Document:

Exhibit 10.7

  

  

    Execution Version

  

   

  

  
    THE SECURITIES REPRESENTED HEREBY AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED
      (THE “SECURITIES ACT”), OR APPLICABLE STATE SECURITIES LAWS AND MAY BE OFFERED, SOLD, ASSIGNED, PLEDGED, HYPOTHECATED, TRANSFERRED OR OTHERWISE DISPOSED OF (EACH, A “TRANSFER”) ONLY IF SUCH SECURITIES ARE REGISTERED UNDER THE SECURITIES ACT AND ANY
      APPLICABLE STATE SECURITIES LAWS OR IF SUCH TRANSFER IS MADE PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT AND SUCH STATE SECURITIES LAWS AFTER PROVIDING AN OPINION OF COUNSEL TO SUCH EFFECT.

     

    COMMON STOCK PURCHASE WARRANT

     

    PAR TECHNOLOGY CORPORATION

     

    	
            Warrant Shares:  500,000

          	
            Initial Issuance Date:  April 8, 2021

          

     

    

    THIS COMMON STOCK PURCHASE WARRANT (this “Warrant”)

      certifies that, for value received, PAR Act III, LLC or its assigns (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, on or prior to the Close of Business on April 8, 2026 (the “Termination Date”) but not thereafter, to subscribe for and purchase from PAR Technology Corporation, a Delaware corporation (the “Company”), up to 500,000 duly authorized, validly issued, fully paid and nonassessable shares of Common Stock (as subject to adjustment hereunder, the “Warrant Shares”).  The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price (as defined in Section
      2(b)).

     

    1.           Definitions.  Capitalized terms used and not otherwise defined in this Warrant that are defined in the Purchase Agreement (as defined below) shall have the respective meanings ascribed to such terms
        in the Purchase Agreement.  As used in this Warrant, the following terms shall have the respective meanings set forth in this Section 1:

     

    (a)          “2021 Stockholder Meeting” means the Company’s 2021 annual meeting of stockholders (including at any postponement, recess or adjournment thereof).

     

    (b)         “Aggregate Exercise Price” means an amount equal to the product of (i) the number of Warrant Shares in respect of which this Warrant is then
        being exercised pursuant to Section 2, multiplied by (ii) the Exercise Price in effect as of the Exercise Date in accordance with the terms of this Warrant; provided that for the purposes of Section 3(a), “Aggregate Exercise Price” shall mean an amount equal to the product of (x) the total number of Warrant Shares initially issuable pursuant to this Warrant (as adjusted
        pursuant to Section 3(a)) multiplied by (y) the Exercise Price in effect as of the date of the applicable adjustment pursuant to Section 3(a).

     

    (c)          “Business Day” means a day that is a Monday, Tuesday, Wednesday, Thursday or Friday and is not a day on which banking institutions in New York,
        New York generally are authorized or obligated by law, regulation or executive order to close.

     

    
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    (d)          “Cashless Exercise Date” has the meaning set forth in Section 2(c).

     

    (e)          “Change of Control” means, at any time, the occurrence of any of the following events or circumstances: (i) any “person” or “group” (within the
        meaning of Section 13(d) or 14(d) of the 1934 Act) shall (A) become the “beneficial owner” (within the meaning of Section 13(d) of the 1934 Act), directly or indirectly, of securities of the Company representing 50% or more of the total voting
        power represented by the Company’s then outstanding voting securities or (B) otherwise acquire, directly or indirectly, the power to direct or cause the direction of the management or policies of the Company, whether through the ability to exercise
        voting power, by contract or otherwise, (ii) persons who (A) were directors of the Company on the date hereof (the “Incumbent Directors”) or (B) became a director on or
        subsequent to the date hereof whose election or nomination for election was approved by a majority of the Incumbent Directors then on the Board (either by a specific vote or by approval of the proxy statement of the relevant party in which such
        person is named as a nominee for director, without written objection to such nomination), which such person shall thereinafter be an Incumbent Director, shall cease to occupy a majority of the seats (excluding vacant seats) on the Board, (iii) the
        consummation of a merger or consolidation of the Company with or into any other Person, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent at
        least 50% of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation or (iv) any direct or indirect sale, transfer or other
        disposition, in one transaction or a series of related transactions, of all or substantially all of the assets of the Company and its Subsidiaries, taken as a whole (it being agreed that the sale, transfer or other disposition by any Person of the
        Equity Interests of any Subsidiary constitutes an indirect sale, transfer or disposition of the assets of such Subsidiary). A transaction shall not constitute a Change of Control if its sole purpose is to change the state of the Company’s
        incorporation or to create a holding company that will be owned in the same proportions by the persons who held the Company’s securities immediately before such transaction.

     

    (f)           “Close of Business” means 5:00 p.m., eastern time, on any Business Day.

     

    (g)          “Closing Price” means, for any date, the price determined by the first of the following clauses that applies: (i) if the Common Stock is then
        listed or quoted on a Trading Market, the last reported closing price of the Common Stock for such date on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P., (ii) if the Common Stock is not then
        listed on a Trading Market or quoted for trading on the OTC Bulletin Board and if prices for the Common Stock are then reported in the “Pink Sheets” published by OTC Markets Group Inc. (or a similar organization or agency succeeding to its
        functions of reporting prices), the most recent bid price per share of the Common Stock so reported or (iii) in all other cases, the fair market value of a share of Common Stock as determined by an independent nationally recognized investment
        banking, accounting or valuation firm selected in good faith by the Company and reasonably acceptable to the Holder, the fees and expenses of which shall be paid by the Company.

     

    
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    (h)          “Commission” means the United States Securities and Exchange Commission.

     

    (i)           “Common Stock” means the common stock, par value $0.02 per share, of the Company.

     

    (j)           “Company” has the meaning set forth in the Preamble.

     

    (k)          “Conversion Cap” has the meaning set forth in the definition of Excess Warrant Shares.

     

    (l)           “DWAC” has the meaning set forth in Section 2(d).

     

    (m)         “Equity Interests” means any and all shares, interests, participations or other equivalents (however designated) of equity interests of a
        corporation, any and all equivalent ownership interests in a Person other than a corporation (including, without limitation, partnership interests, membership interests and similar ownership interests), any and all warrants, rights or options to
        purchase or other arrangements or rights to acquire any of the foregoing, and all other ownership or profit interests in a Person (including partnership, member or trusts interests in such Person), in each case whether voting or non-voting and
        whether or not outstanding on any date of determination.

     

    (n)         “Excess Warrant Shares” means in the case that the number of Warrant Shares and the shares of Common Stock issuable by the Company pursuant to
        the Prism Acquisition Transaction, the Purchase Agreement and the TRowe Purchase Agreement, in the aggregate, is more than 19.9% of the number of shares of Common Stock outstanding immediately prior to the Initial Issuance Date (the “Conversion Cap”), the Warrant Shares that that are in excess of the Conversion Cap (rounded up to the nearest whole share).

     

    (o)          “Exercise Date” has the meaning set forth in Section 2(a).

     

    (p)          “Excluded Issuance” means any issuance or sale by the Company after the Initial Issuance Date of: (i) any securities issued by the Company as full or partial
        consideration in connection with a bona fide merger, acquisition, consolidation, business combination, purchase of the capital stock or assets of, or
        transaction or series of transactions with, an unaffiliated third-party that is the result of arm’s length negotiations, including, for the avoidance of doubt, any shares of Common Stock issued by the Company as consideration pursuant to the Prism
        Merger Agreement; (ii) any shares of Common Stock or options to purchase shares of Common Stock, or other equity-based awards (including restricted stock units), issued or granted to existing or former employees (or prospective employees who have
        accepted an offer of employment), directors or consultants (in each case, as defined in the Company’s equity incentive plans) of the Company or any of its Subsidiaries pursuant to Company equity incentive plans, including the Company’s equity
        incentive plans existing on the date hereof and any future equity incentive plan, as such plans may be amended or supplemented, in each case, that have been approved by the full Board or a majority of the independent members of the Board and
        requisite vote of the Company’s stockholders, as applicable (in each case, including with respect to any amendment or supplement thereof) or that exist as of the Initial Issuance Date, including, for the avoidance of doubt, any shares of Common
        Stock issuable upon exercise of any such option or settlement or vesting of any equity-based award issued under such plans; (iii) any shares of capital stock issuable upon exercise of any option of Prism assumed by the Company pursuant to the Prism
        Merger Agreement; (iv) any securities issued pursuant to any employee stock purchase plan approved by the Board and the Company’s stockholders, as applicable; (v) securities issued by the Company upon the exercise, exchange or conversion of any
        securities that are exercisable or exchangeable for, or convertible into, shares of Common Stock, including the Warrant Shares and shares of Common Stock issuable upon conversion of the Convertible Notes, and are outstanding prior to the Initial
        Issuance Date, provided that such exercise, exchange or conversion is effected pursuant to the terms of such securities as in effect on the Initial Issuance Date, (vi) securities issued pursuant to a bona fide public offering at a price that, (A) in the case of Common Stock, is, or, (B) in the case of any other security, implies a price per share of the Common Stock of, no less than 95% of the
        VWAP immediately prior to such issuance or sale or (vii) any New Securities (as defined in the Investor Rights Agreement) with respect to which the Investors (as defined in the Investor Rights Agreement) had exercised preemptive rights under the
        Investors Rights Agreement.

     

    
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    (q)          “Exercise Price” has the meaning set forth in Section 2(b).

     

    (r)           “Holder” has the meaning set forth in the Preamble.

     

    (s)          “Initial Issuance Date” means April 8, 2021.

     

    (t)           “Investor Rights Agreement” means the Investor Rights Agreement dated as of April 8, 2021, by and among the Company, the Holder and any
        transferees of the Securities who agree to become subject to the Investor Rights Agreement.

     

    (u)          “Moving Party” has the meaning set forth in Section 5(g).

     

    (v)          “Notice of Exercise” has the meaning set forth in Section 2(a).

     

    (w)        “Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated
        organization, any other entity and any governmental entity or any department or agency thereof.

     

    (x)          “Purchase Agreement” means the Securities Purchase Agreement, dated as of April 8, 2021, by and between the Company and the Holder.

     

    (y)         “Registration Rights Agreement” means the Registration Rights Agreement, dated as of April 8, 2021, by and among the Company, and the Investors
        (as defined in the Registration Rights Agreement).

     

      

    (z)          “Required Stockholder Approval” means any approval by the stockholders of the Company necessary for the issuance of the Excess Warrant Shares
        issuable upon the exercise of the Holder’s rights under this Warrant.

     

    (aa)         “Termination Date” has the meaning set forth in the Preamble.

     

    (bb)         “Trading Day” means a day on which the Common Stock is traded on a Trading Market or, if the Common Stock is not traded on a Trading Market, then on the principal securities exchange or securities market on which the Common Stock is then traded.

     

    
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    (cc)         “Trading Market” means any market or exchange of the New York Stock Exchange or the Nasdaq Stock Market LLC.

     

    (dd)        “Transfer Agent” has the meaning set forth in Section 2(d).

     

    (ee)       “TRowe Purchase Agreement” means the Securities Purchase Agreement, dated as of the date hereof, among the Company and those certain funds and
        accounts advised by T. Rowe Price Associates, Inc., acting as investment adviser.

     

    (ff)        “VWAP” means, for any date, the price determined by the first of the following clauses that applies: (i) if the Common Stock is then listed or
        quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a
        Trading Day from 9:30 a.m. (New York City time) to 4:00 p.m. (New York City time)), (ii) if the Common Stock is not then listed on a Trading Market or quoted for trading on the OTC Bulletin Board and if prices for the Common Stock are then reported
        in the “Pink Sheets” published by OTC Markets Group Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported or (iii) in all other cases, the
        fair market value of a share of Common Stock as determined by an independent nationally recognized investment banking, accounting or valuation firm selected in good faith by the Company and reasonably acceptable to the Holder, the fees and expenses
        of which shall be paid by the Company.

     

    (gg)        “Warrant” has the meaning set forth in the Preamble.

     

    (hh)        “Warrant Register” has the meaning set forth in Section 6(c).

     

    (ii)          “Warrant Share Delivery Date” has the meaning set forth in Section 2(d).

     

    (jj)          “Warrant Shares” has the meaning set forth in the Preamble.

