Document:

Exhibit 4.2

 

NEITHER THIS SECURITY
NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE
OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

COMMON STOCK PURCHASE WARRANT

 

Dthera
Sciences

 

	Warrant Shares: 2,000,000	 	Initial Exercise Date: September
21, 2018

 

THIS COMMON STOCK PURCHASE WARRANT (the
“Warrant”) certifies that, for value received, ICONIC VENTURES, LLC or its assigns (the “Holder”)
is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on
or after September 21, 2018 (the “Initial Exercise Date”) and on or prior to 5:00 p.m. (New York City time)
on September 21, 2023 (the “Termination Date”) but not thereafter, to subscribe for and purchase from Dthera
Sciences, a Nevada corporation (the “Company”), up to 2,000,000 shares (as subject to adjustment hereunder,
the “Warrant Shares”) of Common Stock. The purchase price of one share of Common Stock under this Warrant shall
be equal to the Exercise Price, as defined in Section 2(b).

 

Section 1.Definitions.
Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Securities Purchase Agreement
(the “Purchase Agreement”), dated September 21, 2018, among the Company and the purchasers signatory thereto.

 

Section 2.Exercise.

 

a)                 
Exercise of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part,
at any time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company of
a duly executed facsimile copy or PDF copy submitted by e-mail (or e-mail attachment) of the Notice of Exercise in the form annexed
hereto (the “Notice of Exercise”). Within the earlier of (i) two (2) Trading Days and (ii) the number of Trading
Days comprising the Standard Settlement Period (as defined in Section 2(d)(i) herein) following the date of exercise as aforesaid,
the Holder shall deliver the aggregate Exercise Price for the shares specified in the applicable Notice of Exercise by wire transfer
or cashier’s check drawn on a United States bank unless the cashless exercise procedure specified in Section 2(c) below
is specified in the applicable Notice of Exercise. No ink-original Notice of Exercise shall be required, nor shall any medallion
guarantee (or other type of guarantee or notarization) of any Notice of Exercise be required. Notwithstanding anything herein
to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased
all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender
this Warrant to the Company for cancellation within three (3) Trading Days of the date on which the final Notice of Exercise is
delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant
Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in
an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing
the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of
Exercise within one (1) Business Day of receipt of such notice. In the event of any dispute or discrepancy, the records of the
Holder shall be controlling and determinative in the absence of manifest error. 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 $0.65, subject
to adjustment hereunder (the “Exercise Price”). Notwithstanding the foregoing, the Exercise Price shall reset
in accordance with Section 4.1(q) of the Purchase Agreement.

 

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

 

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

 

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

 

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

 

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

 

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

 

 

 

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

 

Notwithstanding
anything herein to the contrary, on the Termination Date, this Warrant shall be automatically exercised via cashless exercise to
the extent permitted under this Section 2(c).

 

d)                 
Mechanics of Exercise.

 

i.                       
Delivery of Warrant Shares Upon Exercise. The Company shall cause the Warrant Shares purchased hereunder to be transmitted
by the Transfer Agent to the Holder by crediting the account of the Holder’s or its designee’s balance account with
The Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is
then a participant in such system and either (A) there is an effective registration statement permitting the issuance of the Warrant
Shares to or resale of the Warrant Shares by the Holder or (B) the Warrant Shares are eligible for resale by the Holder without
volume or manner-of-sale limitations pursuant to Rule 144 (assuming cashless exercise of the Warrants), and otherwise by physical
delivery of a certificate, registered in the Company’s share register in the name of the Holder or its designee, for the
number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the address specified by the Holder in the
Notice of Exercise by the date that is the earliest of (i) two (2) Trading Days after the delivery to the Company of the Notice
of Exercise, (ii) one (1) Trading Day after delivery of the aggregate Exercise Price to the Company and (iii) the number of Trading
Days comprising the Standard Settlement Period after the delivery to the Company of the Notice of Exercise (such date, the “Warrant
Share Delivery Date”). Upon delivery of the Notice of Exercise, the Holder shall be deemed for all corporate purposes
to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of
the date of delivery of the Warrant Shares, provided that payment of the aggregate Exercise Price (other than in the case of a
cashless exercise) is received within the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the
Standard Settlement Period following delivery of the Notice of Exercise. If the Company fails for any reason to deliver to the
Holder the Warrant Shares subject to a Notice of Exercise by the Warrant Share Delivery Date, the Company shall pay to the Holder,
in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares subject to such exercise (based on the VWAP
of the Common Stock on the date of the applicable Notice of Exercise), $10 per Trading Day (increasing to $20 per Trading Day on
the fifth Trading Day after such liquidated damages begin to accrue) for each Trading Day after such Warrant Share Delivery Date
until such Warrant Shares are delivered or Holder rescinds such exercise; provided that the maximum amount of liquidated
damages that must be paid by the Company pursuant to this Section 2(d)(i) shall be $150 for each $1,000 of Warrant Shares subject
to such exercise (based on the VWAP of the Common Stock on the date of the applicable Notice of Exercise). Nothing
herein shall limit the Holder’s right to pursue actual damages, declare an event of default under this Warrant, or declare
an Event of Default (as defined in the Notes, which are defined in the Purchase Agreement) pursuant to Section 6 of the Notes (as
defined in the Purchase Agreement) for the Company’s failure to deliver Warrant Shares within the period specified herein
and the Holder shall have the right to pursue all remedies available to it hereunder, at law or in equity including, without limitation,
a decree of specific performance and/or injunctive relief. The Company agrees to maintain a transfer agent that is a participant
in the FAST program so long as this Warrant remains outstanding and exercisable. As used herein, “Standard Settlement
Period” means the standard settlement period, expressed in a number of Trading Days, on the Company’s primary Trading
Market with respect to the Common Stock as in effect on the date of delivery of the Notice of Exercise.

 

 

 

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

 

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

 

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

 

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

 

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

 

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

 

 

 

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

 

 

 

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Section 3.Certain
Adjustments.

 

a)                 
Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend
or otherwise makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities
payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company
upon exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines
(including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares or (iv) issues by
reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price
shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares,
if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding
immediately after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted
such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a)
shall become effective immediately after the 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)                 
Subsequent Equity Sales. If the Company or any Subsidiary thereof, as applicable, (i) at any time prior to the date
that the Company Shares are first listed on a national securities exchange (including NYSE MKT, the Nasdaq Capital Market, the
Nasdaq Global Market, the Nasdaq Global Select Market or the New York Stock Exchange) (an “Uplist”), or (ii)
directly or indirectly in connection with the Uplist, shall sell or grant any option to purchase, or sell or grant any right to
reprice, or otherwise dispose of or issue (or announce any offer, sale, grant or any option to purchase or other disposition) any
Common Stock or Common Stock Equivalents, at an effective price per share less than the Exercise Price then in effect (such lower
price, the “Base Share Price” and such issuances collectively, a “Dilutive Issuance”) (it
being understood and agreed that if the holder of the Common Stock or Common Stock Equivalents so issued shall at any time, whether
by operation of purchase price adjustments, reset provisions, floating conversion, exercise or exchange prices or otherwise, or
due to warrants, options or rights per share which are issued in connection with such issuance, be entitled to receive shares of
Common Stock at an effective price per share that is less than the Exercise Price, such issuance shall be deemed to have occurred
for less than the Exercise Price on such date of the Dilutive Issuance at such effective price), then simultaneously with the consummation
of each Dilutive Issuance the Exercise Price shall be reduced and only reduced to the Base Share Price. Such adjustment shall be
made whenever such Common Stock or Common Stock Equivalents are issued; provided that if such Common Stock or Common Stock Equivalents
are issued in tranches such adjustment shall be made at the first closing of such issuance. Notwithstanding the foregoing, no adjustments
shall be made, paid or issued under this Section 3(b) in respect of an Exempt Issuance (as defined below). The Company shall notify
the Holder, in writing, no later than the Trading Day following the issuance or deemed issuance of any Common Stock or Common Stock
Equivalents subject to this Section 3(b), indicating therein the applicable issuance price, or applicable reset price, exchange
price, conversion price and other pricing terms (such notice, the “Dilutive Issuance Notice”). For purposes
of clarification, whether or not the Company provides a Dilutive Issuance Notice pursuant to this Section 3(b), upon the occurrence
of any Dilutive Issuance, the Holder is entitled to receive a number of Warrant Shares based upon the Base Share Price regardless
of whether the Holder accurately refers to the Base Share Price in the Notice of Exercise. “Exempt Issuance”
means the issuance of (a) shares of Common Stock or options to employees, consultants, officers or directors of the Company pursuant
to any stock or option plan duly adopted for such purpose, by a majority of the non-employee members of the Board of Directors
or a majority of the members of a committee of non-employee directors established for such purpose, (b) securities upon the exercise
or exchange of or conversion of any Securities issued hereunder and/or other securities exercisable or exchangeable for or convertible
into shares of Common Stock issued and outstanding on the date of this Agreement, provided that such securities have not been amended
since the date of this Agreement to increase the number of such securities or to decrease the exercise price, exchange price or
conversion price of such securities, (c) securities issued pursuant to acquisitions or strategic transactions approved by a majority
of the disinterested directors of the Company, provided that any such issuance shall only be to a Person (or to the equityholders
of a Person) which is, itself or through its subsidiaries, an operating company or an owner of an asset in a business synergistic
with the business of the Company and shall provide to the Company additional benefits in addition to the investment of funds, but
shall not include a transaction in which the Company is issuing securities primarily for the purpose of raising capital or to an
entity whose primary business is investing in securities.

 

 

 

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

 

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

 

 

 

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

 

 

 

    	 	8	 

     

    

 

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 (excluding treasury shares, if any) issued and outstanding.

 

g)                 
Notice to Holder.

 

i.                       
Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3,
the Company shall promptly deliver to the Holder by facsimile or email a notice setting forth the Exercise Price after such adjustment
and any resulting adjustment to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.
If the Company enters into a Variable Rate Transaction, despite the prohibition thereon in the Purchase Agreement, the Company
shall be deemed to have issued Common Stock or Common Stock Equivalents at the lowest possible conversion or exercise price at
which such securities may be converted or exercised.

 

ii.                       
Notice to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever
form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common
Stock, (C) the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase
any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required
in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale
or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock
is converted into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution,
liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be delivered by facsimile
or email to the Holder at its last facsimile number or email address as it shall appear upon the Warrant Register of the Company,
at least 20 calendar days prior to the applicable record or effective date hereinafter specified (or such shorter period as is
reasonably possible, but not less than ten (10) calendar days, if twenty (20) calendar days is not reasonably possible), a notice
stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants,
or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend,
distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation,
merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that
holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other
property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure
to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate action required
to be specified in such notice. To the extent that any notice provided in this Warrant constitutes, or contains, material, non-public
information regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with the Commission
pursuant to a Current Report on Form 8-K. The Holder shall remain entitled to exercise this Warrant during the period commencing
on the date of such notice to the effective date of the event triggering such notice except as may otherwise be expressly set forth
herein. Notwithstanding the foregoing, proper notice of any reverse stock split of the Company’s Common Stock prior to the
Uplist shall be deemed to have been provided by the Company to the Holder hereunder.

 

 

 

    	 	9	 

     

    

 

h)                 
Exchange Transactions. At any time prior to the Uplist, other than in connection with the Uplist, any Qualified Offering
or any Permitted Cross-Over Financing, neither the Company nor any of its affiliates or Subsidiaries, nor any of its or their respective
officers, employees, directors, agents or other representatives, will, without the prior written consent of the Holder (which consent
may be withheld, delayed or conditioned in the Holder’s sole discretion), directly or indirectly: (a) solicit, initiate,
encourage or accept any other inquiries, proposals or offers from any Person (other than the Holder) relating to any exchange (i)
of any security of the Company or any of its Subsidiaries for any other security of the Company or any of its Subsidiaries; or
(ii) of any indebtedness or other securities of, or claim against, the Company or any of its Subsidiaries relying on the exemption
provided by Section 3(a)(10) of the Securities Act (any such transaction described in clauses (i) or (ii), an “Exchange
Transaction”); (b) enter into, effect, alter, amend, announce or recommend to its stockholders any Exchange Transaction
with any Person (other than the Holder); or (c) participate in any discussions, conversations, negotiations or other communications
with any Person (other than the Holder) regarding any Exchange Transaction, or furnish to any Person (other than the Holder) any
information with respect to any Exchange Transaction, or otherwise cooperate in any way, assist or participate in, facilitate or
encourage any effort or attempt by any Person (other than the Holder) to seek an Exchange Transaction involving the Company or
any of its Subsidiaries. In addition, at any time prior to the Uplist, other than in connection with the Uplist, any Qualified
Offering or any Permitted Cross-Over Financing, neither the Company nor any of its affiliates or Subsidiaries, nor any of its or
their respective officers, employees, directors, agents or other representatives, will, without the prior written consent of the
Holder (which consent may be withheld, delayed or conditioned in the Holder’s sole discretion), directly or indirectly, cooperate
in any way, assist or participate in, facilitate or encourage any effort or attempt by any Person (other than the Holder) to effect
any acquisition of securities or indebtedness of, or claim against, the Company by such Person from an existing holder of such
securities, indebtedness or claim in connection with a proposed exchange of such securities or indebtedness of, or claim against,
the Company (whether pursuant to Section 3(a)(9) or 3(a)(10) of the Securities Act or otherwise) (a “Third Party Exchange
Transfer”). The Company, its affiliates and Subsidiaries, and each of its and their respective officers, employees, directors,
agents or other representatives shall immediately cease and cause to be terminated all existing discussions, conversations, negotiations
and other communications with any Persons (other than the Holder) with respect to any of the foregoing, other than in connection
with the Uplist, any Qualified Financing or any Permitted Cross-Over Financing. The Company shall promptly (and in no event later
than 24 hours after receipt) notify (which notice shall be provided orally and in writing and shall identify the Person making
the inquiry, request, proposal or offer and set forth the material terms thereof) the Holder after receipt of any inquiry, request,
proposal or offer relating to any Exchange Transaction or Third Party Exchange Transfer, and shall promptly (and in no event later
than 24 hours after receipt) provide copies to the Holder of any written inquiries, requests, proposals or offers relating thereto.
The Company agrees that it and its affiliates and Subsidiaries, and each of its and their respective officers, employees, directors,
agents or other representatives Subsidiaries will not enter into any agreement with any Person subsequent to the date hereof which
prohibits the Company from providing any information to the Holder in accordance with this provision. For all purposes of this
Agreement, violations of the restrictions set forth in this Section 3(h) by any Subsidiary or affiliate of the Company, or any
officer, employee, director, agent or other representative of the Company or any of its Subsidiaries or affiliates shall be deemed
a direct breach of this Section 3(h) by the Company.

 

Section 4.Transfer
of Warrant.

 

a)                 
Transferability. Subject to compliance with any applicable securities laws and the conditions set forth in Section
4(d) hereof and to the provisions of Section 4.1 of the Purchase Agreement, this Warrant and all rights hereunder (including, without
limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office
of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto
duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of
such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants
in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument
of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant
shall promptly be cancelled. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender
this Warrant to the Company unless the Holder has assigned this Warrant in full, in which case, the Holder shall surrender this
Warrant to the Company within three (3) Trading Days of the date on which the Holder delivers an assignment form to the Company
assigning this Warrant in full. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for
the purchase of Warrant Shares without having a new Warrant issued.

 

 

 

    	 	10	 

     

    

 

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. All Warrants issued on transfers or exchanges shall be dated
the Initial Exercise 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.

 

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

 

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

 

Section 5.Miscellaneous.

 

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

 

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

 

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

 

d)                 
Authorized Shares.

