Document:

Two Rivers Water & Farming Company 8-K

 

Exhibit 10.1

 

EQUITY PURCHASE AGREEMENT

This equity purchase
agreement is entered into as of September 14, 2017 (this “Agreement”), by and between Two Rivers Water &
Farming Company, a Colorado corporation (the “Company”), and Spotfin Funding LLC, a Florida limited liability
company (the “Investor”).

WHEREAS, the
parties desire that, upon the terms and subject to the conditions contained herein, the Company shall issue and sell to the Investor,
from time to time as provided herein, and the Investor shall purchase up to Five Million Dollars ($5,000,000) of the Company’s
Common Stock (as defined below);

NOW, THEREFORE,
the parties hereto agree as follows:

ARTICLE I

CERTAIN DEFINITIONS

Section 1.1 

DEFINED TERMS.
As used in this Agreement, the following terms shall have the following meanings specified or indicated (such meanings to be equally
applicable to both the singular and plural forms of the terms defined):

“Agreement”
shall have the meaning specified in the preamble hereof.

“Average
Daily Trading Value” shall mean the average trading volume of the Company’s Common Stock in the five (5) Trading
Days immediately preceding the respective Put Date multiplied by the lowest daily VWAP price of the Company’s Common Stock
on the Principal Market in the five (5) Trading Days immediately preceding the respective Put Date.

“Bankruptcy
Law” means Title 11, U.S. Code, or any similar federal or state law for the relief of debtors.

“Claim
Notice” shall have the meaning specified in Section 9.3(a).

“Clearing Date” shall
be the date on which the Investor receives the Put Shares as DWAC Shares in its brokerage account.

“Closing” shall mean
one of the closings of a purchase and sale of shares of Common Stock pursuant to Section 2.3.

“Closing Certificate”
shall mean the closing certificate of the Company in the form of Exhibit B hereto.

“Closing Date” shall mean the date of any
Closing hereunder.

“Commitment
Period” shall mean the period commencing on the Execution Date, and ending on the earlier of (i) the date on which the
Investor shall have purchased Put Shares pursuant to this Agreement equal to the Maximum Commitment Amount, (ii) the date in which
the Registration Statement is no longer effective, (iii) 36 months after the initial effectiveness of the Registration Statement,
or (iv) written notice of termination by the Company to the Investor (which shall not occur at any time that the Investor holds
any of the Put Shares or Commitment Shares).

“Commitment
Shares” shall mean an amount of shares of the Company’s common stock equal to a total value of $150,000 as calculated
pursuant to this Agreement, deemed to be issued by the Company to the Investor on September 14, 2017, as a commitment fee, subject
to the terms of this Agreement.

    	 

    	 

    

  

“Common
Stock” shall mean the Company’s common stock, $0.001 par value per share, and any shares of any other class of
common stock whether now or hereafter authorized, having the right to participate in the distribution of dividends (as and when
declared) and assets (upon liquidation of the Company).

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

“Company” shall have the meaning specified
in the preamble to this Agreement.

“Company Minimum Price”
shall mean 85% of the closing price of the Common Stock on the Principal Market on (i) the Put Date if the Put Notice is delivered
after the close of the Principal Market, or (ii) the last Trading Day immediately prior to the Put Date if the Put Notice is delivered
prior to the closing of the Principal Market.

“Custodian”
means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.

“Damages”
shall mean any loss, claim, damage, liability, cost and expense (including, without limitation, reasonable attorneys’ fees
and disbursements and costs and expenses of expert witnesses and investigation).

“Dispute Period” shall have the meaning
specified in Section 9.3(a).

“DTC” shall mean
The Depository Trust Company, or any successor performing substantially the same function for the Company.

“DTC/FAST
Program” shall mean the DTC’s Fast Automated Securities Transfer Program.

“DWAC”
shall mean Deposit Withdrawal at Custodian as defined by the DTC.

“DWAC
Eligible” shall mean that (a) the Common Stock is eligible at DTC for full services pursuant to DTC’s Operational
Arrangements, including, without limitation, transfer through DTC’s DWAC system, (b) the Company has been approved (without
revocation) by the DTC’s underwriting department, (c) the Transfer Agent is approved as an agent in the DTC/FAST Program,
(d) the Commitment Shares or Put Shares, as applicable, are otherwise eligible for delivery via DWAC, and (e) the Transfer Agent
does not have a policy prohibiting or limiting delivery of the Commitment Shares or Put Shares, as applicable, via DWAC.

“DWAC
Shares” means shares of Common Stock that are (i) issued in electronic form, (ii) freely tradable and transferable and
without restriction on resale and (iii) timely credited by the Company to the Investor’s or its designee’s specified
DWAC account with DTC under the DTC/FAST Program, or any similar program hereafter adopted by DTC performing substantially the
same function.

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

“Exchange
Cap” shall have the meaning set forth in Section 7.1(c).

“Execution
Date” shall mean the date of this Agreement.

“FINRA”
shall mean the Financial Industry Regulatory Authority, Inc.

“Investment Amount” shall
mean the Put Shares referenced in the Put Notice multiplied by the Purchase Price.

 

    	 

    	 

    

  

“Indemnified
Party” shall have the meaning specified in Section 9.2.

“Indemnifying
Party” shall have the meaning specified in Section 9.2.

“Indemnity
Notice” shall have the meaning specified in Section 9.3(e).

“Investor”
shall have the meaning specified in the preamble to this Agreement.

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

“Market
Price” shall mean the lowest daily VWAP of the Common Stock on the Principal Market for any Trading Day during the Valuation
Period as provided herein, as reported a reputable source.

“Material
Adverse Effect” shall mean any effect on the business, operations, properties, or financial condition of the Company
and the Subsidiaries that is material and adverse to the Company and the Subsidiaries and/or any condition, circumstance, or situation
that would prohibit or otherwise materially interfere with the ability of the Company to enter into and perform its obligations
under any Transaction Document.

“Maximum
Commitment Amount” shall mean Five Million Dollars ($5,000,000).

“Minimum Share Price”
shall equal $0.01 per share, or such lower number as the Investor may determine at its sole discretion.

“Person”
shall mean an individual, a corporation, a partnership, an association, a trust or other entity or organization, including a government
or political subdivision or an agency or instrumentality thereof.

“Principal
Market” shall mean any of the national exchanges (i.e. NYSE, NYSE AMEX, Nasdaq), or principal quotation systems (i.e.
OTCQX, OTCQB, OTC Pink, the OTC Bulletin Board), or other principal exchange or recognized quotation system which is at the time
the principal trading platform or market for the Common Stock.

“Purchase
Price” shall mean 85% of the Market Price on such date on which the Purchase Price is calculated in accordance with the
terms and conditions of this Agreement.

“Put”
shall mean the right of the Company to require the Investor to purchase shares of Common Stock, subject to the terms and conditions
of this Agreement.

“Put Date”
shall mean any Trading Day during the Commitment Period that a Put Notice is deemed delivered pursuant to Section 2.2(b).

“Put Notice”
shall mean a written notice, substantially in the form of Exhibit A hereto, to Investor setting forth the Put Shares which
the Company intends to require Investor to purchase pursuant to the terms of this Agreement.

“Put Shares”
shall mean all shares of Common Stock issued, or that the Company shall be entitled to issue, per any applicable Put Notice in
accordance with the terms and conditions of this Agreement.

“Registration
Rights Agreement” shall mean that certain registration rights agreement between the Company and the Investor dated September
14, 2017.

“Registration
Statement” shall have the meaning specified in Section 6.4.

“Regulation
D” shall mean Regulation D promulgated under the Securities Act.

 

    	 

    	 

    

  

“Required
Minimum” shall mean, as of any date, the greater of (i) 5,000,0000 shares of Common Stock or (ii) the maximum aggregate
number of shares of Common Stock then issued or potentially issuable in the future for the Commitment Shares (if still applicable)
and the next Put Notice.

“Rule
144” shall mean Rule 144 under the Securities Act or any similar provision then in force under the Securities Act.

“SEC”
shall mean the United States Securities and Exchange Commission.

“SEC Documents”
shall have the meaning specified in Section 4.5.

“Securities”
means, collectively, the Put Shares and the Commitment Shares.

“Securities
Act” shall mean the Securities Act of 1933, as amended.

“Short Sales” shall
mean all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act.

“Subsidiary”
means any Person the Company wholly-owns or controls, or in which the Company, directly or indirectly, owns a majority of the voting
stock or similar voting interest, in each case that would be disclosable pursuant to Item 601(b)(21) of Regulation S-K promulgated
under the Securities Act.

“Third
Party Claim” shall have the meaning specified in Section 9.3(a).

“Trading
Day” shall mean a day on which the Principal Market shall be open for business.

“Transaction
Documents” shall mean this Agreement and all schedules and exhibits hereto and thereto.

“Transfer
Agent” shall mean Broadridge Financial Solutions, Inc., the current transfer agent of the Company, with a mailing address
1717 Arch Street, Suite 1300, Philadelphia, PA 19103, and any successor transfer agent of the Company.

“Transfer
Agent Instruction Letter” means the letter from the Company to the Transfer Agent which instructs the Transfer Agent
to issue the Put Shares and the Commitment Shares pursuant to the Transaction Documents, in the form of Exhibit C attached
hereto.

“Valuation
Period” shall mean the period of five (5) Trading Days following the Clearing Date associated with the applicable Put
Notice during which the Purchase Price of the Common Stock is valued. The Valuation Period shall begin the first Trading Day following
the Clearing Date.

ARTICLE II

PURCHASE AND SALE OF COMMON STOCK

Section 2.1 

PUTS. Upon
the terms and conditions set forth herein (including, without limitation, the provisions of Article VII), the Company shall have
the right, but not the obligation, to direct the Investor, by its delivery to the Investor of a Put Notice from time to time,
to purchase Put Shares (i) in a minimum amount not less than $20,000.00 and (ii) in a maximum amount of the lesser of (a) $250,000.00
or (b) 200% of the Average Daily Trading Value; provided further that such minimum amount of Put Shares may be decreased, such
maximum amount of Put Shares may be increased, and the Minimum Share Price may be decreased subject to the Investor’s approval.
The amount of Put Shares for each respective Put shall equal the quotient of the aggregate dollar amount of the Put divided by
the by the lowest daily VWAP price of the Company’s Common Stock on the Principal Market in the five (5) Trading Days immediately
preceding the respective Put Date. 

    	 

    	 

    

  

Section 2.2 

MECHANICS.

(a)       

PUT NOTICE.
At any time and from time to time during the Commitment Period, except as provided in this Agreement, the Company may deliver a
Put Notice to Investor, subject to satisfaction of the conditions set forth in this Agreement, including but not limited to Section
7.2. The Company shall deliver, or cause to be delivered, the Put Shares as DWAC Shares to the Investor within two (2) Trading
Days following the Put Date.

(b)       

DATE OF DELIVERY
OF PUT NOTICE. A Put Notice shall be deemed delivered on (i) the Trading Day it is received by email by the Investor if such
notice is received on or prior to 9:00 a.m. New York time or (ii) the immediately succeeding Trading Day if it is received by email
after 9:00 a.m. New York time on a Trading Day or at any time on a day which is not a Trading Day. The Company may not deliver
another Put Notice to the Investor within five (5) Trading Days of the Clearing Date of the immediately preceding Put Notice.

