Form 8-K
8-K — XBP Global Holdings, Inc.
Accession: 0001104659-26-107322
Filed: 2026-09-14
Period: 2026-09-11
CIK: 0001839530
SIC: 7389 (SERVICES-BUSINESS SERVICES, NEC)
Item: Entry into a Material Definitive Agreement
Item: Unregistered Sales of Equity Securities
Item: Financial Statements and Exhibits
Documents
8-K — tm2623653d2_8k.htm (Primary)
EX-10.1 — EXHIBIT 10.1 (tm2623653d2_ex10-1.htm)
EX-10.2 — EXHIBIT 10.2 (tm2623653d2_ex10-2.htm)
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8-K — FORM 8-K
8-K (Primary)
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2026-09-11
2026-09-11
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XBP:Redeemablewarrantseachtenwarrantsexercisableforoneshareofcommonstockatanexercisepriceof115.00Member
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UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or Section 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
September 11, 2026
XBP
Global Holdings, Inc.
(Exact name of registrant as specified in its
charter)
Delaware
001-40206
85-2002883
(State
or other jurisdiction of
incorporation or organization)
(Commission
File Number)
(I.R.S.
Employer Identification
Number)
6641
N. Belt Line Road, Suite 100
Irving,
Texas
75063
(Address
of principal executive offices)
(Zip Code)
(844)
935-2832
Registrant’s
telephone number, including area code
Not Applicable
(Former name or former address, if changed since
last report)
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:
¨
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of
the Act:
Title of
each class
Trading
Symbol(s)
Name of each
exchange
on which registered
Common
stock, par value $0.0001 per share
XBP
The
Nasdaq
Capital Market
Redeemable
warrants, each ten warrants exercisable for one share of common stock at an exercise price of $115.00
XBPEW
The
Nasdaq
Capital Market
Indicate
by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405
of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
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.
On September 11, 2026, XBP Global Holdings, Inc.
(the “Company”) entered into securities purchase agreements (the “Purchase Agreements”) with certain accredited
investors (the “Purchasers”), for the sale by the Company in a private placement (the “Private Placement”) of
an aggregate of 2,275,245 shares (the “Shares”) of the Company’s common stock, par value $0.0001 per share (the “Common
Stock”), at a weighted purchase price of approximately $2.66 per Share, for aggregate gross proceeds to the Company of approximately
$6.05 million.
HCI, LLC (“HCI”), an affiliate of HGM Limited (“HGM”),
participated as a Purchaser in the Private Placement, purchasing 204,946 shares of Common Stock. Mr. Par Chadha, the Executive Chairman
of the Company’s Board of Directors (the “Board”), is the Chairman of HGM. Additionally, certain funds managed by investment
advisers affiliated with Avenue Capital Group (“Avenue”) participated as a Purchaser in the Private Placement, purchasing
600,000 shares of Common Stock. Mr. Randal Klein, a member of the Board, is a portfolio manager at Avenue. Andrej Jonovic, Chief
Executive Officer of the Company and Dejan Avramovic, Chief Financial Officer of the Company, participated as Purchasers in the Private
Placement, purchasing 31,500 shares and 8,833 shares of Common Stock, respectively. All purchases made by HCI, Avenue, Mr. Jonovic,
and Mr. Avramovic and certain other employees and a former consultant of the Company were made at a per share price of $2.83, which
is the consolidated closing bid price of the Common Stock immediately preceding entry into the Private Placement, and the remainder of
the Shares were purchased at a per share price of $2.55.
The closing of the Private Placement is expected
to occur on or before September 15, 2026, subject to the satisfaction of certain customary closing conditions. The Purchase Agreements
contain customary representations, warranties and covenants by the Company, customary indemnification obligations of the Company, other
obligations of the parties and termination provisions. The representations, warranties and covenants contained in the Purchase Agreements
were made only for purposes of the Purchase Agreements and as of specific dates, were solely for the benefit of the parties to such agreement
and were subject to limitations agreed upon by the contracting parties.
Cantor Fitzgerald & Co. (“Cantor”)
acted as placement agent for the Private Placement.
The Shares issuable pursuant to the Purchase
Agreements will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), and will be issued
in reliance on the exemption from registration requirements thereof provided by Section 4(a)(2) of the Securities Act or
Rule 506 of Regulation D promulgated thereunder. The Company relied on these exemptions from registration based in part
on representations made by the Purchasers.