 

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

 

 

 

    	 	11	 

     

    

 

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

 

iii.                       
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, including, without limitation, pursuant to Section
4.13 of the Purchase Agreement.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

 

    	 	12	 

     

    

 

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

 

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

 

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

 

o)                 
Automatic Exercise on the Termination Date. In the event that, upon the Termination Date, the VWAP on the Trading
Day immediately preceding the Termination Date as determined in accordance with this Warrant above is greater than the Exercise
Price in effect on such date, then this Warrant shall automatically be deemed on and as of such date to be exercised pursuant to
a Cashless Exercise to the extent permitted under Section 2(c) of this Warrant as to all shares (or such other securities) for
which this Warrant shall not previously have been exercised or converted, and the Company shall promptly deliver a certificate
representing the shares (or such other securities) issued upon such exercise to the Holder.

 

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

 

(Signature Page Follows)

 

 

 

    	 	13	 

     

    

 

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.

 

	 	
        Dthera Sciences

	 	 
	 	 
	 	
        By:   /s/ Edward Cox                   

         

        Name: Edward Cox

         

        Title: Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	14	 

     

    

 

EXHIBIT A

 

NOTICE OF EXERCISE

 

To:      DTHERA
SCIENCES

 

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

 

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

 

[_] in lawful
money of the United States; or

 

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

 

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

 

_______________________________

 

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

 

_______________________________

 

_______________________________

 

_______________________________

 

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

 

[SIGNATURE
OF HOLDER]

 

Name of Investing Entity: ______________________________________________________________

 

Signature of Authorized Signatory of Investing
Entity: _______________________________________

 

Name of Authorized Signatory: _________________________________________________________

 

Title of Authorized Signatory: __________________________________________________________

 

Date: ______________________________________________________________________________

 

 

 

 

    	 	15	 

     

    

 

EXHIBIT B

 

ASSIGNMENT
FORM

 

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

 

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

 

 

	Name:

                                                                  
	_____________________________________
	 	(Please Print)

                                                      

	Address:

                                                      
	______________________________________
	 	(Please Print)
	
         

        Phone Number:

         

        Email Address:

         
	
        

         

        ______________________________________

         

        ______________________________________

	 	 
	Dated: _______________ __, ______	 
	 	 
	Holder’s Signature: _________________________	 
	 	 
	Holder’s Address: _________________________	 

 

 

 

 

 

 

 

 

 

 

    	 	16Exhibit 10.1

 

SECURITIES PURCHASE AGREEMENT

 

THIS SECURITIES PURCHASE
AGREEMENT (the “Agreement”) is made as of September 21, 2018, by and among Dthera Sciences, a Nevada corporation
(and together with all of its current and future, direct and/or indirect, wholly owned and/or partially owned Subsidiaries, collectively,
the “Company”), and each purchaser identified on the signature pages hereto (each, including its successors
and assigns, a “Purchaser” and, collectively, the “Purchasers”).

 

RECITALS

 

A.      The
Company and each Purchaser is executing and delivering this Agreement in reliance upon the exemption from securities registration
afforded by Section 4(a)(2) of the Securities Act (as defined below), and/or Rule 506(b) of Regulation D (“Regulation
D”) as promulgated by the United States Securities and Exchange Commission under the Securities Act.

 

B.       Each
Purchaser, severally and not jointly, wishes to purchase, and the Company wishes to sell at the closing, upon the terms and conditions
stated in this Agreement, the Notes (in the form annexed hereto as Exhibit A), the Warrants (in the form annexed hereto
as Exhibit B) and the Commitment Shares, all in the amounts and for the price set forth on Schedule 1 hereto.

 

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

 

ARTICLE 1

DEFINITIONS

 

1.1       
Defined Terms. In addition to terms defined elsewhere in this Agreement or in any supplement, amendment or exhibit
hereto, when used herein, the following terms shall have the following meanings:

 

(a)              
“Alternate Conversion Price” has the meaning set forth in the Notes.

 

(b)              
“Affiliate” means any Person which, directly or indirectly, owns or controls, on an aggregate basis,
a ten percent (10%) or greater interest in any other Person, or which is controlled by or is under common control with any other
Person.

 

(c)              
“Business Day” means any day other than a Saturday or Sunday or any other day on which the Federal Reserve
Bank of New York is closed.

 

(d)              
“Closing” means a time of issuance and sale by the Company of the Notes, the Warrants and the Commitment
Shares to the Purchasers.

 

(e)              
“Closing Date” means a date on which the Notes, the Warrants and the Commitment Shares are purchased
by the Purchasers from the Company.

 

(f)               
“Closing Statement” means the Closing Statement on Annex A attached hereto.

 

(g)              
“Collateral Date” has the meaning set forth in the Security Agreement

 

 

 

    	 	1	 

     

    

 

(h)              
“Commitment Shares” means an aggregate of 1,000,000 shares of Common Stock (as adjusted to give effect
to any stock split or reverse stock split occurring between the date of this Agreement and the issuance thereof) to be issued to
each Purchaser within five (5) Business Days of the Closing in consideration for the Purchaser’s execution and delivery of
this Agreement.

 

(i)                
“Contingent Obligation” means, as to any Person, any direct or indirect liability, contingent or otherwise,
of that Person with respect to any indebtedness, lease, dividend or other obligation of another Person if the primary purpose or
intent of the Person incurring such liability, or the primary effect thereof, is to provide assurance to the obligee of such liability
that such liability will be paid or discharged, or that any agreements relating thereto will be complied with, or that the holders
of such liability will be protected (in whole or in part) against loss with respect thereto.

 

(j)                
“Common Stock” means (i) the Company’s common stock, $0.001 par value per share, and (ii) any capital
stock into which such common stock shall have been changed or any share capital resulting from a reclassification of such common
stock.

 

(k)              
“Common Stock Equivalents” means any capital stock or other security of the Company that is at any time
and under any circumstances directly or indirectly convertible into, exercisable or exchangeable for, and/or which otherwise entitles
the holder thereof to acquire, any capital stock or other security of the Company (including, without limitation, Common Stock).

 

(l)                
“Conversion Date” has the meaning set forth in the Notes.

 

(m)            
“Conversion Shares” means all shares of Common Stock issuable upon conversion of any portion of the Notes
and/or as any other payment due under the Notes including, but not limited to interest and/or otherwise, but solely to the extent
and subject to the Conditions set forth in the Notes, including, but not limited to, shares of Common Stock, Common Stock Equivalents
and shares of Common Stock and/or other securities of the Company issuable upon exercise, exchange and/or conversion of such Common
Stock Equivalents.

 

(n)              
“Dollar(s)” and “$” means lawful money of the United States.

 

(o)              
“Environmental Laws” means any and all laws, rules, orders, regulations, statutes, ordinances, guidelines,
codes, decrees, or other legally enforceable requirements (including, without limitation, common law) of any international authority,
foreign government, the United States, or any state, local, municipal or other governmental authority, regulating, relating to
or imposing liability or standards of conduct concerning protection of the environment or of human health, or employee health and
safety, as has been, is now, or may at any time hereafter be, in effect.

 

(p)              
“Equity Interests” means shares of capital stock, partnership interests, membership interests in a limited
liability company, beneficial interests in a trust or other equity ownership interests in a Person, and any warrants, options or
other rights entitling the holder thereof to purchase or acquire any such Equity Interest.

 

(q)              
“Event of Default” shall have the meaning set forth in the Notes.

 

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

 

(s)               
“GAAP” means generally accepted accounting principles in the United States of America as in effect from
time to time.

 

 

 

    	 	2	 

     

    

 

(t)               
“Indebtedness” means, with respect to any Person at any date, without duplication, (a) all indebtedness
of such Person for borrowed money, (b) all obligations of such Person for the deferred purchase price of property or services
(but excluding trade payables incurred in the ordinary course of business), (c) all obligations of such Person evidenced by
notes, bonds, debentures or other similar instruments, (d) all indebtedness created or arising under any conditional sale
or other title retention agreement with respect to property acquired by such Person (even though the rights and remedies of the
seller or the Purchasers under such agreement in the event of default are limited to repossession or sale of such property), (e) all
capital lease obligations of such Person, (f) all obligations of such Person, contingent or otherwise, as an account party
or applicant under acceptance, letter of credit, surety bond or similar facilities, (g) all obligations of such Person, contingent
or otherwise, to purchase, redeem, retire or otherwise acquire for value any capital stock of such Person, (h) all obligations
for any earn-out consideration, (i) the liquidation value of preferred capital stock of such Person, (j) all guarantee obligations
of such Person in respect of obligations of the kind referred to in clauses (a) through (i) above, (k) all obligations
of the kind referred to in clauses (a) through (i) above secured by (or for which the holder of such obligation has an existing
right, contingent or otherwise, to be secured by) any lien on property (including, without limitation, accounts and contract rights)
owned by such Person, whether or not such Person has assumed or become liable for the payment of such obligation and all obligations
of such Person in respect of hedge agreements; and (l) all Contingent Obligations in respect to indebtedness or obligations of
any Person of the kind referred to in clauses (a)-(k) above. The Indebtedness of any Person shall include, without duplication,
the Indebtedness of any other entity (including any partnership in which such Person is a general partner) to the extent such Person
is liable therefor as a result of such Person’s ownership interest in or other relationship with such entity, except to the
extent the terms of such Indebtedness expressly provide that such Person is not liable therefor.

 

(u)              
“Liens” or “liens” means a lien, mortgage, charge pledge, security interest, encumbrance,
right of first refusal, preemptive right or other restriction, or other clouds on title.

 

(v)              
“Purchaser UCC Filings” shall have the meaning set forth in the definition of “Transaction Documents”
set forth in this Section 1.

 

(w)              “Liabilities”
means all direct or indirect liabilities, Indebtedness and obligations of any kind of Company to the Purchasers, howsoever created,
arising or evidenced, whether now existing or hereafter arising (including those acquired by assignment), absolute or contingent,
due or to become due, primary or secondary, joint or several, whether existing or arising through discount, overdraft, purchase,
direct loan, participation, operation of law, or otherwise, including, but not limited to, pursuant to the Notes, this Agreement
and/or any of the other Transaction Documents, all accrued but unpaid interest on the Notes the principal, any letter of credit,
any standby letter of credit, and/or outside attorneys’ and paralegals’ fees or charges relating to the preparation
of the Transaction Documents and the enforcement of each Purchaser’s rights, remedies and powers under this Agreement, the
Notes and/or the other Transaction Documents.

 

(x)               
“Material Adverse Effect” means a material adverse effect on (a) the business, assets, property,
operations, or condition (financial or otherwise) of the Company, (b) the validity or enforceability of this Agreement or
any of the other Transaction Documents or (c) the rights or remedies of the Purchasers hereunder or thereunder.

 

(y)              
“Notes” means all of the Original Issue Discount Senior Secured Convertible Promissory Notes due six
(6) months from the date of issuance by the Company that are owned by the Purchasers, which, subject to the terms and conditions
set forth in this Agreement, shall be purchased from the Company pursuant to this Agreement; the form of Note is annexed hereto
as Exhibit A and any and all Note(s) issued in exchange, transfer or replacement of the Notes.

 

(z)               
“OFAC” means the United States Department of the Treasury’s Office of Foreign Assets Control.

 

(aa)             
“OFAC Regulations” means the regulations promulgated by OFAC, as amended from time to time.

 

 

 

    	 	3	 

     

    

 

(bb)           
“Permitted Cross-Over Financing” means the consummation of any financing by the Company, including, but
not limited to, a financing pursuant to which the Company offers debt or equity securities, for aggregate gross proceeds not to
exceed $5,000,000.00, or pursuant to which all outstanding Liabilities pursuant to the Notes are required to be repaid in full.

 

(cc)            
“Permitted Indebtedness” means Indebtedness of the Company evidenced by the Notes, this Agreement and/or
any other Transaction Document in favor of the Purchasers, including all Liabilities, and any other Indebtedness of the Company
outstanding as of the date hereof as disclosed to the Purchasers in the Disclosure Schedules (as defined in the Security Agreement).

 

(dd)            
“Permitted Lien” has the meaning set forth in the Security Agreement.

 

(ee)            
“Person” means any individual, sole proprietorship, partnership, joint venture, trust, unincorporated
organization, association, corporation, institution, entity, party or government (whether national, federal, state, county, city,
municipal or otherwise including, without limitation, any instrumentality, division, agency, body or department thereof).

 

(ff)              
“Pledged Securities” has the meaning set forth in the definition of “Transaction Documents”

 

(gg)           
“Principal Market” means the principal Trading Market on which the Common Stock is listed or quoted for
trading on the date in question.

 

(hh)           
“Purchase Price” means the price to be paid by each Purchaser, in cash to purchase such Purchaser’s
Note, Warrants and Commitment Shares.

 

(ii)              
“Purchasers’ Expenses” has the meaning set forth in Section 2.4.

 

(jj)              
“Qualified Offering” has the meaning set forth in the Notes.

 

(kk)            
“Required Reserve Amount” has the meaning set forth in Section 4.1(n).

 

(ll)              
“SEC” or “Commission” means the United States Securities and Exchange Commission.

 

(mm)          
“SEC Reports” has the meaning set forth in Section 3.1(z) hereof.

 

(nn)            
“Securities” means the Notes, the Warrants and the Commitment Shares purchased pursuant to this Agreement
and all Underlying Shares and any securities of the Company issued in replacement, substitution and/or in connection with any exchange,
conversion and/or any other transaction pursuant to which all or any of such securities of the Company to the Purchasers.

 

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

 

(pp)           
“Security Agreement” means the Security Agreement, dated on or about the date hereof, by and among the
Company, the Subsidiaries of the Company, and the Purchasers as hereinafter amended and/or supplemented altogether with all exhibits,
schedules and annexes to such Security Agreement, pursuant to which the Notes and the Subsidiary Guarantee are secured by the Collateral,
which security interest in the Collateral shall be perfected by the Purchasers’ UCC-1, filed with the Secretary of State
of the State of Nevada, to the extent perfectable by the filing of a UCC-1 Financing Statement and such other documents and instruments
related thereto, which Security Agreement is annexed hereto as Exhibit C.

 

 

 

    	 	4	 

     

    

 

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

 

(rr)              
“Solvent” means, with respect to any Person on a particular date, that on such date (a) the fair value
of the property of such Person is greater than the total amount of liabilities, including contingent liabilities, of such Person;
(b) the present fair salable value of the assets of such Person is not less than the amount that will be required to pay the probable
liability of such Person on its debts as they become absolute and matured; (c) such Person does not intend to, and does not believe
that it will, incur debts or liabilities beyond such Person’s ability to pay as such debts and liabilities mature; and (d)
such Person is not engaged in a business or transaction, and is not about to engage in a business or transaction, for which such
Person’s property would constitute and unreasonably small capital. The amount of contingent liabilities (such as litigation,
guaranties and pension plan liabilities) at any time shall be computed as the amount that, in light of all the facts and circumstances
existing at the time, represents the amount that can reasonably be expected to become an actual or matured liability.

 

(ss)            
“Subsidiary” means, with respect to any Person, a corporation, partnership, limited liability company
or other entity of which shares of stock or other ownership interests having ordinary voting power (other than stock or such other
ownership interests having such power only by reason of the happening of a contingency) to elect a majority of the board of directors
or other managers of such corporation, partnership or other entity are at the time owned, or the management of which is otherwise
controlled, directly or indirectly through one or more intermediaries, or both, by such Person all of the Company’s Subsidiaries
are set forth on Schedule 3.1(a) hereto.

 

(tt)              
“Subsidiary Guarantee” means the Subsidiary Guarantee, dated the date hereof, by each Subsidiary in favor
of the Purchasers, in the form of Exhibit D annexed hereto.

