Document:

Exhibit
10.1

 

SECURITIES
PURCHASE AGREEMENT

 

This Securities Purchase
Agreement (this “Agreement”) is dated as of December ____, 2015, between Document Security Systems, Inc., a
New York corporation (the “Company”), and the purchasers identified on the signature page hereto (including
their respective successors and assigns, collectively the “Purchasers” and individually a “Purchaser”).

 

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 the Purchasers, and the
Purchasers individually desire 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 the Purchasers agree as follows:

 

ARTICLE I.

DEFINITIONS

 

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

 

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

 

“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, collectively, the Initial Closing and any Subsequent Closing.

 

“Closing
Date” means, collectively, the Initial Closing Date and any Subsequent Closing Date.

 

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

 

“Common
Stock” means the common stock of the Company, par value $0.02 per share, and any other class of securities into which
such securities may hereafter be reclassified or changed.

 

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“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.

 

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

 

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

 

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

 

“Initial
Closing” means the closing of the purchase and sale of the Shares and Warrants pursuant to Section 2.1(a).

 

“Initial
Closing Date” means the Trading Day on which all of the Transaction Documents required pursuant to Section 2.1(a) have
been executed and delivered by the applicable parties thereto, and all conditions precedent to (i) the Purchasers’ obligations
to pay their respective Subscription Amounts for the Initial Closing, and (ii) the Company’s obligations to deliver the Shares
and Warrants for the Initial Closing, in each case, have been satisfied or waived, but in no event later than the third Trading
Day following the date hereof.

 

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

 

“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(k).

 

“Per
Share Purchase Price” equals $0.22, 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.

 

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

 

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

 

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“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 the Purchasers at the Initial Closing for the issuance of the Shares and Warrants.

 

“Registration
Statement” means the effective registration statement with Commission file No. 333-191704 which registers the sale of
the Shares, the Warrants and the shares of Common Stock underlying the Warrants to the Purchasers.

 

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

 

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

 

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

 

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

 

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

 

“Shares”
means the shares of Common Stock issued or issuable to the Purchasers 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 the location and/or reservation of borrowable shares of Common Stock).

 

“Subscription
Amount” means the amount to be paid for Shares and Warrants purchased hereunder as specified below the respective 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.

 

“Subsequent
Closing” means a closing of the purchase and sale of the Shares and Warrants pursuant to Section 2.1(b).

 

“Subsequent
Closing Date” means the Trading Day on which all of the Transaction Documents required pursuant to Section 2.1(b) have
been executed and delivered by the applicable parties thereto, and all conditions precedent to (i) the Purchasers’ obligations
to pay their respective Subscription Amounts for a Subsequent Closing, and (ii) the Company’s obligations to deliver the
Shares and Warrants for such Subsequent Closing, in each case, have been satisfied or waived, but in no event later than the third
Trading Day following the full execution by all parties thereto of this Agreement for such Subsequent Closing.

 

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“Subsidiary”
means any subsidiary of the Company 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 MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New
York Stock Exchange or the OTC Bulletin Board (or any successors to any of the foregoing).

 

“Transaction
Documents” means this Agreement and any other documents or agreements executed in connection with the transactions contemplated
hereunder.

 

“Transfer
Agent” means American Stock Transfer and Trust Company, LLC, the current transfer agent of the Company, and any successor
transfer agent of the Company.

 

“Warrants”
means the warrants to purchase Common Stock issued or issuable to the Purchasers pursuant to this Agreement, which shall be in
the amount of 20% of the number of Shares issued to Purchasers, with a four-year term (from the date they first become exercisable)
and an exercise price of $0.40 per share, in the form of Exhibit A attached hereto.

 

ARTICLE II.

PURCHASE AND SALE

 

2.1         Closings.

 

(a)          Initial
Closing. On the Initial Closing Date, upon the terms and subject to the conditions set forth herein, substantially concurrent
with the execution and delivery of this Agreement by the parties hereto, the Company agrees to sell, and each Purchaser agrees
to purchase, that number of Shares and Warrants equaling its respective Subscription Amount. Each Purchaser shall deliver to the
Company, via wire transfer or a check, immediately available funds equal to such Purchaser’s Subscription Amount as set forth
on the signature page hereto executed by the Purchaser and the Company shall deliver to each Purchaser its respective Shares and
Warrants, and the Company and each Purchaser shall deliver the other items set forth in Section 2.2 deliverable at each Closing.
Upon satisfaction of the covenants and conditions set forth in Sections 2.2 and 2.3, the Initial Closing shall occur at such location
as the parties shall mutually agree, including the delivery to the Company of immediately available funds comprising the aggregate
Subscription Amounts for the Initial Closing.

 

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(b)          Subsequent
Closing. On the Subsequent Closing Date, upon the terms and subject to the conditions set forth herein, substantially concurrent
with the execution and delivery of this Agreement by the parties hereto, the Company agrees to sell, and each Purchaser agrees
to purchase, that number of Shares and Warrants equaling its respective Subscription Amount. Each Purchaser shall deliver to the
Company, via wire transfer or a check, immediately available funds equal to such Purchaser’s Subscription Amount as set
forth on the signature page hereto executed by the Purchaser and the Company shall deliver to each Purchaser its respective Shares
and Warrants, and the Company and each Purchaser shall deliver the other items set forth in Section 2.2 deliverable at each Closing.
Upon satisfaction of the covenants and conditions set forth in Sections 2.2 and 2.3, the Subsequent Closing shall occur at such
location as the parties shall mutually agree, including the delivery to the Company of immediately available funds comprising
the aggregate Subscription Amounts for such Subsequent Closing.

 

2.2         Deliveries.

 

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

 

(i)          this
Agreement duly executed by the Company; and

 

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

 

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

 

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

 

(ii)         the
Purchaser’s Subscription Amount by wire transfer or check to the account specified in writing by the Company.

 

2.3         Closing
Conditions. 

 

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

 

(i)          the
accuracy in all material respects on the applicable Closing Date of the representations and warranties of the Purchaser 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 applicable 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
obligations of each Purchaser hereunder in connection with each Closing are subject to the following conditions being met:

 

(i)          the
accuracy in all material respects when made and on the applicable Closing Date of the representations and warranties of the Company
contained herein (unless as of a specific date therein);

 

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

 

(iii)        the
Shares shall have been approved for listing on the Trading Market;

 

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

 

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

 

(vi)        from
the date hereof to the applicable 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 applicable 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 a Purchaser, makes it impracticable or inadvisable to purchase its respective
Shares and Warrants at a Closing.

 

ARTICLE III.

REPRESENTATIONS AND WARRANTIES

 

3.1         Representations
and Warranties of the Company. Except as set forth or incorporated by reference into the Prospectus Supplement, or in a disclosure
schedule delivered by the Company to each Purchaser prior to the execution of this Agreement, both of which shall be deemed a part
hereof and shall qualify any representation or otherwise made herein to the extent of the disclosure contained therein, the Company
hereby makes the following representations and warranties to each Purchaser:

 

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

 

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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 or default of any of the provisions
of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents. Each of the Company
and the Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in
each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except
where the failure to be so qualified or in good standing, as the case may be, could not have or reasonably be expected to result
in: (i) a material adverse effect on the legality, validity or enforceability of any Transaction Document, (ii) a material adverse
effect on the results of operations, assets, business, prospects or condition (financial or otherwise) of the Company and the Subsidiaries,
taken as a whole, or (iii) a material adverse effect on the Company’s ability to perform in any material respect on a timely
basis its obligations under any Transaction Document (any of (i), (ii) or (iii), a “Material Adverse Effect”)
and no Proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or
curtail such power and authority or qualification.

 

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

 

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(d)          No
Conflicts. The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents to
which it is a party, the issuance and sale of the Shares and Warrants 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,
acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other
instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary
is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, or (iii) subject to the Required
Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction
of any court or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities
laws and regulations), or by which any property or asset of the Company or a Subsidiary is bound or affected; except in the case
of each of clauses (ii) and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.