     

    2.           Exercise.

     

    (a)        Exercise of
        the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or before the Termination Date by delivery in accordance with the notice provisions of Section 7(f) (or such other office or agency of the Company as it may designate by notice in writing to the registered Holder at the address of the Holder appearing on the books of the Company) of a duly executed Notice of
        Exercise Form annexed hereto (each, a “Notice of Exercise”); provided
        that purchase rights represented by this Warrant with respect to any Excess Warrant Shares (1) shall be exercisable for Warrant Shares only following receipt of the Required Stockholder Approval and, (2) shall only be exercisable for cash in
        accordance with Section 5 prior to the receipt of the Required Stockholder Approval (and such exercise for cash may only occur beginning on the earlier of (i) the
        conclusion of the 2021 Stockholder Meeting or (ii) immediately upon any public announcement of a negotiated Change of Control).  For the avoidance of doubt, other than as provided in clause (ii) in the foregoing sentence, the purchase rights
        represented by this Warrant with respect to the Excess Warrant Shares shall not be exercisable prior to the 2021 Stockholder Meeting.  Unless the purchase rights represented by this Warrant are being exercised on a cashless basis in accordance with
        Section 2(c) or, with respect to the Excess Warrant Shares, for cash in accordance with Section 5,
        within three Trading Days following the date of exercise as aforesaid, the Holder shall deliver the Aggregate Exercise Price for the shares specified in the applicable Notice of Exercise by wire transfer or cashier’s check drawn on a United States
        bank (such date of delivery of the Aggregate Exercise Price, the “Exercise Date”).  Notwithstanding anything herein to the contrary, the
        Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and this Warrant has been exercised in full, in which case, the Holder shall surrender
        this Warrant to the Company for cancellation within three Trading Days of the date the final Notice of Exercise is delivered to the Company.  Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant
        Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased.  The Company shall maintain records showing the
        number of Warrant Shares purchased and the date of such purchases.  The Company shall inform the Holder if a Notice of Exercise has not been duly completed within one Business Day of receipt of such notice, but shall not refuse or object to the
        issuance of the Warrant Shares upon receipt of, and pursuant to, a duly completed Notice of Exercise.  The Holder and any assignee, by acceptance of this Warrant,
          acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the
          amount stated on the face hereof.

     

    
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    (b)        Exercise Price.  The exercise price per share of the Common Stock under this Warrant shall be $76.50, subject to adjustment hereunder (the “Exercise Price”).

     

    (c)          Cashless Exercise.  The Holder, at its option, may exercise this Warrant, in whole or in part, by means of a “cashless exercise” in which the Holder shall be entitled,
        provided that the “cashless exercise” pursuant to this Section 2(c) with respect to any Excess Warrant Shares may only be exercised following receipt of the Required Shareholder Approval or, at any time, in accordance with Section 5, to receive the number of Warrant Shares equal to the quotient obtained by dividing [(Y)*(A-B)] by (A), where:

     

    
      	 	
              (A) =

            	
              the average of the Closing Price of the shares of Common Stock for the five consecutive Trading Days ending on the last Trading Day immediately preceding the
                date on which the Holder elects to exercise this Warrant by means of a “cashless exercise,” as set forth in the applicable Notice of Exercise (such date, the “Cashless Exercise Date”);

            

    

     

    
      	 	
              (B) =

            	
              the Exercise Price of this Warrant, as adjusted pursuant to this Warrant as of the Cashless Exercise Date; and

            

    

     

    
      	 	
              (Y) =

            	
              the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means
                of a cash exercise pursuant to Section 2(a) rather than a cashless exercise.

            

    

     

    
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    (d)          Mechanics of Exercise.

     

    (i)         Delivery of Warrant Shares Upon Exercise.  The Company shall cause the Warrant Shares purchased hereunder to be transmitted by the Company’s transfer agent (the “Transfer Agent”) to the Holder by, at the Holder’s option, (A) crediting the account of the Holder’s or its designee’s balance account with The
        Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant in such system
        and there is an effective registration statement permitting the resale of the Warrant Shares by the Holder or (B) in book-entry form registered on the books of the Transfer Agent or, upon request by the Holder, by physical delivery of a certificate
        (or certificates, as applicable) to the address specified by the Holder in the Notice of Exercise, in each case in the name of the Holder or its designee and for the number of Warrant Shares to which the Holder is entitled pursuant to such
        exercise, by the date that is three Trading Days after the latest of (1) the delivery to the Company of the Notice of Exercise, (2) surrender of this Warrant (if required), (3) payment of the Aggregate Exercise Price as set forth above and (4)
        three Trading Days following the Cashless Exercise Date, if applicable (such date in (1), (2), (3) or (4), the “Warrant Share Delivery Date”). 

        The applicable Warrant Shares shall be deemed to have been issued, and the Holder or any other Person so designated to be named therein shall be deemed to have become a holder of record of such Warrant Shares for all purposes, as of the applicable
        Exercise Date or the date that is three Trading Days following the Cashless Exercise Date, as applicable.

     

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

     

    (iii)        Rescission Rights.  If the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder shall have the right to rescind such exercise.  Any rescission by the Holder pursuant to this Section 2(d)(iii) shall not affect any other remedies available to the Holder under applicable law or equity as a result of the Company’s failure to timely deliver the Warrant Shares.

     

    (iv)        No Fractional Shares.  No fractional shares shall be issued upon the exercise of this Warrant.  As to any fraction of a Warrant Share that the Holder would
        otherwise be entitled to purchase upon such exercise, the Company shall, at the Holder’s election, either (A) pay to such Holder an amount in cash (by delivery of a certified or official bank check or by wire transfer of immediately available
        funds) equal to the product of (1) such fraction multiplied by (2) the Closing Price of one Warrant Share on the Exercise Date or the Cashless Exercise Date, as applicable, or (B) round up to the next whole share.

     

    
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    (v)         Closing of Books.  The Company shall not close its stockholder books or records in any manner which prevents the timely exercise of this Warrant pursuant to the
        terms hereof.

     

    (e)         Conditional Exercise.  Notwithstanding any other provision hereof, if an exercise of any portion of this Warrant is to be made in connection with a public offering or a sale
        of the Company (pursuant to a merger, sale of stock, or otherwise), such exercise may, at the election of the Holder (set forth in the applicable Notice of Exercise), be conditioned upon the consummation of such transaction, in which case such
        exercise shall not be deemed to be effective until immediately prior to the consummation of such transaction.

     

    (f)          Representations, Warranties and Covenants of the Company.  The Company hereby represents, covenants and agrees, as applicable, except as (A) disclosed (to the extent that the
        relevance of any such disclosure with respect to any section of this Warrant is reasonably apparent on its face) in SEC Documents filed or furnished after December 31, 2019 and prior to the date hereof (other than disclosure contained in the “Risk
        Factors” or “Forward Looking Statements” sections of such SEC Documents or any other sections to the extent such disclosures are similarly predictive or forward-looking in nature), or (B) set forth in the Company Disclosure Letter (it being
        understood that any information, item or matter set forth on one section or subsection of the Company Disclosure Letter shall be deemed disclosure with respect to, and shall be deemed to apply to and qualify, the section or subsection of this
        Warrant to which it corresponds in number and each other section or subsection of this Warrant to the extent that it is reasonably apparent on its face that such information, item or matter is relevant to such other section or subsection):

     

    (i)         The Company (i)
        has been duly organized or formed, as the case may be, is validly existing and is in good standing under the laws of the State of Delaware, (ii) has all requisite power and authority to own its properties and to carry on its business as now being
        conducted and as presently proposed to be conducted (iii) is duly qualified or licensed to do business and is in good standing as a foreign corporation, partnership or other entity as the case may be, authorized to do business in each jurisdiction
        in which the nature of such businesses or the ownership or leasing of such properties requires such qualification, except, in each case, where the failure to be so qualified or in good standing would not, individually or in the aggregate,
        reasonably be expected to have a Material Adverse Effect.

     

    
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    (ii)         The issuance of
        this Warrant and any Warrant in substitution for or replacement of this Warrant (including pursuant to Section 2(d)(ii)) has been duly authorized and, upon issuance in
        accordance with the terms of the Transaction Documents, will be validly issued, fully paid and nonassessable and free from all preemptive or similar rights (except as set forth in the Investor Rights Agreement), taxes, Liens and charges with
        respect to the issue thereof. The issuance of the Warrant Shares has been duly authorized and, upon (A) receipt of the Required Stockholder Approval with respect to the Excess Warrant Shares, (B) the issuance of the Warrant Shares in accordance
        with the exercise of the Holder’s rights under this Warrant and (C) payment of the consideration required upon exercise pursuant to this Warrant (including by means of cashless exercise pursuant to Section 2(c)), the Warrant Shares will be validly
        issued, fully paid and nonassessable and free from all preemptive or similar rights (except as set forth in the Investor Rights Agreement), taxes, Liens and charges with respect to the issue thereof, with the Holders being entitled to all rights
        accorded to a holder of Common Stock. Assuming in part the accuracy of each of the representations and warranties of the Holder set forth in Section 2(g) of this Warrant,
        the offer and issuance by the Company of this Warrant is exempt from registration under the 1933 Act.

     

    (iii)       This Warrant and
        any Warrant in substitution for or replacement of this Warrant (including pursuant to Section 2(d)(ii)) is and shall be a legal, valid and binding obligation of the
        Company, enforceable against the Company in accordance with its terms, except as such enforceability may be subject to (A) bankruptcy, insolvency, reorganization, receivership, moratorium, fraudulent conveyance, fraudulent transfer or other similar
        laws now or hereafter in effect relating to applicable creditors’ rights generally and (B) general principles of equity (whether applied by a court of law or equity) and the discretion of the court before which any proceeding therefor may be
        brought.

     

    (iv)      Neither the
        execution, delivery or performance of this Warrant nor the consummation of any of the transactions contemplated hereby conflicts or will conflict with, violate, constitute a breach of or a default (with notice or lapse of time or otherwise) or a
        Debt Repayment Triggering Event under, or result in the imposition of a Lien on any assets of the Company, the imposition of any penalty or a Debt Repayment Triggering Event under or pursuant to (A) the Charter Documents, (B) any Applicable
        Agreement, (C) any Applicable Law or (D) any order, writ, judgment, injunction, decree, determination or award binding upon or affecting the Company, except in the case of clauses (B) and (C) for such conflicts, violations, breaches, defaults or
        events that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

     

    
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    (v)         The Company
        covenants that during the period this Warrant is outstanding, it will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights
        represented by this Warrant.  The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of executing stock certificates to execute and subject to the receipt of the
        Required Stockholder Approval with respect to the issuance of any Excess Warrant Shares, issue certificates, if necessary, for the Warrant Shares upon the exercise of the purchase rights under this Warrant. The Company will take all such action as
        may be necessary or appropriate to assure that the Warrant Shares may be issued as provided herein without violation of any applicable law, regulation or any requirements of the Trading Market upon which the Common Stock may be listed or any
        preemptive or similar rights (except as set forth in the Investor Rights Agreement) of any equity holder of the Company; provided that the Company’s obligations in the
        foregoing sentence with respect to the issuance of Excess Warrant Shares shall be subject to the receipt of the Required Stockholder Approval but, for the avoidance of doubt, such obligations include the Company’s obligations with respect to
        obtaining the Required Stockholder Approval in accordance with Section 4.

     

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

     

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

     

    
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    (g)          Representations and Warranties of the Holder.  The Holder, by the acceptance hereof, represents and warrants that it is an “accredited investor” as that term is defined in
        Rule 501(a) of Regulation D and that it is acquiring this Warrant and, upon any exercise hereof, will acquire the Warrant Shares issuable upon such exercise, for its own account and not with a view towards, or for resale in connection with, the
        public sale or distribution thereof, except pursuant to sales registered or exempted under the 1933 Act.

     

    3.           Certain Adjustments.  In order to prevent dilution of the purchase rights granted under this Warrant, the Exercise Price and the number of Warrant Shares issuable upon exercise of this Warrant shall
        be subject to adjustment from time to time as provided in this Section 3 (in each case, after taking into consideration any prior adjustments pursuant to this Section 3).

     

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

     

    (b)          Pro Rata Distributions.  If the Company, at any time while this Warrant is outstanding, shall distribute to all holders of Common Stock (and not to the Holder) evidences of
        its indebtedness or assets (including cash and cash dividends) or rights or warrants to subscribe for or purchase any security, then in each such case the Exercise Price shall be adjusted by multiplying the Exercise Price in effect immediately
        prior to the record date fixed for determination of stockholders entitled to receive such distribution by a fraction the numerator of which shall be such VWAP on such record date less the then fair market value (as determined by the Board in good
        faith) at such record date of the portion of such assets or evidence of indebtedness so distributed applicable to one outstanding share of Common Stock, and the denominator of which shall be the VWAP determined as of the record date mentioned
        above.  Such adjustment shall be made whenever any such distribution is made and shall become effective immediately after the record date mentioned above.

     

    
      11

      
        

    

    (c)          Issuance Less Than Fair Market Value.

