INVESTMENT AGREEMENT (the “Agreement”), dated as of July 19, 2018 (the “Execution Date”),
is entered into by and between Arista Financial Corp., a Nevada corporation (the “Company”), with its principal
executive office at 51 JFK Parkway, Xxxxx Xxxxx Xxxx, Xxxxx Xxxxx, Xxx Xxxxxx 00000, and Northbridge Financial Inc, a Delaware
Corporation (the “Investor”), with its principal executive office at 00 Xxxxxx Xxxxx Xxxx, Xxxxxx, XX 00000.
the parties desire that, upon the terms and subject to the conditions contained herein, the Investor shall invest up to Five Million
Dollars ($5,000,000) to purchase the Company’s common stock, par value $0.0001 per share (the “Common Stock”);
such investments will be made in reliance upon the exemption from securities registration afforded by Section 4(a)(2) of the Securities
Act of 1933, as amended (the “1933 Act”), Rule 506 of Regulation D promulgated by the SEC under the 1933 Act,
and/or upon such other exemption from the registration requirements of the 1933 Act as may be available with respect to any or
all of the investments in Common Stock to be made hereunder; and
contemporaneously with the execution and delivery of this Agreement, the parties hereto are executing and delivering a Registration
Rights Agreement substantially in the form attached hereto as Exhibit A (the “Registration Rights Agreement”)
pursuant to which the Company has agreed to provide certain registration rights under the 1933 Act, and the rules and regulations
promulgated thereunder, and applicable state securities laws.
THEREFORE, in consideration of the foregoing recitals, which shall be considered an integral part of this Agreement, the covenants
and agreements set forth hereafter, and other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Company and the Investor hereby agree as follows:
all purposes of and under this Agreement, the following terms shall have the respective meanings below, and such meanings shall
be equally applicable to the singular and plural forms of such defined terms.
Act” shall have the meaning set forth in the recitals.
Act” shall mean the Securities Exchange Act of 1934, as amended, or any similar federal statute, and the rules and regulations
of the SEC thereunder, all as the same will then be in effect.
shall have the meaning set forth in Section 5.7.
shall have the meaning set forth in the preamble.
shall have the meaning set forth in Section 4.3.
of Incorporation” shall have the meaning set forth in Section 4.3.
shall have the meaning set forth in Section 2.5.
Date” shall have the meaning set forth in Section 2.5.
Stock” shall have the meaning set forth in the recitals.
or “Controls” shall have the meaning set forth in Section 5.7.
Fees” shall have the meaning set forth in Section 2.5.
shall have the meaning set forth in Section 2.3.
Amount” shall have the meaning set forth in Section 2.3.
Notice” shall mean a written notice sent to the Investor by the Company stating the Drawdown Amount in U.S. dollars
that the Company intends to sell to the Investor pursuant to the terms of the Agreement and stating the current number of Shares
issued and outstanding on such date.
Notice Date” shall mean the Trading Day, as set forth below, on which the Investor receives a Drawdown Notice, however
a Drawdown Notice shall be deemed delivered on (a) the Trading Day it is received by facsimile or otherwise by the Investor if
such notice is received prior to 12:00 pm Eastern Time, or (b) the immediately succeeding Trading Day if it is received by facsimile
or otherwise after 12:00 pm Eastern Time on a Trading Day. No Drawdown Notice may be deemed delivered on a day that is not a Trading
Shares Due” shall have the meaning set forth in Section 2.5.
Date” shall mean the date the SEC declares effective under the 1933 Act the Registration Statement covering the Securities.
Laws” shall have the meaning set forth in Section 4.13.
Date” shall have the meaning set forth in the preamble.
Agreements” shall mean this Agreement and the Registration Rights Agreement between the Company and the Investor as
of the date herewith.
Liabilities” shall have the meaning set forth in Section 10.
shall have the meaning set forth in Section 10.
shall have the meaning set forth in Section 10.
Period” shall mean any period of time that the Registration Statement or any supplemental registration statement becomes
ineffective or unavailable for use for the sale or resale, as applicable, of any or all of the Registrable Securities (as defined
in the Registration Rights Agreement) for any reason (or in the event the prospectus under either of the above is not current
and deliverable) during any time period required under the Registration Rights Agreement.
shall have the meaning set forth in the preamble.
Adverse Effect” shall have the meaning set forth in Section 4.1.
Common Stock Issuance” shall have the meaning set forth in Section 2.6.
Drawdown Amount” shall have the meaning set forth in Section 2.3.
Drawdown Amount” shall have the meaning set forth in Section 2.3.
Shares” shall have the meaning set forth in Section 2.5.
Market Adjustment Amount” shall have the meaning set forth in Section 2.5.
Market Share Purchase” shall have the meaning set forth in Section 2.5.
Period” shall mean the period beginning on and including the Trading Day immediately following the Effective Date and
ending on the earlier to occur of (a) the date which is thirty-six (36) months from the Effective Date; or (b) termination of
the Agreement in accordance with Section 8.
shall have the meaning set forth in Section 4.6.
Period” shall mean Twenty (20) consecutive Trading Days prior to the Drawdown Notice Date, and inclusive to the Drawdown
Market” shall mean the New York Stock Exchange, the NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the
Nasdaq Global Select Market, the OTC Markets or the OTC Bulletin Board, whichever is the principal market on which the Common
Stock is listed.
shall mean the prospectus, preliminary prospectus and supplemental prospectus used in connection with the Registration Statement.
Amount” shall mean the total amount being paid by the Investor on a particular Closing Date to purchase the Securities,
net of reimbursements to the Investor for payments made to the Company’s transfer agent and Investor’s brokerage firm
for processing the Securities as set forth in Section 2.5.
Price” shall mean Eighty (80%) percent of the lowest price traded during the Pricing Period.
Rights Agreement” shall have the meaning set forth in the recitals.
Statement” means the registration statement of the Company filed under the 1933 Act covering the Securities issuable
Party” shall have the meaning set forth in Section 5.7.
shall have the meaning set forth in Section 7.5.
shall mean the U.S. Securities and Exchange Commission.
Documents” shall have the meaning set forth in Section 4.6.
shall mean the Shares issued pursuant to the terms of the Agreement.
shall mean the shares of the Company’s Common Stock.
shall have the meaning set forth in Section 4.1.
Day” shall mean any day on which the Principal Market for the Common Stock is open for trading, from the hours of 9:30
am until 4:00 pm.
AND SALE OF COMMON STOCK
PURCHASE AND SALE OF COMMON STOCK. Subject to the terms and conditions set forth herein, the Company shall issue and sell
to the Investor, and the Investor shall purchase from the Company, up to that number of Shares having an aggregate Purchase Amount
of Five Million Dollars ($5,000,000).
DELIVERY OF DRAWDOWN NOTICES. Subject to the terms and conditions of the Financing Agreements, and from time to time during
the Open Period, the Company may, in its sole discretion, deliver a Drawdown Notice to the Investor which states the dollar amount
(designated in U.S. Dollars), which the Company intends to sell to the Investor on a Closing Date (the “Drawdown”
or “Drawdown Amount”). The Drawdown Notice shall be in the form attached hereto as Exhibit B and incorporated
herein by reference. The minimum amount that the Company shall be entitled to Drawdown to the Investor (the “Minimum
Drawdown Amount”) shall be equal to $5,000 unless Investor agrees to accept a lesser amount on a case by case basis,
in which case such acceptance shall not be presumed to be a waiver of this section. The maximum amount that the Company shall
be entitled to Drawdown to the Investor (the “Maximum Drawdown Amount”) shall be equal to the lower of a) two
hundred percent (200%) of average daily trading volume (U.S. market only) of the Common Stock during the ten (10) Trading Days
immediately prior to the Drawdown Notice Date or b) 4.99% of the outstanding Shares of the Company. Only one such Drawdown Notice
shall be allowed per Pricing Period and a minimum of fifteen (15) trading days are required between each Drawdown Notice, unless
Investor agrees to accept the additional Drawdown Notice on a case by case basis, in which case such acceptance shall not be presumed
to be a waiver of this section. Promptly after receipt of a Drawdown Notice and in no event more than 24 hours following receipt
thereof, the Investor shall notify the Company in writing (which may be by email) of the Purchase Price relating to such Drawdown
and the Company shall have up to 24 hours following notification of the Purchase Price to withdraw the Drawdown Notice.
