Document:

Exhibit 10.1
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AMENDMENT 7
TO
MASTER PROFESSIONAL SERVICES AGREEMENT 
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	Amendment No.:
	- 7 -

	Amendment Effective Date:
	5 January, 2021

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This “Amendment 7” is made as of the Amendment Effective Date by and between Citigroup Technology, Inc. (“Citi”) and Virtusa Corporation (“Supplier”) and amends the Master Professional Services Agreement between the Parties dated  July 1, 2015, as amended (the “Agreement).
BACKGROUND AND PURPOSE
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WHEREAS, on September 9, 2020, Supplier entered into an agreement and plan of merger (the “Merger Agreement”) with Austin HoldCo Inc. (“Parent”) and Austin BidCo Inc., a wholly owned subsidiary of Parent (“Sub”), pursuant to which, on the terms and subject to the conditions set forth in the Merger Agreement, Sub will be merged with and into Supplier, with Supplier continuing as the surviving corporation and a wholly-owned subsidiary of Parent (the “Baring Transaction”);
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WHEREAS, under the Agreement, Citi may terminate the Agreement within twelve (12) months following consummation of the Baring Transaction, which right Virtusa has asked Citi to waive; and
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WHEREAS, in consideration of and to enable the foregoing waiver, the Parties have agreed to amend the audit provisions of the Agreement and for Parent to guarantee Supplier’s obligations under the Agreement,
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NOW THERFORE, in consideration of the mutual covenants contained in this Amendment 7, Supplier and Citi agree as follows:

	1.	Capitalized Terms.  All capitalized terms used and not defined in this Amendment 7 have the meanings specified in the Agreement.

	2.	Waiver.  Subject to execution of a Parent guarantee in a form reasonably acceptable to Citi, Citi hereby waives its right under Section 2.2.2(c) of the Agreement to terminate the Agreement due to the Baring Transaction as characterized herein.  Except for this limited waiver, Citi does not waive any other rights or remedies it may have under the Agreement, at law, or in equity.

	3.	Replacing Sections 14.2.1 and 14.2.2 - “Audit”.  Sections 14.2.1 and 14.2.2 (Audit) of the Agreement is deleted in its entirety and replaced with the following:
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“14.2.1Supplier and its Affiliates will permit Citi, Citi Affiliates, Regulators or a duly assigned representative of any or all of them (collectively, “Citi’s Audit Personnel”) to conduct an audit of Supplier’s organization as may be required under Citi’s policies and procedures or Applicable Law.  Without limiting the foregoing, Citi’s Audit Personnel shall have the right from time to time to (i) obtain access to Supplier’s and Supplier Affiliates’ books and records, data centers, Service Locations, and relevant Supplier Personnel, to enable Citi’s Audit Personnel to audit, at Citi’s sole expense, any aspects of the provision of Services by Supplier to Citi (including Supplier’s Service Locations, operating practices, policies, processes and procedures relating to the Services and the fees and charges invoiced by Supplier to Citi), including Supplier’s ability to provide the Services contemplated under this Agreement and any Work Order, (ii) copy or take extracts from any records (redacted to remove references to matters other than those related to the Services), (iv) interview Supplier’s Personnel, (iii) run computer programs and perform any other functions necessary for control assessment and/or investigations, and (iv) examine Supplier’s performance of its duties under this Agreement, including audits of practices and procedures, systems, applications development and maintenance procedures and 

practices, general controls (e.g., organizational controls, input/output controls, system modification controls, processing controls, system design controls, and access controls), Quality Plans and related quality management systems, management of any Subcontractors, and security practices and procedures, disaster recovery and back-up procedures. The scope of each audit is determined by Citi’s Audit Personnel and may extend beyond the environment specifically operated on behalf of Citi if other Supplier resources (other systems, environmental support, recovery processes, etc.) are used, but only as and to the extent those other resources relate to the Services provided to Citi under this Agreement  Furthermore, the scope of each audit may include, without limitation, the following: (i) Supplier’s ability to provide the Services contemplated under this Agreement and any Work Order, (ii) Supplier’s compliance with the terms and conditions of this Agreement and all Work Orders including, without limitation, those concerning service levels, Section 5.1 (Policies and Procedures) and Section 22 (Compliance with Law), (iii) Supplier’s Disaster Recovery Plan (as described in Section 4.10.6 (Disaster Recovery Plan)), (iv) Supplier’s information security practices, (v) Supplier’s policies (including its legal and compliance policies), and (vi) any internal and/or external audit reports regarding Supplier’s organization’s operations, controls, or financial condition, when available. Notwithstanding the rights and duties set forth in this Section, Supplier will promptly provide, (i) as required by Citi policies or requested by Citi, a summary of Supplier’s and its Subcontractor’s performance of the Services so that Citi may identify samples of data to request for further review; and (ii) at any time requested by Citi, any records kept in the ordinary course of business that pertain to the Services or any Citi Confidential Information held by the Supplier or its Subcontractors.
14.2.2Supplier will provide prompt and complete responses to reasonable information requests by the Citi’s Audit Personnel and will provide reasonable access to all books, records and information it has compiled regarding all of the foregoing, and will provide use of on-site photocopying equipment and telephones at no charge to Citi’s Audit Personnel.  Supplier will allow Citi’s Audit Personnel to photocopy any documents selected by Auditors that relate to Supplier’s performance of this Agreement and any Work Orders.  Supplier will grant Citi’s Audit Personnel access to systems necessary to conduct an on-site or remote audit, and will allow the Citi’s Audit Personnel to install and operate audit software (providing that such audit software does not interfere with Supplier’s use of Supplier’s systems).  Supplier will establish and maintain internal policies and/or procedures to facilitate the audits contemplated hereunder.  Supplier shall also ensure that all Subcontractors will provide Citi’s Audit Personnel effective access to their premises, employees, and documentation as is reasonable to fully and promptly carry out each audit.”

	4.	Parent Guarantee.  This Amendment 7 will be effective upon execution by Parent of a guarantee of Supplier’s obligations under the Agreement in a form that is reasonably acceptable to Citi.  If Parent does not execute such guarantee, this Amendment 7 will be null and void, even if duly executed.