Section 2.3 

CLOSINGS.
The Closing of a Put shall occur within two (2) Trading Days following the end of the respective Valuation Period, whereby the
Investor shall deliver the respective Investment Amount by wire transfer of immediately available funds to an account designated
by the Company. In addition, on or prior to such Closing, each of the Company and the Investor shall deliver to each other all
documents, instruments and writings required to be delivered or reasonably requested by either of them pursuant to this Agreement
in order to implement and effect the transactions contemplated herein. If the value of the Put Shares delivered to the Investor
causes the Company to exceed the Maximum Commitment Amount, then the Investor shall return to the Company the surplus amount of
Put Shares associated with such Put. Notwithstanding anything to the contrary contained in this Agreement, if the Company delivers
a suspension notice to the Investor at any time during a Valuation Period, as further provided in the Registration Rights Agreement,
then the Investor shall have the right to elect to purchase all, any, or none of the respective Put Shares.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF INVESTOR

The Investor represents
and warrants to the Company that:

Section 3.1 

INTENT. The
Investor is entering into this Agreement for its own account and the Investor has no present arrangement (whether or not legally
binding) at any time to sell the Securities to or through any Person in violation of the Securities Act or any applicable state
securities laws; provided, however, that the Investor reserves the right to dispose of the Securities at any time
in accordance with federal and state securities laws applicable to such disposition.

Section 3.2 

NO LEGAL ADVICE
FROM THE COMPANY. The Investor acknowledges that it has had the opportunity to review this Agreement and the transactions contemplated
by this Agreement with its own legal counsel and investment and tax advisors. The Investor is relying solely on such counsel and
advisors and not on any statements or representations of the Company or any of its representatives or agents for legal, tax or
investment advice with respect to this investment, the transactions contemplated by this Agreement or the securities laws of any
jurisdiction.

Section 3.3 

AUTHORITY. The Investor
has the requisite power and authority to enter into and perform its obligations under this Agreement and the other Transaction
Documents and to consummate the transactions contemplated hereby and thereby. The execution and delivery of this Agreement and
the other Transaction Documents and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized
by all necessary action and no further consent or authorization of the Investor is required. Each Transaction Document to which
it is a party has been duly executed by the Investor, and when delivered by the Investor in accordance with the terms hereof, will
constitute the valid and binding obligation of the Investor enforceable against it in accordance with its terms, subject to applicable
bankruptcy, insolvency, or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies
or by other equitable principles of general application.

 

    	 

    	 

    

 

Section 3.4 

NOT AN AFFILIATE.
The Investor is not an officer, director or “affiliate” (as that term is defined in Rule 405 of the Securities Act)
of the Company.

Section 3.5 

ORGANIZATION AND
STANDING. The Investor is an entity duly incorporated or formed, validly existing and in good standing under the laws of the
jurisdiction of its incorporation or formation with full right, corporate, partnership, limited liability company or similar power
and authority to enter into and to consummate the transactions contemplated by this Agreement and the other Transaction Documents.

Section 3.6 

ABSENCE OF CONFLICTS.
The execution and delivery of this Agreement and the other Transaction Documents, and the consummation of the transactions contemplated
hereby and thereby and compliance with the requirements hereof and thereof, will not (a) violate any law, rule, regulation, order,
writ, judgment, injunction, decree or award binding on the Investor, (b) violate any provision of any indenture, instrument or
agreement to which the Investor is a party or is subject, or by which the Investor or any of its assets is bound, or conflict with
or constitute a material default thereunder, (c) result in the creation or imposition of any lien pursuant to the terms of any
such indenture, instrument or agreement, or constitute a breach of any fiduciary duty owed by the Investor to any third party,
or (d) require the approval of any third-party (that has not been obtained) pursuant to any material contract, instrument, agreement,
relationship or legal obligation to which the Investor is subject or to which any of its assets, operations or management may be
subject.

Section 3.7 

DISCLOSURE; ACCESS
TO INFORMATION. The Investor had an opportunity to review copies of the SEC Documents filed on behalf of the Company and has
had access to all publicly available information with respect to the Company.

Section 3.8 

MANNER OF SALE.
At no time was the Investor presented with or solicited by or through any leaflet, public promotional meeting, television advertisement
or any other form of general solicitation or advertising.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE
COMPANY

The Company represents and warrants
to the Investor that, except as disclosed in the SEC Documents or except as set forth in the disclosure schedules hereto:

Section 4.1 

ORGANIZATION OF
THE COMPANY. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly existing
and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority
to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company nor any Subsidiary
is in violation nor default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other
organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business and is in good
standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property
owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may
be, could not have or reasonably be expected to result in a Material Adverse Effect and no proceeding has been instituted in any
such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

Section 4.2 

AUTHORITY. The Company
has the requisite corporate power and authority to enter into and perform its obligations under this Agreement and the other Transaction
Documents. The execution and delivery of this Agreement and the other Transaction Documents by the Company and the consummation
by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate action and no further
consent or authorization of the Company or its Board of Directors or stockholders is required. Each of this Agreement and the other
Transaction Documents has been duly executed and delivered by the Company and constitutes a valid and binding obligation of the
Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by applicable
bankruptcy, insolvency, or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies
or by other equitable principles of general application.

 

    	 

    	 

    

 

Section 4.3 

CAPITALIZATION.
Except as set forth on Schedule 4.3, the Company has not issued any capital stock since its most recently filed periodic
report under the Exchange Act, other than pursuant to the exercise of employee stock options under the Company’s stock option
plans, the issuance of shares of Common Stock to employees pursuant to the Company’s employee stock purchase plans and pursuant
to the conversion and/or exercise of Common Stock Equivalents outstanding as of the date of the most recently filed periodic report
under the Exchange Act. No Person has any right of first refusal, preemptive right, right of participation, or any similar right
to participate in the transactions contemplated by the Transaction Documents. Except as set forth on Schedule 4.3 and except
as a result of the purchase and sale of the Securities, there are no outstanding options, warrants, scrip rights to subscribe to,
calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable
or exchangeable for, or giving any Person any right to subscribe for or acquire any shares of Common Stock, or contracts, commitments,
understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of Common
Stock or Common Stock Equivalents. The issuance and sale of the Securities will not obligate the Company to issue shares of Common
Stock or other securities to any Person (other than the Investor) and will not result in a right of any holder of Company securities
to adjust the exercise, conversion, exchange or reset price under any of such securities. There are no stockholders agreements,
voting agreements or other similar agreements with respect to the Company’s capital stock to which the Company is a party
or, to the knowledge of the Company, between or among any of the Company’s stockholders.

Section 4.4 

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

Section 4.5 

SEC DOCUMENTS; DISCLOSURE.
Except as set forth on Schedule 4.5, the Company has filed all reports, schedules, forms, statements and other documents
required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d)
thereof, for the one (1) year preceding the date hereof (or such shorter period as the Company was required by law or regulation
to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein,
being collectively referred to herein as the “SEC Documents”) on a timely basis or has received a valid extension
of such time of filing and has filed any such SEC Documents prior to the expiration of any such extension. As of their respective
dates, the SEC Documents complied in all material respects with the requirements of the Securities Act and the Exchange Act, as
applicable, and other federal laws, rules and regulations applicable to such SEC Documents, and none of the SEC Documents when
filed contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary
in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The financial
statements of the Company included in the SEC Documents comply as to form and substance in all material respects with applicable
accounting requirements and the published rules and regulations of the SEC or other applicable rules and regulations with respect
thereto. Such financial statements have been prepared in accordance with generally accepted accounting principles applied on a
consistent basis during the periods involved (except (a) as may be otherwise indicated in such financial statements or the notes
thereto or (b) in the case of unaudited interim statements, to the extent they may not include footnotes or may be condensed or
summary statements) and fairly present in all material respects the financial position of the Company as of the dates thereof and
the results of operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal, immaterial,
year-end audit adjustments). Except with respect to the material terms and conditions of the transactions contemplated by the Transaction
Documents, the Company confirms that neither it nor any other Person acting on its behalf has provided the Investor or its agents
or counsel with any information that it believes constitutes or might constitute material, non-public information. The Company
understands and confirms that the Investor will rely on the foregoing representation in effecting transactions in securities of
the Company.

 

    	 

    	 

    

 

Section 4.6 

VALID ISSUANCES.
The Securities are duly authorized and, when issued and paid for in accordance with the applicable Transaction Documents, will
be duly and validly issued, fully paid, and non-assessable, free and clear of all Liens imposed by the Company other than restrictions
on transfer provided for in the Transaction Documents.

Section 4.7 

NO CONFLICTS.
The execution, delivery and performance of this Agreement and the other Transaction Documents by the Company and the consummation
by the Company of the transactions contemplated hereby and thereby, including, without limitation, the issuance of the Put Shares
and the Commitment Shares, do not and will not: (a) result in a violation of the Company’s or any Subsidiary’s certificate
or articles of incorporation, by-laws or other organizational or charter documents, (b) conflict with, or constitute a material
default (or an event that with notice or lapse of time or both would become a material default) under, result in the creation of
any Lien upon any of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment,
acceleration or cancellation of, any agreement, indenture, instrument or any “lock-up” or similar provision of any
underwriting or similar agreement to which the Company or any Subsidiary is a party, or (c) result in a violation of any federal,
state or local law, rule, regulation, order, judgment or decree (including federal and state securities laws and regulations) applicable
to the Company or any Subsidiary or by which any property or asset of the Company or any Subsidiary is bound or affected (except
for such conflicts, defaults, terminations, amendments, accelerations, cancellations and violations as would not, individually
or in the aggregate, have a Material Adverse Effect). The business of the Company is not being conducted in violation of any law,
ordinance or regulation of any governmental entity, except for possible violations that either singly or in the aggregate do not
and will not have a Material Adverse Effect. The Company is not required under federal, state or local law, rule or regulation
to obtain any consent, authorization or order of, or make any filing or registration with, any court or governmental agency in
order for it to execute, deliver or perform any of its obligations under this Agreement or the other Transaction Documents (other
than any SEC, FINRA or state securities filings that may be required to be made by the Company subsequent to any Closing or any
registration statement that may be filed pursuant hereto); provided that, for purposes of the representation made in this sentence,
the Company is assuming and relying upon the accuracy of the relevant representations and agreements of Investor herein.

Section 4.8 

NO MATERIAL ADVERSE
CHANGE. No event has occurred that would have a Material Adverse Effect on the Company that has not been disclosed in subsequent
SEC filings.

Section 4.9 

LITIGATION AND
OTHER PROCEEDINGS. Except as disclosed in the SEC Documents or as set forth on Schedule 4.9, there are no actions, suits,
investigations, inquiries or proceedings pending or, to the knowledge of the Company, threatened against or affecting the Company,
any Subsidiary or any of their respective properties, nor has the Company received any written or oral notice of any such action,
suit, proceeding, inquiry or investigation, which would have a Material Adverse Effect. No judgment, order, writ, injunction or
decree or award has been issued by or, to the knowledge of the Company, requested of any court, arbitrator or governmental agency
which would have a Material Adverse Effect. There has not been, and to the knowledge of the Company, there is not pending or contemplated,
any investigation by the SEC involving the Company, any Subsidiary or any current or former director or officer of the Company
or any Subsidiary.

Section 4.10 

REGISTRATION RIGHTS.
Except as set forth on Schedule 4.10, no Person (other than the Investor) has any right to cause the Company to effect the
registration under the Securities Act of any securities of the Company or any Subsidiary.

ARTICLE V

COVENANTS OF INVESTOR

Section 5.1 

COMPLIANCE WITH
LAW; TRADING IN SECURITIES. The Investor’s trading activities with respect to shares of Common Stock will be in compliance
with all applicable state and federal securities laws and regulations and the rules and regulations of FINRA and the Principal
Market.

Section 5.2 

SHORT SALES AND
CONFIDENTIALITY. Neither the Investor, nor any affiliate of the Investor acting on its behalf or pursuant to any understanding
with it, will execute any Short Sales during the period from the date hereof to the end of the Commitment Period. For the purposes
hereof, and in accordance with Regulation SHO, the sale after the clearing of the Put Shares under a Put Notice into the Investor’s
brokerage account shall not be deemed a Short Sale. The Investor shall, until such time as the transactions contemplated by this
Agreement are publicly disclosed by the Company in accordance with the terms of this Agreement, maintain the confidentiality of
the existence and terms of this transaction and the information included in the Transaction Documents.