CONDITIONS TO INVESTOR’S OBLIGATION TO PURCHASE SHARES. Notwithstanding anything to the contrary in this Agreement,
the Company shall not be entitled to deliver a Drawdown Notice and the Investor shall not be obligated to purchase any Shares
at a Closing unless each of the following conditions are satisfied:
Registration Statement shall have been declared effective and shall remain effective
and available for the resale of all the Registrable Securities (as defined in the Registration
Rights Agreement) at all times until the Closing with respect to the subject Drawdown
all times during the period beginning on the related Drawdown Notice Date and ending
on and including the related Closing Date, the Common Stock shall have been listed or
quoted for trading on the Principal Market and shall not have been suspended from trading
thereon for a period of two (2) consecutive Trading Days during the Pricing Period and
the Company shall not have been notified of any pending or threatened proceeding or other
action to suspend the trading of the Common Stock;|
Company has complied in all material respects with its obligations and is otherwise not
in breach of or in default under, this Agreement, the Registration Rights Agreement or
any other agreement executed in connection herewith which has not been cured prior to
delivery of the Investor’s Drawdown Notice;|
injunction shall have been issued and remain in force, or action commenced by a governmental
authority which has not been stayed or abandoned, prohibiting the purchase or the issuance
of the Securities; and|
issuance of the Securities will not violate any stockholder approval requirements of
the Principal Market.|
any of the events described in clauses (i) through (v) above occurs during a Pricing Period, then the Investor shall have no obligation
to purchase the Drawdown Amount of Common Stock set forth in the applicable Drawdown Notice.
MECHANICS OF PURCHASE OF SHARES BY INVESTOR. Subject to the satisfaction of the conditions set forth in Sections 2.6, 7
and 8 of this Agreement, the closing of the purchase by the Investor of the Securities (a “Closing”) shall
occur on the date (each a “Closing Date”), provided that, the Company has delivered to the Investor pursuant
to this Agreement, certificates representing the Securities to be issued to the Investor on such date and registered in the name
of the Investor (the “Certificate”), and the Certificate is cleared for trading prior to 12:00 pm Eastern Time
on such date. If the Certificate is delivered and cleared for trading after 12:00 pm Eastern Time on a Trading Day, the Closing
shall occur on the next Trading Day. On the Closing Date, the Investor shall deliver to the Company the Purchase Amount to be
paid for such Securities. The Purchase Amount shall be net of brokerage deposit costs and transfer agent fees, which shall be
deducted from the Purchase Amount before distributing the net proceeds to the Company (“Deposit Fees”), and
such Deposit Fees shall be detailed on the Drawdown Settlement Sheet. In lieu of delivering physical certificates representing
the Securities and provided that the Company’s transfer agent then is participating in The Depository Trust Company (“DTC”)
Fast Automated Securities Transfer (“FAST”) program, upon request of the Investor, the Company shall use all
commercially reasonable efforts to cause its transfer agent to electronically transmit the Securities by crediting the account
of the Investor’s prime broker (as specified by the Investor within a time reasonably in advance of the Investor’s
notice) with DTC through its Deposit Withdrawal At Custodian (“DWAC”) system. If the Company’s stock
price falls lower than the Purchase Price on any trading day between the Drawdown Notice Date and the Closing Date, Investor may,
at Investor’s discretion, reprice the Drawdown based on the new low and the Company shall, in its sole discretion, either
issue additional shares of Common Stock (“Makeup Shares”) to cover the difference or withdraw the Drawdown
OVERALL LIMIT ON COMMON STOCK ISSUABLE. Notwithstanding anything contained herein to the contrary, if during the Open Period
the Company becomes listed on an exchange that limits the number of Shares that may be issued without stockholder approval, then
the number of Shares issuable by the Company and purchasable by the Investor, shall not exceed that number of the Shares that
may be issuable without stockholder approval (the “Maximum Common Stock Issuance”). If such issuance of Shares
could cause a delisting on the Principal Market, then the Maximum Common Stock Issuance shall first be approved by the Company’s
stockholders in accordance with applicable law and the Certificate of Incorporation and By-laws of the Company. The parties understand
and agree that the Company’s failure to seek or obtain such stockholder approval shall in no way adversely affect the validity
and due authorization of the issuance and sale of Securities or the Investor’s obligation in accordance with the terms and
conditions hereof to purchase a number of Shares in the aggregate up to the Maximum Common Stock Issuance limitation, and that
such approval pertains only to the applicability of the Maximum Common Stock Issuance limitation provided in this Section 2.6.
LIMITATION ON AMOUNT OF OWNERSHIP. Notwithstanding anything to the contrary in this Agreement, in no event shall the Investor
be entitled to purchase that number of Shares, which when added to the sum of the number of Shares beneficially owned (as such
term is defined under Section 13(d) and Rule 13d-3 of the 1934 Act), by the Investor, would exceed 4.99% of the number of Shares
outstanding on the Closing Date, as determined in accordance with Rule 13d-1(j) of the 1934 Act.
REPRESENTATIONS, WARRANTIES AND COVENANTS
Investor represents and warrants to the Company, and covenants, that:
SOPHISTICATED INVESTOR. The Investor has, by reason of its business and financial experience, such knowledge, sophistication
and experience in financial and business matters and in making investment decisions of this type that it is capable of (a) evaluating
the merits and risks of an investment in the Securities and making an informed investment decision; (b) protecting its own interest;
and (c) bearing the economic risk of such investment for an indefinite period of time.
AUTHORIZATION; ENFORCEMENT. This Agreement has been duly and validly authorized, executed and delivered on behalf of the
Investor and is a valid and binding agreement of the Investor enforceable against the Investor in accordance with its terms, subject
as to enforceability to general principles of equity and to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation
and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.
SECTION 9 OF THE 1934 ACT. During the term of this Agreement, the Investor will comply with the provisions of Section 9
of the 1934 Act, and the rules promulgated thereunder, with respect to transactions involving the Common Stock. The Investor agrees
not to sell the Company’s stock short or otherwise engage in hedging transactions regarding the stock, either directly or
indirectly through its affiliates, principals or advisors during the term of this Agreement.
ACCREDITED INVESTOR. Investor is an “Accredited Investor” as that term is defined in Rule 501(a) of Regulation
D of the 1933 Act.
NO CONFLICTS. The execution, delivery and performance of the Financing Agreements by the Investor and the consummation
by the Investor of the transactions contemplated hereby and thereby will not result in a violation of the Certificate of Incorporation
or other organizational documents of the Investor.
OPPORTUNITY TO DISCUSS. The Investor has received all materials relating to the Company’s business, finance and operations
which it has requested. The Investor has had an opportunity to discuss the business, management and financial affairs of the Company
with the Company’s management.
INVESTMENT PURPOSES. The Investor is purchasing the Securities for its own account for investment purposes and not with
a view towards distribution and agrees to resell or otherwise dispose of the Securities solely in accordance with the registration
provisions of the 1933 Act (or pursuant to an exemption from such registration provisions).
NO REGISTRATION AS A DEALER. The Investor is not and will not be required to be registered as a “dealer” under
the 1934 Act, either as a result of its execution and performance of its obligations under this Agreement or otherwise.
ORGANIZATION; GOOD STANDING. The Investor is a corporation, duly organized, validly existing and in good standing in the
State of Delaware.