	5.	Complete Understanding. Except as specified in this Amendment 7, the Agreement remains unchanged and in full effect.  In the event of a conflict between this Amendment 7 and the Agreement, this Amendment 7 takes precedence.

AGREED:
Supplier:Citi:
By:      /s/ Paul D.TutunBy:      /s/ Ted A Dore
Name: Paul D .TutunName: Ted Dore
Title: EVP & General CounselTitle: Managing Director
Date: January 6, 2021Date: January 7, 2021Exhibit 10.52

 

SECURITIES PURCHASE AGREEMENT

 

This Securities Purchase
Agreement (this “Agreement”) is dated as of November 16, 2020, between IIOT-OXYS, Inc., a Nevada corporation
(the “Company”), and the purchaser identified on the signature page hereto (including its successors and assigns,
the “Purchaser”).

 

WHEREAS, subject to
the terms and conditions set forth in this Agreement and pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended
(the “Securities Act”), and Rule 506 promulgated thereunder, the Company desires to issue and sell to the Purchaser,
and the Purchaser desires to purchase from the Company, securities of the Company as more fully described in this Agreement.

 

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

 

ARTICLE I.

DEFINITIONS

 

1.1       Definitions.
In addition to the terms defined elsewhere in this Agreement: (a) capitalized terms that are not otherwise defined herein have
the meanings given to such terms in the Certificate of Designation (as defined herein), and (b) the following terms have the meanings
set forth in this Section 1.1:

 

“Acquiring
Person” shall have the meaning ascribed to such term in Section 4.5.

 

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

 

“Additional
Closing Date(s)” means, for so long as the Agreement remains in effect and/or until the entire Subscription Amount has
been paid, the Purchaser shall purchase at least forty (40) Preferred Shares every thirty (30) calendar days subject to the terms
outlined herein.

 

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

 

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

 

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

 

“Certificate
of Designation” means the Certificate of Designation to be filed prior to the Closing by the Company with the Secretary
of State of the State of Nevada, in the form of Exhibit A attached hereto.

 

 

 

 

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“Closing
Dates” means the Trading Days on which all of the Transaction Documents have been executed and delivered by the applicable
parties thereto in connection with each Closing, and, to the extent applicable, all conditions precedent to (i) the Purchaser’s
obligations to pay the Subscription Amount as to the Closing and (ii) the Company’s obligations to deliver the Securities
as to the Closing, in each case, have been satisfied or waived.

 

“Closing”
means the closing of the purchase and sale of the Securities pursuant to Section 2.1, which shall occur on the First Closing Date,
and/or any Additional Closing Dates. The Closing on the First Closing Date will be for the purchase of forty-five (45) Preferred
Shares at the purchase price of $45,000. Any Additional Closing Dates will be for the purchase of at least forty (40) Preferred
Shares at the Purchase Price of at least $40,000 or $1,000 per Preferred Share.

 

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

 

“Commitment
Shares” means twenty-five (25) Preferred Shares issued upon the First Closing as an equity incentive.

 

“Common
Stock” means the common stock of the Company, par value $0.001 per share, and any other class of securities into which
such securities may hereafter be reclassified or changed.

 

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

 

“Company
Counsel” means Business Legal Advisors, LLC or Brian Higley, Esq.

 

“Disclosure
Schedules” shall have the meaning ascribed to such term in Section 3.1.

 

“Dividend”
means twelve percent (12%) per annum of the stated value of any purchased Preferred Share, paid quarterly by the Company, and at
the Company’s discretion, in cash or in Preferred Stock.

 

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

 

“Event
of Default” means any of the following events: (i) the suspension, cessation from trading or delisting of the Company's
Common Stock on the Principal Market for a period of two (2) consecutive trading days or more; (ii) the failure by the Company
to timely comply with the reporting requirements of the Exchange Act (including applicable extension periods); (iii) the failure
for any reason by the Company to issue Commitment Shares, Dividends or Conversion Shares to the Purchaser within the required time
periods; (iv) the Company breaches any representation, warranty, covenant or other term of condition contained in the definitive
agreements between the parties; (v) the Company files for Bankruptcy or receivership or any money judgment writ, liquidation or
a similar process is entered by or filed against the Company for more than $50,000 and remains unvacated, unbonded or unstayed
for a period of twenty (20) calendar days; (vi) any cessation of operations by the Company or failure by the Company to maintain
any assets, intellectual, personal or real property or other assets which are necessary to conduct its business (vii) the Company
shall lose the "bid" price for its Common stock on the Principal Market; or (viii) if at any time the Common Stock is
no longer DWAC eligible.

 

 

 

 

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

 

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

 

“First
Closing Date” means the date on which the First Closing hereunder occurs, which shall be the date of the execution and
delivery of this Agreement.

“GAAP”
means generally accepted accounting principles in the U.S.

 

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

 

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

 

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

 

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

 

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

 

“Preferred
Stock” means, for each Closing, at least forty (40) shares of the Company’s Series B Preferred Stock issued hereunder
having the rights, preferences and privileges set forth in the Certificate of Designation, in the form of Exhibit A hereto,
and up to six hundred (600) shares of Preferred Stock in the aggregate.

 

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

 

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

 

“Registration
Statement” means any Registration Statement under which the shares of the Company’s common stock is registered.

 

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

 

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

 

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

 

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

 

 

 

 

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“Securities”
means the Preferred Stock or the common shares into which the Preferred Stock is converted.

 

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

 

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

 

“Stated
Value” means $1,200 per share of Series B Preferred Stock.

 

“Subscription
Amount” shall mean the aggregate amount to be paid for the Preferred Stock purchased hereunder as specified on the signature
page under the heading “Subscription Amount,” in United States dollars and in immediately available funds.

 

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

 

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

 

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

 

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

 

“Transfer
Agent” means Issuer Direct the current transfer agent of the Company, with a mailing address of 1981 East 4800 South,
Suite 100, Salt Lake City, UT 84117 and any successor transfer agent of the Company.

 

ARTICLE II.

