Document:

Exhibit 10.6

 

 

 

August 18, 2022

 

Anthony Fuller

Chief Executive Officer

Renovare Environmental, Inc.

80 Red Schoolhouse Rd, Suite 101

Chestnut Ridge, NY 10977

 

Dear Mr. Fuller:

 

Re:
PLACEMENT AGENT’S AGREEMENT

 

This letter (the “Agreement”)
constitutes the agreement between, Newtork 1 Financial Securities, Inc. (“Network”, or the “Placement Agent”)
and Renovare Environmental, Inc., a company incorporated under the laws of the State of Delaware (the “Company”), pursuant
to which the Placement Agent shall serve as the exclusive placement agent for the Company, on a “reasonable best efforts”
basis, in connection with the proposed placement (the “Placement”) of up to $8,000,000 of preferred shares and warrants
(the “Shares” or the “Securities”) convertible into common stoke of the Company, par value $0.0001
per share (“Common Stock”). The terms of the Placement and the Securities shall be mutually agreed upon by the Company
and the purchasers (each, a “Purchaser” and collectively, the “Purchasers”) and nothing herein constitutes
that the Placement Agent would have the power or authority to bind the Company or any Purchaser or an obligation for the Company to issue
any Securities or complete the Placement. This Agreement and the documents executed and delivered by the Company and the Purchasers in
connection with the Placement, including but not limited to the Purchase Agreement (as defined below), shall be collectively referred
to herein as the “Offering Documents.” The date of the closing of the Placement shall be referred to herein as the
 “Closing Date.” The Company expressly acknowledges and agrees that the obligations of the Placement Agent hereunder
are on a reasonable best efforts basis only and that the execution of this Agreement does not constitute a commitment by the Placement
Agent to purchase the Securities and does not ensure the successful placement of the Securities or any portion thereof or the success
of the Placement Agent with respect to securing any other financing on behalf of the Company. Following the prior written consent of the
Company, the Placement Agent may retain other brokers or dealers to act as sub-Agent or selected-dealers on its behalf in connection with
the Placement. The sale of the Securities to any Purchaser will be evidenced by a securities purchase agreement (the “Purchase
Agreement”) between the Company and such Purchaser in a form mutually agreed upon by the Company and the Placement Agent. Capitalized
terms that are not otherwise defined herein have the meanings given to such terms in the Purchase Agreement. Prior to the signing of any
Purchase Agreement, executive officers of the Company will be available upon reasonable notice and during normal business hours to answer
inquiries from prospective Purchasers.

 

The undersigned, Network 1 Financial Securities,
Inc., a Texas Corporation and broker/dealer registered with the U.S. Securities & Exchange Commission (“SEC”)
and member of the Financial Industry Regulatory Authority (“FINRA”), hereinafter referred to as “Placement Agent”,
 “Network 1” or “We” or “Our”) hereby offers its services to the Company as Placement Agent for the
aforementioned proposed private placement offering.

 

The Galleria ▪ 2 Bridge Avenue

Suite 241 ▪ Red Bank, NJ 07701-1106

Phone: 732-758-9001 ▪ Toll Free: 800-886-7007
 ▪ Fax: 732-758-6671

Member FINRA/SIPC

 

     

     

    

 

Renovare Environmental, Inc.

Private Placement Agent’s Agreement –Private Offering

August 18, 2022

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The terms and conditions of
this Placement Agent’s Agreement (“Agreement”) are as follows:

 

1.     
Appointment of Placement Agent; The Offering Period.

 

Appointment
of Placement Agent. You hereby appoint Network 1 Financial Securities as exclusive Placement Agent of the Company during the Private Offering
Period herein specified for the purpose of assisting the Company in placing its Securities with purchasers who are qualified accredited
investors (“Subscribers”). Placement Agent hereby accepts such agency and agrees to assist the Company in placing this Private
Offering (“Offering”) with the Subscribers. Placement Agent’s agency hereunder is not terminable by the Company except
upon termination of the Private Offering or upon breach by the Placement Agent of its material obligations hereunder.

 

Private Offering Period. The
Offering Period shall commence on the day that the Company’s offering documents (“Offering Documents”) are first made
available to Placement Agent by the Company and will continue until the final Closing (as hereinafter defined) of the maximum offering
or the 31st day of August 2022 (The “Termination Date”), unless extended by the Company for a period of up to ninety
(90) days from such date without notice to any Subscriber (the “Offering Period”). After the Initial Closing, subsequent closings
with respect to accepted subscriptions may take place at any time during the Offering Period as may be mutually determined by the Company
and the Placement Agent (such subsequent closings and the Initial Closing will each be referred to herein as a “Closing”).

 

Offering Documents. The Company
will provide the Placement Agent with a sufficient number of copies of the Offering Documents for delivery to potential Subscribers and
such other information, documents and instruments which the Placement Agent deems reasonably necessary to act as Placement Agent hereunder
and to comply with the rules, regulations and judicial and administrative interpretations respecting compliance with applicable state
and federal statutes related to the Offering.

 

2.     
Compliance with Securities Laws.

 

Each of the Company and the Placement Agent agrees
to conduct the Offering in a manner intended (a) to qualify as a private placement of the Securities in any jurisdiction in which the
Securities are offered (including the U.S.), and (b) to comply with the requirements of Rule 506 of Regulation D under the Securities
Act. Assuming the accuracy of the representations and warranties given to the Company by each investor to the extent relevant for such
determination, the Offering will be exempt from the registration requirements of the Securities Act. The Company agrees (i) to limit offers
to sell, and solicitations of offers to buy, the Securities to persons reasonably believed by it to be “accredited investors”
within the meaning of Rule 501(a) under the Securities Act, and (ii) not to engage in any form of general solicitation or general advertising
in connection with the Offering within the meaning of Rule 502 under the Securities Act. The Company agrees to conduct the Offering in
a manner intended to comply with the registration or qualification requirements, or available exemptions therefrom, under applicable state
securities laws.

 

     

     

    

 

Renovare Environmental, Inc.

Private Placement Agent’s Agreement –Private Offering

August 18, 2022

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2.1          Form
D and State Blue Sky Filings.

 

2.1.1       SEC
Form D Filing Requirements. Form D is a form to be used to file a notice of an exempt offering of securities with the Securities and
Exchange Commission. SEC rules require the notice to be filed by companies that have sold securities without registration under the Securities
Act of 1933 in an offering based on a claim of exemption under Rule 504 or 506 of Regulation or Section 4(5) of that statute. SEC rules
further require the notice to be filed within 15 days after the first sale of securities in the offering (although some States have different
requirements). For this purpose, the date of first sale is the date on which the first investor is irrevocably contractually committed
to invest. If the due date falls on a Saturday, Sunday or holiday, it is moved to the next business day. The SEC does not charge any filing
fee for a Form D notice or amendment. The Company shall be solely responsible for compliance with SEC Form D filing requirements.

 

2.1.2       Online
Filing of Form D is Required by SEC. Companies must file their Form D notices and amendments with the SEC online, through the Internet,
using the SEC's EDGAR (electronic gathering, analysis and retrieval) system. To file online using the EDGAR system, a company must have
its own filer identification number (called a "Central Index Key" or "CIK" number) and a set of password-like "access
codes." The Company must submit basic information about the filer to the SEC online at its Filer Management page and also submit
a copy of a notarized paper document containing the same information on Form ID. The paper document is called an "authenticating
document" which the Company prepares by printing out and completing a copy of Form ID and having that document notarized. Once the
document is notarized, the Company is required to scan and attach it to its Form ID submission as a PDF file. Accordingly, the Company
agrees, as a material term to this Agreement, to set up its Form D filing in accordance with the details set forth in this Section 2 above.

 

2.1.3       State
Form D Notice Filing Requirements. Many states also require the filing of Form D notices and amendments, and most of them charge
a filing fee. Most states allow for either electronic or paper Form D filing, with the majority of states accepting and a few states mandating
the electronic filing of Form D. Electronic filing of the Form D can be made through the Electronic Filing Depository (EFD), which is
programmed with each state's filing requirements. As an alternative to electronic filing, in those States that do not mandate electronic
filing, a filer may be able to satisfy the state Form D filing requirement by submitting either a printout of the SEC online Form D filing
(retrieved from the EDGAR Company Search page) or a completed paper version of Form D, along with the appropriate fee.

 

2.1.4       Party
Obliged to Filing. The Company shall, as a material term to this Agreement, be solely responsible for compliance, as set forth in
Sections 2.1.2. and 2.1.3, with the filing requirements of the securities laws of the United States and all applicable States of the United
States, and with any and all applicable foreign jurisdictions in which offerings of the Company’s securities are made.

 

     

     

    

 

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Private Placement Agent’s Agreement –Private Offering

August 18, 2022

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2.1.5       Placement
Agent Obligations. The Placement Agent shall advise the Company of those States of the U.S., and other jurisdictions, in which the
Placement Agent intends to offer the Securities (“Intended States”) in order that the Company’s counsel, can ensure
that the Offering has been qualified, or exempted, under the appropriate laws and regulations. In the event that the Company, or Company’s
counsel, identifies that an Intended State requires pre-sale qualification this will be communicated to Placement Agent. The company will
notify the placement agent upon filing in each state that the offering has been qualified. It is the company’s responsibility to
assure that each subscription accepted is qualified according to the investor’s residence.