    	 

    	 

    

 

ARTICLE VI

COVENANTS OF THE COMPANY

Section 6.1 

RESERVATION OF
COMMON STOCK. The Company shall maintain a reserve from its duly authorized shares of Common Stock equal to 100% of the Required
Minimum to satisfy its obligation to issue the Put Shares and the Commitment Shares in accordance with the terms of this Agreement.

Section 6.2 

LISTING OF COMMON
STOCK. The Company shall promptly secure the listing of all of the Put Shares and Commitment Shares to be issued to the Investor
hereunder on the Principal Market (subject to official notice of issuance) and shall use commercially reasonable best efforts to
maintain, so long as any shares of Common Stock shall be so listed, the listing of all such Put Shares and Commitment Shares from
time to time issuable hereunder. The Company shall use its commercially reasonable efforts to continue the listing and trading
of the Common Stock on the Principal Market (including, without limitation, maintaining sufficient net tangible assets) and will
comply in all respects with the Company’s reporting, filing and other obligations under the bylaws or rules of FINRA and
the Principal Market.

Section 6.3 

OTHER EQUITY LINES
AND VARIABLE RATE TRANSACTIONS. Until the later of (i) the date of termination of this Agreement and (ii) the date in which
the Investor no longer holds any of the Commitment Shares, the Company covenants and agrees that it shall not, without the prior
written consent of the Investor, enter into a Variable Rate Transaction (as defined herein). A Variable Rate Transaction means
a transaction in which the Company (i) issues or sells any debt or equity securities that are convertible into, exchangeable or
exercisable for, or include the right to receive, additional shares of Common Stock either (A) at a conversion price, exercise
price or exchange rate or other price that is based upon, and/or varies with, the trading prices of or quotations for the shares
of Common Stock at any time after the initial issuance of such debt or equity securities or (B) with a conversion, exercise or
exchange price that is subject to being reset at some future date after the initial issuance of such debt or equity security or
upon the occurrence of specified or contingent events directly or indirectly related to the business of the Company or the market
for the Common Stock, or (ii) enters into any agreement, including, but not limited to, an equity line of credit, whereby the Company
may issue securities at a future determined price. For the avoidance of doubt, nothing contained in the Transaction Documents shall
restrict, or require the Investor’s consent for, any agreement providing for the issuance or distribution of any equity securities
of the Company pursuant to any agreement or arrangement that is not covered in this Section 6.3.

Section 6.4 

FILING OF CURRENT
REPORT AND REGISTRATION STATEMENT. The Company agrees that it shall file a Current Report on Form 8-K, including the Transaction
Documents as exhibits thereto, with the SEC within the time required by the Exchange Act, relating to the transactions contemplated
by, and describing the material terms and conditions of, the Transaction Documents (the “Current Report”). The
Company shall permit the Investor to review and comment upon the final pre-filing draft version of the Current Report at least
two (2) Trading Days prior to its filing with the SEC, and the Company shall give reasonable consideration to all such comments.
The Investor shall use its reasonable best efforts to comment upon the final pre-filing draft version of the Current Report within
one (1) Trading Day from the date the Investor receives it from the Company. The Company shall also file with the SEC, within fifteen
(15) calendar days from the date hereof, a new registration statement (the “Registration Statement”) covering only
the resale of the Put Shares and Commitment Shares. The Company shall use its best efforts to cause the Registration Statement
to become effective within ninety (90) calendar days from the date hereof.

ARTICLE VII

CONDITIONS TO DELIVERY OF

PUT NOTICES AND CONDITIONS TO CLOSING

Section 7.1 

CONDITIONS PRECEDENT
TO THE RIGHT OF THE COMPANY TO ISSUE AND SELL PUT SHARES. The right of the Company to issue and sell the Put Shares to the
Investor is subject to the satisfaction of each of the conditions set forth below:

(a)       

ACCURACY OF INVESTOR’S
REPRESENTATIONS AND WARRANTIES. The representations and warranties of the Investor shall be true and correct in all material
respects as of the date of this Agreement and as of the date of each Closing as though made at each such time.

    	 

    	 

    

 

(b)       

PERFORMANCE BY INVESTOR.
Investor shall have performed, satisfied and complied in all respects with all covenants, agreements and conditions required by
this Agreement to be performed, satisfied or complied with by the Investor at or prior to such Closing.

(c)       

PRINCIPAL MARKET
REGULATION. The Company shall not issue any Put Shares, and the Investor shall not have the right to receive any Put Shares,
if the issuance of such Put Shares would exceed the aggregate number of shares of Common Stock which the Company may issue without
breaching the Company’s obligations under the rules or regulations of the Principal Market (the “Exchange Cap”).

Section 7.2 

CONDITIONS PRECEDENT
TO THE OBLIGATION OF INVESTOR TO PURCHASE PUT SHARES. The obligation of the Investor hereunder to purchase Put Shares is subject
to the satisfaction of each of the following conditions:

(a)       

EFFECTIVE REGISTRATION
STATEMENT. The Registration Statement, and any amendment or supplement thereto, shall remain effective for the resale by the
Investor of the Put Shares and the Commitment Shares and (i) neither the Company nor the Investor shall have received notice that
the SEC has issued or intends to issue a stop order with respect to such Registration Statement or that the SEC otherwise has suspended
or withdrawn the effectiveness of such Registration Statement, either temporarily or permanently, or intends or has threatened
to do so and (ii) no other suspension of the use of, or withdrawal of the effectiveness of, such Registration Statement or related
prospectus shall exist.

(b)       

ACCURACY OF THE
COMPANY’S REPRESENTATIONS AND WARRANTIES. The representations and warranties of the Company shall be true and correct
in all material respects as of the date of this Agreement and as of the date of each Closing (except for representations and warranties
specifically made as of a particular date).

(c)       

PERFORMANCE BY THE
COMPANY. The Company shall have performed, satisfied and complied in all material respects with all covenants, agreements and
conditions required by this Agreement to be performed, satisfied or complied with by the Company.

(d)       

NO INJUNCTION.
No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or adopted
by any court or governmental authority of competent jurisdiction that prohibits or directly and materially adversely affects any
of the transactions contemplated by the Transaction Documents, and no proceeding shall have been commenced that may have the effect
of prohibiting or materially adversely affecting any of the transactions contemplated by the Transaction Documents.

(e)       

ADVERSE CHANGES.
Since the date of filing of the Company’s most recent SEC Document, no event that had or is reasonably likely to have a Material
Adverse Effect has occurred.

(f)       

NO SUSPENSION OF
TRADING IN OR DELISTING OF COMMON STOCK. The trading of the Common Stock shall not have been suspended by the SEC, the Principal
Market or FINRA, or otherwise halted for any reason, and the Common Stock shall have been approved for listing or quotation on
and shall not have been delisted from the Principal Market. In the event of a suspension, delisting, or halting for any reason,
of the trading of the Common Stock, as contemplated by this Section 7.2(f), the Investor shall have the right to return to the
Company any remaining amount of Put Shares associated with such Put, and the Purchase Price with respect to such Put shall be reduced
accordingly.

    	 

    	 

    

 

(g)       

BENEFICIAL OWNERSHIP
LIMITATION. The number of Put Shares then to be purchased by the Investor shall not exceed the number of such shares that,
when aggregated with all other shares of Common Stock then owned by the Investor beneficially or deemed beneficially owned by the
Investor, would result in the Investor owning more than the Beneficial Ownership Limitation (as defined below), as determined in
accordance with Section 16 of the Exchange Act and the regulations promulgated thereunder. For purposes of this Section 7.2(g),
in the event that the amount of Common Stock outstanding, as determined in accordance with Section 16 of the Exchange Act and the
regulations promulgated thereunder, is greater on a Closing Date than on the date upon which the Put Notice associated with such
Closing Date is given, the amount of Common Stock outstanding on such Closing Date shall govern for purposes of determining whether
the Investor, when aggregating all purchases of Common Stock made pursuant to this Agreement, would own more than the Beneficial
Ownership Limitation following such Closing Date. 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
pursuant to a Put Notice.

(h)       

PRINCIPAL MARKET
REGULATION. The issuance of the Put Shares shall not exceed the Exchange Cap.

(i)       

NO KNOWLEDGE.
The Company shall have no knowledge of any event more likely than not to have the effect of causing the Registration Statement
to be suspended or otherwise ineffective (which event is more likely than not to occur within the fifteen (15) Trading Days following
the Trading Day on which such Put Notice is deemed delivered).

(j)       

NO VIOLATION OF
SHAREHOLDER APPROVAL REQUIREMENT. The issuance of the Put Shares shall not violate the shareholder approval requirements of
the Principal Market.

(k)       

OFFICER’S
CERTIFICATE. On the date of delivery of each Put Notice, the Investor shall have received the Closing Certificate executed
by an executive officer of the Company and to the effect that all the conditions to such Closing shall have been satisfied as of
the date of each such certificate.

(l)       

DWAC ELIGIBLE.
The Common Stock must be DWAC Eligible and not subject to a “DTC chill.”

(m)       

SEC DOCUMENTS.
All reports, schedules, registrations, forms, statements, information and other documents required to have been filed by the Company
with the SEC pursuant to the reporting requirements of the Exchange Act shall have been filed with the SEC within the applicable
time periods prescribed for such filings under the Exchange Act.

(n)       

TRANSFER AGENT INSTRUCTION
LETTER. The Transfer Agent Instruction Letter shall have been executed and delivered by the Company to the Transfer Agent and
acknowledged and agreed to in writing by the Transfer Agent.

(o)       

RESERVE. The
Company shall have reserved sufficient shares of its Common Stock for the Investor, pursuant to the terms of this Agreement and
all other contracts between the Company and Investor.

(p)       

MINIMUM SHARE PRICE.
The lowest traded price of the Common Stock in the five (5) Trading Days immediately preceding the respective Put Date must exceed
the Minimum Share Price.

ARTICLE VIII

LEGENDS

Section 8.1 

NO RESTRICTIVE
STOCK LEGEND. No restrictive stock legend shall be placed on the share certificates representing the Put Shares.

Section 8.2 

INVESTOR’S COMPLIANCE.
Nothing in this Article VIII shall affect in any way the Investor’s obligations hereunder to comply with all applicable securities
laws upon the sale of the Common Stock.

 

    	 

    	 

    

 

ARTICLE IX

NOTICES; INDEMNIFICATION

Section 9.1 

NOTICES. All
notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and,
unless otherwise specified herein, shall be transmitted by email as a PDF, as set forth below or to such other email address as
such party shall have specified most recently by written notice given in accordance herewith. Any notice or other communication
required or permitted to be given hereunder shall be deemed effective (upon delivery by email at the email address designated below
(if delivered on a business day during normal business hours where such notice is to be received), or the first business day following
such delivery (if delivered other than on a business day during normal business hours where such notice is to be received).

The addresses for such communications shall be:

If to the Company:

TWO RIVERS WATER & FARMING COMPANY

E-mail: bgregorak@2riverswater.com

If to the Investor:

SPOTFIN FUNDING LLC

Email: sean@cardencapitalspotfinfunding.com and
gavan@spotfinfunding.com

Either party hereto may from time to
time change its address or email for notices under this Section 9.1 by giving at least ten (10) days’ prior written notice
of such changed address to the other party hereto.