 

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

 

(f)          Issuance
of the Shares; Registration. The Shares are duly authorized and, when issued and paid for in accordance with the applicable
Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the
Company. The Company has reserved from its duly authorized capital stock the maximum number of shares of Common Stock issuable
pursuant to this Agreement and the exercise of the Warrants’. The Company has prepared and filed the Registration Statement
in conformity with the requirements of the Securities Act, which became effective on November 1, 2013 (the “Effective
Date”), including the Prospectus, and such amendments and supplements thereto as may have been required to the date of
this Agreement. The Registration Statement is effective under the Securities Act and no stop order preventing or suspending the
effectiveness of the Registration Statement or suspending or preventing the use of the Prospectus has been issued by the Commission
and no proceedings for that purpose have been instituted or, to the knowledge of the Company, are threatened by the Commission.
The Company, if required by the rules and regulations of the Commission, shall file the Prospectus with the Commission pursuant
to Rule 424(b). At the time the Registration Statement and any amendments thereto became effective, at the date of this Agreement
and at each 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
each 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 light of the circumstances under which they were made, not misleading.

 

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(g)          Capitalization.
The Company has not issued any capital stock since its most recently filed periodic report under the Exchange Act, other than pursuant
to the exercise of employee stock options under the Company’s stock option plans, the issuance of shares of Common Stock
to employees pursuant to the Company’s employee stock purchase plans and pursuant to the conversion and/or exercise of Common
Stock Equivalents outstanding as of the date of the most recently filed periodic report under the Exchange Act. No Person has any
right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated
by the Transaction Documents except for any such rights that have been waived. Except as a result of the purchase and sale of the
Shares and Warrants or payment of the contractor invoices in whole or in part in shares in the ordinary course of business, 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 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. The issuance and sale
of the Shares and Warrants will not obligate the Company 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. All of the outstanding shares of capital stock of the Company are duly authorized,
validly issued, fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and none
of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities.
No further approval or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale
of the Shares and Warrants. 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 twelve months 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)          S-3
Eligibility. The Company meets the requirements for use of Form S-3 under the Securities Act under the transaction requirements
set forth in General Instruction 1.B.6 of such form.

 

(j)          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), or (ii) 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.

 

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

 

(m)          Intellectual
Property. The Company and its Subsidiaries own or possess adequate rights to use all patents, patent applications, patent rights,
licenses, inventions, copyrights, know-how (including trade secrets and other unpatented and/or unpatentable proprietary or confidential
information, systems or procedures), trademarks, trademark registrations, service marks, service mark registrations, trade names,
mask work rights and other intellectual property necessary to carry on the business now operated by it or proposed to be operated
by it as described in the SEC Reports (collectively, “Intellectual Property”), except where the lack of such
ownership or rights to use would not have a Material Adverse Effect. There is no litigation or other proceeding pending or, to
the Company’s knowledge, threatened and no claims are presently being asserted by any third party challenging or questioning
the ownership, validity, or enforceability of the Company's right to use or own any Intellectual Property or asserting that the
use of the Company’s Intellectual Property by the Company or the operation of the Company’s business infringes upon
or misappropriates the Intellectual Property of any third party, and the Company is unaware of any facts which would form a reasonable
basis for any such claim. The Company is not otherwise aware of any infringement of or conflict with asserted rights of others
with respect to any of the Company's Intellectual Property or the operation of the Company’s business. The Company and its
subsidiaries have taken all steps necessary to perfect its ownership of and interest in the Intellectual Property.

 

(n)          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 $2,000,000. Neither the Company nor any Subsidiary
has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or
to obtain similar coverage from similar insurers as may be necessary to continue its business without a significant increase in
cost.

 

(o)          Certain
Fees. 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 Purchaser 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.

 

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(p)          Investment
Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Shares and Warrants,
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.

 

(q)          Listing
and Maintenance Requirements. The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the
Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration
of the Common Stock under the Exchange Act nor has the Company received any notification that the Commission is contemplating terminating
such registration. The Company has not, in the 12 months preceding the date hereof, received notice from any Trading Market on
which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance with the listing or
maintenance requirements of such Trading Market. The Company is, and has no reason to believe that it will not in the foreseeable
future continue to be, in compliance with all such listing and maintenance requirements.

 

(r)          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 a Purchaser or its 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 each Purchaser 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 a Purchaser regarding the Company
and its Subsidiaries, their respective businesses and the transactions contemplated hereby is true and correct and does not contain
any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein,
in light of the circumstances under which they were made, not misleading. The Company acknowledges and agrees that no Purchaser
makes and has not made any representations or warranties with respect to the transactions contemplated hereby other than those
specifically set forth in Section 3.2 hereof.

 

(s)          No
Integrated Offering. Assuming the accuracy of each Purchaser’s representations and warranties set forth in Section 3.2,
neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made
any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering
of the Shares and Warrants 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.

 

    	 	12	 

     

    

 

(t)          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.

 

(u)          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.

 

(v)         Accountants.
To the knowledge and belief of the Company, the Company’s accounting firm (i) is a registered public accounting firm as required
by the Exchange Act, and (ii) has expressed, in the Company’s most recent Form 10-K, its opinion with respect to the financial
statements included in the Company’s Annual Report for the fiscal year ended December 31, 2014.        

 

(w)          
Acknowledgment Regarding Each Purchaser’s Purchase of Shares and Warrants. The Company acknowledges and agrees that
each Purchaser 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 each Purchaser is not 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 a Purchaser or any of its representatives or agents in connection with the Transaction Documents
and the transactions contemplated thereby is merely incidental to such Purchaser’s purchase of the Shares and Warrants. 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.

 

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

 

    	 	13	 

     

    

 

(aa) 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”).

 

(bb) 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, suit 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 Each Purchaser. Each Purchaser hereby represents and warrants as of the date hereof and as of each Closing
Date to the Company as follows (unless as of a specific date therein):

 

(a)          Organization;
Authority. The 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 this Agreement and the
other Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of
this Agreement and performance by the Purchaser of the transactions contemplated by this Agreement have been duly authorized by
all necessary corporate, partnership, limited liability company or similar action, as applicable, on the part of the Purchaser.
Each Transaction Document to which it is a party has been duly executed by the Purchaser, and when delivered by the Purchaser in
accordance with the terms hereof, will constitute the valid and legally binding obligation of the 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. The Purchaser is acquiring the Shares and Warrants as principal for its own account and has no direct or indirect
arrangement or understandings with any other persons to distribute or regarding the distribution of such Shares and Warrants (this
representation and warranty not limiting the Purchaser’s right to sell the Shares and Warrants pursuant to the Registration
Statement or otherwise in compliance with applicable federal and state securities laws). The Purchaser is acquiring the Shares
and Warrants hereunder in the ordinary course of its business.

 

    	 	14	 

     

    

 

(c)          Purchaser
Status. At the time the Purchaser was offered the Shares and Warrants, it was, and as of the applicable Closing Date, it will
be an “accredited investor” as defined in Rule 501(a) under the Securities Act.

 

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

 

(e)          Certain
Transactions and Confidentiality. Other than consummating the transactions contemplated hereunder, the Purchaser has not, nor
has any Person acting on behalf of or pursuant to any understanding with the 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 the 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 the Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio
managers managing other portions of the Purchaser’s assets, the representation set forth above shall only apply with respect
to the portion of assets managed by the portfolio manager that made the investment decision to purchase the Shares and Warrants
covered by this Agreement. Other than to other Persons party to this Agreement, the 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 avoidance of doubt, nothing contained herein shall constitute a representation or warranty, or preclude any
actions, with respect to the identification of the availability of, or securing of, available shares to borrow in order to effect
Short Sales or similar transactions in the future.

 

(f)          Access
to Information. The Purchaser acknowledges that it has had the opportunity to review the Transaction Documents (including all
exhibits and schedules thereto) and the SEC Reports and has been afforded (i) the opportunity to ask such questions as it has deemed
necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the offering of
the Shares and Warrants and the merits and risks of investing in the Shares and Warrants; (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.  

 

The Company acknowledges
and agrees that the representations contained in Section 3.2 shall not modify, amend or affect a 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.

 

    	 	15	 

     

    

 

ARTICLE IV.

OTHER AGREEMENTS OF THE PARTIES

 

4.1           Furnishing
of Information. Until the time that the Purchaser owns no Shares, the Company covenants to timely file (or obtain extensions
in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after the date
hereof pursuant to the Exchange Act.