 

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

 

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

 

(ww)          
“Transaction Documents” means, collectively, this Agreement, the Notes, the Warrants, the Security Agreement
(in the form annexed hereto as Exhibit C), the Subsidiary Guarantee (in the form annexed hereto as Exhibit D)
and all financing statements (or comparable documents now or hereafter filed in accordance with the UCC or other comparable or
similar laws, rules or regulations) in favor of the Purchasers as secured parties perfecting all Liens the Purchasers have on the
Collateral (which security interests and Liens of the Purchasers shall be senior to all Indebtedness of the Company), all of the
issued and outstanding capital stock of each Subsidiary of the Company (the “Pledged Securities”), which Pledged
Securities are being pledged by the Company to the Purchasers to secure the Company’s obligations to the Purchasers under
the Notes and all documents necessary to transfer the Pledged Securities to the Purchasers as provided in the Security Agreement,
and such other documents, instruments, certificates, supplements, amendments, exhibits and schedules required and/or attached pursuant
to this Agreement and/or any of the above documents, and/or any other document and/or instrument related to the above agreements,
documents and/or instruments, and the transactions hereunder and/or thereunder and/or any other agreement, documents or instruments
required or contemplated hereunder or thereunder, whether now existing or at any time hereafter arising.

 

(xx)             
“Transfer Agent” means Interwest Transfer Company, the current transfer agent of the Company, with a
mailing address of 1981 East Murray Holladay Road, Suite 100, Salt Lake City, UT 84117 and a phone number of 801-272-9294, and
any successor transfer agent of the Company.

 

 

 

    	 	5	 

     

    

 

(yy)            
“UCC” means the Uniform Commercial Code of as in effect from time to time in the State of New York; provided,
however, that, in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection, priority,
or remedies with respect to the Purchasers’ Liens on any Collateral is governed by the Uniform Commercial Code as enacted
and in effect in a jurisdiction other than the State of New York, the term “UCC” shall mean the Uniform Commercial
code as enacted and in effect in such other jurisdiction solely for purposes of the provisions thereof relating to such attachment,
perfection, priority, or remedies.

 

(zz)             
“Underlying Shares” means all Conversion Shares and Warrant Shares.

 

(aaa)           
“Variable Rate Transaction” shall have the meaning set forth in Section 4.02(n) of this Agreement.

 

(bbb)         
“Warrant(s)” means the five (5)-year Common Stock Purchase Warrants of the Company, the form of which
is annexed hereto as Exhibit B.

 

(ccc)           
“Warrant Shares” means all shares of Common Stock issuable upon exercise of the Warrants and/or any other
securities issuable upon exercise of the Warrants.

 

1.2       
Other Definitional Provisions.

 

(a)              
Use of Defined Terms. Unless otherwise specified therein, all terms defined in this Agreement shall have the defined
meanings when used in the other Transaction Documents or any certificate or other document made or delivered pursuant hereto or
thereto.

 

(b)              
Accounting Terms. As used herein and in the other Transaction Documents, and any certificate or other document made
or delivered pursuant hereto or thereto, accounting terms relating to the Company not defined in Section 1.1 and accounting
terms partly defined in Section 1.1, to the extent not defined, shall have the respective meanings given to them under
GAAP (provided that all terms of an accounting or financial nature used herein shall be construed, and all computations
of amounts referred to herein shall be made without giving effect to (i) any election under Accounting Standards Codification 825-10-25
(previously referred to as Statement of Financial Accounting Standards 159) (or any other Accounting Standards Codification or
Financial Accounting Standard having a similar result or effect) to value any Indebtedness or other liabilities of the Company
at “fair value”, as defined therein, and (ii) any treatment of Indebtedness in respect of convertible debt instruments
under Accounting Standards Codification 470-20 (or any other Accounting Standards Codification or Financial Accounting Standard
having a similar result or effect) to value any such Indebtedness in a reduced or bifurcated manner as described therein, and such
Indebtedness shall at all times be valued at the full stated principal amount thereof).

 

(c)              
Construction. The words “hereof”, “herein” and “hereunder”
and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision
of this Agreement, and section, schedule and exhibit references are to this Agreement unless otherwise specified. The meanings
given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms.

 

(d)              
UCC Terms. Terms used in this Agreement that are defined in the UCC shall, unless the context indicates otherwise
or are otherwise defined in this Agreement, have the meanings provided for by the UCC.

 

ARTICLE 2

PURCHASE AND SALE OF NOTES, WARRANTS AND COMMITMENT SHARES

 

2.1      
The Closing. The Closing shall occur at 10:00 am (EDT) on the Closing Date at the offices of Robinson
Brog Leinwand Greene Genovese & Gluck P.C., 875 Third Avenue, 9th Floor, New York, New York 10022, on the first (1st)
Trading Day on which the conditions to the Closing set forth in Article 5 hereof are satisfied or waived in writing
as provided elsewhere herein, or on such other date and time as agreed to by the Company and each Purchaser.

 

 

 

    	 	6	 

     

    

 

2.2      
Conditions to Purchase of Notes and Warrants. Subject to the terms and conditions of this Agreement, each Purchaser
will at the Closing purchase from the Company the Notes and Warrants in the amounts and for the Purchase Price as set forth on
Schedule 1, provided that (i) no Event of Default (or
event that with the passage of time or the giving of notice, or both, would become an Event of Default) shall have occurred or
would result therefrom, other than as set forth on Schedule 2.2; and (ii) the applicable conditions in Article 5
shall have been satisfied.

 

2.3      
Purchase Price and Payment of the Purchase Price for the Notes and Warrants. The Purchase Price for the Notes and
Warrants to be purchased by the Purchasers at the Closing shall be as set forth on Schedule 1 and shall be paid at
the Closing (less all of the Purchasers’ Expenses (as defined below)) by the Purchasers by wire transfer of immediately available
funds to the Company in accordance with the Company’s written wiring instructions, against delivery of the Notes and Warrants.

 

2.4      
Purchasers’ Costs and Expenses. On the Closing Date, subject to the limitations set forth below, all direct
and indirect costs and expenses of the Purchasers related to the negotiation, due diligence, preparation, closing, and all other
items regarding or related to this Agreement and the other Transaction Documents and all of the transactions contemplated herein
and/or therein, including, but not limited to, the legal fees and expenses of the Purchasers’ legal counsel (collectively,
the “Purchasers’ Expenses”), shall be due and payable from the Company to the Purchasers; and the Purchasers
shall subtract from their respective Purchase Price to be paid to the Company for the purchase of the Notes and Warrants, all of
such Purchasers’ Expenses. Although the Purchasers’ Expenses are the sole responsibility and obligation of the Company,
but are being subtracted by the Purchasers from their respective Purchase Price actually paid to the Company, such Purchasers’
Expenses shall constitute part of such Purchase Price and shall not directly and/or indirectly reduce and or result in any set-off
the aggregate principal amount of the Note or result in a set-off and/or reduction of any other funds owed by the Company to the
Purchasers. Notwithstanding anything to the contrary contained herein, the Company’s responsibility for the Purchasers’
Expenses shall not exceed $25,700.00 to be allocated as follows: (i) to the legal fees and expenses of the Purchasers’ legal
counsel in a sum not to exceed $25,000.00 and (ii) to other Purchasers’ Expenses in a sum not to exceed $700.00.

 

2.5      
Commitment Shares. In consideration for each Purchaser’s execution and delivery of this Agreement, at the Closing,
the Company shall deliver to such Purchaser the number of Commitment Shares as set forth on Schedule 1.

 

ARTICLE 3

REPRESENTATIONS AND WARRANTIES; OTHER ITEMS

 

3.1       
Representation and Warranties of the Company. Except as set forth in the Disclosure Schedules, which Disclosure Schedules
shall be deemed a part hereof and shall qualify any representation or otherwise made herein to the extent of the disclosure contained
in the corresponding section of the Disclosure Schedules (but in no event shall qualify any indemnity obligation of the Company
hereunder), the Company (which for purposes of this Section 3.1 means the Company and all of its Subsidiaries) represents
and warrants to each Purchaser that on each Closing Date (unless as of a specific date set forth below):

 

(a)              
Subsidiaries. All of the direct and indirect subsidiaries of the Company and the locations thereof are set forth
on Schedule 3.1(a). Except as set forth on Schedule 3.1(a), the Company owns, directly or indirectly, all of the
capital stock or other equity interests of each Subsidiary free and clear of any Liens, and all of the issued and outstanding shares
of capital stock or other interests of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive
and similar rights to subscribe for or purchase securities. Schedule 3.1(a) sets forth, as of the Closing Date, the jurisdiction
of organization and the location of the Company’s and its subsidiaries’ executive offices and other places of business.

 

(b)              
Organization, Etc. The Company and each of the Subsidiaries is duly organized, validly existing and in good standing
under the laws of the state of their respective organization and are duly qualified and in good standing or has applied for qualification
as a foreign corporation authorized to do business in each jurisdiction where, because of the nature of its activities or properties,
such qualification is required except where the failure to be so qualified would not reasonably be expected to have a Material
Adverse Effect.

 

 

 

    	 	7	 

     

    

 

(c)              
Authorization: No Conflict. The execution, delivery and performance of the Transaction Documents and the transactions
contemplated thereby by the Company, including, but not limited to, the sale and issuance of the Notes, the Warrants and the Commitment
Shares for the Purchase Price, the reservation for issuance of the shares of Common Stock required to be reserved pursuant to the
terms of the Notes and the Warrants and of the sale and issuance the Conversion Shares into which the Notes are convertible and
the Warrant Shares issuable upon exercise of the Warrant (i) are within the Company’s corporate powers, (ii) have been duly
authorized by all necessary action by or on behalf of the Company (and/or its stockholders to the extent required by law), (iii) the
Company has received all necessary and/or required governmental, regulatory and other approvals and consents (if any shall be required),
(iv) do not and shall not contravene or conflict with any provision of, or require any consents under (1) any law, rule, regulation
or ordinance, (2) the Company’s organizational documents; and/or (3) 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 except as would not reasonably be expected
to have a Material Adverse Effect, and (v) do not result in, or require, the creation or imposition of any Lien and/or encumbrance
on any of the Company’s properties or revenues pursuant to any law, rule, regulation or ordinance or otherwise.

 

(d)             
Validity and Binding Nature. The Transaction Documents to which the Company is a party are the legal, valid and binding
obligations of the Company, enforceable against the Company in accordance with their respective terms, except as enforceability
may be limited by bankruptcy, insolvency, reorganization and other similar laws of general application affecting the rights and
remedies of creditors and by general equitable principles (whether enforcement is sought by proceedings in equity or at law).

 

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

 

(f)               
No Violations of Laws. The Company is not in violation of any law, ordinance, rule, regulation, judgment, decree
or order of any federal, state or local governmental body or court and/or regulatory or self-regulatory body, except as would not
reasonably be expected to have a Material Adverse Effect.

 

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

 

(h)              
Employee Benefit Plans. The term “Plan” means an “employee pension benefit plan” (as
defined in Section 3 of Employee Retirement Income Security Act of 1974, as amended from time to time (“ERISA”))
which is or has been established or maintained, or to which contributions are or have been made, by the Company. Each plan and/or
employee benefit plan (as defined in Section 3(3) of ERISA), if any, maintained by the Company complies in all material respects
with all applicable requirements of law and regulations and all payments and contributions required to be made with respect to
such plans have been timely made.

 

 

 

    	 	8	 

     

    

 

(i)                
Federal Laws and Regulations. The Company is not (i) an “investment company” or a company “controlled”,
whether directly or indirectly, by an “investment company”, within the meaning of the Investment Company Act of 1940,
as amended; or (ii) engaged principally, or as one of its important activities, in the business of extending credit for the purpose
of purchasing or carrying margin stock (within the meaning of Regulation U of the Board of Governors of the Federal Reserve System).

 

(j)                
Fiscal Year. The fiscal year of the Company ends on December 31 of each year.

 

(k)              
Officers and Ownership. As of the date hereof, the Persons set forth in the SEC Reports (i) hold the respective office
or offices, position or positions (including director positions if a director), in the Company and (ii) except as may be updated
by a subsequent filing of Form 4 or 5, own the percentage of each and every class of issued and outstanding capital stock, other
ownership interests and/or securities of the Company and the voting power over said capital stock, other ownership interests and/or
securities of the Company.

 

(l)                
Rule 506(d) Bad Actor Disqualification Representations and Covenants.

 

(i)          
No Disqualification Events. Neither the Company, nor any of its predecessors, affiliates, any manager, executive
officer, other officer of the Company participating in the offering, any beneficial owner (as that term is defined in Rule 13d-3
under the Exchange Act) of 20% or more of the Company’s outstanding voting equity securities, calculated on the basis of
voting power, nor any promoter (as that term is defined in Rule 405 under the Securities Act) connected with the Company in any
capacity as of the date of this Agreement and on the Closing Date (each, a “Company Covered Person” and, together,
“Company Covered Persons”) is subject to any of the “Bad Actor” disqualifications described in Rule
506(d)(1)(i) to (viii) under the Securities Act (a “Disqualification Event”), except for a Disqualification
Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine (A) the identity of each
person that is a Company Covered Person; and (B) whether any Company Covered Person is subject to a Disqualification Event.
The Company will comply with its disclosure obligations under Rule 506(e).

 

(ii)          
Other Covered Persons. The Company is not aware of any person (other than any Company Covered Person) who has been
or will be paid (directly or indirectly) remuneration in connection with the purchase and sale of the Notes, the Warrants and/or
the Commitment Shares who is subject to a Disqualification Event (each, an “Other Covered Person”).

 

(iii)        
Reasonable Notification Procedures. With respect to each Company Covered Person, the Company has established procedures
reasonably designed to ensure that the Company receives notice from each such Company Covered Person of (A) any Disqualification
Event relating to that Company Covered Person, and (B) any event that would, with the passage of time, become a Disqualification
Event relating to that Company Covered Person; in each case occurring up to and including the Closing Date.

 

(iv)        
Notice of Disqualification Events. The Company will notify the Purchasers immediately in writing upon becoming aware
of (A) any Disqualification Event relating to any Company Covered Person and (B) any event that would, with the passage of time,
become a Disqualification Event relating to any Company Covered Person and/or Other Covered Person.

 

(m)             
Accuracy of Information, etc. No statement or information contained in this Agreement, the SEC Reports, any other
Transaction Document or any other document, certificate or statement furnished to the Purchasers by or on behalf of the Company
in writing for use in connection with the transactions contemplated by this Agreement and/or the other Transaction Documents contained,
as of the date such statement, information, document or certificate was made or furnished, as the case may be, any untrue statement
of a material fact or omitted to state a material fact necessary to make the statements contained herein or therein, taken as a
whole, not materially misleading. There is no fact known to the Company that would reasonably be expected to have a Material Adverse
Effect that has not been expressly disclosed herein, in the other Transaction Documents, or in any other documents, certificates
and statements furnished to the Purchasers for use in connection with the transactions contemplated hereby and by the other Documents.

 

 

 

    	 	9	 

     

    

 

(n)              
Solvency. The Company is Solvent; and shall be Solvent immediately prior to, and immediately following the Closing
Date, after giving effect to the incurrence of all Indebtedness and all other obligations being incurred by the Company pursuant
hereto and the other Transaction Documents including, but not limited to, all Liabilities and pursuant to the other Transaction
Documents and the use of the Purchase Price as provided elsewhere herein.

 

(o)              
Affiliate Transactions. Other than as disclosed in the SEC Reports, the Company has not purchased, acquired or leased
any property from, or sold, transferred or leased any property to, or entered into any other transaction with (i) any Affiliate,
(ii) any officer, director, manager, stockholder or member of the Company or any Affiliate of any thereof, or (iii) any member
of the immediate family of any of the foregoing, except on terms comparable to the terms that would prevail in an arms-length transaction
between unaffiliated third parties.

 

(p)              
Intellectual Property. The Company has, or has rights to use, all patents, patent applications, trademarks, trademark
applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights
and similar rights as described in the SEC Reports as necessary or required for use in connection with its business and which the
failure to so have would reasonably be expected to have a Material Adverse Effect (collectively, the “Intellectual Property
Rights”). The Company has not received a notice (written or otherwise) that any material Intellectual Property Right
has expired, terminated or been abandoned, or is expected to expire or terminate or be abandoned. The Company has not received,
since the date of the latest audited financial statements included within the SEC Reports, a written notice of a claim or otherwise
has any knowledge that the Intellectual Property Rights violate or infringe upon the rights of any Person, except as would not
have or reasonably be expected to have a Material Adverse Effect. To the knowledge of the Company, all such Intellectual Property
Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights. The
Company has taken reasonable security measures to protect the secrecy, confidentiality and value of all of its intellectual property,
except where failure to do so would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
All Intellectual Property Rights of the Company are set forth in the SEC Reports.