PURCHASE AND SALE

 

2.1             
Closings. Upon the terms and subject to the conditions set forth herein, substantially concurrent with the execution
and delivery of this Agreement by the parties hereto, the Company agrees to sell, and the Purchaser agrees to purchase, in each
Closing, up to forty (40) shares of Preferred Stock at price of $1,000 per share of Preferred Stock. The Purchaser shall deliver
to the Company, via wire transfer immediately available funds equal to the Purchaser’s Subscription Amount as set forth on
the signature page hereto executed by the Purchaser, and the Company shall deliver to the Purchaser such number of shares of the
Preferred Stock purchased, as determined pursuant to Section 2.2(a) and the Purchaser shall deliver the other items set forth in
Section 2.2 deliverable at the Closing. Upon satisfaction of the covenants and conditions set forth in Sections 2.2 and 2.3, the
Closing shall occur at the offices of Company Counsel or such other location as the parties shall mutually agree.

 

 2.2             
 Deliveries.

 

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

 

 

 

 

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(i)               
At the First Closing, this Agreement duly executed by the Company; and, a certificate evidencing seventy (70) shares of
Preferred Stock, representing the Purchased Shares and the Commitment Shares;

 

(ii)             
At each Closing, a certificate evidencing a number of shares of Preferred Stock equal to the Purchaser’s Subscription
Amount divided by $1,000, registered in the name of the Purchaser and evidence of the filing and acceptance of the Certificate
of Designation from the Secretary of State of Nevada; and

 

(iii)           
At the First Closing, an irrevocable letter of instruction to the Company's Transfer Agent, instructing the Transfer Agent
to maintain for the benefit of the Purchaser, ten million five hundred thousand (10,500,000) shares of its common stock. At each
Additional Closing that is more than one hundred and twenty days (120) from the First Closing, an irrevocable letter of instruction
to the Company’s Transfer Agent, instructing the Transfer Agent to maintain for the benefit of the Purchaser two-and-half
times (2.5x) the number of common shares needed to by the Purchaser to convert all shares of Preferred Stock held by the Purchaser.

 

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

 

(i)              
At the First Closing, this Agreement duly executed by the Purchaser; and

 

(ii)            
the
Purchaser’s Subscription Amount by wire transfer to the account specified in writing by the Company together with the subscription
form attached as an Exhibit below.

 

 2.3             
Closing Conditions.

 

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

 

(i)              
the accuracy in all material respects on the applicable Closing Date of the representations and warranties of the Purchaser
contained herein (unless as of a specific date therein in which case they shall be accurate as of such date);

 

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

 

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

 

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

 

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

 

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

 

 

 

 

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

 

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

 

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

 

(c)              
The obligations of the Purchaser hereunder in connection with each Additional Closing are further subject to the following
conditions being met:

 

(i)              
There are no uncured Events of Default;

 

(ii)            
The Company’s average daily dollar volume for the thirty (30) Trading Days preceding the date of such Closing is not
less than ten thousand dollars ($10,000) per day. If the foregoing contingency is not met at any relevant Closing, the Company
may postpone said Closing until such a time at which the average daily trading volume for the preceding thirty (30) trading days
is equal to or greater than ten thousand dollars ($10,000) per day;

 

(iii)           
The Company’s Closing Price remains above one half of one cent ($0.005) for each of the thirty (30) trading days preceding
the relevant Closing; and

 

(d)              
If the Company’s average dollar trading volume for the thirty (30) days preceding a relevant Closing equals at least
fifty thousand dollars ($50,000) per day, the relevant Closing may be increased by the Company to at least seventy-five (75) shares.

 

(e)              
No Closing shall occur (i) after the two-year anniversary of the date hereof; (ii) after the entire Subscription Amount
has been funded; and/or (iii) at any time an Event of Default exists and remains uncured.

 

ARTICLE III.

REPRESENTATIONS AND WARRANTIES

 

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

 

 

 

 

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

 

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

 

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

 

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

 

 

 

 

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(e)              
Filings, Consents and Approvals. The Company has timely filed all quarterly and annual reports required to be filed
by it with the SEC pursuant to the reporting requirements of the Securities Exchange Act of 1934, as amended (the “1934 Act”)
(all of the foregoing filed prior to the date hereof and all exhibits included therein and financial statements and schedules thereto
and documents (other than exhibits to such documents) incorporated by reference therein, being hereinafter referred to herein as
the “SEC Documents”). The Company has delivered to Purchaser true and complete copies of the SEC Documents, except
for such exhibits and incorporated documents, and except as such Documents are available EDGAR filings on the SEC’s sec.gov
website. As of their respective dates, the SEC Documents complied in all material respects with the requirements of the 1934 Act
and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents,
at the time they were filed with the SEC, 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. None of the statements made in any such SEC Documents is, or has been, required to be amended or updated
under applicable law (except for such statements as have been amended or updated in subsequent filings prior the date hereof).
As of their respective dates, the financial statements of the Company included in the SEC Documents complied as to form in all
material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto.
Such financial statements have been prepared in accordance with United States generally accepted accounting principles, consistently
applied, during the periods involved and fairly present in all material respects the consolidated financial position of the Company
and its consolidated Subsidiaries as of the dates thereof and the consolidated results of their operations and cash flows for the
periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments). Except as set forth in
the financial statements of the Company included in the SEC Documents, the Company has no liabilities, contingent or otherwise,
other than (i) liabilities incurred in the ordinary course of business subsequent to November 1, 2019, and (ii) obligations under
contracts and commitments incurred in the ordinary course of business and not required under generally accepted accounting principles
to be reflected in such financial statements, which, individually or in the aggregate, are not material to the financial condition
or operating results of the Company. The Company is subject to the reporting requirements of the 1934 Act. For the avoidance of
doubt, filing of the documents required in this Section 3(g) via the SEC’s Electronic Data Gathering, Analysis, and Retrieval
system (“EDGAR”) shall satisfy all delivery requirements of this Section 3(g).

 

The Company
is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration
with, any court or other federal, state, local or other governmental authority or other Person in connection with the execution,
delivery and performance by the Company of the Transaction Documents, other than: (i) the filings required pursuant to Section
4.4 of this Agreement, (ii) the notice and/or application(s) to each applicable Trading Market for the issuance and sale of the
Securities, and (iii) such filings as are required to be made under applicable state and federal securities laws (collectively,
the “Required Approvals”).

 

(f)               
Issuance of the Securities. 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 nonassessable, free and clear of all Liens imposed
by the Company other than restrictions on transfer provided for in the Transaction Documents.