 

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

 

4.3           Securities
Laws Disclosure; Publicity. The Company shall file a Current Report on Form 8-K, including descriptions of the Transaction
Documents or including the Transaction Documents as exhibits thereto, with the Commission within the time required by the Exchange
Act. The Company and each Purchaser shall consult with each other in issuing any press releases with respect to the transactions
contemplated hereby. Notwithstanding the foregoing, the Company shall not publicly disclose the name of a Purchaser, or include
the name of a 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 a Purchaser with prior notice of such disclosure permitted under this clause (b).

 

4.4           Shareholder
Rights Plan. No claim will be made or enforced by the Company or, with the consent of the Company, any other Person, that a
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 a Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue of receiving Shares and
Warrants under the Transaction Documents or under any other agreement between the Company and a Purchaser.

 

4.5           Non-Public
Information. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents,
the Company covenants and agrees that neither it, nor any other Person acting on its behalf will provide a Purchaser or its agents
or counsel with any information that the Company believes constitutes material non-public information, unless prior thereto such
Purchaser shall have entered into a written agreement with the Company regarding the confidentiality and use of such information.
The Company understands and confirms that a Purchaser shall be relying on the foregoing covenant in effecting transactions in securities
of the Company.

 

    	 	16	 

     

    

 

4.6           Use
of Proceeds. Except as set forth in the Prospectus Supplement, the Company shall use the net proceeds from the sale of the
Shares hereunder for working capital purposes and shall not use such proceeds: (a) for the 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.

 

4.7           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 the issuance of shares of Common Stock upon the exercise of the Warrants.

 

4.8           Listing
of Common Stock. The Company hereby agrees to use best efforts to maintain the listing or quotation of the Common Stock on
the Trading Market on which it is currently listed. The Company further agrees, if the Company applies to have the Common Stock
traded on any other Trading Market, it will then use best efforts to include in such application all of the Shares (including shares
of Common Stock issuable upon the exercise of the Warrants), and will take such other action as is necessary to cause all of the
Shares to be listed or quoted on such other Trading Market as promptly as possible. The Company will then take all action reasonably
necessary to continue the listing and trading of its Common Stock on a Trading Market and will comply in all respects with the
Company’s reporting, filing and other obligations under the bylaws or rules of the Trading Market.

 

4.9           
Certain Transactions and Confidentiality. The Purchaser covenants that neither it nor any Affiliate acting on its behalf
or pursuant to any understanding with it will execute any purchases or sales, including Short Sales of any of the Company’s
securities during the period commencing with the execution of this Agreement and ending at such time that the transactions contemplated
by this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.3. 
Each Purchaser covenants that until such time as the transactions contemplated by this Agreement are publicly disclosed
by the Company pursuant to the initial press release as described in Section 4.3, the Purchaser will maintain the confidentiality
of the existence and terms of this transaction.  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 4.3, (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 4.3, and (iii) no
Purchaser shall have any duty of confidentiality to the Company or its Subsidiaries after the issuance of the initial press release
as described in Section 4.3.  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 Shares and Warrants covered by this Agreement.

 

    	 	17	 

     

    

 

ARTICLE V.

MISCELLANEOUS

 

5.1           Termination. 
This Agreement may be terminated by any Purchaser, or terminated by the Company, by written notice to the other parties, if the
Initial Closing and any Subsequent Closing have not been consummated without breach hereof by the terminating party on or before
December 31, 2015; provided, however, that no such termination will affect the right of any party to sue for any
breach by any other party (or parties).

 

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

 

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, with confirmation of delivery, at the facsimile number 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, with confirmation of delivery, at the facsimile number 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) upon delivery
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.

 

5.5           Amendments;
Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed,
in the case of an amendment, by the Company and each Purchaser or, in the case of a waiver, by the party against whom enforcement
of any such waived provision is sought. 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.

 

    	 	18	 

     

    

 

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 respective 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). A Purchaser may assign any or all of its rights under this Agreement to any Person to
whom the Purchaser assigns or transfers any Shares or Warrants, provided that such transferee agrees in writing to be bound, with
respect to the transferred Shares or Warrants, by the provisions of the Transaction Documents that apply to such Purchaser.

 

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

 

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 suit, action
or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding
is 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 suit, action or proceeding by mailing a copy thereof via registered or certified mail
or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement
and agrees that such service shall constitute good and sufficient service of process and notice thereof, effective upon receipt.
Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

 

5.10         Survival.
The representations and warranties contained herein shall survive all Closings and the delivery of the Shares and Warrants.

 

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.

 

    	 	19	 

     

    

 

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

 

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

 

5.14         Remedies.
In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each Purchaser
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.

 

5.15         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.

 

5.16         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.

 

5.17         WAIVER
OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ONE PARTY AGAINST THE 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. 

 

    	 	20	 

     

    

 

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.

	

         
	 
	DOCUMENT SECURITY
        SYSTEMS, INC.	Address for Notice:
	 	First Federal Plaza, Suite 1525
	 	28 East Main Street
	 	Rochester, NY 14614
	By:	 	 	Fax: (585) 325-2977
	 	Name:	 
	 	Title:	 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK;

SIGNATURE PAGE FOR PURCHASERS FOLLOWS]

 

    	 	21	 

     

    

 

[PURCHASER SIGNATURE PAGE TO SECURITIES
PURCHASE AGREEMENT]

 

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

 

Name of Purchaser: ___________________________________________________________________

 

Signature of Authorized Signatory of Purchaser: ____________________________________________

 

Name of Authorized Signatory: __________________________________________________________

 

Title of Authorized Signatory: ___________________________________________________________

 

Email Address of Authorized Signatory:____________________________________________________

 

Facsimile Number of Authorized Signatory: ____________________________________________________

 

Address for Notice to Purchaser:

 

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

 

Subscription Amount: $_________________

 

Shares: _________________

 

Warrants: _________________ (20% of number of Shares)

 

Social Security Number: _______________________

 

    	 	22	 

     

    

 

EXHIBIT A

 

Form of Warrant

 

    	 	23EX-10.1

 Exhibit 10.1 

Execution Copy 

AMENDMENT No. 2 TO CREDIT AGREEMENT 

This AMENDMENT No. 2 (this “Second Amendment”), dated November 24, 2015, to the Credit Agreement referred to below
by and among Tallgrass Energy Partners, LP, a Delaware limited partnership (the “Borrower”), the other Loan Parties party hereto (collectively, the “Grantors”), the Lenders party hereto, the Issuing Banks party
hereto, the Swing Line Lenders party hereto, and Barclays Bank PLC, as administrative agent (in such capacity, the “Administrative Agent”) collateral agent (in such capacity, the “Collateral Agent”). 

RECITALS 
 WHEREAS, the
Borrower, the several Lenders parties thereto, the Issuing Banks party thereto, the Swing Line Lenders party thereto and the Administrative Agent and Collateral Agent have entered into that certain Credit Agreement, dated as of May 17, 2013, as
amended by Amendment No. 1 to Credit Agreement, dated as of June 25, 2014, among the Borrower, the several Lenders party thereto, the Issuing Banks party thereto, the Swing Line Lenders party thereto and the Administrative Agent and
Collateral Agent (together with the exhibits and schedules attached thereto, as amended, restated, supplemented or otherwise modified prior to the date hereof, the “Credit Agreement”; capitalized terms used but not defined herein
shall have the meanings assigned to them in the Credit Agreement); 
 WHEREAS, the Borrower has requested that the Credit Agreement be
amended so as to, among other things, (i) increase the Revolving Credit Commitments from $850,000,000 to $1,100,000,000, and (ii) provide for a $400,000,000 committed accordion to be exercisable, in whole or in part, at the option of the
Borrower on the terms and conditions contained herein; 
 WHEREAS, the Lenders party hereto, the Issuing Banks party hereto, the Swing Line
Lenders party hereto, the Administrative Agent and the Collateral Agent are willing, on the terms and subject to the conditions set forth below, to consent to the amendment of the Credit Agreement as provided herein; and 

WHEREAS, pursuant to that certain letter agreement dated as of November 18, 2015 by and among the Borrower and Wells Fargo Securities,
LLC and Barclays Bank PLC, as joint lead arrangers (collectively, the “Arrangers”), the Borrower has retained the Arrangers to act as Joint Bookrunners and Joint Lead Arrangers in connection with this Second Amendment (the
“Engagement Letter”). 
 NOW, THEREFORE, in consideration of the covenants and agreements contained herein, as well as
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

 ARTICLE I 

DEFINITIONS 
 SECTION 1.1
Certain Definitions. Capitalized terms used (including in the preamble and recitals hereto) but not defined herein shall have the meanings assigned to such terms in the Credit Agreement. As used in this Second Amendment: 

“Administrative Agent” is defined in the preamble hereto. 