     

    i.           Except as
        provided in Section 3(e) and except in the case of an event described in either Section 3(a)
        or Section 3(b), if the Company shall, at any time or from time to time after the Initial Issuance Date, issue or sell any shares of Common Stock without consideration or
        for consideration per share less than the VWAP immediately prior to such issuance or sale, then immediately upon such issuance or sale, the Exercise Price in effect immediately prior to such issuance or sale shall be reduced (and in no event
        increased) to an Exercise Price equal to a product obtained by multiplying the Exercise Price in effect immediately prior to such issuance or sale, by a fraction (which shall in no event be more than one):

     

    (1)         the numerator of which shall be the
        sum of (A) the product obtained by multiplying the Common Stock deemed outstanding immediately prior to such issuance or sale by the VWAP immediately prior
        to such issuance or sale plus (B) the aggregate consideration, if any, received by the Company upon such issuance or sale; and

     

    (2)         the denominator of which shall be
        the product obtained by multiplying (A) the Common Stock outstanding immediately after such issuance or sale by (B) the VWAP immediately prior to such issuance or sale.

     

    ii.          Upon any and each
        adjustment of the Exercise Price as provided in Section 3(c)(i), the number of Warrant Shares issuable upon the exercise of this Warrant immediately prior to any such
        adjustment shall be increased to a number of Warrant Shares equal to the quotient obtained by dividing:

     

    (1)         the product of (x) the Exercise
        Price in effect immediately prior to any such adjustment multiplied by (y) the number of Warrant Shares issuable upon exercise of this Warrant immediately
        prior to any such adjustment; by

     

    (2)         the Exercise Price resulting from
        such adjustment.

     

    (d)         Certain Events.  If any event of the type contemplated by the provisions of this Section 3 but
        not expressly provided for by such provisions occurs, then the Board shall make an appropriate adjustment in the Exercise Price and the number of Warrant Shares issuable upon exercise of this Warrant so as to protect the rights of the Holder in a
        manner consistent with the provisions of this Section 3; provided, that no such
        adjustment pursuant to this Section 3(d) shall increase the Exercise Price or decrease the number of Warrant Shares issuable except as otherwise determined pursuant to
        this Section 3.

     

    
      12

      
        

    

    (e)         Excluded Issuance.  Anything herein to the contrary notwithstanding, there shall be no adjustment to the Exercise Price or the number of Warrant Shares issuable upon exercise
        of this Warrant with respect to any Excluded Issuance.

     

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

     

    (g)          Notice to the Holder.

     

    (i)        Adjustment to Exercise Price.  Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly compute such adjustment, in good faith, in accordance with the terms of this Warrant, and prepare a certificate setting forth such adjustment, including (A) a statement of the adjusted
        Exercise Price and adjusted number or type of Warrant Shares or other securities issuable upon exercise of this Warrant (as applicable), (B) in the case of adjustment pursuant to Section

            3(b), a statement of the portion of assets or evidences of indebtedness so distributed or such subscription rights applicable to one share of Common Stock, and setting forth a brief statement of the facts requiring such adjustment
        and certifying the calculation thereof and the VWAP as of the applicable record date and (C) in the case of adjustment pursuant to Section 3(c), a statement of the
        material terms of the issuance of Common Stock, including (w) the per share consideration of such issuance, (x) the total amount received or receivable by the Company as consideration for such issuance, (y) the date of such issuance and (z) the
        VWAP immediately prior to such issuance.  The Company will deliver a copy of each such certificate to the Holder as promptly as reasonably practicable following any adjustment of the Exercise Price, but in any event not later than ten Business Days
        thereafter.

     

    (ii)        Notice to Allow Exercise by the Holder.  If the Company (A) declares a dividend (or any other distribution in whatever form) on the Common Stock, (B) declares a
        special nonrecurring cash dividend on or a redemption of the Common Stock, (C) authorizes the granting to all holders of the Common Stock or rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights
        of the Company, (D) enters into or becomes bound by an agreement in connection with a Change of Control or (E) authorizes the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the
        Company shall cause to be mailed to the Holder at its last address as it shall appear upon the Warrant Register (as defined in Section 6(c)) of the Company, at least 20 calendar days prior to the applicable record or effective date hereinafter
        specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of
        record to be entitled to such dividend, distribution, redemption, rights or warrants are to be determined or (y) the date on which such Change of Control is expected to become effective or close, and the date as of which it is expected that holders
        of the Common Stock of record shall be entitled to exchange their shares of Common Stock for securities, cash or other property deliverable upon such Change of Control; provided that the failure to mail such notice or any defect therein or in the mailing thereof shall not affect the validity of the corporate action
        required to be specified in such notice.  The Holder shall remain entitled to exercise this Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice except as may otherwise be
        expressly set forth herein.  Except as otherwise prohibited by Applicable Laws, to the extent that any notice provided pursuant to this Section 3(g)(ii) contains
        material, non-public information regarding the Company, the Company shall disclose such information regarding the Company in a Current Report on Form 8-K and file such Current Report on Form 8-K with the Commission as promptly as practicable, but
        in no event no later than the second Trading Day following the effective date of the event triggering such notice.

     

    
      13

      
        

    

    (h)         In the event of any (i) capital
        reorganization of the Company, (ii) reclassification of the stock of the Company (other than a change in par value or from par value to no par value or from no par value to par value or as a result of a stock dividend or subdivision, split-up or
        combination of shares), (iii) Change of Control or (iv) other similar transaction (other than any such transaction covered by Section 3(a) or Section 3(b)) in each case which entitles the holders of Common Stock to receive (either directly or upon subsequent liquidation) stock, securities or assets with respect to or in exchange for
        Common Stock, each Warrant that is not exercised prior to such event shall, immediately after such reorganization, reclassification, Change of Control or similar transaction, remain outstanding and shall thereafter, in lieu of or in addition to (as
        the case may be) the number of Warrant Shares then exercisable under this Warrant, be exercisable for the kind and number of shares of stock or other securities or assets of the Company or of the successor Person resulting from such transaction to
        which the Holder would have been entitled upon such reorganization, reclassification, Change of Control or similar transaction if the Holder had exercised this Warrant in full immediately prior to the time of such reorganization, reclassification,
        Change of Control or similar transaction and acquired the applicable number of Warrant Shares then issuable hereunder as a result of such exercise (without taking into account any limitations or restrictions on the exercisability of this Warrant
        and, with respect to the Excess Warrant Shares, assuming for this purpose that the Company has obtained the Required Stockholder Approval); and, in such case, appropriate adjustment shall be made with respect to the Holder’s rights under this
        Warrant to insure that the provisions of this Section 3 shall thereafter be applicable, as nearly as possible, to this Warrant in relation to any shares of stock,
        securities or assets thereafter acquirable upon exercise of this Warrant (including, in the case of any Change of Control or similar transaction in which the successor or purchasing Person is other than the Company, an immediate adjustment in the
        Exercise Price to the value per share for the Common Stock reflected by the terms of such Change of Control or similar transaction, and a corresponding immediate adjustment to the number of Warrant Shares acquirable upon exercise of this Warrant
        without regard to any limitations or restrictions on exercise and, with respect to the Excess Warrant Shares, assuming for this purpose that the Company has obtained the Required Stockholder Approval, if the value so reflected is less than the
        Exercise Price in effect immediately prior to such Change of Control or similar transaction); provided, that if the holders of Common Stock have the right to elect the kind or amount of consideration receivable upon consummation of such
        reorganization, reclassification, Change of Control or similar transaction, then each Warrant that is not exercised prior to such event shall be exercisable for the kind and number of shares of stock or other securities or assets of the Company or
        of the successor Person resulting from such transaction to which a holder of Common Stock would have been entitled upon such reorganization, reclassification, Change of Control or similar transaction if such holder of Common Stock had failed to
        make an election.  The provisions of this Section 3(h) shall similarly apply to successive Change of Control or similar transactions.  Prior to the consummation thereof,
        the successor Person (if other than the Company) resulting from such Change of Control or similar transaction, shall assume, by written instrument substantially similar in form and substance to this Warrant, the obligation to deliver to the Holder
        such shares of stock, securities or assets which, in accordance with the foregoing provisions, such Holder shall be entitled to receive upon exercise of this Warrant.  Without limiting the generality of Section 2(f)(iv), the Company will use its
        reasonable best efforts to obtain all such authorizations, exemptions or consents and take all actions as may be necessary to effectuate the foregoing.

     

    
      14

      
        

    

    4.          Covenant to Seek the Required Stockholder Approval. The Company shall use its reasonable best efforts to obtain, at the 2021 Stockholder Meeting, the Required Stockholder Approval, including by
        endorsing its approval in the related proxy materials or communications (“Proxy Materials”). The Company will promptly notify the Holder if
        the Required Stockholder Approval is or is not obtained.  In the case that the Required Stockholder Approval is not obtained at the 2021 Stockholder Meeting, the Company shall, upon the written request of the Holder or Holders holding the Warrant
        or Warrants representing the right to purchase a majority of the Warrant Shares, hold a meeting of its stockholders within one hundred twenty (120) days following such request and use its reasonable best efforts to obtain the Required Stockholder
        Approval; provided that the Holder(s) may not request such stockholder meeting more than once within any 90-day period or more than three times in total following the
        2021 Stockholder Meeting.  With respect to any Proxy Materials delivered or otherwise made available to the Company’s stockholders in connection with the foregoing, the Company shall provide the Holder and its outside legal counsel with a
        reasonable opportunity to review and comment on drafts of such Proxy Materials prior to filing, furnishing or delivering such Proxy Materials to the applicable Governmental Authority and their dissemination to the Company’s stockholders and
        incorporate in such Proxy Materials all comments reasonably proposed by Holder or its outside legal counsel.  The Company agrees that all information relating to the Holder, its Affiliates and its and their respective Representatives included in
        the Proxy Materials shall be in form and content reasonably satisfactory to the Holder.

     

    5.          Conversion of Warrant. Notwithstanding anything herein to the contrary, prior to the Required Stockholder Approval being obtained upon delivery of a Notice of Exercise by the Holder with respect to
        any Excess Warrant Shares (provided that such Notice of Exercise may only be delivered beginning on the earlier of (1) the conclusion of the 2021 Stockholder Meeting or (2) immediately upon any public announcement of a negotiated Change of
        Control), in lieu of issuing and delivering such Excess Warrant Shares to the Holder, the Company shall pay cash to the Holder in exchange for the cancellation of such portion of this Warrant exercisable into such Excess Warrant Shares set forth in
        the Notice of Exercise (the “Excess Payment Amount”) at an amount equal to (Y)*(A-B), where:

     

    
      15

      
        

    

    
      	 	
              (A) =

            	
              the average of the Closing Price of the shares of Common Stock for the five consecutive Trading Days ending on the last Trading Day immediately preceding the
                date on which the Holder elects to exercise this Warrant with respect to such Excess Warrant Shares, as set forth in the applicable Notice of Exercise (such date, the “Excess Payment Exercise Date”);

            

    

     

    
      	 	
              (B) =

            	
              the Exercise Price of this Warrant, as adjusted pursuant to the Warrant as of the Excess Payment Exercise Date; and

            

    

     

    
      	 	
              (Y) =

            	
              the number of Excess Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by
                means of a cash exercise pursuant to Section 2(a) rather than pursuant to this Section 5.

            

    

     

    Payment by the Company of the cash payment pursuant to this Section 5 shall be made by the Company as promptly as practicable, but in no event later than the date that is
      ten Trading Days after the latest of (1) the delivery to the Company of the applicable Notice of Exercise, (2) surrender of this Warrant (if required), and (3) three Trading Days following the Excess Payment Exercise Date.

    

    

    6.            Transfer of Warrant.

     

    (a)          Transferability.  Subject to applicable securities laws, this Warrant and all rights hereunder are transferable, in whole or in part, upon surrender of this Warrant at the
        principal office of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer
        taxes payable upon the making of such transfer.  Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination or
        denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled.  This Warrant, if properly assigned in
        accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.  For the avoidance of doubt, nothing in any of the existing agreements or any other arrangements involving the Company and
        the Holder or any of their respective Affiliates (contractual or otherwise) shall be construed as limiting the Holder’s or any of its Affiliates’ or assigns’ ability to transfer or exercise this Warrant or transfer any of the Warrant Shares, except
        that the Holder agrees that it shall not, directly or indirectly, whether by merger, consolidation, division or otherwise, and whether by or through one or more Affiliates, transfer, sell, assign, pledge, hypothecate or otherwise dispose of the
        Warrant to any Person who is engaged in a business that directly competes or whose products or services directly compete the Company’s and/or any of its significant subsidiaries’ (as defined by Rule 1.02(w) of Regulation S-X under the 1934 Act)
        businesses or their respective products or services.

     

    
      16

      
        

    

    (b)          New Warrants.  This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together with a written notice
        specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney.  Subject to compliance with Section 4(a), as
        to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice (and the old
        Warrant or Warrants shall promptly be cancelled); provided, that the aggregate number of Warrant Shares to be issued upon exercise of the Warrant and any Warrants issued pursuant to this Section 4(b), in aggregate, shall not exceed 500,000, as adjusted in accordance with the terms herein.  All Warrants issued on transfers or exchanges shall be dated the Initial Issuance Date and shall be identical with this
        Warrant except as to the number of Warrant Shares issuable pursuant thereto.