 

(g)              
Capitalization. The capitalization of the Company is as set forth on Schedule 3.1(g), which Schedule 3.1(g)
shall also include the number of shares of Common Stock owned beneficially, and of record, by Affiliates of the Company as of the
date hereof. Except as set forth on Schedule 3.1(g), 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 (“SEC Reports”). 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 3.1(g) 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 and will not result in a right
of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under any of such securities. All
of the outstanding shares of capital stock of the Company are duly authorized, validly issued, fully paid and nonassessable, have
been issued in compliance with all federal and state securities laws, and none of such outstanding shares was issued in violation
of any preemptive rights or similar rights to subscribe for or purchase securities. No further approval or authorization of any
stockholder, the Board of Directors or others is required for the issuance and sale of the 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.

 

 

 

 

    	 	8	 

     

    

 

(h)              
Intentionally omitted.

 

(i)                
Intentionally omitted.

 

(j)                
Litigation. Except as disclosed in Schedule 3.1(j), there is no action, suit, inquiry, notice of violation,
proceeding or investigation pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary
or any of their respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority
(federal, state, county, local or foreign) (collectively, an “Action”) which (i) adversely affects or challenges
the legality, validity or enforceability of any of the Transaction Documents or the Securities or (ii) could, if there were an
unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any Subsidiary,
nor any director or officer thereof, is or has been the subject of any Action involving a claim of violation of or liability under
federal or state securities laws or a claim of breach of fiduciary duty. There has not been, and to the knowledge of the Company,
there is not pending or contemplated, any investigation by the Commission involving the Company or any current or former director
or officer of the Company. The Commission has not issued any stop order or other order suspending the effectiveness of any registration
statement filed by the Company or any Subsidiary under the Exchange Act or the Securities Act.

 

(k)              
Labor Relations. Except as disclosed in Schedule 3.1(k), no labor dispute exists or, to the knowledge of the
Company, is imminent with respect to any of the employees of the Company, which could reasonably be expected to result in a Material
Adverse Effect. None of the Company’s or its Subsidiaries’ employees is a member of a union that relates to such employee’s
relationship with the Company or such Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a collective
bargaining agreement, and the Company and its Subsidiaries believe that their relationships with their employees are good. To the
knowledge of the Company, no executive officer of the Company or any Subsidiary, is, or is now expected to be, in violation of
any material term of any employment contract, confidentiality, disclosure or proprietary information agreement or non-competition
agreement, or any other contract or agreement or any restrictive covenant in favor of any third party, and the continued employment
of each such executive officer does not subject the Company or any of its Subsidiaries to any liability with respect to any of
the foregoing matters. The Company and its Subsidiaries are in compliance with all U.S. federal, state, local and foreign laws
and regulations relating to employment and employment practices, terms and conditions of employment and wages and hours, except
where the failure to be in compliance could not, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect.

 

(l)                
Compliance. Neither the Company nor any Subsidiary: (i) is in default under or in violation of (and no event has
occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary
under), nor has the Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation
of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of
its properties is bound (whether or not such default or violation has been waived) except as disclosed in Schedule 3.1(l),
(ii) is in violation of any judgment, decree or order of any court, arbitrator or other governmental authority, except as set forth
on Schedule 3.1(l) or (iii) is or has been in violation of any statute, rule, ordinance or regulation of any governmental
authority, including without limitation all foreign, federal, state and local laws relating to taxes, other than tax payments related
to payroll that are late, environmental protection, occupational health and safety, product quality and safety and employment and
labor matters, except in each case as could not have or reasonably be expected to result in a Material Adverse Effect.

 

 

 

 

    	 	9	 

     

    

 

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

 

(n)              
Title to Assets. Except as disclosed in Schedule 3.1(n), the Company and the Subsidiaries have good and marketable
title in fee simple to all real property owned by them and good and marketable title in all personal property owned by them that
is material to the business of the Company and the Subsidiaries, in each case free and clear of all Liens, except for (i) Liens
as do not materially affect the value of such property and do not materially interfere with the use made and proposed to be made
of such property by the Company and the Subsidiaries and (ii) Liens for the payment of federal, state or other taxes, for which
appropriate reserves have been made therefor in accordance with GAAP and, the payment of which is neither delinquent nor subject
to penalties. Any real property and facilities held under lease by the Company and the Subsidiaries are held by them under valid,
subsisting and enforceable leases with which the Company and the Subsidiaries are in compliance.

 

(o)              
Intellectual Property. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications,
trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual
property rights and similar rights as described in the SEC Reports as necessary or required for use in connection with their respective
businesses and which the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual Property
Rights”). Except as disclosed on Schedule 3.1(o), none of, and neither the Company nor any Subsidiary has received
a notice (written or otherwise) that any of, the Intellectual Property Rights has expired, terminated or been abandoned, or is
expected to expire or terminate or be abandoned, within two (2) years from the date of this Agreement. Neither the Company nor
any Subsidiary has received, since the date of the latest audited financial statements included within the SEC Reports, a written
notice of a claim or otherwise has any knowledge that the Intellectual Property Rights violate or infringe upon the rights of any
Person, except as could not have or reasonably be expected to not have a Material Adverse Effect. To the knowledge of the Company,
all such Intellectual Property Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual
Property Rights. The Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality
and value of all of their intellectual properties, except where failure to do so could not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect.

 

(p)              
Insurance. Except as set forth on Schedule 3.1(p), the Company and the Subsidiaries are insured by insurers
of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses
in which the Company and the Subsidiaries are engaged, including, but not limited to, directors and officers insurance coverage
at least equal to the aggregate Subscription Amount. Neither the Company nor any Subsidiary has any reason to believe that it will
not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar
insurers as may be necessary to continue its business without a significant increase in cost.

 

(q)              
Transactions With Affiliates and Employees. Except as set forth in the SEC Reports, none of the officers or directors
of the Company or any Subsidiary and, to the knowledge of the Company, none of the employees of the Company or any Subsidiary is
presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors),
including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental
of real or personal property to or from, providing for the borrowing of money from or lending of money to or otherwise requiring
payments to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer,
director, or any such employee has a substantial interest or is an officer, director, trustee, stockholder, member or partner,
in each case in excess of $120,000 other than for: (i) payment of salary or consulting fees for services rendered, (ii) reimbursement
for expenses incurred on behalf of the Company and (iii) other employee benefits, including stock option agreements under any stock
option plan of the Company. Except as set forth on Schedule 3.1(q), all employee salaries and contractor fees have been
paid to date and no such amounts are outstanding or past due.