“Arrangers” is defined in the preamble hereto. 

“Assignee Lender” is defined in Section 3.2. 

“Assignor Lender” is defined in Section 3.2. 

“Borrower” is defined in the preamble hereto. 

“Collateral Agent” is defined in the preamble hereto. 

“Credit Agreement” is defined in the first recital hereto. 

“Engagement Letter” is defined in the fourth recital hereto. 

“New Lender” is defined in Section 3.4. 

“Second Amendment” is defined in the preamble hereto. 

“Second Amendment Effective Date” shall mean the date on which the conditions set forth in Article IV of this Second
Amendment are satisfied or waived. 
 ARTICLE II 

AMENDMENTS TO LOAN DOCUMENTS 

Effective as of the Second Amendment Effective Date, the Credit Agreement is hereby amended as follows: 

SECTION 2.1 Schedule 2.01. Schedule 2.01 to the Credit Agreement is deleted in its entirety and replaced with Schedule 2.01 attached
hereto. 
 SECTION 2.2 Amendments to Defined Terms. The following defined terms in Section 1.01 of the Credit Agreement are
amended and restated in their entirety as follows: 
 “Amended Engagement Letter” shall mean the Engagement Letter
dated November 18, 2015 between the Borrower and the Arrangers, as the same may be amended, restated, amended and restated, supplemented or otherwise modified from time to time. 

  
 2 

 “Commitment” shall mean, with respect to any Lender, such Lender’s
Revolving Credit Commitment, Swing Line Commitment or Incremental Loan Commitment. For the avoidance of doubt, a Committed Increase Commitment is not a Commitment until such commitment is exercised by the Borrower in accordance with
Section 2.26. 
 “Incremental Loan Amount” shall mean $400,000,000. 

“Revolving Credit Commitment” shall mean, with respect to each Lender, the commitment of such Lender to make Revolving
Loans hereunder (and to acquire participations in Letters of Credit as provided for herein) as set forth on Schedule 2.01, or in the Assignment and Acceptance pursuant to which such Lender assumed its Revolving Credit Commitment or in any
Incremental Loan Assumption Agreement, as applicable, as the same may be (a) increased by the Incremental Loan Commitment of such Lender, if any, (b) increased by the Committed Increase Commitment of such Lender, if any, pursuant to
Section 2.26, (c) reduced from time to time pursuant to Section 2.09, and (d) reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 9.04. For the
avoidance of doubt, a Committed Increase Commitment is not a Revolving Credit Commitment until such commitment is exercised by the Borrower in accordance with Section 2.26. 

“Total Revolving Credit Commitment” shall mean, at any time, the aggregate amount of the Revolving Credit Commitments,
as in effect at such time. The Total Revolving Credit Commitment as of the Second Amendment Effective Date is $1,100,000,000. 
 SECTION 2.3
New Defined Terms. Section 1.01 of the Credit Agreement is amended by adding the following definitions in the appropriate alphabetical order: 

“Committed Increase Commitment” shall have the meaning assigned to such term in Section 2.26(a). 

“Committed Increase Date” shall have the meaning assigned to such term in Section 2.26(a). 

“Committed Increase Expiration Date” shall mean May 24, 2016. 

“Second Amendment” shall mean that certain Amendment No. 2 dated as of November 24, 2015 by and among the
Borrower, the other Loan Parties party thereto, the Lenders party thereto, the Issuing Banks party thereto, the Swing Line Lenders party thereto and Barclays Bank, PLC, as Administrative Agent and Collateral Agent. 

“Second Amendment Effective Date” shall have the meaning assigned to the term “Second Amendment Effective
Date” in Section 1.1 of the Second Amendment. 
 SECTION 2.4 Amendment to Article II. Article II of the Credit Agreement is
amended by adding the following new Section 2.26 at the end thereof: 
 SECTION 2.26 Committed Increase
Commitments. (a) On or prior to the Committed Increase Expiration Date, at the option of the Borrower (but subject to the 

  
 3 

 
conditions set forth in Section 2.26(c)), the Revolving Credit Commitment of each Lender shall, by written notice from the Borrower to the Administrative Agent, be increased by an
amount up to the amount set forth on Schedule 2.01 (the “Committed Increase Commitment”), or in the Assignment and Acceptance pursuant to which such Lender assumed its Committed Increase Commitment, as the same be
reduced pursuant to Section 2.26(d). Such notice shall set forth (i) the aggregate amount of the Committed Increase Commitments being exercised by the Borrower and each Lender’s pro rata share of such amount and (ii) the
date on which such Committed Increase Commitments are requested to become effective (which shall not be less than three Business Days nor more than 60 days after the date of such notice (or such other number of days as the Administrative Agent may
agree to), such requested date or such later date on which the conditions in Section 2.26(c) are satisfied, the “Committed Increase Date”). 

(b) On the Committed Increase Date, all of the Committed Increase Commitments (or the portion thereof exercised by the
Borrower) shall be deemed an increase to the Revolving Credit Commitments and all Loans made pursuant to the Committed Increase Commitments shall be identical to all Revolving Loans, other than in respect of any arrangement, commitment or upfront
fees payable to the Lenders and the Arrangers in connection therewith pursuant to Section 2.26(c)(iii). The Administrative Agent shall promptly notify each Lender as to the Committed Increase Date and the amount of the Committed Increase
Commitments exercised by the Borrower. Each of the parties hereto hereby agrees that, on the Committed Increase Date, this Agreement shall be deemed amended to the extent (but only to the extent) necessary to reflect the increase in the Revolving
Credit Commitments of the Lenders, and the Administrative Agent and the Borrower may revise this Agreement to evidence such amendments. 

(c) Notwithstanding the foregoing, no exercise by the Borrower of the Committed Increase Commitments shall become effective
under this Section 2.26 unless on the Committed Increase Date: 
 (i) the conditions set forth in Sections
4.01(b) and 4.01(c) shall be satisfied and the Administrative Agent shall have received a certificate to that effect dated such date and executed by a Financial Officer of the Borrower; 

(ii) the Borrower would be in Financial Covenant Compliance; 

(iii) the Administrative Agent, the Arrangers and each applicable Lender shall have received all fees and expenses owed in
respect of the Committed Increase Commitments being exercised pursuant to the terms of the Amended Engagement Letter; and 

(iv) on or before the Committed Increase Date, Pony Express HoldCo shall acquire in a Permitted Drop-Down Acquisition an
additional Equity Interest in Pony Express representing at least 10% of the total membership units in Pony Express. 
 (d) If
the Borrower issues any senior notes that constitute Permitted Junior Debt prior to the first to occur of the Committed Increase Date and the Committed Increase Expiration Date, the total amount of the Committed Increase Commitments of the Lenders
shall be reduced by the principal amount of such senior notes, which reductions will be applied pro rata to each Lender’s Committed Increase Commitment. 

  
 4 

 (e) There shall be no more than one Committed Increase Date, and following the
increase to the Revolving Credit Commitments on such date as contemplated by Section 2.26(b), any unexercised Committed Increase Commitments shall automatically and permanently terminate. 