On September 11, 2026, in connection with
the Purchase Agreements, the Company entered into Registration Rights Agreements with the Purchasers (each, a “Registration Rights
Agreement” and collectively, the “Registration Rights Agreements”). The Registration Rights Agreements provide, among
other things, that the Company will file with the Securities and Exchange Commission (the “SEC”) a registration statement
registering the resale of the Shares no later than September 22, 2026. The Company agreed to use commercially reasonable efforts
to have such registration statement declared effective as soon as practicable after the filing thereof.
In connection with the Private Placement, the
officers, directors and certain stockholders of the Company each executed a lock-up agreement, pursuant to which each such person agreed,
without the prior written consent of Cantor and subject to certain exceptions, not to (i) directly or indirectly, offer for sale,
sell, pledge or otherwise dispose of any shares of Common Stock (including shares of Common Stock that may be deemed to be beneficially
owned or hereafter acquired) or securities convertible into or exercisable or exchangeable for Common Stock, (ii) enter into any
swap or other derivatives transaction that transfers to another, in whole or in part, any of the economic benefits or risks of ownership
of shares of Common Stock, or (iii) publicly disclose the intention to do any of the foregoing, for a period ending on the earlier
of (a) the 30th day following the date on which the Company’s registration statement registering for resale the Shares issued
in the Private Placement has been declared effective by the SEC or (b) the 60th day following the closing of the Private Placement.
The foregoing description of the Purchase Agreements
and the Registration Rights Agreements does not purport to be complete and is qualified in its entirety by reference to the text of the
Purchase Agreements and the Registration Rights Agreements, the forms of which are filed as Exhibits 10.1 and 10.2 hereto, respectively,
and are incorporated herein by reference.
Item 3.02. Unregistered Sales of Equity Securities.
The information contained in Item 1.01 of this
Current Report on Form 8-K regarding the Private Placement is incorporated by reference in this Item 3.02.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No.
Description
10.1
Form of
Securities Purchase Agreement
10.2
Form of
Registration Rights Agreement
104
Cover Page Interactive
Data File (embedded within the Inline XBRL document)
SIGNATURE
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: September 14, 2026
XBP GLOBAL HOLDINGS, INC.
By:
/s/
Dejan Avramovic
Dejan Avramovic
Chief Financial Officer
EX-10.1 — EXHIBIT 10.1
EX-10.1
Filename: tm2623653d2_ex10-1.htm · Sequence: 2
Exhibit 10.1
Execution Version
SECURITIES PURCHASE AGREEMENT
This Securities Purchase
Agreement (this “Agreement”) is dated as of September 11, 2026, by and between XBP Global Holdings, Inc.,
a Delaware corporation (the “Company”), and each of the investors identified on the signature pages hereto (including
its respective successors and assigns, the “Purchasers” and each a “Purchaser”).
WHEREAS,
the Company and each Purchaser are executing and delivering this Agreement in reliance upon the exemption from securities registration
afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (together with the rules and regulations thereunder,
the “Securities Act”) and/or Rule 506 of Regulation D promulgated thereunder; and
WHEREAS,
the Company desires to issue and sell to the Purchasers, and the Purchasers, severally and not jointly, desire to purchase from the Company,
securities of the Company as more fully described in this Agreement.
NOW,
THEREFORE, in consideration of the mutual covenants contained in this Agreement and for other good and valuable consideration
the receipt and adequacy of which are hereby acknowledged, the Company and each Purchaser hereby agree as follows:
ARTICLE 1
DEFINITIONS
1.1 Definitions.
In addition to the terms defined elsewhere in this Agreement, the following terms have the meanings set forth in this Section 1.1:
“Acquiring Person”
shall have the meaning ascribed to such term in Section 4.6.
“Action”
shall have the meaning ascribed to such term in Section 3.1(g).
“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control
with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.
“Board of Directors”
means the board of directors of the Company.
“BSA/PATRIOT Act”
shall have the meaning ascribed to such term in Section 3.2(l).
“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 generally
are open for use by customers on such day.
“Closing”
shall have the meaning ascribed to such term in Section 2.1(a).
“Closing Date”
means the second (2nd) Trading Day after (x) the date hereof or, (y) if later, the date on which all of the Transaction
Documents have been executed and delivered by the applicable parties thereto, and all conditions precedent to (i) each Purchaser’s
obligation to pay its Subscription Amount and (ii) the Company’s obligations to deliver the Shares, in each case, have been
satisfied or waived.
“Commission”
or “SEC” means the United States Securities and Exchange Commission.
“Common Stock”
means the common stock of the Company, par value $0.0001 per share.