 

(q)              
Variable Rate Transactions. Other than in connection with the transactions contemplated hereby, the Company has not
directly and/or indirectly entered into, any agreement that (except for the transactions contemplated hereby) could constitute
a, nor has the Company any intention and/or obligation to enter into any, Variable Rate Transaction.

 

(r)               
USA Patriot Act. The Company is in compliance, in all material respects, with (i) the Trading with the Enemy Act,
as amended, and each of the foreign assets control regulations of the United States Treasury Department (31 C.F.R., Subtitle B,
Chapter V, as amended) and any other enabling legislation or executive order relating thereto, and (ii) the USA Patriot Act (Title
III of Pub. L. 107-56, signed into law on October 26, 2001) (the “Act”). No part of the proceeds of the Notes
will be used, directly or indirectly, for any payments to any governmental official or employee, political party, official of a
political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct
business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended.

 

(s)               
Foreign Asset Control Laws. The Company is not a Person named on a list published by OFAC or a Person with whom dealings
are prohibited under any OFAC Regulations.

 

(t)                
Indebtedness; Liens, Etc. Except for Permitted Indebtedness and Permitted Liens, the Company has no Indebtedness
nor any Liens other than as disclosed on Schedule 3.1(t).

 

(u)              
Authorization; Enforcement. All corporate action on the part of the Company, its officers, directors and stockholders
necessary for the authorization, execution and delivery of the Transaction Documents and the performance of all obligations of
the Company under the Transaction Documents and have been taken on or prior to the date hereof. Each of the Transaction Documents
has been duly executed by the Company and, when delivered in accordance with the terms hereof and thereof, will constitute the
valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except: (i) as limited
by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of
creditors’ rights generally, (ii) as limited by general equitable principles regardless of whether such enforcement is considered
in a proceeding in equity or at law, (iii) as limited by laws relating to the availability of specific performance, injunctive
relief or other equitable remedies and (iv) insofar as indemnification and contribution provisions may be limited by applicable
law.

 

 

 

    	 	10	 

     

    

 

(v)              
Valid Issuance of Securities. Each of the Notes and the Warrants has been duly authorized and, when issued and paid
for in accordance with this Agreement, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens
and all restrictions on transfer other than those expressly imposed by the federal securities laws and vest in the Purchasers full
and sole title and power to the Notes and the Warrants purchased hereby by the Purchasers, free and clear of all Liens, and restrictions
on transfer other than those imposed by the federal securities laws. All Commitment Shares, when issued pursuant to the terms hereof
and all Conversion Shares, when issued pursuant to conversion of the Notes, and all Warrant Shares, when issued pursuant to any
exercise of the Warrants, will be duly and validly issued, fully paid and nonassessable, will be free and clear of all Liens and
vest in the holder full and sole title and power to such securities. The Company has reserved from its duly authorized unissued
Common Stock, the Required Reserve Amount, which Required Reserve Amount shall be continuously determined by the Company to ensure
that the Required Reserve Amount is in reserve with the Transfer Agent at all times. The Notes, the Warrants, the Commitment Shares,
the Conversion Shares, and the Warrant Shares shall sometimes be collectively referred to as the “Securities.”

 

(w)             
Offering. The offer and sale of the Notes, the Warrants and the Commitment Shares, as contemplated by this Agreement,
are exempt from the registration requirements of the Securities Act, and the qualification or registration requirements of state
securities laws or other applicable blue sky laws. Neither the Company nor any authorized agent acting on its behalf will take
any action hereafter that would cause the loss of such exemptions.

 

(x)              
Capitalization and Voting Rights. The authorized capital stock of the Company and all securities of the Company issued
and outstanding are set forth in the SEC Reports as of the dates reflected therein. All of the outstanding shares of Common Stock
and other securities of the Company have been duly authorized and validly issued, and are fully paid and nonassessable. Except
as set forth in the SEC Reports, there are no agreements or arrangements under which the Company is obligated to register the sale
of any of the Company’s securities under the Securities Act. Except as set forth in the SEC Reports, no shares of Common
Stock and/or other securities of the Company are entitled to preemptive rights and there are no outstanding debt securities and
no contracts, commitments, understandings, or arrangements by which the Company is or may become bound to issue additional shares
of the capital stock and/or other securities of the Company or options, warrants, scrip, rights to subscribe to, calls or commitments
of any character whatsoever relating to, or securities or rights convertible into or exchangeable for, any shares of capital stock
of the Company other than those issued or granted in the ordinary course of business pursuant to the Company’s equity incentive
and/or compensatory plans or arrangements. Except for customary transfer restrictions contained in agreements entered into by the
Company to sell restricted securities and/or as set forth in the SEC Reports, the Company is not a party to, and it has no knowledge
of, any agreement restricting the voting or transfer of any shares of the capital stock and/or other securities of the Company.
Except as set forth in the SEC Reports, the offer and sale of all capital stock, convertible or exchangeable securities, rights,
warrants, options and/or any other securities of the Company when any such securities of the Company were issued complied with
all applicable federal and state securities laws, and no current and/or prior holder of any securities of the Company has any right
of rescission or damages or any “put” or similar right with respect thereto that would reasonably be expected to have
a Material Adverse Effect. Except as set forth in the SEC Reports, there are no securities or instruments of the Company containing
anti-dilution or similar provisions that will be triggered by the issuance and/or sale of the Securities and/or the consummation
of the transactions described herein or in any of the other Transaction Documents.

 

(y)              
SEC Reports. The Company is current in its filing obligations under the Exchange Act, including, without limitation,
its filings of Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K
filed since September 30, 2017 (collectively, the “SEC Reports”). The SEC Reports, at the time filed with the
SEC, did not contain any untrue statement of a material fact or omit to state any fact necessary to make any statement therein
not misleading. All financial statements included in the SEC Reports (the “Financial Statements”) have been
prepared, if so required, in accordance with GAAP applied on a consistent basis throughout the periods indicated and with each
other, except that unaudited Financial Statements may not contain all footnotes required by generally accepted accounting principles.
The Financial Statements fairly present, in all material respects, the financial condition and operating results of the Company
as of the dates, and for the periods, indicated therein, subject in the case of unaudited Financial Statements to normal year-end
audit adjustments.

 

(z)              
Sarbanes-Oxley Act. The Company is in compliance with any and all applicable requirements of the Sarbanes-Oxley Act
of 2002 that are effective as of the date hereof, and any and all applicable rules and regulations promulgated by the SEC thereunder
that are effective as of the date hereof.

 

 

 

    	 	11	 

     

    

 

(aa)            
Arbitration, Absence of Litigation. Other than as disclosed in the SEC Reports, there is no action, suit, proceeding,
inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending
or, to the knowledge of the Company, threatened against or affecting the Company, the Common Stock or any of the Company’s
officers or directors or 5% or greater stockholders in their capacities as such.

 

(bb)            
Material Changes; Undisclosed Events, Liabilities or Developments. Except as provided in Schedule 3.1(bb),
since the date of the latest audited Financial Statements included in the SEC Reports, except as specifically disclosed in a subsequent
SEC Report filed with the SEC prior to the date hereof: (i) there has been no event, occurrence or development that has had or
that would reasonably be expected to have a Material Adverse Effect, (ii) the Company has not incurred any liabilities (contingent
or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past
practice and (B) liabilities not required to be reflected in the Company’s Financial Statements pursuant to GAAP or disclosed
in SEC Reports pursuant to SEC rules and/or regulations, (iii) the Company has not altered its method of accounting, (iv) the Company
has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made
any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued any equity securities to
any officer, director or affiliate, except pursuant to existing Company stock option plans. The Company does not have pending before
the Commission any request for confidential treatment of information. Except for the issuance of the Securities contemplated by
this Agreement, no event, liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected
to occur or exist with respect to the Company or its business, properties, operations, assets or financial condition that would
be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made
that has not been publicly disclosed at least one Trading Day prior to the date that this representation is made.

 

(cc)           
Disclosure. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction
Documents, the Company confirms that neither it nor any other Person acting on its behalf has provided any Purchaser or its respective
agents or counsel with any information that constitutes material, non-public information. The Company understands that each Purchaser
may rely on the Transaction Documents, the information included therein, including, but not limited to, the foregoing representation
and the SEC Reports in purchasing the Notes, the Warrants and the Commitment Shares. All of the disclosure furnished by or on behalf
of the Company to the Purchasers in the Transaction Documents and/or in the SEC Reports, regarding, among other matters relating
to the Company, its business and the transactions contemplated in the Transaction Documents, is true and correct in all material
respects as of the date made and does not contain any untrue statement of a material fact or omit to state any material fact necessary
in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. The Company
acknowledges and agrees that none of the Purchasers does make nor has made any representations or warranties with respect to the
transactions contemplated in the Transaction Documents other than those specifically set forth in Section 3.2 hereof.

 

(dd)            No
Integrated Offering. Assuming the accuracy of the representations and warranties set forth in Section 3.2, neither
the Company, nor any of its affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers
or sales of any security or solicited any offers to buy any security, under circumstances that would cause the issuance and/or
sale of the Securities to be integrated with prior offerings of securities by the Company for purposes of (i) the Securities Act
that would require the registration of any such Securities and/or any other securities of the Company under the Securities Act,
or (ii) any stockholder-approval provisions of any Trading Market on which any of the securities of the Company are listed, eligible
for quotation and/or designated.

 

(ee)            
Bankruptcy Status; Indebtedness. The Company has no current intention or expectation to file for reorganization or
liquidation under the bankruptcy or reorganization laws of any jurisdiction within one year from the applicable representation
date. All outstanding material secured and unsecured Indebtedness (as defined below) of the Company, or for which the Company has
commitments, is set forth in the SEC Reports.

 

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

 

 

 

    	 	12	 

     

    

 

(gg)            
No Consents, Etc. No direct or indirect consent, approval, authorization or similar item is required to be obtained
by the Company to enter into this Agreement, the Notes, the Warrants and/or the other Transaction Documents to which it is a party
and to perform or undertake any of the transactions contemplated pursuant to this Agreement, the Notes, the Warrants and/or any
of the other Transaction Documents to which it is a party.

 

(hh)           
Listing of Securities. All Underlying Shares have been approved, if so required, for listing or quotation on the
Trading Market, subject only to notice of issuance.

 

(ii)              
Dilutive Effect. The Company understands and acknowledges that the number of Conversion Shares issuable upon conversion
of the Notes and the number of Warrant Shares issuable upon exercise of the Warrants, in each case, pursuant to the terms thereof,
will increase in certain circumstances. The Company further acknowledges that its obligations to issue Conversion Shares pursuant
to the terms of the Notes in accordance with this Agreement and the Notes and to issue Warrant Shares upon exercise of the Warrants
in accordance with this Agreement and the Warrants are, in each case, absolute and unconditional regardless of the dilutive effect
that any such issuances may have on the percentage ownership interests of other stockholders of the Company.

 

(jj)               
Application of Takeover Protections; Rights Agreement.  The Company and its board of directors have taken all
necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including
any distribution under a rights agreement) or other similar anti-takeover provisions under the Company’s articles of incorporation,
as amended, or the laws of the jurisdiction of its formation that are or could become applicable to the Purchasers as a result
of the transactions contemplated by this Agreement and/or the other Transaction Documents, including, without limitation, the Company’s
issuance of the Securities and each Purchaser’s ownership of the Securities. The Company has not adopted a stockholder rights
plan or similar arrangement relating to accumulations of beneficial ownership of Common Stock or a change in control of the Company.

 

(kk)            
Manipulation of Price. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly
or indirectly, any action designed to cause or to result, or that could reasonably be expected to cause or result, in the stabilization
or manipulation of the price of any security of the Company to facilitate the sale or resale of any of the Securities, (ii) sold,
bid for, purchased, or paid any compensation for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay
to any person any compensation for soliciting another to purchase any other securities of the Company.

 

(ll)              
DTC Eligible. The Common Stock is DTC eligible and DTC has not placed a “freeze” or a “chill”
on the Common Stock and the Company has no reason to believe that DTC has any intention to make the Common Stock not DTC eligible,
or place a “freeze” or “chill” on the Common Stock.

 

(mm)          
No Delisting from Trading Market. The Common Stock is eligible for quotation on the Principal Market and the Company
has no reason to believe that the Principal Market has any intention of delisting the Common Stock from the Principal Market.

 

(nn)            
No General Solicitation.  Neither the Company, nor any of its affiliates, nor, to the knowledge of the Company,
any Person acting on its behalf, has engaged in any form of general solicitation or general advertising (within the meaning of
Regulation D) in connection with the offer or sale of the Securities. 

 

 

 

    	 	13	 

     

    

 

(oo)           
Acknowledgment Regarding each Purchaser’s Purchase of Securities.  The Company acknowledges and agrees
that each Purchaser is acting solely in the capacity of an arm’s length purchaser with respect to the other Transaction Documents
and the transactions contemplated hereby and thereby and that such Purchaser is not (i) an officer or director of the Company,
(ii) an Affiliate of the Company or (iii) to the knowledge of the Company, a “beneficial owner” of more than
10% of the shares of Common Stock (as defined for purposes of Rule 13d-3 of the Exchange Act.  The Company further acknowledges
that each Purchaser is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect
to the Transaction Documents and the transactions contemplated hereby and thereby, and any advice given by such Purchaser or any
of its representatives or agents in connection with the Transaction Documents and the transactions contemplated hereby and thereby
is merely incidental to such Purchaser’s purchase of the Securities.  The Company further represents to each Purchaser
that the Company’s decision to enter into the Transaction Documents has been based solely on the independent evaluation by
the Company and its representatives.

 

(pp)           
Placement Agent. The Company has engaged A.G.P. / Alliance Global Partners
Corp. to serve as placement agent in connection with the sale of the Securities to the Purchasers.

 

(qq)           
Off-Balance Sheet Arrangements.  There is no transaction, arrangement, or other relationship between the Company
and an unconsolidated or other off-balance sheet entity that is required to be disclosed by the Company in its Exchange Act filings
and is not so disclosed or that otherwise would be reasonably likely to have a Material Adverse Effect.

 

(rr)             
Subsidiary Rights.  The Company has the unrestricted right to vote, and (subject to limitations imposed by applicable
law) to receive dividends and distributions on, all capital securities of its Subsidiaries as owned by the Company or any Subsidiary.

 

(ss)            
Internal Accounting and Disclosure Controls.  Other than as disclosed in the SEC Reports, the Company maintains
a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in
accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with generally accepted accounting principles and to maintain asset and liability
accountability, (iii) access to assets or incurrence of liabilities is permitted only in accordance with management’s
general or specific authorization and (iv) the recorded accountability for assets and liabilities is compared with the existing
assets and liabilities at reasonable intervals and appropriate action is taken with respect to any difference.  Other than
as disclosed in the SEC Reports, the Company maintains disclosure controls and procedures (as such term is defined in Rule 13a-15
under the Exchange Act) that are effective in ensuring that information required to be disclosed by the Company in the reports
that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified
in the rules and forms of the SEC, including, without limitation, controls and procedures designed to ensure that information
required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated
to the Company’s management, including its principal executive officer or officers and its principal financial officer or
officers, as appropriate, to allow timely decisions regarding required disclosure.  Other than as disclosed in the SEC Reports,
during the twelve months prior to a Closing Date, the Company has not received any notice or correspondence from any accountant
relating to any material weakness in any part of the system of internal accounting controls of the Company.

 

3.2       
Representation and Warranties of Each Purchaser. Each Purchaser, severally and not jointly, hereby represents and
warrants as of the date hereof and as of the Closing Date to the Company as follows:

 

(a)               
Authorization.  Such Purchaser has full power and authority to enter into this Agreement, to perform its obligations
hereunder and to consummate the transactions contemplated hereby and has taken all action necessary to authorize the execution
and delivery of this Agreement, the performance of its obligations hereunder and thereunder and the consummation of the transactions
contemplated hereby and thereby.

