may participate in any subsequent Offering in accordance with terms and conditions established by the Board
or the Committee.

7.       Purchase
of Shares.

(a)Number of Shares.On
the Offering Commencement Date of each Plan Period, the Company will grant to each eligible employee who is then a participant
in the Incentive ESPP an option (an “Option”) to purchase on the last business day of such Plan Period (the
“Exercise Date”) at the applicable purchase price (the “Option Price”) up to a whole number
of shares of Non-Voting Common Stock determined by dividing the Elected Amount by Option Price.

(b)Option Price.The Option
Price will be ninety percent (90%) of the lesser of the closing price of the Non-Voting Common Stock on (i) the Offering Commencement
Date or (ii) the Exercise Date. The closing price shall be the closing price (for the primary trading session) on any national
securities exchange on which the Non-Voting Common Stock is listed. If no sales of Non-Voting Common Stock were made on such a
day, the price of the Non-Voting Common Stock shall be the reported price for the most recent previous day on which sales were
made.

 

    	 

    	 

    

(c)Exercise
of Option.Each employee who continues to be a participant in the Incentive ESPP on the Exercise Date shall be deemed to
have exercised his Option at the Option Price on such date and shall be deemed to have purchased from the Company the number of
whole shares of Non-Voting Common Stock reserved for the purpose of the Incentive ESPP that his or her Elected Amount will pay
for.

(d)Return
of Unused Elected Amount. Any balance of the Elected Amount representing a fractional share interest will be carried forward
for the following Offering unless the participating employee elects not to participate in the following Offering, in which case
the balance will be returned to the participating employee without interest following the Exercise Date.

8.       Issuance
of Shares. Shares of Non-Voting Common Stock purchased under the Incentive ESPP will held in book entry in an account at the
brokerage firm designated by the Company, which account may be in the name of the employee or in the name of the employee and another
person of legal age as joint tenants with rights of survivorship.

9.       Rights
on Termination of Employment. If a participating employee's employment ends before the last business day of a Plan Period,
no portion of such employee’s Elected Amount shall be taken from any pay then due and owing to the employee and the portion
of any Elected Amount then held by the Company shall be paid to the employee. In the event of the employee’s death before
the last business day of a Plan Period, the Company shall, upon notification of such death, pay any portion of the Elected Amount
then held by the Company (a) to such beneficiary or beneficiaries as the employee has designated in writing during his or
her lifetime to the Company (each a “Designated Beneficiary”); (b) if there is no such Designated Beneficiary,
to his or her surviving spouse; (c) if none, to the executor or administrator of the employee’s estate; or (d) if no such
executor or administrator has been appointed to the knowledge of the Company, to such other person(s) as the Company may, in its
discretion, designate.

10.       Optionees
Not Stockholders. Neither the granting of an Option to an employee nor the deductions from his or her Non-Base Compensation
shall make such employee a stockholder of the shares of Non-Voting Common Stock covered by an Option under this Incentive ESPP
until he or she has purchased and received such shares.

11.       Options
Not Transferable. Options under this Incentive ESPP are not transferable by a participating employee other than by will or
the laws of descent and distribution, and are exercisable during the employee’s lifetime only by the employee.

12.       Application
of Funds. All funds received or held by the Company under this Incentive ESPP may be combined with other corporate funds and
may be used for any corporate purpose, unless expressly forbidden under the laws of the country of domicile of a particular subsidiary.

13.       Adjustment
for Changes in Non-Voting Common Stock and Certain Other Events.

(a)Changes
in Capitalization. In the event of any stock split, reverse stock

    	 

    	 

    

split, stock dividend, recapitalization,
combination of shares, reclassification of shares, spin-off or other similar change in capitalization or event, or any dividend
or distribution to holders of Non-Voting Common Stock other than an ordinary cash dividend, (i) the number and class of securities
available under this Incentive ESPP and (ii) the Option Price shall be equitably adjusted to the extent determined by the Board
or the Committee.

(b)       Reorganization
Events.

(i)       Definition.
A “Reorganization Event” shall mean: (A) any merger or consolidation of the Company with or into another entity as
a result of which all of the Non-Voting Common Stock of the Company is converted into or exchanged for the right to receive cash,
securities or other property or is cancelled, (B) any transfer or disposition of all of the Non-Voting Common Stock of the Company
for cash, securities or other property pursuant to a share exchange or other transaction or (C) any liquidation or dissolution
of the Company.