“Common Stock Equivalents”
means any securities of the Company which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation,
any debt, preferred stock, 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, Common Stock.
“Contract”
shall have the meaning ascribed to such term in Section 3.1(c).
“Disclosure Time”
shall have the meaning ascribed to such term in Section 4.5.
“DTC”
shall have the meaning ascribed to such term in Section 3.1(m).
“Engagement Letter”
means that certain engagement letter, dated August 26, 2026, by and between the Company and Cantor Fitzgerald & Co., as
amended, modified or supplemented from time to time.
“Environmental Laws”
shall have the meaning ascribed to such term in Section 3.1(t).
“Exchange Act”
means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.
“Exempt Issuance”
means the issuance of (a) any shares of Common Stock of the Company issued upon the exercise or settlement (including any “net”
or “cashless” exercises or settlements) of options or vesting of restricted stock units or other equity awards granted under
equity incentive plans described in the SEC Reports, (b) equity awards under such plans or inducement awards approved in accordance
with applicable Nasdaq rules, (c) the filing by the Company of a registration statement on Form S-8 with respect to the Company’s
existing employee benefit plans, (d) shares of Common Stock or Common Stock Equivalents issued upon the exercise, conversion or
exchange of securities outstanding on the date hereof in accordance with their existing terms, (e) securities issued pursuant to
the Transaction Documents, and (f)(i) securities issued in connection with acquisitions, strategic commercial transactions, or other
transactions approved by a majority of the disinterested directors of the Company and (ii) securities issued in connection with
debt restructuring, exchange with lenders or other creditors, liability management transaction or workout approved by the Board of Directors;
provided that, in the case of clauses (f)(i) and (f)(ii), such securities are issued as “restricted securities”
(as defined in Rule 144) and carry no registration rights that require or permit the filing of any registration statement in connection
therewith during the prohibition period in Section 4.11 herein, and provided that, in the case of clause (f)(i), any
such issuance shall only be to a Person (or to the equityholders of a Person) which is, itself or through its Subsidiaries, an operating
company or an owner of an asset in a business synergistic with the business of the Company and shall provide to the Company additional
benefits in addition to the investment of funds, but shall not include an issuance to an entity whose primary business is investing in
securities.
2
“FCPA”
shall have the meaning ascribed to such term in Section 3.1(v)(i).
“GAAP”
shall mean generally accepted accounting principles in the United States of America.
“Governmental Entity”
means any nation, state, county, city, town, village, district, or other political jurisdiction of any nature, federal, state, local,
municipal, foreign, or other government, governmental or quasi-governmental authority of any nature (including any governmental agency,
branch, department, official, or entity and any court or other tribunal), multi-national organization or body; or body exercising, or
entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory, or taxing authority or power of any nature
or instrumentality of any of the foregoing, including any entity or enterprise owned or controlled by a government or a public international
organization or any of the foregoing.
“Intellectual Property”
shall have the meaning ascribed to such term in Section 3.1(w).
“IT Systems and
Data” shall have the meaning ascribed to such term in Section 3.1(jj).
“Law”
means any federal, state, local, municipal, foreign or other law, statute, legislation, principle of common law, ordinance, code, edict,
decree, proclamation, treaty, convention, rule, regulation, directive, requirement, writ, injunction, settlement, Order or Consent that
is or has been issued, enacted, adopted, passed, approved, promulgated, made, implemented or otherwise put into effect by or under the
authority of any Governmental Entity.
“Liens”
means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.
“Lock-up Agreement”
means the Lock-Up Agreement, dated as of the date hereof, by and between the Company, all officers and directors of the Company, and
certain stockholders, the form of which is attached hereto as Exhibit A.
“Material Adverse
Effect” means (i) with respect to the Company, a material adverse effect on the condition (financial or otherwise), earnings
or business affairs of the Company and its Subsidiaries, taken as a whole, or (ii) with respect to any party, any event, change,
development, circumstance, condition, state of facts or occurrence that, individually or in the aggregate, is or would reasonably be
expected to be materially adverse to such party’s ability to perform its obligations under, or consummate the transactions contemplated
by, the Transaction Documents on a timely basis.
“Material Permits”
shall have the meaning ascribed to such term in Section 3.1(u).
3
“Money Laundering
Laws” shall have the meaning ascribed to such term in Section 3.1(k).
“Nasdaq”
means The Nasdaq Stock Market LLC.
“OFAC”
shall have the meaning ascribed to such term in Section 3.1(v)(ii).