 

(b)              
Accredited Investor Status; Investment Experience. Such Purchaser is an “accredited investor” as that
term is defined in Rule 501(a) of Regulation D.

 

 

 

    	 	14	 

     

    

 

(c)              
Reliance on Exemptions. Such Purchaser understands that the Securities are being offered and sold to it in reliance
on specific exemptions from the registration requirements of United States federal and state securities laws and that the Company
is relying in part upon the truth and accuracy of, and such Purchaser’s compliance with, the representations, warranties,
agreements, acknowledgments and understandings of such Purchaser set forth herein in order to determine the availability of such
exemptions and the eligibility of such Purchaser to acquire the Securities.

 

(d)              
Information. Such Purchaser has been furnished with all materials relating to the business, finances and operations
of the Company and materials relating to the offer and sale of the Securities, which have been requested by such Purchaser. Such
Purchaser has been afforded the opportunity to ask questions of the Company. Such Purchaser understands that its investment in
the Securities involves a high degree of risk. Such Purchaser has sought such accounting, legal and tax advice as it has considered
necessary to make an informed investment decision with respect to its acquisition of its Securities. The Purchaser is relying solely
on their own accounting, legal and tax advisors, and not on any statements of the Company or any of its agents or representatives,
for such accounting, legal and tax advice with respect to its acquisition of the Securities.

 

(e)              
No Governmental Review. Such Purchaser understands that no United States federal or state agency or any other government
or governmental agency has passed on or made any recommendation or endorsement of the Securities, or the fairness or suitability
of the investment in the Securities, nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

 

(f)               
Validity; Enforcement; No Conflicts. This Agreement and each Transaction Document to which such Purchaser is a party
have been duly and validly authorized, executed and delivered on behalf of such Purchaser and shall constitute the legal, valid
and binding obligations of such Purchaser enforceable against such Purchaser in accordance with their respective terms, except
as such enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors' rights
and remedies.

 

(g)              
Organization and Standing. Such Purchaser is duly organized, validly existing and in good standing under the laws
of the jurisdiction in which it was formed.

 

(h)              
Brokers or Finders. Other than as disclosed on Schedule 3.2(h), such Purchaser represents and warrants,
to the best of its knowledge, that no finder, broker, agent, financial advisor or other intermediary, nor any purchaser representative
or any broker-dealer acting as a broker, are entitled to any compensation in connection with the transactions contemplated by this
Agreement or the transactions contemplated hereby.

 

(i)                
Ability to Perform. There are no actions, suits, proceedings or investigations pending against such Purchaser or
such Purchaser's assets before any court or governmental agency (nor is there any threat thereof) that would impair in any way
such Purchaser's ability to enter into and fully perform its commitments and obligations under this Agreement or the transactions
contemplated hereby.

 

(j)                
Certain Transactions and Confidentiality. Each Purchaser has not directly or indirectly, nor has any Person acting
on behalf of or pursuant to any understanding with such Purchaser, executed any purchases or sales, including Short Sales, of the
securities of the Company during the period commencing as of the time that such Purchaser first received a term sheet (written
or oral) from the Company or any other Person representing the Company setting forth the material terms of the transactions contemplated
hereunder and ending immediately prior to the execution hereof. Notwithstanding the foregoing, in the case of a Purchaser that
is a multi-managed investment vehicle, whereby separate portfolio managers manage separate portions of such Purchaser’s assets
and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing other portions
of such Purchaser’s assets, the representation set forth above shall only apply with respect to the portion of assets managed
by the portfolio manager that made the investment decision to purchase the Securities covered by this Agreement. Other than to
other Persons party to this Agreement or to such Purchaser's representatives, including, without limitation, its officers, directors,
partners, legal and other advisors, employees, agents and Affiliates, such Purchaser has maintained the confidentiality of all
disclosures made to it in connection with this transaction (including the existence and terms of this transaction). Notwithstanding
the foregoing, for avoidance of doubt, nothing contained herein shall constitute a representation or warranty, or preclude any
actions, with respect to the identification of the availability of, or securing of, available shares to borrow in order to effect
Short Sales or similar transactions in the future.

 

 

 

    	 	15	 

     

    

 

(k)              
Transfer or Resale. Such Purchaser understands that (i) the Securities have not been and are not being registered
under the Securities Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (A)
subsequently registered thereunder, (B) such Purchaser shall have delivered to the Company an opinion of counsel, in a form reasonably
acceptable to the Company, to the effect that such Securities to be sold, assigned or transferred may be sold, assigned or transferred
pursuant to an exemption from such registration, or (C) such Purchaser provides the Company with reasonable assurance that such
Securities can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A promulgated under the Securities Act, as amended,
(or a successor rule thereto) (collectively, “Rule 144”); (ii) any sale of the Securities made in reliance on Rule
144 may be made only in accordance with the terms of Rule 144 and, further, if Rule 144 is not applicable, any resale of the Securities
under circumstances in which the seller (or the Person) through whom the sale is made) may be deemed to be an underwriter (as that
term is defined in the Securities Act) may require compliance with some other exemption under the Securities Act or the rules and
regulations of the SEC thereunder; and (iii) except as otherwise provided in the Transaction Documents, neither the Company nor
any other Person is under any obligation to register the Securities under the Securities Act or any state securities laws or to
comply with the terms and conditions of any exemption thereunder. Notwithstanding the foregoing, the Securities may be pledged
in connection with a bona fide margin account or other loan or financing arrangement secured by the Securities and such pledge
of Securities shall not be deemed to be a transfer, sale or assignment of the Securities hereunder, and such Purchaser in effecting
a pledge of Securities shall not be required to provide the Company with any notice thereof or otherwise make any delivery to the
Company pursuant to this Agreement or any other Transaction Document, including, without limitation, this Section 3.2(k).

 

(l)                
Legends. Such Purchaser understands that the certificates or other instruments representing the Securities, except
as set forth below, shall bear any legend as required by the “blue sky” laws of any state and a restrictive legend
in substantially the following form (and a stop-transfer order may be placed against transfer of such stock certificates):

 

NEITHER THE
ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL, IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT
REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING
THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT
SECURED BY THE SECURITIES.

 

The legend
set forth above shall be removed and the Company shall issue a certificate without such legend to the holder of the Securities
upon which it is stamped or issue to such holder by electronic delivery at the applicable balance account at DTC, if, unless otherwise
required by state securities laws, (i) such Securities are registered for resale under the Securities Act, (ii) in connection with
a sale, assignment or other transfer, such holder provides the Company with an opinion of counsel, in a form reasonably acceptable
to the Company, to the effect that such sale, assignment or transfer of the Securities may be made without registration under the
applicable requirements of the Securities Act, or (iii) the Securities can be sold, assigned or transferred pursuant to Rule 144
or Rule 144A. The Company shall cause its counsel to issue a legal opinion to the Transfer Agent if required by the Transfer Agent
to effect the removal of the legend hereunder. The Company shall be responsible for the fees of its transfer agent and all DTC
fees associated with such issuance.

 

(m)            
Lock-Up Agreements. Each Purchaser covenants, severally and not jointly, to execute and deliver a two (2)-month lock-up
agreement in the customary form as requested by an underwriter in connection with a Qualified Offering. This covenant is conditioned
upon the execution and delivery of the same lock-up agreement by the Company's management.

 

 

 

    	 	16	 

     

    

 

ARTICLE 4

COVENANTS

 

4.1       
Affirmative Covenants. Commencing on the initial Closing Date and until all the Liabilities under the Notes are paid
in full, the Company covenants and agrees that:

 

(a)              
Financial Statements and Certificates. While any amounts are owed to a Purchaser from the Company (including, but
not limited to, any Liability), the Company will furnish the following to such Purchaser, all in form and scope acceptable to such
Purchaser, unless such information is included in the Company’s most recent SEC Reports:

 

(i)           
within 90 days after the close of each fiscal year of the Company, a copy of the annual report of the Company, consisting
of a balance sheet, statement of operating results and retained earnings, statement of cash flows and notes to financial statements,
profit and loss statement and statement of changes in financial position of the Company, prepared in conformity with GAAP, duly
audited by an independent registered public accounting firm selected by the Company and not unreasonably disapproved by the Purchasers;

 

(ii)          
within 45 days after the end of each fiscal quarter, a copy of an unaudited financial statement of the Company prepared
in the same manner as the report referred to in paragraph (i) above signed by the principal accounting officer of the Company and
consisting of a balance sheet as at the close of such fiscal quarter and statements of earnings and cash flows for such fiscal
quarter and for the period from the beginning of such fiscal year to the close of such fiscal quarter;

 

(iii)         
a duly completed compliance certificate, dated the date of such financial statements and certified as true and correct by
the chief executive officer and chief financial officer of Company, stating that the Company has not become aware of any Event
of Default that has occurred and is continuing or, if there is any such Event of Default describing it and the steps, if any, being
taken to cure it;

 

(iv)      
copies of any and all reports, examinations, notices, warnings and citations issued by any governmental or quasi-governmental
(whether federal, state or local), unit, agency, body or entity with respect to the Company that would reasonably be expected to
have a Material Adverse Effect; and

 

(v)         
such other information as the Purchasers from time to time reasonably request.

 

(b)              
Books, Records and Inspections. Company shall (i) maintain complete and accurate books and records; (ii) permit access
by each Purchaser and its agents and/or representatives to such books and records as they relate to this Agreement, the Securities,
and/or the other Transaction Documents; and (iii) permit such persons, upon two (2) days’ prior written notice, to inspect
the properties, whether real or personal, and operations of the Company.

 

(c)              
Insurance. The Company shall maintain such insurance as may be required by law and such other insurance to the extent
and such hazards and liabilities as is customarily maintained by companies similarly situated. All property insurance policies
shall, within thirty (30) days following the Closing Date, contain Purchaser loss-payable clauses in form and substance reasonably
satisfactory to the Purchasers, naming each Purchaser as a Purchaser loss-payee, mortgagee and/or additional insured, as its interest
may appear, and providing that such policies and Purchaser loss-payable clauses may not be canceled, amended or terminated unless
at least thirty (30) days (or ten (10) days in the case of non-payment of premiums) prior written notice thereof has been given
to the Purchasers. All insurance proceeds received by any Purchaser pursuant to the Security Agreement may be retained by such
Purchaser, in its sole discretion, for application to the payment of the Liabilities as the Purchaser may determine.

 

(d)              
Taxes and Liabilities. The Company shall pay when due all material taxes, assessments and other liabilities except
as contested in good faith and by appropriate proceedings and for which adequate reserves in conformity with GAAP have been established.

 

 

 

    	 	17	 

     

    

 

(e)              
Maintenance of Business; Company Names. The Company shall (i) keep all property and systems useful and necessary
in its business in good working order and condition, (ii) preserve its existence, rights and privileges in the jurisdiction of
its organization or formation, as set forth on the SEC Reports and become or remain, and cause each of its Subsidiaries to become
or remain, duly qualified and in good standing in each jurisdiction in which the character of the properties owned or leased by
it or in which the transaction of its business makes such qualification necessary, (iii) not operate in any business other than
a business substantially the same as the business as in effect on the date of this Agreement; provided, however,
that it may change its jurisdiction of organization or formation establishment upon thirty (30) days’ prior written notice
to the Purchasers. The Company shall give Purchasers thirty (30) days’ prior written notice before the Company changes its
name or does business under any other name.

 

(f)               
Employee Benefit Plans, Etc. The Company shall (i) maintain each plan and/or each employee benefit plan as to which
it may have any liability in substantial compliance with all applicable requirements of law and regulations; (ii) make all payments
and contributions required to be made pursuant to such Plans and/or plans in a timely manner; and (iii) neither establish any new
Plan and/or employee benefit plan, agree or contribute to any Plan and/or multi-employer plan nor amend any existing Plan and/or
employee pension benefit plan in a manner that would increase its obligation to contribute to such Plan and/or plan.

 

(g)              
Good Title. The Company shall at all times maintain good and marketable title to all of its assets necessary for
the operation of its business.

 

(h)              
Maintenance of Intellectual Property Rights. The Company will take all reasonable action necessary or advisable to
maintain all of the Intellectual Property Rights of the Company that are necessary or material to the conduct of its business in
full force and effect.

 

(i)               
Locations. The Company shall give the Purchasers thirty (30) days’ prior written notice of a change in its
jurisdiction of organization or the location of its Chief Executive Office or sole place of business or principal residence.

 

(j)                
Securities Law Disclosure; Publicity. (i) No later than 9:30 am (EDT) on the first Trading Day after the date hereof
and after each closing of the transactions contemplated hereby, the Company shall issue a Current Report on Form 8-K (the “Current
Report”) disclosing the material terms of the transactions contemplated hereby, and including the Transaction Documents
required to be included in such Current Report as exhibits thereto, within the time required by the Exchange Act. The Company represents
to the Purchasers that, as of the issuance of the first such Current Report, the Company shall have publicly disclosed all material,
non-public information delivered to the Purchasers, if any, as of such time by the Company, or any of its respective officers,
directors, employees or agents in connection with the transactions contemplated by the Transaction Documents. The Company shall
afford each Purchaser and its counsel with a reasonable opportunity to review and comment upon, shall consult with each Purchaser
and its counsel on the form and substance of, and shall give due consideration to all such comments from each Purchaser and its
counsel on, any press release, SEC filing or any other public disclosure made by or on behalf of the Company relating to such Purchaser,
the Transaction Documents and/or the transactions contemplated by any Transaction Document, prior to the issuance, filing or public
disclosure thereof, and the Company shall not issue, file or publicly disclose any such information to which any Purchaser shall
reasonably object, unless required by law. For the avoidance of doubt, the Company shall not be required to submit for review any
such disclosure contained in periodic reports filed with the SEC under the Exchange Act if it shall have previously provided the
same disclosure for review in connection with a previous filing. Notwithstanding the foregoing, the Company shall not publicly
disclose the name of any Purchaser, or include the name of any Purchaser in any filing with the Commission or any regulatory agency
or Trading Market, without the prior written consent of such Purchaser, except: (a) as required by federal securities law in connection
with the filing of final Transaction Documents with the Commission and (b) to the extent such disclosure is required by law or
Trading Market regulations, in which case the Company shall provide the Purchasers with prior notice of such disclosure permitted
under this clause (b).

 

 

 

    	 	18	 

     

    

 

               (ii)            Except
with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, which shall be
disclosed pursuant to Section 4.1(j)(i), and any notice required to be made pursuant to Sections 4.1(k)
and 4.2(d) hereof or any Transaction Document, to which notices the Holders hereby consent, the Company covenants and
agrees that neither it, nor any other Person acting on its behalf, will provide any Purchaser or its agents or counsel with any
information that constitutes, or that the Company reasonably believes constitutes, material non-public information, unless prior
thereto such Purchaser shall have consented to the receipt of such information and agreed with the Company to keep such information
confidential. The Company understands that each Purchaser may be relying on the foregoing covenant in effecting transactions in
securities of the Company.

 

(k)              
Notices. The Company shall, after receipt of knowledge thereof, give prompt written notice to the Purchasers of:

 

(i)           
the occurrence of any Event of Default or any event that with the passage of time or the giving of notice or both would
become an Event of Default;

 

(ii)          
any litigation, investigation or proceeding that may exist at any time between the Company and any governmental authority
that, in either case, if not cured or if adversely determined, as the case may be, would reasonably be expected to have a Material
Adverse Effect;

 

(iii)        
any litigation or proceeding affecting the Company (A) in which the amount involved is $100,000 or more, (B) in which injunctive
and/or other equitable relief is sought and/or (C) that relates to any Purchaser, any Transaction Document and/or any of the transactions
contemplated by any Transaction Document;

 

(iv)        
any Lien (other than security interests created hereby or Permitted Liens) and/or any Indebtedness other than Indebtedness
related to the Transaction Documents or Permitted Indebtedness; and

 

(v)         
Any matter, development and/or event that has had or would reasonably be expected to have a Material Adverse Effect, including
any such matter arising from: any breach or non-performance of, or any default or event of default under the Transaction Documents
and/or any other material agreements that the Company is a party to and/or any of its property is bound by.