 

 

 

 

    	 	10	 

     

    

 

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

 

(s)               
Certain Fees. The Company may but is not obligated to engage a suitable Investment Banker in conjunction with the
transaction contemplated herein. No brokerage or finder’s fees or commissions are or will be payable by the Company or any
Subsidiary to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with
respect to the transactions contemplated by the Transaction Documents. The Purchaser shall have no obligation with respect to any
fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section that may
be due in connection with the transactions contemplated by the Transaction Documents.

 

(t)                
Private Placement. Assuming the accuracy of the Purchaser’s representations and warranties set forth in Section
3.2, no registration under the Securities Act is required for the offer and sale of the Securities by the Company to the Purchaser
as contemplated hereby. The issuance and sale of the Securities hereunder does not contravene the rules and regulations of the
Trading Market.

 

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

 

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

 

(w)            
Listing and Maintenance Requirements. The Company has not in the twelve (12) months preceding the date hereof, received
notice from any Trading Market on which the Common Stock is or has been listed or quoted to the effect that the Company is not
in compliance with the listing or maintenance requirements of such Trading Market. The Company is, and has no reason to believe
that it will not in the foreseeable future continue to be, in compliance with all such listing and maintenance requirements.

 

 

 

 

    	 	11	 

     

    

 

(x)              
[RESERVED]

 

(y)              
Disclosure. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction
Documents, the Company confirms that neither it nor any other Person acting on its behalf has provided the Purchaser 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 Purchaser will rely on the foregoing representation in effecting transactions in securities of
the Company. All of the disclosure furnished by or on behalf of the Company to the Purchaser regarding the Company and its Subsidiaries,
their respective businesses and the transactions contemplated hereby, including the Disclosure Schedules to this Agreement, is
true and correct and does not contain any untrue statement of a material fact or omit to state any material fact necessary in order
to make the statements made therein, in light of the circumstances under which they were made, not misleading. The press releases
disseminated by the Company during the twelve months preceding the date of this Agreement taken as a whole do not contain any untrue
statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made and when made, not misleading. The Company acknowledges and agrees
that the Purchaser does not make and has not made any representations or warranties with respect to the transactions contemplated
hereby other than those specifically set forth in Section 3.2 hereof.

 

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

 

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

 

(bb)           
No General Solicitation. Neither the Company nor any person acting on behalf of the Company has offered or sold any
of the Securities by any form of general solicitation or general advertising. The Company has offered the Securities for sale only
to the Purchaser.

 

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

 

 

 

 

    	 	12	 

     

    

 

(dd)          
Accountants. The Company’s accounting firm is set forth on Schedule 3.1(dd) of the Disclosure Schedules.
To the knowledge and belief of the Company, such accounting firm: (i) is a registered public accounting firm as required by the
Exchange Act and (ii) shall express its opinion with respect to the financial statements to be included in the Company’s
publicly-filed financial reports.

 

(ee)           
Acknowledgment Regarding Purchaser’s Purchase of Securities. The Company acknowledges and agrees that the Purchaser
is acting solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions
contemplated thereby. The Company further acknowledges that the Purchaser is not acting as a financial advisor or fiduciary of
the Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby and
any advice given by the Purchaser or any of its representatives or agents in connection with the Transaction Documents and the
transactions contemplated thereby is merely incidental to the Purchaser’s purchase of the Securities. The Company further
represents to the Purchaser that the Company’s decision to enter into this Agreement and the other Transaction Documents
has been based solely on the independent evaluation of the transactions contemplated hereby by the Company and its representatives.

 

(ff)             
Acknowledgment Regarding Purchaser’s Trading Activity. Anything in this Agreement or elsewhere herein to the
contrary notwithstanding, it is understood and acknowledged by the Company that: (i) the Purchaser has not been asked by the Company
to agree, nor has the Purchaser agreed, to desist from purchasing or selling, securities of the Company, or “derivative”
securities based on securities issued by the Company or to hold the Securities for any specified term, (ii) past or future open
market or other transactions by the Purchaser, specifically including, without limitation, “derivative” transactions,
before or after a closing of this or future private placement transactions, may negatively impact the market price of the Company’s
publicly-traded securities (iii) Omit and (iv) the Purchaser shall not be deemed to have any affiliation with or control over
any arm’s length counter-party in any “derivative” transaction. The Company further understands and acknowledges
that (y) the Purchaser may engage in hedging activities at various times during the period that the Securities are outstanding,
and (z) such hedging activities (if any) could reduce the value of the existing stockholders’ equity interests in the Company
at and after the time that the hedging activities are being conducted.  The Company acknowledges that such aforementioned
hedging activities do not constitute a breach of any of the Transaction Documents.

 

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

 

(hh)          
Reserved.

 

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

 

 

 

 

    	 	13	 

     

    

 

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

 

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

 

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

 

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

 

3.2       Representations
and Warranties of the Purchaser. The Purchaser hereby represents and warrants as of the date hereof and as of the Closing Dates
to the Company as follows (unless as of a specific date therein):

 

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

 

(b)       Own
Account. The Purchaser understands that the Securities are “restricted securities” and have not been registered
under the Securities Act or any applicable state securities law and is acquiring the Securities as principal for its own account
and not with a view to or for distributing or reselling such Securities or any part thereof in violation of the Securities Act
or any applicable state securities law, has no present intention of distributing any of such Securities in violation of the Securities
Act or any applicable state securities law and has no direct or indirect arrangement or understandings with any other persons to
distribute or regarding the distribution of such Securities in violation of the Securities Act or any applicable state securities
law (this representation and warranty not limiting the Purchaser’s right to sell the Securities pursuant to the Registration
Statement or otherwise in compliance with applicable federal and state securities laws).

 

 

 

 

    	 	14	 

     

    

 

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

 

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

 

(e)       General Solicitation. The Purchaser is not purchasing the Securities as a result of any advertisement, article, notice
or other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over television
or radio or presented at any seminar or any other general solicitation or general advertisement.