“OFAC List”
shall have the meaning ascribed to such term in Section 3.2(l).
“Officer’s
Certificate” means a certificate, in form and substance reasonably satisfactory to the Purchasers, signed by the Chief Executive
Officer or the Chief Financial Officer of the Company to the effect that (i) the representations and warranties of the Company in
Section 3.1 hereof are true and correct in all material respects, except for those representations and warranties qualified
by materiality or Material Adverse Effect, which shall be true and correct in all respects, as of the Closing Date, as though made on
and as of such date, except to the extent any such representation or warranty expressly speaks as of an earlier date, in which case such
representation or warranty shall be true and correct in all material respects as of such earlier date, except for those representations
and warranties qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects as of such earlier
date, (ii) all obligations, covenants and agreements to be performed or complied with by the Company at or prior to the Closing
have been performed or complied with by it, and (iii) all of the conditions set forth in Section 2.3(b) have been
satisfied.
“Organizational
Documents” means, with respect to any Person that is an entity, its certificate of incorporation or formation, bylaws, operating
agreement, memorandum and articles of association or similar organizational documents, in each case, as amended.
“Per Share Purchase
Price” means, with respect to each Purchaser, the purchase price per Share set forth opposite such Purchaser’s name on
Schedule A.
“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.
“Placement Agent”
means Cantor Fitzgerald & Co.
“Proceeding”
means an action, claim, suit, investigation or proceeding, whether commenced or threatened.
“Registration Rights
Agreement” means the Registration Rights Agreement among the Company, the Purchasers and the other parties thereto, in the
form of Exhibit B attached hereto.
“Registration Statement”
means a registration statement meeting the requirements set forth in the Registration Rights Agreement and covering the resale of the
Shares by the Purchasers as provided for in the Registration Rights Agreement.
“Representatives”
shall have the meaning ascribed to such term in Section 3.2(g).
4
“Rule 144”
means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such rule may be amended or interpreted from
time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect
as such rule.
“Rule 424”
means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such rule may be amended or interpreted from
time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect
as such rule.
“Sanctioned Territory”
shall have the meaning ascribed to such term in Section 3.1(v)(ii).
“Sanctions”
shall have the meaning ascribed to such term in Section 3.1(v)(ii).
“SEC Guidance”
shall have the meaning ascribed to such term in Section 3.1(p).
“SEC Reports”
shall have the meaning ascribed to such term in Section 3.1(o).
“Securities Act”
means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.
“Shares”
shall have the meaning ascribed to such term in Section 2.1(a).
“Share Cap”
means 2,375,000 Shares, subject to appropriate adjustment for any stock split, stock dividend, stock combination, recapitalization or
similar transaction occurring after the date hereof.
“Short Sales”
shall include, without limitation, all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act
and all types of direct and indirect stock pledges (other than pledges in the ordinary course of business as part of prime brokerage
arrangements), forward sale contracts, options, puts, calls, swaps and similar arrangements (including on a total return basis), and
sales and other transactions through non-U.S. broker dealers or foreign regulated brokers.
“Standstill Termination
Date” shall mean the date that is thirty (30) consecutive calendar days from the effective date of the Registration Statement.
“Subscription Amount”
shall mean, as to each Purchaser, the aggregate amount to be paid for the Shares purchased hereunder pursuant to the terms of this Agreement
as set forth across from such Purchaser’s name on Schedule A hereto in U.S. dollars and in immediately available funds.
“Subsidiary”
means, with respect to any Person, any corporation, partnership, association or other business entity of which (i) if a corporation,
a majority of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote in the
election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one
or more of the other Subsidiaries of that Person or a combination thereof, or (ii) if a partnership, association or other business
entity, a majority of the partnership or other similar ownership interests thereof is at the time owned or controlled, directly or indirectly,
by any Person or one or more Subsidiaries of that Person or a combination thereof. For purposes hereof, a Person or Persons will be deemed
to have a majority ownership interest in a partnership, association or other business entity if such Person or Persons will be allocated
a majority of partnership, association or other business entity gains or losses or will be or control the managing director, managing
member, general partner or other managing Person of such partnership, association or other business entity. A Subsidiary of a Person
will also include any variable interest entity which is consolidated with such Person under applicable accounting rules.
5
“Taxes”
means all direct or indirect federal, state, local, foreign and other net income, gross income, gross receipts, sales, use, value-added,
ad valorem, transfer, franchise, profits, license, lease, service, service use, withholding, payroll, employment, social security and
related contributions due in relation to the payment of compensation to employees, excise, severance, stamp, occupation, premium, property,
windfall profits, alternative minimum, estimated, customs, duties or other taxes, fees, assessments or charges in the nature of a tax,
together with any interest and any penalties, additions to tax or additional amounts with respect thereto imposed by a Governmental Entity.