 

Each notice pursuant to this
Section 4.1(k) shall be accompanied by a statement of the Company setting forth details of the occurrence referred
to therein and stating what action the Company proposes to take with respect thereto.

 

(l)                
Environmental Laws. The Company shall (i) comply in all material respects with, and endeavor to ensure compliance
in all material respects by all tenants and subtenants, if any, with, all applicable Environmental Laws, and obtain and comply
in all material respects with and maintain, and endeavor to ensure that all tenants and subtenants obtain and comply in all material
respects with and maintain, any and all licenses, approvals, notifications, registrations or permits required by applicable Environmental
Laws, and (ii) conduct and complete all investigations, studies, sampling and testing, and all remedial, removal and other actions
required under Environmental Laws and promptly comply in all material respects with all lawful orders and directives of all governmental
authorities regarding Environmental Laws.

 

(m)            
Further Assurances. The Company shall, from time to time execute and deliver, or cause to be executed and delivered,
such additional instruments, certificates or documents, and take such actions, as each Purchaser may reasonably request for the
purposes of implementing or effectuating the provisions of this Agreement and the other Transaction Documents. Upon the exercise
by any Purchaser of any power, right, privilege or remedy pursuant to this Agreement or the other Transaction Documents that requires
any consent, approval, recording, qualification or authorization of any governmental authority, the Company will execute and deliver,
or will cause the execution and delivery of, all applications, certifications, instruments and other documents and papers that
such Purchaser may be required to obtain from the Company for such governmental consent, approval, recording, qualification or
authorization.

 

 

 

    	 	19	 

     

    

 

(n)              
Reservation of Shares.  Notwithstanding anything to the contrary herein, the Company shall not be required to
reserve any shares of Common Stock from its duly authorized shares of Common Stock for issuance in connection with the transactions
contemplated hereby; provided, however, that from and after September 1, 2018, and for so long as any Securities
are owned beneficially and/or of record by any Purchaser or any transferee thereof, the Company covenants and agrees that it will
at all times reserve and keep available out of its authorized and unissued shares of Common Stock a number of shares of Common
Stock at least equal to (the “Required Reserve Amount”) (i) (a) 400% multiplied by (b) the Required Minimum
(as defined below) plus (ii) the quotient of (A) the sum of all shares of Common Stock issuable upon exercise of all Warrants and/or
other warrants owed by the Purchasers or any transferee thereof, divided by (B) the Exercise Price (as defined in the Warrants)
then applicable, for the sole purpose of issuance upon conversion of the Notes, payment of interest on the Notes and exercise of
the Warrants, free from preemptive rights or any other actual contingent purchase rights of Persons other than the applicable Purchaser
(and any other holders of any Notes and/or Warrants transferred from a Purchaser). The Company covenants that all shares of Common
Stock that shall be so issuable shall, upon issue, be duly authorized, validly issued, fully paid and nonassessable, and, at such
times as a registration statement covering such shares is then effective under the Securities Act, will be registered for public
resale in accordance with such registration statement.  For purposes of this Agreement, the “Required Minimum”
shall mean the quotient obtained by dividing the sum of (A) (i) all outstanding Indebtedness represented by the Notes, (ii) all
interest thereon (whether accrued or not), and (iii) and/or other amounts owed under the Transaction Documents, including Liabilities
to the Purchasers from the Company (including but not limited to Late Fees, and liquidated damages), by (B) the lower of (i) the
Conversion Price (as defined in the Notes) then applicable or (ii) the Alternate Conversion Price, as the case may be. The Company
shall be required to calculate the Required Minimum on the first Trading Day of each month that any Securities are outstanding
and provide such calculation to each Purchaser and the Transfer Agent promptly.  For purposes of calculating the Required
Minimum, the Company shall assume that all outstanding principal of all Notes will remain outstanding until the applicable Maturity
Date as defined in the Notes.

 

(o)              
Registration Rights. The Company hereby grants the following registration rights to the Purchasers:

 

(i)           
At any time after an Event of Default on the Note, upon notice of such Event of Default by the Purchasers to the Company
(the “Notice Date”), the Company shall prepare and file with the Commission a registration statement (the “Registration
Statement”) under the Securities Act registering all Securities covered by the Transaction Documents (the “Registrable
Securities”).

 

(ii)          
Registration Procedures. The Company will, as expeditiously as possible:

 

a.                 
subject to the timelines provided in this Agreement, (x) prepare and file with the Commission a Registration Statement required
by Section 4.1(o) with respect to such Registrable Securities and use its commercially reasonable efforts to cause
such Registration Statement to become and remain effective no later than thirty (30) days after the Notice Date for the period
of the distribution contemplated thereby, (y) promptly provide to each Purchaser copies of all filings and Commission letters of
comment and notify each Purchaser (by telecopier, by PDF and by e-mail addresses provided by such Purchaser) on or before the second
(2nd) Business Day thereafter that the Company receives notice that (A) the Commission has no comments or no further comments on
the Registration Statement, and (B) the Registration Statement has been declared effective.

 

b.                 
prepare and file with the Commission such amendments and supplements to such Registration Statement and the prospectus used
in connection therewith as may be necessary to keep such Registration Statement effective until such Registration Statement has
been effective for a period of one (1) year, and comply with the provisions of the Securities Act with respect to the disposition
of all of the Registrable Securities covered by such Registration Statement in accordance with the Purchasers’ intended method
of disposition set forth in such Registration Statement for such period;

 

c.                  
furnish to each Purchaser, at the Company’s expense, such number of copies of the Registration Statement and the prospectus
included therein (including each preliminary prospectus) as such persons reasonably may request in order to facilitate the public
sale or the disposition of the Registrable Securities covered by such Registration Statement, or make them electronically available;

 

d.                 
as applicable, list or make available for quotation the Registrable Securities covered by such Registration Statement with
the Principal Market;

 

 

 

    	 	20	 

     

    

 

e.                  
notify each Purchaser within two (2) Business Days of the happening of any event of which the Company has knowledge as a
result of which the prospectus contained in such Registration Statement, as then in effect, includes an untrue statement of a material
fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading
in light of the circumstances then existing, or which becomes subject to a Commission, state or other governmental order suspending
the effectiveness of the Registration Statement covering any of the Registrable Securities; and

 

f.                   
provide to each Purchaser copies of the Registration Statement and amendments thereto at least two (2) days prior to the
filing thereof with the Commission.

 

g.                 
Expenses. All expenses incurred by the Company in complying with Section 4.1(o), including, without limitation,
all registration and filing fees, printing expenses (if required), fees and disbursements of the Company counsel and independent
public accountants for the Company, fees and expenses (including reasonable counsel fees) incurred in connection with complying
with state securities or “blue sky” laws, fees of FINRA, and fees of transfer agents and registrars are herein called
“Registration Expenses.” All underwriting discounts, selling commissions and transfers applicable to the sale
of Registrable Securities are herein called “Selling Expenses.” The Company will pay all Registration Expenses
in connection with any Registration Statement described in Section 4.1(o). Selling Expenses in connection with each
such Registration Statement shall be borne by each Purchaser.

 

(p)              
Certain Transactions and Confidentiality.

 

(i)           
Each Purchaser, severally and not jointly with the other Purchasers, covenants that neither it, nor any Affiliate acting
on its behalf or pursuant to any understanding with it will execute any purchases or sales, including Short Sales, of any of the
Company’s securities during the period commencing with the execution of this Agreement and ending at such time that the transactions
contemplated by this Agreement are first publicly announced pursuant to the initial Current Report as described in Section 4.1(j).
Each Purchaser, severally and not jointly with the other Purchasers, covenants that, until such time as the transactions contemplated
by this Agreement are publicly disclosed by the Company pursuant to the initial Current Report as described in Section 4.1(j),
such Purchaser will maintain the confidentiality of the existence and terms of this transaction and the information included in
the Transaction Documents and the Disclosure Schedules. Notwithstanding the foregoing, and notwithstanding anything contained in
this Agreement to the contrary, the Company expressly acknowledges and agrees that (A) no Purchaser makes any representation, warranty
or covenant hereby that it will not engage in effecting transactions in any securities of the Company after the time that the transactions
contemplated by this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.1(j),
(B) no Purchaser shall be restricted or prohibited from effecting any transactions in any securities of the Company in accordance
with applicable securities laws from and after the time that the transactions contemplated by this Agreement are first publicly
announced pursuant to the initial press release as described in Section 4.1(j) and (C) no Purchaser shall have
any duty of confidentiality or duty not to trade in the securities of the Company to the Company or its Subsidiaries after the
issuance of the initial press release as described in Section 4.1(j); provided, however, each
Purchaser agrees, severally and not jointly with any other Purchasers, that such Purchaser will not enter into any Net Short Sales
(as hereinafter defined) from the period commencing on the Closing Date and ending on the date that such Purchaser no longer holds
any Notes or Warrants.  For purposes of this Section 4.1(p), a “Net Short Sale” by any
Purchaser shall mean a sale of Common Stock by such Purchaser that is marked as a short sale and that is made at a time where there
is no equivalent offsetting long position in Common Stock held by such Purchaser. For purposes of determining whether there is
an equivalent offsetting long position in Common Stock held by the Purchaser, Underlying Shares that have not yet been converted
pursuant to the Notes and Warrant Shares that have not yet been exercised pursuant to the Warrants shall be deemed to be held long
by the Purchaser, and the amount of shares of Common Stock held in a long position shall be all unconverted Underlying Shares and
unexercised Warrant Shares (subject, however to all exercise and conversion limitations included in the Warrants and the Notes)
issuable to such Purchaser on such date, plus any shares of Common Stock or Common Stock Equivalents otherwise then held by such
Purchaser. Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle, whereby separate
portfolio managers manage separate portions of such Purchaser’s assets and the portfolio managers have no direct knowledge
of the investment decisions made by the portfolio managers managing other portions of such Purchaser’s assets, the covenant
set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment
decision to purchase the Securities covered by this Agreement. For the avoidance of doubt, except as described in Section 4.1(p)(ii)
below, no Purchaser shall perform a Net Short Sale.

 

 

 

    	 	21	 

     

    

 

(ii)          
Notwithstanding anything to the contrary contained in Section 4.1(p)(i) above, in the event that the
Company does not or is unable to honor a Notice of Conversion in connection with any Purchaser of the Notes (subject to the Company’s
obligations to honor a notice of conversion as set forth in the Notes), then such Purchaser, in each case, shall be entitled to
perform a Net Short Sale. In the event that the Company subsequently honors a notice of conversion within two (2) Trading Days
after the time permitted under the Notes or the applicable certificate of designation, as amended (the “Default Cure”),
then such Purchaser must close out the Net Short Sale within three (3) Trading Days of such Purchaser’s receipt of written
notice from the Company of the Default Cure.

 

(q)              
Most Favored Nation Status. From the date hereof through the date that no Securities issued in this offering are
outstanding, in the event that the Company issues or sells any securities of like tenor, structure, or kind, if the Purchaser then
holding such securities reasonably believes that the terms and conditions appurtenant to such issuance or sale provide provisions
to such new investors that were not granted to the Purchaser hereunder, upon notice to the Company by such Purchaser within five
(5) Trading Days after the Company’s disclosure of such issuance or sale, the Company shall amend the terms of the affected
Securities as to such Purchaser only, so as to give such Purchaser the benefit of such new provisions and/or favored provisions,
terms, rights, or features. The provisions of this Section 4.1(q) will expire immediately upon the closing of the Uplist,
as defined in the Notes.

 

(r)               
Right of Participation. For so long as the Notes (or any portion thereof) remain outstanding, upon any issuance by
the Company of Common Stock, Common Stock Equivalents or Indebtedness for cash consideration, or a combination of units thereof,
including, without limitation, any Permitted Cross-Over Financing and any Uplist Offering, as defined in the Notes (a “Subsequent
Financing”), the Purchaser shall have the right to participate in up to an amount of the Subsequent Financing equal $550,000
(the “Participation Maximum”) on the same terms, conditions and price provided for in the Subsequent Financing,
at a 25% discount to the valuation provided to such investors in the Subsequent Financing; provided, however, that
the Purchaser shall be entitled to fund its participation using the principal and accrued interest outstanding from the Notes at
the time of such Subsequent Financing; provided further, however, that the 25% discount to such Subsequent Financing
shall not apply to the Cross-Over Financing.

 

4.2       
Negative Covenants. Until all the Liabilities under the Notes are paid in full, the Company covenants and agrees
that:

 

(a)              
Restricted Payments. Except to the Purchasers, the Company shall not directly or indirectly, redeem, defease, repurchase,
repay or make any payments in respect of, by the payment of cash or cash equivalents (in whole or in part, whether by way of open
market purchases, tender offers, private transactions or otherwise), all or any portion of any Indebtedness, whether by way of
payment in respect of principal of (or premium, if any) or interest on, such Indebtedness, except for Permitted Indebtedness; provided,
however, that, notwithstanding anything to the contrary provided herein or elsewhere, in no event shall the Company directly
and/or indirectly make any payment to any officer, director, or 5% or greater beneficial holder of the Company’s voting stock
or Common Stock or an affiliate of the Company and/or any affiliate of any such person representing the direct and/or indirect
repayment of Indebtedness, premiums and/or interest on Indebtedness, unpaid salaries, unpaid consulting fees, unpaid expenses,
accrued but unpaid interest and/or otherwise, except as set forth in Schedule 4.2(a).

 

(b)              
Restricted Issuances. Except to the Purchasers, the Company shall not, directly or indirectly, (i) issue any securities
and/or Indebtedness (other than (x) as contemplated by this Agreement and/or the Transaction Documents or (y) in connection with
any Permitted Cross-Over Financing) or (ii) issue any other securities that would cause a breach or default, an event of default
and/or an Event of Default under any Note and/or any other Transaction Document.

 

(c)              
Restriction on Redemption and Dividends. Except to the Purchasers, the Company shall not, directly or indirectly,
redeem, repurchase or declare or pay any dividend or distribution on any of its capital stock whether in cash, stock rights and/or
property, except as set forth in the SEC Reports.

 

 

 

    	 	22	 

     

    

 

(d)              
Restriction on Transfer of Assets. The Company shall not, directly or indirectly, sell, lease, license, assign, transfer,
spin-off, split-off, close, convey or otherwise dispose of any assets or rights of the Company owned or hereafter acquired whether
in a single transaction or a series of related transactions, other than sales, leases, licenses, assignments, transfers, conveyances
and other dispositions of such assets or rights by the Company in the ordinary course of business; provided, however,
that, in the event that the Company wishes to effect a transaction under this Section 4.2(d), it shall, prior to undertaking
such effort, provide each Purchaser with a high-level understanding of the objectives and ideal terms of such anticipated transaction
the (“Initial Notice”). No fewer than four (4) Trading Days prior to the execution of each of a binding term
sheet and definitive documentation, the Company shall deliver to each Purchaser a written notice of any material terms and/or changes
since the prior notice given to the Company and shall include a term sheet or similar document relating thereto as an attachment.
Thereafter, upon receipt of draft execution copies of such definitive documentation, the transaction shall be subject to each Purchaser’s
consent, which consent will not be unreasonably withheld. The Company shall file a Current Report on Form 8-K no later than 9:30
am (EDT) on the next Trading Day following the execution of any such documentation. Each Purchaser acknowledges that any of the
foregoing information relating to the anticipated transaction may constitute material non-public information, consents to the receipt
such information and agrees not to transfer any interest in any securities of the Company from the time of the Initial Notice through
that filing of such Form 8-K.

 

(e)              
Change in Nature of Business.  The Company shall not, directly or indirectly, engage in any business substantially
different from the business conducted by the Company on the Closing Date or any business substantially related or incidental thereto.
The Company shall not, directly or indirectly, modify its corporate structure for any purpose.

