Document:

Enertopia Corporation - Exhibit 10.1 - Filed by newsfilecorp.com

Enertopia Corporation

950-1130 West Pender Street 
British Columbia,
Canada V6E 4A4 

August 12, 2016 

Genesis Water Technologies 
555 Winderley Place Suite 300

Maitland, FL 32751 USA
Tel: +1 321 280 2742
Fax: +1 407 792 2603

Attention: Nick Nicholas 

Dear Sir: 

Re:        Letter of
Intent

This binding Letter of Intent ("LOI") shall set forth
the basic terms of the recent discussions between Enertopia Corporation
("Enertopia") and Genesis Water Technologies, Inc. ("GWT")
with regard to the acquisition by Enertopia (the "Acquisition") of the
exclusive worldwide licensing rights (the "Licensing Rights") by
Enertopia of all of the technology used in the process of recovering and
extraction of battery grade lithium carbonate powder Li2CO3 grading 99.5% or
higher purity from brine solutions (the "Technology") and covered under
patent pending process #XXXXXX (the "Pending Patent"). 

	 	1. 	
      Exclusive Licensing Structure. In accordance with
      the terms of a formal and Definitive Agreement (the “Definitive
      Agreement”) to be entered into between Enertopia and GWT, Enertopia
      shall acquire 100% of the Licensing Rights for the Technology in
      accordance with the exclusive licensing structure set forth below (the
      "Licensing Structure"). The terms of the Exclusive Licensing
      Structure shall be as follows:

	 	(a) 	
      Upon the execution of this LOI, Enertopia shall issue to
      GWT 250,000 common shares.

	 	 	 
	 	(b) 	
      Within 30 days of closing of the Definitive Agreement,
      which is to occur on or before September 15, 2016 or such other date as
      the Parties may agree, acting reasonably (the "Closing"), Enertopia
      shall pay to GWT, the sum of $10,000 for bench testing brine or synthetic
      brine samples enriched in lithium.

	 	 	 
	 	(c) 	
      Upon the successful bench scale testing of recovering
      battery grade Lithium carbonate Li2CO3 from brine or synthetic brine
      samples, as audited by a 3rd party lab, that verifies the
      results of the June 6/17/2016 feasibility report commissioned by
      Enertopia, Enertopia shall issue to GWT 250,000 common shares.

	 	 	 
	 	(d) 	
      Upon the Pending Patent #XXXX having been approved by the
      U.S. Patent and Trademark Office and evidence thereof having been provided
      to Enertopia, Enertopia shall issue 250,000 common shares to
  GWT.

	 	(e) 	
      Enertopia shall pay the costs for the test pilot plant
      and associated facilities with a capacity of 50 gallons per minute, such
      costs estimated to be US$2,150,000 and not to exceed US$ 2,500,000
      including building envelope and such testing to be completed by 6 months
      after final start up.

	 	 	 
	 	(f) 	
      Enertopia shall also make the following anniversary
      payments following Closing.

	 	(i) 	
      For 2017, the greater of 10% of Enertopia net sales of
      battery grade Li2CO3 from brine sources or $50,000, such first anniversary
      payment becoming due on or before the one year anniversary of the signing
      of the definitive agreement, provided however that Enertopia shall have
      the option to satisfy this payment through the issuance of treasury units
      (each, "Unit"), with each Unit consisting of one common share of
      Enertopia and one common share purchase warrant of Enertopia (each,
      "Warrant"), with each Warrant being exercisable for a period of 36
      months from issuance at a price 1.5 times above the minimum unit pricing
      allowed by applicable stock exchange policies at such time and based on
      the previous 10 day volume weighted average pricing on the Canadian Stock
      Exchange ("CSE");

	 	 	 
	 	(ii) 	
      For 2018, the greater of 10% of Enertopia net sales of
      battery grade Li2CO3 from brine sources or $150,000, such second
      anniversary payment becoming due on or before the second anniversary of
      the signing of the definitive agreement; and

	 	 	 
	 	(iii) 	
      For 2019, the greater of 10% of Enertopia net sales of
      battery grade Li2CO3 from brine sources or $200,000 per annum, each such
      anniversary payment becoming due on or before the respective anniversary
      of the signing of the definitive agreement; and

	 	 	 
	 	(iv) 	
      For 2020, the greater of 10% of Enertopia net sales of
      battery grade Li2CO3 from brine sources or $200,000 per annum, each such
      anniversary payment becoming due on or before the respective anniversary
      of the signing of the definitive agreement; and

	 	 	 
	 	(v) 	
      For 2021, the greater of 10% of Enertopia net sales of
      battery grade Li2CO3 from brine sources or $200,000 per annum, each such
      anniversary payment becoming due on or before the respective anniversary
      of the signing of the definitive agreement; and

	 	 	 
	 	(vi) 	
      For 2022, the greater of 10% of Enertopia net sales of
      battery grade Li2CO3 from brine sources or $200,000 per annum, each such
      anniversary payment becoming due on or before the respective anniversary
      of the signing of the definitive agreement; and

	 	 	 
	 	(vii) 	
      For 2023, the greater of 10% of Enertopia net sales of
      battery grade Li2CO3 from brine sources or $200,000 per annum, each such
      anniversary payment becoming due on or before the respective anniversary
      of the signing of the definitive agreement.

	 	 	 
	 		
      Note net sales noted above in f.(i) to (vii) to be
      defined in the definitive agreement.

	 	(g) 	
      Licensee life of seven (7) years from signing on the
      definitive agreement with first right of refusal.

	 	 	 
	 	(h) 	
      Upon proven commercial viability of test plant Enertopia
      will source location and capital for commercial production plant with a
      minimum capacity of 250 gallons per minute.

