Form 8-K
8-K — Archimedes Tech SPAC Partners II Co.
Accession: 0001104659-26-115500
Filed: 2026-10-13
Period: 2026-10-13
CIK: 0002028516
SIC: 6770 (BLANK CHECKS)
Item: Entry into a Material Definitive Agreement
Item: Unregistered Sales of Equity Securities
Item: Financial Statements and Exhibits
Documents
8-K — tm2627487d1_8k.htm (Primary)
EX-4.1 — EXHIBIT 4.1 (tm2627487d1_ex4-1.htm)
EX-4.2 — EXHIBIT 4.2 (tm2627487d1_ex4-2.htm)
EX-10.1 — EXHIBIT 10.1 (tm2627487d1_ex10-1.htm)
XML — IDEA: XBRL DOCUMENT (R1.htm)
8-K — FORM 8-K
8-K (Primary)
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2026-10-13
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
October 13, 2026
Date of Report (Date of earliest event reported)
Commission file
number
Exact Name of Registrant as Specified in its Charter, State or other
Jurisdiction
of Incorporation, Address of Principal Executive Offices, Zip Code,
and
Registrant's Telephone Number, Including Area Code
IRS Employer
Identification
No.
001-42514
Archimedes
Tech SPAC Partners II Co.
(a Cayman Islands exempted company limited by shares)
2093 Philadelphia Pike #1968
Claymont, DE 19703
(725) 312-2430
N/A
333-295563
ATII Holdings Inc.
(a Delaware corporation)
2093 Philadelphia Pike #1968
Claymont, DE 19703
(725) 312-2430
41-2980280
333-295563-01
Forge
Nano, Inc.
(a Delaware corporation)
12300 Grant St. #110
Thornton, Colorado 80241
(720) 259-8579
45-2393850
Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
x
Written communications pursuant to Rule 425 under the Securities Act
x
Soliciting material pursuant to Rule 14a-12 under the Exchange Act
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
Securities registered pursuant to Section 12(b)
of the Act:
Registrant
Title of each class
Trading
Symbol(s)
Name of each
exchange on which
registered
Archimedes Tech SPAC Partners II Co.
Units, each consisting of one Ordinary Share, par value $0.0001 per share, and one-half of one redeemable Warrant
ATIIU
The Nasdaq Stock Market LLC
Archimedes Tech SPAC Partners II Co.
Ordinary Shares
ATII
The Nasdaq Stock Market LLC
Archimedes Tech SPAC Partners II Co.
Warrants
ATIIW
The Nasdaq Stock Market LLC
Indicate by check mark whether the registrant
is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities
Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company x
If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 1.01. Entry into a Material Definitive
Agreement.
As previously
disclosed in the Current Report on Form 8-K filed by Archimedes Tech SPAC Partners II Co. (“ATII”) on April 20, 2026
(the “Signing 8-K”), ATII Holdings Inc. (“Pubco”), Forge Nano, Inc. (“Forge Nano”)
and ATII entered into a subscription agreement with an accredited investor (the “Investor”) on April 20, 2026 (the
“Original Subscription Agreement”), pursuant to which the Investor agreed to purchase, in a private placement substantially
concurrently with the closing of the Business Combination (as defined in the Signing 8-K), 10,000,000 shares of Pubco common stock (the
“Pubco Common Stock”) at a purchase price of $10.00 per share, together with warrants to purchase an aggregate of 15,000,000
shares of Pubco Common Stock at an exercise price of $10.00 per share, subject to adjustment (the “PIPE Warrants”),
for an aggregate purchase price of $100,000,000. On October 13, 2026, the parties to the Original Subscription Agreement entered
into an Amended and Restated Subscription Agreement (the “Amended and Restated Subscription Agreement”), which provides
that 7,031,175 of the Investor’s 10,000,000 subscribed shares will be issued instead in the form of pre-funded warrants to purchase
an equal number of shares of Pubco Common Stock at an exercise price of $0.0001 per share (the “Pre-Funded Warrants”),
and otherwise contains substantially the same terms as the Original Subscription Agreement.
Pre-Funded Warrants
The
Pre-Funded Warrants are exercisable for Pubco Common Stock on or after the date of their issuance and have no expiration date. The exercise
price per Pre-Funded Warrant is $0.0001, subject to adjustment as set forth in the Pre-Funded Warrant Certificate and described below.
The Pre-Funded Warrants may be exercised on a “net-issuance” basis. The Pre-Funded Warrants are subject to a beneficial ownership
limitation, at the election of the holder. If the election is made, Pubco will not effect any exercise of the Pre-Funded Warrants, and
a holder will not have the right to exercise any portion of the Pre-Funded Warrants, to the extent that after giving effect to such exercise
the holder (together with the holder’s affiliates, and anyone acting as a group together with the holder or any of the holder’s
affiliates) would beneficially own in excess of 4.9%, 9.9% or 19.9% (or such other amount as the holder may specify) of outstanding shares
of Pubco Common Stock. The holder may increase or decrease such limitation by written notice; provided, however, that any such increase
will not be effective until the 61st day after such notice is delivered to Pubco. The Pre-Funded Warrants do not entitle the holder to
any rights of a stockholder of Pubco, including voting rights, prior to exercise, except as expressly provided in the Pre-Funded Warrant
(including the right to participate in certain distributions described below).
The
number of shares issuable upon exercise and the exercise price of the Pre-Funded Warrants are subject to adjustment if Pubco (i) subdivides
or combines (including by way of a reverse stock split) the outstanding Pubco Common Stock or (ii) issues by reclassification of Pubco
Common Stock into any capital shares of Pubco. If Pubco declares or makes any dividend or other distribution of its assets (or rights
to acquire its assets) to holders of Pubco Common Stock, by way of return of capital or otherwise, the holder of Pre-Funded Warrants shall
be entitled to participate in such distribution to the same extent as if the holder had held the number of shares of Pubco Common Stock
acquired upon exercise of such holder’s Pre-Funded Warrants. If a Fundamental Transaction (as defined in the Pre-Funded Warrant)
occurs, then, upon any subsequent exercise of a Pre-Funded Warrant, the holder will have the right to receive, for each share of Pubco
Common Stock that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at
the option of the holder (without regard to the beneficial ownership limitation), the number of shares of the successor or acquiring corporation
or of Pubco, if it is the surviving corporation, and any additional consideration receivable as a result of such Fundamental Transaction
by a holder of the number of shares of Pubco Common Stock for which such Pre-Funded Warrant is exercisable immediately prior to such Fundamental
Transaction (without regard to the beneficial ownership limitation).
The
foregoing description of the Amended and Restated Subscription Agreement, the PIPE Warrants and the Pre-Funded Warrants does not purport
to be complete and is qualified in its entirety by reference to the full text of the Form of Amended and Restated Subscription Agreement,
Form of Warrant Certificate and Form of Pre-Funded Warrant Certificate, which are filed as Exhibits 10.1, 4.1 and 4.2 hereto, respectively,
and incorporated herein by reference.
Waiver
of Transfer Restrictions
On
October 13, 2026, ATII and Archimedes Tech SPAC Sponsors II LLC (the “Sponsor”), with the consent of BTIG, LLC, waived the
transfer restrictions applicable to the 3,000,000 ordinary shares of ATII to be transferred by the Sponsor to the Investor under the Purchaser
Support Agreement (as defined in the Signing 8-K).
Item 3.02. Unregistered Sales of Equity Securities.
The
disclosure set forth above in Item 1.01 of this Current Report on Form 8-K relating to the Amended and Restated Subscription Agreement
is incorporated by reference herein. The shares of Pubco Common Stock, the Pre-Funded Warrants and the PIPE Warrants issuable pursuant
to the Amended and Restated Subscription Agreement, and the shares of Pubco Common Stock issuable upon exercise of the Pre-Funded Warrants
and the PIPE Warrants, will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), in reliance
on the exemption from registration provided by Section 4(a)(2) of the Securities Act.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No.
Description
4.1
Form of Warrant Certificate
4.2
Form of Pre-Funded Warrant Certificate
10.1
Form of Amended and Restated Subscription Agreement
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)
Important Information and Where to Find It
In connection with the proposed business combination, Pubco, a wholly-owned
subsidiary of ATII, and Forge Nano have filed documents with the Securities and Exchange Commission (the “SEC”), including
a registration statement on Form S-4 (the “Registration Statement”), which includes a proxy statement/prospectus of ATII,
relating to the proposed business combination. The Registration Statement was declared effective by the SEC on September 22, 2026. The
proxy statement/prospectus was mailed to ATII’s shareholders in connection with the proposed business combination on or about September
24, 2026. ATII’s extraordinary general meeting to approve the proposed business combination and related matters is scheduled for
October 16, 2026. BEFORE MAKING ANY VOTING DECISION, INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT AND ANY
OTHER DOCUMENTS FILED OR TO BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED BUSINESS COMBINATION OR INCORPORATED BY REFERENCE IN
THE REGISTRATION STATEMENT BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED BUSINESS COMBINATION. Any vote in respect of
resolutions to be proposed at ATII’s extraordinary general meeting to approve the proposed business combination or other responses
in relation to the proposed transaction should be made only on the basis of the information contained in the Registration Statement. Investors
and security holders may obtain free copies of these documents (as they become available) and other related documents filed with the SEC
at the SEC’s website at www.sec.gov or by directing a request to: Archimedes Tech SPAC Partners II Co., 2093 Philadelphia Pike #1968,
Claymont, DE 19703.
Participants in the Solicitation
Each of ATII, Pubco, Forge Nano and their respective directors, executive
officers and other members of management and employees, under SEC rules, may be deemed to be “participants” in the solicitation
of proxies from shareholders of ATII in favor of the proposed business combination. Information about ATII’s directors and officers
is set forth in ATII’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, which was filed with the SEC on March
4, 2026 and ATII’s other filings with the SEC. Additional information concerning the interests of ATII’s participants in the
solicitation, which may, in some cases, be different than those of ATII’s shareholders generally, is set forth in the Registration
Statement relating to the proposed business combination. These documents are available free of charge at the SEC’s website at www.sec.gov.
No Offer or Solicitation
This Current Report on Form 8-K is for information purposes only and
is not intended to and does not constitute, or form part of, an offer, invitation or the solicitation of an offer or invitation to purchase,
otherwise acquire, subscribe for, sell or otherwise dispose of any securities, or the solicitation of any vote or approval in any jurisdiction,
pursuant to the proposed business combination or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction
in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section
10 of the Securities Act.
Forward-Looking Statements
This Current Report on Form 8-K includes forward-looking information
about, among other topics, the proposed business combination. All statements, other than statements of present or historical fact, included
in this Current Report on Form 8-K regarding the proposed business combination, ATII’s, Pubco’s and Forge Nano’s ability
to consummate the proposed business combination, the benefits of the proposed business combination and the combined company’s future
financial performance, as well as the combined company’s strategy, future operations, estimated financial position, estimated revenues
and losses, projected costs, prospects, plans and objectives of management, are forward-looking statements. When used in this Current
Report on Form 8-K, the words “could,” “should,” “will,” “may,” “believe,”
“anticipate,” “intend,” “estimate,” “expect,” “project,” the negative of such
terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain
such identifying words. These forward-looking statements are based on the current expectations and assumptions of ATII’s, Pubco’s
and Forge Nano’s management about future events and are based on currently available information as to the outcome and timing of
future events. Except as otherwise required by applicable law, ATII, Pubco and Forge Nano disclaim any duty to update any forward-looking
statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date
of this Current Report on Form 8-K.
ATII, Pubco and Forge Nano caution you that these forward-looking statements
are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of ATII,
Pubco or Forge Nano. Risks and uncertainties include, among other things: (i) risks related to the occurrence of any event, change or
other circumstances that could delay the proposed business combination or give rise to the termination of the agreements related thereto;
(ii) risks related to the outcome of any legal proceedings that may be instituted against ATII, Pubco or Forge Nano following announcement
of the transactions; (iii) risks related to the inability to complete the proposed business combination due to the failure to obtain approval
of the shareholders of ATII, Pubco and Forge Nano, or other conditions to closing in the Merger Agreement; (iv) the risk that the proposed
business combination disrupts ATII’s, Pubco’s or Forge Nano’s current plans and operations as a result of the announcement
of the transactions; (v) risks related to Forge Nano’s ability to realize the anticipated benefits of the proposed business combination,
which may be affected by, among other things, competition and the ability of Forge Nano to grow and manage growth profitably following
the proposed business combination; (vi) risks related to costs related to the proposed business combination; (vii) risks related to changes
in applicable laws or regulations; (viii) risks related to Forge Nano’s ability to successfully develop and deploy new technologies
to address the needs of its customers; (ix) risks related to the effects of competition on Forge Nano’s business, financial condition
and results of operations; (x) risks related to the availability and cost of the raw materials necessary for the production of Forge Nano’s
products; (xi) risks related to Forge Nano’s ability to meet the specifications and requirements of its customers or adequately
provide them with effective support and services; (xii) risks related to delays in the construction and operation of production facilities;
(xiii) risks related to intellectual property infringement, data protection, and other losses; (xiv) risks related to the amount of redemption
requests made by ATII’s public shareholders; (xv) risks related to the combined company’s ability to operate effectively as
a public company, including its ability to implement controls and procedures required for public companies following the business combination;
(xvi) risks related to changes in domestic and foreign business, market, financial, political and legal conditions; (xvii) risks related
to the possibility that ATII, Pubco or Forge Nano may be adversely affected by other economic, business, and/or competitive factors; and
(xviii) other risks discussed in ATII’s Annual Report on Form 10-K and that are presented in the Registration Statement. There may
be additional risks that ATII, Pubco or Forge Nano presently do not know or that ATII, Pubco or Forge Nano currently believe are immaterial
that could also cause actual results to differ from those contained in the forward-looking statements. Should one or more of the risks
or uncertainties described in this Current Report on Form 8-K, or should underlying assumptions prove incorrect, actual results and plans
could differ materially from those expressed or implied in any forward-looking statements. Additional information concerning these and
other factors that may impact the operations and projections discussed herein can be found in ATII’s periodic filings with the SEC,
including ATII’s Annual Report on Form 10-K and the Registration Statement. These SEC filings are available free of charge on the
SEC’s website at www.sec.gov.
You should carefully consider the foregoing factors and the other risks
and uncertainties that affect the businesses of ATII, Pubco and Forge Nano described in the “Risk Factors” and “Forward-Looking
Statements” sections of the Registration Statement and other documents filed or to be filed by any of them from time to time with
the SEC, all of which are available at www.sec.gov. These filings identify and address other important risks and uncertainties that could
cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements
speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and ATII, Pubco
and Forge Nano assume no obligation to, and do not intend to, update or revise these forward-looking statements, whether as a result of
new information, future events, or otherwise, unless required by law. None of ATII, Pubco or Forge Nano gives any assurance that it will
achieve its expectations.
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.
Dated: October 13, 2026
ARCHIMEDES TECH SPAC PARTNERS II CO.
By:
/s/ Long Long
Name:
Long Long
Title:
Chief Executive Officer
ATII HOLDINGS INC.
By:
/s/ Long Long
Name:
Long Long
Title:
Chief Executive Officer
FORGE NANO, INC.
By:
/s/ Michael Kleinberg
Name:
Michael Kleinberg
Title:
Chief Financial Officer
EX-4.1 — EXHIBIT 4.1
EX-4.1
Filename: tm2627487d1_ex4-1.htm · Sequence: 2
Exhibit 4.1
Final Form
NEITHER THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS
EXERCISABLE HAVE BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN
RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE U.S. SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION
WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.
[PUBCO]
WARRANT TO PURCHASE SHARES OF COMMON STOCK
Warrant
Shares: [__________]
Initial Exercise Date: [●], [●]
THIS WARRANT TO PURCHASE SHARES OF COMMON STOCK
(this “Warrant”) certifies that, for value received, [__] or its assigns (the “Holder”) is entitled,
upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after the date
hereof (the “Initial Exercise Date”) and on or prior to 5:00 p.m. (New York City time) on [●], [●]1
(the “Termination Date”) but not thereafter, to subscribe for and purchase from [Pubco], a Delaware corporation (the
“Company”), up to [__] shares (as subject to adjustment hereunder, the “Warrant Shares”) of common
stock, par value $0.0001 per share, of the Company (“Common Stock”). The purchase price of one Warrant Share under
this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).
Section 1. Definitions.
Capitalized terms used and not otherwise defined herein shall have the meanings set forth in Schedule A hereto.
Section 2. Exercise.
(a) Exercise of Warrant. Exercise of the purchase rights represented by this Warrant may be made,
in whole or in part, at any time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the
Company (or such other office or agency that the Company may designate by notice in writing to the registered Holder at the address of
the Holder appearing on the books of the Company), as applicable, of a duly executed PDF copy submitted by e-mail (or e-mail attachment)
of the Notice of Exercise in the form annexed hereto (the “Notice of Exercise”). Not later than the number of Trading
Days comprising the Standard Settlement Period (as defined in Section 2(d)(i) herein) following the date of exercise
as aforesaid, the Holder shall deliver to the Company the aggregate Exercise Price for the shares specified in the applicable Notice of
Exercise by wire transfer or cashier’s check drawn on a United States bank unless the exercise on a net-issuance basis procedure
specified in Section 2(c) below is available and specified in the applicable Notice of Exercise. No ink-original Notice
of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise
be required. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to
the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in
which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading Days of the date on
which the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion
of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable
hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records
showing the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of
Exercise within one (1) Business Day of receipt of such notice. The Holder and any assignee, by acceptance of this Warrant, acknowledge
and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the
number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.
(b) Exercise Price. The exercise price per Warrant Share under this Warrant shall be $10.00, subject to adjustment hereunder as
set forth in Section 3 (the “Exercise Price”), but in each case can in no event be less than the Par Value.
(c) Net-Issuance Exercise. This Warrant may also be exercised, in whole or in part, at such time on a “net-issuance”
basis (which will entail that the cash payment to be made is limited to the Par Value of each Warrant Share purchased) in which the Holder
shall be entitled to receive a number of Warrant Shares determined as follows:
X = ((A—B) x C) / A
where:
(X) =
the number of Warrant Shares to be issued to the Holder on a net-issuance basis;
(A) =
as applicable: (i) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice of Exercise is (1) both executed and delivered pursuant to Section 2(a) hereof on a day that is not a Trading Day, (2) both executed and delivered pursuant to Section 2(a) hereof on a Trading Day prior to the opening of “regular trading hours” (as defined in Rule 600(b) of Regulation NMS promulgated under the federal securities laws) on such Trading Day or (3) executed during “regular trading hours” on a Trading Day and is delivered within two (2) hours thereafter (including until two (2) hours after the close of “regular trading hours” on a Trading Day), or (ii) the VWAP on the date of the applicable Notice of Exercise if the date of such Notice of Exercise is a Trading Day and such Notice of Exercise is both executed and delivered pursuant to Section 2(a) hereof after the close of “regular trading hours” on such Trading Day;
2
(B) =
the Exercise Price of this Warrant, as adjusted hereunder, minus the Par Value; and
(C) =
the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather than on a net-issuance basis.
The number of Warrant Shares that would be surrendered
by the Holder in connection with any exercise on a net-issuance basis would be equal to C-X.
If Warrant Shares are issued on a net-issuance basis,
the parties acknowledge and agree that by virtue of the Holder having to make payment to the Company of the Par Value in cash, the exemption
from registration provided under Section 3(a)(9) of the Securities Act shall not be available to the Holder, such that the Warrant
Shares issued thereby will be “restricted securities” and the holding period of the Warrant Shares being issued may not be
tacked on to the holding period of this Warrant.
Notwithstanding anything herein to the contrary,
on the Termination Date, this Warrant shall be automatically exercised on a net-issuance basis pursuant to this Section 2(c).
(d) Mechanics of Exercise.
(i) Delivery of Warrant Shares Upon Exercise. The Company shall cause its transfer agent to issue the Warrant Shares and thereupon
the Warrant Shares to be transmitted to the Holder by crediting the account of the Holder’s or its designee’s balance account
with The Depository Trust Company through its Deposit or Withdrawal at Custodian system if there is an effective resale registration statement
permitting the resale of the Warrant Shares by the Holder and the Holder is contemporaneously reselling such Warrant Shares pursuant to
such resale registration statement, and otherwise by physical delivery of a certificate, or reasonable evidence of issuance by book entry
of ownership of the Warrant Shares registered on the books of the transfer agent in the name of the Holder or its designee, for the number
of Warrant Shares to which the Holder is entitled pursuant to such exercise to the address specified by the Holder in the Notice of Exercise
by the date that is the later of (i) the Standard Settlement Period after the delivery to the Company of the Notice of Exercise,
and (ii) seven (7) Trading Days after delivery of the aggregate Exercise Price to the Company (such date, the “Warrant
Share Delivery Date”); provided, however, in any event, the Company shall not be obligated to deliver
Warrant Shares purchased until it has received the aggregate Exercise Price for such Warrant Shares. As used herein, “Standard
Settlement Period” means the standard settlement period, expressed in a number of Trading Days, on the Company’s primary
Trading Market with respect to the Common Stock as in effect on the date of delivery of the Notice of Exercise.
3
(ii) Delivery of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request
of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver to the Holder a new
Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall
in all other respects be identical with this Warrant.
(iii) Rescission Rights. If the Company fails to transmit to the Holder the Warrant Shares pursuant to Section 2(d)(i) by
the Warrant Share Delivery Date (subject to receipt of the aggregate Exercise Price for the applicable exercise (or, in the case of exercise
on a net-issuance basis, the aggregate Par Value of the Warrant Shares being purchased), then the Holder will have the right to rescind
such exercise prior to the delivery of the Warrant Shares.
(iv) No Fractional Shares or Scrip. No fractional Warrant Shares or scrip representing fractional Warrant Shares shall be issued
upon the exercise of this Warrant. As to any fraction of a Warrant Share which the Holder would otherwise be entitled to purchase upon
such exercise, the Company shall pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied
by the Exercise Price.
(v) Charges, Taxes and Expenses. Issuance of Warrant Shares shall be made without charge to the Holder for any capital, stamp,
issue, financial transaction and registration or transfer tax or other incidental expense payable in the United States, or in any other
jurisdiction in which the Company may be domiciled or resident or to whose taxing jurisdiction it may be generally subject, in respect
of the issuance, transfer or delivery of such Warrant Shares, all of which taxes and expenses shall be paid by the Company, and such Warrant
Shares shall be issued in the name of the Holder or in such name or names as may be directed by the Holder (“Specified Taxes”);
provided, however, that, in the event that Warrant Shares are to be issued in a name other than the name of
the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed
by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax
incidental thereto. The Company shall pay all transfer agent fees required for same-day processing of any Notice of Exercise and all fees
to the Depository Trust Company (or another established clearing corporation performing similar functions) required for same-day electronic
delivery of the Warrant Shares pursuant to the terms of this Warrant. If the Company shall fail to pay any Specified Taxes, the Holder
shall be entitled to tender and pay the same and the Company covenants to reimburse and indemnify the Holder in respect of any payment
thereof and any penalties payable in respect thereof.
4
(e) Entitlement in respect of Warrant Shares. Warrant Shares issued and delivered on exercise of this Warrant will be validly issued,
fully paid and non-assessable, and the Holder shall be entitled to all rights, distributions or payments in respect of such Warrant Shares
from the record date or other due date for the establishment of entitlement for which falls on or after the Initial Exercise Date, except
in any such case for any right excluded by mandatory provisions of applicable law. The Holder shall not be entitled to any rights, distributions
or payments in respect of any Warrant Shares the record date or other due date for the establishment of entitlement for which falls prior
to the date when the Warrant Shares are issued and delivered to the Holder.
(f) Holder’s Exercise Limitations. The Holder may notify the Company in writing in the event it elects to be subject to the
provisions contained in this Section 2(f); however, the Holder shall not be subject to this Section 2(f) unless
he, she or it makes such election. If the election is made, the Company shall not effect any exercise of this Warrant, and a Holder shall
not have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving
effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s
Affiliates, and any Persons acting as a group together with the Holder or any of the Holder’s Affiliates (such Persons, “Attribution
Parties”)) would beneficially own in excess of 4.9%, 9.9%, 19.9% (or such other amount as the Holder may specify) (the “Beneficial
Ownership Limitation”) of the outstanding shares of Common Stock. For purposes of the foregoing sentence, the number of shares
of Common Stock beneficially owned by the Holder, its Affiliates and Attribution Parties shall include the number of Warrant Shares issuable
upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of Warrant Shares which
would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any
of its Affiliates or Attribution Parties and (ii) exercise or conversion of the unexercised or unconverted portion of any other securities
of the Company (including, without limitation, any other Common Stock Equivalents) subject to a limitation on conversion or exercise analogous
to the limitation contained herein that are beneficially owned by the Holder or any of its Affiliates or Attribution Parties. Except as
set forth in the preceding sentence, for purposes of this Section 2(f), beneficial ownership shall be calculated in accordance
with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the
Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange
Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith (other than as it relates to a
Holder relying on the number of shares of Common Stock issued and outstanding as provided by the Company pursuant to this Section).