     

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

     

    7.            Miscellaneous.

     

    (a)          No Rights as Stockholders Until Exercise.  Except as provided in Section 3, this Warrant does not
        entitle the Holder to any voting rights, dividends or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d).

     

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

     

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

     

    (d)          Governing Law; Jurisdiction.

     

    (i)          Governing Law.  This Warrant and any claims, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or
        relating to this Warrant and the transactions contemplated hereby shall be governed by, and construed in accordance with, the law of the State of New York without giving effect to any choice of law or conflict of law provision or rule (whether of
        the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York.

     

    
      17

      
        

    

    (ii)         Jurisdiction.  Each party hereto irrevocably and unconditionally agrees that it will not commence any action, litigation or proceeding of any kind or description,
        whether in law or equity, whether in contract or in tort or otherwise, against any other party hereto in any way relating to this Warrant or the transactions relating hereto, in any forum other than the federal courts of the United States of
        America located in the Borough of Manhattan in the City of New York or the courts of the State of New York in each case located in the Borough of Manhattan in the City of New York, and any appellate court from any thereof; and each of the parties
        hereto irrevocably and unconditionally submits to the jurisdiction of such courts and agrees that all claims in respect of any such action, litigation or proceeding may be heard and determined in such New York State court or, to the fullest extent
        permitted by applicable law, in such federal court.  Each of the parties hereto agrees that a final judgment in any such action, litigation or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in
        any other manner provided by law.

     

    (iii)       Waiver of Venue.  Each party hereto irrevocably and unconditionally waives, to the fullest extent permitted by applicable law, any objection that it may now or
        hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Warrant in any court referred to in paragraph (ii) of this Section 7(d). 

        Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

     

    (iv)        Service of Process.  Each party hereto irrevocably consents to service of process in the manner provided for notices in Section 7(f).

     

    (e)         Waiver of Jury Trial.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
        PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS WARRANT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY
        OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER
        INTO THIS WARRANT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 7(E).

     

    
      18

      
        

    

    (f)          Notices.  Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Warrant shall be in writing and shall be deemed to
        be delivered:  (i) upon receipt, when delivered personally; (ii) upon delivery, when sent by electronic mail, in each case properly addressed to the party to receive the same; or (iii) one Business Day after deposit with an overnight courier
        service (provided e-mail notice is sent that such communication was sent by overnight courier); provided that any electronic mail transmission is promptly confirmed by a
        responsive electronic communication by the recipient thereof or receipt is otherwise clearly evidenced (excluding out-of-office replies or other automatically generated responses) or is followed up within one Business Day after e-mail by dispatch
        pursuant to the foregoing clause (i).  The addresses and e-mail addresses for such communications shall be:

     

    if to the Company:

     

    	 	
            PAR Technology Corporation

          
	 	
            8383 Seneca Turnpike

          
	 	
            New Hartford, New York 13413

          
	 	
            Attention:

          	
            Bryan Menar

          
	 	 	
            Cathy King

          
	 	
            E-mail:

          	
            bryan_menar@partech.com

          
	 	 	
            cathy_king@partech.com

          

     

    

    with a copy to (for informational purposes only):

     

    	 	
            Gibson, Dunn & Crutcher LLP

          
	 	
            200 Park Avenue

          
	 	
            New York, NY 10166

          
	 	
            Attention:

          	
            Boris Dolgonos

          
	 	 	
            Eduardo Gallardo

          
	 	
            E-mail:

          	
            bdolgonos@gibsondunn.com

          
	 	 	
            egallardo@gibsondunn.com

          

     

    

    if to the Holder:

     

    	 	
            PAR Act III, LLC

          
	 	
            23 Prescott St.

          
	 	
            Brookline, MA 02446

          
	 	
            Attention:

          	
            Ron Shaich

          
	 	
            E-mail:

          	
            ronshaich@act3holdings.com

          

    

    

    with a copy to (for informational purposes only):

     

    	 	
            Sullivan & Cromwell LLP

          
	 	
            125 Broad St.

          
	 	
            New York, NY 10004

          
	 	
            Attention:

          	
            Audra D. Cohen

          
	 	 	
            Matthew B. Goodman

          
	 	
            E-mail:

          	
            cohena@sullcrom.com

          
	 	 	
            goodmanm@sullcrom.com

          

    

    

    
      19

      
        

    

    or to such other address and/or e-mail address and/or to the attention of such other Person as the recipient party has specified by written notice
      given to each other party five days prior to the effectiveness of such change.  Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically generated by the
      sender’s e-mail containing the time, date, and recipient e-mail address, or (C) given by the recipient where notice was provided by an overnight courier service (provided e-mail notice is sent stating that such communication was sent by overnight
      courier) shall be rebuttable evidence of personal service or receipt by e-mail in accordance with clause (i) or (ii) above, respectively.

     

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

     

    (h)         Remedies.  Each of the Holder, on the one hand, and the Company, on the other hand, acknowledges and agrees that irreparable injury to the other party hereto would occur in
        the event any of the provisions of this Warrant were not performed in accordance with their specific terms or were otherwise breached and that such injury would not be adequately compensable by the remedies available at law (including the payment
        of money damages).  It is accordingly agreed that the Holder, on the one hand, and the Company, on the other hand (in each case, the “Moving Party”), shall each be
        entitled to specific enforcement of, and injunctive relief to prevent any violation of, the terms hereof, and the other party hereto will not take action, directly or indirectly, in opposition to the Moving Party seeking such relief on the grounds
        that any other remedy or relief is available at law or in equity.  This Section 7(h) is not the exclusive remedy for any violation of this Warrant.

     

    (i)           Successors and Assigns.  Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall be binding upon and inure to the benefit of
        the parties hereto and their respective the successors, heirs and permitted assigns.  The provisions of this Warrant are intended to be for the benefit of the Holder from time to time of this Warrant and shall be enforceable by the Holder or holder
        of Warrant Shares.  For the avoidance of doubt, that in the event that any Person acquires this Warrant or any Warrant Shares, such Person shall, without any further writing or action of any kind, be deemed a beneficiary hereof for all purposes and
        by taking and holding such Warrant or Warrant Shares, as applicable, such Person shall be treated as a “Holder” for all purposes under this Warrant and shall be entitled to receive the benefits of, and be conclusively deemed to have agreed to be
        bound by all of the applicable terms and provisions of, this Warrant.

     

    
      20

      
        

    

    (j)         No Third Party Beneficiary.  Notwithstanding anything herein to the contrary, this Warrant is intended solely for the benefit of the parties hereto and their respective
        successors, heirs and permitted assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

     

    (k)          Entire Agreement.  This Warrant supersedes all other prior or contemporaneous agreements and understandings, both written and oral, between the Company, the Holder, their
        Affiliates and Persons acting on their behalf with respect to the subject matter hereof, and this Warrant and the instruments referenced herein constitute the full and entire agreement and understanding of the parties with respect to the subject
        matters hereof and thereof, and, except as specifically set forth herein or therein, neither the Company nor the Holder makes any representation, warranty, covenant or undertaking with respect to any such matters.

     

    (l)          Amendments and Waivers.  Provisions of this Warrant may be amended and the observance thereof may be waived (either generally or in a particular instance and either
        retroactively or prospectively) only if such amendment or waiver is in writing and signed, in the case of an amendment, by the Company and the Holder, and, in the case of a waiver, by the party against whom the waiver is to be effective.  Any
        amendment or waiver effected in accordance with this Section 7(l) shall be binding upon the Holder (and each future Holder) and the Company.

     

    (m)        Counterparts.  This Warrant may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and shall become effective when
        counterparts have been signed by each party and delivered to the other party; provided that a facsimile or .pdf format signature shall be considered due
        execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original, not a facsimile or .pdf signature.

     

    (n)          Severability.  If any provision of this Warrant is prohibited by law or otherwise becomes or is declared by a court of competent jurisdiction to be invalid or unenforceable,
        the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect the
        validity of the remaining provisions of this Warrant so long as this Warrant as so modified continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity
        or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. 
        The parties hereto will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or
        unenforceable provision(s).

     

    
      21

      
        

    

    (o)        Headings; Interpretation.  The headings of this Warrant are for convenience of reference and shall not form part of, or affect the interpretation of, this Warrant.  When a
        reference is made in this Warrant to a Section, Schedule or Annex, such reference shall be to a Section, Schedule or Annex of this Warrant unless otherwise indicated.  Whenever the words “include,” “includes” or “including” are used in this
        Warrant, they shall be deemed to be followed by the words “without limitation.”  The words “hereof,” “herein,” and “herewith” and words of similar import shall, unless otherwise stated, be construed to refer to this Warrant as a whole (including
        all of the Schedules and Annexes) and not to any particular provision of this Warrant.  Unless otherwise specified in this Warrant, the term “dollars” and the symbol “$” mean U.S. dollars for purposes of this Warrant and all amounts in this Warrant
        shall be paid in U.S. dollars.  The definitions contained in this Warrant are applicable to the singular as well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such term.  Any agreement,
        instrument or statute, rule or regulation defined or referred to in this Warrant means such agreement, instrument or statute, rule or regulation as from time to time amended, modified or supplemented, including (in the case of agreements or
        instruments) by waiver or consent and (in the case of statutes) by succession of comparable successor statutes.  Any reference to any section under the 1933 Act, or any rule promulgated thereunder, shall include any publicly available interpretive
        releases, policy statements, staff accounting bulletins, staff accounting manuals, staff legal bulletins, staff “no-action,” interpretive and exemptive letters, and staff compliance and disclosure interpretations (including “telephone
        interpretations”) of such section or rule by the Commission.  Each of the parties has participated in the drafting and negotiation of this Warrant.  If an ambiguity or question of intent or interpretation arises, this Warrant shall be construed as
        if it were drafted by each of the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of authorship of any of the provisions of this Warrant.

     

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

    

    

    (Signature Page Follows)

     

    
      22

      
        

    

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

     

    	 	
            PAR TECHNOLOGY CORPORATION

          
	 	 	 
	 	By:	
            /s/ Savneet Singh

          
	 	 	
            Name: Savneet Singh

          
	 	 	
            Title: Chief Executive Officer and President

          

    
       

      

      [Signature Page to Common Stock Purchase Warrant]

       

      

    

    
      
        

    

    	
            Accepted and agreed,

          
	 
	
            PAR Act III, LLC

          
	 
	By:	
            /s/ Ronald M. Shaich

          	 
	 	
            Name: Ronald M. Shaich

          
	 	
            Title: Chief Executive Officer

          

     

    

    
      [Signature Page to Common Stock Purchase Warrant]

      

    

    
      
        

    

    
    
      Annex

       

      

    

    NOTICE OF EXERCISE

     

    To:         PAR Technology Corporation

     

    (1)          The undersigned hereby elects to purchase ________
        Warrant Shares of the Company pursuant to the terms of the attached Common Stock Purchase Warrant (the “Warrant”), and tenders herewith
        payment of the applicable exercise price, together with all applicable transfer taxes, if any.  Capitalized terms used and not otherwise defined in this Notice of Exercise that are defined in the Warrant shall have the respective meanings ascribed
        to such terms in the Warrant.

     

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

     

    ☐ in lawful money of the United States;

    

     

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

    

     

    
      ☐  if permitted, the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in Section 5 of the Warrant, to exercise the
        Warrant with respect to the cash amount payable by the Company pursuant to the procedure set forth in Section 5 of the Warrant.

    

     

    (3)          As to any fraction of a Warrant Share that the
        undersigned would otherwise be entitled to purchase in connection with this Notice of Exercise, please (check applicable box):

    

    
      ☐  pay an amount in cash pursuant to Section 2(d)(iv) of the Warrant; or

    

     

    
      ☐  round up to the next whole share.

    

     

    (4)          Other than with respect to an exercise pursuant to
        Section 5 of the Warrant, please issue said Warrant Shares in book-entry form in the name of the undersigned or in such other name as is specified below:

    

      	
               

            	

            	
               

            

      

      

    
      The Warrant Shares shall be delivered to the following DWAC Account Number or by physical delivery of evidence of issuance of said Warrant Shares in book-entry form to:

       

      

      
        	
                 

              	
                 

              	
                 

              

        

        

        	
                 

              	
                 

              	
                 

              

        

        

        	
                 

              	
                 

              	
                 

              

         

        

      

      
        
          

      

      
      (5)          With respect to an exercise pursuant to Section 5 of the Warrant, please pay the aggregate amount required by Section 5 of the Warrant by wire transfers of
        immediately available funds in U.S. dollars to one or more accounts set forth below:

      
         

        	
                 

              	
                 

              	
                 

              

        

        

        	
                 

              	
                 

              	
                 

              

        

        

        	
                 

              	
                 

              	
                 

              

         

        

        
          [SIGNATURE OF HOLDER]

           

        

        
          	Name of Investing Entity:	

                

        

        	Signature of Authorized Signatory of Investing Entity:	
                 

              

        
          
            	Name of Authorized Signatory:	
                     

                  

          

          
            	Title of Authorized Signatory:	
                     

                  

          

          
            	Date:	
                     

                  

          

          

        

        
          26

          
            

        

        ASSIGNMENT FORM

         

        (To assign the foregoing warrant, execute

        this form and supply required information.