	 	2. 	
      Definitive Agreement and Closing. Acceptance of
      this LOI shall be followed by the negotiation and acceptance of the
      Definitive Agreement which shall incorporate the terms and conditions of
      this LOI and such other terms, conditions, representations and warranties
      as are customary for transactions of this nature or as may be reasonably
      requested by the Parties. This LOI does not set forth all of the matters
      upon which agreement must be reached in order for the proposed acquisition
      to be consummated. Completion of the Definitive Agreement shall be
      followed with Closing of the Acquisition on or before September 15, 2016,
      or such other date as the Parties may agree, acting reasonably.

	 	 	 
	 	3. 	
      GWT Support Agreement. The Definitive Agreement
      will provide for the implementation of a Services Support agreement by GWT
      to provide technical and consumables support at cost plus 10% during the
      tenure of the licensing agreement.

	 	 	 
	 	4. 	
      Binding Nature. This LOI is intended to create
      binding obligations between the Parties, to be replaced and superseded by
      the Definitive Agreement.

	 	 	 
	 	5. 	
      Conditions Precedent. Execution of the Definitive
      Agreement shall be conditional upon:

	 	a. 	
      Due Diligence. Completion of a satisfactory due
      diligence review by each of Enertopia and GWT which due diligence reviews
      shall be completed or this condition waived on or before execution of the
      Definitive Agreement;

	 	 	 
	 	b. 	
      Board Approval. Approval by the board of directors
      of Enertopia prior to execution of the Definitive Agreement; and

	 	 	 
	 	c. 	
      Approval by the board of directors of GWT prior to the
      execution of the Definitive Agreement.

	 	6. 	
      Exclusive Dealing. During the period commencing on
      the closing date, August 12, 2016, of this LOI until September 15, 2016 or
      such other date as agreed to between the parties each of Enertopia and GWT
      (the "Exclusivity Period"), GWT will not enter into any agreement,
      discussion, or negotiation with, or provide information to, or solicit,
      encourage, entertain or consider any inquiries or proposals from, any
      other corporation, or other person with respect to the recovery of Lithium
      using GWT’s technology pending completion of Definitive Purchase
      Agreement.

	 	 	 
	 	7. 	
      Expenses. Each Party shall be responsible for such
      Party's own costs and charges incurred with respect to the transactions
      contemplated herein including, without limitation, all costs and charges
      incurred prior to the date of this LOI and all legal and accounting fees
      and disbursements relating to preparing the Definitive Agreement or
      otherwise relating to the Acquisition.

	 	 	 
	 	8. 	
      Access to Information. Upon acceptance of this LOI
      and until the earlier of completion of the Acquisition or September
      15,2016 or such other date as agreed to between the parties each of
      Enertopia and GWT will allow the other and their authorized
      representatives, including legal counsel and consultants, full, free and
      unfettered access to all information pertaining to the
  closing of the Definitive Agreement. Each of Enertopia and GWT
      agree that all information and documents so obtained will be kept
      confidential and the contents thereof will not be disclosed to any person
      without the prior written consent of the other, all as further set out in
      Section 8 hereof, provided however, that GWT acknowledges that Enertopia
      has certain disclosure obligations pursuant to securities regulatory
      requirements and the policies of the CSE.

	 	9. 	
      Confidentiality.

	 	a. 	
      Each of Enertopia and GWT acknowledge that each will be
      providing to the other information that is non-public, confidential, and
      proprietary in nature (the "Confidential Information"). Each of
      Enertopia and GWT (and their respective affiliates, representative, agents
      and employees) will keep the Confidential Information confidential and
      will not, except as otherwise provided below, disclose such information or
      use such information for any purpose other than for negotiation of the
      Definitive Agreement and the evaluation and consummation of the worldwide
      exclusive licensing agreement provided however that this provision shall
      not apply to information that: (i) becomes generally available to the
      public absent any breach of this provision; (ii) was available on a
      non-confidential basis to a Party prior to its disclosure pursuant to this
      LOI; or (iii) becomes available on a non-confidential basis from a third
      party who is not bound to keep such information confidential.

	 	 	 
	 	b. 	
      Each Party hereto agrees that it will not make any public
      disclosure of the existence of this LOI or of any of its terms without
      first advising the other party of the proposed disclosure, unless such
      disclosure is required by applicable law or regulation, and in any event
      the Party contemplating disclosure will inform the other Party of and
      obtain its consent to the form and content of such disclosure, which
      consent shall not be unreasonably withheld or delayed.

	 	 	 
	 	c. 	
      Each Party hereto agrees that immediately upon any
      discontinuance of activities by either party such that the exclusive
      worldwide licensing agreement will not be consummated, each Party will
      return to the other all Confidential
Information.

	 	10. 	
      Conduct of Business. During the period during
      which this LOI remains in effect, GWT will conduct its business in a
      reasonable and prudent manner in accordance with past practices, preserve
      its existing business organization and relationships, preserve and protect
      its properties and conduct its business in compliance with all applicable
      laws and regulations.

	 	 	 
	 	11. 	
      Termination. In the event that this LOI is not
      superseded by the Definitive Agreement and/or Closing or before September
      15, 2016, or such other date as the Parties may agree, acting reasonably,
      the terms of this LOI will be of no further force or
  effect.

	 	12. 	
      Governing Law. This LOI shall be construed in all
      respects under and be subject to the laws of the state of Nevada and the
      laws of United States of America applicable therein which are applicable
      to agreements entered into and performed within the state of Nevada or
      other mutually agreed upon state in the United States as per the
      definitive agreement.

	 	 	 
	 	13. 	
      Execution. This LOI may be executed in one or more
      counterparts and a facsimile or PDF counterpart of this LOI bearing the
      signature of a Party hereto shall be effective for all purposes and
      binding on each Party hereto.