 

(f)               
Indebtedness. The Company shall not incur or permit to exist any Indebtedness, except for Permitted Indebtedness.

 

(g)              
Liens. The Company shall not create or permit to exist any Liens or security interests with respect to any assets,
whether now owned or hereafter acquired and owned, except for Permitted Liens.

 

(h)              
Guaranties, Loans or Advances. The Company shall not become or be a guarantor or surety of, or otherwise become or
be responsible in any manner with respect to any undertaking of any other Person, or make or permit to exist any loans or advances
to or investments in any other Person, except for the endorsement, in the ordinary course of collection, of instruments payable
to it or to its order.

 

(i)                
Violation of Law. The Company shall not violate any law, statute, ordinance, rule, regulation, judgment, decree,
order, writ or injunction of any federal, state or local authority, court, agency, bureau, board, commission, department or governmental
body if such violation would reasonably be expected to have a Material Adverse Effect.

 

(j)                
Unconditional Purchase Obligations. The Company shall not enter into or be a party to any contract for the purchase
of any material amount of materials, supplies or other property or services if such contract requires that payment be made by it
regardless of whether or not delivery is ever made of such materials, supplies or other property or services.

 

(k)              
Use of Proceeds. The Company shall not permit any proceeds of the Notes to be used either directly or indirectly
for the purpose, whether immediate, incidental or ultimate, of “purchasing or carrying any margin stock” within the
meaning of Regulation U, as amended from time to time, of the Board of Governors of the Federal Reserve System.

 

(l)               
Hedge Agreements. The Company shall not enter into any hedge agreement other than hedge agreements entered into in
the ordinary course of business, and not for speculative purposes, to protect against changes in interest rates or foreign exchange
rates.

 

(m)             
ERISA. The Company shall not create or become obligated under any Plan.

 

 

 

    	 	23	 

     

    

 

(n)              
No Variable Rate Transactions, Etc. For as long as any Notes and/or Warrants remain outstanding, the Company shall
not, other than in connection with the transactions contemplated hereby, directly or indirectly, (i) (A) consummate any exchange
of any Indebtedness and/or securities of the Company for any other securities and/or Indebtedness of the Company, (B) cooperate
with any person to effect any exchange of securities and/or Indebtedness of the Company in connection with a proposed sale of such
securities from an existing holder of such securities to a third party, and/or (C) reduce and/or otherwise change the exercise
price, conversion price and/or exchange price of any Common Stock Equivalent of the Company and/or amend any non-convertible Indebtedness
of the Company to make it convertible into securities of the Company, (ii) issue or sell any of its securities either (A) at
a conversion, exercise or exchange rate or price that is based upon and/or varies with the trading prices of, or quotations for,
the shares of Common Stock, and/or (B) with a conversion, exercise or exchange rate and/or price that is subject to being reset
on one or more occasions either (1) at some future date after the initial issuance of such securities or (2) upon the occurrence
of specified or contingent events directly or indirectly related to the business of the Company or the market for the Common Stock,
and/or (iii) enter into any agreement (including, without limitation, an “equity line of credit” or an “at-the-market
offering”) whereby the Company may sell securities at a future determined price. Any transaction contemplated in this Section
4.2(n) shall be referred to as a “Variable Rate Transaction.” Each Purchaser shall be entitled to obtain
injunctive relief against the Company to preclude any Variable Rate Transaction (without the need for the posting of any bond or
similar item, for which the Company hereby expressly and irrevocably waives the requirement), which remedy shall be in addition
to any right of any Purchaser to collect damages.

 

(o)              
Transactions with Affiliates. Except as set forth in Schedule 4.2(o), the Company shall not directly
and/or indirectly enter into, renew, extend or be a party to, any transaction or series of related transactions (including, without
limitation, lending funds to an Affiliate and/or borrowing funds from any Affiliate, the purchase, sale, lease, transfer or exchange
of property, securities or assets of any kind or the rendering of services of any kind) with any officer, director, Affiliate and/or
any Affiliate of such person.

 

(p)              
Subsidiaries. Without the consent of the holders of a majority (by principal) of any Notes then outstanding, which
consent shall not be unreasonably withheld, delayed, denied, or conditioned, the Company shall neither, and shall not permit any
Subsidiary to, create or acquire any additional Subsidiary nor permit any Subsidiary to, sell, assign or otherwise dispose of any
Equity Interests in any Subsidiary to any Person. Neither the Company nor any Subsidiary shall have any foreign Subsidiaries.

 

ARTICLE 5

CLOSING CONDITIONS

 

5.1       
Closing Conditions of each Purchaser. Each Purchaser’s obligation to enter into the Transaction Documents and
purchase the Notes, the Warrants and the Commitment Shares at the Closing is subject to the fulfillment of each and every one of
the following conditions prior to or contemporaneously with such Purchaser entering into the Transaction Documents and purchasing
the Notes, the Warrants and the Commitment Shares at the Closing (unless waived by such Purchaser in writing in its sole and absolute
discretion):

 

(a)              
Delivery of Documents. Each Purchaser shall have received from the Company each of the following (together with all
exhibits, schedules, and annexes to each of the following), in form and substance reasonably satisfactory to such Purchaser and
its counsel and, where applicable, duly executed and recorded (to the extent required):

 

(i)          
certificates of the Chief Executive Officer and Secretary of Company, certifying as of the Closing Date to (A) copies of
the articles of incorporation and by-laws of the Company, as restated or amended as of the date of this Agreement; (B) all actions
taken and consents made by the Company and its Board of Directors and stockholders, as applicable to authorize the transactions
provided for or contemplated under this Agreement and the other Transaction Documents and the execution, delivery and performance
of the Transaction Documents; (C) the names of the directors and officers of the Company authorized to sign the Transaction
Documents, together with a sample of the true signature of each such Person; (D) that all representations and warranties of
the Company made herein and/or in any of the other Transaction Documents are true and correct in all respects; (E) that all covenants
of the Company to be fulfilled herein and/or in any of the other Transaction Documents have been fulfilled and complied with in
all respects; and (F) that no default or Event of Default has occurred or is continuing under this Agreement, any of the other
Transaction Documents, or any of the Company’s material agreements;

 

 

 

    	 	24	 

     

    

 

(ii)          
this Agreement;

 

(iii)         
the Notes issuable at the Closing;

 

(iv)         
the Warrants issuable at the Closing;

 

(v)          
the Commitment Shares to be issued within five (5) Business Days of the Closing;

 

(vi)         
the Security Agreement;

 

(vii)        
the Subsidiary Guarantee;

 

(viii)       
certificates of good standing obtained prior to the Closing for Company and each Subsidiary in the jurisdiction of each
of such Person’s incorporation or formation, in the principal places in which Company conducts business and in places in
which each such Person owns real estate;

 

(ix)         
the Closing Statement attached as Annex A hereto;

 

(x)          
the other Transaction Documents and in form and substance reasonably satisfactory to each Purchaser obtained prior to the
Closing; and

 

(xi)        
Such other documents, certificates, opinions, instruments and/or other items reasonably requested by each Purchaser and/or
its legal counsel in connection with the Closing.

 

(b)             
Approvals. The receipt by each Purchaser of all governmental and third-party approvals necessary in connection with
the continuing operations of the Company, the execution and performance of the Transaction Documents and the transactions contemplated
thereby, all of which consents/approvals shall be in full force and effect.

 

(c)              
Additional Conditions. The fulfillment of each and every one of the following conditions prior to or contemporaneously
with the making of the purchase of the Notes:

 

(i)          
Representations and Warranties. Each of the representations and warranties made by the Company in or pursuant to
the Transaction Documents and all schedules and/or exhibits to this Agreement and/or any of the other Transaction Documents shall
be true and correct in all material respects on and as of the Closing Date as if made (or given) on and as of such date (except
where such representation and warranty speaks of a specific date, in which case such representation and warranty shall be true
and correct as of such date).

 

(ii)          
No Events of Default. (A) Other than as set forth on Schedule 2.2, no breach, event of default, Event
of Default or any other event that, with the passage of time or the giving of notice or both, would become a breach, event of default
and/or an Event of Default shall have occurred or would result from the sale of the Notes, the Warrants and the Commitment Shares
to each Purchaser or the performance of any other transaction set forth or contemplated by any of the Transaction Documents; and
(B) no breach, event of default, Event of Default or any other event that, with the passage of time or the giving of notice or
both, would become a breach, event of default and/or an Event of Default shall have occurred under any of the Company’s material
agreements.

 

 

 

    	 	25	 

     

    

 

(iii)        
Compliance with Laws. The Company shall have complied with all applicable federal, state and local governmental laws,
rules, regulations and ordinances in connection with the execution, delivery and performance of this Agreement and the other Transaction
Documents to which it is a party and the consummation of the transactions contemplated hereby and thereby, including, without limitation,
the Company shall have obtained all permits and qualifications required by any applicable state securities or “Blue Sky”
laws for the offer and sale of the Securities by the Company to the Purchasers).

 

(iv)         
No Injunction. No statute, regulation, order, decree, writ, ruling or injunction shall have been enacted, entered,
promulgated, threatened in writing or endorsed by any court or governmental authority of competent jurisdiction which prohibits
the consummation of or which would materially modify or delay the execution and performance of the Transaction Documents and/or
any of the transactions contemplated by the Transaction Documents.

 

(v)         
No Proceedings or Litigation. No action, suit or proceeding before any arbitrator or any court or governmental authority
shall have been commenced or threatened in writing, and no inquiry or investigation by any governmental authority shall have been
commenced or threatened in writing, against the Company, or any of the officers, directors or affiliates of the Company, seeking
to restrain, prevent or change the Transaction Documents and/or any of the transactions contemplated by the Transaction Documents,
or seeking material damages in connection with such Transaction Documents and/or transactions.

 

(vi)        
No Material Adverse Effect. No condition, occurrence, state of facts or event constituting a Material Adverse Effect
shall have occurred and be continuing.

 

(vii)      
Current Public Information. All reports, schedules, registrations, forms, statements, information and other documents
required to have been filed by the Company with the SEC since January 1, 2017, pursuant to the reporting requirements of the Exchange
Act, including all material required to have been filed pursuant to Section 13(a) or 15(d) of the Exchange Act, shall have been
filed with the SEC under the Exchange Act.

 

(viii)       
No Suspension of Trading in or Notice of Delisting of Common Stock. Trading in the Common Stock shall not have been
suspended and/or halted by the SEC, the Principal Market or FINRA. The Company shall not have received any final and non-appealable
notice that the listing or quotation of the Common Stock on the Principal Market shall be terminated on a date certain (unless,
prior to such date certain, the Common Stock is listed or quoted on any other Trading Market); trading in securities generally
as reported on the Principal Market shall not have been suspended or limited, nor shall a banking moratorium have been declared
either by the U.S. or New York State authorities; there shall not have been imposed any suspension of electronic trading or settlement
services by the Depository Trust Company (“DTC”) with respect to the Common Stock that is continuing; the Company
shall not have received any notice from DTC to the effect that a suspension of electronic trading or settlement services by DTC
with respect to the Common Stock is being imposed or is contemplated (unless, prior to such suspension, DTC shall have notified
the Company in writing that DTC has determined not to impose any such suspension); nor shall there have occurred any material outbreak
or escalation of hostilities or other national or international calamity or crisis that has had or would reasonably be expected
to have a material adverse change in any U.S. financial, credit or securities market that is continuing.

 

(ix)         
Completion of Due Diligence. Each Purchaser shall have completed its legal, business and financial due diligence
of the Company to its full satisfaction and shall be fully satisfied with the results thereof.

 

 

 

    	 	26	 

     

    

 

5.2       
Closing Conditions of Company. The obligation of the Company to sell and issue the Notes, the Warrants and the Commitment
Shares to each of the Purchasers at the Closing is subject to the fulfillment, to the Company’s reasonable satisfaction,
prior to or contemporary at the Closing, of each of the following conditions (unless waived by the Company):

 

(a)              
Delivery of Documents. The Company shall have received from each Purchaser each of the following (together with all
exhibits, schedules, and annexes to each of the following), in form and substance reasonably satisfactory to the Company and its
counsel and, where applicable, duly executed:

 

(i)           
this Agreement;

 

(ii)          
the Security Agreement;

 

(iii)         
the Subsidiary Guarantee;

 

(iv)        
the other Transaction Documents and in form and substance reasonably satisfactory to the Company obtained prior to the Closing;
and

 

(v)         
Such other documents, certificates, opinions, instruments and/or other items reasonably requested by the Company and/or
its legal counsel in connection with the Closing.

 

(b)              
Representations and Warranties. Each of the representations and warranties made by each Purchaser in or pursuant
to the Transaction Documents and all schedules and/or exhibits to this Agreement and/or any of the other Transaction Documents
shall be true and correct in all material respects on and as of the Closing Date as if made (or given) on and as of such date (except
where such representation and warranty speaks of a specific date, in which case such representation and warranty shall be true
and correct as of such date).

 

(c)              
Compliance with Laws. Each Purchaser shall have complied with all applicable federal, state and local governmental
laws, rules, regulations and ordinances in connection with the execution, delivery and performance of this Agreement and the other
Transaction Documents to which it is a party and the consummation of the transactions contemplated hereby and thereby.

 

(d)              
No Injunction. No statute, regulation, order, decree, writ, ruling or injunction shall have been enacted, entered,
promulgated, threatened in writing or endorsed by any court or governmental authority of competent jurisdiction that prohibits
the consummation of or that would materially modify or delay any of the transactions contemplated by the Transaction Documents.

 

(e)              
No Proceedings or Litigation. No action, suit or proceeding before any arbitrator or any court or governmental authority
shall have been commenced or threatened in writing, and no inquiry or investigation by any governmental authority shall have been
commenced or threatened in writing, against the Purchaser, the Company, or any of the officers, directors or affiliates of each,
seeking to restrain, prevent or change the Transaction Documents and/or any of the transactions contemplated by the Transaction
Documents, or seeking material damages in connection with such Transaction Documents and/or transactions.

 

(f)               
Receipt of the Purchase Price. The Company shall receive at or substantially simultaneously with the Closing, the
Purchase Price of each Purchaser set forth on Schedule 1 hereto (less all of the Purchasers’ Expenses).

 

(g)              
Purchaser Waivers. The Purchasers shall have delivered to the Company a waiver letter with respect to any Events
of Default set forth on Schedule 2.2, in form and substance reasonably satisfactory to the Company.

 

 

 

    	 	27	 

     

    

 

ARTICLE 6

MISCELLANEOUS

 

6.1       
No Waiver; Modifications In Writing. No failure or delay on the part of any Purchaser in exercising any right, power
or remedy pursuant to the Transaction Documents shall operate as a waiver thereof, nor shall any single or partial exercise of
any such right, power or remedy preclude any other or further exercise thereof, or the exercise of any other right, power or remedy.
No amendment, modification, supplement, termination or waiver of any provision of the Transaction Documents, nor any consent by
any Purchaser to any departure by the Company therefrom, shall be effective unless the same shall be in writing and signed by such
Purchaser. Any waiver of any provision of the Transaction Documents and any consent by any Purchaser to any departure by the Company
from the terms of any provision of the Transaction Documents shall be effective only in the specific instance and for the specific
purpose for which given. No notice to or demand on the Company in any case shall entitle the Company to any other or further notice
or demand in similar or other circumstances.

 

6.2       
Set-Off. Each Purchaser shall have the right to set-off, appropriate and apply toward payment of any of the Liabilities
under the Notes, in such order of application as such Purchaser may from time to time and at any time elect, any cash, credit,
deposits, accounts, securities and any other property of the Company which is in transit to or in the possession, custody or control
of such Purchaser, or any agent, bailee, or Affiliate of such Purchaser. The Company hereby grants to Purchaser a security interest
in all such property.