(f) On the Committed Increase Date, the amount of all outstanding Revolving Loans and participations in Letters
of Credit and Swing Line Loans shall be reallocated among the Lenders in accordance with their respective Revolving Credit Commitments (to the extent increased by the Committed Increase Commitments), and to effect such reallocations, each Lender
whose Revolving Credit Commitment is increased upon the effectiveness of the Committed Increase Commitments (each an “Assignee Lender”) shall be deemed to have purchased from each of the Lenders whose Revolving Credit
Commitments are not increased (each an “Assignor Lender”), at the principal amount thereof, such interests in outstanding Revolving Loans and participations in Letters of Credit and Swing Line Loans outstanding on such
Committed Increase Date that will result in, after giving effect to all such assignments and purchases, such Revolving Loans and participations in Letters of Credit and Swing Line Loans being held ratably by the Lenders in accordance with their
respective Revolving Credit Commitments (after giving effect to any increases pursuant to the Committed Increase Commitment). Such purchases shall be deemed to have been effected by way of, and subject to the terms and conditions of, Assignment and
Acceptances without the payment of any related assignment fee, and no other documents or instruments shall be, or shall be required to be, executed in connection with such assignments (all of which are hereby waived). The Assignor Lenders and
Assignee Lenders shall make such cash settlements among themselves, through the Administrative Agent, as the Administrative Agent may direct (after giving effect to any netting effected by the Administrative Agent) with respect to such reallocations
and assignments. 
 SECTION 2.5 Amendment to Article III. Each of Sections 3.01, 3.07, 3.08, 3.16, 3.17, 3.18, 3.20,
3.21, 3.24 and 3.25 of the Credit Agreement is amended by replacing the references to “the Closing Date” appearing therein with “the Second Amendment Effective Date”. Schedules 3.01, 3.08, 3.17, 3.18, 3.19(a), 3.19(c), 3.20(a),
3.20(b) and 3.24 are deleted in their entirety and replaced with the corresponding schedules in Exhibit A attached hereto. 
 SECTION 2.6
Amendment to Section 6.05. Section 6.05(b) of the Credit Agreement is amended by (a) inserting “and” appearing at the end of clause (ix) thereof, (b) deleting “; and” appearing at the end of clause
(x) thereof and replacing it with “.” and (c) deleting clause (xi) thereof in its entirety. 
 SECTION 2.7
Amendment to Section 9.04. Section 9.04(b)(iii) of the Credit Agreement is amended and restated in its entirety as follows: 

(iii) an assignment of the entire remaining amount of a Lender’s Commitment shall include the entire amount of such Lender’s
Committed Increase Commitment and each partial assignment shall be made as an assignment of a proportionate part of all of the assigning Lender’s rights and obligations under this Agreement with respect to the Commitment and/or Loans assigned
and shall include an assignment of a ratable proportionate part of the assigning Lender’s Committed Increase Commitment; 

  
 5 

 SECTION 2.8 Amendments to Section 9.08. 

(a) Section 9.08(b)(ii) of the Credit Agreement is amended and restated in its entirety as follows: 

(ii) increase or extend the Commitment or Committed Increase Commitment or decrease the amount of or extend the date for payment of any Fees or
fees of any Lender without the prior written consent of such Lender, 
 (b) The second proviso to Section 9.08(b) of the Credit
Agreement is amended and restated in its entirety as follows: 
 provided, however, that, notwithstanding anything to the
contrary herein, no Defaulting Lender shall have any right to consent to any such amendment, modification or waiver, other than any such amendment, modification or waiver which affects the rights or obligations of a Defaulting Lender differently
than the rights or obligations of the other Lenders or increases or extends the Commitment or Committed Increase Commitment of, or forgives or decreases the principal amount of, or extends the maturity of any scheduled principal payment date or date
for the payment of any interest on any Loan of, such Defaulting Lender; 
 SECTION 2.9 Amendment to Guarantee and Collateral
Agreement. Each of the schedules to the Guarantee and Collateral Agreement is deleted in its entirety and replaced with the corresponding schedule in Exhibit B attached hereto. 

ARTICLE III 
 NEW LENDERS 

SECTION 3.1 Revolving Credit Commitments. The Administrative Agent, the Borrower and each Lender (including each New Lender) agree on
the Second Amendment Effective Date, the amounts of such Lender’s Revolving Credit Commitment and Committed Increase Commitment are as set forth on Schedule 2.01 annexed hereto, on the terms and subject to the conditions set forth
herein. 
 SECTION 3.2 Reallocations. Simultaneously with the effectiveness of this Second Amendment, the Revolving Credit Commitment
of each of the Lenders and the amount of all outstanding Revolving Loans and participations in Letters of Credit and Swing Line Loans shall be reallocated among the Lenders in accordance with their respective Revolving Credit Commitments, and to
effect such reallocations, each Lender (including each New Lender) whose Revolving Credit Commitment upon the effectiveness of this Second Amendment exceeds its Revolving Credit Commitment immediately prior to the effectiveness of this Second
Amendment (each an “Assignee Lender”) shall be deemed to have purchased all right, title and interest in, and all obligations in respect of, the Revolving Credit Commitments of the Lenders whose Revolving Credit Commitments are less than
their respective Revolving Credit 

  
 6 

 
Commitment immediately prior to the effectiveness of this Second Amendment (each an “Assignor Lender”), so that the Revolving Credit Commitments of each Lender will be as set forth on
Schedule 2.01 attached hereto. Such purchases shall be deemed to have been effected by way of, and subject to the terms and conditions of, Assignment and Acceptances without the payment of any related assignment fee, and, except for replacement
Revolving Loan Notes to be provided to the Assignor Lenders and Assignee Lenders in the principal amount of their respective Revolving Credit Commitments (after giving effect to this Second Amendment), no other documents or instruments shall be, or
shall be required to be, executed in connection with such assignments (all of which are hereby waived). The Assignor Lenders and Assignee Lenders shall make such cash settlements among themselves, through the Administrative Agent, as the
Administrative Agent may direct (after giving effect to any netting effected by the Administrative Agent) with respect to such reallocations and assignments. 

SECTION 3.3 New Lender Acknowledgements. Each Lender that is initially becoming a Lender pursuant to this Second Amendment (each a
“New Lender”) (i) confirms that it has received a copy of the Credit Agreement and the other Loan Documents, together with copies of the financial statements referred to therein and such other documents and information as it
has deemed appropriate to make its own credit analysis and decision to enter into this Second Amendment; (ii) agrees that it will, independently and without reliance upon the Arrangers, the Administrative Agent or any other Lender or Agent and
based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement; (iii) appoints and authorizes the Administrative Agent and
the Collateral Agent to take such action as agents on its behalf and to exercise such powers under the Credit Agreement and the other Loan Documents as are delegated to the Administrative Agent and the Collateral Agent by the terms thereof, together
with such powers as are reasonably incidental thereto; and (iv) agrees that it will perform in accordance with their terms all of the obligations which by the terms of the Credit Agreement are required to be performed by it as a Lender. 

SECTION 3.4 Address for Notices. For purposes of the Credit Agreement, the initial notice address of each New Lender shall be as set
forth below its signature below. 
 SECTION 3.5 Interest; Breakage; Prepayments. 

(a) The Borrower hereby agrees that it shall pay to the Revolving Credit Lenders on the Second Amendment Effective Date accrued and unpaid
interest to and including the Second Amendment Effective Date, on the outstanding amount of Revolving Loans; 
 (b) Each Revolving Lender
hereby waives any right to receive any payments under Section 2.15 of the Credit Agreement as a result of the payment of any existing Revolving Loans pursuant to this Amendment; and 

(c) It is understood and agreed that the Borrower, in coordination with the Administrative Agent, may elect on or prior to the Second
Amendment Effective Date that after giving effect to the reallocations provided for in Section 3.2, the existing Eurodollar Loans outstanding on the Second Amendment Effective Date with the Interest Periods provided in the following table shall
continue to remain outstanding in the same aggregate dollar amount and with the same ending date for each Interest Period. 