If this LOI is acceptable, please communicate your acceptance
by signing below and returning such executed copy to Enertopia. Upon receipt of
a fully executed copy of this agreement, Enertopia will issue 250,000 common
shares to GWT, in such manner as you may direct, representing the initial non
refundable payment. 

Yours very truly, 

ENERTOPIA CORPORATION 

 

Per:  
_________________________________________
         
Authorized Signatory 

 

THIS LETTER OF INTENT is hereby accepted on the terms
and conditions set forth herein this 15 day of August, 2016: 

 

GLOBAL WATER TECHNOLOGIES, INC (GWT) 

 

Per:  
_________________________________________
         
Signed on behalf Signatory 

 

Per:  
_________________________________________
         
Authorized SignatorySECURITIES
PURCHASE AGREEMENT

 

This
Securities Purchase Agreement (this “Agreement”)
is dated as of August 11, 2016, by and among Cachet Financial Solutions, Inc., a Delaware corporation (the “Company”),
and the parties indicated as Purchasers on one or more counterpart signature pages hereof (each of which is a “Purchaser,”
and collectively the “Purchasers”).

 

WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to an exemption from the registration requirements
of Section 5 of the Securities Act, the Company desires to issue and sell to each Purchaser, and each Purchaser, severally and
not jointly, desires to purchase from the Company, securities of the Company as more fully described in this Agreement;

 

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

 

ARTICLE
I.

DEFINITIONS

 

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

 

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

 

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

 

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

 

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

 

“Closing”
means the closing of the purchase and sale of the Securities pursuant to Section 2.1.

 

“Closing
Date” means the Trading Day on which all of the Transaction Documents have been executed and delivered by the applicable
parties thereto, and all conditions precedent to (i) the Purchasers’ obligations to pay the Subscription Amount and (ii)
the Company’s obligations to deliver the Securities, in each case, have been satisfied or waived, but in no event later
than the third Trading Day following the date hereof.

 

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

 

    	 	 	 

    	 

    

 

“Common
Stock” means the common stock of the Company, par value $0.0001 per share, and any other class of securities into which
such securities may hereafter be reclassified or changed.

 

“Common
Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to
acquire at any time Common Stock.

 

“Company
Counsel” means Stinson Leonard Street LLP, with offices located at 150 South Fifth Street, Suite 2300, Minneapolis,
Minnesota 55402.

 

“Conversion
Price” shall have the meaning ascribed to such term in the applicable Convertible Note.

 

“Conversion
Shares” shall have the meaning ascribed to such term in the applicable Convertible Note.

 

“Convertible
Notes” means, collectively, the Convertible Term Promissory Notes in the form attached hereto as Exhibit A-1
and A-2, convertible into shares of Common Stock at the Conversion Price (subject to adjustment as provided therein).

 

“Cut
Back” shall have the meaning ascribed to such term in Section 4.2.

 

“Event”
has the meaning set forth in Section 4.3.

 

“Event
Date” has the meaning set forth in Section 4.3.

 

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

 

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

 

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

 

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

 

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

 

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

 

“Original
Issue Discount” equals five percent (5%).

 

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

 

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

 

“Purchaser
Party” shall have the meaning ascribed to such term in Section 4.8.

 

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

 

“Resale
Registration Statement” shall have the meaning ascribed to such term in Section 4.4.

 

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

 

    	 	 	 

    	 

    

 

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

 

“Securities”
means the Convertible Notes and the Warrants.

 

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

 

“Shares”
means the shares of Common Stock issuable to each Purchaser pursuant to this Agreement.

 

“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).

 

“Subscription
Amount” means, as to each Purchaser, the aggregate amount to be paid for Convertible Notes and Warrants purchased hereunder
as specified below such Purchaser’s name on the signature page of this Agreement and next to the heading “Subscription
Amount,” in United States dollars and in immediately available funds.

 

“Subsidiary”
means Cachet Financial Solutions Inc., a Minnesota corporation.

 

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

 

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

 

“Transaction
Documents” means this Agreement, the Convertible Notes, the Warrants, all exhibits and schedules thereto and any other
documents or agreements executed in connection with the transactions contemplated hereunder.

 

“Underlying
Shares” means the Conversion Shares and the Warrant Shares.

 

“Warrants”
means, collectively, the Warrants to Purchase Common Stock purchased by the Purchasers at the Closing in accordance with Section
2.2(a)(iii) hereof, which Warrants shall be in the form of Exhibit B-1 and B-2 attached hereto.

 

“Warrant
Shares” means the shares of Common Stock issuable upon exercise of the Warrants.

 

    	 	 	 

    	 

    

 

ARTICLE
II.

PURCHASE AND SALE

 

2.1 Closing.
On the Closing Date, upon the terms and subject to the conditions set forth herein, substantially concurrent with the execution
and delivery of this Agreement by the parties hereto, the Company agrees to sell, and the Purchasers, severally and not jointly,
collectively agree to purchase in the aggregate, allocated among the Purchasers pro rata based on their respective Subscription
Amounts as set forth on the signature pages hereto executed by the Purchasers, (a) Convertible Notes with a principal amount of
$526,315 for a purchase price of $500,000, and (b) Warrants to purchase up to an aggregate of 85,348 shares of Common Stock, subject
to adjustment as provided therein, as determined pursuant to Section 2.2(a)(iii). Each Purchaser shall deliver to the Company,
via wire transfer of immediately available funds equal to such Purchaser’s Subscription Amount as set forth on the signature
page hereto executed by such Purchaser and promptly following the termination of the offering the Company shall deliver to each
Purchaser its pro rata portion of the Convertible Notes and a Warrant as determined pursuant to Section 2.2(a), and the Company
and each Purchaser shall deliver the other items set forth in Section 2.2 at the Closing.