TAX LIABILITIES. The Investor understands that it is liable for its own tax liabilities.
REGULATION M. The Investor will comply with Regulation M under the 1934 Act, if applicable.
No Short Sales. No short sales shall be permitted by the Investor or its
affiliates during the period commencing on the Execution Date and continuing through the termination of this Agreement.
ACKNOWLEDGEMENT OF RISK. The Investor agrees, acknowledges and understands that its investment in the Securities involves
a significant degree of risk, including, without limitation that: (a) the Company is a development stage business and may require
substantial funds; (b) an investment in the Company is highly speculative and only Persons who can afford the loss of their entire
investment should consider investing in the Company and the Securities; (c) the Investor may not be able to liquidate its investment;
(d) transferability of the Securities is extremely limited; and (e) in the event of a disposition of the Securities, the Investor
can sustain the loss of its entire investment. The Investor has considered carefully and understands the risks associated with
an investment in the Securities.
RESTRICTED SECURITIES. The Investor understands and agrees that the Securities have not been registered under the 1933
Act or any applicable state securities laws, by reason of their issuance in a transaction that does not require registration under
the 1933 Act (based in part on the accuracy of the representations and warranties of the Investor contained herein), and that
such Securities must be held indefinitely unless a subsequent disposition is registered under the 1933 Act or any applicable state
securities laws or is exempt from such registration. The Investor acknowledges that it is familiar with Rule 144 and that it has
been advised that Rule 144 permits resales only under certain circumstances. The Investor understands that to the extent that
Rule 144 is not available, the Investor will be unable to sell any Securities without either registration under the 1933 Act or
the existence of another exemption from such registration requirement.
RELIANCE ON REPRESENTATIONS. The Investor agrees, acknowledges and understands that the Company and its counsel are entitled
to rely on the representations, warranties and covenants made by the Investor herein. The Investor further represents and warrants
that this Agreement does not contain any untrue statement or a material fact or omit any material fact concerning the Investor.
AND WARRANTIES OF THE COMPANY
as set forth in the Schedules attached hereto, or as disclosed in the Company’s SEC Documents, the Company represents and
warrants to the Investor on the date of this Agreement that:
ORGANIZATION AND QUALIFICATION. The Company is a corporation duly organized and validly existing in good standing under
the laws of the State of Nevada, and has the requisite corporate power and authorization to own its properties and to carry on
its business as now being conducted. Both the Company and the companies it owns or controls (“Subsidiaries”)
are duly qualified to do business and are in good standing in every jurisdiction in which its ownership of property or the nature
of the business conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified or
be in good standing would not have a Material Adverse Effect. As used in this Agreement, “Material Adverse Effect”
means a change, event, circumstance, effect or state of facts that has had or is reasonably likely to have, a material adverse
effect on the business, properties, assets, operations, results of operations, financial condition or prospects of the Company
and its Subsidiaries, if any, taken as a whole, or on the transactions contemplated hereby or by the agreements and instruments
to be entered into in connection herewith, or on the authority or ability of the Company to perform its obligations under the
Financing Agreements; provided, however, that none of the following, individually or in the aggregate, shall be
taken into account in determining whether a Material Adverse Effect has occurred or insofar as reasonably can be foreseen would
likely occur: (a) changes in conditions in the U.S. or global capital, credit or financial markets generally, including changes
in the availability of capital or currency exchange rates; (b) any effect of the announcement of, or the consummation of the transactions
contemplated by, this Agreement and the other Financing Agreements on the Company’s relationships, contractual or otherwise,
with customers, suppliers, vendors, bank lenders, strategic venture partners or employees; and (c) the receipt of any notice that
the Common Stock may be ineligible to continue listing or quotation on the Trading Market, other than a final and non-appealable
notice that the listing or quotation of the Common Stock on the Trading Market shall be terminated on a date certain.
AUTHORIZATION; ENFORCEMENT; COMPLIANCE WITH OTHER INSTRUMENTS.
Company has the requisite corporate power and authority to enter into and perform the
Financing Agreements, and to issue the Securities in accordance with the terms hereof
execution and delivery of the Financing Agreements by the Company and the consummation
by it of the transactions contemplated hereby and thereby, including without limitation
the issuance of the Securities pursuant to this Agreement, have been duly and validly
authorized by the Company’s Board of Directors and no further consent or authorization
is required by the Company, its Board of Directors, or its stockholders.|
Financing Agreements have been duly and validly executed and delivered by the Company.|
Financing Agreements constitute the valid and binding obligations of the Company enforceable
against the Company in accordance with their terms, except as such enforceability may
be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement
of creditors’ rights and remedies.|
CAPITALIZATION. As of the date hereof, the authorized capital stock of the Company consists of 100,000,000 shares of the
Common Stock of which as of the date hereof, 3,272,083 shares are issued and outstanding. To the knowledge of the executive officers
of the Company, all of such outstanding shares have been, or upon issuance will be, validly issued and are fully paid and non-assessable.
as disclosed in the Company’s SEC Documents or as otherwise set forth on Schedule 4.3:
shares of the Company’s capital stock are subject to preemptive rights or any other
similar rights or any liens or encumbrances suffered or permitted by the Company;|
are no outstanding debt securities;|
are no outstanding shares of capital stock, options, warrants, scrip, rights to subscribe
to, calls or commitments of any character whatsoever relating to, or securities or rights
convertible into, any shares of capital stock of the Company or any of its Subsidiaries,
or contracts, commitments, understandings or arrangements by which the Company or any
of its Subsidiaries is or may become bound to issue additional shares of capital stock
of the Company or any of its Subsidiaries or options, warrants, scrip, rights to subscribe
to, calls or commitments of any character whatsoever relating to, or securities or rights
convertible into, any shares of capital stock of the Company or any of its Subsidiaries;|
are no agreements or arrangements under which the Company or any of its Subsidiaries
is obligated to register the sale of any of their securities under the 1933 Act (except
the Registration Rights Agreement);|
are no outstanding securities of the Company or any of its Subsidiaries which contain
any redemption or similar provisions, and there are no contracts, commitments, understandings
or arrangements by which the Company or any of its Subsidiaries is or may become bound
to redeem a security of the Company or any of its Subsidiaries;|
are no securities or instruments containing anti-dilution or similar provisions that
will be triggered by the issuance of the Securities as described in this Agreement;|
Company does not have any stock appreciation rights or “phantom stock” plans
or agreements or any similar plan or agreement; and|
is no dispute as to the classification of any shares of the Company’s capital stock.|
Investor has had access through XXXXX to true and correct copies of the Company’s Certificate of Incorporation, as in effect
on the date hereof (the “Certificate of Incorporation”), and the Company’s By-laws, as in effect on the
date hereof (the “By-laws”), and the terms of all securities convertible into or exercisable for Common Stock
and the material rights of the holders thereof in respect thereto.
ISSUANCE OF SHARES. The Company has reserved 500,000 Shares for issuance pursuant to the Financing Agreements, which have
been duly authorized and reserved (subject to adjustment pursuant to the Company’s covenant set forth in Section 5.5
below) pursuant to this Agreement. Upon issuance in accordance with this Agreement, the Securities will be validly issued,
fully paid for and non-assessable and free from all taxes, liens and charges with respect to the issuance thereof. In the event
the Company cannot reserve a sufficient number of Securities for issuance pursuant to this Agreement, the Company will use its
commercially reasonable efforts to authorize and reserve for issuance the number of Securities required for the Company to perform
its obligations hereunder as soon as reasonably practicable.