To the extent that the limitation contained in this Section 2(f) applies, the determination of whether this Warrant is
exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) and, of which portion
of this Warrant is exercisable up to the Beneficial Ownership Limitation shall be in the sole discretion of the Holder, and the submission
of a Notice of Exercise shall be deemed to be the Holder’s good faith determination of whether this Warrant is exercisable (in relation
to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant is
exercisable, in each case, subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm
the accuracy of such determination and shall have no liability for exercises of this Warrant that are not in compliance with the Beneficial
Ownership Limitation. In addition, a determination as to any group status as contemplated above shall be determined in accordance with
Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder and the Company shall have no obligation
to verify or confirm the accuracy of such determination and shall have no liability for exercises of the Warrant that are not in compliance
with the Beneficial Ownership Limitation. For purposes of this Section 2(f), in determining the number of outstanding shares
of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s most
recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the Company
or (C) a more recent written notice by the Company setting forth the number of shares of Common Stock outstanding. Upon the written
or oral request of a Holder, the Company shall within two (2) Trading Days confirm in writing to the Holder the number of shares
of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect
to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates or Attribution Parties
since the date as of which such number of outstanding shares of Common Stock was reported. By written notice to the Company, the Holder
may from time to time increase or decrease the Beneficial Ownership Limitation applicable to the Holder, provided, however, that any such
increase in the Beneficial Ownership Limitation will not be effective until the sixty-first (61st) day after such notice is delivered
to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with
the terms of this Section 2(f) to correct this paragraph (or any portion hereof) which may be defective or inconsistent
with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly
give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant.
5
Section 3. Certain
Adjustments.
(a) Subdivision, consolidation or reclassification. If the Company at any time while this Warrant is outstanding: (i) subdivides
outstanding Common Stock into a larger number of shares, (ii) combines (including by way of a reverse share split) outstanding Common
Stock into a smaller number of shares or (iii) issues shares by reclassification of the Common Stock into any capital shares of the
Company, then in each case the Exercise Price shall be adjusted by multiplying the Exercise Price by the following fraction:
(A/B)
where:
(A) =
is the aggregate number of shares of Common Stock issued and outstanding immediately before such subdivision, consolidation, reclassification or such change, as the case may be; and
(B) =
is the aggregate number of shares of Common Stock issued and outstanding immediately after such subdivision, consolidation, reclassification or such change, as the case may be.
The number of Warrant Shares issuable upon exercise
of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment
made pursuant to this Section 3(a) shall become effective immediately after the effective date in the case of a subdivision,
combination or re-classification.
(b) [Reserved].
(c) VWAP Reset. If on the twenty-first trading day (the “Reset Termination Date”) following the six-month anniversary
of the Closing, the VWAP of the Common Stock for the twenty Trading Day period commencing on the date that is six months after the Closing
Date (the “Measurement Price”) is less than the Exercise Price then in effect, then the Exercise Price then in effect
shall be reduced to an amount equal to the greater of (i) the Measurement Price and (ii) [$7.28]/[$5.00].
(d) Adjustment Upon Issuance or Deemed Issuance of Common Stock. If and whenever during the period commencing on the execution
date of the Subscription Agreement and ending on the Termination Date the Company issues or sells, or in accordance with this Section 3(d) is
deemed to have issued or sold, any shares of Common Stock (including the issuance or sale of shares of Common Stock owned or held by or
for the account of the Company, but excluding the issuance of shares of Common Stock as a stock dividend, which shall adjust the Exercise
Price as provided in Section 3(f), and shares of Common Stock issued or sold, or deemed to have been issued or sold, by the Company
in connection with any Exempt Issuance) for Proceeds (the “New Issuance Price”) less than the Exercise Price then in
effect (each such issue, sale or deemed issuance or sale, a “Dilutive Issuance”), where the aggregate amount of Proceeds
received by the Company, together with all such prior issuances and sales (excluding, for the avoidance of doubt, any Exempt Issuance)
conducted for the purpose of raising capital by the Company on or after the execution date of the Subscription Agreement that were excluded
from this Section 3(d) by this clause, exceeds $500,000, then immediately after such Dilutive Issuance, the Exercise
Price then in effect shall be reduced to an amount equal to the New Issuance Price.
6
For purposes of determining the adjusted Exercise Price under
this Section 3(d), the following shall be applicable:
(i) Options and Convertible Securities. The consideration per share received by the Company for shares of Common Stock deemed to
have been issued pursuant to Section 3(d)(ii), relating to Options and Convertible Securities, shall be determined by dividing
(1) the total amount, if any, received or receivable by the Company as consideration for the issue of such Options or Convertible Securities,
plus the minimum aggregate amount of additional consideration (as set forth in the instruments relating thereto, without regard to any
provision contained therein for a subsequent adjustment of such consideration) payable to the Company upon the exercise of such Options
or the conversion or exchange of such Convertible Securities, or in the case of Options for Convertible Securities, the exercise of such
Options for Convertible Securities and the conversion or exchange of such Convertible Securities, by
(2) the maximum number of shares of Common Stock (as set forth in the instruments relating thereto, without regard to any provision contained
therein for a subsequent adjustment of such number) deemed to be issued pursuant to Section 3(d)(ii) upon the issuance
of such Options or Convertible Securities.
(ii) Deemed Issuance of Common Stock Subject to Options and Convertible Securities.
(1) If the Company at any time or from time to time shall issue any Options or Convertible Securities or shall fix a record date for the
determination of holders of any class of securities entitled to receive any such Options or Convertible Securities, then the maximum number
of shares of Common Stock (as set forth in the instrument relating thereto, assuming the satisfaction of any conditions to exercisability,
convertibility or exchangeability but without regard to any provision contained therein for a subsequent adjustment of such number) issuable
upon the exercise of such Options or, in the case of Convertible Securities and Options therefor, the conversion or exchange of such Convertible
Securities, shall be deemed to be outstanding and to have been issued as of the time of such issue or, in case such a record date shall
have been fixed, as of the close of business on such record date.
7
(2) If the purchase price provided for in any Options, the additional consideration, if any, payable upon the issue, conversion, exercise
or exchange of any Convertible Securities, or the rate at which any Convertible Securities are convertible into or exercisable or exchangeable
for shares of Common Stock increases or decreases at any time (other than (x) proportional changes in conversion or exercise prices,
as applicable, in connection with an event referred to in Section 3(a) above and (y) automatic adjustments to such
terms pursuant to anti-dilution or similar provisions of such Option or Convertible Security which are not more favorable to the holder
thereof than the anti-dilution and similar provisions set forth herein), the Exercise Price in effect at the time of such increase or
decrease shall be adjusted to the Exercise Price, which would have been in effect at such time had such Options or Convertible Securities
provided for such increased or decreased purchase price, additional consideration or increased or decreased conversion rate, as the case
may be, at the time initially granted, issued or sold. For purposes of this Section 3(d)(ii)(2), if the terms of any Option
or Convertible Security that was outstanding as of the Initial Exercise Date are increased or decreased in the manner described in the
immediately preceding sentence, then such Option or Convertible Security and the shares of Common Stock deemed issuable upon exercise,
conversion or exchange thereof shall be deemed to have been issued as of the date of such increase or decrease. No adjustment pursuant
to this Section 3(d)(ii)(2) shall be made if such adjustment would result in an increase of the Exercise Price then in
effect.
(iii) Calculation of Consideration Received.
(1) In case one or more Option is issued in connection with the issue or sale of other securities of the Company, together comprising
one integrated transaction, (x) each such Option will be deemed to have been issued for the Option Value of such Option and (y) the
other securities issued or sold in such integrated transaction shall be deemed to have been issued or sold for the difference of (I) the
aggregate consideration received by the Company less any consideration paid or payable by the Company pursuant to the terms of such other
securities of the Company, less (II) the Option Value of each such Options; provided, that, no share of Common Stock
shall be deemed to have been issued for less than a fraction of the aggregate consideration received (excluding the minimum aggregate
amount of additional consideration (as set forth in the instruments relating thereto, without regard to any provision contained therein
for a subsequent adjustment of such consideration) payable to the Company upon the exercise of any such Options, or in the case of Options
for Convertible Securities, the exercise of such Options for Convertible Securities and the conversion or exchange of such Convertible
Securities) equal to (A) one divided by (B) the total number of shares of Common Stock issued or issuable in the integrated
transaction (including the number of shares underlying any Options and Convertible Securities).
8
(2) If any shares of Common Stock, Options or Convertible Securities are issued or sold for a consideration other than cash, the amount
of such consideration received by the Company will be the fair value of such consideration, except where such consideration consists of
publicly traded securities, in which case the amount of consideration received by the Company will be the closing sale price of such publicly
traded securities on the date of receipt. If any shares of Common Stock, Options or Convertible Securities are issued to the owners of
the non-surviving entity in connection with any merger in which the Company is the surviving entity, the amount of consideration therefor
will be deemed to be the fair value of such portion of the net assets and business of the non-surviving entity as is attributable to such
shares of Common Stock, Options or Convertible Securities, as the case may be. The fair value of any consideration other than cash or
publicly traded securities will be determined jointly by the Company and the holders of a majority in interest of this Warrant and the
other common stock purchase warrants with substantially the same terms as this Warrant, with an initial exercise price of $10.00 per share,
issued on the Initial Exercise Date, and then outstanding. If such parties are unable to reach agreement within ten (10) days after
the occurrence of an event requiring valuation (the “Valuation Event”), the fair value of such consideration will be
determined within five (5) Business Days after the tenth (10th) day following the Valuation Event by an independent, reputable appraiser
jointly selected by the Company and the holders of a majority in interest of this Warrant and the other common stock purchase warrants,
with an initial exercise price of $10.00 per share, issued on the Initial Exercise Date, and then outstanding. The determination of such
appraiser shall be final and binding upon all parties absent manifest error and the fees and expenses of such appraiser shall be borne
by the Company.
(iv) Record Date. If the Company takes a record of the holders of shares of Common Stock for the purpose of entitling them (A) to
receive a dividend or other distribution payable in shares of Common Stock, Options or in Convertible Securities or (B) to subscribe
for or purchase shares of Common Stock, Options or Convertible Securities, then such record date will be deemed to be the date of the
issuance or sale of the shares of Common Stock deemed to have been issued or sold upon the declaration of such dividend or the making
of such other distribution or the date of the granting of such right of subscription or purchase, as the case may be.
(v) Expiration or Termination of Options or Convertible Securities. Upon the expiration or termination of any unexercised Option
or unconverted or unexchanged Convertible Securities (or portion thereof) which resulted (either upon its original issuance or upon a
revision of its terms) in an adjustment to the Exercise Price pursuant to the terms of Section 3(d), the Exercise Price shall
be readjusted to such Exercise Price as would have obtained had such Option or Convertible Securities (or portion thereof) never been
issued.
9
(e) Subsequent Rights Offerings. In addition to any adjustments pursuant to Section 3(a) above,
if at any time after the Initial Exercise Date the Company grants, issues or sells pro rata to the record holders of shares of Common
Stock any rights, options or warrants entitling them to subscribe for or purchase shares of Common Stock (“Purchase Rights”)
at a price per share of Common Stock that is less than the VWAP of the Common Stock for the twenty Trading Day period ending on, and including,
the Trading Day immediately preceding the date of announcement of the issuance of such Purchase Rights, then in each case the Exercise
Price shall be adjusted based on the following formula:
EP1
= EP0 x (OS0 + Y) / (OS0 + X)
where:
EP0
is the Exercise Price in effect immediately prior to the close of business on the Record Date for the issuance of such Purchase Rights;
EP1
is the Exercise Price in effect immediately after the close of business on the Record Date for the issuance of such Purchase Rights;
OS0
is the aggregate number of shares of Common Stock issued and outstanding immediately prior to the close of business on the Record Date for the issuance of such Purchase Rights;
X
is the aggregate number of shares of Common Stock deliverable pursuant to such Purchase Rights; and
Y
is the number of shares of Common Stock equal to (i) the aggregate price payable to exercise such Purchase Rights, divided by (ii) the VWAP for the Common Stock for the twenty Trading Day period ending on, and including, the Trading Day immediately preceding the date of announcement of the issuance of such Purchase Rights.
10
Any adjustment to the Exercise Price made under this
Section 3(e) shall be made successively whenever any such Purchase Rights are issued and shall become effective immediately
after the close of business on the Record Date for the issuance of such Purchase Rights. To the extent that shares of Common Stock are
not delivered after the expiration of such Purchase Rights, the Exercise Price shall be increased to the Exercise Price that would then
be in effect had the decrease with respect to the issuance of such Purchase Rights been made on the basis of delivery of only the number
of shares of Common Stock actually delivered. If such Purchase Rights are not so issued, the Exercise Price shall be increased to the
Exercise Price that would then be in effect if the Record Date for the issuance of such Purchase Rights had not occurred.
For purposes of this Section 3(e), in
determining whether any Purchase Rights entitle the holders to subscribe for or purchase shares of Common Stock at a price per share of
Common Stock that is less than the VWAP of the Common Stock for the twenty Trading Day period ending on, and including, the Trading Day
immediately preceding the date of announcement of the issuance of such Purchase Rights, and in determining the aggregate offering price
of such shares of Common Stock, there shall be taken into account any consideration received by the Company for such Purchase Rights and
any amount payable on exercise or conversion thereof, the value of such consideration, if other than cash, to be determined by the Board
of Directors.
(f) Adjustment for Dividends. If the Company shall declare or make any dividend or other distribution of its assets (or rights
to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including, without limitation,
any distribution of cash, shares or other securities, property or options by way of a dividend, spin off, reclassification, corporate
rearrangement or other similar transaction) (a “Distribution”), at any time after the issuance of this Warrant, then
in each case the Exercise Price shall be adjusted by multiplying the Exercise Price by the following fraction:
A - B
A
where:
(A) =
is the VWAP of one Warrant Share on the Ex-Date in respect of such Distribution; and
(B) =
is the portion of the Fair Market Value of the Distribution attributable to one Warrant Share, with such portion being determined by dividing the Fair Market Value of the Distribution by the number of shares of Common Stock entitled to receive the Distribution).
11
(g) Fundamental Transaction.
(i) If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in
one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company
(and all of its subsidiaries, taken as a whole), directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance
or other disposition of all or substantially all of its assets in one or a series of related transactions (other than to the Company or
a subsidiary of the Company), (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company
or another Person) is completed pursuant to which holders of shares of Common Stock are permitted to sell, tender or exchange their shares
for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding shares of Common Stock,
(iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization
of the shares of Common Stock or any compulsory share exchange pursuant to which the shares of Common Stock are effectively converted
into or exchanged for other securities, cash or property (other than as a result of a share subdivision, consolidation or reclassification
of shares of Common Stock covered by Section 3(a)), or (v) the Company, directly or indirectly, in one or more related
transactions consummates a share or share purchase agreement or other business combination (including, without limitation, a reorganization,
recapitalization, merger or scheme of arrangement) with another Person or group of Persons whereby such other Person or group acquires
50% or more of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons
making or party to, or associated or affiliated with the other Persons making or party to, such share or share purchase agreement or other
business combination) or 50% or more of the voting power of the common equity of the Company (each a “Fundamental Transaction”),
then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have
been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without
regard to any limitation in Section 2(f) on the exercise of this Warrant), the number of shares of Common Stock of the
successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate
Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number of Warrant Shares for which
this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 2(f) on
the exercise of this Warrant). For the avoidance of doubt, the Transaction shall be deemed not to be a Fundamental Transaction.
12
(ii) For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate
Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction,
and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value
of any different components of the Alternate Consideration. If holders of shares of Common Stock are given any choice as to the securities,
cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration
it receives upon any exercise of this Warrant following such Fundamental Transaction. Notwithstanding anything to the contrary, in the
event of a Fundamental Transaction in which less than seventy percent (70%) of the consideration receivable by the holders of shares of
Common Stock in the applicable Fundamental Transaction is payable in the form of common equity of the Company or in the Successor Entity
(or any holding company that owns 100% of the common equity interests of the Company or the Successor Entity, as applicable) that is listed
for trading on a national securities exchange or is quoted in an established over-the-counter market, or is to be so listed for trading
or quoted prior to or immediately following such Fundamental Transaction, the Company or any Successor Entity (as defined below) shall,
at the Holder’s option, exercisable concurrently with the consummation of the Fundamental Transaction (or, if later, the later of
(i) the date of the public announcement of the applicable Fundamental Transaction and (ii) within 30 days of the earlier of
(A) the consummation of the Fundamental Transaction and (B) the date of the public announcement of the applicable Fundamental
Transaction), purchase this Warrant from the Holder by paying to the Holder an amount of cash equal to the Black Scholes Value of the
remaining unexercised portion of this Warrant on the date of the consummation of such Fundamental Transaction; provided,
that if holders of shares of Common Stock of the Company are not offered or paid any consideration in such Fundamental Transaction, such
holders of Common Stock will be deemed to have received shares of Common Stock or common stock of the Successor Entity (which Successor
Entity may be the Company following such Fundamental Transaction) in such Fundamental Transaction. The payment of the Black Scholes Value
will be made by wire transfer of immediately available funds (or such other consideration) within the later of (i) five Business
Days of the Holder’s election and (ii) the date of consummation of the Fundamental Transaction.
(iii) The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not
the survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company under this
Warrant and the other Transaction Documents in accordance with the provisions of this Section 3(g) pursuant to
written agreements in form and substance reasonably satisfactory to the Holder (without unreasonable delay) prior to such Fundamental
Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant a security of the Successor Entity
evidenced by a written instrument substantially similar in form and substance to this Warrant which is exercisable for a corresponding
number of capital shares of such Successor Entity (or its parent entity) equivalent to the Warrant Shares acquirable and receivable upon
exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, (and
solely if the holders of the Common Stock (and Common Stock Equivalents) immediately prior to consummation of the applicable Fundamental
Transaction do not beneficially own upon consummation of such Fundamental Transaction, directly or indirectly (including through any one
or more holding companies that owns 100% of the common equity interests of the Company or the Successor Entity), at least 50% of the voting
power of the common equity of the Company or the Successor Entity, as applicable, with an exercise price which applies the Exercise Price
hereunder to the shares of capital stock received by holders of shares of Common Stock in such Fundamental Transaction, but taking into
account the relative value of the Warrant Shares and the value of such capital shares and such exercise price being for the purpose of
protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction), and which is reasonably
satisfactory in form and substance to the Holder.
13
(h) Calculations. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of
a share, as the case may be. For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and
outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and
outstanding.
(i) Number of Warrant Shares. Simultaneously with any adjustment to the Exercise Price pursuant to this Section 3,
the number of Warrant Shares that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately so that
after such adjustment the aggregate Exercise Price payable hereunder for the adjusted number of Warrant Shares shall be the same as the
aggregate Exercise Price in effect immediately prior to such adjustment (without regard to any limitations on exercise contained herein).
(j) Notice to Holder.
(i) Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the
Company shall promptly deliver to the Holder by email a notice setting forth the Exercise Price after such adjustment and any resulting
adjustment to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.
(ii) Notice to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form)
on the shares of Common Stock, (B) the Company shall declare a redemption of the shares of Common Stock, (C) the Company shall
authorize the granting to all holders of shares of Common Stock rights or warrants to subscribe for or purchase any capital shares of
any class or of any rights, (D) the approval of any shareholders of the Company shall be required in connection with any reclassification
of the shares of Common Stock, any consolidation or merger to which the Company (or any of its subsidiaries) is a party, any sale or transfer
of all or substantially all of its assets, or any compulsory share exchange whereby the shares of Common Stock are converted into other
securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding
up of the affairs of the Company, then, in each case, the Company shall cause to be delivered by facsimile or email to the Holder at its
last facsimile number or email address as it shall appear upon the Warrant Register of the Company, at least 20 calendar days prior to
the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for
the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the
holders of the shares of Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to
be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected
to become effective or close, and the date as of which it is expected that holders of the shares of Common Stock of record shall be entitled
to exchange their shares of Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation,
merger, sale, transfer or share exchange; provided, that, notwithstanding the foregoing, any notice delivery requirement hereunder shall
also be deemed satisfied by filing or furnishing such communication with the Commission via the EDGAR system; provided, further, that
the failure to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate action
required to be specified in such notice. To the extent that any notice provided to the Holder in accordance with the terms of this Warrant
constitutes, or contains, material, non-public information regarding the Company or any of the subsidiaries, the Company shall simultaneously
file such notice with the Commission pursuant to a Current Report on Form 8-K, unless determined by the Company that such filing
would be harmful to the Company at such time, in which case the Company shall file such Form 8-K as soon as is reasonably practicable
in its discretion. The Holder shall remain entitled to exercise this Warrant during the period commencing on the date of such notice to
the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.
14
(k) Voluntary Adjustment By Company. Subject to the rules and regulations of the Trading Market, the Company may at any time
during the term of this Warrant, subject to the prior written consent of the Holder, reduce the then current Exercise Price to any amount
and for any period of time deemed appropriate by the board of directors of the Company.
(l) Transaction. Notwithstanding the foregoing, no adjustment to the Exercise Price shall be made as a result of the Transaction.
(m) Redemption.
(i) All but not less than all of the outstanding Warrants may be redeemed, at the option of the Company,
at any time commencing on the two-year anniversary of the Closing and ending on the Termination Date, upon notice to the Holder as provided
in clause (ii) below, at the price of $0.01 per Warrant (“Redemption Price”), provided that the closing
price of the Common Stock equals or exceeds $35.00 per share (subject to adjustment in accordance with Section 3(a) hereof),
on each of twenty (20) Trading Days within any thirty (30) Trading Day period ending on the third Trading Day prior to the date on which
notice of redemption is given; provided, that in the event that the Holder elects to exercise its Warrants in connection with any such
redemption and such exercise would result in the Holder beneficially owning (as calculated in accordance with Section 2(f) hereof)
shares of Common Stock in excess of the Beneficial Ownership Limitation, then any shares of Common Stock issued pursuant to such exercise
in excess of the Beneficial Ownership Limitation shall instead be held in reserve by the Company and issued to the Holder as promptly
as reasonably practicable following written notice from the Holder that the receipt of such shares will not cause the Holder to beneficially
own shares of Common Stock in excess of the Beneficial Ownership Limitation.
(ii) In the event the Company shall elect to redeem all of the Warrants, the Company shall fix a date for
the redemption (the “Redemption Date”). Notice of redemption shall be mailed by first class mail, postage prepaid,
by the Company not less than thirty (30) days prior to the Redemption Date to the Holders at their last addresses as they shall appear
on the registration books. Any notice mailed in the manner herein provided shall be conclusively presumed to have been duly given whether
or not the Holder received such notice.
15
(iii) The Warrants may be exercised, for cash at the Company’s discretion, at any time after notice of redemption shall have been
given by the Company pursuant to this clause (m) and prior to the Redemption Date. In the event the Company determines to require
all Holders to exercise their Warrants on a “cashless basis”, the notice of redemption will contain the information necessary
to calculate the number of shares of Common Stock to be received upon exercise of the Warrants. On and after the Redemption Date, the
Holder shall have no further rights except to receive, upon surrender of the Warrants, the Redemption Price.
Section 4. Transfer
of Warrant.
(a) Transferability. Subject to compliance with any applicable securities laws and the conditions set forth in Section 4(d) hereof,
this Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in part,
upon surrender of this Warrant at the principal office of the Company or its designated agent, together with a written assignment of this
Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any
transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall execute
and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination or denominations
specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so
assigned, and this Warrant shall promptly be cancelled. Notwithstanding anything herein to the contrary, the Holder shall not be required
to physically surrender this Warrant to the Company unless the Holder has assigned this Warrant in full, in which case, the Holder shall
surrender this Warrant to the Company within three (3) Trading Days of the date on which the Holder delivers an assignment form to
the Company assigning this Warrant in full. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder
for the purchase of Warrant Shares without having a new Warrant issued.
(b) New Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office
of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by
the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved in
such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants
to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the Initial Exercise
Date and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto, and if applicable,
shall reflect any adjustment to the Exercise Price prior to the date of such transfer or exchange.
16
(c) Warrant Register. The Company shall register this Warrant, upon records to be maintained by the
Company for that purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time.
The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof
or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.
(d) Transfer Restrictions. This Warrant and the Warrant Shares may only be transferred in compliance with U.S. state and federal
securities laws and, if the transfer occurs on or prior to the Reset Termination Date, subject to the transferee agreeing to restrictions
consistent with Section 14(d) of the Subscription Agreement in form and substance reasonably acceptable to the Company as a
condition to such transfer. In connection with any transfer of this Warrant or the Warrant Shares other than pursuant to an effective
registration statement, the Company may require the transferor to provide to the Company an opinion of counsel selected by the transferor
and reasonably acceptable to the Company, 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 this Warrant or the Warrant Shares under the Securities Act.
(e) Representation by the Holder. The Holder, by the acceptance hereof, represents and warrants that it is acquiring this Warrant
and, upon any exercise hereof, will acquire the Warrant Shares issuable upon such exercise, for its own account and not with a view to
or for distributing or reselling such Warrant Shares or any part thereof in violation of the Securities Act or any applicable state securities
law, except pursuant to sales registered or exempted under the Securities Act.
Section 5. Miscellaneous.
(a) No Rights as a Holder of Warrant Shares Until Exercise. This Warrant does not entitle the Holder to any rights as a holder
of shares of Common Stock prior to the exercise hereof as set forth in Section 2(d)(i).
(b) Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any certificate evidencing ownership of Warrant Shares,
and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant,
shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or share certificate, if mutilated, the
Company will make and deliver a new Warrant or share certificate of like tenor and dated as of such cancellation, in lieu of such Warrant
or share certificate.
17
(c) Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any
right required or granted herein shall not be a Business Day, then, such action may be taken or such right may be exercised on the next
succeeding Business Day.
(d) Provision for Issuance of Underlying Shares.