        Do not use this form to exercise the warrant.)

         

        FOR VALUE RECEIVED, all of or [_______] of the shares of the foregoing Common Stock Purchase Warrant (the “Warrant”) and all rights evidenced thereby are hereby assigned to

         

        
          	
                   

                	whose address is

        

        
          	
                   

                	.

                

        

        
          	
                   

                	
                   

                

        

        

        	
                 

              	
                Dated:  ______________, _______

              

         

        
          	Holder’s Signature:	

                
	
                   

                	
                   

                
	Holder’s Address:	
                   

                
	 	 
	 	 

        

        

        

        	Signature Guaranteed:	
                 

              	
                 

              

         

        NOTE:  The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change
          whatsoever, and must be guaranteed by a bank or trust company.  Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the Warrant.Exhibit 10.1

 

 

 

 

 

 

 

 

SUBSCRIPTION OF SHARES
AGREEMENT

 

between

 

CG Malta Holding Limited
and

 

xSigma Entertainment Limited

 

 

 

 

 

 

 

     

     

    

 

SUBSCRIPTION OF SHARES AGREEMENT

 

This Subscription of Shares Agreement (hereinafter
referred to as the “Agreement”) is being entered into this 4th day of the month of April, of the year 2021.

 

Between:

 

On the first part:-

 

CG Malta Holding Limited, a
limited liability company incorporated and existing under the laws of Malta bearing registration number C 87174 with registered office
at Level 3 (Suite No. 2172), Tower Business Centre, Tower Street, Swatar, Birkirkara BKR 4013, Malta represented herein by Daniel Eric
Graetzer, a British national and holder of British Passport No. 508773876 and residing at Calle Del Barco 5 1-A, Madrid 28004, Spain,
(hereinafter referred to as the "Company") ;

Subscription and

 

On the second
part:-

 

xSigma
Entertainment Limited, a company incorporated and existing under the laws of the British Virgin Islands, bearing registration
number 2057319 with registered office situated at OMC Chamber, Wickhams Cay I, Road Town, Tortola, British Virgin Islands represented
herein by Jiancong Huang a Chinese national and holder of the People’s Republic of China Passport No. E62850043 and residing at
No. 678 Dingxiang Road, Binhai Industrial Park, Economic & Technology Development Zone, Wenzhou, Zhejiang Province, People’s
Republic of China 325025 (hereinafter referred to as the " Subscriber");

 

And for the purposes of acknowledging
and confirming the contents of this Agreement:

 

On the Third Part:-

 

Daniel Eric Graetzer, a British
national and holder of British Passport No. 508773876 and residing at Calle Del Barco 5 1-A, Madrid 28004, Spain (hereinafter called the
"Shareholder");

 

(The Company or, the Subscription
Subscriber shall hereinafter be individually each referred to as a “Party” and collectively referred to as the “Parties”)

 

PREAMBLES:

 

WHEREAS the Company, in terms
of the latest amendments made to the Memorandum & Articles Association, has an authorised share capital of one hundred million Euro
(€100,000,000) divided into one hundred million (100,000,000) Ordinary Shares of one Euro (€1.00) each and an issued share capital
of one thousand two hundred Euro (€1,200) divided into one thousand two hundred (1,200) Ordinary Shares of one Euro (€1.00)
each;

 

    2 

     

    

 

WHEREAS the Subscriber is
desirous of subscribing to one hundred sixty-four (164) Ordinary Shares at a premium of ninety-one thousand four hundred sixty-three United
States Dollars and forty-two cents ($91,463.42) ( or equivalent in Euro subject to the exchange rate mutually agreed by the Parties) (hereinafter
referred to as the “First Shares”), equivalent to twelve per cent (12%) shareholding/ownership in the Company post-offering,
which is desirous of issuing and allotting the said Shares on the terms and subject to the conditions set forth in this Agreement;

 

WHEREAS the Subscriber is
desirous of subscribing to an additional amount of Ordinary Shares in the Company for the total purchase price of thirty-five million
United States Dollars (USD 35 million) or Euro equivalent which would ultimately guarantee to the Subscriber a total of twenty-five per
cent (25%) shareholding/ownership in the Company post- offering(hereinafter referred to as the the “Second Shares”)
(the First Shares and Second Shares hereinafter collectively referred to as the “Shares”). The issuance and allotment
of the said Second Shares are based on the terms and subject to the conditions set forth in this Agreement and subject to the signing
of a second share subscription agreement between the Parties.

 

NOW THEREFOR IT IS HEREBY AGREED
AS FOLLOWS:

 

		1.	SUBJECT MATTER

 

		1.1	The Company Subscription hereby issued and allots the First Shares to the Subscriber
(together with all rights attaching thereto at the date of this Agreement and subject to the terms and conditions herein below mentioned),
and the Subscriber hereby accepts and acquires the First Shares.

 

		1.2	The Company and the Subscriber hereby agree to waive any pre-emption rights they
may have for the purposes of the present share Subscription.

 

		1.3	The Company hereby regulates the future subscription of the Second Shares to the
Company subject to the terms and conditions herein below mentioned and subject to the rights attaching thereto upon the obligatory signing
of a second share subscription agreement between the Parties, and the Subscriber hereby accepts the obligation to acquire the Second Shares.

 

		1.4	The Company or and the Subscriber hereby agree to waive any pre-emption rights
they may have for the purposes of the future share subscription of the Second Shares.

 

		2.	PRICE

 

		2.1	The First Shares are being subscribed by the Subscriber for the total price of
fifteen million United States Dollars ($15,000,000) (hereinafter referred to as the "Price"), payable by the Subscriber
to the Company.

 

    3 

     

    

 

		2.2	The Parties agree that the Second Shares shall be subscribed by the Subscriber
for the total price of thirty-five million United States Dollars ($35,000,000) payable by the Subscriber to the Company upon signing of
a second share subscription agreement not later than four (4) months from the date of signing of this Agreement.

 

		2.3	In the event that the Subscriber fails to abide by its obligation as outlined
above in sub- clause 2.2 of this Agreement, the Subscriber agrees to, immediately and no later than thirty (30) days from the lapse of
the four (4) month period mentioned above (the “Second Subscription Deadline”), either: (i) forfeit two per cent (2%)
shareholding/ownership in the Company; or (ii) pay a sum equivalent to Three Million United States Dollars (USD 3,000,000), or the equivalent
in Euro, by way of compensation to the Company for any such failure. As consideration for this provision, the Company agrees that the
Subscriber shall have the exclusive right to the Second Shares and shall not offer the Second Shares to any party other than the Subscriber
prior to expiration of the Second Subscription Deadline at any valuation of the Company.

 

		2.4	The Price is being paid, now on this Agreement, by the Subscriber to the Company
or, who accepts and gives due receipt thereof, and this in full and final settlement of the Price. The following are the bank details
into which the Price shall be paid:

 

Either

 

SPARKASSE BANK ACCOUNT CG MALTA HOLDING LIMITED

10.00.0035546.000 - GIRO ACCOUNT

IBAN: MT96SBMT55505000010000035546000

 

Or

 

Bank of Valletta p.l.c USD Account CSB Trustees &
Fiduciaries Limited

IBAN: MT83VALL22013000000040015854913 SWIFT/BIC Code:
VALLMTMT

 

Or

 

MVB BANK INC

CG Trading Inc

ABA Routing Number: 051504597 Account Number: 160806

 

As may be mutually agreed between the Parties. 

 

    4 

     

    

 

		3.	GENERAL REPRESENTATIONS AND WARRANTIES

 

		3.1	The Company warrants that the First Shares are being issued and allotted to the
Subscriber free from all pledges, charges, encumbrances, liability pledge or other indebtedness and third-party rights and together with
all rights attaching thereto.

 

		3.2	The Parties respectively represent and warrant that they have full power and authority
to enter into this Agreement and, where relevant, to carry out their obligations thereunder. This Agreement has been duly executed by
the Parties and constitutes valid and binding obligations of the said Parties enforceable in accordance with its terms and conditions.

 

		3.3	The persons signing the Agreement declare that they are duly empowered to sign
the said Agreement and that there are no further consents or approvals required for the execution or performance of the Agreement that
have not been duly obtained.

 

		3.4	In the event that any representation or warranty given by the Company in this Agreement
is shown to be incorrect or inaccurate the Company agrees to indemnify the Subscriber against and hold the Subscriber harmless from any
and all losses incurred or suffered by the Subscriber relating to or arising out of or in connection with any breach of or any inaccuracy
in any representation or warranty. In addition, if any of representations and warranties of the Company set out in Sections 5 is shown
to be materially incorrect or inaccurate, the Subscriber, in addition to any other amounts that be due from the Company to the Subscriber
hereunder, shall be entitled to liquidated damages and equitable relief as permitted by the applicable law.

 

		3.5	The representations and warranties contained in this Agreement shall survive and
continue in full force and effect indefinitely.

 

		4.	REPRESENTATION AND WARRANTIES OF THE SUBSCRIBER

 

The Subscriber hereby represents and warrants to the t Company
as follows:

 

		4.1	Authorization and Binding Effect – The Subscriber has the full right,
power and authority to enter into and perform its obligations under this Agreement. This Agreement has been duly executed and delivered
by the Company and is a valid and binding agreement of the Subscriber, enforceable against the Subscriber in accordance with its terms.

 

		4.2	Compliance with Laws and Other Instruments - To the knowledge the
                                                            Subscriber, the execution and delivery by the Subscriber, the consummation of the Subscription of shares contemplated hereby and the
                                                            performance by the Subscriber of its obligations hereunder, will not conflict with, or result in any violation of or default under
                                                            any provision of any governing instrument applicable to the Subscriber, or any agreement or instrument to which the Subscriber is a
                                                            party or by which the Subscriber or any of its properties is bound, or any license, permit, franchise, judgment, order, writ,
                                                            decree, statute, rule or regulation applicable to the Subscriber or any of its businesses or properties. The Subscriber’s
                                                            investment in the Shares is permitted by all applicable laws. The purchase of the Shares is not part of a plan
or scheme to evade registration under any laws or regulations.

 

    5 

     

    

 

		4.3	SUBSCRIBER Representations -

 

		a.	The First Shares Subscription herein shall be acquired solely by and for the account
of the Subscriber for investment, and are not being purchased for subdivision, fractionalization, resale or distribution; the Subscriber
has no contract, undertaking, agreement or arrangement with any person to sell, transfer or pledge all or any part of the First Shares
for which the Subscription Subscriber is subscribing, and the Subscription Subscriber has no present plans or intentions to enter into
any such contract, undertaking or arrangement. In order to induce the Company to issue and sell the First Shares to the Subscription Subscriber,
the Subscriber agrees that the Company will have no obligation to recognize the ownership, beneficial or otherwise, of the First Shares
by anyone but the Subscriber;

 

		b.	The Subscriber has received, read, understands and is fully familiar with the
any documents related to the Company accompanying this Agreement;

 

		c.	The Subscriber understands that any financial information about the Company delivered
to the Subscriber may contain management’s projections of, among other things, future results of operations. In addition, no independent
accountants or auditors have compiled or examined the estimates and projections and, accordingly, no opinion is expressed or any other
form of assurance with respect to these estimates and projections. Any and all projections are based upon a number of good faith assumptions
and estimates presented with numerical specificity and considered reasonable by the Company when taken as a whole. These assumptions and
estimates, however, are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of
which are beyond the Company’s control and are based upon specific assumptions with respect to future business decisions. Actual
results will vary from the estimates used in making the projections and such variations may be material. The Subscriber agrees that nothing
set forth in the financial information is a representation or warranty by the Company or any other person of results that will actually
be achieved;

 

		d.	The Subscriber understands and has adequately informed each of its partners that
the First Shares are a speculative investment which involves a high degree of risk of loss of the investment therein, the Subscriber’s
financial situation is such that the Subscriber and each of its partners can afford to bear the economic risk of holding the First Shares
acquired by the Subscriber hereunder for an indefinite period of time, has adequate means for providing for the Subscriber’s current
needs and contingencies and can afford to suffer the complete loss of the investment in the First Shares;