 

2.2 Deliveries.

 

(a) On
or prior to the Closing Date, or such other date referred to below, the Company shall deliver or cause to be delivered to each
Purchaser the following:

 

(i) this
Agreement duly executed by the Company;

 

(ii) Convertible
Notes, registered in such name or names as such Purchaser shall specify to the Company in writing, in the principal amount allocated
to such Purchaser, which shall be allocated among the Purchasers based on such Purchaser’s pro rata share of the aggregate
Subscription Amount payable by all Purchasers; and

 

(iii) a
Warrant registered in the name of such Purchaser to purchase its pro rata share of the aggregate 85,348 shares of Common Stock
issuable to all Purchaser under all Warrants issuable hereunder, subject to adjustment therein, and the Warrants shall be allocated
among the Purchasers based on such Purchaser’s pro rata share of the aggregate Subscription Amount payable by all Purchasers.

 

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

 

(i) this
Agreement duly executed by such Purchaser; and

 

(ii) such
Purchaser’s Subscription Amount by wire transfer to the account specified in writing by the Company.

 

    	 	 	 

    	 

    

 

2.3 Closing
Conditions.

 

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

 

(i) all
representations and warranties of the Purchasers contained herein shall have been accurate in all material respects when made
and on the Closing Date (unless as of a specific date therein in which case they shall have been accurate as of such date);

 

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

 

(iii) there
shall have been no Material Adverse Effect with respect to the Company since the date hereof.

 

(iv) the
Company shall have obtained all necessary “blue sky” law permits and qualifications, or have the availability of exemptions
therefrom, required by any state for the offer and sale of the Securities and issuance of the Underlying Shares; and

 

(v) each
Purchaser shall have delivered all of the items set forth in Section 2.2(b) of this Agreement.

 

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

 

(i) all
representations and warranties of the Company contained herein shall have been accurate in all material respects when made and
on the applicable Closing Date (unless as of a specific date therein in which case they shall have been accurate as of such date);

 

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

 

(iii) the
Company shall have delivered all of the items set forth in Section 2.2(a) of this Agreement; and

 

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

 

ARTICLE
III.

REPRESENTATIONS AND WARRANTIES

 

3.1 Representations
and Warranties of the Company. Except as set forth in the Company’s SEC Reports, which shall qualify any representation
or warranty otherwise made herein to the extent of the disclosure contained in the corresponding section of the SEC Reports, the
Company hereby makes the following representations and warranties to each Purchaser:

 

(a) Subsidiaries.
All of the direct and indirect subsidiaries of the Company are set forth in the Company’s SEC Reports. The Company owns,
directly or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any Liens except
for Liens in connection with financing arrangements disclosed in the SEC Reports, and all of the issued and outstanding shares
of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights
to subscribe for or purchase securities.

 

    	 	 	 

    	 

    

 

(b) Organization
and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly
existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power
and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company
nor any Subsidiary is in violation nor default of any of the provisions of its respective certificate or articles of incorporation,
bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business
and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted
or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as
the case may be, would not reasonably be expected to result in: (i) a material adverse effect on the legality, validity or enforceability
of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business or condition (financial
or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company’s
ability to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii)
or (iii), a “Material Adverse Effect”).

 

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

 

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

 

    	 	 	 

    	 

    

 

(e) Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other
Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than: (i)
any filings with the Commission pursuant to Sections 4.1 and 4.2, and (ii) the notice and/or application(s) to each applicable
Trading Market for the issuance and sale of the Securities and the listing of the Underlying Shares for trading thereon in the
time and manner required thereby, if any (collectively, the “Required Approvals”).

 

(f) Issuance
of the Securities. The Shares are duly authorized and, when issued and paid for in accordance with the applicable Transaction
Documents, will be duly and validly issued, fully paid and non-assessable, free and clear of all Liens imposed by the Company
other than restrictions on transfer provided for in the Transaction Documents and under applicable state and federal securities
laws. The Underlying Shares, when issued in accordance with the terms of the Transaction Documents, will be validly issued, fully
paid and non-assessable, free and clear of all Liens imposed by the Company other than restrictions on transfer provided for in
the Transaction Documents. The Underlying Shares have been duly reserved for issuance upon exercise of the Warrants.

 

(g) Capitalization.
The issued and outstanding shares of Common Stock have been duly authorized and validly issued, are fully paid and nonassessable,
have been issued in compliance with all federal and state securities laws, were not issued in violation of or subject to any preemptive
rights or other rights to subscribe for or purchase securities, and conform in all material respects to the description thereof
contained in the Company’s filings with the SEC. The Company has not issued any capital stock except as may be disclosed
in SEC Reports, other than pursuant to the exercise of employee stock options under the Company’s stock option plans, the
issuance of shares of Common Stock to employees pursuant to the Company’s employee stock purchase plans and pursuant to
the conversion and/or exercise of Common Stock Equivalents disclosed in SEC Reports. No Person has any right of first refusal,
preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the Transaction
Documents. Except as a result of the purchase and sale of the Securities, and except as disclosed in the SEC Reports, there are
no outstanding options, warrants, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities,
rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or
acquire, any shares of Common Stock, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary
is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents. Except as disclosed in the Company’s
SEC Reports, the issuance and sale of the Securities will not obligate the Company to issue shares of Common Stock or other securities
to any Person (other than the Purchasers) and will not result in a right of any holder of Company securities to adjust the exercise,
conversion, exchange or reset price under any of such securities.