 

The Company acknowledges
and agrees that the representations contained in Section 3.2 shall not modify, amend or affect the Purchaser’s right to rely
on the Company’s representations and warranties contained in this Agreement or any representations and warranties contained
in any other Transaction Document or any other document or instrument executed and/or delivered in connection with this Agreement
or the consummation of the transaction contemplated hereby.

 

ARTICLE IV.

OTHER AGREEMENTS OF THE PARTIES

 

4.1       Transfer
Restrictions.

 

(a)              
The Securities may only be disposed of in compliance with state and federal securities laws. As a condition of transfer,
any such transferee shall agree in writing to be bound by the terms of this Agreement and shall have the rights and obligations
of the Purchaser under this Agreement.

 

(b)              
The Purchaser agrees to the imprinting, so long as is required by this Section 4.1, of a legend on any of the Securities
in the following form:

 

THIS SECURITY HAS NOT BEEN REGISTERED
WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION
NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS
EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE
TO THE COMPANY. THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER
LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT
OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

 

 

 

    	 	15	 

     

    

 

The Company
acknowledges and agrees that the Purchaser may from time to time pledge pursuant to a bona fide margin agreement with a registered
broker-dealer or grant a security interest in some or all of the Securities to a financial institution that is an “accredited
investor” as defined in Rule 501(a) under the Securities Act and who agrees to be bound by the provisions of this Agreement
and, if required under the terms of such arrangement, the Purchaser may transfer pledged or secured Securities to the pledgees
or secured parties. Such a pledge or transfer would not be subject to approval of the Company and no legal opinion of legal counsel
of the pledgee, secured party or pledgor shall be required in connection therewith. Further, no notice shall be required of such
pledge. At the appropriate Purchaser’s expense, the Company will execute and deliver such reasonable documentation as a pledgee
or secured party of Securities may reasonably request in connection with a pledge or transfer of the Securities, including, if
the Securities are registered under a registration statement, the preparation and filing of any required prospectus supplement
under Rule 424(b)(3) under the Securities Act or other applicable provision of the Securities Act to appropriately amend the list
of selling stockholders thereunder.

 

4.2       Acknowledgment
of Dilution of Voting Power. The Company acknowledges that the issuance of the Securities will result in dilution of the voting
power of the outstanding shares of Common Stock, which dilution will be substantial.

 

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

 

4.4       Securities
Laws Disclosure; Publicity. The Company and the Purchaser shall consult with each other in issuing any other press releases
with respect to the transactions contemplated hereby including for the initial press release pursuant to Section 4.8, and neither
the Company nor the Purchaser shall issue any such press release nor otherwise make any such public statement without the prior
consent of the Company, with respect to any press release of the Purchaser, or without the prior consent of the Purchaser, with
respect to any press release of the Company, which consent shall not unreasonably be withheld or delayed, except if such disclosure
is required by law, in which case the disclosing party shall promptly provide the other party with prior notice of such public
statement or communication. Notwithstanding the foregoing, the Company shall not publicly disclose the name of the Purchaser, or
include the name of the Purchaser in any filing with the Commission or any regulatory agency or Trading Market, without the prior
written consent of the Purchaser, except: (a) as required by federal securities law in connection with the filing of final Transaction
Documents with the Commission and (b) to the extent such disclosure is required by law or Trading Market regulations, in which
case the Company shall provide the Purchaser with prior notice of such disclosure permitted under this clause (b).

 

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

 

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

 

 

 

 

    	 	16	 

     

    

 

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

 

4.8       Certain
Transactions and Confidentiality. The Purchaser, covenants that neither it, nor any Affiliate acting on its behalf or pursuant
to any understanding with it will (i) execute any Short Sales, of any of the Company’s securities during the period commencing
with the execution of this Agreement and ending at such time that the transactions contemplated by this Agreement are first publicly
announced pursuant to the initial press release as described in Section 4.4 or (ii) from the date hereof until the earlier of the
12 month anniversary of the date hereof and the date that the Preferred Stock is no longer outstanding, execute any Short Sales
of the Common Stock (a “Prohibited Short Sale”). The Purchaser covenants that until such time as the transactions
contemplated by this Agreement are publicly disclosed by the Company pursuant to the initial press release as described in Section
4.4, the Purchaser will maintain the confidentiality of the existence and terms of this transaction and the information included
in the Transaction Documents and the Disclosure Schedules. Notwithstanding the foregoing, and notwithstanding anything contained
in this Agreement to the contrary, the Company expressly acknowledges and agrees that (i) the Purchaser does not make any representation,
warranty or covenant hereby that it will not engage in effecting transactions in any securities of the Company after the time that
the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release as described
in Section 4.4, (ii) except for a Prohibited Short Sale, the Purchaser shall not be restricted or prohibited from effecting any
transactions in any securities of the Company in accordance with applicable securities laws from and after the time that the transactions
contemplated by this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.4 and
(iii) the Purchaser shall have no duty of confidentiality to the Company or its Subsidiaries after the issuance of the initial
press release as described in Section 4.4. 

 

 

 

 

    	 	17	 

     

    

 

4.9        Form D; Blue Sky Filings. The Company agrees to timely file a Form D with respect to the Securities as required under
Regulation D and to provide a copy thereof, promptly upon request of the Purchaser. The Company shall take such action as the Company
shall reasonably determine is necessary in order to obtain an exemption for, or to qualify the Securities for, sale to the Purchaser
under applicable securities or “Blue Sky” laws of the states of the United States, and shall provide evidence of such
actions promptly upon request of the Purchaser.

 

4.10       Redemption.

 

The Company shall
have the right to redeem the Securities, in accordance with the following schedule:

 

		i.	If all of the Securities are redeemed within ninety (90) calendar days from the issuance date thereof,
the Company shall have the right to redeem the Securities upon three (3) business days’ of written notice at a price equal
to one hundred and fifteen percent (115%) of the Stated Value together with any accrued but unpaid dividends;

 

		ii.	If all of the Securities are redeemed after ninety (90) calendar days and within one hundred twenty
(120) calendar days from the issuance date thereof, the Company shall have the right to redeem the Securities upon three (3) business
days of written notice at a price equal to one hundred and twenty percent (120%) of the Stated Value together with any accrued
but unpaid dividends; and

 

		iii.	If all of the Securities are redeemed after one hundred and twenty (120) calendar days and within
one hundred eighty (180) calendar days from the issuance date thereof, the Company shall have the right to redeem the Securities
upon three (3) business days of written notice at a price equal to one hundred and twenty five percent (125%) of the Stated Value
together with any accrued but unpaid dividends.