NO CONFLICTS. The execution, delivery and performance of the Financing Agreements by the Company and the consummation by
the Company of the transactions contemplated hereby and thereby will not (i) result in a violation of the Certificate of Incorporation,
any Certificate of Designations, Preferences and Rights of any outstanding series of preferred stock of the Company or the By-laws;
or (ii) conflict with, or constitute a material default (or an event which with notice or lapse of time or both would become a
material default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any material
agreement, contract, indenture mortgage, indebtedness or instrument to which the Company or any of its Subsidiaries is a party,
or to the Company’s knowledge result in a violation of any law, rule, regulation, order, judgment or decree (including United
States federal and state securities laws and regulations and the rules and regulations of the Principal Market or principal securities
exchange or trading market on which the Common Stock is traded or listed) applicable to the Company or any of its Subsidiaries
or by which any property or asset of the Company or any of its Subsidiaries is bound or affected. Neither the Company nor its
Subsidiaries is in violation of any term of, or in default under, the Certificate of Incorporation, any Certificate of Designations,
Preferences and Rights of any outstanding series of preferred stock of the Company or the By-laws or their organizational charter
or by-laws, respectively, or any contract, agreement, mortgage, indebtedness, indenture, instrument, judgment, decree or order
or any statute, rule or regulation applicable to the Company or its Subsidiaries, except for possible conflicts, defaults, terminations,
amendments, accelerations, cancellations and violations that would not individually or in the aggregate have or constitute a Material
Adverse Effect. The business of the Company and its Subsidiaries is not being conducted, and shall not be conducted, in violation
of any law, statute, ordinance, rule, order or regulation of any governmental authority or agency, regulatory or self-regulatory
agency, or court, except for possible violations the sanctions for which either individually or in the aggregate would not have
a Material Adverse Effect. Except as specifically contemplated by this Agreement and as required under the 1933 Act or any securities
laws of any states, to the Company’s knowledge, the Company is not required to obtain any consent, authorization, permit
or order of, or make any filing or registration (except the filing of a registration statement as outlined in the Registration
Rights Agreement between the parties) with, any court, governmental authority or agency, regulatory or self-regulatory agency
or other third party in order for it to execute, deliver or perform any of its obligations under, or contemplated by, the Financing
Agreements in accordance with the terms hereof or thereof. Except for state blue sky filings and filings required as a result
of the transactions contemplated herein pursuant to the federal securities laws or regulation, all consents, authorizations, permits,
orders, filings and registrations which the Company is required to obtain pursuant to the preceding sentence have been obtained
or effected on or prior to the date hereof and are in full force and effect as of the date hereof. The Company and its Subsidiaries
are unaware of any facts or circumstances which might give rise to any of the foregoing. The Company is not, and will not be,
in violation of the listing requirements of the Principal Market as in effect on the date hereof and on each of the Closing Dates
and is not aware of any facts which would reasonably lead to delisting of the Common Stock by the Principal Market in the foreseeable
SEC DOCUMENTS; FINANCIAL STATEMENTS. As of the date hereof, the Company has filed all reports, schedules, forms, statements
and other documents required to be filed by it with the SEC pursuant to the reporting requirements of the 1934 Act (all of the
foregoing filed prior to the date hereof and all exhibits included therein and financial statements and schedules thereto and
documents incorporated by reference therein, and amendments thereto, being hereinafter referred to as the “SEC Documents”).
The Company has delivered to the Investor or its representatives, or they have had access through XXXXX to, true and complete
copies of the SEC Documents. As of their respective filing dates, the SEC Documents complied in all material respects with the
requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents,
and none of the SEC Documents, at the time they were filed with the SEC or the time they were amended, if amended, contained any
untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading. As of their respective dates, the
financial statements of the Company included in the SEC Documents complied as to form in all material respects with applicable
accounting requirements and the published rules and regulations of the SEC with respect thereto. Such financial statements have
been prepared in accordance with generally accepted accounting principles, by a firm that is a member of the Public Companies
Accounting Oversight Board (“PCAOB”) consistently applied, during the periods involved (except (i) as may be
otherwise indicated in such financial statements or the notes thereto, or (ii) in the case of unaudited interim statements, to
the extent they may exclude footnotes or may be condensed or summary statements) and fairly present in all material respects the
financial position of the Company as of the dates thereof and the results of its operations and cash flows for the periods then
ended (subject, in the case of unaudited statements, to normal year-end audit adjustments). No other written information provided
by or on behalf of the Company to the Investor which is not included in the SEC Documents, including, without limitation, information
referred to in Section 4.3 of this Agreement, contains any untrue statement of a material fact or omits to state any material
fact necessary to make the statements therein, in the light of the circumstance under which they are or were made, not misleading.
Neither the Company nor any of its Subsidiaries or any of their officers, directors, or agents have provided the Investor with
any material, nonpublic information which was not publicly disclosed prior to the date hereof and any material, nonpublic information
provided to the Investor by the Company or its Subsidiaries or any of their officers, directors, or agents prior to any Closing
Date shall be publicly disclosed by the Company prior to such Closing Date.
ABSENCE OF CERTAIN CHANGES. Except as otherwise set forth in the SEC Documents, the Company does not intend to change the
business operations of the Company in any material way. The Company has not taken any steps, and does not currently expect to
take any steps, to seek protection pursuant to any bankruptcy law nor does the Company or its Subsidiaries have any knowledge
or reason to believe that its creditors intend to initiate involuntary bankruptcy proceedings.
ABSENCE OF LITIGATION AND/OR REGULATORY PROCEEDINGS. Except as set forth in the SEC Documents, there is no material 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 executive officers of Company or any of its Subsidiaries, threatened against or affecting
the Company, the Common Stock or any of the Company’s Subsidiaries or any of the Company’s or the Company’s
Subsidiaries’ officers or directors in their capacities as such.
ACKNOWLEDGMENT REGARDING INVESTOR’S PURCHASE OF SHARES. The Company acknowledges and agrees that the Investor is
acting solely in the capacity of an arm’s length purchaser with respect to the Financing Agreements and the transactions
contemplated hereby and thereby. The Company further acknowledges that the Investor is not acting as a financial advisor or fiduciary
of the Company (or in any similar capacity) with respect to the Financing Agreements and the transactions contemplated hereby
and thereby and any advice given by the Investor or any of its respective representatives or agents in connection with the Financing
Agreements and the transactions contemplated hereby and thereby is merely incidental to the Investor’s purchase of the Securities,
and is not being relied on by the Company. The Company further represents to the Investor that the Company’s decision to
enter into the Financing Agreements has been based solely on the independent evaluation by the Company and its representatives.
NO UNDISCLOSED EVENTS, LIABILITIES, DEVELOPMENTS OR CIRCUMSTANCES. Except as set forth in the SEC Documents, as of the
date hereof, no event, liability, development or circumstance has occurred or exists, or to the Company’s knowledge is contemplated
to occur, with respect to the Company or its Subsidiaries or their respective business, properties, assets, prospects, operations
or financial condition, that would be required to be disclosed by the Company under applicable securities laws on a registration
statement filed with the SEC relating to an issuance and sale by the Company of its Common Stock and which has not been publicly
EMPLOYEE RELATIONS. Neither the Company nor any of its Subsidiaries is involved in any union labor dispute nor, to the
knowledge of the Company or any of its Subsidiaries, is any such dispute threatened. Neither the Company nor any of its Subsidiaries
is a party to a collective bargaining agreement, and the Company and its Subsidiaries believe that relations with their employees
are good. No executive officer (as defined in Rule 501(f) of the 0000 Xxx) has notified the Company that such officer intends
to leave the Company’s employ or otherwise terminate such officer’s employment with the Company.
INTELLECTUAL PROPERTY RIGHTS. The Company and its Subsidiaries own or possess adequate rights or licenses to use all trademarks,
trade names, service marks, service xxxx registrations, service names, patents, patent rights, copyrights, inventions, licenses,
approvals, governmental authorizations, trade secrets and rights necessary to conduct their respective businesses as now conducted.