 

2.1.         Due Diligence. Current regulations in the securities industry require placement agents to conduct “due diligence”
on any issuer that seeks to offer its securities to qualified accredited investors. In the event that Placement Agent is unable to complete
 “due diligence” either (1) because of lack of cooperation on the part of the Company (for instance, but not limited to, the
Company not providing Placement Agent with information or documents requested by the Placement Agent) or (2) because the Placement Agent
uncovers “red flags” about the Company that cause Placement Agent to be not satisfied that Placement Agent can in good faith
recommend the Company’s securities to investors, Placement Agent may terminate this Agreement (1) without further obligation on
the part of Placement Agent to proceed with this Offering and (2) without any obligation on the part of the Placement Agent to
reimburse to Company any monies advanced by Company to Placement Agent. In short, Placement Agent’s obligations under this Agreement
are expressly conditioned upon “due diligence” on the Company that is both complete in the opinion of and satisfactory to
the Placement Agent. Placement Agent’s right of termination under this Section 2.2 is not adversely affected in any way by the termination
provisions in Section 8.1 and 8.2, below.

 

Representations and Warranties
of the Company. The Company represents and warrants to the Placement Agent and the Subscribers as follows:

 

2.2.     Disclosure in Offering Documents.

 

Disclosure of Contracts. The
descriptions in the Offering Documents of all material contracts, agreements, instruments, indentures, mortgages, loans, leases, licenses,
arrangements or undertakings of any nature, written or oral, of the Company which involve future payments, performance or services, development
of products, or delivery of goods or materials to or by the Company of an aggregate amount or value in excess of $250,000, or which otherwise
are material to the business or prospects of the Company (collectively, “Contracts”) are accurate in all material respects
and present fairly the information required to be disclosed therein and there are no contracts or other documents required to be described
in the Offering Documents which have not been so described. The Company has furnished the Placement Agent, when and if requested, with
true, correct and complete copies (or where oral, written descriptions) of all Contracts, including all exhibits, schedules, amendments,
supplements, modifications and waivers thereto. Except as otherwise stated in the Offering Documents, each of the Contracts is in full
force and effect, the Company has performed in all material respects all of its obligations thereunder and is not in default thereunder,
and no party to a Contract has made a claim to the effect that the Company has failed to perform any obligations thereunder. To the best
knowledge of the Company, the Company has not received any written notification from any contracting party to a Contract to terminate,
cancel or modify such Contract or to reduce or otherwise change its activity thereunder so as to adversely affect in any material respect
the benefits derived or expected to be derived therefrom by the Company.

 

     

     

    

 

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Private Placement Agent’s Agreement –Private Offering

August 18, 2022

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2.3.     Changes after Dates in Offering Documents.

 

No Material Adverse Change.
Except as otherwise stated in the Offering Documents, since the Balance Sheet Date, as hereinafter defined, (i) there has been no material
adverse change in the condition, financial or otherwise, or in the results of operations, business or business prospects of the Company,
including, but not limited to a material loss or interference with its business from fire, storm, explosion, flood or other casualty,
whether or not covered by insurance, or from any labor dispute or court or governmental action, order or decree, whether or not arising
in the ordinary course of business, (ii) the Company has not become a party to, and neither the business nor the property of the Company
has become the subject of, any litigation which, if adversely determined, would have a material adverse effect on the business, properties,
assets, condition (financial or otherwise) of the Company, whether or not in the ordinary course of business (a “Material Adverse
Effect”), and (iii) there have been no transactions entered into by the Company, other than those in the ordinary course of business
or reflected in the Offering Documents, which are material with respect to the condition, financial or otherwise, or to the results of
operations, or business of the Company. The Balance Sheet Date is defined as the of March 31, 2022.

 

Recent Securities Transactions.
Etc. Since the most recent Balance Sheet date, and except as otherwise specifically stated in the Offering Documents or on Schedule A
(if any) hereto, the Company has not (i) issued any securities or incurred any liability or obligation, direct or contingent, for borrowed
money; (ii) declared or paid any dividend or made any other distribution on or in respect to its capital stock; or (iii) issued any options,
warrants or other rights to purchase the capital stock of the Company, or any security or other instrument which by its terms is convertible
into, exercisable for or exchangeable for capital stock of the Company.

 

No Preemptive Rights; Options;
Registration Rights. Except as set forth in the Offering Documents, there are no preemptive or other rights to subscribe for or purchase,
or any restriction upon the voting or transfer of, any shares of Common Stock, or other securities of the Company.

 

     

     

    

 

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Private Placement Agent’s Agreement –Private Offering

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Financial Statements. The financial
statements (“Financials”) of the Company, including any notes thereto and supporting schedules, included or incorporated by
reference in the Offering Documents, fairly present the financial position and results of operations of the Company at the dates thereof
and for the periods covered thereby, subject, in the case of interim periods, to year-end adjustments and normal recurring accruals. The
Company has no material liabilities or obligations, contingent, direct, indirect or otherwise except (i) as set forth in the balance sheet
for the Balance Sheet Date included in the Financials or the footnotes thereto, (ii) those incurred in the ordinary course of business
since the Balance Sheet Date, and (iii) otherwise as set forth in the Offering Documents. The Offering Documents also set forth all material
outstanding amounts due to any employees, officers, directors or stockholders of the Company, or to any of their respective affiliates,
including, but not limited to, accrued salaries, loans, etc.

 

Authorized Capital; Options;
Etc. The Company had, at the date or dates indicated in the Offering Documents, such duly authorized, issued and outstanding capitalization
as set forth in the Offering Documents.

 

2.4.     Valid Issuance of Securities: Etc.

 

Outstanding Securities. All
issued and outstanding securities of the Company have been duly authorized and validly issued and are fully paid and non-assessable; the
holders thereof have no rights of rescission with respect thereto, and are not subject to personal liability by reason of being such holders;
and none of such securities were issued in violation of the preemptive rights of any holders of any security of the Company or similar
contractual rights granted by the Company. All outstanding options and warrants to purchase shares of capital stock constitute the valid
and binding obligations of the Company, enforceable in accordance with their terms. The authorized capital stock and outstanding options
and warrants conform to all statements relating thereto contained in the Offering Documents. The offers and sales of the outstanding capital
stock, options and warrants to purchase shares of capital stock were at all relevant times either registered under the Act and the applicable
state securities or Blue Sky laws or exempt from such registration requirements.

 

Preferred and Common Shares
and Warrants. The securities have been duly and validly authorized and, when issued and delivered in accordance with the terms of the
Subscription Agreements, will be duly and validly issued, fully paid and non-assessable. The holders of the shares and warrants will not
be subject to personal liability by reason of being such holders and will not be subject to the preemptive rights of any holders of any
security of the Company or similar contractual rights granted by the Company. All corporate action required to be taken for the authorization,
issuance and sale of the shares and warrants and the securities contained in the warrants has been duly and validly taken.

 

Registration Rights of Third
Parties. Except as set forth in the Offering Documents or on Schedule B (if any) hereto, no holders of any securities of the Company or
of any options or warrants of the Company exercisable for or convertible or exchangeable into securities of the Company have the right
to require the Company to register any such securities of the Company under the Act or to include any such securities in a registration
statement to be filed by the Company.

 

     

     

    

 

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Private Placement Agent’s Agreement –Private Offering

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Due Authorization. The Company
has full right, power and authority to enter into this Agreement and the Subscription Agreements, to issue the securities and to perform
all of its obligations hereunder and thereunder and to consummate the transactions contemplated by the Offering Documents. This Agreement
has been, and the Subscription Agreements, when executed and delivered, will have been, duly and validly authorized by all necessary corporate
action and no further corporate action or approval is or will be required for their respective execution, delivery and performance. This
Agreement constitutes and each Subscription Agreement (assuming the due authorization, execution and delivery by each subscriber) to be
entered into by the Company with respect to the purchase and sale of the securities, will constitute, when executed and delivered by the
Company, valid and binding obligations of the Company, enforceable against the Company in accordance with their respective terms (except
(i) as such enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws now or hereafter in effect relating
to or affecting creditors’ rights generally, (ii) that the enforceability of the indemnification and contribution provisions of
the respective agreements may be limited by the federal and state securities laws and public policy, and (iii) that the remedy of specific
performance and injunctive and other forms of equitable relief may be subject to the equitable defenses and to the discretion of the court
before which any proceeding therefor may be brought).

 

No Conflicts. The Company’s
execution, delivery, and performance of this Agreement and the Subscription Agreements, the consummation by the Company of the transactions
contemplated herein and therein and the compliance by the Company with the provisions of this Agreement and the Subscription Agreements
have been duly authorized by all necessary corporate action and do not and will not, with or without the giving of notice or the lapse
of time or both (i) result in a breach of, or conflict with any of the terms and provisions of, or constitute a default under, or result
in the creation, modification, termination or imposition of any lien, charge or encumbrance upon any property or assets of the Company
pursuant to the terms of any indenture, mortgage, deed of trust, note, loan or credit agreement or any other agreement or instrument evidencing
an obligation for borrowed money, or any other agreement or instrument to which the Company is a party or by which the Company may be
bound or to which any of the property or assets of the Company is subject; (ii) result in any violation of the provisions of the Certificate
of Incorporation or the By-laws of the Company; (iii) to the best of the Company’s knowledge, violate any existing applicable law,
rule, regulation, judgment, order or decree of any governmental agency or court, domestic or foreign, having jurisdiction over the Company
or any of its material properties or material businesses; or (iv) have any material adverse effect on any permit, license, certificate,
registration, approval, consent, license or franchise necessary for the Company to own or lease and operate any of its properties or to
conduct its business.