Section 9.2 

INDEMNIFICATION.
Each party (an “Indemnifying Party”) agrees to indemnify and hold harmless the other party along with its officers,
directors, employees, and authorized agents, and each Person or entity, if any, who controls such party within the meaning of Section
15 of the Securities Act or Section 20 of the Exchange Act (an “Indemnified Party”) from and against any Damages,
joint or several, and any action in respect thereof to which the Indemnified Party becomes subject to, resulting from, arising
out of or relating to (i) any misrepresentation, breach of warranty or nonfulfillment of or failure to perform any covenant or
agreement on the part of the Indemnifying Party contained in this Agreement, (ii) any untrue statement or alleged untrue statement
of a material fact contained in the Registration Statement or any post-effective amendment thereof or supplement thereto, or the
omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein
not misleading, (iii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus
or contained in the final prospectus (as amended or supplemented, if the Company files any amendment thereof or supplement thereto
with the SEC) or the omission or alleged omission to state therein any material fact necessary to make the statements made therein,
in the light of the circumstances under which the statements therein were made, not misleading, or (iv) any violation or alleged
violation by the Company of the Securities Act, the Exchange Act, any state securities law or any rule or regulation under the
Securities Act, the Exchange Act or any state securities law, as such Damages are incurred, except to the extent such Damages result
primarily from the Indemnified Party’s failure to perform any covenant or agreement contained in this Agreement or the Indemnified
Party’s negligence, recklessness or bad faith in performing its obligations under this Agreement; provided, however,
that the foregoing indemnity agreement shall not apply to any Damages of an Indemnified Party to the extent, but only to the extent,
arising out of or based upon any untrue statement or alleged untrue statement or omission or alleged omission made by an Indemnifying
Party in reliance upon and in conformity with written information furnished to the Indemnifying Party by the Indemnified Party
expressly for use in the Registration Statement, any post-effective amendment thereof or supplement thereto, or any preliminary
prospectus or final prospectus (as amended or supplemented).

 

    	 

    	 

    

 

 

Section 9.3 

METHOD OF
ASSERTING INDEMNIFICATION CLAIMS. All claims for indemnification by any Indemnified Party under Section 9.2 shall be
asserted and resolved as follows:

(a)       

In the event any claim
or demand in respect of which an Indemnified Party might seek indemnity under Section 9.2 is asserted against or sought to be collected
from such Indemnified Party by a Person other than a party hereto or an affiliate thereof (a “Third Party Claim”),
the Indemnified Party shall deliver a written notification, enclosing a copy of all papers served, if any, and specifying the nature
of and basis for such Third Party Claim and for the Indemnified Party’s claim for indemnification that is being asserted
under any provision of Section 9.2 against an Indemnifying Party, together with the amount or, if not then reasonably ascertainable,
the estimated amount, determined in good faith, of such Third Party Claim (a “Claim Notice”) with reasonable
promptness to the Indemnifying Party. If the Indemnified Party fails to provide the Claim Notice with reasonable promptness after
the Indemnified Party receives notice of such Third Party Claim, the Indemnifying Party shall not be obligated to indemnify the
Indemnified Party with respect to such Third Party Claim to the extent that the Indemnifying Party’s ability to defend has
been prejudiced by such failure of the Indemnified Party. The Indemnifying Party shall notify the Indemnified Party as soon as
practicable within the period ending thirty (30) calendar days following receipt by the Indemnifying Party of either a Claim Notice
or an Indemnity Notice (as defined below) (the “Dispute Period”) whether the Indemnifying Party disputes its
liability or the amount of its liability to the Indemnified Party under Section 9.2 and whether the Indemnifying Party desires,
at its sole cost and expense, to defend the Indemnified Party against such Third Party Claim.

(i)       

If the Indemnifying
Party notifies the Indemnified Party within the Dispute Period that the Indemnifying Party desires to defend the Indemnified Party
with respect to the Third Party Claim pursuant to this Section 9.3(a), then the Indemnifying Party shall have the right to defend,
with counsel reasonably satisfactory to the Indemnified Party, at the sole cost and expense of the Indemnifying Party, such Third
Party Claim by all appropriate proceedings, which proceedings shall be vigorously and diligently prosecuted by the Indemnifying
Party to a final conclusion or will be settled at the discretion of the Indemnifying Party (but only with the consent of the Indemnified
Party in the case of any settlement that provides for any relief other than the payment of monetary damages or that provides for
the payment of monetary damages as to which the Indemnified Party shall not be indemnified in full pursuant to Section 9.2). The
Indemnifying Party shall have full control of such defense and proceedings, including any compromise or settlement thereof; provided,
however, that the Indemnified Party may, at the sole cost and expense of the Indemnified Party, at any time prior to the
Indemnifying Party’s delivery of the notice referred to in the first sentence of this clause (i), file any motion, answer
or other pleadings or take any other action that the Indemnified Party reasonably believes to be necessary or appropriate to protect
its interests; and provided, further, that if requested by the Indemnifying Party, the Indemnified Party will, at the sole cost
and expense of the Indemnifying Party, provide reasonable cooperation to the Indemnifying Party in contesting any Third Party Claim
that the Indemnifying Party elects to contest. The Indemnified Party may participate in, but not control, any defense or settlement
of any Third Party Claim controlled by the Indemnifying Party pursuant to this clause (i), and except as provided in the preceding
sentence, the Indemnified Party shall bear its own costs and expenses with respect to such participation. Notwithstanding the foregoing,
the Indemnified Party may take over the control of the defense or settlement of a Third Party Claim at any time if it irrevocably
waives its right to indemnity under Section 9.2 with respect to such Third Party Claim.

(ii)       

If the Indemnifying Party
fails to notify the Indemnified Party within the Dispute Period that the Indemnifying Party desires to defend the Third Party Claim
pursuant to Section 9.3(a), or if the Indemnifying Party gives such notice but fails to prosecute vigorously and diligently or
settle the Third Party Claim, or if the Indemnifying Party fails to give any notice whatsoever within the Dispute Period, then
the Indemnified Party shall have the right to defend, at the sole cost and expense of the Indemnifying Party, the Third Party Claim
by all appropriate proceedings, which proceedings shall be prosecuted by the Indemnified Party in a reasonable manner and in good
faith or will be settled at the discretion of the Indemnified Party(with the consent of the Indemnifying Party, which consent will
not be unreasonably withheld). The Indemnified Party will have full control of such defense and proceedings, including any compromise
or settlement thereof; provided, however, that if requested by the Indemnified Party, the Indemnifying Party will, at the sole
cost and expense of the Indemnifying Party, provide reasonable cooperation to the Indemnified Party and its counsel in contesting
any Third Party Claim which the Indemnified Party is contesting. Notwithstanding the foregoing provisions of this clause (ii),
if the Indemnifying Party has notified the Indemnified Party within the Dispute Period that the Indemnifying Party disputes its
liability or the amount of its liability hereunder to the Indemnified Party with respect to such Third Party Claim and if such
dispute is resolved in favor of the Indemnifying Party in the manner provided in clause (iii) below, the Indemnifying Party will
not be required to bear the costs and expenses of the Indemnified Party’s defense pursuant to this clause (ii) or of the
Indemnifying Party’s participation therein at the Indemnified Party’s request, and the Indemnified Party shall reimburse
the Indemnifying Party in full for all reasonable costs and expenses incurred by the Indemnifying Party in connection with such
litigation. The Indemnifying Party may participate in, but not control, any defense or settlement controlled by the Indemnified
Party pursuant to this clause (ii), and the Indemnifying Party shall bear its own costs and expenses with respect to such participation.

 

    	 

    	 

    

 

(iii)       

If the Indemnifying
Party notifies the Indemnified Party that it does not dispute its liability or the amount of its liability to the Indemnified Party
with respect to the Third Party Claim under Section 9.2 or fails to notify the Indemnified Party within the Dispute Period whether
the Indemnifying Party disputes its liability or the amount of its liability to the Indemnified Party with respect to such Third
Party Claim, the amount of Damages specified in the Claim Notice shall be conclusively deemed a liability of the Indemnifying Party
under Section 9.2 and the Indemnifying Party shall pay the amount of such Damages to the Indemnified Party on demand. If the Indemnifying
Party has timely disputed its liability or the amount of its liability with respect to such claim, the Indemnifying Party and the
Indemnified Party shall proceed in good faith to negotiate a resolution of such dispute; provided, however, that if the dispute
is not resolved within thirty (30) days after the Claim Notice, the Indemnifying Party shall be entitled to institute such legal
action as it deems appropriate.

(b)       

In the event any Indemnified
Party should have a claim under Section 9.2 against the Indemnifying Party that does not involve a Third Party Claim, the Indemnified
Party shall deliver a written notification of a claim for indemnity under Section 9.2 specifying the nature of and basis for such
claim, together with the amount or, if not then reasonably ascertainable, the estimated amount, determined in good faith, of such
claim (an “Indemnity Notice”) with reasonable promptness to the Indemnifying Party. The failure by any Indemnified
Party to give the Indemnity Notice shall not impair such party’s rights hereunder except to the extent that the Indemnifying
Party demonstrates that it has been irreparably prejudiced thereby. If the Indemnifying Party notifies the Indemnified Party that
it does not dispute the claim or the amount of the claim described in such Indemnity Notice or fails to notify the Indemnified
Party within the Dispute Period whether the Indemnifying Party disputes the claim or the amount of the claim described in such
Indemnity Notice, the amount of Damages specified in the Indemnity Notice will be conclusively deemed a liability of the Indemnifying
Party under Section 9.2 and the Indemnifying Party shall pay the amount of such Damages to the Indemnified Party on demand. If
the Indemnifying Party has timely disputed its liability or the amount of its liability with respect to such claim, the Indemnifying
Party and the Indemnified Party shall proceed in good faith to negotiate a resolution of such dispute; provided, however, that
if the dispute is not resolved within thirty (30) days after the Claim Notice, the Indemnifying Party shall be entitled to institute
such legal action as it deems appropriate.

(c)       

The Indemnifying Party
agrees to pay the Indemnified Party, promptly as such expenses are incurred and are due and payable, for any reasonable legal fees
or other reasonable expenses incurred by them in connection with investigating or defending any such Claim.

(d)       

The indemnity provisions
contained herein shall be in addition to (i) any cause of action or similar rights of the Indemnified Party against the Indemnifying
Party or others, and (ii) any liabilities the Indemnifying Party may be subject to.

ARTICLE X

MISCELLANEOUS

Section 10.1 

GOVERNING LAW;
JURISDICTION. This Agreement shall be governed by and interpreted in accordance with the laws of the State of Colorado without
regard to the principles of conflicts of law. Each of the Company and the Investor hereby submits to the exclusive jurisdiction
of the United States federal and state courts located in the State of Colorado, with respect to any dispute arising under the Transaction
Documents or the transactions contemplated thereby.

Section 10.2 

JURY TRIAL WAIVER.
The Company and the Investor hereby waive a trial by jury in any action, proceeding or counterclaim brought by either of the parties
hereto against the other in respect of any matter arising out of or in connection with the Transaction Documents.

Section 10.3 

ASSIGNMENT.
This Agreement shall be binding upon and inure to the benefit of the Company and the Investor and their respective successors.
Neither this Agreement nor any rights of the Investor or the Company hereunder may be assigned by either party to any other Person.

    	 

    	 

    

 

Section 10.4 

NO THIRD PARTY
BENEFICIARIES. This Agreement is intended for the benefit of the Company and the Investor and their respective successors,
and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as set forth in Section 9.3.