Except as set forth in the SEC Documents, none of the Company’s trademarks, trade names, service marks, service xxxx registrations,
service names, patents, patent rights, copyrights, inventions, licenses, approvals, government authorizations, trade secrets or
other intellectual property rights necessary to conduct its business as now or as proposed to be conducted have expired or terminated,
or are expected to expire or terminate within two (2) years from the date of this Agreement. The Company and its Subsidiaries
do not have any knowledge of any infringement by the Company or its Subsidiaries of trademark, trade name rights, patents, patent
rights, copyrights, inventions, licenses, service names, service marks, service xxxx registrations, trade secret or other similar
rights of others, or of any such development of similar or identical trade secrets or technical information by others and, except
as set forth in the SEC Documents, there is no claim, action or proceeding being made or brought against, or to the Company’s
knowledge, being threatened against, the Company or its Subsidiaries regarding trademark, trade name, patents, patent rights,
invention, copyright, license, service names, service marks, service xxxx registrations, trade secret or other infringement; and
the Company and its Subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing. The
Company and its Subsidiaries have taken commercially reasonable security measures to protect the secrecy, confidentiality and
value of all of their intellectual properties.
ENVIRONMENTAL LAWS. The Company and its Subsidiaries (i) are, to the knowledge of the executive officers and directors
of the Company and its Subsidiaries, in compliance with any and all applicable foreign, federal, state and local laws and regulations
relating to the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants
or contaminants (“Environmental Laws”); (ii) have, to the knowledge of the executive officers and directors
of the Company, received all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct
their respective businesses; and (iii) are in compliance, to the knowledge of the executive officers and directors of the Company,
with all terms and conditions of any such permit, license or approval where, in each of the three (3) foregoing cases, the failure
to so comply would have, individually or in the aggregate, a Material Adverse Effect.
TITLE. The Company and its Subsidiaries have good and marketable title to all personal property owned by them which is
material to the business of the Company and its Subsidiaries, in each case free and clear of all liens, encumbrances and defects
except such as are described in the SEC Documents or such as do not materially affect the value of such property and do not interfere
with the use made and proposed to be made of such property by the Company or any of its Subsidiaries. Any real property and facilities
held under lease by the Company or any of its Subsidiaries are held by them under valid, subsisting and enforceable leases with
such exceptions as are not material and do not interfere with the use made and proposed to be made of such property and buildings
by the Company and its Subsidiaries.
INSURANCE. The Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility against
such losses and risks and in such amounts as the executive officers of the Company reasonably believes to be prudent and customary
in the businesses in which the Company and its Subsidiaries are engaged. Neither the Company nor any of its Subsidiaries has been
refused any insurance coverage sought or applied for and neither the Company nor its Subsidiaries has any reason to believe that
it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from
similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect.
REGULATORY PERMITS. The Company and its Subsidiaries have in full force and effect all certificates, approvals, authorizations
and permits from the appropriate federal, state, local or foreign regulatory authorities and comparable foreign regulatory agencies,
necessary to own, lease or operate their respective properties and assets and conduct their respective businesses, and neither
the Company nor any such Subsidiary has received any notice of proceedings relating to the revocation or modification of any such
certificate, approval, authorization or permit, except for such certificates, approvals, authorizations or permits which if not
obtained, or such revocations or modifications which would not have a Material Adverse Effect.
INTERNAL ACCOUNTING CONTROLS. Except as otherwise set forth in the SEC Documents, 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 by a firm with membership to the PCAOB and to maintain asset accountability;
(iii) access to assets is permitted only in accordance with management’s general or specific authorization; and (iv) the
recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken
with respect to any differences. The Company’s executive officers have determined that the Company’s internal accounting
controls were effective as of the date of this Agreement as further described in the SEC Documents.
NO MATERIALLY ADVERSE CONTRACTS, ETC. Neither the Company nor any of its Subsidiaries is subject to any charter, corporate
or other legal restriction, or any judgment, decree, order, rule or regulation which in the judgment of the Company’s officers
has or is expected in the future to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries is a party
to any contract or agreement which in the judgment of the Company’s officers has or is expected to have a Material Adverse
TAX STATUS. The Company and each of its Subsidiaries has made or filed all United States federal and state income and all
other tax returns, reports and declarations required by any jurisdiction to which it is subject (unless and only to the extent
that the Company and each of its Subsidiaries has set aside on its books provisions reasonably adequate for the payment of all
unpaid and unreported taxes) and 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, except those being contested in good faith and has set
aside on its books provision reasonably adequate for the payment of all 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 know of no basis for any such claim.
CERTAIN TRANSACTIONS. Except as set forth in the SEC Documents filed at least ten (10) days prior to the date hereof and
except for arm’s length transactions pursuant to which the Company makes payments in the ordinary course of business upon
terms no less favorable than the Company could obtain from disinterested third parties and other than the grant of stock options
disclosed in the SEC Documents, none of the officers, directors, or employees of the Company is presently a party to any transaction
with the Company or any of its Subsidiaries (other than for services as employees, officers and directors), including any contract,
agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property
to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company,
any corporation, partnership, trust or other entity in which any officer, director, or any such employee has a substantial interest
or is an officer, director, trustee or partner, such that disclosure would be required in the SEC Documents.
DILUTIVE EFFECT. The Company understands and acknowledges that the number of Shares issuable upon purchases pursuant to
this Agreement will increase in certain circumstances including, but not necessarily limited to, the circumstance wherein the
trading price of the Common Stock declines during the period between the Effective Date and the end of the Open Period. The Company’s
executive officers and directors have studied and fully understand the nature of the transactions contemplated by this Agreement
and recognize that they have a potential dilutive effect on the stockholders of the Company. The Board of Directors of the Company
has concluded, in its good faith business judgment, and with full understanding of the implications, that such issuance is in
the best interests of the Company. The Company specifically acknowledges that, subject to such limitations as are expressly set
forth in the Financing Agreements, its obligation to issue Shares upon purchases pursuant to this Agreement is absolute and unconditional
regardless of the dilutive effect that such issuance may have on the ownership interests of other stockholders of the Company.
LOCK-UP. The Company shall cause its executive officers and directors and their related parties to refrain from selling
Common Stock during each Pricing Period.
NO GENERAL SOLICITATION. Neither the Company, nor any of its affiliates, nor 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 Common Stock to the Investor as set forth in this Agreement.
NO BROKERS, FINDERS OR FINANCIAL ADVISORY FEES OR COMMISSIONS. No brokers, finders or financial advisory fees or commissions
will be payable by the Company, its agents or Subsidiaries, with respect to the transactions contemplated by this Agreement.
OF THE COMPANY
REASONABLE EFFORTS. The Company shall use all commercially reasonable efforts to timely satisfy each of the conditions
set forth in Section 7 of this Agreement.
REPORTING STATUS. Until one of the following occurs, the Company shall file all reports required to be filed with the SEC
pursuant to the 1934 Act, and the Company shall not terminate its status, or take an action or fail to take any action, which
would terminate its status as a reporting company under the 1934 Act: (i) this Agreement terminates pursuant to Section 8
and the Investor has the right to sell all of the Securities without restrictions pursuant to Rule 144 promulgated under the 1933
Act, or such other exemption, or (ii) the date on which the Investor has sold all the Securities and this Agreement has been terminated
pursuant to Section 8.
USE OF PROCEEDS. The Company will use the proceeds from the sale of the Securities (excluding amounts paid by the Company
for fees as set forth in the Financing Agreements) for general corporate and working capital purposes and acquisitions or assets,
businesses or operations or for other purposes that the board of directors, in its good xxxxx xxxx to be in the best interest
of the Company.