 

		e.	The Subscriber and the Subscriber’s representatives, including its partners,
the Subscriber’s financial, tax, legal and other advisers (collectively, “Subscriber’s Advisors”), have
carefully reviewed all documents furnished to them in connection with the investment in the First Shares, and understand and have taken
cognizance of all the risk factors delivered herewith and related to such investment, and no representations or warranties have been made
to the Subscriber or the Subscriber’s Advisors concerning such investment or the Company, the
Company’s prospects or other matters;

 

    6 

     

    

 

		f.	The Subscriber and each of its partners has been given the opportunity to examine
all documents and to ask questions of, and to receive answers from, the Company and its representatives concerning the terms and conditions
of the acquisition of the First Shares and the business of the Company, and to obtain any additional information which the Subscriber
or the Subscriber’s Advisors deem necessary to verify the accuracy of the information that has been provided to the Subscriber,
in order for the Subscriber to evaluate the merits and risk of the investment in the First Shares;

 

		g.	The Subscriber understands and has adequately informed each of its partners that
no authority has made any finding or determination as to the fairness of an investment in the First Shares;

 

		h.	The Subscriber is unaware of, is in no way relying on, and did not become aware
of the opportunity to purchase the First Shares through or as a result of, any form of general solicitation or general advertising, including,
without limitation, any article, notice, advertisement or other communication published in any newspaper, magazine or similar media or
broadcast over television or radio, in connection with this Subscription of shares;

 

		i.	The Subscriber agrees that it will not transfer the First Shares
or any interest therein, unless and until the Company shall have consented thereto (which consent may be withheld in the absolute discretion
of the Company’s Board of Directors). The Subscriber acknowledges that it generally must hold the First Shares for a minimum period
of one year and may not sell, transfer, pledge or otherwise dispose of the First Shares. Further, the Subscriber shall provide, if the
Company so requires, a legal opinion satisfactory to the Company, that the intended disposition will not violate any laws of Malta in
place at the time;

 

		j.	The Subscriber is duly organized, validly existing and in good standing under the
laws of the British Virgin Islands, has duly authorized the execution and delivery of this Agreement (which shall be the legal, valid
and binding obligation of such entity) and the consummation of the transactions contemplated hereby by all necessary action;

 

		k.	The execution and delivery of this Agreement will not violate or be in conflict
with any order, judgment, injunction, agreement or controlling document to which the Subscriber or any of its partners is a party or by
which the Subscriber or any of its partners is bound;

 

		l.	Any information which the Subscriber has heretofore furnished or is furnishing
herewith to the Company about the Subscriber, and any and all information filed by the Subscriber with the relevant authorities, is complete
and accurate. The Subscriber further represents and warrants that the Subscriber will notify and supply corrective information to the
Company immediately upon the occurrence of any change therein occurring prior to this Subscription of shares;

 

    7 

     

    

 

		m.	The Subscriber expressly represents that: (i) it has such knowledge and experience
in financial and business matters, in general, and in investments of the type described in this Agreement, in particular, and that it
is capable of evaluating the merits, risks and other facets of the subject investment; (ii) its financial condition is such that it has
no need for liquidity with respect to its investment in the First Shares to satisfy any existing or contemplated undertaking or indebtedness;
(iii) it is able to bear the economic risk of its investment in the First Shares for an indefinite period of time, including the risk
of losing all of its investment, and the loss of its entire investment in the First Shares would not materially adversely affect the Subscriber;
and (iv) it has participated in other privately placed investments and has such knowledge and experience in business and financial matters,
has the capacity to protect its own interest in investments like the subject investment, and is capable of evaluating the risks, merits
and other facets of the subject investment;

 

		n.	The Subscriber expressly represents that it has read and understood the Risk Factors
attached to this agreement under Annex 1;

 

		o.	In evaluating the suitability of an investment by the Subscriber in the Company,
the Subscriber, having been delivered a copy of the documents in relation to the subscription of the First Shares (if any), acknowledges
that it has relied solely upon the documents in relation to the Subscription of the First Shares (if any), documents and materials submitted
therewith, and independent investigations made by the Subscriber in making the decision to purchase the First Shares subscribed herein,
and acknowledges that no representations or agreements (oral or written), other than those set forth in the documents in relation to the
subscription of the First Shares (if any), have been made to the Subscriber with respect thereto. The Subscriber acknowledges that the
documents in relation to the subscription of the First Shares (if any) supersede any prior information submitted to him, her or it regarding
the investment opportunity described in such documents;

 

		p.	The Subscriber expressly acknowledges that it may be required to provide current
financial and other information to the Company to enable the Company to determine whether the Subscriber is qualified to purchase the
First Shares;

 

		q.	The Subscriber expressly agrees that the Company may present information contained
herein or furnished by the Subscriber to such persons as it deems appropriate if called upon to verify the information provided;

 

		r.	The
                                            Subscriber on behalf of itself and each of its partners represents that the amounts invested
                                            in the Company pursuant to this Agreement were not and are not directly or indirectly derived
                                            from activities that contravene any laws and regulations of Malta, including anti-money laundering
                                            laws and regulations among other things, the engagement in transactions with, and the provision
                                            of services to, certain foreign countries, territories, entities and individuals. The lists
                                            of OFAC and FATF prohibited countries, territories, persons and entities can be found on
                                            the OFAC website (http://www.treas.gov/ofac) and the FATF website (Documents - Financial
                                            Action Task Force (FATF) (fatf-gafi.org)). In addition, the programs administered by OFAC
                                            (the “OFAC Programs”) prohibit dealing with individuals or entities in
                                            certain countries regardless of whether such individuals or entities appear on the OFAC lists;

 

    8 

     

    

 

		s.	None of: (i) the Subscriber; (ii) any person controlling, controlled by, or under
common control with the Subscriber; or (iii) any person for whom the Subscriber is acting as agent or nominee in connection with this
subscription of shares, is a country, territory, individual or entity named on an OFAC and FATF list, or a person or entity prohibited
under the OFAC Programs. The Subscriber agrees to notify the Company promptly should the Subscriber or any of its controlling shareholders
become aware of any change in the information set forth in these representations. The Subscriber understands and acknowledges and has
adequately informed each of its affiliates that, by law, the Company may be obligated to “freeze the account” of the Subscriber,
either by prohibiting additional subscriptions from the Subscriber, refusing to make distributions and/or segregating the assets in the
account in compliance with Maltese laws and regulations. The Subscriber further acknowledges that the Company may, by written notice,
suspend the redemption rights, if any, of the Subscriber if the Company reasonably deems it necessary to do so to comply with anti-money
laundering regulations applicable to the Company or any of the Company’s other service providers. These individuals include specially
designated nationals, especially designated narcotics traffickers and other parties subject to OFAC and FATF sanctions and embargo programs;
and

 

		t.	None of: (i) the Subscriber; (ii) any person controlling, controlled by, or under
common control with, the Subscriber including each of its partners; or (iii) any person for whom the Subscriber is acting as an agent
or nominee in connection with this investment, is a senior foreign political figure, or any immediate family member or close associate
of a senior political figure.

 

		4.4	No Other Contracts

 

The Subscriber represents and warrants
that neither the execution and delivery of this Agreement by the Subscriber nor the performance of the Subscriber’s duties and obligations
hereunder, shall constitute a default under or a breach of the terms of any other agreement, indenture or contract to which the Subscriber
is a party or by which the Subscriber is bound, nor shall the execution and delivery of this Agreement by the Subscriber or the performance
of the Subscriber’s duties and obligations hereunder give rise to any claim or charge against either the Subscriber, the or the
Company based upon any other contract, indenture or agreement to which the Subscriber is a party or by which the Subscriber is bound.

 

		5.	REPRESENTATION AND WARRANTIES OF THE COMPANY

 

The Company hereby represents and warrants
to the Subscriber as follows:

 

		5.1	Organisation,
Standing - The Company is duly organized, validly existing and in good standing under the laws of Malta and has requisite power and
authority to own, lease and operate its properties and to carry on its business as presently conducted.

 

		5.2	Authorisation and Binding Effect - The Company has all requisite powers
and authority to execute and deliver, and to perform its obligations under this Agreement. The execution and delivery of this Agreement
by the Company of its obligations hereunder have been duly authorized by all necessary action on behalf of the Company, and this Agreement
constitutes a legal, valid and binding agreement of the Company, enforceable against the Company in accordance with its terms, subject
to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar laws affecting creditors’ rights
and remedies generally and subject, as to enforceability, to general principles of equity, regardless of whether enforcement is sought
in a proceeding at law or in equity.

 

    9 

     

    

 

		5.3	Conflict with Laws and Other Instruments - The execution and delivery of
this Agreement, the consummation of the subscription of shares contemplated hereby and the performance by the Company of its obligations
hereunder will not conflict with or result in the violation of or default under any provision of the Company’s organizational documents.
No consent, approval, authorization or order of any court or governmental agency is required in connection with the consummation of the
transaction contemplated by this Agreement.

 

		5.4	Subsidiaries. All of the direct and indirect subsidiaries of the Company
(the “Subsidiaries) and their respective jurisdictions of incorporation are set forth on Schedule 5.4. The Company owns, directly
or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any Liens, and all of the issued
and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free of pre-emptive
and similar rights to subscribe for or purchase securities. “Liens” means a lien, charge, pledge, security interest, encumbrance,
right of first refusal, preemptive right or other restriction.

 

		5.5	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 and no legal or administrative 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.

 

		5.6	Authorization; Enforcement. The Company has the requisite corporate power
and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations
hereunder and thereunder. The execution and delivery of this Agreement 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 shareholders in connection herewith or therewith other than in connection with
the required approvals. This Agreement has been duly executed
by the Company and, when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding obligations
of the Company enforceable against the Company in accordance with its terms.

 

    10 

     

    

 

		5.7	No Conflicts. The execution, delivery and performance by the Company of
this Agreement, the issuance and sale of the Shares 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 memorandum or articles of
association, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an event that with
notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets
of the Company or any Subsidiary, or give to others any rights of termination, amendment, anti-dilution or similar adjustments, acceleration
or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing
a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any property
or asset of the Company or any Subsidiary is bound or affected, or (iii) subject to the required approvals, conflict with or result in
a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority
to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by which any property
or asset of the Company or a Subsidiary is bound or affected;

 

		5.8	Issuance of the Shares. The Shares are duly authorized and, when issued
and paid for, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company.

 

		5.9	Litigation. 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 (collectively,
an “Action”).

 

		5.10	Compliance. Neither the Company nor any Subsidiary: (i) is in default under
or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default
by the Company or any Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it is in default under
or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or
by which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation of any
judgment, decree or order of any court, arbitrator or other governmental authority or (iii) is or has been in violation of any statute,
rule, ordinance or regulation of any governmental authority, including without limitation all local laws relating to taxes, environmental
protection, occupational health and safety, product quality and safety and employment and labour matters.

 

		5.11	Regulatory Permits. The Company and the Subsidiaries possess all certificates,
authorizations, approvals, orders, licenses and permits issued by the appropriate federal, state, local or foreign regulatory authorities,
or by any foreign, federal, state or local governmental or regulatory authority
necessary to conduct their respective businesses, and neither the Company nor any Subsidiary has received any notice of proceedings relating
to the revocation or modification of any permit or license. All licenses and permits owned by the Company and the Subsidiaries in connection
to casino operation, gaming and gambling are set forth in Schedule 5.11.

 

    11 

     

    

 

		5.12	Title to Assets. The Company and the Subsidiaries have good and marketable title
in fee simple to all properties owned by them and good and marketable title in all 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. Schedule 5.12 sets forth all of the assets that the Company
and its Subsidiaries own or have the rights to.

 

		5.13	Intellectual Property. The Company and the Subsidiaries have, or have rights
to use, all patents, patent applications, trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights,
licenses and other intellectual property rights and similar rights necessary or required for use in connection with their respective businesses
(collectively, the “Intellectual Property Rights”). Schedule 5.13 sets forth all of the Intellectual Property Rights
that the Company and its Subsidiaries own or have the rights to use. 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 five (5) years from the date of this Agreement. 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.

 

		5.14	Insurance. The Company and the Subsidiaries are insured by insurers of recognized
financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which the
Company and the Subsidiaries are engaged. 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.