 

    	 	 	 

    	 

    

 

(h) SEC
Reports; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents required
to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof,
for the two (2) years preceding the date hereof (or such shorter period as the Company was required by law or regulation to file
such material) including the Company’s Registration Statement on Form S-1 filed with the Commission on July 20, 2016 (which has
not yet been declared effective by the Commission) (the foregoing materials, including the exhibits thereto and documents incorporated
by reference therein, being collectively referred to herein as the “SEC Reports”). As of their respective dates, the
SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable,
and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading. The financial statements of the Company included in the SEC Reports comply in all material respects
with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the
time of filing. Such financial statements have been prepared in accordance with United States generally accepted accounting principles
applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in such financial
statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP,
and fairly present in all material respects the financial position of the Company and its consolidated Subsidiaries as of and
for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited
statements, to normal, immaterial, year-end audit adjustments.

 

(i) Material
Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial statements included
within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the date hereof, (i) there
has been no event, occurrence or development that has had or that could reasonably be expected to result in a Material Adverse
Effect, (ii) the Company has not incurred any material 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 filings made with the Commission, (iii)
the Company has not altered its method of accounting, and (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. Except as disclosed in the Company’s Current Report on Form 8-K filed on July 15, 2016, the Company does not
have pending before the Commission any request for confidential treatment of information.

 

    	 	 	 

    	 

    

 

(j) Litigation.
Except as disclosed in the Company’s SEC Reports, there is no action, suit, inquiry, notice of violation, proceeding or
investigation pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any
of their respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority
(federal, state, county, local or foreign) (collectively, an “Action”) which (i) adversely affects or challenges the
legality, validity or enforceability of any of the Transaction Documents or the Securities or (ii) could, if there were an unfavorable
decision, have or reasonably be expected to result in a Material Adverse Effect. The Commission has not issued any stop order
or other order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange
Act or the Securities Act.

 

(k) Compliance.
Except as disclosed in the Company’s SEC Reports, neither the Company nor any Subsidiary: (i) is in default under or in violation
of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by
the Company or any Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it is in default under
or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party
or by which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation
of any judgment, decree or order of any court, arbitrator or other governmental authority or (iii) is or has been in violation
of any statute, rule, ordinance or regulation of any governmental authority, including without limitation all foreign, federal,
state and local laws relating to taxes, environmental protection, occupational health and safety, product quality and safety and
employment and labor matters, except in each case described in clauses (i) – (iii) above as would not reasonably be expected
to result in a Material Adverse Effect.

 

(l) 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,
in each case free and clear of all Liens, except for (i) Liens as do not materially interfere with the use made and proposed to
be made of such property by the Company and the Subsidiaries, (ii) Liens for the payment of federal, state or other taxes, for
which appropriate reserves have been made in accordance with GAAP and, the payment of which is neither delinquent nor subject
to penalties and (iii) Liens in connection with financing arrangements disclosed in the SEC Reports.

 

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

 

    	 	 	 

    	 

    

 

(n) [Reserved.]

 

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

 

(p) Investment
Company. The Company (including its subsidiaries) is not an “investment company” or an “affiliated person”
of, or “promoter” or “principal underwriter” for an investment company, within the meaning of the Investment
Company Act of 1940 and will not be deemed an “investment company” as a result of the transactions contemplated by
this Agreement.

 

(q) Related
Party Transactions. To the knowledge of the Company, no material transaction has occurred between or among the Company and
any of its affiliates (including, without limitation, any of its subsidiaries), officers or directors or any affiliate or affiliates
of any such affiliate, officer or director that with the passage of time will be required to be disclosed pursuant to Sections
13, 14 or 15(d) of the Exchange Act, other than (1) those transactions that have already been so disclosed, or will be so disclosed
on or before the Closing Date, in the Company’s SEC Reports, and (2) a securities purchase agreement to be entered into
on or about the date hereof with each of Michael J. Hanson and James L. Davis, each a director of the Company, pursuant to which
such directors will collectively acquire (A) convertible term promissory notes in an aggregate principal amount of $526,315 for
an aggregate purchase price of $500,000 and (B) warrants to purchase an aggregate of 85,348 shares of Common Stock.

 

(r) No
General Solicitation. Neither the Company, nor any of its affiliates, nor any person action on its or their behalf, has engaged
in any form of general solicitation or general advertising (within the meaning of Regulation D promulgated under the Securities
Act) in connection with the offer or sale of the Securities.

 

    	 	 	 

    	 

    

 

(s) No
Manipulation; Disclosure of Information. The Company has not taken and will not take any action designed to or that might
reasonably be expected to cause or result in an unlawful manipulation of the price of the Common Stock to facilitate the sale
or resale of the Securities. The Company confirms that, to its knowledge, with the exception of the proposed sale of Securities
as contemplated herein (as to which the Company makes no representation), neither it nor any other person acting on its behalf
has provided any of the Purchasers or their agents or counsel with any information that constitutes or might constitute material,
non-public information. The Company understands and confirms that the Purchasers will be relying on the foregoing representations
in effecting transactions in securities of the Company. All disclosures provided to the Purchasers regarding the Company, its
business and the transactions contemplated hereby furnished by the Company are true and correct and do 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.

 

(t) Forward-Looking
Statements. No forward-looking statement (within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange
Act) made by the Company or any of its officers or directors contained in the SEC Documents, or made available to the public generally
since December 31, 2015, has been made or reaffirmed without a reasonable basis or has been disclosed other than in good faith.

 

(u) No
Additional Agreements. Other than with respect to closing mechanics, the Company has no other agreements or understandings
(including, without limitation, side letters) with any Purchaser or other person to purchase any of the Securities on terms more
favorable to such person than as set forth herein.