(i) The Company covenants that, during the period the Warrant is outstanding, it will reserve from its authorized but unissued Common
Stock a number of shares of Common Stock equal to the number of shares of Common Stock issuable upon the exercise of any purchase rights
under this Warrant (without regard to any limitation on exercise set forth herein and assuming an Exercise Price equal to the lower of
(i) [$7.28]/[$5.00] and (ii) the Exercise Price then in effect). The Company will take all such reasonable action as may be
necessary to assure that such shares of Common Stock may be issued as provided herein without violation of any applicable law or regulation,
or of any requirements of the Trading Market upon which the Common Stock may be listed. The Company covenants that all Warrant Shares
which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented
by this Warrant and payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully paid and nonassessable
and free from all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of any
transfer occurring contemporaneously with such issue).
(ii) The Company will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as
may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. The Company will use
commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction
thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.
(iii) Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable
or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary
from any public regulatory body or bodies having jurisdiction thereof.
(e) Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be
governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles
of conflicts of law thereof. Each party agrees that all legal Proceedings concerning the interpretations, enforcement and defense of the
transactions contemplated by this Warrant (whether brought against a party hereto or its respective Affiliates, directors, officers, shareholders,
partners, members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the Borough of Manhattan
in the City of New York, New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts
sitting in the Borough of Manhattan in the City of New York, New York for the adjudication of any dispute hereunder or in connection herewith
or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of this Warrant), and hereby
irrevocably waives, and agrees not to assert in any Action or Proceeding, any claim that it is not personally subject to the jurisdiction
of any such court, that such 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 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 Warrant 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 any party shall commence
an Action or Proceeding to enforce any provisions of this Warrant, then, the prevailing party in such Action or Proceeding shall be reimbursed
by the non-prevailing party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation
and prosecution of such Action or Proceeding.
18
(f) Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered,
will have restrictions upon resale imposed by state and federal securities laws.
(g) Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder
shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies. Without limiting any other
provision of this Warrant, if the Company willfully and knowingly fails to comply with any provision of this Warrant, which results in
any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to cover any costs and expenses
including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred by the Holder in collecting
any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.
(h) Notices. Any 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 time of transmission, if such notice or communication
is delivered via email at the e-mail address as set forth on the signature pages attached hereto, or to such other address as the
Company or the Holder may indicate by a notice delivered to the other from time to time, at or prior to 5:30 p.m. (New York City
time) on a Trading Day, (b) the next Trading Day after the time of transmission, if such notice or communication is delivered via
email attachment at the e-mail address as set forth on the signature pages attached hereto on a day that is not a Trading Day or
later than 5:30 p.m. (New York City time) on any Trading Day, (c) the second (2nd) Trading Day following the date of mailing,
if sent by U.S. nationally recognized overnight courier service or (d) upon actual receipt by the party to whom such notice is required
to be given. The address for such notices and communications shall be as set forth on the signature pages attached hereto, or to
such other address as the Company or the Holder may indicate by a notice delivered to the other from time to time.
(i) Limitation of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant
to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the
Holder for the purchase price of any shares of Common Stock or as a shareholder of the Company, whether such liability is asserted by
the Company or by creditors of the Company.
19
(j) Remedies. The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will
be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation
for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert the defense
in any action for specific performance that a remedy at law would be adequate.
(k) Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby
shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted
assigns of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and
shall be enforceable by the Holder or holder of Warrant Shares.
(l) Amendment. This Warrant may be modified, waived or amended or the provisions hereof waived with the written consent of the
Company and the Holder.
(m) Severability. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and
valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision
shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining
provisions of this Warrant.
(n) Headings. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed
a part of this Warrant.
********************
(Signature Page Follows)
20
IN WITNESS WHEREOF, the parties hereto have caused
this Warrant to Purchase Common Stock to be duly executed by their respective authorized signatories as of the date first indicated above.
[PUBCO]
Address for Notice:
By:
Name:
Title:
Email:
With a copy to (which shall not constitute notice):
IN WITNESS WHEREOF, the undersigned have caused this
Warrant To Purchase Common Stock to be duly executed by their respective authorized signatories as of the date first indicated above.
Name of Purchaser:
Signature of
Authorized Signatory of Purchaser:
Name of Authorized Signatory:
Title of Authorized Signatory:
Email Address of Authorized Signatory:
Address for Notice to Purchaser:
Address for Delivery of Securities to Purchaser
(if not same as address for notice):
Warrant Shares:
EIN Number:
SCHEDULE A
“Action” means any action,
suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the applicable party, threatened against
or affecting the applicable party or any of its properties before or by any court, arbitrator, governmental or administrative agency or
regulatory authority (federal, state, county, local or foreign).
“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.
“Black Scholes Value” means
the value of this Warrant based on the Black-Scholes Option Pricing Model obtained from the “OV” function on Bloomberg determined
as of the day of consummation of the applicable Fundamental Transaction for pricing purposes and reflecting (A) a risk-free interest
rate corresponding to the U.S. Treasury rate for a period equal to the time between the date of the public announcement of the applicable
contemplated Fundamental Transaction and the Termination Date, (B) an expected volatility equal to the greater of 100%
and the 100 day volatility obtained from the HVT function on Bloomberg (determined utilizing a 365 day annualization factor) as of the
Trading Day immediately following the public announcement of the applicable contemplated Fundamental Transaction, (C) the underlying
price per share used in such calculation shall be the greater of (i) the sum of the price per share being offered in cash,
if any, plus the value of any non-cash consideration, if any, being offered in such Fundamental Transaction and (ii) the highest
VWAP during the period beginning on the Trading Day immediately preceding the announcement of the applicable Fundamental Transaction (or
the consummation of the applicable Fundamental Transaction, if earlier) and ending on the Trading Day of the Holder’s request pursuant
to Section 3(g), (D) a remaining option time equal to the time between the date of the public announcement of the applicable
Fundamental Transaction and the Termination Date and (E) a zero cost of borrow.
“Bloomberg” means Bloomberg
L.P.
“Business Day” means any day
other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required by law to remain
closed; provided, however, for clarification, commercial banks shall not be deemed to be authorized or required
by law to remain closed due to “stay at home,” “shelter-in-place,” “non-essential employee” or any
other similar orders or restrictions or the closure of any physical branch locations at the direction of any governmental authority so
long as the electronic funds transfer systems (including for wire transfers) of commercial banks in The City of New York are generally
open for use by customers on such day.
“Closing Date” means the Trading
Day on which the Transaction is consummated.
“Common
Stock Equivalents” means any securities of the Company which would entitle the holder thereof to acquire at any time shares
of Common Stock, including, without limitation, any debt, preference shares, right, option, warrant or other instrument that is at any
time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, shares of Common Stock,
and any securities of the Company that when paired with one or more other securities of the Company or another entity entitles the holder
thereof to receive, shares of Common Stock.
Sch. A-1
“Convertible
Securities” means any shares or securities (other than Options) directly or indirectly convertible into or exercisable or exchangeable
for, or which otherwise entitles the holder thereof to acquire, any shares of Common Stock and any securities of the Company that
when paired with one or more other securities of the Company or another entity entitles the holder thereof to receive, shares of Common
Stock.
“Ex Date” means, in relation
to any Distribution, the first Trading Day on which the Common Stock is traded ex-the relevant Distribution.
“Exempt Issuance” means the
issuance of (a) any securities of the Company to employees, officers or directors, consultants, contractors, vendors or other agents
of the Company or its subsidiaries pursuant to any share or option plan duly adopted for such purpose or any other compensatory arrangement
with a director, executive officer, employee or agent approved by a majority of the non-employee members of the Board of Directors or
a majority of the members of a committee of non-employee directors established for such purpose for services rendered to the Company or
its subsidiaries, (b) securities pursuant to the Purchase Agreements or the Merger Agreement and securities upon the exercise or
exchange of or conversion of any securities issued pursuant to the Purchase Agreements or the Merger Agreement and/or other securities
exercisable or exchangeable for or convertible into shares of Common Stock issued and outstanding on the Closing Date, provided that such
securities have not been amended since the Closing Date to increase the number of such securities or to decrease the exercise price, exchange
price or conversion price of such securities (other than in connection with share consolidations, share divisions and automatic adjustments
to such terms pursuant to anti-dilution or similar provisions of such securities which are not more favorable to the holder thereof than
the anti-dilution and similar provisions set forth herein) or to extend the term of such securities, (c) any securities of the Company
at or prior to the Closing Date to the investors listed on Schedule B hereto, in each case including any “affiliate” (as defined
in Rule 144 under the Securities Act) thereof, for aggregate proceeds not exceeding $60 million, (d) the Underlying Shares,
and (e) securities issued pursuant to any merger, acquisition or strategic transaction or partnership, provided that (i) such
securities are issued as “restricted securities” (as defined in Rule 144) or are issued pursuant to an effective registration
statement pursuant to the Securities Act and (ii) any such issuance shall only be to a Person (or to direct or indirect the equityholders
and/or debtholders of a Person) which is, itself or through its subsidiaries, an operating company or an owner of an asset that the Company
determines in good faith is similar, reasonably related, incidental or ancillary to the then business or operations of the Company and
its subsidiaries or their assets or is otherwise to be used or useful in such business or operations, but any such Exempt Issuance shall
not include a transaction in which the Company is issuing securities (x) primarily for the purpose of raising capital, including
an at-the-market offering, or (y) to an entity whose primary business is investing in securities (excluding, for the avoidance of
doubt, any holding company or parent of a Person described above).
Sch. A-2
“Fair Market Value” means,
on any date:
(a)
in the case of a cash Distribution, the amount of such cash Distribution;
(b)
in the case of a Distribution of Securities (including shares of Common Stock), Spin-Off Securities, options, warrants or other rights or assets that are publicly traded on a Relevant Stock Exchange, the arithmetic mean of the daily VWAP of such Securities; and
(c)
in the case of Securities, Spin-Off Securities, options, warrants or other rights or assets that are not publicly traded on a Relevant Stock Exchange, an amount equal to the fair market value of such Securities, Spin-Off Securities, options, warrants or other rights or assets as determined in good faith by the Board of Directors of the Company, on the basis of a commonly accepted market valuation method and taking account of such factors as it considers appropriate, including the market price per share of Common Stock, the dividend yield of a share of Common Stock, the volatility of such market price, prevailing interest rates and the terms of such Securities, Spin-Off Securities, options, warrants or other rights or assets, and including as to the expiration date and exercise price or the like (if any) thereof.
“Merger
Agreement” means the Agreement and Plan of Merger, dated April 20, 2026 (as may be amended, supplemented or otherwise
modified from time to time), by and among the Company and the other parties thereto.
“Options”
means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible Securities.
“Option Value” means the value
of an Option based on the Black-Scholes Option Pricing model obtained from the “OV” function on Bloomberg determined as of
(A) the Trading Day prior to the public announcement of the issuance of the applicable Option, if the issuance of such Option is
publicly announced or (B) the Trading Day immediately following the issuance of the applicable Option if the issuance of such Option
is not publicly announced, for pricing purposes and reflecting (i) a risk-free interest rate corresponding to the U.S. Treasury rate
for a period equal to the remaining term of the applicable Option as of the applicable date of determination, (ii) an expected volatility
equal to the greater of 40% and the 100 day volatility obtained from the HVT function on Bloomberg as of (A) the Trading
Day immediately following the public announcement of the applicable Option if the issuance of such Option is publicly announced or (B) the
Trading Day immediately following the issuance of the applicable Option if the issuance of such Option is not publicly announced, (iii) the
underlying price per share used in such calculation shall be the highest weighted average price of the shares of Common Stock during the
period beginning on the Trading Day prior to the execution of definitive documentation relating to the issuance of the applicable Option
and ending on (A) the Trading Day immediately following the public announcement of such issuance, if the issuance of such Option
is publicly announced or (B) the Trading Day immediately following the issuance of the applicable Option if the issuance of such
Option is not publicly announced, (iv) a zero cost of borrow and (v) a 360 day annualization factor, provided, however, in case
any Option is issued in connection with the issue or sale of other securities of the Company, together comprising one integrated transaction,
in no event shall the Option Value exceed a fraction of the aggregate consideration received (excluding the minimum aggregate amount of
additional consideration (as set forth in the instruments relating thereto, without regard to any provision contained therein for a subsequent
adjustment of such consideration) payable to the Company upon the exercise of such Options, or in the case of Options for Convertible
Securities, the exercise of such Options for Convertible Securities and the conversion or exchange of such Convertible Securities) equal
to (1) the number of shares of Common Stock underlying such Option divided by (2) the total number of shares of Common Stock
issued or issuable in the integrated transaction (including the number of shares underlying such Option).
Sch. A-3
“Par Value”
means the par value of one share of Common Stock at such time.
“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, whether commenced or threatened.
“Proceeds” means, in respect
of any Dilutive Issuance:
(i)
in the case of an issuance by the Company of new shares of Common Stock (in each case other than upon exercise of rights of conversion into, or exercise or exchange for, or the right to otherwise acquire, any shares of Common Stock issuable pursuant to Options and Convertible Securities), the aggregate amount of the gross proceeds received by the Issuer in respect of such Dilutive Issuance;
(ii)
in the case of an issuance of Options and Convertible Securities, the aggregate amount of consideration received or receivable by the Company determined in accordance with Section 3(d)(i)(1).
“Purchase Agreements” means
the several Subscription Agreements, between the Company and certain original holders of warrants to purchase common stock, with an initial
exercise price of $10.00 per share, issued on the Initial Exercise Date, as amended, modified or supplemented from time to time in accordance
with its terms.
“Relevant Stock Exchange” means:
(a)
in respect of the Common Stock, the Trading Market or, if at the relevant time the Common Stock is not at that time listed or traded on the Trading Market, the principal stock exchange or securities market on which the Common Stock then listed, quoted, traded or dealt in; and
(b)
In respect of any Securities (other than Common Stock), Spin-Off Securities, options, warrants or other rights or assets, the principal stock exchange or securities market on which such Securities, Spin-Off Securities, options, warrants or other rights or assets are then listed, quoted, traded or dealt in.
“Securities”
means any securities including, but not limited to, shares of Common Stock and other capital stock of the Company, restricted share
units, or options, warrants or other rights to subscribe for or purchase or acquire shares of Common Stock or any other capital stock
of the Company.
Sch. A-4
“Spin-Off Securities” means
equity share capital of an entity other than the Company or options, warrants or other rights to subscribe for or purchase equity share
capital of an entity other than the Company.
“Subscription Agreement” means
the Amended and Restated Subscription Agreement, dated as of October 13, 2026, between the Company and the initial Holder of this
Warrant.
“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 Common Stock is listed or quoted for trading on the date in question: the NYSE American,
the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market or the New York Stock Exchange (or any successors
to any of the foregoing).
“Transaction” means the transactions
contemplated by the Merger Agreement.
“Transaction Documents” means
this Warrant, the other warrants to purchase common stock, with substantially the same terms as this Warrant, with an initial exercise
price of $10.00 per share, issued on the Initial Exercise Date, the Pre-Funded Warrant (as defined in the Subscription Agreement), the
Subscription Agreement and all exhibits and schedules thereto.
“Underlying Shares” means the
Warrant Shares issuable upon exercise of this Warrant and the other warrants to purchase common stock, with substantially the same terms
as this Warrant, with an initial exercise price of $10.00 per share, issued on the Initial Exercise Date.
“VWAP” means, for any date,
the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading
Market, the arithmetic mean of the daily volume weighted average prices of the Common Stock for each of the 20 Trading Days preceding
such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg
L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), with each such Trading
Day weighted equally regardless of the aggregate trading volume for such Trading Day, (b) if OTCQB or OTCQX is not a Trading Market,
the arithmetic mean of the daily volume weighted average prices of the Common Stock for each of the 20 Trading Days preceding such date
(or the nearest preceding date) on OTCQB or OTCQX as applicable, calculated in the same manner as clause (a), (c) if the Common Stock
is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported in The Pink Open Market
(or a similar organization or agency succeeding to its functions of reporting prices), the average of the highest closing bid price and
the lowest closing ask price of the Common Stock for the 20 Trading Days preceding such date, or (d) in all other cases, the fair
market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Holders of a majority
in interest of the Securities then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid
by the Company. For the avoidance of doubt, the daily volume weighted average price for each individual Trading Day shall be determined
by Bloomberg L.P. in accordance with its standard methodology, and the VWAP for the applicable period shall be calculated by summing such
daily values and dividing by the number of Trading Days in the measurement period (i.e., 20 Trading Days), such that each Trading Day’s
price is given equal weight irrespective of trading volume.
Sch. A-5
EXHIBIT A
NOTICE OF EXERCISE
TO:
[PUBCO]
Attn:
Email:
(1) The undersigned hereby
elects to purchase _______ Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if exercised in full), and
tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.
(2) Payment shall take
the form of (check applicable box):
¨
in lawful money of the United States; or
¨
if permitted the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 2(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the exercise on a net-issuance basis procedure set forth in subsection 2(c).
(3) Please issue said Warrant
Shares in the name of, and deliver any cash payable for any fractional Warrant Shares to, the undersigned or in and to such other name
as is specified below:
The Warrant Shares shall be delivered to the following
DWAC Account Number:
(4) In connection with
the exercise of this Warrant, or the portion hereof above designated, the undersigned acknowledges, represents to and agrees with the
Company that the undersigned is not an “affiliate” (as defined in Rule 144 under the Securities Act) of the Company and
has not been an “affiliate” (as defined in Rule 144 under the Securities Act) during the three months immediately preceding
the date hereof.
A-1
(5) The undersigned further
acknowledges (and if the undersigned is acting for the account of another person, that person has confirmed that it acknowledges) that
the Warrant Shares received upon exercise of this Warrant (or securities represented thereby) have not been registered under the Securities
Act and are “restricted securities”.
(6) The undersigned further
certifies that either:
(a) The undersigned is, and at the
time Warrant Shares are delivered upon exercise of this Warrant will be, the holder of the Warrant Shares, and the undersigned is not
a U.S. person (as defined in Regulation S under the Securities Act) and is located outside the United States (within the meaning of Regulation
S) and acquired, or have agreed to acquire and will have acquired, the Warrants being exercised and the Warrant Shares and being delivered
upon exercise outside the United States.
OR
(b) The undersigned is a qualified
institutional buyer (as defined in Rule 144A under the Securities Act) acting for its own account or for the account of one or more
qualified institutional buyers and the undersigned is (or such account or accounts are) the sole beneficial owner(s) of the Warrant
Shares to be received upon exercise of this Warrant.
The undersigned hereby instructs the Company register
the Warrant Shares in the name of:
1.
Name of Beneficial Owner to receive Warrant Shares:
2.
Address of Beneficial Owner to receive Warrant Shares:
3.
Number of Warrant Shares to be issued:
4.
Beneficial Owner’s Tax ID Number:
5.
Contact Name and Tel No/email address:
For any settlement inquiries, please contact
[_]:
[_]
[SIGNATURE OF HOLDER]
Name of Investing Entity:
Signature of Authorized Signatory of Investing Entity:
Name of Authorized Signatory:
Title of Authorized Signatory:
Date:
Signature Guarantee
Signature(s) must be guaranteed by an eligible Guarantor Institution (banks, stock brokers, savings and loan associations and credit unions) with membership in an approved signature guarantee medallion program pursuant to Securities and Exchange Commission Rule 17Ad-15 if Warrant Shares are to be issued other than to and in the name of the registered holder.
A-2
EXHIBIT B
ASSIGNMENT FORM
(To assign the foregoing Warrant, execute this
form and supply required information. Do not use this form to purchase shares.)
FOR VALUE RECEIVED, the foregoing Warrant and
all rights evidenced thereby are hereby assigned to
Name:
(Please Print)
Address:
(Please Print)
Phone Number:
Email Address:
Dated:
_____________ ______, _______
Holder’s Signature:
Holder’s Address:
B-1
EX-4.2 — EXHIBIT 4.2
EX-4.2
Filename: tm2627487d1_ex4-2.htm · Sequence: 3
Exhibit 4.2
Final Form
NEITHER THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS
EXERCISABLE HAVE BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN
RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE U.S. SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION
WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.
[PUBCO]
WARRANT TO PURCHASE SHARES OF COMMON STOCK
Warrant
Shares: [__________]
Initial Exercise Date: [●], [●]
THIS WARRANT TO PURCHASE SHARES OF COMMON STOCK (this
“Warrant”) certifies that, for value received, [__] or its assigns (the “Holder”) is entitled,
upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after the date hereof
(the “Initial Exercise Date”) to subscribe for and purchase from [Pubco], a Delaware corporation (the “Company”),
up to [ ] shares (as subject to adjustment hereunder, the “Warrant Shares”) of common
stock, par value $0.0001 per share, of the Company (“Common Stock”). The purchase price of one Warrant Share under
this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).
Section 1. Definitions.
Capitalized terms used and not otherwise defined herein shall have the meanings set forth in Schedule A hereto.
Section 2. Exercise.
(a) Exercise of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time
or times on or after the Initial Exercise Date by delivery to the Company (or such other office or agency that the Company may designate
by notice in writing to the registered Holder at the address of the Holder appearing on the books of the Company), as applicable, of a
duly executed PDF copy submitted by e-mail (or e-mail attachment) of the Notice of Exercise in the form annexed hereto (the “Notice
of Exercise”). Not later than the number of Trading Days comprising the Standard Settlement Period (as defined in Section
2(d)(i) herein) following the date of exercise as aforesaid, the Holder shall deliver to the Company the aggregate Exercise Price
for the shares specified in the applicable Notice of Exercise by wire transfer or cashier’s check drawn on a United States bank
unless the exercise on a net-issuance basis procedure specified in Section 2(c) below is available and specified in the applicable
Notice of Exercise. No ink-original Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee
or notarization) of any Notice of Exercise be required. Notwithstanding anything herein to the contrary, the Holder shall not be required
to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the
Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three
(3) Trading Days of the date on which the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting
in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding
number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and
the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver
any objection to any Notice of Exercise within one (1) Business Day of receipt of such notice. The Holder and any assignee, by acceptance
of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the
Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount
stated on the face hereof.
(b) Exercise Price. The exercise price per Warrant Share under this Warrant shall be $0.0001, subject to adjustment hereunder as
set forth in Section 3 (the “Exercise Price”), but in each case can in no event be less than the Par Value.
(c) Net-Issuance Exercise. This Warrant may also be exercised, in whole or in part, at such time on a “net-issuance”
basis (which will entail that the cash payment to be made is limited to the Par Value of each Warrant Share purchased) in which the Holder
shall be entitled to receive a number of Warrant Shares determined as follows:
X = ((A—B) x C) / A
where:
(X) =
the number of Warrant Shares to be issued to the Holder on a net-issuance basis;
(A) =
as applicable: (i) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice of Exercise is (1) both executed and delivered pursuant to Section 2(a) hereof on a day that is not a Trading Day, (2) both executed and delivered pursuant to Section 2(a) hereof on a Trading Day prior to the opening of “regular trading hours” (as defined in Rule 600(b) of Regulation NMS promulgated under the federal securities laws) on such Trading Day or (3) executed during “regular trading hours” on a Trading Day and is delivered within two (2) hours thereafter (including until two (2) hours after the close of “regular trading hours” on a Trading Day), or (ii) the VWAP on the date of the applicable Notice of Exercise if the date of such Notice of Exercise is a Trading Day and such Notice of Exercise is both executed and delivered pursuant to Section 2(a) hereof after the close of “regular trading hours” on such Trading Day;
2
(B) =
the Exercise Price of this Warrant, as adjusted hereunder, minus the Par Value; and
(C) =
the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather than on a net-issuance basis.
The number of Warrant Shares that would be surrendered
by the Holder in connection with any exercise on a net-issuance basis would be equal to C-X.
If Warrant Shares are issued on a net-issuance basis,
the parties acknowledge and agree that by virtue of the Holder having to make payment to the Company of the Par Value in cash, the exemption
from registration provided under Section 3(a)(9) of the Securities Act shall not be available to the Holder, such that the Warrant
Shares issued thereby will be “restricted securities” and the holding period of the Warrant Shares being issued may not be
tacked on to the holding period of this Warrant.
(d) Mechanics of Exercise.
(i) Delivery of Warrant Shares Upon Exercise. The Company shall cause its transfer agent to issue the Warrant Shares and thereupon
the Warrant Shares to be transmitted to the Holder by crediting the account of the Holder’s or its designee’s balance account
with The Depository Trust Company through its Deposit or Withdrawal at Custodian system if there is an effective resale registration statement
permitting the resale of the Warrant Shares by the Holder and the Holder is contemporaneously reselling such Warrant Shares pursuant to
such resale registration statement, and otherwise by physical delivery of a certificate, or reasonable evidence of issuance by book entry
of ownership of the Warrant Shares registered on the books of the transfer agent in the name of the Holder or its designee, for the number
of Warrant Shares to which the Holder is entitled pursuant to such exercise to the address specified by the Holder in the Notice of Exercise
by the date that is the later of (i) the Standard Settlement Period after the delivery to the Company of the Notice of Exercise,
and (ii) seven (7) Trading Days after delivery of the aggregate Exercise Price to the Company (such date, the “Warrant
Share Delivery Date”); provided, however, in any event, the Company shall not be obligated to deliver
Warrant Shares purchased until it has received the aggregate Exercise Price for such Warrant Shares. As used herein, “Standard
Settlement Period” means the standard settlement period, expressed in a number of Trading Days, on the Company’s primary
Trading Market with respect to the Common Stock as in effect on the date of delivery of the Notice of Exercise.