 

		5.15	Solvency. Based on the consolidated financial condition of the Company as
of the date hereof, after giving effect to the receipt by the Company of the proceeds from the sale of the Shares hereunder, (i) the fair
saleable value of the Company’s assets exceeds the amount that will be required to be paid on or in respect of the Company’s
existing debts and other liabilities (including known contingent liabilities) as they mature, (ii) the Company’s assets do not constitute
unreasonably small capital to carry on its business as now conducted and as proposed to be conducted including its capital needs taking
into account the particular capital requirements of the business conducted by the Company, consolidated and projected capital requirements
and capital availability thereof, and (iii) the current cash flow of the Company, together with the proceeds the Company would receive,
were it to liquidate all of its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts
on or in respect of its liabilities when such amounts are required to be paid. The Company does not intend to incur debts beyond its
ability to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt).
The Company has no knowledge of any facts or circumstances which lead it to believe that it will file for reorganization or liquidation
under the bankruptcy or reorganization laws of any jurisdiction within one year from the date hereof. For the avoidance of doubt, such
reorganization does not include the Company’s mergers, acquisitions or other strategic transactions which are not for the primary
purpose of avoiding bankruptcy. Schedule 5.15 sets forth as of the date hereof all outstanding secured and unsecured Indebtedness
of the Company or any Subsidiary, or for which the Company or any Subsidiary has commitments. Company shall convert the Indebtedness to
equity prior or simultaneously to the closing of the Second Shares. For the purposes of this Agreement, “Indebtedness”
means (x) any liabilities for borrowed money or amounts owed in excess of US$50,000 (other than trade accounts payable incurred in the
ordinary course of business), (y) all guaranties, endorsements and other contingent obligations in respect of indebtedness of others,
whether or not the same are or should be reflected in the Company’s consolidated balance sheet (or the notes thereto); and (z) the
present value of any lease payments in excess of US$50,000 due under leases. Neither the Company nor any Subsidiary is in default with
respect to any Indebtedness.

 

    12 

     

    

 

		5.16	Tax Status. The Company and its Subsidiaries, if applicable, each (i) has
made or filed all applicable 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.

 

		5.17	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 applicable money laundering statutes and
applicable rules and regulations thereunder (collectively, the “Money Laundering Laws”), and no action or proceeding
by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any Subsidiary with respect
to the Money Laundering Laws is pending or, to the knowledge of the Company or any Subsidiary, threatened.

 

		5.18	Projections. The financial projections set forth in Schedule 5.18, and
any other statement with respect to projected revenues, net margin and operating income (the “Projections”), were prepared
by the Company based on reasonable and appropriate assumptions for projections of such kind and with respect to the Company, including,
among other things, (i) the Company’s anticipated future performance after the consummation of this offering, (ii) general business
and economic conditions, (iii) competitive forces and (iv) the actions of regulatory agencies and governmental bodies. The Projections
are based upon an analysis of the data available to the Company, after due inquiry and good faith effort, at the time of the Projections,
and the Company believes the information contained in the Projections is accurate. The Company expects that the Projections will be realized.

 

		5.19	Use of Proceeds. The Company shall not use the proceeds from the closing of
the Shares to repay any portion of the Indebtedness as set forth in Schedule 5.15 or any other debt incurred in the future until the closing
of the Second Shares.

 

    13 

     

    

 

		5.20	The Company represents that:

 

		a.	The Company has complied with the applicable tax laws and regulations, has paid
all taxes and has made all withholdings required to be paid or made. The Company has filed all tax returns, forms and declarations it
is required to file, and has paid all taxes it owes except taxes which have not yet accrued or otherwise become due and has duly made
provisions for the payment of the applicable taxes;

 

		b.	no tax authority is asserting against the Company or threatening to assert against
the Company any deficiency or claim for reduction of tax credits, additional taxes, or interest thereon or penalties in connection therewith.

 

		c.	there are no arrangements or undertakings under which the Company (a) is borrowing
or is entitled to borrow any money, (b) is lending or has committed to lend any money, or (c) is a guarantor with respect to the obligations
of any person;

 

		d.	no other document or information exists which has not been disclosed the contents
of which can in any way contradict the documents or information disclosed; and

 

		e.	there are no material elements, facts or data relating to the First Shares in the
Company that are of a substantial importance for a potential transfer of the First Shares and which the Subscriber, having fulfilled due
diligence as a bonus paterfamilias, were not aware of and could be reasonably become aware of, and thereby should reasonably have been
communicated to the Subscriber but were not, and that, if the SUBSCRIBER would have had knowledge thereof, would have made the Subscriber
renounce the Agreement and/or would have had a material impact on the terms and conditions under which the Subscriber would have entered
into the Agreement.

 

		6.	SUBSCRIPTION RESTRICTIONS

 

The Subscriber understands:

 

		a.	that the Subscription of the First Shares shall be registered with the Malta Business
Registry in accordance with Maltese law;

 

		b.	that no resale of the First Shares may be affected unless the resale of such First
Shares is registered in accordance with Maltese law;

 

		c.	that there is no established public, private or other market for the First Shares
acquired by the Subscriber hereunder and it is not anticipated that there will be any public, private or other market for such First Shares
in the foreseeable future;

 

    14 

     

    

 

		d.	that the Company’s organizational documents may contain transfer restrictions,
rights of first refusal and other restrictions and limitations applicable to the First Shares. Any subscription of any, all or a portion
of the First Shares must be in compliance with the terms and provisions thereof.

 

		e.	That the investment is speculative and subject to risk.

 

		f.	That the right to subscribe and/or transfer shares in the Company is restricted in
the manner and to the extent provided in the Articles of Association of the Company

 

		g.	That except as specifically provided for in this Agreement, neither Party may
sell, transfer, pledge or otherwise encumber its First Shares in the Company.

 

		h.	That unless otherwise stipulated in this Agreement, in the event that the Subscriber
wishes to sell or transfer its First Shares, it may do so if it first offers the First Shares to the other Parties (hereinafter referred
to as the “Offer”). The Offer shall state (i) the number of First Shares to be sold or transferred (hereinafter referred
to as the “Offered Shares”), (ii) the proposed transfer price and other terms and, (iii) the proposed transfer date
(which must be a date falling after the fifth (5th) week of the receipt of the Offer by the other Parties).

 

		i.	That a Party’s right of first refusal set out in this clause may be exercised
only if the Party acquires all the Offered Shares.

 

		j.	That if more than one Party wishes to exercise the right of first refusal under
this clause, then the accepting Parties shall share the Offered Shares between them proportionally in accordance with their then current
shareholding in the Company.

 

		k.	That if the offered Parties have not within four (4) weeks from the receipt of
the Offer undertaken to purchase the Offered Shares, the Offer shall be considered to have been rejected by such Party.

 

		l.	That if acceptance from the offered Parties to acquire all the Offered Shares
have been received within the time period stipulated in Clause 6(k) above, the consummation of the acquisition of the Offered Shares shall
take place on the fifth (5th) Business Day after the end of said time period and on the terms and conditions set out in the Offer.

 

		m.	That if (i) acceptance in accordance with the above clauses has not been received, or (ii) the offered Party defaults
in making payment for the Offered Shares, the Party that made the Offer may, within ninety (90) Business Days of receipt of notification
of that fact, transfer all of such Offered Shares to any person or entity that is not directly or indirectly involved in any business
competing with that of any Group Company, provided, however, that such a sale is made on terms no more favourable to the purchaser than
the terms of the Offer. A Party that wants to transfer its shares to a third party in accordance with this clause must send a notice containing
the price and other terms of the transfer to the other Parties at least
two (2) weeks prior to the consummation of such transfer.

 

    15 

     

    

 

		7.	DRAG ALONG

 

		7.1	In the event that a shareholder/s (hereinafter referred to as the “Seller/s”)
holding in excess of fifty per cent (50%) of the shares in the Company (hereinafter referred to as the “Majority Interest”)
wishes to transfer all his/their interest in the shares to a bona fide third party purchaser (hereinafter referred to as the “Proposed
Buyer”), the Seller/s may require all the other shareholders (hereinafter referred to as the “Other Shareholders”)
to sell and transfer all their shares to the Proposed Buyer (hereinafter referred to as the “Drag Along Option”).

 

		7.2	The Seller may exercise the Drag Along Option by giving written notice (hereinafter
referred to as the “Drag Along Notice”) to the Other Shareholders at least thirty (30) Business Days before transferring
the Seller’s shares to the Proposed Buyer.

 

		7.3	The Drag Along Notice shall specify:

		-	that the Other Shareholders are required to transfer all their shares (herein
called the “Called Shares”);

		-	the person to whom the Called Shares are to be transfer red;

		-	the consideration payable for the Called Shares which shall, for each Called Share,
be an amount equal to the price per share offered by the Proposed Buyer for the Seller’s shares; and

		-	the proposed date of transfer of the Called Shares.

 

		7.4	The Drag Along Notice shall lapse if, for any reason, the Sellers have not sold
their shares to the Proposed Buyer within twenty (20) Business Days of serving the Drag Along Notice. The Sellers may serve further Drag
Along Notices following the lapse of any particular Drag Along Notice.

 

		7.5	Completion of sale of the Called Shares shall take place on the Completion Date.
Completion Date means the date proposed for completion of the sale of the Sellers' Shares unless:

		-	All of the Holder of Called Shares and the Sellers agree otherwise in which case
the Completion Date shall be the date agreed in writing by all of the Holder of Called Shares and the Sellers; or

		-	that date is less than thirty (30) Business Days after the date on which the Drag
Along Notice is served, in which case the Completion Date shall be seven (7) Business Days after service of the Drag Along Notice.

 

		7.6	Within twenty (20) Business Days of the Sellers serving a Drag Along Notice on
the Holder of Called Shares, the Holder of Called Shares shall deliver transfer forms for the Called Shares, together with the relevant
share certificates to be held in escrow by a third party as mutually agreed upon by the Parties (herein called the “Third Party”).
On the Completion Date, the Third Party, shall pay the Holder of Called Shares, on behalf of the Proposed Buyer, the amounts they are
due for their shares to the extent that the Proposed Buyer has put
the Third Party in the requisite funds. The Third Party shall hold the amounts due to the Holder of Called Shares in escrow for the Holder
of Called Shares without any obligation to pay interest.

 

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		7.7	To the extent that the Proposed Buyer has not, on the Completion Date, put the
Third Party in funds to pay the consideration due, the Third Party shall be entitled to the return of the transfer forms and share certificates
for the relevant Called Shares to the Holder of Called Shares and the holder of the Called Shares shall have no further rights or obligations
under this clause in respect of their shares.

 

		7.8	If any holder of the Called Shares does not, on completion of the sale of the Called
Shares, execute transfer /s in respect of all of the Called Shares held by it, the defaulting holder of the Called Shares shall be deemed
to have irrevocably appointed any person nominated for the purpose by the Sellers to be his agent and attorney to execute all necessary
transfer /s on his behalf, against receipt by the Third Party of the consideration payable for the Called Shares, to deliver such transfer/s
to the Proposed Buyer (or as they may direct) as the holder thereof. After the Proposed Buyer has been registered as the holder, the validity
of such proceedings shall not be questioned by any such person.

 

		8.	TAG ALONG

 

		8.1	In the event that a shareholder/s (hereinafter referred to as the “Seller/s”)
holding in excess of fifty per cent (50%) of the shares in the Company (hereinafter referred to as the “Majority Interest”)
wishes to transfer all its/his/their interest in the shares to a bona fide third-party purchaser (hereinafter referred to as the “Proposed
Buyer”), the shareholder/s holding less than fifty percent (50%) of the shares in the Company (hereinafter referred to as the
 “Minority Interest”) may require that they join the transaction at the same valuation as the Majority Interest (hereinafter
referred to as the “Tag Along Option”).

 

		8.2	The Minority Interest may exercise the Tag Along Option by giving written notice
(hereinafter referred to as the “Tag Along Notice”) to the Sellers at least thirty (30) Business Days before transferring
ring the Seller’s shares to the Proposed Buyer.

 

		8.3	The Tag Along Notice shall specify:

		-	that the Minority Shareholders require that they join the transaction and transfer
the Minority Interest (herein called the “Tagged Shares”);

		-	Details of the Tagged Shares, including the details of the Shareholders and number
of shares;

		-	a demand for the consideration payable for each Tagged Share to be an amount equal
to the price per share offered by the Proposed Buyer for the Seller’s shares; and

		-	a request for the proposed date of transfer of the Tagged Shares

.

    17 

     

    

 

		8.4	The Tag Along Notice shall lapse if, for any reason, the Sellers have not sold
their shares to the Proposed Buyer within twenty (20) Business Days of receiving the Tag Along Notice. Further Tag Along Notices may be
served following the lapse of a Tag Along Notice.

 

		8.5	Completion of sale of the Shares shall take place on the Completion Date. Completion
Date means the date proposed for completion of the sale of the Sellers' Shares unless:

 

		-	all of the Shareholders and the Sellers agree otherwise in which case the Completion
Date shall be the date agreed in writing by all of the Shareholders and the Sellers; or

		-	that date is less than thirty (30) Business Days after the date on which the Tag
Along Notice is served, in which case the Completion Date shall be seven (7) Business Days after service of the Tag Along Notice.