 

(v) No
“Bad Actor” Disqualification. The Company has exercised reasonable care, in accordance with SEC rules and guidance,
and has conducted a factual inquiry, the nature and scope of which reflect reasonable care under the relevant facts and circumstances,
to determine whether any Covered Person (as defined below) is subject to any of the “bad actor” disqualifications
described in Rule 506(d)(1)(i) to (viii) under the Securities Act (“Disqualification Events”). To the Company’s
knowledge, after conducting such sufficiently diligent factual inquiries, no Covered Person is subject to a Disqualification Event,
except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3) under the Securities Act. The Company has complied, to
the extent applicable, with any disclosure obligations under Rule 506(e) under the Securities Act. “Covered Persons”
are those persons specified in Rule 506(d)(1) under the Securities Act, including the Company; any predecessor or affiliate of
the Company; any director, executive officer, other officer participating in the offering, general partner or managing member
of the Company; any beneficial owner of 20% or more of the Company’s outstanding voting equity securities, calculated on
the basis of voting power; any promoter (as defined in Rule 405 under the Securities Act) connected with the Company in any capacity
at the time of the sale of the Convertible Notes; and any person that has been or will be paid (directly or indirectly) remuneration
for solicitation of purchasers in connection with the sale of the Convertible Notes (a “Solicitor”), any general partner
or managing member of any Solicitor, and any director, executive officer or other officer participating in the offering of any
Solicitor or general partner or managing member of any Solicitor.

 

    	 	 	 

    	 

    

 

Each
Purchaser, for itself and for no other Purchaser, acknowledges and agrees that the representations contained in Section 3.1 shall
not modify, amend or affect the Company’s right to rely on such Purchaser’s representations and warranties contained
in this Agreement or any representations and warranties contained in any other Transaction Document or any other document or instrument
executed or delivered in connection with this Agreement or the consummation of the transactions contemplated hereby.

 

3.2 Representations
and Warranties of the Purchasers. Each Purchaser, for itself and for no other Purchaser, hereby represents and warrants as
of the date hereof and as of the Closing Date to the Company as follows (unless as of a specific date therein):

 

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

 

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

 

    	 	 	 

    	 

    

 

 

(c) Opportunity
to Obtain Information. Such Purchaser acknowledges that representatives of the Company have made available to such Purchaser
the opportunity to review the books and records of the Company and its Subsidiaries and to ask questions of and receive answers
from such representatives concerning the business and affairs of the Company and its Subsidiaries. Such Purchaser further acknowledges
the availability of the Company’s SEC Reports, specifically include the Company’s Annual Report on Form 10-K for the
year ended December 31, 2015.

 

(d) Purchaser
Status. At the time such Purchaser was offered the Securities, it was, and as of the date hereof it is, and on each date on
which it converts any portion of a Convertible Note or exercises any Warrants, it will be an “accredited investor”
as defined in Rule 501 under the Securities Act.

 

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

 

(f) General
Solicitation. Such Purchaser is not purchasing the Securities as a result of any advertisement, article, notice or other communication
regarding the Securities or any other securities of the Company published in any newspaper, magazine or similar media or broadcast
over television or radio or presented at any seminar or any other general solicitation or general advertisement. Such Purchaser
has a pre-existing relationship with the Company.

 

(g) No
Investment, Tax or Legal Advice. Each Purchaser understands that nothing in the Company SEC Documents, this Agreement, or
any other materials presented to the Purchaser in connection with the purchase and sale of the Securities constitutes legal, tax
or investment advice. Each Purchaser has consulted such legal, tax and investment advisors as it, in its sole discretion, has
deemed necessary or appropriate in connection with its purchase of Securities.

 

(h) Certain
Transactions and Confidentiality. Other than consummating the transactions contemplated hereunder, such Purchaser has not,
nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser, directly or indirectly 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 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, 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).

 

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

 

    	 	 	 

    	 

    

 

ARTICLE
IV.

OTHER AGREEMENTS OF THE PARTIES

 

4.1 Reporting
Status. With a view to making available to the Purchasers the benefits of certain rules and regulations of the SEC which may
permit the sale of the Shares and Underlying Shares to the public without registration, the Company agrees to use its reasonable
efforts to file with the SEC, in a timely manner, all reports and other documents required of the Company under the Exchange Act.
The Company will otherwise take such further action as a Purchaser may reasonably request, all to the extent required from time
to time to enable such Purchaser to sell the Securities and Underlying Shares without registration under the Securities Act or
any successor rule or regulation adopted by the SEC.

 

4.2 Quotation.
So long as a Purchaser owns any of the Securities or Underlying Shares, the Company will use its reasonable efforts to maintain
the quotation of its Common Stock on the OTCQB or OTCQX, each as administered by OTC Markets Group or, in lieu thereof, on a national
securities exchange and will comply in all material respects with the Company’s reporting, filing and other obligations
under the rules of any such market or exchange, as applicable.

 

4.3 Non-Public
Information. 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 the Company believes constitutes material non-public information, unless prior
thereto such Purchaser shall have executed a written agreement regarding the confidentiality and use of such information. The
Company understands and confirms that each Purchaser shall be relying on the foregoing representations in effecting transactions
in securities of the Company. Furthermore, if the Company has disclosed any material non-public information to the Purchaser,
the Purchaser has no duty to keep such information confidential following the public announcement of the offering.

 

4.4 Resale
Registration Statement. Within 21 days following the Company’s next underwritten public offering or 90 days following the
date that the Company’s current financing plan is terminated (the “Resale Date”) the Company shall file, and
thereafter use its reasonable best efforts to effect the registration, qualification and compliance (including without limitation
the execution of an undertaking to file post-effective amendments, appropriate qualification under applicable blue sky or other
state securities laws and appropriate compliance with applicable regulations issued under the Securities Act and any other governmental
requirements or regulations) to permit or facilitate the sale and distribution of all of the Common Stock and Underlying Shares
no later than ninety (90) days after the Resale Date (such registration statement, the “Resale Registration Statement”);
provided, however, that the Company shall not be obligated to take any action to effect any such registration, qualification or
compliance:

 

    	 	 	 

    	 

    

 

(a) in
any particular jurisdiction in which the Company would be required to execute a general consent to service of process in effecting
such registration, qualification or compliance unless the Company is already subject to service in such jurisdiction and except
as may be required by the Securities Act; or

 

(b) If
a Purchaser fails to cooperate in providing the Company with all information reasonably required to be included in the Resale
Registration Statement or otherwise required to be obtained by the Company for purposes of preparing and filing the Resale Registration
Statement and any amendments thereto; provided, however, that such failure shall not affect the Company’s obligations with
respect to any Underlying Shares of any other Purchasers.