3
(ii) Delivery of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request
of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver to the Holder a new
Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall
in all other respects be identical with this Warrant.
(iii) Rescission Rights. If the Company fails to transmit to the Holder the Warrant Shares pursuant to Section 2(d)(i) by
the Warrant Share Delivery Date (subject to receipt of the aggregate Exercise Price for the applicable exercise (or, in the case of exercise
on a net-issuance basis, the aggregate Par Value of the Warrant Shares being purchased), then the Holder will have the right to rescind
such exercise prior to the delivery of the Warrant Shares.
(iv) No Fractional Shares or Scrip. No fractional Warrant Shares or scrip representing fractional Warrant Shares shall be issued
upon the exercise of this Warrant. As to any fraction of a Warrant Share which the Holder would otherwise be entitled to purchase upon
such exercise, the Company shall pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied
by the Exercise Price.
(v) Charges, Taxes and Expenses. Issuance of Warrant Shares shall be made without charge to the Holder for any capital, stamp,
issue, financial transaction and registration or transfer tax or other incidental expense payable in the United States, or in any other
jurisdiction in which the Company may be domiciled or resident or to whose taxing jurisdiction it may be generally subject, in respect
of the issuance, transfer or delivery of such Warrant Shares, all of which taxes and expenses shall be paid by the Company, and such Warrant
Shares shall be issued in the name of the Holder or in such name or names as may be directed by the Holder (“Specified Taxes”);
provided, however, that, in the event that Warrant Shares are to be issued in a name other than the name of
the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed
by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax
incidental thereto. The Company shall pay all transfer agent fees required for same-day processing of any Notice of Exercise and all fees
to the Depository Trust Company (or another established clearing corporation performing similar functions) required for same-day electronic
delivery of the Warrant Shares pursuant to the terms of this Warrant. If the Company shall fail to pay any Specified Taxes, the Holder
shall be entitled to tender and pay the same and the Company covenants to reimburse and indemnify the Holder in respect of any payment
thereof and any penalties payable in respect thereof.
4
(e) Entitlement in respect of Warrant Shares. Warrant Shares issued and delivered on exercise of this Warrant will be validly issued,
fully paid and non-assessable, and the Holder shall be entitled to all rights, distributions or payments in respect of such Warrant Shares
from the record date or other due date for the establishment of entitlement for which falls on or after the Initial Exercise Date, except
in any such case for any right excluded by mandatory provisions of applicable law. The Holder shall not be entitled to any rights, distributions
or payments in respect of any Warrant Shares the record date or other due date for the establishment of entitlement for which falls prior
to the date when the Warrant Shares are issued and delivered to the Holder.
(f) Holder’s Exercise Limitations. The Holder may notify the Company in writing in the event it elects to be subject to the
provisions contained in this Section 2(f); however, the Holder shall not be subject to this Section 2(f) unless he, she
or it makes such election. If the election is made, the Company shall not effect any exercise of this Warrant, and a Holder shall not
have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect
to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates,
and any Persons acting as a group together with the Holder or any of the Holder’s Affiliates (such Persons, “Attribution
Parties”)) would beneficially own in excess of 4.9%, 9.9%, 19.9% (or such other amount as the Holder may specify) (the “Beneficial
Ownership Limitation”) of the outstanding shares of Common Stock. For purposes of the foregoing sentence, the number of shares
of Common Stock beneficially owned by the Holder, its Affiliates and Attribution Parties shall include the number of Warrant Shares issuable
upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of Warrant Shares which
would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of
its Affiliates or Attribution Parties and (ii) exercise or conversion of the unexercised or unconverted portion of any other securities
of the Company (including, without limitation, any other Common Stock Equivalents) subject to a limitation on conversion or exercise analogous
to the limitation contained herein that are beneficially owned by the Holder or any of its Affiliates or Attribution Parties. Except as
set forth in the preceding sentence, for purposes of this Section 2(f), beneficial ownership shall be calculated in accordance
with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and the rules and regulations
promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is
in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance
therewith (other than as it relates to a Holder relying on the number of shares of Common Stock issued and outstanding as provided by
the Company pursuant to this Section). To the extent that the limitation contained in this Section 2(f) applies, the determination
of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution
Parties) and, of which portion of this Warrant is exercisable up to the Beneficial Ownership Limitation shall be in the sole discretion
of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s good faith determination of whether
this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties)
and of which portion of this Warrant is exercisable, in each case, subject to the Beneficial Ownership Limitation, and the Company shall
have no obligation to verify or confirm the accuracy of such determination and shall have no liability for exercises of this Warrant that
are not in compliance with the Beneficial Ownership Limitation. In addition, a determination as to any group status as contemplated above
shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder and the
Company shall have no obligation to verify or confirm the accuracy of such determination and shall have no liability for exercises of
the Warrant that are not in compliance with the Beneficial Ownership Limitation. For purposes of this Section 2(f), in determining
the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in
(A) the Company’s most recent periodic or annual report filed with the Securities Exchange Commission (the “Commission”),
as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company setting forth
the number of shares of Common Stock outstanding. Upon the written or oral request of a Holder, the Company shall within two (2) Trading
Days confirm in writing to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares
of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant,
by the Holder or its Affiliates or Attribution Parties since the date as of which such number of outstanding shares of Common Stock was
reported. By written notice to the Company, the Holder may from time to time increase or decrease the Beneficial Ownership Limitation
applicable to the Holder, provided, however, that any such increase in the Beneficial Ownership Limitation will not be effective until
the sixty-first (61st) day after such notice is delivered to the Company. The provisions of this paragraph shall be construed and implemented
in a manner otherwise than in strict conformity with the terms of this Section 2(f) to correct this paragraph (or any portion hereof)
which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements
necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor
holder of this Warrant.
5
Section 3. Certain
Adjustments.
(a) Subdivision, consolidation or reclassification. If the Company at any time while this Warrant is outstanding: (i) subdivides
outstanding Common Stock into a larger number of shares, (ii) combines (including by way of a reverse share split) outstanding Common
Stock into a smaller number of shares or (iii) issues shares by reclassification of the Common Stock into any capital shares of the
Company, then in each case the Exercise Price shall be adjusted by multiplying the Exercise Price by the following fraction:
(A/B)
where:
(A) =
is the aggregate number of shares of Common Stock issued and outstanding immediately before such subdivision, consolidation, reclassification or such change, as the case may be; and
(B) =
is the aggregate number of shares of Common Stock issued and outstanding immediately after such subdivision, consolidation, reclassification or such change, as the case may be.
The number of Warrant Shares issuable upon exercise
of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment
made pursuant to this Section 3(a) shall become effective immediately after the effective date in the case of a subdivision,
combination or re-classification.
(b) [Reserved].
(c) [Reserved].
(d) [Reserved].
(e) [Reserved].
6
(f) Adjustment for Dividends. If the Company shall
declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock,
by way of return of capital or otherwise (including, without limitation, any distribution of cash, shares or other securities, property
or options by way of a dividend, spin off, reclassification, corporate rearrangement or other similar transaction) (a “Distribution”),
at any time after the issuance of this Warrant, then in each case, the Holder shall be entitled to participate in such Distribution to
the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable
upon complete exercise of this Warrant immediately before the date of which a record is taken for such Distribution, or, if no such record
is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution.
Notwithstanding anything to the contrary herein, to the extent that the Holder’s right to participate in any Distribution would
result in the Holder exceeding the Beneficial Ownership Limitation or the Beneficial Ownership Limitation being ineffective, then the
Holder shall not be entitled to participate in such dividend to such extent and the portion of such Distribution shall be held in abeyance
for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership
Limitation.
(g) Fundamental Transaction.
(i) If, at any time while this Warrant is outstanding, (i) the
Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another
Person, (ii) the Company (and all of its subsidiaries, taken as a whole), directly or indirectly, effects any sale, lease, license, assignment,
transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions (other
than to the Company or a subsidiary of the Company), (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether
by the Company or another Person) is completed pursuant to which holders of shares of Common Stock are permitted to sell, tender or exchange
their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding shares of Common
Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization
of the shares of Common Stock or any compulsory share exchange pursuant to which the shares of Common Stock are effectively converted
into or exchanged for other securities, cash or property (other than as a result of a share subdivision, consolidation or reclassification
of shares of Common Stock covered by Section 3(a)), or (v) the Company, directly or indirectly, in one or more related transactions
consummates a share or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization,
merger or scheme of arrangement) with another Person or group of Persons whereby such other Person or group acquires 50% or more of the
outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party
to, or associated or affiliated with the other Persons making or party to, such share or share purchase agreement or other business combination)
or 50% or more of the voting power of the common equity of the Company (each a “Fundamental Transaction”), then,
upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been
issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without
regard to any limitation in Section 2(f) on the exercise of this Warrant), the number of shares of Common Stock of the successor
or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate
Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number of Warrant Shares for which
this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 2(f)
on the exercise of this Warrant). For the avoidance of doubt, the Transaction shall be deemed not to be a Fundamental Transaction.
7
(ii) For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate
Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction,
and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value
of any different components of the Alternate Consideration. If holders of shares of Common Stock are given any choice as to the securities,
cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration
it receives upon any exercise of this Warrant following such Fundamental Transaction.
(iii) The Company shall cause any successor entity in a Fundamental
Transaction in which the Company is not the survivor (the “Successor Entity”) to assume in writing all of the
obligations of the Company under this Warrant and the other Transaction Documents in accordance with the provisions of this Section
3(g) pursuant to written agreements in form and substance reasonably satisfactory to the Holder (without unreasonable delay)
prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant a security
of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant which is exercisable
for a corresponding number of capital shares of such Successor Entity (or its parent entity) equivalent to the Warrant Shares acquirable
and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental
Transaction, (and solely if the holders of the Common Stock (and Common Stock Equivalents) immediately prior to consummation of the applicable
Fundamental Transaction do not beneficially own upon consummation of such Fundamental Transaction, directly or indirectly (including through
any one or more holding companies that owns 100% of the common equity interests of the Company or the Successor Entity), at least 50%
of the voting power of the common equity of the Company or the Successor Entity, as applicable, with an exercise price which applies the
Exercise Price hereunder to the shares of capital stock received by holders of shares of Common Stock in such Fundamental Transaction,
but taking into account the relative value of the Warrant Shares and the value of such capital shares and such exercise price being for
the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction), and
which is reasonably satisfactory in form and substance to the Holder.
8
(h) Calculations. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share,
as the case may be. For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding as
of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.
(i) Number of Warrant Shares. Simultaneously with any adjustment to the Exercise Price pursuant to this Section 3, the number
of Warrant Shares that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately so that after such
adjustment the aggregate Exercise Price payable hereunder for the adjusted number of Warrant Shares shall be the same as the aggregate
Exercise Price in effect immediately prior to such adjustment (without regard to any limitations on exercise contained herein).
(j) Notice to Holder.
(i) Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company
shall promptly deliver to the Holder by email a notice setting forth the Exercise Price after such adjustment and any resulting adjustment
to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.
(ii) Notice to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the
shares of Common Stock, (B) the Company shall declare a redemption of the shares of Common Stock, (C) the Company shall authorize the
granting to all holders of shares of Common Stock rights or warrants to subscribe for or purchase any capital shares of any class or of
any rights, (D) the approval of any shareholders of the Company shall be required in connection with any reclassification of the shares
of Common Stock, any consolidation or merger to which the Company (or any of its subsidiaries) is a party, any sale or transfer of all
or substantially all of its assets, or any compulsory share exchange whereby the shares of Common Stock are converted into other securities,
cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs
of the Company, then, in each case, the Company shall cause to be delivered by facsimile or email to the Holder at its last facsimile
number or email address as it shall appear upon the Warrant Register of the Company, at least 20 calendar days prior to the applicable
record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such
dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the shares
of Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the
date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close,
and the date as of which it is expected that holders of the shares of Common Stock of record shall be entitled to exchange their shares
of Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or
share exchange; provided, that, notwithstanding the foregoing, any notice delivery requirement hereunder shall also be deemed satisfied
by filing or furnishing such communication with the Commission via the EDGAR system; provided, further, that the failure to deliver such
notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate action required to be specified
in such notice. To the extent that any notice provided to the Holder in accordance with the terms of this Warrant constitutes, or contains,
material, non-public information regarding the Company or any of the subsidiaries, the Company shall simultaneously file such notice with
the Commission pursuant to a Current Report on Form 8-K, unless determined by the Company that such filing would be harmful to the Company
at such time, in which case the Company shall file such Form 8-K as soon as is reasonably practicable in its discretion. The Holder shall
remain entitled to exercise this Warrant during the period commencing on the date of such notice to the effective date of the event triggering
such notice except as may otherwise be expressly set forth herein.
9
(k) Voluntary Adjustment By Company. Subject to the rules and regulations of the Trading Market, the Company may at any time during
the term of this Warrant, subject to the prior written consent of the Holder, reduce the then current Exercise Price to any amount and
for any period of time deemed appropriate by the board of directors of the Company.
(l) Transaction. Notwithstanding the foregoing, no adjustment to the Exercise Price shall be made as a result of the Transaction.
Section 4. Transfer of Warrant.
(a) Transferability. Subject to compliance with any applicable securities laws and the conditions set forth in Section 4(d)
hereof, this Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in
part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with a written assignment
of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to
pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall
execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination or denominations
specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so
assigned, and this Warrant shall promptly be cancelled. Notwithstanding anything herein to the contrary, the Holder shall not be required
to physically surrender this Warrant to the Company unless the Holder has assigned this Warrant in full, in which case, the Holder shall
surrender this Warrant to the Company within three (3) Trading Days of the date on which the Holder delivers an assignment form to the
Company assigning this Warrant in full. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for
the purchase of Warrant Shares without having a new Warrant issued.
10
(b) New Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office
of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by
the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved in such
division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be
divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the Initial Exercise
Date and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto, and if applicable,
shall reflect any adjustment to the Exercise Price prior to the date of such transfer or exchange.
(c) Warrant Register. The Company shall register this
Warrant, upon records to be maintained by the Company for that purpose (the “Warrant Register”), in the name
of the record Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner
hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the
contrary.
(d) Transfer Restrictions. This Warrant and the Warrant Shares may only be transferred in compliance with U.S. state and federal
securities laws. In connection with any transfer of this Warrant or the Warrant Shares other than pursuant to an effective registration
statement, the Company may require the transferor to provide to the Company an opinion of counsel selected by the transferor and reasonably
acceptable to the Company, 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 this Warrant or the Warrant Shares under the Securities Act.
(e) Representation by the Holder. The Holder, by the acceptance hereof, represents and warrants that it is acquiring this Warrant
and, upon any exercise hereof, will acquire the Warrant Shares issuable upon such exercise, for its own account and not with a view to
or for distributing or reselling such Warrant Shares or any part thereof in violation of the Securities Act or any applicable state securities
law, except pursuant to sales registered or exempted under the Securities Act.
11
Section 5. Miscellaneous.
(a) No Rights as a Holder of Warrant Shares Until Exercise. This Warrant does not entitle the Holder to any rights as a holder
of shares of Common Stock prior to the exercise hereof as set forth in Section 2(d)(i).
(b) Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any certificate evidencing ownership of Warrant Shares,
and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant,
shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or share certificate, if mutilated, the
Company will make and deliver a new Warrant or share certificate of like tenor and dated as of such cancellation, in lieu of such Warrant
or share certificate.
(c) Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right
required or granted herein shall not be a Business Day, then, such action may be taken or such right may be exercised on the next succeeding
Business Day.
(d) Provision for Issuance of Underlying Shares.
(i) The Company covenants that, during the period the Warrant is outstanding, it will reserve from its authorized but unissued Common
Stock a number of shares of Common Stock equal to the number of shares of Common Stock issuable upon the exercise of any purchase rights
under this Warrant (without regard to any limitation on exercise set forth herein). The Company will take all such reasonable action as
may be necessary to assure that such shares of Common Stock may be issued as provided herein without violation of any applicable law or
regulation, or of any requirements of the Trading Market upon which the Common Stock may be listed. The Company covenants that all Warrant
Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights
represented by this Warrant and payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully paid
and nonassessable and free from all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes
in respect of any transfer occurring contemporaneously with such issue).
(ii) The Company will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as
may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. The Company will use
commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction
thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.
12
(iii) Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable
or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary
from any public regulatory body or bodies having jurisdiction thereof.
(e) Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be
governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles
of conflicts of law thereof. Each party agrees that all legal Proceedings concerning the interpretations, enforcement and defense of the
transactions contemplated by this Warrant (whether brought against a party hereto or its respective Affiliates, directors, officers, shareholders,
partners, members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the Borough of Manhattan
in the City of New York, New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts
sitting in the Borough of Manhattan in the City of New York, New York for the adjudication of any dispute hereunder or in connection herewith
or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of this Warrant), and hereby
irrevocably waives, and agrees not to assert in any Action or Proceeding, any claim that it is not personally subject to the jurisdiction
of any such court, that such 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 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 Warrant 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 any party shall commence
an Action or Proceeding to enforce any provisions of this Warrant, then, the prevailing party in such Action or Proceeding shall be reimbursed
by the non-prevailing party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation
and prosecution of such Action or Proceeding.
(f) Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered,
will have restrictions upon resale imposed by state and federal securities laws.
(g) Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder
shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies. Without limiting any other
provision of this Warrant, if the Company willfully and knowingly fails to comply with any provision of this Warrant, which results in
any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to cover any costs and expenses
including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred by the Holder in collecting
any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.
13
(h) 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 time of transmission, if such notice or communication is
delivered via email at the e-mail address as set forth on the signature pages attached hereto, or to such other address as the Company
or the Holder may indicate by a notice delivered to the other from time to time, at or prior to 5:30 p.m. (New York City time) on a Trading
Day, (b) the next Trading Day after the time of transmission, if such notice or communication is delivered via email attachment at the
e-mail address as set forth on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York
City time) on any Trading Day, (c) the second (2nd) Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight
courier service or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and
communications shall be as set forth on the signature pages attached hereto, or to such other address as the Company or the Holder may
indicate by a notice delivered to the other from time to time.
(i) Limitation of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant
to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the
Holder for the purchase price of any shares of Common Stock or as a shareholder of the Company, whether such liability is asserted by
the Company or by creditors of the Company.
(j) Remedies. The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will
be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation
for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert the defense
in any action for specific performance that a remedy at law would be adequate.
(k) Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby
shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted
assigns of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and
shall be enforceable by the Holder or holder of Warrant Shares.
14
(l) Amendment. This Warrant may be modified, waived or amended or the provisions hereof waived with the written consent of the
Company and the Holder.
(m) Severability. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and
valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision
shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining
provisions of this Warrant.
(n) Headings. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed
a part of this Warrant.
********************
(Signature Page Follows)
15
IN WITNESS WHEREOF, the parties hereto have caused
this Warrant to Purchase Common Stock to be duly executed by their respective authorized signatories as of the date first indicated above.
[PUBCO]
Address for Notice:
By:
Name:
Title:
Email:
With a copy to (which shall not constitute notice):
IN WITNESS WHEREOF, the undersigned have caused this
Warrant To Purchase Common Stock to be duly executed by their respective authorized signatories as of the date first indicated above.
Name of Purchaser:
Signature of
Authorized Signatory of Purchaser:
Name of Authorized Signatory:
Title of Authorized Signatory:
Email Address of Authorized Signatory:
Address for Notice to Purchaser:
Address for Delivery of Securities to Purchaser
(if not same as address for notice):
Warrant Shares:
EIN Number:
SCHEDULE A
“Action” means any action,
suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the applicable party, threatened against
or affecting the applicable party or any of its properties before or by any court, arbitrator, governmental or administrative agency or
regulatory authority (federal, state, county, local or foreign).
“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.
“Bloomberg” means Bloomberg
L.P.
“Business Day” means any day
other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required by law to remain
closed; provided, however, for clarification, commercial banks shall not be deemed to be authorized or required
by law to remain closed due to “stay at home,” “shelter-in-place,” “non-essential employee” or any
other similar orders or restrictions or the closure of any physical branch locations at the direction of any governmental authority so
long as the electronic funds transfer systems (including for wire transfers) of commercial banks in The City of New York are generally
open for use by customers on such day.
“Closing Date” means the Trading
Day on which the Transaction is consummated.
“Common
Stock Equivalents” means any securities of the Company which would entitle the holder thereof to acquire at any time shares
of Common Stock, including, without limitation, any debt, preference shares, right, option, warrant or other instrument that is
at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, shares of Common
Stock, and any securities of the Company that when paired with one or more other securities of the Company or another entity entitles
the holder thereof to receive, shares of Common Stock.
“Ex Date” means, in relation
to any Distribution, the first Trading Day on which the Common Stock is traded ex-the relevant Distribution.
“Fair Market Value” means,
on any date:
(a)
in the case of a cash Distribution, the amount of such cash Distribution;
(b)
the case of a Distribution of Securities (including shares of Common Stock), Spin-Off Securities, options, warrants or other rights or assets that are publicly traded on a Relevant Stock Exchange, the arithmetic mean of the daily VWAP of such Securities; and
(c)
in the case of Securities, Spin-Off Securities, options, warrants or other rights or assets that are not publicly traded on a Relevant Stock Exchange, an amount equal to the fair market value of such Securities, Spin-Off Securities, options, warrants or other rights or assets as determined in good faith by the Board of Directors of the Company, on the basis of a commonly accepted market valuation method and taking account of such factors as it considers appropriate, including the market price per share of Common Stock, the dividend yield of a share of Common Stock, the volatility of such market price, prevailing interest rates and the terms of such Securities, Spin-Off Securities, options, warrants or other rights or assets, and including as to the expiration date and exercise price or the like (if any) thereof.
Sch. A-1
“Merger Agreement” means the
Agreement and Plan of Merger, dated April 20, 2026 (as may be amended, supplemented or otherwise modified from time to time), by and among
the Company and the other parties thereto.
“Par
Value” means the par value of one share of Common Stock at such time.
“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, whether commenced or threatened.
“Relevant Stock Exchange” means:
(a)
in respect of the Common Stock, the Trading Market or, if at the relevant time the Common Stock is not at that time listed or traded on the Trading Market, the principal stock exchange or securities market on which the Common Stock then listed, quoted, traded or dealt in; and
(b)
In respect of any Securities (other than Common Stock), Spin-Off Securities, options, warrants or other rights or assets, the principal stock exchange or securities market on which such Securities, Spin-Off Securities, options, warrants or other rights or assets are then listed, quoted, traded or dealt in.
“Securities”
means any securities including, but not limited to, shares of Common Stock and other capital stock of the Company, restricted share
units, or options, warrants or other rights to subscribe for or purchase or acquire shares of Common Stock or any other capital stock
of the Company.
“Spin-Off Securities” means
equity share capital of an entity other than the Company or options, warrants or other rights to subscribe for or purchase equity share
capital of an entity other than the Company.
“Subscription Agreement” means
the Amended and Restated Subscription Agreement, dated as of October 13, 2026, between the Company and the initial Holder of this Warrant.
“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 Common Stock is listed or quoted for trading on the date in question: the NYSE American,
the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market or the New York Stock Exchange (or any successors
to any of the foregoing).
“Transaction” means the transactions
contemplated by the Merger Agreement.
Sch. A-2
“Transaction Documents” means
this Warrant, the other warrants to purchase common stock, with an initial exercise price of $10.00 per share, issued on the Initial Exercise
Date, the Subscription Agreement and all exhibits and schedules thereto.
“VWAP” means, for any date,
the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading
Market, the arithmetic mean of the daily volume weighted average prices of the Common Stock for each of the 20 Trading Days preceding
such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg
L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), with each such Trading Day weighted
equally regardless of the aggregate trading volume for such Trading Day, (b) if OTCQB or OTCQX is not a Trading Market, the arithmetic
mean of the daily volume weighted average prices of the Common Stock for each of the 20 Trading Days preceding such date (or the nearest
preceding date) on OTCQB or OTCQX as applicable, calculated in the same manner as clause (a), (c) if the Common Stock is not then listed
or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported in The Pink Open Market (or a similar organization
or agency succeeding to its functions of reporting prices), the average of the highest closing bid price and the lowest closing ask price
of the Common Stock for the 20 Trading Days preceding such date, or (d) in all other cases, the fair market value of a share of Common
Stock as determined by an independent appraiser selected in good faith by the Holders of a majority in interest of the Securities then
outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company. For the avoidance of
doubt, the daily volume weighted average price for each individual Trading Day shall be determined by Bloomberg L.P. in accordance with
its standard methodology, and the VWAP for the applicable period shall be calculated by summing such daily values and dividing by the
number of Trading Days in the measurement period (i.e., 20 Trading Days), such that each Trading Day’s price is given equal weight
irrespective of trading volume.
Sch. A-3
EXHIBIT A
NOTICE OF EXERCISE
TO:
[PUBCO]
Attn:
Email:
(1) The undersigned hereby
elects to purchase _______ Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if exercised in full), and
tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.
(2) Payment shall take
the form of (check applicable box):
¨
in lawful money of the United States; or
¨
if permitted the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 2(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the exercise on a net-issuance basis procedure set forth in subsection 2(c).
(3) Please issue said Warrant
Shares in the name of, and deliver any cash payable for any fractional Warrant Shares to, the undersigned or in and to such other name
as is specified below:
The Warrant Shares shall be delivered to the following
DWAC Account Number:
(4) In connection with
the exercise of this Warrant, or the portion hereof above designated, the undersigned acknowledges, represents to and agrees with the
Company that the undersigned is not an “affiliate” (as defined in Rule 144 under the Securities Act) of the Company and
has not been an “affiliate” (as defined in Rule 144 under the Securities Act) during the three months immediately preceding
the date hereof.