 

No Defaults. Except as described
in the Offering Documents, no material default exists in the due performance and observance of any term, covenant or condition of any
permit, license, contract, indenture, mortgage, deed of trust, note, loan or credit agreement, or any other agreement or instrument evidencing
an obligation for borrowed money, or any other agreement or instrument to which the Company is a party or by which the Company may be
bound or to which any of the properties or assets of the Company is subject the effect of which would have a Material Adverse Effect.
Except as described in the Offering Documents, the Company is not in violation of any material term or provision of its Certificate of
Incorporation or By-Laws or in material violation of any franchise, license, permit, applicable law, rule, regulation, judgment or decree
of any governmental agency or court, domestic or foreign, having jurisdiction over the Company or any of its properties or business.

 

     

     

    

 

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Private Placement Agent’s Agreement –Private Offering

August 18, 2022

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2.5.     Corporate Power; Licenses; Consents.

 

Conduct of Business. To the
best of its knowledge, the Company has all requisite corporate power and authority, and has all necessary authorizations, approvals, orders,
licenses, certificates and permits of and from all governmental regulatory officials, agencies, authorities and bodies to own or lease
its properties and conduct its business as described in the Offering Documents. The Company is and has been doing business in material
compliance with all such authorizations, approvals, orders, licenses, certificates and permits and all federal, state and local laws,
rules and regulations. The disclosures in the Offering Documents concerning the effects of federal, state and local regulation on the
Company’s business as currently conducted or contemplated to be conducted are correct in all material respects and do not omit to
state a material fact.

 

Transactions Contemplated Herein;
Consents. The Company has all corporate power and authority to enter into this Agreement, and the Subscription Agreements to carry out
the provisions and conditions hereof and thereof, and all consents, authorizations, approvals and orders required in connection therewith
have been obtained. Except as set forth in the Offering Documents, no consent, approval, authorization, order of, or filing with, any
court, governmental agency, authority or other body is required to consummate the transactions contemplated by this Agreement and the
Subscription Agreements, and the issuance of the securities, except that the offer and sale of the securities in certain jurisdictions
may be subject to the provisions of the securities or Blue Sky laws of such jurisdictions.

 

Title to Property; Insurance.
Except as set forth in the Offering Documents, the Company has good and marketable title to, or valid and enforceable leasehold estates
in, all items of real and personal property (tangible and intangible) owned or leased by it, free and clear of all liens, encumbrances,
claims, security interests, defects and restrictions of any material nature whatsoever. The Company has adequately insured its properties
against loss or damage by fire or other casualty and maintains such insurance in adequate amounts that are adequate to protect its financial
condition against the risks involved in the conduct of its businesses.

 

No Pending Actions. Except as
set forth in the Offering Documents, there are no actions, suits, proceedings, claims, or hearings of any kind or nature existing or pending
(or, to the best knowledge of the Company, threatened) or, to the best knowledge of the Company, any investigations or inquiries, before
or by any court, or other governmental authority, tribunal or instrumentality (or, the Company’s best knowledge, any state of facts
which would give rise thereto), pending or threatened against the Company, or involving the properties of the Company, which might result
in any Material Adverse Effect or which might materially adversely affect the transactions or other acts contemplated by this Agreement
or the validity or enforceability of this Agreement. Except as described in the Offering Documents, there are no outstanding orders, judgments
or decrees of any court, governmental agency or other tribunal naming the Company and enjoining the Company from taking, or requiring
the Company to take, any action, or to which the Company, its properties or business, is bound or subject.

 

     

     

    

 

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Due Incorporation, Qualification
and Good Standing. The Company has been duly incorporated, validly exists as a corporation and is in good standing under the laws of its
state of incorporation. The Company is duly qualified and licensed and in good standing as a foreign corporation for the transaction of
business and is in good standing in each jurisdiction in which the ownership or leasing of its properties or the conduct of its business
requires such qualification or licensing, except where the failure to qualify would not have a Material Adverse Effect. The Company has
all requisite corporate power and authority necessary to own or hold its properties and conduct its business as described in the Offering
Documents.

 

Taxes. Except as set forth in
the Offering Documents or as set forth on Schedule 3.15 hereto, the Company has filed all federal tax returns and all state and municipal
and local tax returns (whether relating to income, sales, franchise, withholding, real or personal property or other types of taxes) required
to be filed under the laws of the United States and applicable states, and has paid in full all taxes which have become due pursuant to
such returns or claimed to be due by any taxing authority or otherwise due and owing; provided, however, that the Company has not paid
any tax, assessment, charge, levy or license fee that it is contesting in good faith and by proper proceedings and adequate reserves for
the accrual of same are maintained if required by generally accepted accounting principles. Each of the tax returns heretofore filed by
the Company correctly and accurately reflects the amount of its tax liability thereunder. Except as set forth in the Offering Documents,
the Company has withheld, collected and paid all levies, assessments, license fees and taxes to the extent required. As used herein, “tax”
or “taxes” include all taxes, charges, fees, levies or other assessments imposed by any Federal, state, local, or foreign
taxing authority, including, without limitation, income, premium, recapture, credit, excise, property, sales, use, occupation, service,
service use, leasing, leasing use, value added, transfer, payroll, employment, license, stamp, franchise or similar taxes (including any
interest earned thereon or penalties or additions attributable thereto). The term “returns” means all returns, declarations,
reports, statements, and other documents required to be filed in respect of taxes.

 

2.6.     Non-Circumvent. The Company hereby irrevocably agrees not to circumvent, avoid, bypass, or obviate, directly or indirectly,
the intent of this Agreement through any transaction, transfer, pledge, agreement, recapitalization, loan, lease, assignment, or otherwise.
The Company (including affiliates of such parties) agrees that it will not attempt, directly or indirectly, to contact parties introduced
to the Company by the Placement Agent on matters described in this Agreement or contact or negotiate with any confidential source provided
by Network 1, except through Network 1 or with the expressed written consent of Network 1 as to each such contact. The Company shall not
contact, deal with, or otherwise become involved in any transaction with any corporation, partnership, individual, any banks, trust or
lending institutions introduced by or through Network 1 without the permission of Network 1. Any violation of this provision shall be
deemed an attempt to circumvent this provision, and the Company shall be liable for damages in favor of the circumvented party.

 

     

     

    

 

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Private Placement Agent’s Agreement –Private Offering

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2.7.     Transactions Affecting Disclosure to FINRA.

 

Finder’s Fees. The Company
is not obligated to pay a finder’s fee to anyone in connection with the introduction of the Company to the Placement Agent, or the
consummation of the Offering contemplated hereunder.

 

Use of Proceeds. None of the
net proceeds of the Offering will be paid by the Company to any FINRA member or its affiliate or associates, except as specifically authorized
herein.

 

2.8.     Foreign Corrupt Practices Act 

 

Neither
the Company nor any of its subsidiaries has, nor any director, officer, agent, employee or other person acting on behalf of the Company
or any subsidiary has in the course of his actions for or on behalf of the Company, used any corporate funds for any unlawful contribution,
gift, entertainment or other unlawful expenses relating to political activity; made any direct or indirect unlawful payment to any foreign
or domestic government official or employee from corporate funds; violated or is in violation of any provision of the U.S. Foreign Corrupt
Practices Act of 1977, as amended; or made any bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any foreign
or domestic government official or employee. Without limiting the generality of the foregoing, the Company and its subsidiaries have not
directly or indirectly made or agreed to make (whether or not said payment is lawful) any payment to obtain, or with respect to, sales
other than usual and regular compensation to its or their employees and sales representatives with respect to such sales.

 

3.19       Intangibles.
The Company owns or possesses the requisite licenses or rights to use all material trademarks, service marks, service names, trade names,
patents and patent applications, copyrights and other rights (collectively, “Intangibles”) used by the Company in its business
or relating to products sold by the Company, and all such Intangibles are stated in the Offering Documents. Any of the Company’s
Intangibles which have been registered in the United States Patent and Trademark Office have been fully maintained and are in full force
and effect, except where the failure to do so would not result in a Material Adverse Effect. There is no claim or action by any person
pertaining to, or proceeding pending or to the Company’s knowledge, threatened and the Company has not received any notice of conflict
with the asserted rights of others which challenges the exclusive right of the Company with respect to any Intangibles used in the conduct
of the Company’s business except as described in the Offering Documents or except where such challenge, even if successful, would
not result in a Material Adverse Effect. To the best of Company’s knowledge, the Intangibles and the Company’s current products,
services and processes do not infringe on any intangibles held by any third party. To the best of the Company’s knowledge, no others
have infringed upon the Intangibles of the Company.

 

     

     

    

 

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2.9.     Relations With Employees.