 

(ii)       Consequences
of a Reorganization Event on Options. In connection with a Reorganization Event, the Board or the Committee may take any one
or more of the following actions as to outstanding Options on such terms as the Board or the Committee determines: (A) provide
that Options shall be assumed, or substantially equivalent Options shall be substituted, by the acquiring or succeeding corporation
(or an affiliate thereof), (B) upon written notice to employees, provide that all outstanding Options will be terminated immediately
prior to the consummation of such Reorganization Event and that all such outstanding Options will become exercisable to the extent
of the Elected Amount held by the Company as of a date specified by the Board or the Committee in such notice, which date shall
not be less than ten (10) days preceding the effective date of the Reorganization Event, (C) upon written notice to employees,
provide that all outstanding Options will be cancelled as of a date prior to the effective date of the Reorganization Event and
that any portion of the participating employee’s Elected Amount held by the Company will be returned to participating employees
on such date, (D) in the event of a Reorganization Event under the terms of which holders of Non-Voting Common Stock will
receive upon consummation thereof a cash payment for each share surrendered in the Reorganization Event (the “Acquisition
Price”), change the last day of the Plan Period to be the date of the consummation of the Reorganization Event and make
or provide for a cash payment to each employee equal to (1) (I) the Acquisition Price times (II) the number of shares of Non-Voting
Common Stock that the employee’s Elected Amount could purchase at the Option Price, where the Acquisition Price is treated
as the fair market value of the Non-Voting Common Stock on the last day of the applicable Plan Period for purposes of determining
the Option Price under Section 7(b) hereof, and where the number of shares that could be purchased is determined in accordance
with Section 7(a) hereof, minus (2) the result of multiplying such number of shares by such Option Price, (E) provide
that, in connection with a liquidation or dissolution of the Company, Options shall convert into the right to receive liquidation
proceeds (net of the Option Price thereof) and (F) any combination of the foregoing.

 

For purposes of clause
(A) above, an Option shall be considered assumed if, following consummation of the Reorganization Event, the Option confers the
right to purchase, for each share of Non-Voting Common Stock subject to the Option immediately prior to the consummation of the
Reorganization Event, the consideration (whether cash, securities or other property) received as a result of the Reorganization
Event by holders of Non-Voting Common

    	 

    	 

    

Stock for each share of Non-Voting Common
Stock held immediately prior to the consummation of the Reorganization Event (and if holders were offered a choice of consideration,
the type of consideration chosen by the holders of a majority of the outstanding shares of Non-Voting Common Stock); provided,
however, that if the consideration received as a result of the Reorganization Event is not solely common stock of the acquiring
or succeeding corporation (or an affiliate thereof), the Company may, with the consent of the acquiring or succeeding corporation,
provide for the consideration to be received upon the exercise of Options to consist solely of such number of shares of common
stock of the acquiring or succeeding corporation (or an affiliate thereof) that the Board determines to be equivalent in value
(as of the date of such determination or another date specified by the Board) to the per share consideration received by holders
of outstanding shares of Non-Voting Common Stock as a result of the Reorganization Event.

14.       Amendments
to or Termination of the Incentive ESPP. The Board may at any time, and from time to time, without notice, amend, modify, suspend
or terminate this Incentive ESPP, provided however that the then-existing rights of all participating employee’s shall not
be adversely affected thereby. For the avoidance of doubt, participating employees shall not be adversely affected by any amendment,
modification, suspension or termination of this Incentive ESPP as long as the participating employees may receive a refund on any
amounts otherwise allocable to shares of Non-Voting Common Stock not purchased.

15.       Governmental
Regulations. The Company’s obligation to sell and deliver Non-Voting Common Stock under this Incentive ESPP is subject
to listing on a national stock exchange (to the extent the Non-Voting Common Stock is then so listed or quoted) and the approval
of all governmental authorities required in connection with the authorization, issuance or sale of such stock.

16.       Governing
Law. The Incentive ESPP shall be governed by Maryland law except to the extent that such law is preempted by federal law.

17.       Issuance
of Shares. Shares may be issued upon exercise of an Option from authorized but unissued Non-Voting Common Stock, from shares
held in the treasury of the Company, or from any other proper source.

18.       Restriction
on Sale of Shares. No participating employee shall be permitted to sell any shares of Non-Voting Common Stock purchased under
the Incentive ESPP until the earliest of (a) the first anniversary of the Exercise Date on which the shares were purchased; (b)
the participating employee’s death; and (c) the date on which the participating employee presents proof satisfactory to the
Company that he or she has either become disabled within the meaning of Section 22(e)(3) of the Code or needs such shares on account
of Hardship. For purposes of the Incentive ESPP, “Hardship” shall mean an immediate and heavy financial need which
may be met only by the sale of shares of Non-Voting Common Stock, as determined by the Board or Committee in accordance with nondiscriminatory
standards.

19.       Withholding.
Each participating employee shall, no later than the date of the event creating the tax liability, make provision satisfactory
to the Board or Committee for payment of any taxes required by law to be withheld in connection with any transaction related

    	 

    	 

    

to Options granted to or shares acquired
by such employee pursuant to the Incentive ESPP. The Company may, to the extent permitted by law, deduct any such taxes from any
payment of any kind otherwise due to an employee.

20.       Effective
Date. The Incentive ESPP initially took effect on October 4, 2013. It was initially approved by the Board of Directors on October
3, 2013 and approved by the Voting Stockholders on October 4, 2013. The Incentive ESPP, as amended and restated, shall take effect
on January 16, 2019, the date it was approved by the Voting Stockholders; it was approved by the Board of Directors on January
10, 2019.

 

 

 

    	 

    	 

    

EXHIBIT A

 

Initial actions taken by the Board, and approved by the Voting Stockholders,
effective October 4, 2013.

 

Pursuant to Section 1 of the Incentive ESPP, the Board appoints
the Executive Management Committee to administer the Incentive ESPP.

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