A-1
(5) The undersigned further
acknowledges (and if the undersigned is acting for the account of another person, that person has confirmed that it acknowledges) that
the Warrant Shares received upon exercise of this Warrant (or securities represented thereby) have not been registered under the Securities
Act and are “restricted securities”.
(6) The undersigned further
certifies that either:
(a) The undersigned is, and at the
time Warrant Shares are delivered upon exercise of this Warrant will be, the holder of the Warrant Shares, and the undersigned is not
a U.S. person (as defined in Regulation S under the Securities Act) and is located outside the United States (within the meaning of Regulation
S) and acquired, or have agreed to acquire and will have acquired, the Warrants being exercised and the Warrant Shares and being delivered
upon exercise outside the United States.
OR
(b) The undersigned is a qualified
institutional buyer (as defined in Rule 144A under the Securities Act) acting for its own account or for the account of one or more
qualified institutional buyers and the undersigned is (or such account or accounts are) the sole beneficial owner(s) of the Warrant
Shares to be received upon exercise of this Warrant.
The undersigned hereby instructs the Company register
the Warrant Shares in the name of:
1.
Name of Beneficial Owner to receive Warrant Shares:
2.
Address of Beneficial Owner to receive Warrant Shares:
3.
Number of Warrant Shares to be issued:
4.
Beneficial Owner’s Tax ID Number:
5.
Contact Name and Tel No/email address:
For any settlement inquiries, please contact
[_]:
[_]
[SIGNATURE OF HOLDER]
Name of Investing Entity:
Signature of Authorized Signatory of Investing Entity:
Name of Authorized Signatory:
Title of Authorized Signatory:
Date:
Signature Guarantee
Signature(s) must be guaranteed by an eligible Guarantor Institution (banks, stock brokers, savings and loan associations and credit unions) with membership in an approved signature guarantee medallion program pursuant to Securities and Exchange Commission Rule 17Ad-15 if Warrant Shares are to be issued other than to and in the name of the registered holder.
A-2
EXHIBIT B
ASSIGNMENT FORM
(To assign the foregoing Warrant, execute this
form and supply required information. Do not use this form to purchase shares.)
FOR VALUE RECEIVED, the foregoing Warrant and
all rights evidenced thereby are hereby assigned to
Name:
(Please Print)
Address:
(Please Print)
Phone Number:
Email Address:
Dated:
_____________ ______, _______
Holder’s Signature:
Holder’s Address:
B-1
EX-10.1 — EXHIBIT 10.1
EX-10.1
Filename: tm2627487d1_ex10-1.htm · Sequence: 4
Exhibit 10.1
Execution Version
AMENDED AND RESTATED SUBSCRIPTION AGREEMENT
This Amended and Restated
Subscription Agreement (this “Subscription Agreement”) is being entered into as of the date set forth on the signature
page to this Subscription Agreement, by and among ATII Holdings Inc., a Delaware corporation (the “Issuer”),
Forge Nano, Inc., Delaware corporation (“Forge Nano”), Archimedes Tech SPAC Partners II Co., a Cayman Islands
exempted company limited by shares (the “SPAC”) (solely with respect to Sections 12 and 14 hereof),
and the undersigned (the “Investor”). This Subscription Agreement amends and restates the original subscription agreement,
dated as of April 20, 2026, by and among the Issuer, Forge Nano, the SPAC (solely with respect to Sections 12 and 14
thereto), and the Investor, and is entered into in connection with the Agreement and Plan of Merger, dated April 20, 2026 (as may
be amended, supplemented or otherwise modified from time to time, the “Merger Agreement”), by and among the Issuer,
the SPAC, Forge Nano and the other parties thereto. The transactions contemplated by the Merger Agreement are referred to in this Subscription
Agreement as the “Transaction” and the purchase and sale of the Securities (as defined below) pursuant to this Subscription
Agreement are referred to in this Subscription Agreement as the “Subscription Transaction.” The Issuer may enter into
one or more subscription agreements (the “Other Subscription Agreements” and together with this Subscription Agreement,
the “Subscription Agreements”) with certain other investors (the “Other Investors,” and together
with the Investor, the “Investors”).
As set forth on the signature
page to this Subscription Agreement, the aggregate purchase price to be paid by the Investor for the subscribed shares of Common
Stock (which means Pubco Common Stock, as defined in the Merger Agreement), Pre-Funded Warrants (as defined below) and Warrants (as defined
below) is referred to in this Subscription Agreement as the “Subscription Amount.”
In consideration of the foregoing
and the mutual representations, warranties and covenants, and subject to the conditions, set forth in this Subscription Agreement, and
intending to be legally bound under this Subscription Agreement, each of the Investor, the Issuer and Forge Nano acknowledges and agrees
as follows:
1. Subscription.
(a) Subject
to Section 13, the Investor irrevocably subscribes for and agrees to purchase from the Issuer the number of shares of Common
Stock, Pre-Funded Warrants and Warrants set forth on the signature page to this Subscription Agreement, and the Issuer irrevocably
agrees to issue and sell to the Investor such shares of Common Stock, such Pre-Funded Warrants and such Warrants, in each case, on the
terms and subject to the conditions provided for in this Subscription Agreement.
1
(b) If
on the 24th month anniversary of the Closing Date (as defined below) the Investor certifies in writing to the Issuer that
it beneficially owns at least an aggregate of 5,000,000 shares of Common Stock (which amount shall include any Pre-Funded Warrants that
have not yet been exercised) and provides any information reasonably requested by the Issuer with respect to such beneficial ownership,
the Issuer shall issue to the Investor additional warrants (the “Additional Warrants”) entitling the Investor to receive
from the Issuer additional 5,000,000 shares of Common Stock (giving effect to any reclassification, recapitalization, share division
or consolidation, exchange or readjustment of the Common Stock that may have occurred during the period from the Closing to and prior
to the issuance of the Additional Warrants), such Additional Warrants to have the same termination date as the Termination Date of, and
to contain substantially the same terms and conditions as, the Warrants as set forth in the Warrant Certificate, provided that if the
Exercise Price of the Warrants has been adjusted in accordance with Section 3(c) of the Warrant Certificate, the initial exercise
price of the Additional Warrants shall be the same as the Exercise Price after giving effect to such adjustment.
(c) [Reserved].
(d) In
the event that on the 21st Trading Day following the six-month anniversary of the Closing (the “Reset Termination
Date”), the VWAP of the Common Stock is less than the Exercise Price then in effect, the Investor shall receive, a number of
additional warrants equal to (i) the product of (x) 10,000,000 times (y) the Exercise Price then in effect divided
by the Reset Price minus (ii) 10,000,000 (such warrants, the “Reset Warrants”). The Reset Warrants shall
have the same termination date as the Termination Date of, and contain substantially the same terms and conditions as, the Warrants as
set forth in the Warrant Certificate, provided that the Reset Warrants shall be issued with an initial exercise price equal to the Reset
Price, where “Reset Price” means the greater of (x) the VWAP of the Common Stock on the 21st Trading
Day following the six-month anniversary of the Closing or (y) the Reset Floor, and where “Reset Floor” means
(A) if, as of the Closing, the Issuer or any of its subsidiaries, including Forge Nano or any of its subsidiaries, is party to a
binding agreement with a financing source reasonably acceptable to the Investor pursuant to which such financing source has committed
to provide debt financing in amount at least equal to $200,000,000, subject only to customary funding conditions (as determined in good
faith by the Issuer), and such debt financing has been publicly disclosed prior to or in connection with the Closing, $7.28 or (B) otherwise,
$5.00.
2. Closing.
(a) The
closing of the Subscription Transaction (the “Closing”) is contingent upon the substantially concurrent consummation
of the Transaction. The Closing shall occur on the date of, and substantially concurrently with and conditioned upon the effectiveness
of, the Transaction upon (a) satisfaction or waiver of the conditions set forth in this Section 2 and in Section 3
below and (b) delivery of written notice from (or on behalf of) the Issuer to the Investor (the “Closing Notice”)
that the Issuer reasonably expects all conditions to the closing of the Transaction to be satisfied or waived on a date that is not less
than five Business Days from the date on which the Closing Notice is delivered to the Investor.
(b) At
least three Business Days prior to the closing date specified in the Closing Notice (the “Closing Date”), the Investor
shall deliver to the Issuer: (i) the Subscription Amount by wire transfer of United States dollars in immediately available funds
to the account(s) specified by the Issuer in the Closing Notice, thereby subscribing for the shares of Common Stock, Pre-Funded
Warrants and Warrants, to be held in escrow until the Closing; and (ii) any other information that is reasonably requested in the
Closing Notice in order for the Issuer to issue to the Investor the shares of Common Stock, Pre-Funded Warrants and Warrants. Without
limiting the generality of the foregoing, such information shall include the legal name of the person in whose name such shares of Common
Stock, Pre-Funded Warrants and Warrants are to be issued and a duly executed Internal Revenue Service Form W-9 or W-8, as applicable.
2
(c) On
the Closing Date:
(i) the
Issuer shall cause its transfer agent to register the shares of Common Stock set forth on the signature page to this Subscription
Agreement in book-entry form, free and clear of any liens, encumbrances or other restrictions (other than those arising under this Subscription
Agreement or applicable securities laws) in the name of the Investor;
(ii) the
Issuer shall issue to the Investor Pre-Funded Warrants set forth on the signature page to this Subscription Agreement registered
in the name of the Investor, with an exercise price equal to $0.0001 per share, subject to adjustment as described in the Pre-Funded
Warrant; and
(iii) the
Issuer shall issue to the Investor Warrants registered in the name of the Investor to purchase up to 15,000,000 shares of Common Stock
with an exercise price equal to $10.00 per share, subject to adjustment as set forth therein.
The Issuer shall use commercially reasonable
efforts to provide a copy of its transfer agent’s records showing the Investor as the owner of such shares of Common Stock as soon
as practically possible following the Closing Date.
(d) Notwithstanding
the foregoing, the Issuer’s obligation to issue the shares of Common Stock, Pre-Funded Warrants and Warrants to the Investor is
contingent upon the Issuer having received the Subscription Amount in full in accordance with this Section 2. If the Closing
does not occur within three (3) Business Days following the Closing Date specified in the Closing Notice, the Issuer shall promptly
(but not later than one (1) Business Day thereafter) return the Subscription Amount in full to the Investor by wire transfer of
U.S. dollars in immediately available funds to the account specified by the Investor.
3. Closing
Conditions.
(a) The
parties’ obligation to consummate the Subscription Transaction pursuant to this Subscription Agreement is subject to the following
conditions:
(i) no
suspension of the offering or sale of the Common Stock, Pre-Funded Warrants or Warrants shall have been initiated or, to the Issuer’s
knowledge, threatened by the U.S. Securities and Exchange Commission (the “SEC”);
(ii) no
applicable governmental authority shall have enacted, issued, promulgated, enforced or entered any judgment, order, law, rule or
regulation (whether temporary, preliminary or permanent) which is then in effect making the consummation of the transactions contemplated
under this Subscription Agreement illegal or otherwise restraining or prohibiting consummation of the transactions contemplated under
this Subscription Agreement and no governmental authority shall have instituted or threatened in writing a proceeding seeking to impose
any such restraint or prohibition; and
3
(iii) as
determined by the parties to the Merger Agreement and other than those conditions under the Merger Agreement which, by their nature,
are to be fulfilled at the closing of the Transaction, including to the extent that any such condition is dependent upon the consummation
of the Subscription Transaction pursuant to this Subscription Agreement, all conditions precedent to the closing of the Transaction contained
in the Merger Agreement shall have been satisfied or waived and the closing of the Transaction shall be scheduled to occur concurrently
with or on the same date as the Closing Date.
(b) The
Issuer’s obligation to consummate the Subscription Transaction pursuant to this Subscription Agreement shall be subject to the
conditions that:
(i) all
representations and warranties of the Investor contained in this Subscription Agreement are true and correct in all material respects
at and as of the Closing Date;
(ii) consummation
of the Closing shall constitute a reaffirmation by the Investor of each of the representations and warranties of the Investor contained
in this Subscription Agreement as of the Closing Date or such earlier date, as applicable; and
(iii) all
obligations, covenants and agreements of the Investor required to be performed by it at or prior to the Closing Date shall have been
performed in all material respects.
(c) The
Investor’s obligation to consummate the Subscription Transaction pursuant to this Subscription Agreement shall be subject to the
conditions that:
(i) all
representations and warranties made by the Issuer and Forge Nano in Section 5 hereof shall be true and correct in all material
respects (other than representations and warranties that are qualified as to materiality or Issuer Material Adverse Effect (as defined
below), which representations and warranties shall be true in all respects) at and as of the Closing Date;
(ii) consummation
of the Closing shall constitute a reaffirmation by the Issuer and Forge Nano of each of the representations and warranties of the Issuer
and Forge Nano contained in this Subscription Agreement as of the Closing Date;
(iii) all
obligations, conditions, covenants and agreements required by this Subscription Agreement to be performed by the Issuer and Forge Nano
at or prior to the Closing Date shall have been performed, satisfied or complied with in all material respects;
(iv) no
suspension of the qualification of the Common Stock for offering or trading in any jurisdiction, or initiation or written threats of
any proceedings for any of such purposes, shall have occurred and be continuing;
4
(v) no
amendment, modification or waiver of the Merger Agreement from and after the date of this Subscription Agreement shall have occurred
that reasonably would be expected to materially and adversely affect the economic benefits that the Investor reasonably would expect
to receive under this Subscription Agreement without having received the Investor’s prior written consent;
(vi) the
Issuer shall have filed with the applicable national stock exchange (as defined in Section 6 of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”)) (the “Stock Exchange”) an application or supplemental listing
application for the listing of the Warrant-Related Shares (as defined below) and Common Stock and such Warrant-Related Shares and Common
Stock shall have been approved for listing, subject to official notice of issuance; and
(vii) there
shall have been no amendment, waiver or modification to the Other Subscription Agreements that gives rise to benefits to the Other Investors
unless the Investor has been offered the same benefits.
4. Further
Assurances. At or prior to the Closing Date, the parties shall execute and deliver, or cause to be executed and delivered, such additional
documents and take such additional actions as the parties reasonably may deem to be practical and necessary in order to consummate the
subscription as contemplated by this Subscription Agreement.
5. The
Issuer’s and Forge Nano’s Representations and Warranties.
5.1 The
Issuer represents and warrants to the Investor that as of the date of this Subscription Agreement and as of the Closing Date:
(a) The
Issuer is a Delaware corporation, duly formed, validly existing and in good standing under the Laws of the State of Delaware, with the
requisite corporate power and authority to own, lease and operate its properties and conduct its business as presently conducted and
to enter into, deliver and perform its obligations under this Subscription Agreement.
(b) As
of the Closing Date, the Securities have been duly authorized and the shares of Common Stock, when issued and delivered to the Investor
against full payment for the shares of Common Stock in accordance with the terms of this Subscription Agreement, and registered with
the Issuer’s transfer agent, will be validly issued, fully paid, non-assessable and free and clear of any liens or other restrictions
whatsoever (other than those arising under state or federal securities laws or as set forth herein), and will not be issued in violation
of or subject to any preemptive or similar rights created under the Issuer’s organizational documents or any agreement or other
instrument to which the Issuer is a party or by which it is otherwise bound.
(c) As
of the Closing Date, the Warrant-Related Shares issuable upon exercise of the Pre-Funded Warrants, the Warrants, the Additional Warrants
and the Reset Warrants, as applicable, have been duly authorized and provision has been made for the issuance of the Warrant-Related
Shares upon exercise of the Pre-Funded Warrants, the Warrants, the Additional Warrants and the Reset Warrants, as applicable. When issued
and delivered against payment of the exercise price pursuant to the terms of Pre-Funded Warrant, and the Pre-Funded Warrant Certificate,
the Warrants and the Warrant Certificate, the Additional Warrants and the applicable warrant certificate, and the Reset Warrants and
the applicable warrant certificate, as applicable, the Warrant-Related Shares will be validly issued, fully paid and non-assessable,
and will not have been issued in violation of or subject to any preemptive or similar rights created under the Issuer’s organizational
documents (as adopted on the Closing Date) or any agreement or other instrument to which the Issuer is a party or by which it is otherwise
bound.
5
(d) This
Subscription Agreement has been duly authorized, executed and delivered by the Issuer and is a valid and binding obligation of the Issuer,
enforceable against it in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, and (ii) principles
of equity, whether considered at law or equity.
(e) The
execution, delivery and performance of this Subscription Agreement (including compliance by the Issuer with all of the provisions hereof),
the issuance and sale of the Securities and the consummation of the other transactions contemplated herein will not (i) conflict
with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation
or imposition of any lien, charge or encumbrance upon any of the property or assets of the Issuer pursuant to the terms of any indenture,
mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Issuer is a party or by which the
Issuer is bound or to which any of the property or assets of the Issuer is subject, which would, individually or in the aggregate, reasonably
be expected to have a material adverse effect on the business, properties, assets, liabilities, operations, financial condition, prospects,
stockholders’ equity or results of operations of the Issuer or materially and adversely affect the validity of the Securities or
the legal authority or ability of the Issuer to comply in all material respects with the terms of this Subscription Agreement (an “Issuer
Material Adverse Effect”); (ii) result in any violation of the provisions of the organizational documents of the Issuer
in any material respect; or (iii) result in any violation of any statute or any judgment, order, rule or regulation of any
Authority having jurisdiction over the Issuer or any of its properties that would reasonably be expected to have an Issuer Material Adverse
Effect.
(f) Neither
the Issuer, nor any person acting on its behalf has, directly or indirectly, made any offers or sales of any Issuer security or solicited
any offers to buy any security, under circumstances that would adversely affect reliance by the Issuer on Section 4(a)(2) of
the Securities Act for the exemption from registration for the transactions contemplated hereby or would require registration of the
issuance or sale of the Securities under the Securities Act.
(g) Neither
the Issuer nor any person acting on its behalf has conducted any general solicitation or general advertising (as those terms are used
in Regulation D under the Securities Act) in connection with the offer or sale of any of the Securities and neither the Issuer, nor any
person acting on its behalf has offered any of the Securities in a manner involving any public offering under, or in a distribution in
violation of, the Securities Act or any state securities laws.
(h) The
Issuer has not taken any steps to seek protection pursuant to any law or statute relating to bankruptcy, insolvency, reorganization,
receivership, liquidation, administration or winding up or failed to pay its debts when due, nor does the Issuer have any knowledge or
reason to believe that any of their respective creditors intend to initiate involuntary bankruptcy proceedings or seek to commence an
administration.
6
(i) As
of the date hereof, except as set forth in the SEC Documents (as defined below), the Other Subscription Agreements, the Merger Agreement
and any promissory notes issued by the SPAC’s sponsor or its affiliate to the SPAC for working capital purposes as described in
the SEC Documents (“Sponsor Loans”), there are no outstanding options, warrants or other rights to subscribe for,
purchase or acquire from the Issuer any Common Stock or other equity interests in the Issuer, or securities convertible into or exchangeable
or exercisable for such equity interests. As of the date hereof, other than any subsidiary created for purposes of the Transaction, the
Issuer has no subsidiaries and does not own, directly or indirectly, interests or investments (whether equity or debt) in any person,
whether incorporated or unincorporated. There are no stockholder agreements, voting trusts or other agreements or understandings to which
the Issuer is a party or by which it is bound relating to the voting of any securities of the Issuer, other than (A) as set forth
in the SPAC’s filings with the SEC, together with any amendments, restatements or supplements thereto (the “SEC Documents”)
and (B) as contemplated by the Merger Agreement. Except as disclosed in the SEC Documents, the Issuer has no outstanding indebtedness
and will not have any outstanding long-term indebtedness as of immediately prior to the Closing (excluding any Sponsor Loans).
(j) Assuming
the accuracy of Investor’s representations and warranties set forth in this Subscription Agreement, no registration under the Securities
Act is required for the offer and sale of the Securities by the Issuer to the Investor and the Securities are not being offered in a
manner involving a public offering under, or in a distribution in violation of, the Securities Act or any state securities laws.
(k) Except
as disclosed in the SEC Documents, the SPAC has made all filings required to be filed by it with the SEC and, as of their respective
dates, each of the SEC Documents complied in all material respects with the requirements of the Securities Act and the Exchange Act,
and the rules and regulations of the SEC promulgated thereunder, and none of the SEC Documents, 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; provided, that the Issuer makes no such representation
or warranty with respect to any information relating to Forge Nano or any of its affiliates included in any SEC Document or filed as
an exhibit thereto. Each of the financial statements of the SPAC included in the SEC Documents comply in all material respects with applicable
accounting requirements and the rules and regulations of the SEC with respect thereto as in effect at the time of filing and fairly
present in all material respects the financial position of the SPAC 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, year-end audit adjustments. As of the
date hereof, there are no outstanding or unresolved comments in comment letters from the SEC Staff with respect to any of the SEC Documents.
(l) Other
than the Other Subscription Agreements, the Merger Agreement and any other agreement expressly contemplated by the Merger Agreement,
neither the Issuer nor the SPAC has entered into any side letter or similar agreement with any Other Investor or any other investor in
connection with such Other Investor’s or investor’s investment in the Issuer. No Other Subscription Agreement includes a
price per Security different from this Subscription Agreement or other terms, rights or conditions that are more advantageous (economically
or otherwise) in any material respect to any such Other Investor than Investor hereunder, and such Other Subscription Agreements have
not been amended or modified in any material respect following the date of this Subscription Agreement in any manner that materially
benefits the Other Investor thereunder unless Investor has been granted the same benefits.
7
(m) The
Issuer is not, and immediately after receipt of payment for the Securities will not be, an “investment company” within the
meaning of the Investment Company Act of 1940, as amended.
(n) As
of the date of this Subscription Agreement, the Issuer has not received any written communication from a governmental entity that alleges
that the Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default
or violation would not, individually or in the aggregate, be reasonably expected to have an Issuer Material Adverse Effect.
(o) Except
for such matters as have not had and would not be reasonably expected to have, individually or in the aggregate, an Issuer Material Adverse
Effect, as of the date of this Subscription Agreement, there is no (i) action, claim, inquiry, arbitration, investigation, litigation
or other proceeding pending, or, to the knowledge of the Issuer, threatened against the Issuer or (ii) judgment, decree, injunction,
ruling or order of any governmental entity or arbitrator outstanding against the Issuer.
(p) Except
for discussions specifically regarding the offer and sale of the Securities and the investor presentation, the Issuer confirms that neither
it nor any other person acting on its behalf has provided the Investor or its agents or counsel with any information that constitutes
or could reasonably be expected to constitute material, nonpublic information concerning the Issuer, the SPAC or any of their subsidiaries,
other than with respect to the Transaction and the transactions contemplated by this Subscription Agreement, the Other Subscription Agreements
or the Merger Agreement. Except with respect to the transactions contemplated by this Subscription Agreement, no event or circumstance
has occurred which, under applicable law, rule or regulation, requires public disclosure at or before the date hereof or announcement
by the Issuer but which has not been so publicly disclosed.
(q) With
respect to the distribution of information to the Investor (if a Foreign Purchaser (as defined below)) or any Other Investor that are
Foreign Purchasers, the Issuer has and will comply with the regulations associated with the CFIUS. Without limiting the foregoing, the
Issuer represents, warrants and agrees that it has not provided and does not intend to provide and will take measure to prevent the provision
to any Foreign Purchasers any (i) access to any material non-public technical information (as defined in 31 C.F.R. §801.208)
in the possession of the Issuer, or (ii) involvement, other than through the voting of shares, in substantive decision-making of
the Issuer regarding the use, development, acquisition or release of critical technology (as defined in 31 C.F.R §801.204).
8
5.2 Forge
Nano represents and warrants to the Investor that as of the date of this Subscription Agreement and as of the Closing Date:
(a) Forge
Nano is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware, with the requisite
corporate power and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into,
deliver and perform its obligations under this Subscription Agreement, except where the failure to have such power or authority would
not, individually or in the aggregate, reasonably be expected to have a Forge Nano Material Adverse Effect (as defined below).
(b) This
Subscription Agreement has been duly authorized, executed and delivered by Forge Nano and is a valid and binding obligation of Forge
Nano, enforceable against it in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, and (ii) principles
of equity, whether considered at law or equity.
(c) The
execution, delivery and performance of this Subscription Agreement (including compliance by Forge Nano with all of the provisions hereof),
the issuance and sale of the Securities and the consummation of certain other transactions contemplated herein will not (i) conflict
with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation
or imposition of any lien, charge or encumbrance upon any of the property or assets of Forge Nano pursuant to the terms of any indenture,
mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which Forge Nano is a party or by which Forge
Nano is bound or to which any of the property or assets of Forge Nano is subject, which would, individually or in the aggregate, reasonably
be expected to have a material adverse effect on the business, properties, assets, liabilities, operations, financial condition, prospects,
stockholders’ equity or results of operations of Forge Nano or materially and adversely affect the validity of the Securities or
the legal authority or ability of Forge Nano to comply in all material respects with the terms of this Subscription Agreement (a “Forge
Nano Material Adverse Effect”); (ii) result in any violation of the provisions of the organizational documents of Forge
Nano which would, individually or in the aggregate, reasonably be expected to have a Forge Nano Material Adverse Effect; or (iii) result
in any violation of any statute or any judgment, order, rule or regulation of any governmental agency or body having jurisdiction
over Forge Nano or any of its properties that would reasonably be expected to have, individually or in the aggregate, a Forge Nano Material
Adverse Effect.