 

6.3       
Notices. All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (a)
upon personal delivery to the party to be notified, (b) when sent by confirmed facsimile or e-mail if sent during normal business
hours of the recipient; if not, then on the next Business Day, (c) five (5) days after having been sent by registered or certified
mail, return receipt requested, postage prepaid, or (d) one (1) day after deposit with a nationally recognized overnight courier,
specifying next day delivery, with written verification of receipt:

 

If to Company:

 

Dthera Sciences

7310 Miramar Rd.

Suite 350

San Diego, CA 92126

 

Attention: Edward Cox, Chief Executive Officer

Phone: 858-215-6360

Email: ed@dthera.com

 

With copies to (which shall not
constitute notice):

 

Kirton McConkie, P.C.

50 East South Temple Street,
Suite 400

Salt Lake City, UT 84111

Attention: C. Parkinson Lloyd,
Esq.

Phone: 801-328-3600

Fax No. 801-212-2187

Email: plloyd@kmclaw.com

 

 

 

    	 	28	 

     

    

 

If to Purchasers:

 

To the address on each Purchaser’s
signature page.

 

With copies to:

(which shall not constitute notice):

 

Robinson Brog Leinwand Greene
Genovese & Gluck P.C.

875 Third Avenue, 9th
Floor

New York, New York 10022

Attention: David E. Danovitch,
Esq.

Phone: (212) 603-6391

Fax No.: (212) 956-2164

Email: ded@robinsonbrog.com

 

Any party hereto may from time to time
change its address for notices by giving written notice of such changed address to the other party hereto.

 

6.4       
Costs, Expenses and Taxes. In addition to any payment of fees or expenses provided for elsewhere herein, the Company
shall pay (i) any broker fees and commissions pursuant to Schedule 3.2(h), and (ii)any and all stamp, transfer and other
similar taxes payable or determined to be payable in connection with the execution and delivery of the Transaction Documents agrees
to hold each Purchaser harmless from and against any and all liabilities with respect to or resulting from any delay in paying
or omission to pay such taxes. If any suit or proceeding arising from any of the foregoing is brought against any Purchaser, the
Company, to the extent and in the manner directed by such Purchaser, will resist and defend such suit or proceeding or cause the
same to be resisted and defended by counsel approved by such Purchaser. If the Company shall fail to do any act or thing which
each has covenanted and/or agreed to do under this Agreement and/or any other Transaction Document or any representation or warranty
on the part of the Company contained in this Agreement and/or any other Transaction Document shall be breached, the such Purchaser
may, in its sole and absolute discretion, do the same or cause it to be done or remedy any such breach, and may expend its funds
for such purpose; and any and all amounts so expended by such Purchaser shall be repayable to such Purchaser by the Company immediately
upon such Purchaser’s demand therefor, with interest at a rate equal to eighteen (18%) percent during the period from and
including the date funds are so expended by such Purchaser to the date of repayment in full, and any such amounts due and owing
to such Purchaser shall be deemed to be part of the Liabilities secured hereunder and under the other Transaction Documents. The
obligations of the Company under this Section 6.4 shall survive the termination of this Agreement and the discharge
of the other obligations of the Company under the Transaction Documents.

 

6.5       
Indemnity

 

(a)              
The Company agrees to indemnify, pay and hold harmless each Purchaser, and such Purchaser’s assignees and affiliates
and their respective officers, directors, employees, agents, consultants, auditors, and attorneys of any of them (collectively,
the “Purchaser Indemnitees”) from and against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, claims, costs, expenses and disbursements of any kind or nature whatsoever (including the reasonable
fees and disbursements of counsel for such Purchaser Indemnitees in connection with any investigative, administrative or judicial
proceeding commenced or threatened, whether or not such Purchaser Indemnitee shall be designated a party thereto) (collectively,
“Losses”) that may be imposed on, incurred by, or asserted against that Purchaser Indemnitee, in any manner
relating to or arising out of any inaccuracy in any representation or warranty made by the Company, or any breach of any covenant
or agreement to be performed by the Company, under this Agreement and/or the other Transaction Documents, the consummation of the
transactions contemplated by this Agreement and the other Transaction Documents; provided that the Company shall have no obligation
to a Purchaser Indemnitee hereunder with respect to Losses directly resulting from the gross negligence or willful misconduct of
that Purchaser Indemnitee, as determined by a court of competent jurisdiction by a final and nonappealable judgment. The Company
shall not be obligated to indemnify the Purchaser Indemnitees, or have any liability, in excess of the aggregate Purchase Price
paid for the Notes, the Warrants and the Commitment Shares hereunder.

 

 

 

    	 	29	 

     

    

 

(b)              
Each Purchaser jointly and severally agrees to indemnify, pay and hold harmless the Company, and the Company’s assignees
and affiliates and their respective officers, directors, employees, agents, consultants, auditors, and attorneys of any of them
(collectively, the “Company Indemnitees”) from and against any and all Losses that may be imposed on, incurred
by, or asserted against that Company Indemnitee, in any manner relating to or arising out of any inaccuracy in any representation
or warranty made by the Purchasers, or any breach of any covenant or agreement to be performed by the Purchaser, under this Agreement
and/or the other Transaction Documents; provided that no Purchaser shall have any obligation to a Company Indemnitee hereunder
with respect to Losses directly resulting from the gross negligence or willful misconduct of that Company Indemnitee, as determined
by a court of competent jurisdiction by a final and nonappealable judgment.

 

6.6       
Counterparts; Signatures. This Agreement may be executed in any number of counterparts, each of which counterparts,
once they are executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute
but one and the same agreement. This Agreement and the Transaction Documents may be executed by any party to this Agreement or
any of the Transaction Documents by original signature, facsimile and/or electronic signature.

 

6.7       
Binding Effects; Assignment. This Agreement shall be binding upon, and inure to the benefit of, each Purchaser, the
Company and their respective successors, assigns, representatives and heirs. The Company shall not assign any of its rights nor
delegate any of its obligations under Transaction Documents without the prior written consent of such Purchaser.

 

6.8       
Headings. Captions contained in this Agreement are inserted only as a matter of convenience and in no way define,
limit or extend the scope or intent of this Agreement or any provision of this Agreement and shall not affect the construction
of this Agreement.

 

6.9       
Entire Agreement. This Agreement, together with the other Transaction Documents, contains the entire agreement between
the parties hereto with respect to the transactions contemplated herein and therein and supersedes all prior representations, agreements,
covenants and understandings, whether oral or written, related to the subject matter of this Agreement and the other Transaction
Documents. The Purchasers make no covenants to the Company, including, but not limited to, any commitments to provide any additional
financing to the Company.

 

6.10   
GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED
BY, AND CONSTRUED AND INTERPRETED EXCLUSIVELY IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO ANY
CONFLICT OF LAWS.

 

6.11   
Severability of Provisions. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating
the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.

 

6.12   
Conflict. In the event of any conflict between this Agreement and any of the other Transaction Documents, the terms
and provisions of the Transaction Documents so chosen by the Purchasers shall govern and control.

 

6.13   
Customer Identification - USA Patriot Act Notice; OFAC and Bank Secrecy Act. Each Purchaser hereby notifies the Company
that, pursuant to the requirements of the Act and such Purchaser’s policies and practices, each Purchaser is required to
obtain, verify and record certain information and documentation that identifies the Company, which information includes the name
and addresses of the Company and such other information that will allow such Purchaser to identify the Company in accordance with
the Act. In addition, the Company shall (a) ensure that no person who owns a controlling interest in or otherwise controls the
Company is or shall be listed on the Specially Designated Nationals and Blocked Person List or other similar lists maintained by
OFAC, the Department of the Treasury or included in any Executive Orders, (b) not use or permit the use of the proceeds of the
Notes to violate any of the foreign asset control regulations of OFAC or any enabling statute or Executive Order relating thereto,
and (c) comply, and cause any of its Subsidiaries to comply, with all applicable Bank Secrecy Act laws and regulations, as
amended.

 

 

 

    	 	30	 

     

    

 

6.14   
JURISDICTION; WAIVER. THE COMPANY ACKNOWLEDGES THAT THIS AGREEMENT IS BEING SIGNED BY THE PURCHASERS IN PARTIAL CONSIDERATION
OF THE PURCHASERS’ RIGHT TO ENFORCE IN THE JURISDICTION STATED BELOW THE TERMS AND PROVISION OF THIS AGREEMENT AND THE TRANSACTION
DOCUMENTS. THE COMPANY IRREVOCABLY CONSENTS TO THE EXCLUSIVE AND SOLE JURISDICTION IN NEW YORK, NEW YORK AND VENUE IN ANY FEDERAL
OR STATE COURT IN NEW YORK, NEW YORK FOR SUCH PURPOSES AND WAIVES ANY AND ALL RIGHTS TO CONTEST SAID JURISDICTION AND VENUE AND
ANY OBJECTION THAT NEW YORK, NEW YORK IS NOT CONVENIENT. THE COMPANY WAIVES ANY RIGHTS TO COMMENCE ANY ACTION AGAINST THE PURCHASERS
IN ANY JURISDICTION EXCEPT NEW YORK, NEW YORK. THE PURCHASERS AND THE COMPANY HEREBY EACH EXPRESSLY WAIVE ANY AND ALL RIGHTS TO
A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER PARTY WITH RESPECT TO
ANY MATTER WHATSOEVER RELATING TO, ARISING OUT OF OR IN ANY WAY CONNECTED WITH THE LOAN, THE TRANSACTION DOCUMENTS AND/OR THE TRANSACTIONS
WHICH ARE THE SUBJECT OF THE TRANSACTION DOCUMENTS.

 

6.15   
SERVICE OF PROCESS. SOLELY TO THE EXTENT PROVIDED BY APPLICABLE LAW, SHOULD ANY PARTY, AFTER BEING SERVED, FAIL TO
APPEAR OR ANSWER TO ANY SUMMONS, COMPLAINT, PROCESS OR PAPERS SO SERVED WITHIN THE NUMBER OF DAYS PRESCRIBED BY LAW AFTER THE DELIVERY
OR MAILING THEREOF, SUCH PARTY SHALL BE DEEMED IN DEFAULT AND AN ORDER AND/OR JUDGMENT MAY BE ENTERED BY THE COURT AGAINST AS DEMANDED
OR PRAYED FOR IN SUCH SUMMONS, COMPLAINT, PROCESS OR PAPERS.

 

6.16   
Survival. The representations, and warranties of the Company and each Purchaser herein and/or in the other Transaction
Documents shall survive the execution and delivery hereof and the Closing Date; the obligations, Liabilities, agreements and covenants
of the Company and each Purchaser set forth herein and/or in the other Transaction Documents shall survive the execution and delivery
hereof and the Closing Date, as shall all rights and remedies of the Company and each Purchaser set forth in this Agreement and/or
in any of the other Transaction Documents.

 

6.17   
No Integration. Neither the Company, nor any of its affiliates, nor any person acting on behalf of the Company or
such affiliate, will sell, offer for sale, or solicit offers to buy or otherwise negotiate with respect to any security (as defined
in the Securities Act) which will be integrated with the sale and/or issuance of any of the Securities in a manner which would
require the registration of the Securities under the Securities Act, or require stockholder approval, under the rules and regulations
of the Trading Market for the Common Stock. The Company will take all action that is appropriate or necessary to assure that its
offerings of other securities will not be integrated for purposes of the Securities Act or the rules and regulations of the Trading
Market, with the issuance of Securities contemplated herein.

 

6.18   
No Frustration. From and after the date hereof and so long as the Note is outstanding, the Company, nor any of its
respective officers, employees, directors, agents or other representatives, will, without the prior written consent of the Purchaser
(which consent may be withheld, delayed or conditioned in the Purchaser’s sole discretion), effect, enter into, announce
or recommend to its stockholders any agreement, plan, arrangement or transaction (or issue, amend or waive any security) that would
or would reasonably be expected to restrict, delay, conflict with or impair the ability or right of the Company to timely perform
its obligations under the Transaction Documents.

 

6.19   
Finders’ Fees. Each party represents that it neither is nor will be obligated for any finders’ fee or
commission in connection with this transaction, except as set forth herein. The Company shall indemnify and hold harmless each
Purchaser from any liability for any commission or compensation in the nature of a finders’ fee (and the costs and expenses
of defending against such liability or asserted liability) for which the Company or any of its officers, employees or representatives
is responsible.

 

 

 

    	 	31	 

     

    

 

6.20   
Rule 144 Availability; Public Information. At all times from the date hereof through and including the date none
of the Securities is outstanding (the “Required Period”), the Company shall ensure the Purchaser can sell the
Underlying Shares pursuant to and in accordance with Rule 144 under the Securities Act. If (i) at any time during the Required
Period, the Company shall fail for any reason to satisfy the current public information requirement under Rule 144(c) under the
Securities Act (a “Public Information Failure”), or (ii) the Company shall fail to take such action as
is reasonably requested by the Purchaser to enable the Purchaser to sell the any of the Securities pursuant to Rule 144 under the
Securities Act (including, without limitation, delivering all such legal opinions, consents, certificates, resolutions and instructions
to the Company’s transfer agent as may be reasonably requested from time to time by the Purchaser and otherwise fully cooperate
with Purchaser and Purchaser’s broker to effect such sale of the Securities pursuant to Rule 144 under the Securities Act)
(a “Process Failure”), then, in either case, in addition to the Purchaser’s other available remedies,
the Company shall pay to the Purchaser, as liquidated damages and not as a penalty, by reason of any such delay in or reduction
of its ability to sell any Underlying Shares, an amount in cash equal to five percent (5.0%) of the conversion amount of the Notes
being requested by the Purchaser pursuant to a Notice of Conversion (as defined in the Notes) that such Purchaser is unable to
receive shares without a restrictive legend due to a Public Information Failure or Process Failure, as applicable, to become payable
on such day that such Notice of Conversion is submitted, and on every thirtieth (30th) day (pro rated for periods totaling less
than thirty (30) days) thereafter until (a) in the case of a Process Failure, the date such Process Failure is cured, or (b) in
the case of a Public Information Failure, the earlier of (1) the date such Public Information Failure is cured and (2) such time
that such public information is no longer required for the Purchaser to transfer the Securities pursuant to Rule 144 under the
Securities Act. Notwithstanding the foregoing, the maximum amount of payments that must be paid by the Company pursuant to this
Section 6.20 shall be an amount equal to fifteen percent (15%) of the conversion amount of the Notes being requested
by the Purchaser pursuant to the Notice of Conversion. The payments to which the Purchaser shall be entitled pursuant to this Section
6.20 are referred to herein as “Rule 144 Failure Payments”. Rule 144 Failure Payments shall be paid on the
earlier of (i) the last day of the calendar month during which such Rule 144 Failure Payments are incurred and (ii) the third (3rd)
Trading Day after the event or failure giving rise to the Rule 144 Failure Payments is cured.

 

6.21    Termination.
This Agreement can be terminated by the mutual written consent of the Company and the Purchasers.

 

[BALANCE OF PAGE INTENTIONALLY LEFT BLANK;

SIGNATURE PAGE FOLLOWS]

 

 

 

    	 	32	 

     

    

 

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

 

	 	
        THE COMPANY:

         

        

        

        

        Dthera Sciences

         

         

        By:    /s/ Edward Cox                         

        Name: Edward Cox

        Title: Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

    	 	33	 

     

    

 

PURCHASER
SIGNATURE PAGES TO Dthera Sciences SECURITIES PURCHASE AGREEMENT

 

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

 

Name of Purchaser:    Ionic Ventures
LLC                                                                                         

 

Signature of Authorized Signatory of
Purchaser:      /s/_Keith Coulston                                    

 

Name of Authorized Signatory:      Keith
Coulston                                                                          

 

Title of Authorized Signatory:      Partner                                                                                          

 

Email Address of Authorized Signatory:
       keith@ionicventures.com                                                 

 

Facsimile Number of Authorized Signatory: __________________________________________

 

Address for Notice to Purchaser:

 

5328 Yacht Haven Grande

Box # 15 / Suite C201

St. Thomas, VI 00802

 

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

 

 

 

EIN Number: _________________________

 

 

 

    	 	34

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00287-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00287-of-00352.parquet"}]]