  
 7 

			
		 	Last Day of Interest Period
		
		 	November 30, 2015
		
		 	December 9, 2015
		
		 	December 21, 2015

 ARTICLE IV 

CONDITIONS TO EFFECTIVENESS 
 The
effectiveness of this Second Amendment (including the amendments contained in Article II) are subject to the satisfaction (or waiver) of the following conditions: 

SECTION 4.1 This Second Amendment shall have been duly executed by the Borrower, the Administrative Agent, the Collateral Agent, the Swing
Line Lenders, the Lenders, the Issuing Banks and the other Loan Parties, and delivered to the Arrangers; 
 SECTION 4.2 The Arrangers shall
have received, to the extent invoiced, reimbursement or payment by the Borrower of all reasonable out-of-pocket expenses (including reasonable fees and expenses of counsel for the Arrangers) incurred by the Arrangers in connection with this Second
Amendment; 
 SECTION 4.3 The Arrangers shall have received all fees due and payable under the Engagement Letter; 

SECTION 4.4 The Arrangers shall have received, on behalf of the Administrative Agent, the Collateral Agent and the Lenders, the favorable
written opinion of Stinson Leonard Street LLP, counsel for the Borrower, in form and substance satisfactory to the Arrangers, (A) dated the Second Amendment Effective Date, (B) addressed to the Administrative Agent, the Collateral Agent
and the Lenders, and (C) covering such matters relating to this Second Amendment and the transactions contemplated hereby as the Arrangers shall reasonably request, and the Borrower hereby requests such counsel to deliver such opinions; 

SECTION 4.5 The Arrangers shall have received a certificate signed by a Responsible Officer of the Borrower as to the matters set forth in
Sections 4.7 and 4.8 of this Article IV and as to Financial Covenant Compliance; 
 SECTION 4.6 The Arrangers shall
have received with respect to the Borrower and each other Loan Party (i) certificates of good standing as of a recent date issued by the appropriate Governmental Authority of the state or jurisdiction of its incorporation or organization, where
applicable; (ii) a certificate of the Secretary or Assistant Secretary of each Loan Party dated the Second Amendment Effective Date and certifying (A) that attached thereto 

  
 8 

 
is a true and complete copy of the Organizational Documents of such Loan Party or that there have been no changes to the Organizational Documents of such Loan Party from those most recently
delivered to the Administrative Agent in connection with the Credit Agreement and that such documents remain in full force and effect, (B) that attached thereto is a true and complete copy of resolutions duly adopted by the board of directors
or other governing body of such Loan Party (and, if applicable, any parent company of such Loan Party) authorizing the execution, delivery and performance of this Second Amendment and any related Loan Documents and the borrowings hereunder and
thereunder, and that such resolutions have not been modified, rescinded or amended and are in full force and effect, and (C) as to the incumbency and specimen signature of each officer executing any Loan Document or any other document delivered
in connection herewith on behalf of such Loan Party; and (iii) a certificate of another officer as to the incumbency and specimen signature of the Secretary or Assistant Secretary executing the certificate pursuant to clause (ii) above;

 SECTION 4.7 No Default or Event of Default has occurred and is continuing under the Credit Agreement both before and immediately after
giving effect to the transactions contemplated hereby; 
 SECTION 4.8 The representations and warranties of the Borrower set forth in
Article V of this Second Amendment are true and correct; 
 SECTION 4.9 The Borrower shall have paid all accrued and unpaid
interest on the aggregate principal amount of the Revolving Loans and all amounts due under Section 3.5 hereunder; 
 SECTION
4.10 The Borrower shall have provided, at least three Business Days prior to the Second Amendment Effective Date, the documentation and other information to the Arrangers, the Administrative Agent and the New Lenders that are required by regulatory
authorities under the applicable “know-your-customer” rules and regulations and anti-money laundering rules and regulations, including the Patriot Act and that have been reasonably requested by the New Lenders at least five Business Days
prior to the Second Amendment Effective Date; and 
 SECTION 4.11 If any New Lender requests that Loans made by it under the Credit
Agreement, as amended, be evidenced by a promissory note, the Borrower shall execute and deliver to such New Lender a promissory note payable to such New Lender and its registered assigns and in a form and substance reasonably acceptable to the
Administrative Agent and the Borrower. 

  
 9 

 ARTICLE V 

REPRESENTATIONS AND WARRANTIES 

To induce the other parties hereto to enter into this Second Amendment, the Borrower represents and warrants to each of the Lenders, each
Issuing Bank, the Arrangers and the Administrative Agent that, as of the Second Amendment Effective Date and after giving effect to the transactions and amendments to occur on the Second Amendment Effective Date: 

(a) This Second Amendment has been duly authorized, executed and delivered by each of the Loan Parties party hereto and constitutes, and the
Credit Agreement (after giving effect to this Second Amendment, will (as to the Borrower) constitute, its legal, valid and binding obligation, enforceable against each of the Loan Parties party hereto or thereto in accordance with its terms, except
as such enforcement may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting creditors’ rights generally, and subject to general principles of equity, regardless of
whether considered in a proceeding in equity or at law; 
 (b) The representations and warranties of the Borrower set forth in the Credit
Agreement and the other Loan Documents are true and correct on and as of the Second Amendment Effective Date (after giving effect to this Second Amendment), except to the extent that such representations and warranties specifically refer to an
earlier date, in which case they shall be true and correct as of such earlier date; 
 (c) After giving effect to this Second Amendment and
the transactions contemplated hereby, no Default or Event of Default has occurred and is continuing on the Second Amendment Effective Date; and 

(d) Immediately prior to and immediately after the consummation of the transactions contemplated under this Second Amendment on the Second
Amendment Effective Date, after taking into account all applicable rights of indemnity and contribution, the Borrower and its subsidiaries on a consolidated basis, are Solvent. 

ARTICLE VI 
 EFFECTS ON LOAN
DOCUMENTS 
 Except as specifically amended herein, all Loan Documents shall continue to be in full force and effect and are hereby in all
respects ratified and confirmed. The execution, delivery and effectiveness of this Second Amendment shall not operate as a waiver of any right, power or remedy of any Lender or the Administrative Agent under any of the Loan Documents, nor constitute
a waiver of any provision of the Loan Documents or in any way limit, impair or otherwise affect the rights and remedies of the Lenders or the Administrative Agent under the Loan Documents. The Borrower and the other Loan Parties acknowledge and
agree that, on and after the Second Amendment Effective Date, this Second Amendment and each of the other Loan Documents to be executed and delivered by a Loan Party in connection herewith shall constitute a Loan Document for all purposes of the
Credit Agreement. On and after the Second Amendment Effective Date, unless the context shall otherwise require, each reference in the Credit Agreement or any other Loan Document to “Lenders” or “Revolving Credit Lenders” shall be
deemed to include the New Lenders. On and after the Second Amendment Effective Date, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import
referring to the Credit Agreement, and each reference in the other Loan Documents to “Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement shall mean and be a reference to
the Credit Agreement as amended by this Second Amendment, and this Second Amendment and the Credit Agreement shall be read together and construed as a single instrument. Nothing herein shall be deemed to entitle the Borrower to a further consent to,
or a further waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document in similar or different circumstances. 

  
 10 

 ARTICLE VII 

MISCELLANEOUS 
 SECTION 7.1
Expenses. The Borrower agrees to pay all reasonable out-of-pocket costs and expenses incurred by the Arrangers in connection with this Second Amendment and any other documents prepared in connection herewith, in each case to the extent
required by Section 9.05 of the Credit Agreement. The Borrower hereby confirms that the indemnification provisions set forth in Section 9.05 of the Credit Agreement shall apply to this Second Amendment and such losses,
claims, damages, liabilities, costs and expenses (as more fully set forth therein as applicable) which may arise herefrom or in connection herewith. 

SECTION 7.2 Amendments; Execution in Counterparts; Severability. 

(a) This Second Amendment may not be amended nor may any provision hereof be waived except pursuant to a writing signed by the Borrower, the
Administrative Agent, the Lenders party hereto and the other Loan Parties; and 
 (b) In the event any one or more of the provisions
contained in this Second Amendment should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and therein shall not in any way be affected or impaired
thereby (it being understood that the invalidity of a particular provision in a particular jurisdiction shall not in and of itself affect the validity of such provision in any other jurisdiction). The parties shall endeavor in good-faith
negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 

SECTION 7.3 Reaffirmation; Mortgage Modification Requirements. 