 

		8.6	Within twenty (20) Business Days of the Minority Interest serves a Tag Along Notice
on the Majority Members, the Minority Interest shall deliver transfer forms for the Tagged Shares, together with the relevant share certificates
to be held in escrow by a third party as mutually agreed upon by the Parties (hereinafter referred to as the “Third Party”).
On the Completion Date, the Third Party, shall pay the Holder of Tagged Shares, on behalf of the Proposed Buyer, the amounts they are
due for their shares to the extent that the Proposed Buyer has put the Third Party in the requisite funds. The Third Party shall hold
the amounts due to the Holder of Tagged Shares in escrow for the Holder of Tagged Shares without any obligation to pay interest.

 

		8.7	To the extent that the Proposed Buyer has not, on the Completion Date, put the
Third Party in funds to pay the consideration due, the Third Party shall be entitled to the return of the transfer forms and share certificates
for the relevant Tagged Shares to the Holder of Tagged Shares and the Holder of Tagged Shares shall have no further rights or obligations
under this clause in respect of their shares.

 

		8.8	If any Holder of the Tagged Shares does not, on completion of the sale of the
Tagged Shares, execute transfer /s in respect of all of the Tagged Shares held by it, the defaulting Holder of Tagged Share shall be deemed
to have irrevocably appointed any person nominated for the purpose by the Sellers to be his agent and attorney to execute all necessary
transfer /s on his behalf, against receipt by the Third Party of the consideration payable for the Tagged Shares, to deliver such transfer
/s to the Proposed Buyer (or as they may direct) as the holder thereof. After the Proposed Buyer has been registered as the holder, the
validity of such proceedings shall not be questioned by any such person.

 

		9.	Unsuitable Person

 

		9.1	An Unsuitable Person in terms of this clause shall mean any person, legal or natural,
who may be deemed to be unsuitable by the Company, as a result of a notification given to the Company by a US State gambling/gaming regulator,
indicating that such person, legal or natural, may or shall, materially jeopardize,
harm or materially delay current or future gambling licences and/or applications of the Company.

 

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		9.2	Any equity interests of the Company owned or controlled by a person, legal or
natural or its Affiliates deemed to be an Unsuitable Person by the Company, following a notification by a US State gambling/gaming regulator
indicating that such person may or shall, materially jeopardize, harm or materially delay current or future gambling licences and/or applications
of the Company, will be subject to mandatory sale and transfer in such number and class(es)/series of equity interests.

 

		9.3	In the event of the notification by the gambling/gaming regulator as described above,
the Company and the Unsuitable person shall enter into an agreement whereby the Company shall be granted the opportunity to purchase the
shares held by the Unsuitable Person.

 

		9.4	If the Company and the Unsuitable Person fail to agree on the terms of agreement,
the Unsuitable Person shall be allowed forty-five (45) Business Days within which he must find an alternative buyer for all or part of
his shares.

 

		9.5	In default of the above provision, the shares will be deposited with a third party
as mutually agreed by the Parties involved, who shall liquidate the shares within ninety (90) Business Days. Should the Parties
fail to agree on the third-party to be appointed, the dispute shall be resolved in line with Clause 15 on Governing Law and Dispute Resolutions,
of this Agreement.

 

		10.	CONTROL OVER THE COMPANY

 

		10.1	For the purposes of this clause, the term ‘Control’ shall mean instances
where the Subscriber has majority shareholding granting majority voting power; the Subscriber has non-passive investment that can trigger
control in particular if same involves ten percent (10%) or more of the Company’s voting rights; the Subscriber has a right to appoint
a director on the Board of Directors of the Company; the Subscriber has access to material non-public information about the Company’s
critical technology; or when the Subscriber has other substantial influence, formal or informal regarding the Company’s critical
technology.

 

		10.2	The Parties hereto shall use their respective reasonable endeavours to ensure
that any required third parties shall, do, execute and perform all such further deeds, documents, assurances, acts and things as any of
the Parties hereto may reasonably require.

 

		10.3	Nothing in this Agreement shall be construed to provide the Subscriber any of the
following:

		-	Control over the Company;

		-	Access to any material non-public technical information in the possession of the
Company;

		-	Membership or observer rights on the Board of Directors or equivalent governing
body of the Company or the right to nominate an individual to a position on the Board of Directors or equivalent governing body of the
Company;

		-	Any involvement, other than through the voting rights of shares, in substantive
decision-making of the Company;

		-	The use, development, acquisition or release of any Company critical technology;

		-	The use, development, acquisition, safekeeping, or release of sensitive personal
data of any person/s maintained or collected by the Company; or

		-	The management, operation, manufacture, or supply of covered investment critical
infrastructure.

 

Provided that to the extent any
governmental authority finds that the Subscriber has acquired any of abovementioned items of this Sub-Clause, the Parties shall work in
good faith to promptly address the issue with the relevant governmental authority.

 

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		11.	CONFIDENTIALITY

 

		11.1	The Parties agree to maintain any or all information and documentation relating
to the subject-matter of this Agreement in strictest confidence and shall not, save as may be necessary for the proper fulfillment of
this Agreement or by joint consent disclose or release same to any other Party or as may be required by any applicable regulatory body.

 

		12.	COSTS

 

		12.1	Each Party shall bear its own costs in relation to the sale and purchase of the
First Shares and to the preparation, execution and carrying into effect of this Agreement and of all other documents referred to in it.

 

		12.2	Any capital gains taxes or other taxes due by the Company, if applicable, in respect
of this transaction in any part of the world shall be borne by the Company.

 

		12.3	Any taxes due by the Subscriber in Malta in respect of this transaction shall
be borne by the Subscriber in terms of Maltese law.

 

		13.	MISCELLANEOUS

 

		13.1	This Agreement constitutes the entire agreement and understanding of the Parties
with respect to the subject matter of this Agreement, and supersedes all prior understandings and agreements, whether oral or written,
between or among the Parties hereto with respect to the subject matter hereof.

 

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		13.2	If any term or provision in this Agreement (or any part of such a term or provision)
shall be held by any Court or Tribunal of competent jurisdiction to be unenforceable, under any enactment or rule of law, such term or
provision or part shall to that extent be deemed severable and not to form part of the Agreement, but the validity and enforceability
of the remainder of the Agreement shall not be affected.

 

		13.3	This Agreement may be amended only by a written agreement executed by each of
the Parties hereto. No amendment of or waiver of, or modification of any obligation under this Agreement will be enforceable unless set
forth in writing signed by the party against which enforcement is sought. Any amendment effected in accordance with this section will
be binding upon all Parties hereto and each of their respective successors and assigns.

 

		13.4	The Parties to this Agreement irrevocably declare that they are satisfied with this
procedure of exchange of the shares and they irrevocably acknowledge that any pre- emption rights in relation thereto are hereby waived.

 

		13.5	The headings contained herein are inserted for convenience of reference only and
are not intended to be part of or to affect the meaning or interpretation of any of the terms of this Agreement for the exchange of shares
contemplated herein.

 

		13.6	Piggy-Back Registrations. If at any time the Company intends to file a registration
statement or prospectus worldwide for a public offering (on a best-efforts, firm- commitment or other basis) (an “Initial Public
Offering”), the Company shall send to the Subscriber a written notice of such intention at least thirty (30) days prior to such
filing and, if within fifteen (15) days after the receipt of such notice, the Subscriber so requests in writing, the Company shall include
in such registration statement or prospectus all or any part (but in no event less than half) of the Shares held by the Subscriber. If
for any reason the Company fails to honour its obligation under this Section, without limiting any other remedies the Subscriber is entitled
to hereunder, the Company (i) shall upon the written request (to be received within five (5) business days of any closing of such public
offering) of the Subscriber electing to sell its Shares to the Company, purchase from the Subscriber those Shares set out in the written
request at a price that is equal to 105% of the price of the securities sold in the Initial Public Offering and (ii) upon the Subscriber’s
request, agrees to use its best efforts to file within thirty (30) days of the receipt of such request, or to assist the Subscriber in
such filing, a registration statement pursuant to the U.S. Securities Act of 1933, as amended, for a distribution of the Shares to the
Subscriber’s stockholders.

 

		13.7	Demand
                                            Registrations. Upon Company’s listing on any exchange worldwide, after six (6)
                                            months from the signing of this Agreement and after receipt of
                                            a written request (a "Demand Registration Request") from the Subscriber stating
                                            its desire and intend to have the Company register all or a portion of the Shares held by
                                            them under such circumstances, the Company shall file as promptly as practicable a registration
                                            statement or prospectus and use its reasonable best efforts to cause shares to be eligible
                                            for resale to the public market.

 

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		13.8	Anti-dilution Adjustment. At any time after the date hereof until a Liquidity
Event of the Company, if the Company shall issue or propose to issue any additional shares of the Company to settle any debt or as part
of restructure of Company’s capital structure, the Subscriber’s Shares shall be increased or adjusted to maintain the same
ownership percentage on a fully-diluted basis as immediately prior to such issuance or restructure.

 

“Liquidity Event” shall
mean an Initial Public Offering or any event that allows the Subscriber to cash out all or part (but in no event less than 50%) of its
ownership shares, including but not limited to acquisition, merger, or other such events.

 

		13.9	If at any time after the issuance of the Second Shares but prior to the Initial
Public Offering, or the Company becoming a reporting company with the Securities and Exchange Commission (SEC), the Company intends to
offer securities (a “Private Placement”), it shall send to the Subscriber a written notice of such intention at least twenty
(20) days prior to such offer including the material terms of the Private Placement. If the Subscriber reasonably believes that upon the
conclusion of the Private Placement it would soon become either an “Investment Company” under the Investment Company Act of
1940, as amended, or a “Passive Foreign Investment Company” under the U.S. Internal Revenue Code, the Subscriber may inform
the Company within ten (10) days after the receipt of such notice of its intention to participate in the Private Placement on substantially
the same terms. If the Subscriber elects to participate in such Private Placement, the Company shall sell in such Private Placement Shares
of the Subscriber that will equal 50% of the sales price of the securities sold in the Private Placement.

 

		13.10	The Company shall use its best efforts to assist the Subscriber to avoid being
deemed as an “Investment Company” or a “Passive Foreign Investment Company”, including but not limited to, permitting
piggy-back registration rights as set forth in Section 13.6 and the rights granted under the Demand Registration Request as set forth
in Section 13.7, distribution or declaration of dividend by the Subscriber to its shareholders or share buyback by the Company.

 

		13.11	CFIUS. Nothing herein shall be construed to provide the Subscriber any of the
following: (i) “control” (as defined in the United States Defense Production Act of 1950 (the “DPA”)) over the
Company; (ii) access to any “material non-public technical information” (as defined in the DPA) in the possession of the Company;
(iii) membership or observer rights on the Board of Directors or equivalent governing body of the Company or the right to nominate an
individual to a position on the Board of Directors or equivalent governing body of the Company; (iv) any involvement, other than through
the voting of shares, in substantive decision-making of the Company regarding (x) the use, development, acquisition or release of any
Company “critical technology” (as defined in the DPA); (y) the use, development, acquisition, safekeeping, or release of “sensitive
personal data” (as defined in the DPA) of U.S. citizens maintained or collected by the Company, or (z) the management, operation,
manufacture, or supply of “covered investment critical infrastructure” (as defined in the DPA). To the extent any governmental
authority finds that Investor has acquired any of items (i)-(iv) of this paragraph, Investor shall promptly address such issue to the
satisfaction of the Company and the relevant governmental authority.

 

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		14.	GOVERNING LAW AND JURISDICTION

 

		14.1	The Parties agree that the validity, interpretation and enforcement of this Agreement,
shall be governed exclusively by the laws applicable in the Republic of Malta.

 

		14.2	In the event of any dispute, controversy or claim arising out of or in connection
with this Agreement, or the breach, termination, interpretation, or validity thereof, the Parties to this Agreement shall make every reasonable
effort to resolve the dispute through good faith negotiation, and if the dispute cannot be resolved through negotiation it shall be decided
exclusively by arbitration in Malta in accordance with Part V (International Arbitration) of the Malta Arbitration Act and the Arbitration
Rules of the Malta Arbitration Centre as at present in force. The appointing authority and administrator shall be the Malta Arbitration
Centre. The number of arbitrators shall be one. The place of arbitration shall be Malta. The language to be used in the arbitral proceedings
shall be English. All information relating to the Arbitration proceedings shall be kept confidential between the Parties and their representatives.

 

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IN WITNESS WHEREOF the Parties hereto have executed this
Agreement for Subscription of Shares on the date hereinbefore set forth.

 

	/s/ Jiancong Huang	 
	Jiancong Huang, CEO	 
	f/obo xSigma Entertainment Limited	 
	Subscriber	 
	 	 
	 	 
	 	 
	/s/ Daniel Eric Graetzer 	 
	Daniel Eric Graetzer	 
	f/obo CG Malta Holding Limited	 
	Company	 

 

    24

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