(d) Neither
Forge Nano, nor any person acting on its behalf has, directly or indirectly, made any offers or sales of any Issuer security or solicited
any offers to buy any security, under circumstances that would adversely affect reliance by Forge Nano on Section 4(a)(2) of
the Securities Act for the exemption from registration for the transactions contemplated hereby or would require registration of the
issuance or sale of the Securities under the Securities Act.
(e) Neither
Forge Nano nor any person acting on its behalf has conducted any general solicitation or general advertising (as those terms are used
in Regulation D under the Securities Act) in connection with the offer or sale of any of the Securities and neither Forge Nano, nor any
person acting on its behalf has offered any of the Securities in a manner involving any public offering under, or in a distribution in
violation of, the Securities Act or any state securities laws.
9
(f) Forge
Nano has not taken any steps to seek protection pursuant to any law or statute relating to bankruptcy, insolvency, reorganization, receivership,
liquidation, administration or winding up or failed to pay its debts when due, nor does Forge Nano have any knowledge or reason to believe
that any of its respective creditors intend to initiate involuntary bankruptcy proceedings or seek to commence an administration.
(g) Assuming
the accuracy of Investor’s representations and warranties set forth in this Subscription Agreement, no registration under the Securities
Act is required for the offer and sale of the Securities and the Securities are not being offered in a manner involving a public offering
under, or in a distribution in violation of, the Securities Act or any state securities laws.
(h) Other
than the Other Subscription Agreements, the Merger Agreement and any other agreement expressly contemplated by the Merger Agreement,
Forge Nano has not entered into any side letter or similar agreement with any Other Investor or any other investor in connection with
such Other Investor’s or investor’s investment in Forge Nano (in each case for investments that will occur on or about the
time of the Investor’s investment). No Other Subscription Agreement includes a price per Security different from this Subscription
Agreement or other terms, rights or conditions that are more advantageous (economically or otherwise) in any material respect to any
such Other Investor than Investor hereunder, and such Other Subscription Agreements have not been amended or modified in any material
respect following the date of this Subscription Agreement in any manner that materially benefits the Other Investor thereunder unless
Investor has been granted the same benefits.
(i) Forge
Nano is not, and immediately after receipt of payment for the Securities will not be, an “investment company” within the
meaning of the Investment Company Act of 1940, as amended.
(j) As
of the date of this Subscription Agreement, Forge Nano has not received any written communication from a governmental entity that alleges
that Forge Nano is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default
or violation would not, individually or in the aggregate, be reasonably expected to have a Forge Nano Material Adverse Effect.
(k) Except
for such matters as have not had and would not be reasonably expected to have, individually or in the aggregate, a Forge Nano Material
Adverse Effect, as of the date of this Subscription Agreement, there is no (i) action, claim, inquiry, arbitration, investigation,
litigation or other proceeding pending, or, to the knowledge of Forge Nano, threatened against Forge Nano or (ii) judgment, decree,
injunction, ruling or order of any governmental entity or arbitrator outstanding against Forge Nano.
(l) Except
for discussions specifically regarding the offer and sale of the Securities and the investor presentation by the Issuer and Forge Nano,
Forge Nano confirms that neither it nor any other person acting on its behalf has provided Investor or its agents or counsel with any
information that constitutes or could reasonably be expected to constitute material, nonpublic information concerning Forge Nano or any
of its subsidiaries, other than with respect to the Transaction and the transactions contemplated by this Subscription Agreement or the
Other Subscription Agreements. Except with respect to the transactions contemplated by this Subscription Agreement, no event or circumstance
has occurred which, under applicable law, rule or regulation, requires public disclosure at or before the date hereof or announcement
by Forge Nano but which has not been so publicly disclosed.
10
(m) With
respect to the distribution of information to Investor, if Investor is not a United States person as defined by Section 7701(a)(30))
of the Internal Revenue Code of 1986, as amended (any such Investor, a “Foreign Purchaser”) or any Other Investor
that are Foreign Purchasers, Forge Nano has and will comply with the regulations associated with the U.S. Committee on Foreign Investment
in the United States. Without limiting the foregoing, Forge Nano represents, warrants and agrees that it has not provided and does not
intend to provide and will take measures to prevent the provision to any Foreign Purchasers any (i) access to any material non-public
technical information (as defined in 31 C.F.R. §801.208) in the possession of Forge Nano, or (ii) involvement, other than through
the voting of shares, in substantive decision-making of Forge Nano regarding the use, development, acquisition or release of critical
technology (as defined in 31 C.F.R §801.204).
6. Investor
Representations and Warranties. The Investor represents and warrants to the Issuer, Forge Nano, the SPAC and the Placement Agents
that as of the date of this Subscription Agreement and as of the Closing Date:
(a) The
Investor: (i) has been duly formed or incorporated and is validly existing and in good standing under the laws of its jurisdiction
of formation or incorporation; and (ii) has the requisite power and authority to enter into and perform its obligations under this
Subscription Agreement.
(b) This
Subscription Agreement has been duly authorized, executed and delivered by the Investor. Assuming the due authorization, execution and
delivery of the same by the Issuer, this Subscription Agreement shall constitute the valid and legally binding obligation of the Investor,
enforceable against the Investor in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium and similar laws affecting creditors generally and by the availability of equitable remedies.
(c) The
execution, delivery and performance of this Subscription Agreement, the purchase of the Securities, the compliance by the Investor with
all of the provisions of this Subscription Agreement and the consummation of the transactions contemplated in this Subscription Agreement
will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result
in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Investor pursuant to the terms
of: (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the Investor
is a party or by which the Investor is bound or to which any of the property or assets of the Investor is subject; (ii) the organizational
documents of the Investor; or (iii) any statute or any judgment, order, rule or regulation of any court or governmental agency
or body, domestic or foreign, having jurisdiction over the Investor or any of its properties that in the case of clauses (i) and
(iii), would reasonably be expected to have a material adverse effect on the Investor’s ability to consummate the transactions
contemplated in this Subscription Agreement, including the purchase of the Securities.
11
(d) The
Investor, or each of the funds managed by or affiliated with the Investor for which the Investor is acting as nominee is, and on each
date on which it exercises any Pre-Funded Warrants or Warrants will be: (i) a “qualified institutional buyer” (as defined
in Rule 144A under the Securities Act), or an institutional “accredited investor” (within the meaning of Rule 501(a) (1),
(2), (3) or (7) under the Securities Act), in each case, satisfying the applicable requirements set forth on Schedule A;
(ii) acquiring the Securities only for his, her or its own account and not for the account of others, or if the Investor is subscribing
for the Securities as a fiduciary or agent for one or more investor accounts, the Investor has full investment discretion with respect
to each such account, and the full power and authority to make the acknowledgements, representations, warranties and agreements in this
Subscription Agreement on behalf of each owner of each such account; and (iii) not acquiring the Securities with a view to, or for
offer or sale in connection with, any distribution thereof in violation of the Securities Act (and shall provide the requested information
set forth on Schedule A). The Investor is not an entity formed for the specific purpose of acquiring the Securities. The Investor
understands that the offering meets the exemptions from filing under FINRA Rule 5123(b)(1)(C) or (J). The Investor has completed
Schedule A following the signature page to this Subscription Agreement and the information contained on Schedule A
is, and on each date on which the Investor exercises any Pre-Funded Warrants or Warrants will be, accurate and complete.
(e) The
Investor, or each of the funds managed by or affiliated with the Investor for which the Investor is acting as nominee on the date hereof
and on each date on which it exercises any Pre-Funded Warrants or Warrants: (i) is and will be an institutional account as defined
in FINRA Rule 4512(c); (ii) is a sophisticated investor, experienced in investing in private equity transactions and capable
of evaluating investment risks independently, both in general and with regard to all transactions and investment strategies involving
a security or securities; and (iii) has and will have exercised independent judgment in evaluating our participation in the purchase
of the Securities. Accordingly, it is understood that the offering meets (i) the exemptions from filing under FINRA Rule 5123(b)(1)(A) and
(ii) the institutional customer exemption under FINRA Rule 2111(b).
(f) The
Investor acknowledges and agrees: (i) that the Securities are being offered in a transaction not involving any public offering within
the meaning of the Securities Act; (ii) the Securities have not been registered under the Securities Act; and (iii) that the
Issuer is not required to register the Securities except as set forth in Section 7 of this Subscription Agreement or as set
forth in the Pre-Funded Warrants or the Warrants. The Investor acknowledges and agrees that the Securities may not be offered, resold,
transferred, pledged or otherwise disposed of by the Investor absent an effective registration statement under the Securities Act except:
(i) to the Issuer or one of its subsidiaries; (ii) to non-U.S. persons pursuant to offers and sales that occur outside the
United States within the meaning of Regulation S; or (iii) pursuant to another applicable exemption from the registration requirements
of the Securities Act. With respect to any transactions falling within clauses (i) and (iii) of the preceding sentence, any
such transaction must also be in accordance with any applicable securities laws of the states and other jurisdictions of the United States,
and any book entry records or certificates representing the Securities shall contain a restrictive legend to such effect. The Investor
acknowledges and agrees that: (i) the Securities will be subject to transfer restrictions; (ii) as a result of these transfer
restrictions, the Investor may not be able to readily offer, resell, transfer, pledge or otherwise dispose of the Securities; and (iii) as
a consequence, Investor may be required to bear the financial risk of an investment in the Securities for an indefinite period of
time. The Investor acknowledges and agrees that the Securities will not be eligible for offer, resale, transfer, pledge or disposition
pursuant to Rule 144 promulgated under the Securities Act until at least one year from the date that the Issuer furnishes a Current
Report on Form 8-K following the Closing Date that includes the “Form 10” information required under applicable
SEC rules and regulations. The Investor acknowledges and agrees that it has been advised to consult legal counsel and tax and accounting
advisors prior to making any offer, resale, transfer, pledge or disposition of any of the Securities.
12
(g) The
Investor acknowledges and agrees that the Investor is purchasing the Securities directly from the Issuer. The Investor further acknowledges
that there have been no representations, warranties, covenants and agreements made to the Investor by or on behalf of the Issuer, the
SPAC, any of their respective affiliates or any control persons, officers, directors, employees, partners, agents or representatives
of any of the foregoing or any other person or entity, expressly or by implication, except by the Issuer and Forge Nano as expressly
set forth in this Subscription Agreement. Investor explicitly disclaims reliance on any of the foregoing other than those representations,
warranties, covenants and agreements of the Issuer, Forge Nano and the SPAC expressly set forth in this Subscription Agreement.
(h) The
Investor’s acquisition and holding of the Securities will not constitute or result in a non-exempt prohibited transaction under
Section 406 of the Employee Retirement Income Security Act of 1974, as amended, Section 4975 of the Internal Revenue Code of
1986, as amended, or any applicable similar law.
(i) The
Investor acknowledges and agrees that the Investor has received, and has had the opportunity to review and understand such financials
and other information as the Investor deems necessary in order to make an investment decision with respect to the Securities, including,
with respect to the business of the Issuer and its subsidiaries, the SPAC and the Transaction. Without limiting the generality of the
foregoing, the Investor acknowledges that he, she or it has had the opportunity to review SPAC’s reports previously filed with
the SEC under the Exchange Act. The Investor acknowledges and agrees that the Investor and the Investor’s professional advisor(s),
if any, have had the opportunity to ask such questions, receive such answers and obtain such information as the Investor and such Investor’s
professional advisor(s) have deemed necessary to make an investment decision with respect to the Securities. The Investor has received,
and has had the opportunity to review and understand the materials made available to it in connection with the Transaction, has made
its own assessment and has satisfied itself concerning the relevant tax and other economic considerations relevant to its investment
in the Securities. The Investor acknowledges that as part of the Transaction, the Issuer has filed a registration statement under the
Securities Act, including a proxy statement of SPAC and prospectus of the Issuer, which contains additional information about the Transaction,
the Issuer and SPAC and will prepare and deliver to its shareholders an information statement setting forth information concerning the
issuance of the shares of Common Stock, Pre-Funded Warrants, Warrants, Additional Warrants and Warrant-Related Shares, subject to the
terms and conditions set forth herein and in the Pre-Funded Warrants and Warrants, to be approved at the general meeting. The Investor
acknowledges and agrees that any changes to such information, including, without limitation, any changes based on updated information
or changes in terms of the Transaction, shall in no way affect the Investor’s obligation to purchase the Securities under this
Subscription Agreement. The Investor acknowledges that the Investor will not rely on any such registration statement, proxy statement/prospectus
or information statement in making any investment decision. The Investor acknowledges that the Issuer and the SPAC offered to make certain
non-public information available to the Investor subject to customary trading restrictions and non-disclosure requirements.
13
(j) The
Investor acknowledges that certain information provided to it was based on forecasts. The Investor understands and agrees that such forecasts
were prepared based on assumptions and estimates that are inherently uncertain and are subject to a wide variety of significant business,
economic and competitive risks and uncertainties many of which are outside of the Issuer’s control. Consequently, Investor
acknowledges and agrees that actual results may differ materially from those contained in the forecasts and that the Issuer does not
guarantee the accuracy of any such forecasts. The Investor acknowledges that all forward-looking information and forecasts were prepared
without the participation of the Placement Agents and that the Placement Agents do not assume responsibility for independent verification
of, or the accuracy or completeness of, such information or forecasts.
(k) The
Investor became aware of this offering of the Securities solely by means of direct contact between the Investor and the Issuer, the SPAC
or a representative of the Issuer or the SPAC. Investor acknowledges that the Securities were offered to the Investor solely by direct
contact between the Investor and the Issuer, the SPAC or a representative of the Issuer or the SPAC. The Investor did not become aware
of this offering of the Securities, nor were the Securities offered to the Investor, by any other means. The Investor acknowledges that
the Securities: (i) were not offered to it by any advertising or, to its knowledge, general solicitation; and (ii) are not
being offered in a manner involving a public offering under, or in a distribution in violation of, the Securities Act, or any state securities
laws. In making its investment or decision to invest in the Issuer, the Investor acknowledges that it is not relying upon, and has not
relied and disclaims reliance upon, any statement, representation or warranty made by any person, firm or corporation (including, without
limitation, the Issuer, the SPAC, the Placement Agents, any of their respective affiliates or any control persons, officers, directors,
employees, partners, agents or representatives of any of the foregoing), other than the representations and warranties of the Issuer
and the SPAC contained in this Subscription Agreement. Neither the Investor, nor to its knowledge any of its directors, officers, employees,
agents, stockholders or partners has either directly or indirectly, including through a broker or finder, (i) to its knowledge,
engaged in any general solicitation, or (ii) published any advertisement in connection with the offering of the Securities.
(l) The
Investor acknowledges that it is aware that there are substantial risks incident to the purchase and ownership of the Securities. The
Investor is: (i) able to fend for itself in the Transaction contemplated in this Subscription Agreement; (ii) has such knowledge
and experience in financial and business matters as to be capable of evaluating the merits and risks of an investment in the Securities;
and (iii) has the ability to bear the economic risks of its prospective investment and can afford the complete loss of such investment.
The Investor has sought such accounting, legal and tax advice as the Investor has considered necessary to make an informed investment
decision. Investor acknowledges and agrees that it has made its own assessment and has satisfied itself concerning relevant tax and other
economic considerations relative to its purchase of the Securities. The Investor agrees that Cohen & Company Securities, LLC,
acting through its Cohen & Company Capital Markets division, or any of their affiliates, in their capacity as placement agents
(the “Placement Agents”), shall not be liable to any Investor for any action heretofore or hereafter taken or omitted
to be taken by any of them or have any liability or obligation (including, without limitation, for or with respect to any losses, claims,
damages, obligations, penalties, judgments, awards, liabilities, costs, expenses or disbursements incurred by the Investor, the Issuer
or any other person or entity), whether in contract, tort or otherwise, to any Investor, or to any person claiming through such Investor,
in respect of the Transaction. Investor represents that: (i) it is able to sustain a complete loss on its investment in the Securities;
(ii) has no need for liquidity with respect to its investment in the Securities; and (iii) has no reason to anticipate any
change in circumstances, financial or otherwise, which may cause or require any sale or distribution of all or any part of the Securities.
14
(m) Alone,
or together with any professional advisor(s), the Investor acknowledges that it has adequately analyzed and fully considered the risks
of an investment in the Securities and determined that the Securities are a suitable investment for the Investor. Investor represents
that it is able at this time and in the foreseeable future to bear the economic risk of a total loss of the Investor’s investment
in the Issuer. The Investor acknowledges specifically that a possibility of total loss exists.
(n) In
making its decision to purchase the Securities, the Investor has relied solely upon its own independent investigation and that of its
advisors, if any. Without limiting the generality of the foregoing, the Investor has not relied (and disclaims reliance) on any statements
or other information provided by or on behalf of the Placement Agents or any of their respective affiliates or any control persons, officers,
directors, employees, partners, agents or representatives of any of the foregoing concerning the Issuer, the SPAC, the Transaction, the
Merger Agreement, this Subscription Agreement or the transactions contemplated under this Subscription Agreement or the Merger Agreement,
the Securities or the offer and sale of the Securities.
(o) The
Investor acknowledges and agrees that the Placement Agents and their respective directors, officers, employees, representatives and controlling
persons: (i) have not provided the Investor with any information or advice with respect to the Securities; (ii) have not made
or make any representation, express or implied as to the Issuer, the SPAC, the Issuer’s credit quality, the Securities or the Investor’s
purchase of the Securities; (iii) have not acted as the Investor’s financial advisor or fiduciary in connection with the issue
and purchase of Securities; (iv) may have acquired, or during the term of the Securities may acquire, non-public information with
respect to the Issuer, which, subject to the requirements of applicable law, the Investor agrees need not be provided to it; (v) may
have existing or future business relationships with the Issuer and the SPAC (including, but not limited to, lending, depository, risk
management, advisory and banking relationships); (vi) will pursue actions and take steps that it deems or they deem necessary or
appropriate to protect its or their interests arising therefrom without regard to the consequences for a holder of Securities, and that
certain of these actions may have material and adverse consequences for a holder of Securities.
15
(p) The
Investor acknowledges and agrees that it has not relied on the Placement Agents in connection with its determination as to the legality
of its acquisition of the Securities or as to the other matters referred to in this Subscription Agreement. Investor also acknowledges
that it has not relied on any investigation that the Placement Agents, any of their affiliates or any person acting on their behalf have
conducted with respect to the Securities, the Issuer or the SPAC. The Investor further acknowledges and agrees that it has not relied
on any information contained in any research reports prepared by the Placement Agents or any of their affiliates.
(q) The
Investor acknowledges and agrees that no federal or state agency has passed upon or endorsed the merits of the offering of the Securities
or made any findings or determination as to the fairness of this investment.
(r) The
execution, delivery and performance by the Investor of this Subscription Agreement are within the Investor’s powers, have been
duly authorized and will not constitute or result in a breach or default under or conflict with any order, ruling or regulation of any
court or other tribunal or of any governmental commission or agency, or any agreement or other undertaking, to which the Investor is
a party or by which the Investor is bound that would reasonably be expected to have a material adverse effect on the legal authority
of the Investor to enter into and perform its obligation under this Subscription Agreement. If the Investor is not an individual, the
execution, delivery and performance by the Investor of this Subscription Agreement will not violate any provisions of the Investor’s
organizational documents, including, without limitation, its incorporation or formation papers, bylaws, indenture of trust or partnership
or operating agreement, as may be applicable. The signature on this Subscription Agreement is genuine. If the Investor is an individual,
the signatory has legal competence and Investor has the capacity to execute this Subscription Agreement. If the Investor is not an individual,
the signatory has been duly authorized to execute this Subscription Agreement. Assuming that this Subscription Agreement constitutes
the valid and binding obligation of the Issuer, this Subscription Agreement constitutes a legal, valid and binding obligation of the
Investor, enforceable against the Investor in accordance with its terms except as may be limited or otherwise affected by (i) bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally,
or (ii) principles of equity, whether considered at law or equity.
(s) The
Investor is not: (i) a person or entity named on the List of Specially Designated Nationals and Blocked Persons administered by
the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) or in any Executive Order issued by
the President of the United States and administered by OFAC (“OFAC List”), or a person or entity prohibited by any
OFAC sanctions program; (ii) owned, directly or indirectly, or controlled by, or acting on behalf of, one or more persons that are
named on the OFAC List; (iii) organized, incorporated, established, located, resident or born in, or a citizen, national or the
government, including any political subdivision, agency or instrumentality thereof, of, Cuba, Iran, North Korea, Syria, the Crimea
region of Ukraine, the so-called Donetsk People’s Republic, the so-called Luhansk People Republic or any other country or territory
embargoed or subject to substantial trade restrictions by the United States; (iv) a Designated National as defined in the Cuban
Assets Control Regulations, 31 C.F.R. Part 515; or (v) a non-U.S. shell bank or providing banking services indirectly to a
non-U.S. shell bank (each of the foregoing, a “Prohibited Investor”). If requested, the Investor agrees and is permitted
to provide law enforcement agencies such records as required by applicable law. If the Investor is a financial institution subject to
the Bank Secrecy Act (31 U.S.C. Section 5311 et seq.) (the “BSA”), as amended by the USA PATRIOT Act of 2001
(the “PATRIOT Act”), and its implementing regulations (collectively, the “BSA/PATRIOT Act”), to
the extent required, the Investor maintains policies and procedures reasonably designed to comply with applicable obligations under the
BSA/PATRIOT Act. To the extent required, the Investor maintains policies and procedures reasonably designed to ensure compliance with
OFAC-administered sanctions programs, including for the screening of its investors against the OFAC sanctions programs, including the
OFAC List. To the extent required by applicable law, the Investor maintains policies and procedures reasonably designed to ensure that
the funds held by the Investor and used to purchase the Securities were legally derived and were not obtained, directly or indirectly,
from a Prohibited Investor.
16
(t) No
disclosure or offering document has been prepared by the Placement Agents in connection with the offer and sale of the Securities.
(u) None
of the Placement Agents, nor any of their respective affiliates or any control persons, officers, directors, employees, partners, agents
or representatives of any of the foregoing, have made any independent investigation with respect to the Issuer or its subsidiaries or
any of their respective businesses, the SPAC or the Securities or the accuracy, completeness or adequacy of any information supplied
to the Investor by the Issuer or the SPAC.
(v) In
connection with the issue and purchase of the Securities, the Placement Agents have not acted as the Investor’s financial advisor
or fiduciary.
(w) The
Investor, when required to deliver payment to the Issuer pursuant to Section 2 above, will have sufficient immediately available
funds to pay the Subscription Amount and consummate the purchase and sale of the Securities pursuant to this Subscription Agreement.
(x) As
of the date of this Subscription Agreement, the Investor does not have, and during the 30 day period immediately prior to the date of
this Subscription Agreement, the Investor has not entered into, any “put equivalent position” as such term is defined in
Rule 16a-1 under the Exchange Act or short sale positions with respect to the securities of the Issuer or the SPAC. Notwithstanding
the foregoing, the Investor makes no such representation with respect to any assets of the Investor managed by an external investment
manager pursuant to a separately managed account arrangement.
(y) The
Investor is not currently (and at all times through Closing will refrain from being or becoming) a member of a “group” (within
the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act or any successor provision) acting for the
purpose of acquiring, holding, voting or disposing of equity securities of the Issuer or the SPAC (within the meaning of Rule 13d-5(b)(1) under
the Exchange Act), other than a group consisting solely of the Investor and its affiliates.
17
(z) If
the Investor is or is acting on behalf of: (i) an employee benefit plan that is subject to Title I of the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”); (ii) a plan, an individual retirement account or other arrangement
that is subject to Section 4975 of the Internal Revenue Code of 1986, as amended (the “Code”); (iii) an
entity whose underlying assets are considered to include “plan assets” of any such plan, account or arrangement described
in clauses (i) and (ii) (each, an “ERISA Plan”); or (iv) an employee benefit plan that is a governmental
plan (as defined in Section 3(32) of ERISA), a church plan (as defined in Section 3(33) of ERISA), a non-U.S. plan (as described
in Section 4(b)(4) of ERISA) or other plan that is not subject to the foregoing clauses (i), (ii) or (iii) but may
be subject to provisions under any other federal, state, local, non-U.S. or other laws or regulations that are similar to such provisions
of ERISA or the Code (collectively, “Similar Laws,” and together with ERISA Plans, “Plans”), the
Investor represents and warrants that (A) none of the Issuer, the SPAC or any of their respective affiliates has provided investment
advice or has otherwise acted as the Plan’s fiduciary, with respect to its decision to acquire and hold the Securities; (B) none
of the parties to the Transaction is or shall at any time be the Plan’s fiduciary with respect to any decision in connection with
the Investor’s investment in the Securities; and (C) its purchase of the Securities will not result in a non-exempt prohibited
transaction under Section 406 of ERISA or Section 4975 of the Code, or any applicable Similar Law.
7. Registration
Rights.