(a) Each of the Loan Parties party to the Guarantee and Collateral Agreement and the other Loan Documents, in each case as amended,
supplemented or otherwise modified from time to time, hereby (i) acknowledges and agrees that the New Lenders are Lenders, and that all of its obligations under the Guarantee and Collateral Agreement and the other Loan Documents to which it is
a party are reaffirmed and remain in full force and effect on a continuous basis, (ii) reaffirms (A) each Lien granted by it to the Collateral Agent for the benefit of the Secured Parties and (B) the guaranties made by it pursuant to
the Guarantee and Collateral Agreement, (iii) acknowledges and agrees that the grants of security interests by and the guaranties of the Loan Parties contained in the Guarantee and Collateral Agreement and the Mortgages are, and shall remain,
in full force and effect after giving effect to the Second Amendment, and (iv) agrees that the Obligations include, among other things and without limitation, the prompt and complete payment and performance by the Borrower when due and payable
(whether at the stated maturity, by acceleration or otherwise) of principal and interest on the Loans under the Credit Agreement. 
 (b)
Within 90 days of the Second Amendment Effective Date (or such longer period of time acceptable to the Administrative Agent), the Borrower shall satisfy the Mortgage Modification Requirements. 

  
 11 

 SECTION 7.4 Governing Law; Waiver of Jury Trial; Jurisdiction. THIS SECOND AMENDMENT SHALL
BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK. EACH PARTY HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS SECOND AMENDMENT, THE
CREDIT AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN. The provisions of Section 9.15 of the Credit Agreement are incorporated herein by reference. 

SECTION 7.5 Headings. Section headings in this Second Amendment are included herein for convenience of reference only, are not part of
this Second Amendment and are not to affect the construction of, or to be taken into consideration in interpreting, this Second Amendment. 

SECTION 7.6 Counterparts. This Second Amendment may be executed by one or more of the parties hereto on any number of separate
counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument. Signatures delivered by facsimile or PDF or other electronic means shall have the same force and effect as manual signatures
delivered in person. 
 [Remainder of page intentionally left blank.] 

  
 12 

 IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to be duly executed and
delivered by their respective proper and duly authorized officers as of the day and year first above written. 
  

			
	TALLGRASS ENERGY PARTNERS, LP, as Borrower
	
	By: TALLGRASS MLP GP, LLC, its general partner
		
	By:	 	 /s/ David G. Dehaemers, Jr.

	Name:	 	David G. Dehaemers, Jr.
	Title:	 	President and Chief Executive Officer
	
	TALLGRASS MLP OPERATIONS, LLC, as Grantor
		
	By:	 	 /s/ David G. Dehaemers, Jr.

	Name:	 	David G. Dehaemers, Jr.
	Title:	 	President and Chief Executive Officer
	
	TALLGRASS INTERSTATE GAS TRANSMISSION, LLC, as Grantor
		
	By:	 	 /s/ David G. Dehaemers, Jr.

	Name:	 	David G. Dehaemers, Jr.
	Title:	 	Chief Executive Officer
	
	TALLGRASS MIDSTREAM, LLC, as Grantor
		
	By:	 	 /s/ David G. Dehaemers, Jr.

	Name:	 	David G. Dehaemers, Jr.
	Title:	 	Chief Executive Officer

 [Signature Page to Tallgrass Energy Partners, LP Credit Agreement – Amendment No. 2] 

 
			
	TRAILBLAZER PIPELINE COMPANY LLC, as Grantor
		
	By:	 	 /s/ David G. Dehaemers, Jr.

	Name:	 	David G. Dehaemers, Jr.
	Title:	 	Chief Executive Officer
	
	TALLGRASS ENERGY INVESTMENTS, LLC, as Grantor
		
	By:	 	 /s/ David G. Dehaemers, Jr.

	Name:	 	David G. Dehaemers, Jr.
	Title:	 	Chief Executive Officer
	
	TALLGRASS PXP HOLDINGS, LLC, as Grantor
		
	By:	 	 /s/ David G. Dehaemers, Jr.

	Name:	 	David G. Dehaemers, Jr.
	Title:	 	Chief Executive Officer
	
	TALLGRASS ENERGY FINANCE CORP., as Grantor
		
	By:	 	 /s/ David G. Dehaemers, Jr.

	Name:	 	David G. Dehaemers, Jr.
	Title:	 	President and Chief Executive Officer

  
 [Signature Page to
Tallgrass Energy Partners, LP Credit Agreement – Amendment No. 2] 

 
			
	BARCLAYS BANK PLC
	as Administrative Agent, Collateral Agent, a Lender, a Swing Line Lender and an Issuing Bank
		
	By:	 	 /s/ Marguerite Sutton

	Name:	 	 Marguerite Sutton 

	Title:	 	Vice President

  
 [Signature Page to
Tallgrass Energy Partners, LP Credit Agreement – Amendment No. 2] 

 
			
	WELLS FARGO BANK, N.A.
	as a Lender, a Swing Line Lender and an Issuing Bank
		
	By:	 	 /s/ Alan W. Wray

	Name:	 	Alan W. Wray
	Title:	 	Managing Director

  
 [Signature Page to
Tallgrass Energy Partners, LP Credit Agreement – Amendment No. 2] 

 
			
	Bank of America, N.A.
	as a Lender
		
	By:	 	 /s/ Bryan Heller

	Name:	 	Bryan Heller
	Title:	 	Director

  
 [Signature Page to
Tallgrass Energy Partners, LP Credit Agreement – Amendment No. 2] 

 
			
	Citibank, N.A.
	as a Lender
		
	By:	 	 /s/ Eamon Baqui

	Name:	 	Eamon Baqui
	Title:	 	Vice President

  
 [Signature Page to
Tallgrass Energy Partners, LP Credit Agreement – Amendment No. 2] 

 
			
	Deutsche Bank AG New York Branch
	as a Lender
		
	By:	 	 /s/ Dusan Lazarov

	Name:	 	Dusan Lazarov
	Title:	 	Director
		
	By:	 	 /s/ Peter Cucchiara

	Name:	 	Peter Cucchiara
	Title:	 	Vice President

  
 [Signature Page to
Tallgrass Energy Partners, LP Credit Agreement – Amendment No. 2] 

 
			
	GOLDMAN SACHS BRANCH USA
	as a Lender
		
	By:	 	 /s/ Rebecca Kratz

	Name:	 	Rebecca Kratz
	Title:	 	Authorized Signatory

  
 [Signature Page to
Tallgrass Energy Partners, LP Credit Agreement – Amendment No. 2] 

 
			
	ROYAL BANK OF CANADA
	as a Lender
		
	By:	 	 /s/ Evans Swann Jr.

	Name:	 	Evans Swann Jr.
	Title:	 	Authorized Signatory

  
 [Signature Page to
Tallgrass Energy Partners, LP Credit Agreement – Amendment No. 2] 

 
			
	CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH
	as a Lender
		
	By:	 	 /s/ Nupur Kumar

	Name:	 	Nupur Kumar
	Title:	 	Authorized Signatory
		
	By:	 	 /s/ Michael Moreno

	Name:	 	Michael Moreno
	Title:	 	Authorized Signatory

 
			
	MORGAN STANLEY BANK, N.A.
	as a Lender
		
	By:	 	 /s/ Michael King

	Name:	 	Michael King
	Title:	 	Authorized Signatory

 
			
	COMPASS BANK
	as a Lender
		
	By:	 	 /s/ Kathleen J. Bowen

	Name:	 	Kathleen J. Bowen
	Title:	 	Managing Director

  
 [Signature Page to
Tallgrass Energy Partners, LP Credit Agreement – Amendment No. 2] 

 
			
	Toronto Dominion (Texas) LLC
	as a Lender
		
	By:	 	 /s/ Savo Bozic

	Name:	 	Savo Bozic
	Title:	 	Authorized Signatory

  
 [Signature Page to
Tallgrass Energy Partners, LP Credit Agreement – Amendment No. 2] 

 
			
	Capital One, National Association
	as a Lender
		
	By:	 	 /s/ Matthew L. Molero

	Name:	 	Matthew L. Molero
	Title:	 	Sr. Vice President

  
 [Signature Page to
Tallgrass Energy Partners, LP Credit Agreement – Amendment No. 2] 

 
			
	REGIONS BANK
	as a Lender
		
	By:	 	 /s/ David Valentine

	Name:	 	David Valentine
	Title:	 	Senior Vice President

  
 [Signature Page to
Tallgrass Energy Partners, LP Credit Agreement – Amendment No. 2] 

 
			
	PNC BANK, NATIONAL ASSOCIATION
	as a Lender
		
	By:	 	 /s/ Jonathan Luchansky

	Name:	 	Jonathan Luchansky
	Title:	 	Vice President

  
 [Signature Page to
Tallgrass Energy Partners, LP Credit Agreement – Amendment No. 2] 