Section 10.5 

TERMINATION.
The Company may terminate this Agreement at any time by written notice to the Investor, except while the Investor holds any of
the Put Shares or Commitment Shares. In addition, this Agreement shall automatically terminate on the earlier of (i) the end of
the Commitment Period; (ii) the date that the Company sells and the Investor purchases the Maximum Commitment Amount; (iii) the
date in which the Registration Statement is no longer effective; or (iv) the date that, pursuant to or within the meaning of any
Bankruptcy Law, the Company commences a voluntary case or any Person commences a proceeding against the Company, a Custodian is
appointed for the Company or for all or substantially all of its property or the Company makes a general assignment for the benefit
of its creditors; provided, however, that the provisions of Articles III, IV, V, VI, IX and the agreements and covenants
of the Company and the Investor set forth in Article X shall survive the termination of this Agreement.

Section 10.6 

ENTIRE AGREEMENT.
The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of the Company and
the Investor with respect to the matters covered herein and therein and supersede all prior agreements and understandings, oral
or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

Section 10.7 

FEES AND EXPENSES.
Except as expressly set forth in the Transaction Documents or any other writing to the contrary, each party shall pay the fees
and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident
to the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all Transfer Agent
fees (including, without limitation, any fees required for same-day processing of any instruction letter delivered by the Company),
stamp taxes and other taxes and duties levied in connection with the delivery of any Securities to the Investor. Upon full execution
of this Agreement, the Company shall pay a commitment fee of $150,000 in cash to the Investor, provided, however, that in the event
that the Company does not make such cash payment, then the Company shall issue the Commitment Shares to Investor, pursuant to this
Section 10.7, for its commitment to enter into this Agreement, in accordance with the beneficial ownership limitations contained
herein. The Investor shall have the right to receive the Commitment Shares in tranches in Investor’s sole discretion, provided
that the Investor’s ownership of Common Stock shall never exceed 4.99% of the outstanding Common Stock at the time that the
respective tranche of Commitment Shares are issued . In order to receive each tranche of the Commitment Shares, the Investor must
provide notice via electronic mail to the Company with the following information: (i) the dollar amount of the value of the Commitment
Shares for such tranche (which, in the aggregate, shall not exceed $150,000), and (ii) the applicable price per share at which
such tranche of Commitment Shares shall be valued at as provided in this Section 10.7. If such notice is sent by the Investor prior
to the close of trading on the respective Trading Day, then the applicable price per share for the respective tranche of the Commitment
Shares shall equal the closing price of the Common Stock on the immediately preceding Trading Day. If such notice is sent by the
Investor subsequent to the close of trading on the respective Trading Day, then the applicable price per share for the respective
tranche of the Commitment Shares shall equal the closing price of the Common Stock on that Trading Day. The Commitment Shares shall
be earned in full upon the execution of this Agreement, and neither the commitment cash payment nor the Commitment Shares are contingent
upon any other event or condition, including but not limited to the effectiveness of the Registration Statement or the Company’s
submission of a Put Notice to the Investor. The Company must issue each tranche of the Commitment Shares within two (2) Trading
Days of the Investor’s notice to the Company requesting the issuance of the respective tranche, in accordance with the beneficial
ownership limitations contained herein.

Section 10.8 

COUNTERPARTS.
This Agreement may be executed in multiple counterparts, each of which may be executed by less than all of the parties and shall
be deemed to be an original instrument which shall be enforceable against the parties actually executing such counterparts and
all of which together shall constitute one and the same instrument. This Agreement may be delivered to the other parties hereto
by email of a copy of this Agreement bearing the signature of the parties so delivering this Agreement.

    	 

    	 

    

 

Section 10.9 

SEVERABILITY.
In the event that any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable
or void, this Agreement shall continue in full force and effect without said provision; provided that such severability shall be
ineffective if it materially changes the economic benefit of this Agreement to any party.

Section 10.10 

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

Section 10.11  

NO
STRICT CONSTRUCTION. The language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party.

Section 10.12 

EQUITABLE RELIEF.
The Company recognizes that in the event that it fails to perform, observe, or discharge any or all of its obligations under this
Agreement, any remedy at law may prove to be inadequate relief to the Investor. The Company therefore agrees that the Investor
shall be entitled to temporary and permanent injunctive relief in any such case without the necessity of proving actual damages.

Section 10.13 

TITLE AND SUBTITLES.
The titles and subtitles used in this Agreement are used for the convenience of reference and are not to be considered in construing
or interpreting this Agreement.

Section 10.14 

AMENDMENTS; WAIVERS.
No provision of this Agreement may be amended or waived by the parties from and after the date that is one (1) Trading Day immediately
preceding the initial filing of the Registration Statement with the SEC. Subject to the immediately preceding sentence, (i) no
provision of this Agreement may be amended other than by a written instrument signed by both parties hereto and (ii) no provision
of this Agreement may be waived other than in a written instrument signed by the party against whom enforcement of such waiver
is sought. No failure or delay in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any
other right, power or privilege.

Section 10.15 

PUBLICITY.
The Company and the Investor shall consult with each other in issuing any press releases or otherwise making public statements
with respect to the transactions contemplated hereby and no party shall issue any such press release or otherwise make any such
public statement, other than as required by law, without the prior written consent of the other parties, which consent shall not
be unreasonably withheld or delayed, except that no prior consent shall be required if such disclosure is required by law, in which
such case the disclosing party shall provide the other party with prior notice of such public statement. The Investor acknowledges
that this Agreement and all or part of the Transaction Documents may be deemed to be “material contracts,” as that
term is defined by Item 601(b)(10) of Regulation S-K, and that the Company may therefore be required to file such documents as
exhibits to reports or registration statements filed under the Securities Act or the Exchange Act. The Investor further agrees
that the status of such documents and materials as material contracts shall be determined solely by the Company, in consultation
with its counsel.

Section 10.16 

MINIMUM PRICE.
Notwithstanding anything to the contrary in this Agreement, the (i) Purchase Price per share with respect to each Put shall not
be less than 85% of the respective Company Minimum Price, unless waived by the Company, and (ii) if the Purchase Price per share
with respect to the applicable Put is less than 85% of the respective Company Minimum Price, then Investor may, in Investor’s
sole discretion, elect to purchase all, any, or none of the respective Put Shares at 85% of the Company Minimum Price. Any unpurchased
Put Shares shall be returned by the Investor to the Company’s Transfer Agent within a commercially reasonable time period
for forwarding to the Company’s treasury.

  

[Signature Page Follows] 

    	 

    	 

    

  

IN WITNESS WHEREOF, the parties
have caused this Agreement to be duly executed by their respective officers thereunto duly authorized as of the day and year first
above written.

 

 

	 	TWO RIVERS WATER & FARMING COMPANY
	 	 
	 	 
	 	By: 	 
	 	Name: 	Bill Gregorak
	 	Title: 	Chief Financial Officer
	 	 	 
	 	 	 
	 	SPOTFIN FUNDING LLC
	 	 
	 	 
	 	By: 	 
	 	Name: 	Sean Wright
	 	Title: 	Managing Member

  

[Signature Page to equity purchase
agreement]  

    	 

    	 

    

 

DISCLOSURE SCHEDULES TO EQUITY PURCHASE
AGREEMENT

Schedule 4.3 – Capitalization

None.

Schedule 4.5 – SEC Documents

None.

Schedule 4.9 – Litigation

None.

Schedule 4.10 – Registration Rights

None.

    	 

    	 

    

EXHIBIT A

FORM OF PUT NOTICE

 

TO: SPOTFIN FUNDING LLC

DATE: ___________________________

We refer to the equity
purchase agreement, dated September 14, 2017 (the “Agreement”), entered into by and between Two Rivers Water
& Farming Company and you. Capitalized terms defined in the Agreement shall, unless otherwise defined herein, have the same
meaning when used herein.

We hereby:

1)       

Give you notice that we require you to
purchase ___________________ Put Shares; and

2)       

Certify that, as of the date hereof, the conditions
set forth in Agreement, including but not limited to Section 7.2, are satisfied.

 

 

	 	TWO RIVERS WATER & FARMING COMPANY
	 	 
	 	 
	 	By:  	 
	 	Name:	Wayne Harding
	 	Title	Chief Executive Officer

 

 

    	 

    	 

    

 

EXHIBIT B

 

FORM OF OFFICER’S CERTIFICATE OF TWO
RIVERS WATER & FARMING COMPANY

 

Pursuant to Section
7.2(k) of that certain equity purchase agreement, dated September 14, 2017 (the “Agreement”), by and between
Two Rivers Water & Farming Company (the “Company”) and Spotfin Funding LLC (the “Investor”),
the undersigned, in his capacity as Chief Executive Officer of the Company, and not in his individual capacity, hereby certifies,
as of the date hereof, the following:

1.       

The representations
and warranties of the Company are true and correct in all material respects as of the date hereof as though made on the date hereof
(except for representations and warranties specifically made as of a particular date) with respect to all periods, and as to all
events and circumstances occurring or existing to and including the date hereof, except for any conditions which have temporarily
caused any representations or warranties of the Company set forth in the Agreement to be incorrect and which have been corrected
with no continuing impairment to the Company or the Investor; and

2.       

All of the conditions
precedent to the obligation of the Investor to purchase Put Shares set forth in the Agreement, including but not limited to Section
7.2 of the Agreement, have been satisfied as of the date hereof.

Capitalized terms used
herein shall have the meanings set forth in the Agreement unless otherwise defined herein.

 

IN WITNESS WHEREOF,
the undersigned has hereunto affixed his hand as of the September 14, 2017.

 

 

	 	By:  	 
	 	Name: 	Wayne Harding
	 	Title: 	Chief Executive Officer

 

 

    	 

    	 

    

EXHIBIT C

 

FORM OF TRANSFER AGENT INSTRUCTION LETTERTwo Rivers Water & Farming Company 8-K

 

Exhibit 10.2

 

REGISTRATION RIGHTS AGREEMENT

REGISTRATION
RIGHTS AGREEMENT (this “Agreement”), dated as of September 14, 2017, by and between TWO RIVERS WATER
& FARMING COMPANY, a Colorado corporation (the “Company”), and SPOTFIN FUNDING LLC, a Florida
limited liability company (together with it permitted assigns, the “Buyer”). Capitalized terms used herein and
not otherwise defined herein shall have the respective meanings set forth in the equity purchase agreement by and between the parties
hereto, dated as of the date hereof (the “Purchase Agreement”).

WHEREAS:

The Company
has agreed, upon the terms and subject to the conditions of the Purchase Agreement, to sell to the Buyer up to Five Million Dollars
($5,000,000.00) of Put Shares and to induce the Buyer to enter into the Purchase Agreement, the Company has agreed to provide certain
registration rights under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor
statute (collectively, the “Securities Act”), and applicable state securities laws.

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

1.       

DEFINITIONS.

As used in this
Agreement, the following terms shall have the following meanings:

a.       

“Investor”
means the Buyer, any transferee or assignee thereof to whom a Buyer assigns its rights under this Agreement in accordance with
Section 9 and who agrees to become bound by the provisions of this Agreement, and any transferee or assignee thereof to whom a
transferee or assignee assigns its rights under this Agreement in accordance with Section 9 and who agrees to become bound by the
provisions of this Agreement.

b.       

“Person”
means any individual or entity including but not limited to any corporation, a limited liability company, an association, a partnership,
an organization, a business, a Florida limited liability company, a governmental or political subdivision thereof or a governmental
agency.

c.       

“Register,”
“registered,” and “registration” refer to a registration effected by preparing and filing
one or more registration statements of the Company in compliance with the Securities Act and/or pursuant to Rule 415 under the
Securities Act or any successor rule providing for offering securities on a continuous basis (“Rule 415”), and
the declaration or ordering of effectiveness of such registration statement(s) by the United States Securities and Exchange Commission
(the “SEC”).

d.       