 

		iv.	The Company shall redeem each Purchased Share of preferred stock on the date that is One (1) Calendar
year from the issuance of the relevant Purchased Share at an amount equaling the sum of the Stated Value and all accrued but unpaid
dividends and all other amounts due pursuant to the Certificate of Designation.

 

4.11             
Dividends
The Company shall pay a dividend of twelve percent (12%) per annum on any purchased Preferred Shares, for as long as the relevant
Preferred Shares have not been redeemed or converted. Dividends shall be paid quarterly, and at the Company’s discretion,
in cash or Preferred Stock.

 

4.12             
Registration
RightsThe Purchaser shall have the right, but not the obligation, to have the Company include on the next or any subsequent
registration statement, all shares issuable upon conversion of any Purchased Preferred Stock.

 

4.13             
 Event
of Default Following any Event of Default, all outstanding Purchased Shares shall come immediately due for redemption and the
redemption amount shall accrue interest at the lesser of (a) 18% per annum or (b) the maximum legal rate. Redemption following
an Event of Default shall occur at an amount equaling: one hundred and thirty five percent (135%), multiplied by the sum of the
Stated Value, all accrued but unpaid dividends and all other amounts due pursuant to the Certificate of Designation for all Purchased
Shares.

 

 

 

 

    	 	18	 

     

    

 

ARTICLE V.

MISCELLANEOUS

 

5.1       Termination. 
This Agreement may be terminated by the Purchaser, as to the Purchaser’s obligations hereunder, if the Closing has not been
consummated within five (5) Business Days of the date hereof; provided, however, that such termination will not affect
the right of any party to sue for any breach by any other party (or parties).

 

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

 

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

 

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

 

5.5       Amendments;
Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed,
in the case of an amendment, by the Company and the holders of at least 75% in interest of the Securities then outstanding or,
in the case of a waiver, by the party against whom enforcement of any such waived provision is sought. No waiver of any default
with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future
or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay
or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right.

 

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

 

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

 

 

 

 

    	 	19	 

     

    

 

5.8       No
Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors
and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise
set forth in Section 4.7 and this Section 5.8.

 

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

 

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

 

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

 

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

 

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

 

 

 

 

    	 	20	 

     

    

 

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

 

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

 

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

 

5.17       Liquidated
Damages. The Company’s obligations to pay any partial liquidated damages or other amounts owing under the Transaction
Documents is a continuing obligation of the Company and shall not terminate until all unpaid partial liquidated damages and other
amounts have been paid notwithstanding the fact that the instrument or security pursuant to which such partial liquidated damages
or other amounts are due and payable shall have been canceled.

 

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

 

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

 

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

 

(Signature Pages Follow)

 

 

 

    	 	21	 

     

    

 

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

 

	IIOT-OXYS, INC.	
        Address for Notice:

         

        705 Cambridge St.

        Cambridge, MA 02141

	
        By: /s/ Clifford L. Emmons______________________

        Name: Clifford L. Emmons

        Title: Chief Executive Officer

         

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

        Attn: Business Legal Advisors, LLC

        Email: brian@businesslegaladvisor.com

         

         
	 

 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOR PURCHASER FOLLOWS]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	22	 

     

    

 

[PURCHASER SIGNATURE PAGE TO SECURITIES
PURCHASE AGREEMENT]

 

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

 

Name of Purchaser:

 

Signature of Authorized Signatory of Purchaser: /s/
Mark Grober____________________

 

Name of Authorized Signatory: Mark Grober

 

Title of Authorized Signatory: Member

 

Address for Notice to Purchaser:

 

420 Jericho Turnpike, Suite 102

Jericho, NY 11753

 

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

 

*place Preferred in Book Entry

 

Facsimile Number: (212) 574-3326

 

Subscription Amount: $ 45,000.00

 

Subscription Date: 11/19/2020

 

Shares of Preferred Stock: 45 + 25 (Commitment Shares)

 

 

 

 

 

 

 

 

 

 

 

    	 	23	 

     

    

 

Exhibit A

 

Certificate of Designation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	24	 

     

    

 

[list of Disclosure Schedules: content to be provided by Company]:

 

(please read each section for specific content, topic below
listed for convenience only)

 

Schedule 3.1(a) - subsidiaries

 

Schedule 3.1(g) - capitalization

 

Schedule 3.1(j) - litigation

 

Schedule 3.1(k) - labor disputes

 

Schedule 3.1(l) - compliance

 

Schedule 3.1(n) - title to assets

 

Schedule 3.1(o) -intellectual property 

 

Schedule 3.1(p) - insurance

 

Schedule 3.1(q) -transactions with affiliates and employees

 

Schedule 3.1(aa) - tax status

 

Schedule 3.1(dd) - accountants

 

 

 

 

 

 

 

 

 

 

 

 

 

  

    	 	25	 

     

    

 

FORM OF CLOSING NOTICE

 

TO:

DATE:_________________

 

We refer to the Securities
Purchase Agreement, dated November 16, 2020 (the “Agreement”), entered into by and between IIOT-OXYS, Inc 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 _____ shares of Series __ Preferred Stock; and

 

2)       The
purchase price per share, pursuant to the terms of the Agreement, is $1,000; and

 

3)       Certify
that, as of the date hereof, the conditions set forth in Section 2.3 of the Agreement, as related to the obligations of
the Company, are satisfied.

 

Closing will occur in accordance with the
terms and conditions of Section 2 of the Agreement.

 

IIOT-OXYS, INC.

 

By:                                                              

Name:        

Title:        

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	26	 

     

    

 

Schedule 3.1(a)

 

As of the date hereof, IIOT-OXYS, Inc.,
a Nevada corporation, has the following wholly owned subsidiaries:

 

	 	1.	OXYS Corporation, a Nevada corporation.

 

	 	2.	HereLab, Inc., a Delaware corporation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	27	 

     

    

 

Schedule 3.1(g)

 

IIOT-OXYS, Inc., a Nevada corporation,
has the following capitalization:

 

1.      
143,825630 shares of Common Stock, par value $0.001, issued and outstanding.