 

Once
declared effective by the Commission, the Company shall use best efforts to keep the Resale Registration Statement registering
the resale of the Underlying Shares effective during the period beginning on its effective date until the earliest of (i) such
time as all of the Common Stock and Underlying Shares shall have been sold, (ii) at least two years have passed since the Closing,
and (iii) such time as all Underlying Shares may be sold under Rule 144. For the avoidance of doubt, a Purchaser may only exercise
such resale registration rights once.

 

4.5  Registration
Deadlines. If the Company fails to file a registration statement by the Resale Date, the Company shall issue a warrant to
Purchasers for an aggregate total of 4,267 shares (adjusted for stock splits, reverse stock splits and the like) at an exercise
price of $5.55 per share (adjusted for stock splits, reverse stock splits and the like) with a five year term. The Company shall
issue a warrant for an additional 4,267 shares (adjusted for stock splits, reverse stock splits and the like) for each subsequent
30 day period for which a registration statement has not been filed.

 

4.6 Expenses.
The Company will pay all expenses incurred by the Company in complying with Section 4.4, including without limitation all registration
and filing fees, printing expenses (if required), fees and disbursements of 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 the FINRA, transfer taxes, and fees of transfer agents and registrars.

 

4.7 Use
of Proceeds. The Company shall use the net proceeds from the sale of the Securities hereunder primarily for working capital
purposes and to fund the general corporate purposes of the Company and its Subsidiaries, and to fund certain contractual obligations
relating to acquisitions and to repay certain outstanding Indebtedness (to the extent such Indebtedness shall not have earlier
converted into common stock).

 

    	 	 	 

    	 

    

 

4.8 Indemnification
of Purchasers. Subject to the provisions of this Section 4.8, the Company will indemnify and hold each Purchaser and its directors,
officers, stockholders, members, partners, employees and agents (and any other Persons with a functionally equivalent role of
a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser
(within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, stockholders,
agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles
notwithstanding a lack of such title or any other title) of such controlling persons (each, a “Purchaser Party”)
harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all
judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such
Purchaser Party may suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants
or agreements made by the Company in this Agreement or in the other Transaction Documents or (b) any action instituted against
the Purchaser Parties in any capacity, or any of them or their respective Affiliates, by any stockholder of the Company who is
not an Affiliate of such Purchaser Party, with respect to any of the transactions contemplated by the Transaction Documents (unless
such action is based upon a breach of such Purchaser Party’s representations, warranties or covenants under the Transaction
Documents or any agreements or understandings such Purchaser Party may have with any such stockholder or any violations by such
Purchaser Party of state or federal securities laws or any conduct by such Purchaser Party which constitutes fraud, gross negligence,
willful misconduct or malfeasance). If any action shall be brought against any Purchaser Party in respect of which indemnity may
be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the Company in writing, and the Company shall
have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable to the Purchaser Party. Any
Purchaser Party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but
the fees and expenses of such counsel shall be at the expense of such Purchaser Party except to the extent that (i) the employment
thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time
to assume such defense and to employ counsel, or (iii) in such action there is, in the reasonable opinion of counsel, a material
conflict on any material issue between the position of the Company and the position of such Purchaser Party, in which case the
Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel in the aggregate (i.e.,
for all Purchaser Parties). The Company will not be liable to any Purchaser Party under this Agreement (y) for any settlement
by a Purchaser Party effected without the Company’s prior written consent, which shall not be unreasonably withheld or delayed,
or (z) to the extent, but only to the extent, that a loss, claim, damage or liability is attributable to any Purchaser Party’s
breach of any of the representations, warranties, covenants or agreements made by such Purchaser Party in this Agreement or in
the other Transaction Documents.

 

4.9 Reservation
of Common Stock; Reporting Status. The Company shall maintain a reserve from its duly authorized shares of Common Stock for
issuance pursuant to the Transaction Documents in such amount as may then be required to issue all of the Underlying Shares.

 

4.10 Certain
Transactions and Confidentiality. 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 by the Company. 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, 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.

 

    	 	 	 

    	 

    

 

4.11 Transfer
Restrictions.

 

(a) The
Securities may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of any
Securities other than pursuant to an effective Resale Registration Statement or Rule 144, or to the Company, the Company may require
the transferor thereof to provide to the Company an opinion of counsel selected by the transferor and reasonably acceptable to
the Company (the fees and expenses of which shall be paid by such Purchaser), the form and substance of which opinion shall be
reasonably satisfactory to the Company, to the effect that such transfer does not require registration of such transferred Securities
under the Securities Act. As a condition of transfer, any such transferee shall agree in writing to be bound by the terms of this
Agreement and shall have the rights and obligations of a Purchaser under this Agreement.

 

(b) The
Purchasers agree to the imprinting, so long as is required by this Agreement, of a legend on any instruments evidencing the Convertible
Notes, Warrants and Underlying Shares in the following form, as applicable:

 

[NEITHER]
THIS SECURITY [NOR THE SECURITIES INTO WHICH THIS SECURITY IS [EXERCISABLE] [CONVERTIBLE]] HAS [NOT] BEEN REGISTERED WITH THE
SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933 (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO
AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED
BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.