 

Employee Matters. The Company
has generally enjoyed a satisfactory employer-employee relationship with its employees and is in compliance in all material respects with
all federal, state and local laws and regulations respecting the employment of its employees and employment practices, terms and conditions
of employment and wages and hours relating thereto. There are no pending investigations involving the Company by the U.S. Department of
Labor, or any other governmental agency responsible for the enforcement of such federal, state or local laws and employment laws and regulations.
There is no unfair labor practice charge or complaint against the Company pending before a Labor Relations Board or any strike, picketing,
boycott, dispute, slowdown or stoppage pending or threatened against or involving the Company or any predecessor entity. No questions
concerning representation exist respecting the employees of the Company and no collective bargaining agreement or modification thereof
is currently being negotiated by the Company. No grievance or arbitration proceeding is pending under any expired or existing collective
bargaining agreements of the Company, if any.

 

Employee Benefit Plans. Except
as disclosed in the Offering Documents, the Company neither maintains, sponsors nor contributes to, nor is it required to contribute to,
any program or arrangement that is an “employee pension benefit plan, an employee welfare benefit plan,” or a “multi-employer
plan” as such terms are defined in Sections 3(2), 3(1) and 3(37), respectively, of the Employee Retirement Income Security Act of
1974, as amended (“ERISA”) (“ERISA Plans”). Other than as disclosed in the Offering Documents, the Company does
not, and has at no time, maintained or contributed to a defined benefit plan, as defined in Section 3(35) of ERISA. Except as disclosed
in the Offering Documents, there are no unfunded benefits under any ERISA Plan which is subject to the funding standards of ERISA. Other
than claims for benefits in the ordinary course, there are no pending claims, litigation, arbitration or any other legal proceeding involving
any ERISA Plan which may result in material liability on the part of the Company or any ERISA Plan under ERISA or any other law, nor,
is there any reasonable basis for such a claim. The Company has no bonus, incentive or deferred compensation plans which constitute a
continuing liability of the Company, except individual arrangements of the Company with employees relating to their employment. There
are no employees of the Company who, in connection with their employment by the Company, are receiving any pension or retirement payments
or are entitled to receive any unfunded pensions not covered by a pension plan to which the Company is a party.

 

     

     

    

 

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Environmental Matters. The Company and each of
its subsidiaries is in compliance in all material respects with all Environmental and Safety Requirements, and there are no proceedings
pending or, to the knowledge of the Company, threatened against the Company or any of its subsidiaries alleging any failure to so comply
or involving any of its past operations or any real property currently used by the Company or any of its subsidiaries. Neither the Company
nor any of its subsidiaries has received any written or oral notice or report with respect to it or its facilities regarding any (A) actual
or alleged violation of environmental and safety requirements or (B) actual or potential liability arising under Environmental and Safety
Requirements, including, without limitation, any investigatory, remedial or corrective obligation. Neither the Company nor any of its
subsidiaries has expressly assumed or undertaken any liability of any other person under any Environmental and Safety Requirements. Neither
the Company nor any of its subsidiaries has treated, stored, disposed of, arranged for or permitted the disposal of, transported, handled
or released any substance, or owned or operated any real property in a manner that has given rise to liabilities pursuant to CERCLA, SWDA
or any other Environmental and Safety Requirement, including any liability for response costs, corrective action costs, personal injury,
property damage, natural resources damage or attorney fees, or any investigative, corrective or remedial obligations. “Environmental
and Safety Requirements” means all laws, orders, contractual obligations and all common law concerning public health and safety,
worker health and safety, and pollution or protection of the environment, including, without limitation, all those relating to the presence,
use, production, generation, handling, transportation, treatment, storage, disposal, distribution, labeling, testing, processing, discharge,
release, threatened release, control or cleanup of any hazardous materials, substances or wastes, chemical substances or mixtures, pesticides,
pollutants, contaminants, toxic chemicals, petroleum products or byproducts, asbestos, polychlorinated biphenyls, noise or radiation,
including, but not limited to, the SWDA, the Clean Air Act, as amended, 42 U.S.C. §§ 7401 et seq., the Federal Water Pollution
Control Act, as amended, 33 U.S.C. §§ 1251 et seq., the Emergency Planning and Community Right-to-Know Act, as amended, 42 U.S.C.
 §§ 11001 et seq., CERCLA, the Hazardous Materials Transportation Uniform Safety Act, as amended, 49 U.S.C. §§ 5101
et seq., the Occupational Safety and Health Act of 1970, as amended, and the rules and regulations promulgated thereunder. “CERCLA”
means the Comprehensive Environmental Response, Compensation, and Liability Act, as amended, and the rules and regulations promulgated
thereunder. “SWDA” means the Solid Waste Disposal Act, as amended, and the rules and regulations promulgated thereunder.

 

No Regulatory Problems. The
Company (i) has not filed a registration statement which is the subject of any pending proceeding or examination under Section 8 of the
Securities Act, and is not and has not been the subject of any refusal order or stop order thereunder; (ii) is not subject to any pending
proceeding under Rule 258 of the Securities Act or any similar rule adopted under Section 3(b) of the Securities Act, or to an order entered
thereunder; (iii) has not been convicted of any felony or misdemeanor in connection with the purchase or sale of any security or involving
the making of any false filing with the Commission; (iv) is not subject to any order, judgment, or decree of any court of competent jurisdiction
temporarily or preliminarily restraining or enjoining, or any order, judgment, or decree of any court of competent jurisdiction permanently
restraining or enjoining, the Company from engaging in or continuing any conduct or practice in connection with the purchase or sale of
any security or involving the making of any false filing with the Commission; and (v) is not subject to a United States Postal Service
false representation order entered under Section 3005 of Title 39, United States Code; or a temporary restraining order or preliminary
injunction entered under Section 3007 of Title 39, United States Code, with respect to conduct alleged to have violated Section 3005 of
Title 39, United States Code.

 

     

     

    

 

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To the Company’s knowledge,
none of the Company’s directors, officers, or beneficial owners of five (5%) percent or more of any class of its equity securities
(i) has been convicted of any felony or misdemeanor in connection with the purchase or sale of any security, involving the making of a
false filing with the Commission, or arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities
dealer, or investment advisor; (ii) is subject to any order, judgment, or decree of any court of competent jurisdiction temporarily or
preliminarily enjoining or restraining, or is subject to any order, judgment, or decree of any court of competent jurisdiction, permanently
enjoining or restraining such person from engaging in or continuing any conduct or practice in connection with the purchase or sale of
any security, or involving the making of a false filing with the Commission, or arising out of the conduct of the business of an underwriter,
broker, dealer, municipal securities dealer, or investment adviser; (iii) is subject to an order of the Commission entered pursuant to
Section 15(b), 15B(a) or 15B(c) of the Exchange Act, or is subject to an order of the Commission entered pursuant to Section 203(e) or
(f) of the Investment Advisers Act of 1940; (iv) is suspended or expelled from membership in, or suspended or barred from association
with a member of, an exchange registered as a national securities exchange pursuant to Section 6 of the Exchange Act, an association registered
as a national securities association under Section 15A of the Exchange Act, or a Canadian securities exchange or association for any act
or omission to act constituting conduct inconsistent with just and equitable principles of trade; or (v) is subject to a United States
Postal Service false representation order entered under Section 3005 of Title 39, United States Code, or is subject to a restraining order
or preliminary injunction entered under Section 3007 of Title 39, United States Code, with respect to conduct alleged to have violated
Section 3005 of Title 39, United States Code.

 

Stock Collateral. None of the
Company’s obligations to any third party are secured by any of the Company’s outstanding securities other than the Security
Agreement as it relates to this offering.

 

Reaffirmation. All of the representations,
warranties and covenants of the Company set forth in this Agreement or in any letter or certificate furnished to Placement Agent pursuant
hereto, each of which is incorporated herein by reference and made a part hereof, shall be true in all material respects upon the execution
of this Agreement.

 

Representations and Warranties
of the Placement Agent. The Placement Agent represents and warrants as follows:

 

Due Incorporation. The Placement
Agent is duly incorporated and validly existing and in good standing under the laws of its state of incorporation and is duly qualified
as a foreign corporation for the transaction of business and is in good standing in each jurisdiction where the failure to be so qualified
would have a materially adverse effect on the business of the Placement Agent.

 

     

     

    

 

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Broker/Dealer Registration.
The Placement Agent is registered as a broker-dealer under Section 15 of the Exchange Act.

 

Good Standing with FINRA. The
Placement Agent is a member in good standing of the FINRA and no proceedings are pending or to the Placement Agent’s knowledge,
threatened, to revoke or limit such status.

 

Sale
in Certain Jurisdictions. Sales of Shares by the Placement Agent will be made only in such jurisdictions in which (i) the Placement Agent
is a registered broker-dealer or where an applicable exemption from such registration exists and (ii) the Offering and sale of the securities
is registered under, or is exempt from, applicable registration requirements.

 

Compliance with Laws. Offers
and sales of Shares by the Placement Agent will be made in compliance with the provisions of Rule 506 of Regulation D and/or Section 4(2)
of the Act, and the Placement Agent will furnish to each investor a copy of the Offering Documents prior to accepting any payments for
Shares.

 

2.9.1.     Sale to Accredited Investors, No General Solicitation.

 

The
Placement Agent understands that the securities have not been registered under the Securities Act or any Blue-Sky law of any state and
may not be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of
the Securities Act and such Blue Sky laws. The Placement Agent agrees that it will not solicit offers for, or offer or sell, the securities
by any form of general solicitation or general advertising within the meaning of Section 4(2) of the Securities Act, and Rule 506 thereunder.
The Placement Agent further agrees to not offer or sell or arrange for the offer or sale of the securities except (i) to those the Placement
Agent reasonably believes are “accredited investors” (as defined in Rule 501 of Regulation D), or (ii) in any other manner
that does not require registration of the securities under the Securities Act.