 

2.      
25,845 shares of Series A Supervoting Preferred Stock, par value $0.001, issued and outstanding to the following:

 

(a)               
12,000 shares of Series A Supervoting Preferred Stock owned by Vidhyadhar Mitta, the Company’s director. In addition,
Mr. Mitta owns 1,736,843 shares of Common Stock, warrants to purchase 1,562,500 shares of the Company’s Common Stock exercisable
at $0.00084 per share, and notes in the aggregate principal amount of $125,000 with accrued and unpaid interest of $15,974 (as
of November 9, 2020) convertible into shares of the Company’s Common Stock at $0.00084 per share.

 

(b)               
7,800 shares of Series A Supervoting Preferred Stock owned by Clifford L. Emmons, the Company’s CEO and director.
In addition, Mr. Emmons owns 780,000 shares of Common Stock (which have vested but have yet to be issued). Mr. Emmons also owns
warrants to purchase 36,667 shares of the Company’s Common Stock exercisable at $0.00084 per share which were issued to Cambridge
MedSpace LLC, an entity which Mr. Emmons controls. Cambridge MedSpace also was issued a convertible note in the principal amount
of $55,000 with accrued and unpaid interest of $4,874 (as of October 30, 2020) convertible at $0.0008 per share. As of September
30, 2020, Mr. Emmons is owed $129,163 in accrued and unpaid consulting fees which are convertible, at Mr. Emmons’ option,
into at 90% of the “Market Price” with “Market Price” defined as the average of the trading prices on the
OTC Markets of the Company’s Common Stock during the 30-day period ending on the latest complete trading day prior to conversion.

 

(c)               
6,045 shares of Series A Supervoting Preferred Stock owned by Karen McNemar, the Company’s COO. Ms. McNemar owns 604,900
shares of Common Stock (which have vested but have yet to be issued). As of September 30, 2020, Ms. McNemar is owed $145,352 in
accrued and unpaid consulting fees which are convertible, at Ms. McNemar’s option, into at 90% of the “Market Price”
with “Market Price” defined as the average of the trading prices on the OTC Markets of the Company’s Common Stock
during the 30-day period ending on the latest complete trading day prior to conversion.

 

(d)               
Antony Coufal, the Company’s CTO owns 900,000 shares of Common Stock (which have vested but have yet to be issued).
As of September 30, 2020, Mr. Coufal is owed $120,360 in accrued and unpaid consulting fees which are convertible, at Mr. Coufal’s
option, into at 90% of the “Market Price” with “Market Price” defined as the average of the trading prices
on the OTC Markets of the Company’s Common Stock during the 30-day period ending on the latest complete trading day prior
to conversion.

 

 

 

 

 

 

 

    	 	28	 

     

    

 

Since the filing of the Quarterly Report
on Form 10-Q on September 14, 2020, the Company has issued the following securities:

 

		1.	On
October 1, 2020, a note holder converted $10,000 worth of principal at $0.01 per share into 1,000,000 shares of the Company’s
Common Stock.

 

		2.	On
November 9, 2020, the Company’s board of directors approved the issuance of 1,000,000 shares of Common Stock to Vidhyadhar
Mitta for director services.

 

		3.	On
November 9, 2020, the Company issued 12,000 shares of Series A Supervoting Preferred Stock (as indicated above) in exchange for
1,000,000 unissued shares of Common Stock and $168 in accrued and unpaid interest on a note issued to Vidhyadhar Mitta.

 

		4.	On
November 9, 2020, the Company issued 7,800 shares of Series A Supervoting Preferred Stock (as indicated above) in exchange for
780,000 unissued shares of Common Stock to Clifford L. Emmons.

 

		5.	On
November 9, 2020, the Company issued 6,045 shares of Series A Supervoting Preferred Stock (as indicated above) in exchange for
604,500 unissued shares of Common Stock to Karen McNemar.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	29	 

     

    

 

Schedule 3.1(l)

 

IIOT,OXYS, Inc. is in default of the following:

 

		1.	Credit
Card with Citizens Bank;

		2.	Securities
Purchase Agreement dated January 22, 2018 between the Company and Sergey Gogin;

		3.	$500,000
Senior Secured Convertible Note, as amended, issued January 22, 2018 to Sergey Gogin;

		4.	Security
and Pledge Agreement dated January 22, 2018 between the Company and Sergey Gogin;

		5.	Securities
Purchase Agreement dated March 6, 2019 between the Company and Catalytic Capital LLC;

		6.	$50,000
Senior Secured Convertible Note, as amended, issued March 6, 2019 to Catalytic Capital LLC;

		7.	Security
and Pledge Agreement dated March 6, 2019 between the Company and Catalytic Capital LLC;

		8.	Securities
Purchase Agreement dated March 6, 2019 between the Company and YVSGRAMORAH LLC;

		9.	$50,000
Senior Secured Convertible Note, as amended, issued March 6, 2019 to YVSGRAMORAH LLC;

		10.	Security
and Pledge Agreement dated March 6, 2019 between the Company and YVSGRAMORAH LLC;

		11.	Securities
Purchase Agreement dated August 2, 2019 between the Company and Vidhyadhar Mitta;

		12.	$125,000
aggregate of 12% Secured Convertible Promissory Notes issued August 2, 2019 to Vidhyadhar Mitta;

		13.	Security
Agreement dated August 2, 2019 between the Company and Vidhyadhar Mitta; and

		14.	Non-Exclusive
Patent License Agreement dated February 5, 2018 between the Company and MIT.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	30	 

     

    

 

Schedule 3.1(p)

 

As of the date hereof, IIOT-OXYS, Inc.
and the Subsidiaries are not insured by insurers of recognized financial responsibility against such losses and risks and in such
amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged, including, but not
limited to, directors and officers insurance coverage at least equal to the aggregate Subscription Amount; however, the Company
and the Subsidiaries shall obtain such coverage within one hundred (100) days of the date hereof.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	31	 

     

    

 

Schedule 3.1(dd)

 

IIOT-OXYS, Inc. has engaged Haynie &
Company as its independent public accounting firm.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	32

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