FINANCIAL INFORMATION. During the Open Period, the Company agrees to make available to the Investor via XXXXX or other
electronic means the following documents and information on the forms set forth: (i) within five (5) Trading Days after the filing
thereof with the SEC, a copy of its Annual Reports on Form 10-K, its Quarterly Reports on Form 10-Q, any Current Reports on Form
8-K and any Registration Statements or amendments filed pursuant to the 1933 Act; (ii) copies of any notices and other information
made available or given to the stockholders of the Company generally, contemporaneously with the making available or giving thereof
to the stockholders; and (iii) within two (2) calendar days of filing or delivery thereof, copies of all documents filed with,
and all correspondence sent to, the Principal Market, any securities exchange or market, or the Financial Industry Regulatory
Association, unless such information is material nonpublic information.
RESERVATION OF SHARES. The Company shall take all action necessary to at all times have authorized, and reserved the amount
of Shares included in the Company’s registration statement for issuance pursuant to the Financing Agreements. In the event
that the Company determines that it does not have a sufficient number of authorized Shares to reserve and keep available for issuance
as described in this Section 5.5, the Company shall use all commercially reasonable efforts to increase the number of authorized
Shares by seeking stockholder approval for the authorization of such additional Shares.
LISTING. The Company shall promptly secure and maintain the listing of all of the Registrable Securities (as defined in
the Registration Rights Agreement) on the Principal Market and each other national securities exchange and automated quotation
system, if any, upon which Shares are then listed (subject to official notice of issuance) and shall maintain, such listing of
all Registrable Securities from time to time issuable under the terms of the Financing Agreements. Neither the Company nor any
of its Subsidiaries shall take any action which would be reasonably expected to result in the delisting or suspension of the Common
Stock on the Principal Market (excluding suspensions of not more than two (2) Trading Days resulting from business announcements
by the Company). The Company shall promptly provide to the Investor copies of any notices it receives from the Principal Market
regarding the continued eligibility of the Common Stock for listing on such automated quotation system or securities exchange.
The Company shall pay all fees and expenses in connection with satisfying its obligations under this Section 5.6.
TRANSACTIONS WITH AFFILIATES. The Company shall not, and shall cause each of its Subsidiaries not to, enter into, amend,
modify or supplement, or permit any Subsidiary to enter into, amend, modify or supplement, any agreement, transaction, commitment
or arrangement with any of its or any Subsidiary’s officers, directors, persons who were officers or directors at any time
during the previous two (2) years, stockholders who beneficially own 5% or more of the Common Stock, or Affiliates or with any
individual related by blood, marriage or adoption to any such individual or with any entity in which any such entity or individual
owns a 5% or more beneficial interest (each a “Related Party”), except for (i) customary employment arrangements
and benefit programs on reasonable terms, (ii) any agreement, transaction, commitment or arrangement on an arms-length basis on
terms no less favorable than terms which would have been obtainable from a disinterested third party other than such Related Party,
or (iii) any agreement, transaction, commitment or arrangement which is approved by a majority of the disinterested directors
of the Company. For purposes hereof, any director who is also an officer of the Company or any Subsidiary of the Company shall
not be a disinterested director with respect to any such agreement, transaction, commitment or arrangement. “Affiliate”
for purposes hereof means, with respect to any person or entity, another person or entity that, directly or indirectly, (i) has
a 10% or more equity interest in that person or entity, (ii) has 10% or more common ownership with that person or entity, (iii)
controls that person or entity, or (iv) is under common control with that person or entity. “Control” or “Controls”
for purposes hereof means that a person or entity has the power, directly or indirectly, to conduct or govern the policies of
another person or entity.
FILING OF FORM 8-K. On or before the date which is four (4) Trading Days after the Execution Date, the Company shall file
a Current Report on Form 8-K with the SEC describing the terms of the transaction contemplated by the Financing Agreements in
the form required by the 1934 Act, if such filing is required.
CORPORATE EXISTENCE. The Company shall use all commercially reasonable efforts to preserve and continue the corporate existence
of the Company.
NOTICE OF CERTAIN EVENTS AFFECTING REGISTRATION; SUSPENSION OF RIGHT TO MAKE A DRAWDOWN. The Company shall promptly notify
the Investor upon the occurrence of any of the following events in respect of a Registration Statement or related prospectus in
respect of an offering of the Securities: (i) receipt of any request for additional information by the SEC or any other federal
or state governmental authority during the period of effectiveness of the Registration Statement for amendments or supplements
to the Registration Statement or related prospectus; (ii) the issuance by the SEC or any other federal or state governmental authority
of any stop order suspending the effectiveness of any Registration Statement or the initiation of any proceedings for that purpose;
(iii) receipt of any notification with respect to the suspension of the qualification or exemption from qualification of any of
the Securities for sale in any jurisdiction or the initiation or notice of any proceeding for such purpose; (iv) the happening
of any event that makes any statement made in such Registration Statement or related prospectus or any document incorporated or
deemed to be incorporated therein by reference untrue in any material respect or that requires the making of any changes in the
Registration Statement, related prospectus or documents so that, in the case of a Registration Statement, it will not contain
any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make
the statements therein not misleading, and that in the case of the related prospectus, it will not contain any untrue statement
of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading; and (v) the Company’s reasonable determination
that a post-effective amendment or supplement to the Registration Statement would be appropriate, and the Company shall promptly
make available to Investor any such supplement or amendment to the related prospectus. The Company shall not deliver to Investor
any Drawdown Notice during the continuation of any of the foregoing events in this Section 5.10.
TRANSFER AGENT. Upon effectiveness of the Registration Statement, and for so long as the Registration Statement is effective,
following delivery of a Drawdown Notice, the Company shall deliver instructions to its transfer agent to issue Shares to the Investor
that are covered for resale by the Registration Statement free of restrictive legends.
DTC Program. If the Company is eligible for DTC’s “FAST”
program, it will, for a period of at least two (2) years from the Execution Date, use its best efforts to employ as the transfer
agent for the Securities a participant in the DTC’s Automated Securities Transfer Program that is eligible to deliver shares
via the DWAC System.
ACKNOWLEDGEMENT OF TERMS. The Company hereby represents and warrants to the Investor that: (i) it is voluntarily entering
into this Agreement of its own freewill, (ii) it is not entering this Agreement under economic duress, (iii) the terms of this
Agreement are reasonable and fair to the Company, and (iv) the Company has had independent legal counsel of its own choosing review
this Agreement, advise the Company with respect to this Agreement, and represent the Company in connection with this Agreement.
OF THE COMPANY’S OBLIGATION TO SELL
obligation hereunder of the Company to issue and sell the Securities to the Investor is further subject to the satisfaction, at
or before each Closing Date, of each of the following conditions set forth below. These conditions are for the Company’s
sole benefit and may be waived by the Company at any time in its sole discretion.
The Investor shall have executed the Financing Agreements and delivered the same to the Company.
The Investor shall have delivered to the Company the Purchase Price for the Securities being purchased by the Investor between
the end of the Pricing Period and the Closing Date via a Drawdown Settlement Sheet (hereto attached as Exhibit C). After
receipt of confirmation of delivery of such Securities to the Investor, the Investor, by wire transfer of immediately available
funds pursuant to the wire instructions provided by the Company will disburse the funds constituting the Purchase Amount. The
Investor shall have no obligation to disburse the Purchase Amount until the Company delivers the Securities pursuant to a Drawdown
No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed
by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated
by this Agreement.
CONDITIONS OF THE INVESTOR’S OBLIGATION TO PURCHASE
obligation of the Investor hereunder to purchase Securities is subject to the satisfaction, on or before each Closing Date, of
each of the following conditions set forth below.
The Company shall have executed the Financing Agreements and delivered the same to the Investor.
The Common Stock shall be authorized for quotation on the Principal Market and trading in the Common Stock shall not have been
suspended by the Principal Market or the SEC, at any time beginning on the date hereof and through and including the respective
Closing Date (excluding suspensions of not more than two (2) Trading Days resulting from business announcements by the Company,
provided that such suspensions occur prior to the Company’s delivery of the Drawdown Notice related to such Closing).