 

2.10.       Due Authorization.

 

The Placement Agent has all requisite power and
authority to execute, deliver and perform its obligations under this Agreement between the Company and the Placement Agent, and this Agreement
will be duly authorized and validly executed and delivered by the Placement Agent and constitutes a legal, valid and binding agreement
of the Placement Agent enforceable against the Placement Agent in accordance with its terms.

 

3.     
Closing.

 

At or prior to each closing,
and as a condition of the Placement Agent’s obligations hereunder, the following shall have been satisfied: (i) the Company shall
have delivered to the Placement Agent at the closing (a) a certificate of the Company, signed by two executive officers thereof, stating
the representations and warranties contained herein are true and correct as of the date of such closing as if, and to the same effect,
the warranties and representations were made on such date; (b) Subscription Agreements signed by the Company; (c) Consents of any party
required to consummate this Offering and the transactions contemplated thereby; and (d) such other closing documents as shall be reasonably
requested by the Placement Agent and/or its counsel.

 

     

     

    

 

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August 18, 2022

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3.1.1.      Placement Agent’s Fees and Expenses.

 

In
consideration of the services to be provided for hereunder, the Company shall pay to the Placement Agent the following compensation with
respect to the Securities which they are placing:

 

A
cash fee (the “Cash Fee”) equal to an aggregate of seven percent (7.0%) of the aggregate gross proceeds raised in the Placement,
plus an additional 3.5% cash non-accountable expense allowance fee on the aggregate gross.

 

The
Placement Agent will also receive a cash fee equal to 3% of all amounts received by the Company in connection with the exercise of the
Warrants, by Purchasers, issued in the offering.

 

3.1.2.      Exclusivity/Finder’s Fee.

 

In
the event that at any time prior to the Third (3rd) anniversary of the final Closing (as defined in the Placement Agent Agreement) the
Company or any of its affiliates shall enter into any transaction (including, without limitation, any merger, consolidation, acquisition,
financing, joint venture or other arrangement) with any party introduced to the Company by the Placement Agent, directly or indirectly,
during such period, the Placement Agent will be paid a transaction fee, payable at the closing thereof, equal to a percentage of the consideration
or value received by the Company and/or its stockholders as follows:

 

		(a)	5% of the first $1,000,000,

 

		(b)	4% of the next $1,000,000,

 

		(c)	3% of the next $1,000,000,

 

		(d)	2% of the next $1,000,000, and

 

		(e)	1% of all amounts in excess of $4,000,000.

 

The
Company agrees to pay to the Placement Agent the aforementioned finder's fee during the aforementioned time period, even in situations
where the consummation of the transaction at issue culminated not directly from the finder's initial introduction but indirectly from
a chain of introductions initiated by the finder's introduction. In no event shall the fees payable pursuant to this paragraph shall
exceed the maximum finder's fee allowed by the Financial Industry Regulatory Authority (“FINRA”) at the time of such transaction.

 

     

     

    

 

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3.2.     Right of First Refusal.

 

If the Company's Board of Directors authorizes
the Company to pursue a merger/acquisition opportunity involving the sale of all or substantially all of the Company's assets during the
period after the Memorandum has been distributed by the Placement Agent, the Placement Agent shall have the right of first refusal to
act as the Company's investment banker or financial advisor in connection with any such merger/acquisition, rendering such services as
are customary in connection therewith in consideration for a fee which is considered customary for such services.

 

For the 2 year period commencing on the
date of the Closing, Placement Agent shall have the right of first refusal (on terms at least as favorable as can be obtained from other
sources) to act as lead manager, co-manager, placement agent, or investment banker with respect to any proposed underwritten public distribution
or private placement of the Company's securities or any merger, acquisition, or disposition of assets of the Company, if the Company uses
a lead manager, co-manager, placement agent, investment banker, or other person performing such functions for a fee. Placement Agent will
advise the Company promptly, but in no event later than fifteen (15) days following the submission to Placement Agent writing of any such
proposed transaction(s), of Placement Agent’s election to exercise said right. If any such proposal is not accepted by Placement
Agent but later modified, the Company will re-submit such proposal to Placement Agent. Should Placement Agent elect, at any time not to
exercise said right this will not affect preferential rights for future financings.

 

Covenants. The Company covenants
and agrees that:

 

Expenses of Offering and Other
Expenses. The Company shall be responsible for, and shall pay, all fees, disbursements and expenses incurred in connection with the Offering,
including, but not limited to, the Company’s legal and accounting fees and disbursements, the costs of preparing, printing, mailing
and delivering, and filing, where necessary, the Offering Documents and all amendments and supplements thereto (in such quantities as
the Placement Agent may reasonably require), the costs of any “due diligence” meeting held by the Company as requested by
the Placement Agent, the fees and disbursements of the Placement Agent counsel.

 

6.2 Further Assurances.
The Company will take such actions as may be reasonably required or desirable to carry out the provisions of this Agreement and the transaction
contemplated hereby.

 

4.       Indemnification and Contribution.

 

Indemnification by the Company.
The Company agrees to indemnify and hold harmless the Placement Agent and each person, if any, who controls the Placement Agent within
the meaning of the Securities Act and/or the Exchange Act against any losses, claims, damages or liabilities, joint or several, to which
the Placement Agent or such controlling person may become subject, under the Securities Act or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement
of a material fact contained (A) in the Offering Documents, or (B) in any blue sky application or other document executed by the Company
specifically for blue sky purposes or based upon any other written information furnished by the Company or on its behalf to any state
or other jurisdiction in order to qualify any or all of the securities under the securities laws thereof (any such application, document
or information being hereinafter called a “Blue Sky Application”), (ii) any breach by the Company of any of its representations,
warranties or covenants contained herein or in any of the Subscription Agreements, or (iii) the omission or alleged omission by the Company
to state in the Offering Documents or in any Blue Sky Application a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading; and will reimburse the Placement Agent and
each such controlling person for any legal or other expenses reasonably incurred by the Placement Agent or such controlling person in
connection with investigating or defending any such loss, claim, damage, liability or action, whether arising out of an action between
the Placement Agent and a third party; provided, however, that the Company will not be liable in any such case to the extent that any
such loss, claim, damage or liability arises out of or is based upon (i) an untrue statement or alleged untrue statement or omission or
alleged omission made in reliance upon and in conformity with written information regarding the Placement Agent which is furnished to
the Company by the Placement Agent specifically for inclusion in the Offering Documents or any such Blue Sky Application or (ii) any breach
by the Placement Agent of the representations, warranties or covenants contained herein (together, (i) and (ii) above are referred to
as the “Non-indemnity Events”).

 

     

     

    

 

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Indemnification by the Placement
Agent. The Placement Agent agrees to indemnify and hold harmless the Company and each person, if any, who controls the Company within
the meaning of the Securities Act and/or the Exchange Act against any losses, claims, damages or liabilities, joint or several, to which
the Company or such controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities
(or actions in respect thereof) arise out of or are based upon any Non-Indemnity Event; and will reimburse the Company and each such controlling
person for any legal or other expenses reasonably incurred by the Company or such controlling person in connection with investigating
or defending any such loss, claim, damage, liability or action provided that such loss, claim, damage or liability is found ultimately
to arise out of or be based upon any Non-Indemnity Event.

 

Procedure. Promptly after receipt
by an indemnified party under this Section 7 of notice of the commencement of any action, such indemnified party will, if a claim in respect
thereof is to be made against any indemnifying party under this Section 7, notify in writing the indemnifying party of the commencement
thereof; and the omission so to notify the indemnifying party will relieve the indemnifying party from any liability under this Section
7 as to the particular item for which indemnification is then being sought, but not from any other liability which it may have to any
indemnified party. In case any such action is brought against any indemnified party, and it notifies an indemnifying party of the commencement
thereof, the indemnifying party will be entitled to participate therein, and to the extent that it may wish, jointly with any other indemnifying
party, similarly notified, to assume the defense thereof, with counsel who shall be to the reasonable satisfaction of such indemnified
party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying
party will not be liable to such indemnified party under this Section 7 for any legal or other expenses subsequently incurred by such
indemnified party in connection with the defense thereof. Any such indemnifying party shall not be liable to any such indemnified party
on account of any settlement of any claim or action effected without the consent of such indemnifying party.

 

     

     

    

 

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4.1.1.Notice.
Any notices required or permitted to be given hereunder shall be given in writing and shall be delivered (a) in person, (b) by certified
mail, postage prepaid, return receipt requested, (c) by facsimile, or (d) by a commercial overnight courier that guarantees next day delivery
and provides a receipt, and such notices shall be addressed as follows:

 

	 	If to Network 1 Financial Securities, Inc.: 	The Galleria 
 2 Bridge Avenue, Suite 241
 Red Bank, New Jersey 07701
 Attention: Damon Testaverde 
 Fax:  732-758-6671 
	 	 	 
	 	If to Renovare Environmental, Inc.: 	80 Red Schoolhouse Rd. Suite 101
 Chestnut Ridge, NY 10977
 Attention: Tony Fuller 
 Email: Tfuller@renovareenv.com 

 

 4.1.2.