“Registrable
Securities” means all of the Put Shares which have been, or which may, from time to time be issued, including without
limitation all of the shares of common stock which have been issued or will be issued to the Investor under the Purchase Agreement
(without regard to any limitation or restriction on purchases), and any and all shares of capital stock issued or issuable with
respect to the Put Shares, Commitment Shares (as defined in the Purchase Agreement) (the “Commitment Shares”),
or shares of common stock issued to Investor as a result of any stock split, stock dividend, recapitalization, exchange or similar
event or otherwise, without regard to any limitation on purchases under the Purchase Agreement.

e.       

“Registration
Statement” means one or more registration statements of the Company covering only the sale of the Registrable Securities.

    	 

    	 

    

  

2.       

REGISTRATION.

a.       

Mandatory
Registration. The Company shall, within 15 calendar days of the date hereof, file with the SEC an initial Registration Statement
covering the maximum number of Registrable Securities (beginning with the Commitment Shares) as shall be permitted to be included
thereon in accordance with applicable SEC rules, regulations and interpretations so as to permit the resale of such Registrable
Securities by the Investor, including but not limited to under Rule 415 under the Securities Act, at then prevailing market prices
(and not fixed prices), as mutually determined by both the Company and the Investor in consultation with their respective legal
counsel, subject to the aggregate number of authorized shares of the Company’s Common Stock then available for issuance in
its Certificate of Incorporation. The initial Registration Statement shall register only the Registrable Securities. The Investor
and its counsel shall have a reasonable opportunity to review and comment upon such Registration Statement and any amendment or
supplement to such Registration Statement and any related prospectus prior to its filing with the SEC, and the Company shall give
due consideration to all reasonable comments. The Investor shall furnish all information reasonably requested by the Company for
inclusion therein. The Company shall use its reasonable best efforts to have the Registration Statement and any amendment declared
effective by the SEC within 90 calendar days of the date hereof (with the understanding that it is the intent of the Company and
Investor that such Registration Statement and any amendment be declared effective by the SEC at the earliest possible date). The
Company shall use reasonable best efforts to keep the Registration Statement effective, including but not limited to pursuant to
Rule 415 promulgated under the Securities Act, and available for the resale by the Investor of all of the Registrable Securities
covered thereby at all times until the earlier of (i) the date as of which the Investor may sell all of the Registrable Securities
without restriction pursuant to Rule 144 promulgated under the Securities and (ii) the date on which the Investor shall have sold
all the Registrable Securities covered thereby and no Available Amount remains under the Purchase Agreement (the “Registration
Period”). The Registration Statement (including any amendments or supplements thereto and prospectuses contained therein)
shall not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein, or necessary
to make the statements therein, in light of the circumstances in which they were made, not misleading.

b.       

Rule 424
Prospectus. The Company shall, as required by applicable securities regulations, from time to time file with the SEC, pursuant
to Rule 424 promulgated under the Securities Act, the prospectus and prospectus supplements, if any, to be used in connection with
sales of the Registrable Securities under the Registration Statement. The Investor and its counsel shall have a reasonable opportunity
to review and comment upon such prospectus prior to its filing with the SEC, and the Company shall give due consideration to all
such comments. The Investor shall use its reasonable best efforts to comment upon such prospectus within one (1) Business Day from
the date the Investor receives the final pre-filing version of such prospectus.

c.       

Sufficient
Number of Shares Registered. In the event the number of shares available under the Registration Statement is insufficient
to cover all of the Registrable Securities, the Company shall amend the Registration Statement or file a new Registration Statement
(a “New Registration Statement”), so as to cover all of such Registrable Securities (subject to the limitations
set forth in Section 2(a)) as soon as practicable, but in any event not later than ten (10) Business Days after the necessity
therefor arises, subject to any limits that may be imposed by the SEC pursuant to Rule 415 under the Securities Act. The Company
shall use it reasonable best efforts to cause such amendment and/or New Registration Statement to become effective as soon as
practicable following the filing thereof. In the event that any of the Commitment Shares are not included in the Registration
Statement, or have not been included in any New Registration Statement and the Company files any other registration statement
under the Securities Act (other than on Form S-4, Form S-8, or with respect to other employee related plans or rights offerings)
(“Other Registration Statement”) then the Company shall include in such Other Registration Statement first
all of such Commitment Shares that have not been previously registered, second all of Put Shares that not have been previously
registered, and third any other securities the Company wishes to include in such Other Registration Statement. The Company agrees
that it shall not file any such Other Registration Statement unless all of the Put Shares and Commitment Shares have been included
in such Other Registration Statement or otherwise have been registered for resale as described above. 

    	 

    	 

    

  

d.       

Offering.
If the staff of the SEC (the “Staff”) or the SEC seeks to characterize any offering pursuant to a Registration
Statement filed pursuant to this Agreement as constituting an offering of securities that does not permit such Registration Statement
to become effective and be used for resales by the Investor under Rule 415 at then-prevailing market prices (and not fixed prices),
or if after the filing of the initial Registration Statement with the SEC pursuant to Section 2(a), the Company is otherwise required
by the Staff or the SEC to reduce the number of Registrable Securities included in such initial Registration Statement, then the
Company shall reduce the number of Registrable Securities to be included in such initial Registration Statement (with the prior
consent, which shall not be unreasonably withheld, of the Investor and its legal counsel as to the specific Registrable Securities
to be removed therefrom) until such time as the Staff and the SEC shall so permit such Registration Statement to become effective
and be used as aforesaid. In the event of any reduction in Registrable Securities pursuant to this paragraph, the Company shall
file one or more New Registration Statements in accordance with Section 2(c) until such time as all Registrable Securities have
been included in Registration Statements that have been declared effective and the prospectus contained therein is available for
use by the Investor. Notwithstanding any provision herein or in the Purchase Agreement to the contrary, the Company’s obligations
to register Registrable Securities (and any related conditions to the Investor’s obligations) shall be qualified as necessary
to comport with any requirement of the SEC or the Staff as addressed in this Section 2(d).

e.       

Suspension
Period.

(i)       

Notwithstanding
anything herein to the contrary, subject to the provisions of this Section 2(e) and a good faith determination by the Company that
it is in the best interests of the Company to suspend the use of any registration statement, following the effectiveness of such
registration statement (and the filings with any federal or state securities commissions), the Company, by written notice to the
Investor, may direct the Investor to suspend sales of the Registrable Securities pursuant to such registration statement for such
times as the Company reasonably may determine is necessary and advisable (but in no event for more than 30 days in any 90-day period
or 90 days in any 365-day period), if any of the following events shall occur: (i) there is material non-public information regarding
the Company that (A) the Company determines not to be in the Company’s best interest to disclose, (B) would, in the good
faith determination of the Company, require any revisions to the Registration Statement so that it will not contain any untrue
statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading, and (C) the Company is not otherwise required
to disclose, (ii) there is a significant bone fide business opportunity (including the acquisition or disposition of assets (other
than in the ordinary course of business), including any significant merger, consolidation, tender offer or other similar transaction)
available to the Company which the Company determines not to be in the Company’s best interest to disclose, or (iii) the
Company is required to file a post-effective amendment to a Registration Statement to incorporate the Company’s quarterly
or annual reports or audited financial statements on Forms 10-Q and 10-K; provided that no suspension period permitted pursuant
to this clause (iii) shall continue for more than 5 consecutive business days.

(ii)       

Upon the earlier
to occur of (A) the Company delivering to the Investor an End of Suspension Notice (as defined below) and (B) the end of the maximum
permissible suspension period, the Company shall promptly amend or supplement the registration statement on a post-effective basis,
if necessary, or to take such action as is necessary to make resumed use of the registration statement compatible with the Company’s
best interests, as applicable, so as to permit the Investors to resume sales of the Registrable Securities as soon as possible.

(iii)       

In the case
of an event that causes the Company to suspend the use of a Registration Statement (a “Suspension Event”),
the Company shall give written notice (a “Suspension Notice”) to the Investor to suspend sales of the Registrable
Securities, and such notice shall state that such suspension shall continue only for so long as the Suspension Event or its effect
is continuing and the Company is taking all reasonable steps to terminate suspension of the effectiveness of the Registration
Statement as promptly as possible. The Investor shall not effect any sales of the Registrable Securities pursuant to such Registration
Statement (or such filings) at any time after it has received a Suspension Notice from the Company and prior to receipt of an
End of Suspension Notice. If so directed by the Company, the Investor will deliver to the Company (at the expense of the Company)
all copies other than permanent file copies then in such Investor’s possession of the prospectus covering the Registrable
Securities at the time of receipt of the Suspension Notice. The Investor may recommence effecting sales of the Registrable Securities
pursuant to the registration statement (or such filings) following further notice to such effect (an “End of Suspension
Notice”) from the Company, which End of Suspension Notice shall be given by the Company to the Investor in the manner
described above promptly following the conclusion of any Suspension Event and its effect. 

    	 

    	 

    

  

3.       

RELATED
OBLIGATIONS.

With respect
to the Registration Statement and whenever any Registrable Securities are to be registered pursuant to Section 2 including on any
New Registration Statement, the Company shall use its reasonable best efforts to effect the registration of the Registrable Securities
in accordance with the intended method of disposition thereof and, pursuant thereto, the Company shall have the following obligations:

a.       

The Company
shall prepare and file with the SEC such amendments (including post-effective amendments) and supplements to any registration statement
and the prospectus used in connection with such registration statement, which prospectus is to be filed pursuant to Rule 424 promulgated
under the Securities Act, as may be necessary to keep the Registration Statement or any New Registration Statement effective at
all times during the Registration Period, and, during such period, comply with the provisions of the Securities Act with respect
to the disposition of all Registrable Securities of the Company covered by the Registration Statement or any New Registration Statement
until such time as all of such Registrable Securities shall have been disposed of in accordance with the intended methods of disposition
by the seller or sellers thereof as set forth in such registration statement.

b.       

The Company
shall permit the Investor to review and comment upon the Registration Statement or any New Registration Statement and all amendments
and supplements thereto at least two (2) Business Days prior to their filing with the SEC, and not file any document in a form
to which Investor reasonably objects. The Investor shall use its reasonable best efforts to comment upon the Registration Statement
or any New Registration Statement and any amendments or supplements thereto within two (2) Business Days from the date the Investor
receives the final version thereof. The Company shall furnish to the Investor, without charge any correspondence from the SEC or
the staff of the SEC to the Company or its representatives relating to the Registration Statement or any New Registration Statement.

c.       

Upon request
of the Investor, the Company shall furnish to the Investor, (i) promptly after the same is prepared and filed with the SEC, at
least one copy of such registration statement and any amendment(s) thereto, including financial statements and schedules, all documents
incorporated therein by reference and all exhibits, (ii) upon the effectiveness of any registration statement, a copy of the prospectus
included in such registration statement and all amendments and supplements thereto (or such other number of copies as the Investor
may reasonably request) and (iii) such other documents, including copies of any preliminary or final prospectus, as the Investor
may reasonably request from time to time in order to facilitate the disposition of the Registrable Securities owned by the Investor.
For the avoidance of doubt, any filing available to the Investor via the SEC’s live EDGAR system shall be deemed “furnished
to the Investor” hereunder.

d.       

The Company
shall use reasonable best efforts to (i) register and qualify the Registrable Securities covered by a registration statement under
such other securities or “blue sky” laws of such jurisdictions in the United States as the Investor reasonably requests,
(ii) prepare and file in those jurisdictions, such amendments (including post-effective amendments) and supplements to such registrations
and qualifications as may be necessary to maintain the effectiveness thereof during the Registration Period, (iii) take such other
actions as may be necessary to maintain such registrations and qualifications in effect at all times during the Registration Period,
and (iv) take all other actions reasonably necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions;
provided, however, that the Company shall not be required in connection therewith or as a condition thereto to (x) qualify to
do business in any jurisdiction where it would not otherwise be required to qualify but for this Section 3(d), (y) subject itself
to general taxation in any such jurisdiction, or (z) file a general consent to service of process in any such jurisdiction. The
Company shall promptly notify the Investor who holds Registrable Securities of the receipt by the Company of any notification
with respect to the suspension of the registration or qualification of any of the Registrable Securities for sale under the securities
or “blue sky” laws of any jurisdiction in the United States or its receipt of actual notice of the initiation or threatening
of any proceeding for such purpose. 