(a) On
or prior to the Closing Date, and in no event later than 30 calendar days after the Closing Date (such deadline, the “Filing
Deadline”), the Issuer will endeavor to file with the SEC (at its sole cost and expense) a registration statement on Form S-1
registering the resale of all Registrable Securities (the “Registration Statement”) (for this purpose, assuming that
the exercise prices of the Warrants, the Additional Warrants and the Reset Warrants have been reduced to $5.00). If the Registration
Statement covering the Registrable Securities is not filed with the SEC on or prior to the Filing Deadline, the Issuer will make pro
rata payments to the Investor, as liquidated damages and not as a penalty, in an amount equal to 1% of the aggregate amount paid pursuant
to this Subscription Agreement by the Investor for such Registrable Securities then held by the Investor for each 30-day period or pro
rata for any portion thereof following the Filing Deadline for which no Registration Statement is filed with respect to the Registrable
Securities. Such payments shall constitute the Investor’s exclusive monetary remedy for such events, but shall not affect the right
of the Investor to seek injunctive relief. Such payments shall be made to the Investor in cash no later than ten (10) Business Days
after the end of each such 30-day period (the “Payment Date”). Interest shall accrue at the rate of 1% per month on
any such liquidated damages payments that shall not be paid by the Payment Date until such amount is paid in full. The Issuer shall use
its commercially reasonable efforts to have the Registration Statement declared effective as soon as practicable after the filing thereof,
but no later than the earlier of (i) sixty (60) calendar days after the filing thereof (or ninety (90) calendar days after the filing
thereof if the SEC notifies the Issuer that it will “review” the Registration Statement) and (ii) five (5) Business
Days after the Issuer is notified (orally or in writing, whichever is earlier) by the SEC that the Registration Statement will not be
“reviewed” or will not be subject to further review (such earlier date, the “Effectiveness Date”). The
Issuer may amend the Registration Statement so as to convert the Registration Statement to a Registration Statement on Form S-3
at such time after the Issuer becomes eligible to use such Form S-3. The Issuer will use its commercially reasonable efforts to
provide a draft of the Registration Statement to the Investor for review at least two (2) Business Days in advance of filing the
Registration Statement. In no event shall the Investor be identified as a statutory underwriter in the Registration Statement. Notwithstanding
the foregoing, if the SEC requires that the Investor be identified as a statutory underwriter in the Registration Statement, the Investor
will have the option, in its sole and absolute discretion, to either (i) have the opportunity to cause the Issuer to withdraw from
the Registration Statement upon its prompt written request to the Issuer, in which case the Issuer’s obligation to register the
Registrable Securities will be deemed satisfied or (ii) be included as such in the Registration Statement. The Issuer’s obligations
to include the Registrable Securities issued pursuant to this Subscription Agreement (or shares issued in exchange therefor) for resale
in the Registration Statement are contingent upon the Investor furnishing in writing to the Issuer such information regarding the Investor,
the securities of the Issuer held by the Investor and the intended method of disposition of such Registrable Securities, which shall
be limited to non-underwritten public offerings, as shall be reasonably requested by the Issuer to effect the registration of such Registrable
Securities. Investor shall also execute documents in connection with such registration as the Issuer may reasonably request that are
customary of a selling shareholder in similar situations. Notwithstanding anything to the contrary in this Subscription Agreement, in
connection with the obligations of the Issuer under this Section 7, the Investor shall not be required to execute any lock-up
or similar agreement or otherwise be subject to any contractual restriction on the ability to transfer the Shares. Upon notification
by the SEC that any Registration Statement has been declared effective by the SEC, within one (1) Business Day thereafter, the Issuer
shall file the final prospectus under Rule 424 of the Securities Act. The Issuer agrees to cause such Registration Statement, or
another shelf registration statement that includes the Shares to be sold pursuant to this Subscription Agreement, to remain effective
until the earliest of: (i) the second anniversary of the Effectiveness Date of the Registration Statement registering all Shares
for resale by the Investor; (ii) the date on which the Investor ceases to hold any Shares issued pursuant to this Subscription Agreement;
or (iii) the first date on which the Investor is able to sell all of its Shares issued pursuant to this Subscription Agreement (or
shares received in exchange therefor) under Rule 144 of the Securities Act without volume or manner of sale limitations. For purposes
of clarification, any failure by the Issuer to file the Registration Statement by the Filing Deadline or to effect such Registration
Statement by the Effectiveness Date shall not otherwise relieve the Issuer of its obligations to file or effect the Registration Statement
set forth in this Section 7. Notwithstanding the foregoing, if the SEC prevents the Issuer from including any or all of the
shares proposed to be registered under a Registration Statement due to limitations on the use of Rule 415 under the Securities Act
for the resale of the Registrable Securities pursuant to this Section 7 by the applicable shareholders or otherwise, such
Registration Statement shall register for resale the number of Registrable Securities which is equal to the maximum number of Registrable
Securities as is permitted to be registered by the SEC. In such event, the number of Registrable Securities to be registered for each
selling shareholder named in such Registration Statement shall be reduced pro rata among all such selling shareholders. In the event
the Issuer amends the Registration Statement in accordance with the foregoing, the Issuer will use its commercially reasonable efforts
to file with the SEC, as promptly as allowed by the SEC, one or more registration statements to register the resale of those Registrable
Securities that were not registered on the initial Registration Statement, as so amended.
18
(b) For
as long as the Investor holds Pre-Funded Warrants, Warrants, Additional Warrants, Reset Warrants or Warrant-Related Shares or, if shorter,
through the date of expiration, or redemption or termination of the Warrants in accordance with the provisions of the Warrant Certificate,
the Issuer will use commercially reasonable efforts to (1) qualify the Warrant-Related Shares for listing on a Stock Exchange, which
shall be the stock exchange on which the Issuer’s Common Stock is then listed, and (2) update or amend the Registration Statement
as necessary to include the Warrant-Related Shares. For as long as the Investor holds Pre-Funded Warrants, Warrants, Additional Warrants,
Reset Warrants or Warrant-Related Shares or, if shorter, through the date of expiration, or redemption or termination of the Warrants
in accordance with the provisions of the Warrants and the Warrant Certificate, the Issuer will use commercially reasonable efforts to
(A) make and keep public information available, as those terms are understood and defined in Rule 144, (B) file in a timely
manner all reports and other documents with the SEC required under the Exchange Act and (C) provide all customary and reasonable
cooperation necessary, in each case, to enable the Investor to resell the Warrant-Related Shares pursuant to the Registration Statement
or Rule 144 of the Securities Act (when Rule 144 of the Securities Act becomes available to the Investor), as applicable.
(c) The
Issuer may suspend the use of any such Registration Statement if the board of directors of the Issuer determines in good faith that either
in order for such Registration Statement not to contain a material misstatement or omission, an amendment thereto would be needed to
include information that would at that time not otherwise be required in a current, quarterly or annual report under the Exchange Act
(a “Suspension Event”). Notwithstanding the foregoing, (I) the Issuer shall not so delay filing or so suspend
the use of the Registration Statement for a period of more than sixty (60) consecutive days, not more than twice or more than a total
of ninety (90) calendar days, in each case in any three hundred sixty (360) day period and (II) the Issuer shall use commercially
reasonable efforts to make such Registration Statement available for the sale by the Investor of such securities as soon as practicable
thereafter. The Issuer shall use commercially reasonable efforts to cause its transfer agent to deliver unlegended shares of Common Stock
to a transferee of an Investor in connection with any sale of Shares pursuant to the effective Registration Statement or pursuant to
Rule 144 where, following such sale, subsequent public distribution of such Shares shall not require registration under the Securities
Act.
(d) The
Issuer shall remove any restrictive legend included on the certificates (or, in the case of book-entry shares, any other instrument or
record) representing the Investor’s ownership of Shares, and the Issuer shall issue a certificate (or evidence of the issuance
of such securities in book-entry form) without such restrictive legend or any other restrictive legend to the Investor, if: (i) such
Shares are sold or transferred pursuant to the effective Registration Statement or pursuant to Rule 144 where, following such, subsequent
public distribution of such shares shall not require registration under the Securities Act; or (ii) such Shares are eligible for
sale pursuant to Section 4(a)(1) of the Securities Act or Rule 144 without volume or manner-of-sale restrictions and without
the requirement for the Issuer to be in compliance with the current public information required under Rule 144(c)(2) (or Rule 144(i)(2),
if applicable). Following Rule 144 becoming available for the resale of such Shares without volume or manner-of-sale restrictions
and without the requirement for the Issuer to be in compliance with the current public information required under Rule 144(c)(2) (or
Rule 144(i)(2), if applicable), the Issuer, upon the written request of Investor and after providing the Issuer and its transfer
agent with all customary documentation, shall instruct the Issuer’s transfer agent to remove the legend from such Shares (in whatever
form) and shall use commercially reasonable efforts to cause the Issuer’s counsel to issue any legend removal opinion required
by the transfer agent. Notwithstanding the foregoing, once the Registration Statement registering the Shares for resale becomes effective
under the Securities Act, and subject to receipt from the Investor by the Issuer and its transfer agent, as applicable, of customary
documentation in connection therewith, the Issuer shall use commercially reasonable efforts to cause the Issuer’s counsel to issue
to the transfer agent a “blanket” legal opinion to allow sales without restriction pursuant to the effective Registration
Statement and in connection with the removal of legends in connection with such sales pursuant to the effective Registration Statement,
in each case to the extent required by the transfer agent.
19
(e) At
its expense, the Issuer shall use commercially reasonable efforts to advise the Investor within five (5) Business Days: (i) when
a Registration Statement or any post-effective amendment thereto has been filed with the SEC and when such Registration Statement or
post-effective amendment thereto has become effective; (ii) after it shall receive notice or obtain knowledge thereof, of any request
by the SEC for amendments or supplements to any Registration Statement or the prospectus included in such Registration Statement or for
additional information; (iii) after it shall have received notice or obtained knowledge thereof, of the issuance by the SEC of any
stop order suspending the effectiveness of any Registration Statement or the initiation of any proceedings for such purpose; (iv) of
the receipt by the Issuer of any notification with respect to the suspension of the qualification of the Shares included in such Registration
Statement for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; and (v) subject to the
provisions in this Subscription Agreement, of the occurrence of any event that requires the making of any changes in any Registration
Statement or prospectus so that, as of such date, the statements therein do not include any untrue statements of a material fact and
do not omit to state a material fact required to be stated therein or necessary to make the statements therein (in the case of a prospectus,
in the light of the circumstances under which they were made) not misleading. The Issuer shall use commercially reasonable efforts to
promptly provide written notice of the happening of any of the foregoing or of a Suspension Event during the period that the Registration
Statement is effective or if as a result of a Suspension Event the Registration Statement or related prospectus contains any untrue statement
of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made (in the case of the prospectus) not misleading. The notice sent by the Issuer pursuant
to the preceding sentence shall not contain any material non-public information other than the description of such event, which the parties
agree may constitute material non-public information. Upon the occurrence of any event contemplated in clauses (i) through (v) above,
except for such times as the Issuer is permitted under this Subscription Agreement to suspend, and has suspended, the use of a prospectus
forming part of a Registration Statement, the Issuer shall use its commercially reasonable efforts to as soon as reasonably practicable
prepare a post-effective amendment to such Registration Statement or a supplement to the related prospectus, or file any other required
document so that, as thereafter delivered to purchasers of the Shares included in such Registration Statement, such prospectus will not
include any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading.
(f) For
purposes of this Section 7:
(i) “Shares”
shall mean, as of any date of determination, the shares of Common Stock and the Warrant-Related Shares.
(ii) “Warrant-Related
Shares” shall mean, as of any date of determination, the shares of Common Stock issued or issuable with respect to the Pre-Funded
Warrants, Warrants, Additional Warrants and Reset Warrants (assuming on such date the Pre-Funded Warrants, Warrants, the Additional Warrants
and the Reset Warrants are able to be exercised in full without regard to any exercise limitations therein).
(iii) “Investor”
shall include any person or entity to which the rights under this Section 7 shall have been duly assigned.
20
(iv) “Registrable
Securities” means (i) the Shares, (ii) all Warrant-Related Shares, and (iii) any other shares of Common Stock
issued as a dividend or other distribution with respect to, in exchange for or in replacement of the Shares, whether by way of share
split, dividend, distribution, recapitalization, merger, exchange, replacement, amendment of the articles of association or otherwise;
provided, however, that any such Registrable Securities shall cease to be Registrable Securities (and the Issuer shall
not be required to maintain the effectiveness of any, or file another, Registration Statement hereunder with respect thereto) upon the
first to occur of (A) a Registration Statement with respect to the sale of such Registrable Securities being declared effective
by the SEC under the Securities Act and such Registrable Securities having been disposed of by the holder thereof in accordance with
such effective Registration Statement, (B) such Registrable Securities having been sold in accordance with Rule 144 (or another
exemption from the registration requirements of the Securities Act) resulting in the transferee of the Shares holding unrestricted securities
and (C) such Registrable Securities becoming eligible for resale without volume or manner-of-sale restrictions and without current
public information requirements pursuant to Rule 144.
(g) Notwithstanding
any termination of this Subscription Agreement, the Issuer shall, to the extent permitted by applicable law, indemnify, defend and hold
harmless the Investor, the officers, directors, partners, members, managers, stockholders, and employees of the Investor, each person
who controls the Investor (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the
officers, directors, partners, members, managers, stockholders, and employees of each such controlling person, to the fullest extent
permitted by applicable law, from and against any and all losses, claims, damages, liabilities, reasonable and documented costs (including,
without limitation, reasonable and documented out-of-pocket attorneys’ fees) and reasonable and documented expenses (collectively,
“Losses”), as incurred, that arise out of or are based upon any untrue or alleged untrue statement of a material fact
contained (or incorporated by reference) in the Registration Statement, any prospectus included in the Registration Statement or any
form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission
or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein (in the case of
any prospectus or form of prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading.
The indemnity obligation set forth in this Section 7(g) shall not apply, however, to the extent that any untrue statements,
alleged untrue statements, omissions or alleged omissions are based upon information regarding the Investor furnished in writing to the
Issuer by the Investor expressly for use in any of the SEC filings referenced in this Section 7(g). The Issuer shall notify
the Investor promptly of the institution, threat or assertion of any proceeding arising from or in connection with the transactions contemplated
by this Section 7 of which the Issuer is aware. Notwithstanding the foregoing, the Issuer’s indemnification obligations
shall not apply to amounts paid in settlement of any Losses or action if such settlement is effected without the prior written consent
of the Issuer.
21
(h) The
Investor shall, severally and not jointly with any Other Investor, indemnify and hold harmless the Issuer, its directors, officers, partners,
members, managers, shareholders, agents and employees, each person who controls the Issuer (within the meaning of Section 15 of
the Securities Act and Section 20 of the Exchange Act), and the directors, officers, partners, members, managers, shareholders,
or employees of such controlling persons, to the fullest extent permitted by applicable law, from and against all Losses, as incurred,
arising out of or are based upon any untrue or alleged untrue statement of a material fact contained in any Registration Statement, any
prospectus included in the Registration Statement, or any form of prospectus, or in any amendment or supplement thereto or in any preliminary
prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary
to make the statements therein (in the case of any prospectus, or any form of prospectus or supplement thereto, in light of the circumstances
under which they were made) not misleading to the extent, but only to the extent, that such untrue statements, alleged untrue statements,
omissions or alleged omissions are based upon information regarding the Investor furnished in writing to the Issuer by the Investor expressly
for use therein. Notwithstanding the foregoing, the Investor’s indemnification obligations shall not apply to amounts paid in settlement
of any Losses or action if such settlement is effected without the prior written consent of the Investor.
(i) Any
person or entity entitled to indemnification pursuant to this Subscription Agreement shall (A) give prompt written notice to the
indemnifying party of any claim with respect to which it seeks indemnification and (B) unless in such indemnified party’s
reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist with respect to such claim, permit
such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party. If such defense
is assumed, the indemnifying party shall not be subject to any liability for any settlement made by the indemnified party without its
consent (but such consent shall not be unreasonably withheld, conditioned or delayed). Notwithstanding the foregoing, the failure to
give prompt notice shall not impair any person’s or entity’s right to indemnification under this Subscription Agreement to
the extent such failure has not prejudiced the indemnifying party. An indemnifying party who is not entitled to, or elects not to, assume
the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such
indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party a conflict of interest may
exist between such indemnified party and any other of such indemnified parties with respect to such claim. Without the consent of the
indemnified party, no indemnifying party shall consent to the entry of any judgment or enter into any settlement which cannot be settled
in all respects by the payment of money (and such money is so paid by the indemnifying party pursuant to the terms of such settlement)
or which settlement includes a statement or admission of fault and culpability on the part of such indemnified party or which does not
include an unconditional release of the indemnified party from all liability in respect to such claim or litigation.
(j) The
indemnification provided for under this Subscription Agreement shall remain in full force and effect regardless of any investigation
made by or on behalf of the indemnified party or any officer, director or controlling person or entity of such indemnified party and
shall survive the transfer of securities.
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(k) If
the indemnification provided under this Section 7 from the indemnifying party is unavailable or insufficient to hold harmless
an indemnified party in respect of any Losses referred to in this Section 7, then the indemnifying party, in lieu of indemnifying
the indemnified party, shall contribute to the amount paid or payable by the indemnified party as a result of such Losses in such proportion
as is appropriate to reflect the relative fault of the indemnifying party and the indemnified party, as well as any other relevant equitable
considerations. Notwithstanding the foregoing, the liability of the Investor shall be limited to the net proceeds received by such Investor
from the sale of Shares giving rise to such indemnification obligation. The relative fault of the indemnifying party and indemnified
party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue
statement of a material fact or omission or alleged omission to state a material fact, was made by (or not made by, in the case of an
omission), or relates to information supplied by (or not supplied by, in the case of an omission), such indemnifying party or indemnified
party, and the indemnifying party’s and indemnified party’s relative intent, knowledge, access to information and opportunity
to correct or prevent such action. Subject to the limitations set forth in this Section 7, the amount paid or payable by
a party as a result of the Losses shall be deemed to include any reasonable and documented out-of-pocket legal or other fees, charges
or expenses reasonably incurred by such party in connection with any investigation or proceeding. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution pursuant to this Section 7(k) from
any person or entity who was not guilty of such fraudulent misrepresentation.
8. Termination.
This Subscription Agreement shall terminate and be void and of no further force and effect, and all rights and obligations of the parties
to this Subscription Agreement shall terminate without any further liability on the part of any party in respect thereof, upon the earlier
to occur of: (a) such date and time as the Merger Agreement is terminated in accordance with its terms; (b) upon the mutual
written agreement of each of the parties to terminate this Subscription Agreement; (c) the Outside Date (as defined in the Merger
Agreement as in effect on April 20, 2026); or (d) if any of the conditions to Closing set forth in Section 3 of
this Subscription Agreement are (i) not satisfied or waived prior to the Closing or (ii) not capable of being satisfied on
the Closing and, in each case of (i) and (ii), as a result thereof, the transactions contemplated by this Subscription Agreement
will not be and are not consummated at the Closing (the termination events described in clauses (a)-(d) above, collectively, the
“Termination Events”). Nothing in this Subscription Agreement will relieve, however, any party from liability for
any willful breach of this Subscription Agreement prior to the time of termination. Each party will be entitled to any remedies at law
or in equity to recover losses, liabilities or damages arising from any such willful breach. The Issuer shall notify the Investor in
writing of the termination of the Merger Agreement promptly after the termination of the Merger Agreement. Upon the occurrence of any
Termination Event, this Subscription Agreement shall be void and of no further effect (except that the provisions of Section 7(g) through
(k), this Section 8, Sections 10 through 12 and Section 14 of this Subscription Agreement
will survive any termination of the Subscription Agreement and continue indefinitely). Following the Termination Event, any monies paid
by the Investor to the Issuer in connection with this Subscription Agreement shall promptly (and in any event within one Business Day)
be returned to the Investor without any deduction for or on account of any tax, withholding, charges, or set-off.
9. [Intentionally
Omitted.]
10. Miscellaneous.
(a) Neither
this Subscription Agreement nor any rights that may accrue to the parties hereunder (other than the Securities acquired under this Subscription
Agreement, if any, to the extent permitted by their terms) may be transferred or assigned without the prior written consent of each of
the other parties. Notwithstanding the foregoing, this Subscription Agreement and the Investor’s rights and obligations hereunder
may be assigned to one or more fund or account managed by the same investment manager as the Investor or by or to an affiliate (as defined
in Rule 12b-2 of the Exchange Act) of such investment manager without the prior consent of the Issuer. Prior to such assignment
being valid, any such assignee shall agree in writing to be bound by the terms of this Subscription Agreement. Notwithstanding the foregoing,
no assignment pursuant to clause (i) of this Section 10 shall relieve the Investor of its obligations under this Subscription
Agreement.
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(b) The
Issuer may request from the Investor such additional information as the Issuer deems reasonably necessary to register the resale of the
Securities and evaluate the eligibility of the Investor to acquire the Securities. Investor agrees to promptly provide such information
as may reasonably be requested to the extent readily available. The Issuer agrees to keep any such information provided by Investor confidential
except: (i) as necessary to include in any registration statement the Issuer is required to file under this Subscription Agreement;
(ii) as required by the federal securities law or pursuant to other routine proceedings of regulatory authorities; or (iii) to
the extent such disclosure is required by law, at the request of the staff of the SEC or regulatory agency or under the regulations of
any national securities exchange on which the Issuer’s securities are listed for trading. The Investor acknowledges and agrees
that if it does not provide the Issuer with such requested information, the Issuer may not be able to register the Investor’s Shares
for resale pursuant to Section 7. In such event, Investor also agrees that, without any liability under this Subscription
Agreement, the Issuer may reject the Investor’s Subscription Amount prior to the Closing Date in the event the Investor fails to
provide such additional information requested by the Issuer to evaluate the Investor’s eligibility or the Issuer determines that
the Investor is not eligible. The Investor acknowledges that the Issuer and/or the SPAC will file a form of this Subscription Agreement
with the SEC as an exhibit to a Current Report on Form 8-K or a registration statement of SPAC.
(c) The
Investor acknowledges that the Issuer, Forge Nano and the Placement Agents will rely on the acknowledgments, understandings, agreements,
representations and warranties of the Investor contained in this Subscription Agreement, including Schedule A. Prior to the Closing,
the Investor agrees to promptly notify the Issuer and Forge Nano if any of the acknowledgments, understandings, agreements, representations
and warranties set forth in Section 7 above are no longer accurate in any material respect (other than those acknowledgments,
understandings, agreements, representations and warranties qualified by materiality, in which case the Investor shall notify the Issuer
and Forge Nano if they are no longer accurate in any respect). If the Issuer receives such notice from Investor, the Issuer will use
commercially reasonable efforts to promptly notify the Placement Agents. The Investor acknowledges and agrees that each purchase by the
Investor of Securities from the Issuer will constitute a reaffirmation of the acknowledgments, understandings, agreements, representations
and warranties in this Subscription Agreement (as modified by any such notice) by the Investor as of the time of such purchase contained
in this Subscription Agreement. Prior to the Closing, the Issuer agrees to promptly notify the Investor if any of the acknowledgments,
understandings, agreements, representations and warranties set forth in Section 5 above are no longer accurate in any material
respect (other than those acknowledgments, understandings, agreements, representations and warranties qualified by materiality or Issuer
Material Adverse Effect, in which case the Issuer shall notify the Investor if they are no longer accurate in any respect). The Issuer
acknowledges and agrees that each sale by the Issuer of the Securities to the Investor will constitute a reaffirmation of their respective
acknowledgments, understandings, agreements, representations and warranties in this Subscription Agreement (as modified by any such notice)
as of the time of such purchase.
24
(d) The
Issuer, the Investor, Forge Nano and the Placement Agents are each entitled to rely upon this Subscription Agreement and each is irrevocably
authorized to produce this Subscription Agreement or a copy of this Subscription Agreement to any interested party in any administrative
or legal proceeding or official inquiry with respect to the matters covered under this Subscription Agreement. The foregoing clause of
this Section 11(d) shall not, however, give the Placement Agents any rights other than those expressly set forth in
this Subscription Agreement.
(e) All
of the agreements, representations and warranties made by each party in this Subscription Agreement shall survive the Closing.
(f) This
Subscription Agreement may not be modified, waived or terminated (other than pursuant to the terms of Section 8 above) except
by an instrument in writing, signed by each of the parties. No failure or delay of either party in exercising any right or remedy under
this Subscription Agreement shall operate as a waiver of such right or remedy. Nor shall any single or partial exercise of any such right
or power, or any abandonment or discontinuance of steps to enforce such right or power, or any course of conduct, preclude any other
or further exercise thereof or the exercise of any other right or power. The rights and remedies of the parties under this Subscription
Agreement are cumulative and are not exclusive of any rights or remedies that the parties would otherwise have.
(g) This
Subscription Agreement (including Schedule A) constitutes the entire agreement, and supersedes all other prior agreements, understandings,
representations and warranties, both written and oral, among the parties, with respect to the subject matter of the Subscription Agreement.
Except as set forth in Section 7 with respect to any indemnified person, Section 8, Section 10(c),
Section 10(d), Section 10(f), this Section 10(g), the last sentence of Section 10(k) and
Section 11 with respect to the persons specifically referenced in that Section, and Section 6 and Section 10(c) with
respect to the Placement Agents, this Subscription Agreement shall not confer any rights or remedies upon any person other than the parties,
and their respective successors and assigns. The parties acknowledge and agree that only those persons specifically referenced in the
preceding sentence are third party beneficiaries of this Subscription Agreement with right of enforcement for the purposes of, and to
the extent of, the rights granted to them, if any, pursuant to the applicable provisions.
(h) Except
as otherwise provided in this Subscription Agreement, this Subscription Agreement shall be binding upon, and inure to the benefit of
the parties and their heirs, executors, administrators, successors, legal representatives, and permitted assigns. The agreements, representations,
warranties, covenants and acknowledgments contained in this Subscription Agreement shall be deemed to be made by, and be binding upon,
such heirs, executors, administrators, successors, legal representatives and permitted assigns.