 

Or to such other address as either party may from
time to time specify in writing to the other party. Any notice shall be effective only upon delivery, which for any notice given by facsimile
shall mean notice that has been received by the party to whom it is sent as evidenced by confirmation slip.

 

Contribution. If the indemnification
provided for in this Section 7 is unavailable to any indemnified party (other than as a result of the failure to notify the indemnifying
party as provided in Section 7.3 hereof) in respect to any losses, claims, damages, liabilities or expenses referred to therein, then
the indemnifying party, in lieu of indemnifying such indemnified party, will contribute to the amount paid or payable by such indemnified
party, as a result of such losses, claims, damages, liabilities or expenses (i) in such proportion as is appropriate to reflect the relative
benefits received by the Company on the one hand, and the Placement Agent, on the other hand, from the Offering, or (ii) if the allocation
provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative
benefits referred to in clause (i) above, but also the relative fault of the Company, on the one hand , and of the Placement Agent, on
the other hand, in connection with the statements or omissions which resulted in such losses, claims, damages, liabilities or expenses
as well as any other relevant equitable considerations. The relative benefits received by the Company, on the one hand, and the Placement
Agent, on the other hand, shall be deemed to be in the same proportion as the total proceeds from the Offering (net of sales commissions,
but before deducting other expenses) received by the Company bear to the commissions received by the Placement Agent. The relative fault
of the Company, on the one hand, and the Placement Agent, on the other hand, will be determined with reference to, among other things,
whether the untrue or alleged untrue statement of a material fact of the omission to state a material fact relates to information supplied
by the Company, on the one hand, and the Placement Agent, on the other hand, and their relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or omission.

 

     

     

    

 

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Equitable Considerations. The
Company and the Placement Agent agree that it would not be just and equitable if contribution pursuant to this Section 7 were determined
by pro rata allocation or by any method of allocation which does not take into account the equitable consideration referred to in the
immediately preceding paragraph. No person guilty of fraudulent misrepresentation (within the meaning of Section 11 (f) of the 1933 Act)
shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.

 

Attorneys’ Fees. The amount
payable by a party under this Section 7 as a result of the losses, claims, damages, liabilities or expenses referred to above will be
deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending
any action or claim (including, without limitation, fees and disbursements of counsel incurred by an indemnified party in any action or
proceeding between the indemnifying party and indemnified party or between the indemnified party and any third party or otherwise).

 

8.       Termination.

 

8.1.         Prior to Completion of Offering Documents and Commencement of Offering. Prior to the completion of the Offering Documents
and the commencement of the Offering, either party may terminate this Agreement by giving written notice to the other party.

 

8.2.         Following Completion of Offering Documents and Commencement of Offering. Following the completion of the Offering Documents
and the commencement of the Offering, each of the Company and the Placement Agent will have the right to terminate this Agreement by giving
written notice as herein specified, at any time, at or prior to the Initial Closing:

 

     

     

    

 

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(a)
if the other party shall have failed, refused, or been unable to perform any of its obligations hereunder, or breached any of its representations
or warranties hereunder; or 

 

(b)
if, in the Placement Agent’s or the Company’s reasonable opinion, there has occurred an event materially affecting the value
of the securities. 

 

8.3.         Reimbursement of Costs and Payment of Compensation Post-Termination. If the Company elects not to proceed with the Offering
for any reason other than the Placement Agent’s failure to complete the Offering, the Company shall pay Placement Agent in full:

 

(a)    The
sum of $2,000 in cash or cash equivalent for Placement Agent’s reasonable unaccountable expenses (including, without limitation,
its legal fees and disbursements) allowed under FINRA rules in regards to Offerings; and,

 

(b)    Omitted.

 

The
parties agree that this payment (the aforementioned 8.3(a) and 8.3(b)) constitute liquidated damages and

 

(1)      is Placement Agent’s exclusive monetary remedy for actual loss of compensation opportunity
in connection with this Offering; and, 

 

(2)      Is in full and final settlement of any Claim that Private Placement may have for Losses caused
by the Company’s termination of this Agreement on grounds other than that Placement Agent has failed, refused, or been unable
to perform any of its obligations or that Placement Agent has breached any of its representations or warranties under this Agreement;
and, 

 

(3)     That this Liquidated Damages Clause shall not limit the exercise by Company of its rights to
terminate the Agreement for material breach.

 

8.4.        Addition of two Board of Director Following the completion of the Offering Documents and the conclusion of the Offering,
the Company will grant the Placement Agent the right to appoint two independent Board of Directors at any time, at or prior to the Initial
Closing, subject to reappointment by the shareholders of the Company at following annual meetings.

 

Competing Claims. The Company acknowledges and agrees that the Placement Agent will not proceed to perform hereunder until it receives
assurances, in form and substance satisfactory to the Placement Agent and their counsel, that as of the first date that the Offering Documents
are presented to potential purchasers of the securities, there will be no claims or payments for services in the nature of a finder’s
fee with respect to the Offering or any other arrangements, agreements, payments, issuances or understandings that may affect the Placement
Agent’s compensation hereunder other than any claims that may be made by the Placement Agent’s own personnel. The Placement
Agent shall compensate any of its personnel who may have acted in such capacities, as it shall determine.

 

     

     

    

 

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9.       Miscellaneous.

 

(a)              
Governing Law. This Agreement will be deemed to have been made and delivered in the State of New York and will be governed
as to validity, interpretation, construction, effect and in all other respects by the internal law of the State of New York, without regard
to principles of conflicts of law. The Company (i) agrees that any legal suit, action or proceeding arising out of or relating to this
Agreement shall be instituted exclusively in the Supreme Court of New York, or in the United States District Court for the Southern District
of New York, (ii) waives any objection to the venue of any such suit, action or proceeding, and the right to assert that such forum is
an inconvenient forum, and (iii) irrevocably consents to the jurisdiction of the Supreme Court of New York, and the United States District
Court for the Southern District of New York in any such suit, action or proceeding. The Company further agrees to accept and acknowledge
service of any and all process which may be served in any such suit, action or proceeding in the Supreme Court of New York or the United
States District Court for the Southern District of New York and agrees that service of process upon it mailed by certified mail to its
address shall be deemed in every respect effective service of process upon it in any such suit, action or proceeding.

 

(b)           Counterparts. This Agreement may be executed in any number of counterparts each of which shall be deemed an original and
all of which together shall constitute one and the same instrument.

 

(c)           Parties. This Agreement will inure to the benefit of and be binding upon the parties hereto and their respective successors
and assigns. Neither party may assign this Agreement or its obligations hereunder without the prior written consent of the other party.
This Agreement is intended to be, and is, for the sole and exclusive benefit of the parties hereto and the persons described in Section
7 hereof and their respective successors and assigns, and for the benefit of no other person, and no other person will have any legal
or equitable right, remedy or claim under, or in respect of this Agreement.

 

(d)           Amendment and/or Modification. Neither this Agreement, nor any term or provision hereof, may not be changed, waived, discharged,
amended, modified or terminated orally, or in any manner other than by an instrument in writing signed by each of the parties hereto.

 

     

     

    

 

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(e)           Validity. In case any term of this Agreement will be held invalid, illegal or unenforceable, in whole or in part, the validity
of any of the other terms of this Agreement will not in any way be affected thereby.

 

(f)            Waiver of Breach. The failure of any party hereto to insist upon strict performance of any of the covenants and agreements
herein contained, or to exercise any option or right herein conferred in any one or more instances, will not be construed to be a waiver
or relinquishment of any such option or right, or of any other covenants or agreements, and the same will be and remain in full force
and effect.

 

(g)           Further Assurances. Each party to this Agreement will perform any and all acts and execute any and all documents as may
be necessary and proper under the circumstances in order to accomplish the intents and purposes of this Agreement and to carry out its
provisions.

 

11.     Entire
Agreement. This Agreement contains the entire agreement and understanding of the parties
with respect to the subject matter hereof and thereof, respectively, and there are no representations, inducements, promises or agreements,
oral or otherwise, not embodied in this Agreement. Any and all prior discussions, negotiations, commitments and understanding relating
to the subject matter of these agreements are superseded by them.

 

 

 

 

 

 

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Renovare Environmental, Inc.

Private Placement Agent’s Agreement –Private Offering

August 18, 2022

Page
23 of 23

 

If Renovare Environmental,
Inc. finds the foregoing is in accordance with its understanding with Network 1 Financial Securities, Inc., kindly
sign and return to Network 1 Financial Securities, Inc. a counterpart hereof, whereupon this instrument along with all counterparts
will become a binding agreement between Renovare Environmental, Inc. and Network 1 Financial Securities, Inc.

 

 

NETWORK 1 FINANCIAL SECURITIES, INC.

 

 

	By:  /s/ Damon D Testaverde	 
	 	Damon D. Testaverde	 
	 	Managing Director	 

 

 

AGREED
TO BY Renovare Environmental, Inc.; this 18th day of August 2022.

 

Renovare Environmental, Inc.

 

 

	By:  /s/ Brian C. Essman	 
	 	Brian C. Essman	 
	 	Chief Financial Officerex_422213.htm

 

Exhibit 4.1

 

 

NEITHER THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY STATE SECURITIES OR BLUE SKY LAWS. THE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THE COMPANY MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE COMPANY TO THE EFFECT THAT ANY PROPOSED TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT. THIS SECURITY IS SUBJECT TO THE TRANSFER RESTRICTIONS SET FORTH HEREIN AND IN THE SECURITIES PURCHASE AGREEMENT, DATED AUGUST 8, 2019, AS AMENDED FROM TIME TO TIME, COPIES OF WHICH ARE AVAILABLE WITH THE SECRETARY OF THE COMPANY. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

AMENDED COMMON STOCK PURCHASE WARRANT

 

NOVABAY PHARMACEUTICALS, INC.