 

(c) Certificates
evidencing the Underlying Shares shall not contain any legend (including the legend set forth in paragraph (b) above): (i) while
a registration statement (including the Resale Registration Statement) covering the resale of such security is effective under
the Securities Act, (ii) following any sale of such Underlying Shares pursuant to Rule 144, or (iii) if such legend is not required
under applicable requirements of the Securities Act. The Company shall cause its counsel to issue a legal opinion to the Company’s
transfer agent promptly after the effective date of the Registration Statement if required by the Transfer Agent to effect the
removal of the legend hereunder. If all or any portion of a Convertible Note is converted or any portion of a Warrant is exercised
at a time when the Resale Registration Statement is effective to cover the resale of the Underlying Shares, or if such Underlying
Shares may be sold under Rule 144 or if such legend is not otherwise required under applicable requirements of the Securities
Act, then such Underlying Shares shall be issued free of all legends.

 

(d) Each
Purchaser, severally and not jointly with the other Purchasers, agrees with the Company that such Purchaser will sell any Securities
pursuant to either the registration requirements of the Securities Act, including, if the sale is being effected pursuant to a
registration statement (including the Resale Registration Statement), the plan of distribution contained within such registration
statement and any applicable prospectus-delivery requirements, or an exemption therefrom.

 

    	 	 	 

    	 

    

 

ARTICLE
V.

GENERAL PROVISIONS

 

5.1 [Reserved.]

 

5.2 Fees
and Expenses. Except as expressly set forth in the Transaction Documents to the contrary, each party shall pay the fees and
expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident
to the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all transfer agent
fees, stamp taxes and other taxes and duties levied in connection with the delivery of any Securities to the Purchasers.

 

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

 

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

 

5.5 Amendments;
Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed,
in the case of an amendment, by the Company and the Purchasers holding at least 50% in interest of the Securities based on the
initial Subscription Amounts hereunder or, in the case of a waiver, by the party against whom enforcement of any such waived provision
is sought. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed
to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or
requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise
of any such right.

 

    	 	 	 

    	 

    

 

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

 

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

 

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

 

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

 

5.10 Survival.
The representations and warranties contained herein shall survive the Closing and the delivery of the Securities for a one-year
period after the Closing Date.

 

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

 

    	 	 	 

    	 

    

 

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

 

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

 

5.14 Independent
Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction Document are several
and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance
or non-performance of the obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any
other Transaction Document, and no action taken by any Purchaser pursuant hereto or thereto, shall be deemed to constitute the
Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers
are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction
Documents. Each Purchaser shall be entitled to independently protect and enforce its rights including, without limitation, the
rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser
to be joined as an additional party in any proceeding for such purpose. Each Purchaser has been represented by its own separate
legal counsel in its review and negotiation of the Transaction Documents. The Company has elected to provide all Purchasers with
the same terms and Transaction Documents for the convenience of the Company and not because it was required or requested to do
so by any of the Purchasers. It is expressly understood and agreed that each provision contained in this Agreement and in each
other Transaction Document is between the Company and a Purchaser, solely, and not between the Company and the Purchasers collectively
and not between and among the Purchasers.

 

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

 

5.16 Construction.
The parties agree that each of them and their respective counsel have reviewed and had an opportunity to revise the Transaction
Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting
party shall not be employed in the interpretation of the Transaction Documents or any amendments thereto.

 

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

 

*
* * * * * *

 

    	 	 	 

    	 

    

 

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

 

CACHET
FINANCIAL SOLUTIONS, INC.

 

	By:
    	/s/
    Bryan Meier	 
	Name:	Bryan
    Meier	 
	Title:
    	CFO	 

 

Address
for Notice:

 

18671
Lake Drive E.

Southwest
Tech Center A

Minneapolis,
Minnesota 55317

Facsimile:
(952) 698-6999

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE
PAGE FOR PURCHASER FOLLOWS]

 

    	 	 	 

    	 

    

 

[PURCHASER
SIGNATURE PAGES TO SECURITIES PURCHASE AGREEMENT]

 

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

 

Name
of Purchaser: Columbus Capital Partners, L.P.

 

Tax
ID Number/EIN: 94-3264193

 

Signature
of Authorized Signatory of Purchaser:  /s/ Matt Ockner 

 

Name
of Authorized Signatory: Matt Ockner, 

 

Title
of Authorized Signatory: Managing Member, Columbus Capital Management, LLC, General Partner

 

Email
Address of Authorized Signatory: matt@ccmfunds.com

 

Facsimile
Number of Authorized Signatory: 415-986-5130 

 

Address
for Notice to Purchaser:

 

350
California St., 22nd Floor, San Francisco, CA 94104

 

Address
for Delivery of Convertible Notes and Warrants to Purchaser (if not same as address for notice):

 

 

Subscription
Amount: $378,000

 

DWAC
Instructions – Broker no: _______________ Account no:   _______________

 

    	 	 	 

    	 

    

 

[PURCHASER
SIGNATURE PAGES TO SECURITIES PURCHASE AGREEMENT]

 

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

 

Name
of Purchaser: Columbus Capital QP Partners, L.P.

 

Tax
ID Number/EIN: 45-3042671

 

Signature
of Authorized Signatory of Purchaser:  /s/ Matt Ockner 

 

Name
of Authorized Signatory: Matt Ockner, 

 

Title
of Authorized Signatory: Managing Member, Columbus Capital Management, LLC, General Partner

 

Email
Address of Authorized Signatory: matt@ccmfunds.com

 

Facsimile
Number of Authorized Signatory: 415-986-5130 

 

Address
for Notice to Purchaser:

 

350
California St., 22nd Floor, San Francisco, CA 94104

 

Address
for Delivery of Convertible Notes and Warrants to Purchaser (if not same as address for notice):

 

 

Subscription
Amount: $122,000

 

DWAC
Instructions – Broker no: _______________   Account no:  _______________

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