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(i) If
any provision of this Subscription Agreement shall be adjudicated by a court of competent jurisdiction to be invalid, illegal or unenforceable,
the validity, legality or enforceability of the remaining provisions of this Subscription Agreement shall not in any way be affected
or impaired by such court and shall continue in full force and effect so long as this Subscription Agreement as so modified continues
to express, without material change, the original intentions of the parties as to the subject matter of this Subscription Agreement and
the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective
expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred
upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with
a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).
(j) This
Subscription Agreement may be executed and delivered in one or more counterparts (including by facsimile or any other form of electronic
delivery (including.pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com or other
transmission method)) and by different parties in separate counterparts, with the same effect as if all parties hereto had signed the
same document. All counterparts so executed and delivered shall be construed together and shall constitute one and the same agreement.
(k) The
parties acknowledge and agree that irreparable damage would occur in the event that any of the provisions of this Subscription Agreement
were not performed in accordance with their specific terms or were otherwise breached. Consequently, the parties acknowledge and agree
that a party shall be entitled to an injunction or injunctions to prevent breaches of this Subscription Agreement, without posting a
bond or undertaking and without proof of damages, to enforce specifically the terms and provisions of this Subscription Agreement. The
parties also acknowledge and agree that the foregoing equitable remedies shall be in addition to any other remedy to which such party
is entitled at law, in equity, in contract, in tort or otherwise.
(l) If
any change in the number, type or classes of authorized shares of the Issuer (including the Shares), other than as contemplated by the
Merger Agreement, or any agreement contemplated by the Transaction, shall occur between the date of this Subscription Agreement and immediately
prior to the Closing by reason of reclassification, recapitalization, share division or consolidation, exchange or readjustment of shares,
or any share dividend, the number of Shares issued to the Investor, the number of Warrant-Related Shares underlying the Pre-Funded Warrants,
the Warrants, the Additional Warrants and the Reset Warrants and the per share purchase price and exercise price (as applicable) shall
be appropriately adjusted to reflect such change.
(m) This
Subscription Agreement shall be governed by and construed in accordance with the laws of the State of New York as to all matters (including
any action, suit, litigation, arbitration, mediation, claim, charge, complaint, inquiry, proceeding, hearing, audit, investigation or
reviews by or before any governmental entity related), including matters of validity, construction, effect, performance and remedies.
26
(n) Each
party under this Subscription Agreement, and any person asserting rights as a third party beneficiary in accordance with Section 10(g) may
do so only if he, she or it, irrevocably agrees that any action, suit or proceeding between or among the parties, whether arising in
contract, tort or otherwise, arising in connection with any disagreement, dispute, controversy or claim arising out of or relating to
this Subscription Agreement or any related document or any of the transactions contemplated under this Subscription Agreement or any
related document (“Legal Dispute”) shall be brought exclusively in the federal and state courts sitting in the Borough
of Manhattan in the City of New York within the State of New York (collectively the “Chosen Courts”). Each party under
this Subscription Agreement consents to the jurisdiction of the Chosen Courts in any such suit, action or proceeding. To the fullest
extent permitted by law, each party irrevocably waives, any objection that it may now or hereafter have to the laying of the venue of
any such suit, action or proceeding in the Chosen Courts or that any such suit, action or proceeding that is brought in the Chosen Courts
has been brought in an inconvenient forum. During the period a Legal Dispute that is filed in accordance with this Section 10(n) is
pending before the Chosen Courts, all actions, suits or proceedings with respect to such Legal Dispute or any other Legal Dispute, including
any counterclaim, cross-claim or interpleader, shall be subject to the exclusive jurisdiction of the Chosen Courts. Each party and any
person asserting rights as a third party beneficiary may do so only if he, she or it waives, and shall not assert as a defense in any
Legal Dispute, that: (a) such party is not personally subject to the jurisdiction of the Chosen Courts for any reason; (b) such
action, suit or proceeding may not be brought or is not maintainable in the Chosen Courts; (c) such party’s property is exempt
or immune from execution; (d) such action, suit or proceeding is brought in an inconvenient forum; or (e) the venue of such
action, suit or proceeding is improper. A final judgment in any action, suit or proceeding described in this Section 10(n) following
the expiration of any period permitted for appeal and subject to any stay during appeal shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by applicable laws. EACH OF THE PARTIES AND ANY PERSON ASSERTING
RIGHTS AS A THIRD PARTY BENEFICIARY MAY DO SO ONLY IF HE, SHE OR IT IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT TO TRIAL BY
JURY ON ANY CLAIMS OR COUNTERCLAIMS ASSERTED IN ANY LEGAL DISPUTE RELATING TO THIS SUBSCRIPTION AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
UNDER THIS SUBSCRIPTION AGREEMENT AND FOR ANY COUNTERCLAIM RELATING THERETO. IF THE SUBJECT MATTER OF ANY SUCH LEGAL DISPUTE IS ONE IN
WHICH THE WAIVER OF JURY TRIAL IS PROHIBITED, NO PARTY NOR ANY PERSON ASSERTING RIGHTS AS A THIRD PARTY BENEFICIARY SHALL ASSERT IN SUCH
LEGAL DISPUTE A NONCOMPULSORY COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS SUBSCRIPTION AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
UNDER THIS SUBSCRIPTION AGREEMENT. FURTHERMORE, NO PARTY NOR ANY PERSON ASSERTING RIGHTS AS A THIRD PARTY BENEFICIARY SHALL SEEK TO CONSOLIDATE
ANY SUCH LEGAL DISPUTE WITH A SEPARATE ACTION OR OTHER LEGAL PROCEEDING IN WHICH A JURY TRIAL CANNOT BE WAIVED.
(o) The
Issuer acknowledges and agrees that, notwithstanding anything herein to the contrary, the Securities may be pledged by Investor in connection
with a bona fide margin agreement, which shall not be deemed to be a transfer, sale or assignment of the Securities hereunder, and Investor
effecting a pledge of Securities shall not be required to provide the Issuer with any notice thereof or otherwise make any delivery to
the Issuer pursuant to this Subscription Agreement. The Issuer hereby agrees to execute and deliver such documentation as a pledgee of
the Securities may reasonably request in connection with a pledge of the Securities to such pledgee by Investor.
27
(p) Any
notice or communication required or permitted under this Subscription Agreement to any Investor shall be in writing and either delivered
personally, emailed or sent by overnight mail via a reputable overnight carrier, or sent by certified or registered mail, postage prepaid,
to such address(es) or email address(es) set forth on the signature page. Any such communication or notice shall be deemed to be given
and received: (i) when so delivered personally; (ii) when sent, with no mail undeliverable or other rejection notice, if sent
by email; or (iii) three Business Days after the date of mailing to the address below or to such other address or addresses as the
Investor may hereafter designate by notice to the SPAC or the Issuer, as applicable.
If to the SPAC, to:
Archimedes Tech SPAC Partners
II Co.
2093 Philadelphia Pike #1968 Claymont, DE 19703
Attn: Long Long, CEO
E-mail: [***********]
If to the Issuer or Forge Nano, to:
Forge Nano, Inc.
12300 Grant St. #100
Thornton, CO 80241
Attn: Paul Lichty, CEO
E-mail: [***********]
11. Non-Reliance
and Exculpation. The Investor acknowledges that it is not relying upon, and has not relied upon, and is expressly disclaiming reliance
on any statement, representation or warranty made by any person, firm or corporation (including, without limitation, the Placement Agents,
nor any of their respective affiliates or any control persons, officers, directors, employees, partners, agents or representatives of
any of the foregoing), other than the statements, representations and warranties of the Issuer and Forge Nano expressly contained in
this Subscription Agreement, in making its investment or decision to invest in the Issuer. The Investor acknowledges and agrees that
none of (i) any Other Investor pursuant to any Other Subscription Agreements related to the private placement of the Securities
(including such Other Investor’s respective affiliates or any control persons, officers, directors, employees, partners, agents
or representatives of any of the foregoing), (ii) the Placement Agents, their respective affiliates or any control persons, officers,
directors, employees, partners, agents or representatives of any of the foregoing, or (iii) any party to the Merger Agreement or
any Non-Party Affiliate (as defined below) other than the Issuer, Forge Nano and the SPAC as expressly provided for in this Subscription
Agreement, shall have any liability to the Investor, or to any Other Investor, pursuant to, arising out of or relating to: (x) this
Subscription Agreement or any Other Subscription Agreements related to the private placement of the Securities or other Equity Interests;
(y) the negotiation of this Subscription Agreement, its subject matter or the private placement of the Securities; or (z) the
transactions contemplated under this Subscription Agreement or under any Other Subscription Agreements related to the private placement
of the Securities or other Equity Interests. Without limiting the generality of the foregoing, the prohibition on liability set forth
in the preceding sentence shall apply only to any action heretofore or hereafter taken or omitted to be taken by any of them in connection
with: (i) the purchase of the Securities or with respect to any claim (whether in tort, contract or otherwise) for breach of this
Subscription Agreement; (ii) any written or oral representations made or alleged to be made in connection with this Subscription
Agreement, except as expressly provided in this Subscription Agreement; or (iii) any actual or alleged inaccuracies, misstatements
or omissions with respect to any information or materials of any kind furnished by the Issuer, the Placement Agents or any Non-Party
Affiliate concerning the Issuer, the Placement Agents, any of their respective controlled affiliates, this Subscription Agreement or
the transactions contemplated under this Subscription Agreement, except the representations of the Issuer and Forge Nano expressly set
forth in this Subscription Agreement. “Non-Party Affiliates” means each former, current or future officer, director,
employee, partner, member, manager, direct or indirect equity holder or affiliate of the Issuer, the Placement Agents or any of the Issuer’s
or the Placement Agents’ controlled affiliates or any family member of the foregoing.
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12. Disclosure.
The Issuer shall file a Current Report on Form 8-K announcing the execution of this Subscription Agreement (the “Disclosure
Document”), which Disclosure Document shall, to the extent not previously disclosed, disclose all material terms of the transactions
contemplated under this Subscription Agreement and any other material, nonpublic information that the Issuer, the SPAC or any of their
respective officers, directors, affiliates, employees or agents, including, without limitation, the Placement Agents have provided to
the Investor at any time prior to the filing of the Disclosure Document. Upon the issuance of the Disclosure Document (the “Disclosure
Time”), to the knowledge of the Issuer, the Investor shall not be in possession of any material, non-public information received
from the Issuer, the SPAC or any of their respective officers, directors, affiliates, employees or agents, including, without limitation,
the Placement Agents. Upon the Disclosure Time, the Investor shall no longer be subject to any confidentiality or similar obligations
under any current agreement, whether written or oral, with the Issuer, the SPAC or any of their respective affiliates, officers, directors,
employees or agents, including, without limitation, the Placement Agents, relating to the transactions contemplated by this Subscription
Agreement. Notwithstanding anything in this Subscription Agreement to the contrary, neither the Issuer nor the SPAC shall publicly disclose
the name of the Investor or any of its affiliates or advisers, or include the name of the Investor or any of its affiliates or advisers
in any press release or in any filing with the SEC or any regulatory agency or trading market, without the prior written consent of the
Investor, except: (i) as required by the federal securities law or pursuant to other routine proceedings of regulatory authorities;
(ii) to the extent such disclosure is required by law, at the request of the staff of the SEC or regulatory agency or under the
regulations of any national securities exchange on which the SPAC’s securities are listed for trading; or (iii) to the extent
such announcements or other communications contain only information previously disclosed in a public statement, press release or other
communication previously approved in accordance with this Section 12. Prior to any disclosure permitted under the preceding
sentence, to the extent permitted under law, each of the Issuer and the SPAC shall use commercially reasonable efforts to provide the
Investor with prior written notice of such disclosure and shall reasonably consult with the Investor regarding such disclosure.
29
13. Open-Market
Purchases. At the Investor’s election, an aggregate of 10,000,000 shares of Common Stock or Pre-Funded Warrants subscribed
for hereby may be reduced on a one-for-one share basis (the “Reduction Right”) by up to an aggregate of Open-Market
Purchase Shares and Currently Owned Shares, as applicable. For the avoidance of doubt, any such exercise of the Reduction Right shall
neither reduce the number of Warrants to be issued by the Issuer to the Investor as set forth on the Investor’s signature page hereto,
nor impair the Investor’s eligibility to receive the Additional Warrants or Reset Warrants, as described in Sections 1(b) or
1(d) of this Subscription Agreement. For the purposes of this Section 13: (i) “Open-Market Purchase
Shares” means any Purchaser Ordinary Shares (as defined in the Merger Agreement) purchased by the Investor for its own account
pursuant to open-market transactions with third parties prior to the Record Date and held through the Closing Date; and (ii) “Currently
Owned Shares” means any Purchaser Ordinary Shares the Investor beneficially owns as of the date of this Subscription Agreement
that are held through the Closing Date; and (iii) “Record Date” means the record date established for voting
at the extraordinary general meeting of the SPAC held to approve the Transaction.
14. Additional
Agreements.
(a) Subject
to Section 12, none of the Issuer, Forge Nano, the SPAC or any of their respective controlled affiliates and subsidiaries
(if any) (collectively, the “Company Group”) shall identify, or permit any of its employees, agents or representatives
to identify, the Investor (whether in connection with the Issuer or the SPAC or in the Investor’s capacity as an investor in Issuer
and/or the SPAC) in any written or oral public communications or issue any press release or other disclosure of the Investor’s
name or the name of any of its affiliates, or any derivative of any of the foregoing names (collectively, the “Investor Names”),
in each case except: (i) as authorized in writing by the Investor in each such instance (electronic mail to suffice); or (ii) as
required by applicable law, legal process or regulatory request (“Applicable Law”). Subject to Section 12,
if disclosure is required pursuant the preceding sentence, the disclosing member of the Company Group will, as soon as practicable, notify
the Investor of such requirement (except where prohibited by Applicable Law) so that the Investor (or its applicable affiliate) may seek
a protective order or other appropriate remedy prior to such disclosure. Notwithstanding the foregoing, the Issuer and the SPAC may make
disclosures to an auditor or governmental or regulatory authority pursuant to any routine investigation, inspection, examination or inquiry
without providing the Investor with any notification thereof, unless the Investor is the subject of any such investigation, inspection,
examination or inquiry (in which case the preceding sentence shall govern).
(b) The
Issuer, on behalf of itself and the other Company Parties (as defined below), acknowledges and agrees that the acquisition of the Securities
and the execution and adoption of this Subscription Agreement are not intended to establish, and shall not establish, an investment advisory
relationship by and among, (i) on the one hand, the Investor or any affiliate, or any of its or their members, owners, partners,
officers, directors, employees, agents or representatives (each, an “Investor Party”), and (ii) on the other
hand, any member of the Company Group or any of their respective officers, directors, shareholders, partners, members, employees, agents
or representatives (each, a “Company Party”), whereby any Investor Party serves as an investment adviser to any Company
Party or that would otherwise result in any Investor Party meeting the definition of an investment adviser in Section 202(a)(11)
of the Investment Advisers Act of 1940, as amended, with respect to any Company Party. Further, the Issuer, on behalf of itself and the
other Company Parties, acknowledges and agrees that the Company Parties are not relying upon any Investor Party for investment advice,
analysis or recommendations regarding any investment or potential investment.
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(c) From
the date hereof until the Standstill Termination Date, the Issuer shall not, without the prior written consent of the Investors who purchased
at least a majority of the aggregate amount of shares of Common Stock and Pre-Funded Warrants under the Subscription Agreements, issue,
enter into any agreement to issue or announce the issuance of any shares of Common Stock, or Common Stock Equivalents, in each case other
than an Exempt Issuance. For the avoidance of doubt, prior to the Closing Date, Forge Nano shall be permitted to issue (and any such
issuance shall be an “Exempt Issuance” for the purpose of this clause (c)), Series D preferred convertible equity, par
value $0.0001 per share, of Forge Nano, Inc., and any equity securities issued in conversion thereof (which shall automatically,
directly or indirectly, be exchanged for securities of the Company pursuant to the Merger Agreement).
(d) The
Investor hereby acknowledges and agrees that it will not, and will cause each affiliate and each person acting at the Investor’s
or its affiliates’ direction or pursuant to any understanding with the Investor or its affiliates to not, directly or indirectly
offer, sell, pledge, contract to sell or sell any option to purchase, or engage in hedging activities or execute any “short sales”
as defined in Rule 200 of Regulation SHO under the Exchange Act, in each case that result in the Investor having a net short cash
position in respect of the Securities or any securities of the SPAC from the date hereof until the Reset Termination Date (or such earlier
termination of this Subscription Agreement in accordance with its terms). For the avoidance of doubt, nothing contained herein shall
prohibit the Investor from (i) any purchase of securities by the Investor, its affiliates or any person or entity acting on behalf
of the Investor or any of its affiliates in an open market transaction after the execution of this Subscription Agreement, or (ii) any
sale (including the exercise of any redemption right) of securities of the SPAC or the Issuer (A) held by the Investor, its affiliates
or any person or entity acting on behalf of the Investor or any of its affiliates prior to the execution of this Subscription Agreement
or (B) purchased by the Investor, its affiliates or any person or entity acting on behalf of the Investor or any of its affiliates
in an open market transaction after the execution of this Subscription Agreement. Notwithstanding the foregoing, (i) nothing herein
shall prohibit other entities under common management with the Investor that have no knowledge of this Subscription Agreement or of the
Investor’s participation in the Transaction (including the Investor’s affiliates, as applicable) from entering into any “short
sales” as defined in Rule 200 of Regulation SHO under the Exchange Act and (ii) in the case of an Investor that is a
multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such Investor’s assets and the
portfolio managers have no knowledge of the investment decisions made by the portfolio managers managing other portions of such Investor’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 Subscription Agreement and/or makes investment decisions with
respect to the Securities held by the Investor.
15. Definitions.
In addition to the terms defined elsewhere in this Subscription Agreement: (a) capitalized terms that are not otherwise defined
in this Subscription Agreement have the meanings given to such terms in the Warrant Certificate and (b) the following terms have
the meanings set forth in this Section 15:
31
“Business Day”
means a day other than a Saturday, Sunday or other day on which commercial banks in New York, New York are authorized or required by
law to close.
“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.
“Pre-Funded Warrant
Certificate” means the warrant certificate evidencing the Pre-Funded Warrants subscribed hereby in the form set forth in Exhibit B
to this Subscription Agreement.
“Pre-Funded Warrants”
means, collectively, the warrants (each, a “Pre-Funded Warrant”) delivered to the Investor at the Closing in accordance
with the terms of this Subscription Agreement, each such Pre-Funded Warrant exercisable for the purchase of one share of Common Stock
at an exercise price of $0.0001 per share, which Pre-Funded Warrants shall be exercisable immediately, in the form of the Pre-Funded
Warrant Certificate and subject to adjustment as set forth therein.
“Securities”
means shares of Common Stock, the Pre-Funded Warrants, the Warrants, the Warrant-Related Shares, the Additional Warrants (and any shares
of Common Stock issuable upon exercise thereof) and the Reset Warrants (and any shares of Common Stock issuable upon exercise thereof).
“Standstill Termination
Date” shall mean the date that is six months from the effective date of the Registration Statement.
“Warrant Certificate”
means the warrant certificate evidencing the Warrants subscribed hereby in the form set forth in Exhibit A to this Subscription
Agreement.
“Warrants”
means, collectively, the warrants (each, a “Warrant”) delivered to the Investor at the Closing in accordance with
the terms of this Subscription Agreement, each such Warrant exercisable for the purchase of one share of Common Stock at an exercise
price of $10.00 per share, which Warrants shall be exercisable immediately and have a term of exercise equal to five years, in the form
of the Warrant Certificate and subject to adjustment and reset as set forth therein.
[SIGNATURE PAGES FOLLOW]
32
IN
WITNESS WHEREOF, the Investor has executed or caused this Subscription Agreement to be executed by its duly authorized representative
as of the date set forth below.
Name
of Investor:
State/Country
of Formation or Domicile
By:
Name:
Title:
Name
in which Securities are to be registered
(if different):
Date:
Investor’s
EIN:
Business
Address-Street:
Mailing
Address-Street (if different):
City,
State, Zip:
City,
State, Zip:
Attn:
Attn:
Telephone
No.:
Telephone
No.:
Facsimile
No.:
Facsimile
No.:
Email:
Number of shares of Common Stock Subscribed: 2,968,825
Number of Pre-Funded Warrants Subscribed: 7,031,175
Number of Warrants Subscribed: 15,000,000
Aggregate Subscription Amount: $100,000,000
¨ If
at any time the Investor would beneficially own shares of Common Stock representing in excess
of 9.9% of the outstanding shares of Common Stock, Investor elects to be subject to
the “Beneficial Ownership Limitation” set forth in Sections 2(f) and 3(m) of
each of the Pre-Funded Warrant and the Warrant Certificate.
You must pay the Subscription
Amount by wire transfer of United States dollars in immediately available funds to the account specified by the Issuer in the Closing
Notice.
[Signature Page to Subscription Agreement]
33
IN WITNESS WHEREOF, each
of the Issuer, Forge Nano and the SPAC has accepted this Subscription Agreement as of October 13, 2026.
[Signature Page to Subscription Agreement]
34
SCHEDULE A
ELIGIBILITY REPRESENTATIONS OF THE INVESTOR
This Schedule must be completed by the Investor
and forms a part of the Subscription Agreement to which it is attached. Capitalized terms used and not otherwise defined in this Schedule
have the meanings given to them in the Subscription Agreement. The Investor must check the applicable box in either Section A, Section B
or Section C below.
A. QUALIFIED INSTITUTIONAL BUYER STATUS
(Please check
the applicable subparagraphs):
¨ We
are a “qualified institutional buyer” (as defined in Rule 144A under the
Securities Act (a “QIB”)).
¨ We
are subscribing for the Securities as a fiduciary or agent for one or more investor accounts,
and each owner of such account is a QIB.
B. INSTITUTIONAL ACCREDITED INVESTOR STATUS
(Please check
the applicable subparagraphs):
1. ¨
We
are an “accredited investor” (within the meaning of Rule 501(a) under
the Securities Act or an entity in which all of the equity holders are accredited investors
within the meaning of Rule 501(a) (1), (2), (3) or (7) under the Securities
Act), and have marked and initialed the appropriate box on the following page indicating
the provision under which we qualify as an “accredited investor.”
2. ¨
We
are not a natural person.
Rule 501(a) under the Securities Act,
in relevant part, states that an “accredited investor” shall mean any person who comes within any of the below listed categories,
or who the issuer reasonably believes comes within any of the below listed categories, at the time of the sale of the securities to that
person. The Investor has indicated, by marking and initialing the appropriate box below, the provision(s) below which apply to the
Investor and under which the Investor accordingly qualifies as an “accredited investor.”
¨ Any
bank, registered broker or dealer, insurance company, registered investment company, business
development company, or small business investment company;
¨ Any
plan established and maintained by a state, its political subdivisions, or any agency or
instrumentality of a state or its political subdivisions for the benefit of its employees,
if such plan has total assets in excess of USD 5,000,000;
Sch. A-1
¨ Any
employee benefit plan, within the meaning of the Employee Retirement Income Security Act
of 1974, if a bank, insurance company, or registered investment adviser makes the investment
decisions, or if the plan has total assets in excess of USD 5,000,000;
¨ Any
organization described in Section 501(c)(3) of the Internal Revenue Code, corporation,
similar business trust, or partnership, not formed for the specific purpose of acquiring
the securities offered, with total assets in excess of USD 5,000,000; or
¨ Any
trust with assets in excess of USD 5,000,000, not formed to acquire the securities offered,
whose purchase is directed by a sophisticated person.
C. QUALIFIED PURCHASER STATUS
(Please check
the applicable subparagraphs):
1. ¨
A
corporation, partnership, limited liability company, trust or other organization that: (i)was
not organized or reorganized and is not operated for the specific purpose of acquiring the
interest or any other interest in the Issuer, and less than 40% of the assets of which will
consist of interests in the Issuer (calculated as of the time of the Investor’s execution
of this Subscription Agreement); (ii) owns not less than USD 5,000,000 in investments;
and (iii)is owned directly or indirectly solely by or for two or more natural persons who
are related as siblings or spouses (including former spouses), or direct lineal descendants
by birth or adoption, spouses of such persons, the estates of such persons, or foundations,
charitable organizations, or trusts established by or for the benefit of such persons.
2. ¨
A
trust: (i) that is not described in paragraph (3) of this Section C; (ii) that
was not organized or reorganized and is not operated for the specific purpose of acquiring
the interest or any other interest in SPAC, and less than 40% of the assets of which will
consist of interests in SPAC (calculated as of the time of the Investor’s execution
of this Subscription Agreement); and (iii) with respect to which each of the settlors
and other contributors of assets, trustees, and other authorized decision makers is a person
described in paragraph (1), (2) or (3) of this Section C.
3. ¨
An
entity that: (i) was not organized or reorganized and is not operated for the specific
purpose of acquiring the interest or any other interest in the Issuer, and less than 40%
of the assets of which will consist of interests in the Issuer (calculated as of the time
of the Investor’s execution of this Subscription Agreement); and (ii) has discretionary
investment authority with regard to at least USD 25,000,000 of investments, whether for its
own account or for the account of other persons that are themselves accurately described
by one or more other paragraphs of this Section C.
This page should be completed by the
Investor
and constitutes a part of the Subscription Agreement.
Sch. A-2
Exhibit A
Form of Warrant Certificate
A-1
Exhibit B
Form of Pre-Funded Warrant Certificate
B-1
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