 

	Warrant Shares: [_______]	Original Issue Date: July 23, 2020

 

THIS COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received, [_____________] or its assigns (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time (x) on or after the later of (i) the six (6) month anniversary of September 9, 2022 and (ii) the Stockholder Approval Date (as defined in the Reprice Letter Agreement, dated September 9, 2022, between the Holder and the Company, as defined below (the “Reprice Letter”)) (the latter of such dates being herein after referred to as the “Initial Exercise Date”) and (y) on or prior to 5:00 p.m. (New York City time) on January 23, 2026 (the “Termination Date”) but not thereafter, to subscribe for and purchase from NovaBay Pharmaceuticals, Inc., a Delaware corporation (the “Company”), up to [______] shares (as subject to adjustment hereunder, the “Warrant Shares”) of Common Stock. The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).

 

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Section 1.         Definitions. Capitalized terms used and not otherwise defined herein shall have the meanings set forth in (x) that certain Securities Purchase Agreement (the “Purchase Agreement”), dated August 8, 2019, among the Company and the purchasers signatory thereto, and (y) the Reprice Letter.

 

Section 2.         Exercise.

 

a)    Exercise of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company of a duly executed facsimile copy or PDF copy submitted by e-mail (or e-mail attachment) of the Notice of Exercise in the form attached hereto as Exhibit A (the “Notice of Exercise”). Within the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period (as defined in Section 2(d)(i) herein) following the date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the shares specified in the applicable Notice of Exercise by wire transfer or cashier’s check drawn on a United States bank, unless the cashless exercise procedure specified in Section 2(c) below is specified in the applicable Notice of Exercise. No ink-original Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise be required. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading Days of the date on which the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise within one (1) Business Day of receipt of such notice. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.

 

b)    Exercise Price. The exercise price per share of Common Stock under this Warrant shall be $0.18, subject to adjustment hereunder (the “Exercise Price”).

 

c)    Cashless Exercise. After the later of (x) the six month anniversary of the Closing Date and (y) the Stockholder Approval Date, if there is no effective registration statement registering, or no current prospectus available for, the resale of the Warrant Shares by the Holder, then this Warrant may also be exercised, in whole or in part, at such time by means of a “cashless exercise” in which the Holder shall be entitled to receive a number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

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(A) = as applicable: (i) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice of Exercise is (1) both executed and delivered pursuant to Section 2(a) hereof on a day that is not a Trading Day or (2) both executed and delivered pursuant to Section 2(a) hereof on a Trading Day prior to the opening of “regular trading hours” (as defined in Rule 600(b)(64) of Regulation NMS promulgated under the federal securities laws) on such Trading Day, (ii) at the option of the Holder, either (y) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise or (z) the Bid Price of the Common Stock on the principal Trading Market as reported by Bloomberg L.P. as of the time of the Holder's execution of the applicable Notice of Exercise if such Notice of Exercise is executed during “regular trading hours” on a Trading Day and is delivered within two (2) hours thereafter (including until two (2) hours after the close of “regular trading hours” on a Trading Day) pursuant to Section 2(a) hereof or (iii) the VWAP on the date of the applicable Notice of Exercise if the date of such Notice of Exercise is a Trading Day and such Notice of Exercise is both executed and delivered pursuant to Section 2(a) hereof after the close of “regular trading hours” on such Trading Day;

 

(B) = the Exercise Price of this Warrant, as adjusted hereunder; and

 

(X) = the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather than a cashless exercise.

 

If Warrant Shares are issued in such a cashless exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9) of the Securities Act, the Warrant Shares shall take on the characteristics of the Warrants being exercised, and the holding period of the Warrant Shares being issued may be tacked on to the holding period of this Warrant.  The Company agrees not to take any position contrary to this Section 2(c).

 

“Bid Price” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the bid price of the Common Stock for the time in question (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b)  if OTCQB or OTCQX is not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported on the Pink Open Market (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Purchasers of a majority in interest of the Securities then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

 

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“VWAP” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b)  if OTCQB or OTCQX is not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported on the Pink Open Market (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Purchasers of a majority in interest of the Securities then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

 

d)        Mechanics of Exercise.

 

i.    Delivery of Warrant Shares Upon Exercise. The Company shall cause the Warrant Shares purchased hereunder to be transmitted by the Transfer Agent to the Holder by crediting the account of the Holder’s or its designee’s balance account with The Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant in such system and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by the Holder or (B) the Warrant Shares are eligible for resale by the Holder without volume or manner-of-sale limitations pursuant to Rule 144 (assuming cashless exercise of the Warrants), and otherwise by physical delivery of a certificate, registered in the Company’s share register in the name of the Holder or its designee, for the number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the address specified by the Holder in the Notice of Exercise by the date that is the earliest of (i) two (2) Trading Days after the delivery to the Company of the Notice of Exercise, (ii) one (1) Trading Day after delivery of the aggregate Exercise Price to the Company and (iii) the number of Trading Days comprising the Standard Settlement Period after the delivery to the Company of the Notice of Exercise (such date, the “Warrant Share Delivery Date”). Upon delivery of the Notice of Exercise, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date of delivery of the Warrant Shares, provided that payment of the aggregate Exercise Price (other than in the case of a cashless exercise) is received within the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period following delivery of the Notice of Exercise. If the Company fails for any reason to deliver to the Holder the Warrant Shares subject to a Notice of Exercise by the Warrant Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares subject to such exercise (based on the VWAP of the Common Stock on the date of the applicable Notice of Exercise), $2.50 per Trading Day (increasing to $15 per Trading Day on the fifth Trading Day after such liquidated damages begin to accrue) for each Trading Day after such Warrant Share Delivery Date until such Warrant Shares are delivered or Holder rescinds such exercise. The Company agrees to maintain a transfer agent that is a participant in the FAST program so long as this Warrant remains outstanding and exercisable. As used herein, “Standard Settlement Period” means the standard settlement period, expressed in a number of Trading Days, on the Company’s primary Trading Market with respect to the Common Stock as in effect on the date of delivery of the Notice of Exercise.

 

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ii.    Delivery of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant.

 

iii.    Rescission Rights. If the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise.

 

iv.    Compensation for Buy-In on Failure to Timely Deliver Warrant Shares Upon Exercise. In addition to any other rights available to the Holder, if the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares in accordance with the provisions of Section 2(d)(i) above pursuant to an exercise on or before the Warrant Share Delivery Date, and if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (1) the number of Warrant Shares that the Company was required to deliver to the Holder (up to the number of shares of Common Stock required to be purchased by the Holder or its broker for the Buy-In) in connection with a valid exercise, and (2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored (in which case such exercise shall be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof.

 

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v.    No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price or round up to the next whole share.

 

vi.    Charges, Taxes and Expenses. Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses shall be paid by the Company, and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed by the Holder in the Notice of Exercise; provided, however, that in the event that Warrant Shares are to be issued in a name other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto as Exhibit B duly executed by the Holder and the Company shall have the right to require, as a condition thereto, the prior or contemporaneous payment of a sum sufficient to reimburse it for any transfer tax incidental thereto. The Company shall pay all Transfer Agent fees required for same-day processing of any Notice of Exercise and all fees to the Depository Trust Company (or another established clearing corporation performing similar functions) required for same-day electronic delivery of the Warrant Shares, in each case, to the extent available.

 

vii.    Closing of Books. The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this Warrant, pursuant to the terms hereof.

 

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e)         Holder’s Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder’s Affiliates (such Persons, “Attribution Parties”)), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Attribution Parties shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its Attribution Parties and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any other Common Stock Equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Attribution Parties.  Except as set forth in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation contained in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Attribution Parties) and of which portion of this Warrant is exercisable up to the Beneficial Ownership Limitation shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s good faith determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Attribution Parties) and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination and shall have no liability for exercises of the Warrant that are not in compliance with the Beneficial Ownership Limitation. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, and the Company shall have no obligation to verify or confirm the accuracy of such determination and shall have no liability for exercises of the Warrant that are not in compliance with the Beneficial Ownership Limitation. For purposes of this Section 2(e), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding.  Upon the written request of a Holder, the Company shall within one (1) Trading Day confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or Attribution Parties since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant. The Holder, upon prior written notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 2(e), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon exercise of this Warrant held by the Holder and the provisions of this Section 2(e) shall continue to apply. Any such increase or decrease in the Beneficial Ownership Limitation will apply only to the Holder and not to any other holder of Warrants. Any such increase in the Beneficial Ownership Limitation will not be effective until the 61st day after such notice is delivered to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. Notwithstanding the foregoing, the provisions of this Section 2(e) shall not apply to any Holder (together with such Holder’s Attribution Parties and any other Persons acting as a group together) who beneficially owns in excess of the Maximum Percentage of the shares of Common Stock outstanding as of the Issue Date. The limitations contained in this paragraph shall apply to a successor holder of this Warrant.

 

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Section 3.         Certain Adjustments.