    	 

    	 

    

  

e.       

As promptly
as practicable after becoming aware of such event or facts, the Company shall notify the Investor in writing of the happening of
any event or existence of such facts as a result of which the prospectus included in any registration statement, as then in effect,
includes an untrue statement of a material fact or omits to state 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 promptly prepare a supplement
or amendment to such registration statement to correct such untrue statement or omission, and deliver a copy of such supplement
or amendment to the Investor (or such other number of copies as the Investor may reasonably request). The Company shall also promptly
notify the Investor in writing (i) when a prospectus or any prospectus supplement or post-effective amendment has been filed, and
when a registration statement or any post-effective amendment has become effective (notification of such effectiveness shall be
delivered to the Investor by electronic mail or facsimile on the same day of such effectiveness and by overnight mail), (ii) of
any request by the SEC for amendments or supplements to any registration statement or related prospectus or related information,
and (iii) of the Company’s reasonable determination that a post-effective amendment to a registration statement would be
appropriate.

f.       

The Company
shall use its reasonable best efforts to prevent the issuance of any stop order or other suspension of effectiveness of any registration
statement, or the suspension of the qualification of any Registrable Securities for sale in any jurisdiction and, if such an order
or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest practicable time and to notify the
Investor of the issuance of such order and the resolution thereof or its receipt of actual notice of the initiation or threat of
any proceeding for such purpose.

g.       

The Company
shall (i) cause all the Registrable Securities to be listed on each securities exchange on which securities of the same class or
series issued by the Company are then listed, if any, if the listing of such Registrable Securities is then permitted under the
rules of such exchange, or (ii) secure designation and quotation of all the Registrable Securities on the Principal Market. The
Company shall pay all fees and expenses in connection with satisfying its obligation under this Section.

h.       

The Company
shall cooperate with the Investor to facilitate the timely preparation and delivery of certificates (not bearing any restrictive
legend) representing the Registrable Securities to be offered pursuant to any registration statement and enable such certificates
to be in such denominations or amounts as the Investor may reasonably request and registered in such names as the Investor may
request.

i.       

The Company
shall at all times provide a transfer agent and registrar with respect to its Common Stock.

j.       

If reasonably
requested by the Investor, the Company shall (i) as promptly as practicable incorporate in a prospectus supplement or post-effective
amendment such information as the Investor believes should be included therein relating to the sale and distribution of Registrable
Securities, including, without limitation, information with respect to the number of Registrable Securities being sold, the purchase
price being paid therefor and any other terms of the offering of the Registrable Securities; (ii) make all required filings of
such prospectus supplement or post-effective amendment as soon as practicable upon notification of the matters to be incorporated
in such prospectus supplement or post-effective amendment; and (iii) supplement or make amendments to any registration statement.

k.       

The Company
shall use its reasonable best efforts to cause the Registrable Securities covered by any registration statement to be registered
with or approved by such other governmental agencies or authorities as may be necessary to consummate the disposition of such Registrable
Securities.

l.       

Within one
(1) Business Day after any registration statement which includes the Registrable Securities is ordered effective by the SEC, the
Company shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable Securities
(with copies to the Investor) confirmation that such registration statement has been declared effective by the SEC in the form
attached hereto as Exhibit A. Thereafter, if requested by the Buyer at any time, the Company shall require its counsel
to deliver to the Buyer a written confirmation whether or not the effectiveness of such registration statement has lapsed at any
time for any reason (including, without limitation, the issuance of a stop order) and whether or not the registration statement
is current and available to the Buyer for sale of all of the Registrable Securities. 

    	 

    	 

    

  

m.       

The Company
shall take all other reasonable actions necessary to expedite and facilitate disposition by the Investor of Registrable Securities
pursuant to any registration statement.

4.       

OBLIGATIONS
OF THE INVESTOR.

a.       

The Company
shall notify the Investor in writing of the information the Company reasonably requires from the Investor in connection with any
registration statement hereunder. The Investor shall furnish to the Company such information regarding itself, the Registrable
Securities held by it and the intended method of disposition of the Registrable Securities held by it as shall be reasonably required
to effect the registration of such Registrable Securities and shall execute such documents in connection with such registration
as the Company may reasonably request.

b.       

The Investor
agrees to cooperate with the Company as reasonably requested by the Company in connection with the preparation and filing of any
registration statement hereunder.

c.       

The Investor
agrees that, upon receipt of any notice from the Company of the happening of any event or existence of facts of the kind described
in Section 3(f) or the first sentence of 3(e), the Investor will immediately discontinue disposition of Registrable Securities
pursuant to any registration statement(s) covering such Registrable Securities until the Investor’s receipt of the copies
of the supplemented or amended prospectus contemplated by Section 3(f) or the first sentence of 3(e). Notwithstanding anything
to the contrary, the Company shall cause its transfer agent to promptly deliver shares of Common Stock without any restrictive
legend in accordance with the terms of the Purchase Agreement in connection with any sale of Registrable Securities with respect
to which an Investor has entered into a contract for sale prior to the Investor’s receipt of a notice from the Company of
the happening of any event of the kind described in Section 3(f) or the first sentence of Section 3(e) and for which the Investor
has not yet settled.

5.       

EXPENSES
OF REGISTRATION.

All reasonable
expenses, other than sales or brokerage commissions and transfer taxes, if any, relating to the sale or disposition of Registrable
Securities by the Investor and fees and disbursements of counsel for the Investor, incurred in connection with registrations,
filings or qualifications pursuant to Sections 2 and 3, including, without limitation, all registration, listing and qualifications
fees, printers and accounting fees, and fees and disbursements of counsel for the Company, shall be paid by the Company. 

    	 

    	 

    

  

6.       

INDEMNIFICATION.

a.       

To the fullest
extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend the Investor, each Person, if
any, who controls the Investor, the members, the directors, officers, partners, employees, agents, representatives of the Investor
and each Person, if any, who controls the Investor within the meaning of the Securities Act or the Securities Exchange Act of
1934, as amended (the “Exchange Act”) (each, an “Investor Indemnified Person”), against
any losses, claims, damages, liabilities, judgments, fines, penalties, charges, costs, attorneys’ fees, amounts paid in
settlement or expenses, joint or several (“Indemnified Damages”), incurred in investigating, preparing or defending
any action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental,
administrative or other regulatory agency, body or the SEC, whether pending or threatened, whether or not an indemnified party
is or may be a party thereto(collectively, “Claims”), to which any of them may become subject insofar as such
Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any
untrue statement or alleged untrue statement of a material fact in the Registration Statement, any New Registration Statement
or any post-effective amendment thereto or in any filing made in connection with the qualification of the offering under the securities
or other “blue sky” laws of any jurisdiction in which Registrable Securities are offered (“Blue Sky Filing”),
or the omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements
therein not misleading, or (ii) any untrue statement or alleged untrue statement of a material fact contained in the final prospectus
(as amended or supplemented, if the Company files any amendment thereof or supplement thereto with the SEC) or the omission or
alleged omission to state therein any material fact necessary to make the statements made therein, in light of the circumstances
under which the statements therein were made, not misleading or (iii) any violation or alleged violation by the Company of the
Securities Act, the Exchange Act, any other law, including, without limitation, any state securities law, or any rule or regulation
thereunder relating to the offer or sale of the Registrable Securities pursuant to the Registration Statement or any New Registration
Statement or ); or any material violation by the Company of this Agreement (the matters in the foregoing clauses (i) through (iv)
being, collectively, “Violations”). The Company shall reimburse each Investor Indemnified Person promptly as
such expenses are incurred and are due and payable, for any reasonable legal fees or other reasonable expenses incurred by them
in connection with investigating or defending any such Claim. Notwithstanding anything to the contrary contained herein, the indemnification
agreement contained in this Section 7(a): (i) shall not apply to a Claim by an Investor Indemnified Person arising out of or based
upon a Violation which occurs in reliance upon and in conformity with information about the Investor furnished in writing to the
Company by such Investor Indemnified Person expressly for use in connection with the preparation of the Registration Statement,
any New Registration Statement or any such amendment thereof or supplement thereto, or any final prospectus or amendment or supplement
thereto; (ii) with respect to any superseded prospectus, shall not inure to the benefit of any such person from whom the person
asserting any such Claim purchased the Registrable Securities that are the subject thereof (or to the benefit of any person controlling
such person) if the untrue statement or omission of material fact contained in the superseded prospectus was corrected in the
revised prospectus, as then amended or supplemented, if such revised prospectus was timely made available by the Company pursuant
to Section 3(c) or Section 3(e), and the Investor Indemnified Person was promptly advised in writing not to use the incorrect
prospectus prior to the use giving rise to a violation; (iii) shall not be available to the extent such Claim is based on a failure
of the Investor to deliver or to cause to be delivered the prospectus made available by the Company, if such prospectus was timely
made available by the Company pursuant to Section 3(c) or Section 3(e); and (iv) shall not apply to amounts paid in settlement
of any Claim if such settlement is effected without the prior written consent of the Company, which consent shall not be unreasonably
withheld. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the Indemnified
Person and shall survive the transfer of the Registrable Securities by the Investor pursuant to Section 10. 

    	 

    	 

    

  

b.       

To the fullest
extent permitted by law, the Investor will, and hereby does, indemnify, hold harmless and defend the Company, each Person, if any,
who controls the Company, the directors, officers, partners, employees, agents, representatives of the Company and each Person,
if any, who controls the Company within the meaning of the Securities Act or the Exchange Act (each, a “Company Indemnified
Person” and, together with “Investor Indemnified Person, an “Indemnified Person”), against any reasonable
Indemnified Damages incurred in investigating, preparing or defending any Claims, to which any of them may become subject insofar
as such Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon:
(i) any untrue statement or alleged untrue statement of a material fact in the Registration Statement, any post-effective amendment
thereto or in any Blue Sky Filing, or the omission or alleged omission to state a material fact required to be stated therein or
necessary to make the statements therein not misleading, or (ii) any untrue statement or alleged untrue statement of a material
fact contained in the final prospectus (as amended or supplemented, if the Company files any amendment thereof or supplement thereto
with the SEC) or the omission or alleged omission to state therein any material fact necessary to make the statements made therein,
in light of the circumstances under which the statements therein were made, not misleading or (iii) any material violation by the
Investor of this Agreement (the matters in the foregoing clauses (i) through (iii) being, collectively, “Investor Violations”),
provided (A) such Claim arises out of or is based upon an Investor Violation which occurs in reliance upon and in conformity with
information about the Investor furnished in writing to the Company by such Investor expressly for use in connection with the preparation
of the Registration Statement, any New Registration Statement or any such amendment thereof or supplement thereto, or any final
prospectus or amendment or supplement thereto; (B) such Claim with respect to any superseded prospectus, is made by any such person
from whom the person asserting any such Claim purchased the Registrable Securities that are the subject thereof (or to the benefit
of any person controlling such person) if the untrue statement or omission of material fact contained in the superseded prospectus
was corrected in the revised prospectus, as then amended or supplemented, if such revised prospectus was timely made available
by the Company pursuant to Section 3(c) or Section 3(e), and the Investor was promptly advised in writing not to use the incorrect
prospectus prior to the use giving rise to a violation; and (C) such Claim is based on a failure of the Investor to deliver or
to cause to be delivered the prospectus made available by the Company, if such prospectus was timely made available by the Company
pursuant to Section 3(c) or Section 3(e). The Investor shall reimburse each Company Indemnified Person within a reasonable amount
of time, for any reasonable legal fees or other reasonable expenses incurred by them in connection with investigating or defending
any such Claim.

c.       