 
			
	U.S. Bank National Association
	as a Lender
		
	By:	 	 /s/ Todd S. Anderson

	Name:	 	Todd S. Anderson
	Title:	 	Vice President

  
 [Signature Page to
Tallgrass Energy Partners, LP Credit Agreement – Amendment No. 2] 

 
			
	BANK OF TOKYO MITSUBISHI UFJ
	as a Lender
		
	By:	 	 /s/ Mark Oberreuter

	Name:	 	Mark Oberreuter
	Title:	 	Vice President

  
 [Signature Page to
Tallgrass Energy Partners, LP Credit Agreement – Amendment No. 2] 

 
			
	BNP PARIBAS
	as a Lender
		
	By:	 	 /s/ Matt Worstell

	Name:	 	Matt Worstell
	Title:	 	Director
		
	By:	 	 /s/ Robert J. Smith

	Name:	 	Robert J. Smith
	Title:	 	Director

  
 [Signature Page to
Tallgrass Energy Partners, LP Credit Agreement – Amendment No. 2] 

 
			
	THE BANK OF NOVA SCOTIA
	as a Lender
		
	By:	 	 /s/ Mark Sparrow

	Name:	 	Mark Sparrow
	Title:	 	Director

  
 [Signature Page to
Tallgrass Energy Partners, LP Credit Agreement – Amendment No. 2] 

 
			
	CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK
	as a Lender
		
	By:	 	 /s/ Dixon Schultz

	Name:	 	Dixon Schultz
	Title:	 	Managing Director
		
	By:	 	 /s/ Michael Willis

	Name:	 	Michael Willis
	Title:	 	Managing Director

  
 [Signature Page to
Tallgrass Energy Partners, LP Credit Agreement – Amendment No. 2] 

 
			
	ING CAPITAL LLC
	as a Lender
		
	By:	 	 /s/ Subha Pasumarti

	Name:	 	Subha Pasumarti
	Title:	 	Managing Director
		
	By:	 	 /s/ Cheryl LaBelle

	Name:	 	Cheryl LaBelle
	Title:	 	Managing Director

  
 [Signature Page to
Tallgrass Energy Partners, LP Credit Agreement – Amendment No. 2] 

 
			
	CITIZENS BANK, N.A.
	as a Lender
		
	By:	 	 /s/ Scott Donaldson

	Name:	 	Scott Donaldson
	Title:	 	Senior Vice President

  
 [Signature Page to
Tallgrass Energy Partners, LP Credit Agreement – Amendment No. 2] 

 
			
	ABN AMRO CAPITAL USA, LLC
	as a Lender
		
	By:	 	 /s/ Darrell Holley

	Name:	 	Darrell Holley
	Title:	 	Managing Director
		
	By:	 	 /s/ Kaylan Hopson

	Name:	 	Kaylan Hopson
	Title:	 	Senior Vice President

  
 [Signature Page to
Tallgrass Energy Partners, LP Credit Agreement – Amendment No. 2] 

 
			
	SANTANDER BANK, N.A.
	as a Lender
		
	By:	 	 /s/ Aidan Lanigan

	Name:	 	Aidan Lanigan
	Title:	 	Senior Vice President
		
	By:	 	 /s/ Puiki Lok

	Name:	 	Puiki Lok
	Title:	 	Vice President

  
 [Signature Page to
Tallgrass Energy Partners, LP Credit Agreement – Amendment No. 2] 

 
			
	Cadence Bank, N.A.
	as a Lender
		
	By:	 	 /s/ David Anderson

	Name:	 	David Anderson
	Title:	 	Senior Vice President

  
 [Signature Page to
Tallgrass Energy Partners, LP Credit Agreement – Amendment No. 2] 

 
			
	UMB BANK, N.A.
	as a Lender
		
	By:	 	 /s/ Jess M. Adams

	Name:	 	Jess M. Adams
	Title:	 	Vice President

  
 [Signature Page to
Tallgrass Energy Partners, LP Credit Agreement – Amendment No. 2] 

 
			
	Amegy Bank National Association
	as a Lender
		
	By:	 	 /s/ Jill McSorley

	Name:	 	Jill McSorley
	Title:	 	Senior Vice President

  
 [Signature Page to
Tallgrass Energy Partners, LP Credit Agreement – Amendment No. 2] 

 
			
	BRANCH BANKING AND TRUST COMPANY
	as a Lender
		
	By:	 	 /s/ Ryan K. Michael

	Name:	 	Ryan K. Michael
	Title:	 	Senior Vice President

  
 [Signature Page to
Tallgrass Energy Partners, LP Credit Agreement – Amendment No. 2] 

 SCHEDULE 2.01 

REVOLVING CREDIT COMMITMENTS 

AND 
 COMMITTED INCREASE
COMMITMENTS 
  

									
	 Name of Lender
	  	Revolving Credit
Commitments	 	  	Committed Increase
Commitments	 
	 Wells Fargo Bank, N.A.
	  	$	57,692,307.69	  	  	$	12,307,692.31	  
	 Barclays Bank PLC
	  	$	57,692,307.69	  	  	$	12,307,692.31	  
	 Bank of America, N.A.
	  	$	57,692,307.69	  	  	$	12,307,692.31	  
	 Citibank, N.A.
	  	$	57,692,307.69	  	  	$	12,307,692.31	  
	 Deutsche Bank AG New York Branch
	  	$	57,692,307.69	  	  	$	12,307,692.31	  
	 Goldman Sachs Bank USA
	  	$	57,692,307.69	  	  	$	12,307,692.31	  
	 Royal Bank of Canada
	  	$	57,692,307.69	  	  	$	12,307,692.31	  
	 Credit Suisse AG, Cayman Islands Branch
	  	$	51,538,461.54	  	  	$	18,461,538.46	  
	 Morgan Stanley Bank, N.A.
	  	$	51,538,461.54	  	  	$	18,461,538.46	  
	 Compass Bank
	  	$	45,769,230.77	  	  	$	9,230,769.23	  
	 Toronto Dominion (Texas) LLC
	  	$	21,153,846.15	  	  	$	33,846,153.85	  
	 Capital One, National Association
	  	$	45,769,230.77	  	  	$	9,230,769.23	  
	 Regions Bank
	  	$	45,769,230.77	  	  	$	9,230,769.23	  
	 PNC Bank, National Association
	  	$	39,615,384.62	  	  	$	15,384,615.38	  
	 U.S. Bank National Association
	  	$	39,615,384.62	  	  	$	15,384,615.38	  
	 Bank of Tokyo Mitsubishi UFJ
	  	$	39,615,384.62	  	  	$	15,384,615.38	  
	 BNP Paribas
	  	$	21,153,846.15	  	  	$	33,846,153.85	  
	 The Bank of Nova Scotia
	  	$	21,153,846.15	  	  	$	33,846,153.85	  
	 Credit Agricole Corporate and Investment Bank
	  	$	50,000,000.00	  	  	$	0.00	  
	 ING Capital LLC
	  	$	50,000,000.00	  	  	$	0.00	  
	 Citizens Bank, N.A.
	  	$	17,307,692.31	  	  	$	27,692,307.69	  
	 ABN AMRO Capital USA LLC
	  	$	35,769,230.77	  	  	$	9,230,769.23	  
	 Santander Bank, N.A.
	  	$	35,769,230.77	  	  	$	9,230,769.23	  
	 Cadence Bank, N.A.
	  	$	31,923,076.92	  	  	$	3,076,923.08	  
	 UMB Bank, N.A.
	  	$	25,769,230.77	  	  	$	9,230,769.23	  
	 Amegy Bank, National Association
	  	$	13,461,538.46	  	  	$	21,538,461.54	  
	 Branch Banking and Trust Company
	  	$	13,461,538.46	  	  	$	21,538,461.54	  
		  	  
	  
	 	  	  
	  
	 
	 Total:
	  	$	1,100,000,000	  	  	$	400,000,000	  
		  	  
	  
	 	  	  
	  
	 

  
 Schedule 2.01 

 Exhibit A 

Updated Credit Agreement Schedules 

 Exhibit B 

Updated Guarantee and Collateral Agreement Schedules

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