The representations and warranties of the Company shall be true and correct in all material respects as of the date when made
and as of the applicable Closing Date as though made at that time and the Company shall have performed, satisfied and complied
in all material respects with the covenants, agreements and conditions required by the Financing Agreements to be performed, satisfied
or complied with by the Company on or before such Closing Date. The Investor may request an update as of such Closing Date regarding
the representation contained in Section 4.3.
The Company shall have executed and delivered to the Investor the certificates representing, or have executed electronic book-entry
transfer of, the Securities (in such denominations as the Investor shall request) being purchased by the Investor at such Closing.
The Board of Directors of the Company shall have adopted resolutions consistent with Section 4.2(ii) (the “Resolutions”)
and such Resolutions shall not have been amended or rescinded prior to such Closing Date.
No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed
by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated
by this Agreement.
The Registration Statement shall be effective on each Closing Date and no stop order suspending the effectiveness of the Registration
statement shall be in effect or to the Company’s knowledge shall be pending or threatened. Furthermore, on each Closing
Date (I) neither the Company nor the Investor shall have received notice that the SEC has issued or intends to issue a stop order
with respect to such Registration Statement or that the SEC otherwise has suspended or withdrawn the effectiveness of such Registration
Statement, either temporarily or permanently, or intends or has threatened to do so (unless the SEC’s concerns have been
addressed), and (II) no other suspension of the use or withdrawal of the effectiveness of such Registration Statement or related
prospectus shall exist.
At the time of each Closing, the Registration Statement (including information or documents incorporated by reference therein)
and any amendments or supplements thereto shall not contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein not misleading or which would require public disclosure
or an update supplement to the prospectus.
If applicable, the stockholders of the Company shall have approved the issuance of any Shares in excess of the Maximum Common
Stock Issuance in accordance with Section 2.6 or the Company shall have obtained appropriate approval pursuant to the requirements
of Delaware law and the Company’s Certificate of Incorporation and By-laws.
The conditions to such Closing set forth in Section 2.4 shall have been satisfied on or before such Closing Date.
The Company shall have certified to the Investor the number of Shares of Common Stock outstanding when a Drawdown Notice is given
to the Investor. The Company’s delivery of a Drawdown Notice to the Investor constitutes the Company’s certification
of the existence of the necessary number of Shares reserved for issuance.
Agreement shall terminate upon any of the following events:
when the Investor has purchased an aggregate of Five Million Dollars ($5,000,000) in the Common Stock of the Company pursuant
to this Agreement; or
on the date which is thirty-six (36) months after the Effective Date; or
at such time that the Registration Statement is no longer in effect, not including such periods as the effectiveness may be temporarily
suspended in order to amend or update the Registration Statement or as otherwise permitted under the terms of the Registration
and all Shares, or penalties, if any, due under this Agreement shall be immediately payable and due upon termination of this Agreement.
Agreement shall be suspended upon any of the following events, and shall remain suspended until such event is rectified:
trading of the Common Stock is suspended by the SEC, the Principal Market or FINRA for
a period of two (2) consecutive Trading Days during the Open Period; or|
Common Stock ceases to be registered under the 1934 Act or listed or traded on the Principal
Market or the Registration Statement is no longer effective (except as permitted hereunder).
Immediately upon the occurrence of one of the above-described events, the Company shall
send written notice of such event to the Investor.|
consideration of the parties mutual obligations set forth in the Financing Documents, each of the parties (in such capacity, an
“Indemnitor”) shall defend, protect, indemnify and hold harmless the other and all of the other party’s
stockholders, officers, directors, employees, counsel, and direct or indirect investors and any of the foregoing person’s
agents or other representatives (including, without limitation, those retained in connection with the transactions contemplated
by this Agreement) (collectively, the “Indemnitees”) from and against any and all actions, causes of action,
suits, claims, losses, costs, penalties, fees, liabilities and damages, and reasonable expenses in connection therewith (irrespective
of whether any such Indemnitee is a party to the action for which indemnification hereunder is sought), and including reasonable
attorneys’ fees and disbursements (the “Indemnified Liabilities”), incurred by any Indemnitee as a result
of, or arising out of, or relating to (I) any misrepresentation or breach of any representation or warranty made by the Indemnitor
or any other certificate, instrument or document contemplated hereby or thereby; (II) any breach of any covenant, agreement or
obligation of the Indemnitor contained in the Financing Agreements or any other certificate, instrument or document contemplated
hereby or thereby; or (III) any cause of action, suit or claim brought or made against such Indemnitee by a third party and arising
out of or resulting from the execution, delivery, performance or enforcement of the Financing Agreements or any other certificate,
instrument or document contemplated hereby or thereby, except insofar as any such misrepresentation, breach or any untrue statement,
alleged untrue statement, omission or alleged omission is made in reliance upon and in conformity with information furnished to
Indemnitor which is specifically intended for use in the preparation of any such Registration Statement, preliminary prospectus,
prospectus or amendments to the prospectus. To the extent that the foregoing undertaking by the Indemnitor may be unenforceable
for any reason, the Indemnitor shall make the maximum contribution to the payment and satisfaction of each of the Indemnified
Liabilities which is permissible under applicable law. The indemnity provisions contained herein shall be in addition to any cause
of action or similar rights Indemnitor may have, and any liabilities the Indemnitor or the Indemnitees may be subject to.
Law Governing this Agreement. This Agreement shall be governed by and construed
in accordance with the laws of the State of New York without regard to principles of conflicts of laws. Any action brought by
either party against the other concerning the transactions contemplated by this Agreement shall be brought only in the state courts
of New York or in the federal courts located in the state and county of New York. The parties to this Agreement hereby irrevocably
waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack
of jurisdiction or venue or based upon forum non conveniens. The parties executing this Agreement and other agreements
referred to herein or delivered in connection herewith on behalf of the Company agree to submit to the in personam jurisdiction
of such courts and hereby irrevocably waive trial by jury. The prevailing party shall be entitled to recover from the other
party its reasonable attorney’s fees and costs. In the event that any provision of this Agreement or any other agreement
delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision
shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute
or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability
of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process
being served in any suit, action or proceeding in connection with this Agreement or any other Financing Agreements 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.
LEGAL FEES; AND MISCELLANEOUS FEES. Except as otherwise set forth in the Financing Agreements (including but not limited
to Section V of the Registration Rights Agreement), each party shall pay the fees and expenses of its advisers, counsel, the 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. Any attorneys’ fees and expenses incurred by either the Company or the Investor
in connection with the preparation, negotiation, execution and delivery of any amendments to this Agreement or relating to the
enforcement of the rights of any party, after the occurrence of any breach of the terms of this Agreement by another party or
any default by another party in respect of the transactions contemplated hereunder, shall be paid on demand by the party which
breached the Agreement and/or defaulted, as the case may be. The Company shall pay all stamp and other taxes and duties levied
in connection with the issuance of any Securities.
COUNTERPARTS. This Agreement may be executed in any number of counterparts and by the different signatories hereto on separate
counterparts, each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute but one
and the same instrument. This Agreement may be executed by facsimile transmission, PDF, electronic signature or other similar
electronic means with the same force and effect as if such signature page were an original thereof.
HEADINGS; SINGULAR/PLURAL. The headings of this Agreement are for convenience of reference and shall not form part of,
or affect the interpretation of, this Agreement. Whenever required by the context of this Agreement, the singular shall include
the plural and masculine shall include the feminine.
SEVERABILITY. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity
or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or
the validity or enforceability of any provision of this Agreement in any other jurisdiction.