 

a)    Stock Dividends and Splits. If the Company, at any time on or after the date of the Purchase Agreement and while this Warrant is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares or (iv) issues by reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the date such dividend or distribution occurs and shall become effective immediately after the effective date in the case of a subdivision, combination or re‐classification.

 

b)    Subsequent Rights Offerings. In addition to any adjustments pursuant to Section 3(a) above, if at any time the Company grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights (provided, however, that, to the extent that the Holder’s right to participate in any such Purchase Right would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

c)    Pro Rata Distributions. During such time as this Warrant is outstanding, if the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”), at any time after the issuance of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution (provided, however, that, to the extent that the Holder's right to participate in any such Distribution would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership of any shares of Common Stock as a result of such Distribution to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

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d)    Fundamental Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off, merger or scheme of arrangement) with another Person or group of Persons whereby such other Person or group acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard to any limitation in Section 2(e) on the exercise of this Warrant), the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 2(e) on the exercise of this Warrant). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction. Notwithstanding anything to the contrary, in the event of a Fundamental Transaction, the Company or any Successor Entity (as defined below) shall, at the Holder’s option, exercisable at any time concurrently with, or within 30 days after, the consummation of the Fundamental Transaction (or, if later, the date of the public announcement of the applicable Fundamental Transaction), purchase this Warrant from the Holder by paying to the Holder an amount of cash equal to the Black Scholes Value (as defined below) of the remaining unexercised portion of this Warrant on the date of the consummation of such Fundamental Transaction; provided, however, that if the Fundamental Transaction is not within the Company’s control, including not approved by the Board of Directors, the Holder shall only be entitled to receive from the Company or any Successor Entity, the same type or form of consideration (and in the same proportion), at the Black Scholes Value of the unexercised portion of the Warrant, that is being offered and paid to the holders of Common Stock of the Company in connection with the Fundamental Transaction, whether that consideration be in the form of cash, stock or any combination thereof, or whether the holders of Common Stock are given the choice to receive from among alternative forms of consideration in connection with the Fundamental Transaction.  “Black Scholes Value” means the value of this Warrant based on the Black-Scholes Option Pricing Model obtained from the “OV” function on Bloomberg, L.P. (“Bloomberg”) determined as of the day of consummation of the applicable Fundamental Transaction for pricing purposes and reflecting (A) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the time between the date of the public announcement of the applicable Fundamental Transaction and the Termination Date, (B) an expected volatility equal to the greater of 100% and the 100 day volatility obtained from the HVT function on Bloomberg (determined utilizing a 365 day annualization factor) as of the Trading Day immediately following the public announcement of the applicable Fundamental Transaction, (C) the underlying price per share used in such calculation shall be the greater of (i) the sum of the price per share being offered in cash, if any, plus the value of any non-cash consideration, if any, being offered in such Fundamental Transaction and (ii) the greater of (x) the last VWAP immediately prior to the public announcement of such Fundamental Transaction and (y) the last VWAP immediately prior to the consummation of such Fundamental Transaction, (D) a remaining option time equal to the time between the date of the public announcement of the applicable Fundamental Transaction and the Termination Date, and (E) a zero cost of borrow. The payment of the Black Scholes Value will be made by wire transfer of immediately available funds within five Business Days of the Holder’s election (or, if later, on the effective date of the Fundamental Transaction). The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company under this Warrant and the other Transaction Documents in accordance with the provisions of this Section 3(d) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the exercise price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for the Company (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents referring to the “Company” shall refer instead to the Successor Entity), and the Successor Entity may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Warrant and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Company herein.

 

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e)    Calculations. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be. For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.

 

f)    Notice to Holder.

 

i.    Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly deliver to the Holder by facsimile or email a notice setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.

 

ii.    Notice to Allow Exercise by Holder. If during the term in which the Warrant may be exercised (A) the Company shall declare a dividend (or any other distribution in whatever form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be delivered by facsimile or email to the Holder at its last facsimile number or email address as it shall appear upon the Warrant Register of the Company, at least 20 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate action required to be specified in such notice. To the extent that any notice provided in this Warrant constitutes, or contains, material, non-public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled to exercise this Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.

 

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Section 4.         Transfer of Warrant.

 

a)    Transferability. Subject to compliance with any applicable securities laws and the conditions set forth in Section 4(d) hereof and to the provisions of Section 4.1 of the Purchase Agreement, this Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company unless the Holder has assigned this Warrant as provided herein, in which case, the Holder shall surrender this Warrant to the Company within three (3) Trading Days of the date on which the Holder delivers an Assignment Form (in the form attached hereto as Exhibit B) to the Company assigning this Warrant. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued. New Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the original Issue Date and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto.

 

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b)    Warrant Register. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.

 

c)    Transfer Restrictions. If, at the time of the surrender of this Warrant in connection with any transfer of this Warrant, the transfer of this Warrant shall not be either (i) registered pursuant to an effective registration statement under the Securities Act and under applicable state securities or blue sky laws or (ii) eligible for resale without volume or manner-of-sale restrictions or current public information requirements pursuant to Rule 144, the Company may require, as a condition of allowing such transfer, that the Holder or transferee of this Warrant, as the case may be, comply with the provisions of Section 5.7 of the Purchase Agreement.

 

d)    Representation by the Holder. The Holder, by the acceptance hereof, represents and warrants that it is acquiring this Warrant and, upon any exercise hereof, will acquire the Warrant Shares issuable upon such exercise, for its own account and not with a view to or for distributing or reselling such Warrant Shares or any part thereof in violation of the Securities Act or any applicable state securities law, except pursuant to sales registered or exempted under the Securities Act.

 

Section 5.         Miscellaneous.

 

a)    No Rights as Stockholder Until Exercise; No Settlement in Cash. This Warrant does not entitle the Holder to any voting rights, dividends or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except as expressly set forth in Section 3. Without limiting any rights of a Holder to receive Warrant Shares on a “cashless exercise” pursuant to Section 2(c) or to receive cash payments pursuant to Section 2(d)(i) and Section 2(d)(iv) herein, in no event shall the Company be required to net cash settle an exercise of this Warrant.

 

b)    Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate.

 

c)    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.

 

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d)    Authorized Shares.

 

The Company covenants that, following the Stockholder Approval Date, and during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant. The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of issuing the necessary Warrant Shares upon the exercise of the purchase rights under this Warrant. The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of the Trading Market upon which the Common Stock may be listed. The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue).

 

Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the generality of the foregoing, the Company will, so long as any of the Warrants are outstanding, (i) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.

 

Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof.

 

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e)    Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be determined in accordance with the provisions of the Purchase Agreement.

 

f)    Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered and the Holder does not utilize cashless exercise, will have restrictions upon resale imposed by state and federal securities laws.

 

g)    Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies. Without limiting any other provision of this Warrant or the Purchase Agreement, if the Company willfully and knowingly fails to comply with any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.

 

h)    Notices. Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered in accordance with the notice provisions of the Purchase Agreement.

 

i)    Limitation of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.

 

j)    Remedies. The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate.

 

k)    Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and shall be enforceable by the Holder or holder of Warrant Shares.

 

l)    Amendment. This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holder.

 

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m)    Severability. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant.

 

n)    Headings. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.

 

********************

 

 

(Signature Page Follows)

 

 

15

 

 

IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.

 

 

	
			 

				
			NOVABAY PHARMACEUTICALS, INC.

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			 

				
			 

			
	
			 

				
			 

				
			Name: Justin Hall

				
			 

			
	
			 

				
			 

				
			Title: Chief Executive Officer and General Counsel

				
			 

			

 

16

 

 

 

EXHIBIT A

 

NOTICE OF EXERCISE

 

TO:         NOVABAY PHARMACEUTICALS, INC.

 

(1)    The undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.

 

(2)    Payment shall take the form (check applicable box):

 

☐ in lawful money of the United States; or

 

☐ if permitted the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 2(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in subsection 2(c).

 

(3)    Please issue said Warrant Shares in the name of the undersigned or in such other name as is specified below:

 

_______________________________

 

 

The Warrant Shares shall be delivered to the following DWAC Account Number:

 

Broker Name:                           _______________________________

 

Broker DTC DWAC #:            _______________________________

 

Broker Contact:                       _______________________________

 

Account #:                              _______________________________

 

(4)   Accredited Investor. The undersigned is an “accredited investor” as defined in Regulation D promulgated under the Securities Act of 1933, as amended.

 

[SIGNATURE OF HOLDER]

 

Name of Investing Entity: ________________________________________________________________________

Signature of Authorized Signatory of Investing Entity: _________________________________________________

Name of Authorized Signatory: ___________________________________________________________________

Title of Authorized Signatory: ____________________________________________________________________

Date: ________________________________________________________________________________________

 

 

 

 

EXHIBIT B

 

ASSIGNMENT FORM

(To assign the foregoing Warrant, execute this form and supply required information. Do not use this form to purchase shares.)

 

FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

	
			Name:

				 	 
	 	 	
			(Please Print)

			
	
			 

				 	 
	Address:	 	 
	
			 

				 	
			(Please Print)

			
	 	 	 
	Phone Number:	 	 
	 	 	 
	Email Address:	 	 
	 	 	 
	
			Dated: _______________ __, ______

				 	 
	 	 	 
	
			Holder’s Signature:                                    

				 	 
	 	 	 
	
			Holder’s Address:

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