Promptly
after receipt by an Indemnified Person under this Section 7 of notice of the commencement of any action or proceeding (including
any governmental action or proceeding) involving a Claim, such Indemnified Person shall, if a Claim in respect thereof is to be
made against any indemnifying party under this Section 7, deliver to the indemnifying party a written notice of the commencement
thereof, and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires,
jointly with any other indemnifying party similarly noticed, to assume control of the defense thereof with counsel mutually satisfactory
to the indemnifying party and the Indemnified Person; provided, however, that an Indemnified Person shall have the right to retain
its own counsel with the fees and expenses to be paid by the indemnifying party, if, in the reasonable opinion of counsel retained
by the indemnifying party, the representation by such counsel of the Indemnified Person and the indemnifying party would be inappropriate
due to actual differing interests between such Indemnified Person and any other party represented by such counsel in such proceeding.
The Indemnified Person shall cooperate fully with the indemnifying party in connection with any negotiation or defense of any
such action or claim by the indemnifying party and shall furnish to the indemnifying party all information reasonably available
to the Indemnified Party or Indemnified Person which relates to such action or claim. The indemnifying party shall keep the Indemnified
Person fully apprised at all times as to the status of the defense or any settlement negotiations with respect thereto. No indemnifying
party shall be liable for any settlement of any action, claim or proceeding effected without its written consent, provided, however,
that the indemnifying party shall not unreasonably withhold, delay or condition its consent. No indemnifying party shall, without
the consent of the Indemnified Person, consent to entry of any judgment or enter into any settlement or other compromise which
does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified
Person of a release from all liability in respect to such claim or litigation. Following indemnification as provided for hereunder,
the indemnifying party shall be subrogated to all rights of the Indemnified Person with respect to all third parties, firms or
corporations relating to the matter for which indemnification has been made. The failure to deliver written notice to the indemnifying
party within a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability
to the Indemnified Person under this Section 6, except to the extent that the indemnifying party is prejudiced in its ability
to defend such action. 

    	 

    	 

    

  

d.       

The indemnification
required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the investigation or defense,
as and when bills are received or Indemnified Damages are incurred.

e.       

The indemnity
agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified Person against
the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject to pursuant to the law.

7.       

CONTRIBUTION.

To the extent
any indemnification by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum
contribution with respect to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted
by law; provided, however, that: (i) no seller of Registrable Securities guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Securities Act) shall be entitled to contribution from any seller of Registrable Securities who was not
guilty of fraudulent misrepresentation; and (ii) contribution by any seller of Registrable Securities shall be limited in amount
to the net amount of proceeds received by such seller from the sale of such Registrable Securities.

8.       

REPORTS
AND DISCLOSURE UNDER THE SECURITIES ACTS.

With a view
to making available to the Investor the benefits of Rule 144 promulgated under the Securities Act or any other similar rule or
regulation of the SEC that may at any time permit the Investor to sell securities of the Company to the public without registration
(“Rule 144”), the Company agrees, at the Company’s sole expense, to:

a.       

make and keep
public information available, as those terms are understood and defined in Rule 144;

b.       

file with
the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act
so long as the Company remains subject to such requirements and the filing of such reports and other documents is required for
the applicable provisions of Rule 144;

c.       

furnish to
the Investor so long as the Investor owns Registrable Securities, promptly upon request, (i) a written statement by the Company
that it has complied with the reporting and or disclosure provisions of Rule 144, the Securities Act and the Exchange Act, (ii)
a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company,
and (iii) such other information as may be reasonably requested to permit the Investor to sell such securities pursuant to Rule
144 without registration; and

d.       

take such
additional action as is requested by the Investor to enable the Investor to sell the Registrable Securities pursuant to Rule 144,
including, without limitation, delivering all such legal opinions, consents, certificates, resolutions and instructions to the
Company’s Transfer Agent as may be requested from time to time by the Investor and otherwise fully cooperate with Investor
and Investor’s broker to effect such sale of securities pursuant to Rule 144.

The Company
agrees that damages may be an inadequate remedy for any breach of the terms and provisions of this Section 8 and that Investor
shall, whether or not it is pursuing any remedies at law, be entitled to equitable relief in the form of a preliminary or permanent
injunctions, without having to post any bond or other security, upon any breach or threatened breach of any such terms or provisions. 

    	 

    	 

    

  

9.       

ASSIGNMENT
OF REGISTRATION RIGHTS.

The Company
shall not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Investor. The Investor
may not assign its rights under this Agreement without the written consent of the Company.

10.       

AMENDMENT
OF REGISTRATION RIGHTS.

No provision
of this Agreement may be amended or waived by the parties from and after the date that is one Business Day immediately preceding
the initial filing of the Registration Statement with the SEC. Subject to the immediately preceding sentence, no provision of this
Agreement may be (i) amended other than by a written instrument signed by both parties hereto or (ii) waived other than in a written
instrument signed by the party against whom enforcement of such waiver is sought. Failure of any party to exercise any right or
remedy under this Agreement or otherwise, or delay by a party in exercising such right or remedy, shall not operate as a waiver
thereof.

11.       

MISCELLANEOUS.

a.       

A Person is
deemed to be a holder of Registrable Securities whenever such Person owns or is deemed to own of record such Registrable Securities.
If the Company receives conflicting instructions, notices or elections from two or more Persons with respect to the same Registrable
Securities, the Company shall act upon the basis of instructions, notice or election received from the registered owner of such
Registrable Securities.

b.       

All notices,
demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless
otherwise specified herein, shall be transmitted by email as a PDF, as set forth below or to such other email address as such party
shall have specified most recently by written notice given in accordance herewith. Any notice or other communication required or
permitted to be given hereunder shall be deemed effective (upon delivery by email at the email address designated below (if delivered
on a business day during normal business hours where such notice is to be received), or the first business day following such delivery
(if delivered other than on a business day during normal business hours where such notice is to be received). The addresses for
such communications shall be:

If to the Company:

TWO RIVERS WATER &
FARMING COMPANY

E-mail: bgregorak@2riverswater.com
and wharding@2riverswater.com

If to the Investor:

SPOTFIN FUNDING LLC

Email: sean@spotfinfunding.com
and gavan@spotfinfunding.com

With a copy to (which shall
not constitute notice or service of process):

	 	Legal & Compliance, LLC
	 	330 Clematis Street
	 	Suite 217
	 	West Palm Beach, FL 33401
	 	Telephone:  	561-514-0936
	 	Facsimile:	561-514-0832
	 	E-mail:	CFriend@legalandcompliance.com
	 	Attention:  	Chad Friend, Esq., LL.M.

 

Either party hereto may from
time to time change its email for notices under this Section 11 by giving at least ten (10) days’ prior written notice of
such changed address to the other party hereto. 

    	 

    	 

    

  

c.       

The laws of
the State of Colorado shall govern all issues concerning this Agreement. All other questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be governed by the internal laws of the State of Colorado, without giving
effect to any choice of law or conflict of law provision or rule (whether of the State of Colorado or any other jurisdictions)
that would cause the application of the laws of any jurisdictions other than the State of Colorado. Each party hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting the State of Colorado, for the adjudication of any
dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction
of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action
or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served
in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this
Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained
herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. If any provision of this
Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity
or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of
this Agreement in any other jurisdiction. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT
TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS
AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

d.       

This Agreement
and the Purchase Agreement constitute the entire agreement among the parties hereto with respect to the subject matter hereof and
thereof. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein and
therein. This Agreement and the Purchase Agreement supersede all prior agreements and understandings among the parties hereto with
respect to the subject matter hereof and thereof.

e.       

Subject to
the requirements of Section 9, this Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns
of each of the parties hereto.

f.       

The headings
in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

g.       

This Agreement
may be executed in identical counterparts, each of which shall be deemed an original but all of which shall constitute one and
the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile transmission
or by e-mail in a “.pdf” format data file of a copy of this Agreement bearing the signature of the party so delivering
this Agreement.

h.       

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

i.       

The language
used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and no rules of strict
construction will be applied against any party.

j.       

This Agreement
is intended for the benefit of the parties hereto and their respective successors and permitted assigns, and is not for the benefit
of, nor may any provision hereof be enforced by, any other Person.

* * * * * *

    	 

    	 

    

 

IN WITNESS
WHEREOF, the parties have caused this Agreement to be duly executed as of day and year first above written.

 

	 	THE COMPANY: 
	 	 
	 	TWO RIVERS WATER & FARMING COMPANY
	 	 
	 	 
	 	By:	 
	 	Name: 	Bill Gregorak
	 	Title: 	Chief Financial Officer
	 	 
	 	 
	 	INVESTOR: 
	 	 
	 	SPOTFIN FUNDING LLC
	 	 
	 	 
	 	By: 	 
	 	Name: 	Sean Wright
	 	Title: 	Managing Member

 

    	 

    	 

    

 

EXHIBIT A

TO REGISTRATION RIGHTS
AGREEMENT

FORM OF NOTICE OF EFFECTIVENESS

OF REGISTRATION STATEMENT

______, 2017

Broadridge Financial Solutions, Inc.

1717 Arch Street, Suite 1300

Philadelphia, PA 19103

Re: [__________]

Ladies and Gentlemen:

We are counsel
to TWO RIVERS WATER & FARMING COMPANY, a Colorado corporation (the “Company”). In connection with
that certain Purchase Agreement, dated as of September 14, 2017 (the “Purchase Agreement”), entered into by
and between the Company and Spotfin Funding LLC (the “Buyer”), the Company has agreed to issue to the Buyer
shares of the Company’s Common Stock, $0.001 par value (the “Common Stock”), in an amount up to Five Million
Dollars ($5,000,000.00) (the “Put Shares”), in accordance with the terms of the Purchase Agreement. In connection
with the transactions contemplated by the Purchase Agreement, the Company has registered with the U.S. Securities & Exchange
Commission the following shares of Common Stock:

(1)       

__________ Put Shares to be
issued to the Buyer upon purchase from the Company by the Buyer from time to time; and

(2)       

__________ shares of Common
Stock that were issued as a commitment fee pursuant to the Purchase Agreement (the “Commitment Shares”).

Pursuant to
the Purchase Agreement, the Company also has entered into a registration rights agreement, of even date with the Purchase Agreement
with the Buyer (the “Registration Rights Agreement”) pursuant to which the Company agreed, among other things,
to register the Put Shares and the Commitment Shares under the Securities Act of 1933, as amended (the “Securities Act”).
In connection with the Company’s obligations under the Purchase Agreement and the Registration Rights Agreement, on _______,
2017, the Company filed a Registration Statement (File No. 333-[________]) (the “Registration Statement”)
with the Securities and Exchange Commission (the “SEC”) relating to the resale of the Put Shares and the Commitment
Shares.

In connection
with the foregoing, we advise you that a member of the SEC’s staff has advised us by telephone that the SEC has entered an
order declaring the Registration Statement effective under the Securities Act at [_______] [A.M./P.M.] on [____________],
2017 and we have no knowledge, after review of the list of stop orders included on https://www.sec.gov/litigation/stoporders.shtml,
that any stop order suspending its effectiveness has been issued or that any proceedings for that purpose are pending before, or
threatened by, the SEC and the Put Shares and the Commitment Shares are available for resale under the Securities Act pursuant
to the Registration Statement and may be issued without any restrictive legend.

 

	 	Very truly yours,
	 	[Company Counsel]
	 	 
	 	By: ____________________

 

cc: Spotfin Funding LLC

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