ENTIRE AGREEMENT; AMENDMENTS. This Agreement is the FINAL AGREEMENT between the Company and the Investor with respect to
the terms and conditions set forth herein, and, the terms of this Agreement may not be contradicted by evidence of prior, contemporaneous,
or subsequent oral agreements of the parties. No provision of this Agreement may be amended other than by an instrument in writing
signed by the Company and the Investor, and no provision hereof may be waived other than by an instrument in writing signed by
the party against whom enforcement is sought. The execution and delivery of the Financing Agreements shall not alter the force
and effect of any other agreements between the parties, and the obligations under those agreements.
NOTICES. Any notices or other communications required or permitted to be given under the terms of this Agreement must be
in writing and will be deemed to have been delivered (I) upon receipt, when delivered personally; (II) upon receipt, when sent
by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending
party); or (III) one (1) day after deposit with a nationally recognized overnight delivery service, in each case properly addressed
to the party to receive the same. The addresses and facsimile numbers for such communications shall be:
to the Company:
Xxxxx, Xxx Xxxxxx 00000
to the Investor:
Xxxxxx Xxxxx Xxxx
party shall provide five (5) days prior written notice to the other party of any change in address or email.
NO ASSIGNMENT. This Agreement may not be assigned.
NO THIRD PARTY BENEFICIARIES. This Agreement is intended for the benefit of the parties hereto and is not for the benefit
of, nor may any provision hereof be enforced by, any other person, except that the Company acknowledges that the rights of the
Investor may be enforced by its general partner.
SURVIVAL. The representations and warranties of the Company and the Investor contained in Sections 3 and 4, the agreements
and covenants set forth in Sections 5 and 6, and the indemnification provisions set forth in Section 10, shall survive until the
termination of the Agreement.
PUBLICITY. The Company and the Investor shall consult with each other in issuing any press releases or otherwise making
public statements with respect to the transactions contemplated hereby and no party shall issue any such press release or otherwise
make any such public statement without the prior consent of the other party, which consent shall not be unreasonably withheld
or delayed, except that no prior consent shall be required if such disclosure is required by law, in which such case the disclosing
party shall provide the other party with prior notice of such public statement. Notwithstanding the foregoing, the Company shall
not publicly disclose the name of the Investor without the prior consent of the Investor, except to the extent required by law.
The Investor acknowledges that this Agreement and all or part of the Financing Agreements may be deemed to be “material
contracts” as that term is defined by Item 601(b)(10) of Regulation S-K, and that the Company may therefore be required
to file such documents as exhibits to reports or registration statements filed under the 1933 Act or the 1934 Act. The Investor
further agrees that the status of such documents and materials as material contracts shall be determined solely by the Company,
in consultation with its counsel.
FURTHER ASSURANCES. Each party shall do and perform, or cause to be done and performed, all such further acts and things,
and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably
request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions
NO STRICT CONSTRUCTION. The language used in this Agreement will be deemed to be the language chosen by the parties to
express their mutual intent, and no rules of strict construction will be applied against any party, as the parties mutually agree
that each has had a full and fair opportunity to review this Agreement and seek the advice of counsel on it.
REMEDIES. The Investor shall have all rights and remedies set forth in this Agreement and the Registration Rights Agreement
and all rights and remedies which such holders have been granted at any time under any other agreement or contract and all of
the rights which the Investor has by law. Any person having any rights under any provision of this Agreement shall be entitled
to enforce such rights specifically (without posting a bond or other security), to recover damages by reason of any default or
breach of any provision of this Agreement, including the recovery of reasonable attorneys’ fees and costs, and to exercise
all other rights granted by law.
PAYMENT SET ASIDE. To the extent that the Company makes a payment or payments to the Investor hereunder or under the Registration
Rights Agreement or the Investor enforces or exercises its rights hereunder or thereunder, and such payment or payments or the
proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential,
set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee,
receiver or any other person under any law (including, without limitation, any bankruptcy law, state or federal law, common law
or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally intended to
be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such enforcement
or setoff had not occurred.
PRICING OF COMMON STOCK. For purposes of this Agreement, the price of the Common Stock shall be as reported on Bloomberg,
L.P or OTC Markets.
OF NON-PUBLIC INFORMATION
Company shall not disclose non-public information to the Investor, its advisors, or its representatives.
herein shall require the Company to disclose non-public information to the Investor or its advisors or representatives, and the
Company represents that it does not disseminate non-public information to any investors who purchase stock in the Company in a
public offering, to money managers or to securities analysts, provided, however, that notwithstanding anything herein to the contrary,
the Company will, as hereinabove provided, immediately notify the advisors and representatives of the Investor and, if any, underwriters,
of any event or the existence of any circumstance (without any obligation to disclose the specific event or circumstance) of which
it becomes aware, constituting non-public information (whether or not requested of the Company specifically or generally during
the course of due diligence by such persons or entities), which, if not disclosed in the prospectus included in the Registration
Statement would cause such prospectus to include a material misstatement or to omit a material fact required to be stated therein
in order to make the statements, therein, in light of the circumstances in which they were made, not misleading. Nothing contained
in this Section 12 shall be construed to mean that such persons or entities other than the Investor (without the written
consent of the Investor prior to disclosure of such information) may not obtain non-public information in the course of conducting
due diligence in accordance with the terms of this Agreement and nothing herein shall prevent any such persons or entities from
notifying the Company of their opinion that based on such due diligence by such persons or entities, that the Registration Statement
contains an untrue statement of material fact or omits a material fact required to be stated in the Registration Statement or
necessary to make the statements contained therein, in light of the circumstances in which they were made, not misleading.
OF THE PARTIES
anything in this Agreement to the contrary, the parties hereto hereby acknowledge and agree to the following: (i) the Investor
makes no representations or covenants that it will not engage in trading in the securities of the Company, other than the Investor
will not short or engage in hedging transactions with regard to, the Company’s Common Stock at any time during this Agreement;
(ii) the Company shall, by 8:30 a.m. EST on the fourth Trading Day following the date hereof, file a current report on Form 8-K
disclosing the material terms of the transactions contemplated hereby and in the other Financing Agreements; (iii) the Company
has not and shall not provide material non-public information to the Investor unless prior thereto the Investor shall have executed
a written agreement regarding the confidentiality and use of such information; and (iv) the Company understands and confirms that
the Investor will be relying on the acknowledgements set forth in clauses (i) through (iii) above if the Investor effects any
transactions in the securities of the Company.
signature on this signature page evidences your agreement to be bound by the terms and conditions of this Agreement as of the
date first written above. The undersigned signatory hereby certifies that he has read and understands this Agreement, and the
representations made by the undersigned in this Agreement are true and accurate, and agrees to be bound by its terms.
PAGE OF INVESTMENT AGREEMENT]
||Form of Registration Rights|
||Form of Drawdown Notice|
||Drawdown Settlement Sheet|
OF DRAWDOWN NOTICE
Drawdown Notice Number __
is to inform you that as of today, Arista Financial Corp., a Nevada corporation (the “Company”), hereby elects to
exercise its right pursuant to the Investment Agreement to require Northbridge Financial Inc to purchase shares of its common
stock. The Company hereby certifies that:
amount of this Drawdown is $__________.
Pricing Period runs from _______________ until _______________.
Purchase Price is: $_______________
number of Drawdown Shares Due:___________________.
current number of shares of common stock issued and outstanding is: _________________.
number of shares currently available for issuance on the Registration Statement on Form S-1 is: ________________________.
to the Drawdown given by Arista Financial Corp. (the “Company”) to Northbridge Financial Inc (the “Investor”)
on _________________ 201_, we are now submitting the amount of common shares for you to issue to the Investor.
have a certificate bearing no restrictive legend totaling __________ shares issued to Investor immediately and send via its Deposit
Withdrawal At Custodian (“DWAC”) system to the following account:
not DWAC eligible, please send FedEx Priority Overnight to:
these shares are received by us, we will have the funds wired to the Company.