“Trading Day”
means a day on which the principal Trading Market is open for trading.
“Trading Market”
means the Nasdaq Capital Market or whichever of the New York Stock Exchange, the NYSE American, Nasdaq Global Market, or the Nasdaq Global
Select Market on which the Common Stock is listed or quoted for trading on the date in question.
“Transaction Documents”
means this Agreement, all exhibits and schedules hereto and the Registration Rights Agreement.
“Transfer Agent”
means Continental Stock Transfer & Trust Company, the current transfer agent of the Company, and any successor transfer agent
of the Company.
ARTICLE 2
PURCHASE
AND SALE
2.1 Purchase
and Delivery of Shares; Closing.
(a) On
the Closing Date, upon the terms and subject to the conditions set forth herein, the Company agrees to sell to each Purchaser, and each
Purchaser agrees to purchase, severally and not jointly with each other Purchaser, the number of shares of Common Stock set forth opposite
such Purchaser’s name on Schedule A (the “Shares”), at the applicable Per Share Purchase Price set forth opposite such
Purchaser’s name on Schedule A, for an aggregate purchase price equal to such Purchaser’s Subscription Amount. Upon the satisfaction
or waiver of the conditions set forth in Section 2.3, the closing of the purchase and sale of the Shares pursuant to this Agreement
(the “Closing”) shall take place virtually by the electronic exchange of documents. At or prior to the Closing, each Purchaser
shall execute any related agreements or other documents, in each case, required to be executed pursuant to Section 2.2(b) hereof,
dated on or before the Closing Date. Notwithstanding anything to the contrary, the aggregate number of Shares sold pursuant to this Agreement
shall not exceed the Share Cap.
6
2.2 Deliveries.
(a) On
or prior to the Closing Date, the Company shall deliver or cause to be delivered to each Purchaser the following:
(i) this
Agreement duly executed by the Company;
(ii) reasonable
evidence of issuance by book entry of the Shares, registered in the name of such Purchaser;
(iii) the
Officer’s Certificate;
(iv) the
Registration Rights Agreement duly executed by the Company;
(v) a
Certificate, in form and substance reasonably satisfactory to the Purchasers, executed on behalf of the Company by its Secretary, dated
as of the Closing Date, certifying the resolutions adopted by the Board of Directors of the Company approving the transactions contemplated
by this Agreement, the other Transaction Documents and the issuance of the Shares, certifying the current versions of the Certificate
of Incorporation and Bylaws of the Company and certifying as to the signatures and authority of persons signing the Transaction Documents
and related documents on behalf of the Company;
(vi) an
opinion letter from Baker & Hostetler LLP, the Company’s counsel, dated as of the Closing Date, addressed to the Purchasers,
in customary form and substance reasonably acceptable to the Purchasers and the Placement Agent, addressing customary legal matters for
a transaction of this type, which letter shall include a statement acknowledging that the Placement Agent may rely on such letter and
the opinions set forth therein in its capacity as placement agent for the transactions contemplated by this Agreement and solely for
the purposes of its acting in such capacity, subject to the assumptions, qualifications and limitations set forth therein, as if such
letter were addressed to the Placement Agent;
(vii) the
Company’s wire instructions, on Company letterhead and executed by the Chief Executive Officer or Chief Financial Officer, which
shall be provided at least two (2) Business Days prior to the Closing Date; and
(viii) a
certificate of the Secretary of State of the State of Delaware dated as of the Closing Date, to the effect that the Company is in good
standing.
(ix) the
Lock-up Agreements.
(b) On
or prior to the Closing Date, each Purchaser shall deliver or cause to be delivered to the Company, the following:
(i) this
Agreement duly executed by such Purchaser;
7
(ii) the
Registration Rights Agreement duly executed by such Purchaser; and
(iii) such
Purchaser’s Subscription Amount.
(c) If
the Closing does not occur within three (3) Business Days after the Closing Date, and the Purchaser has paid the Subscription Amount
prior to the Closing Date, then the Company shall promptly (but not later than one (1) Business Day thereafter) return to the Purchaser
the Subscription Amount, and any book-entries for the Shares shall be deemed repurchased and cancelled; provided that, unless this Agreement
has been terminated pursuant to Section 5.1 hereof, such return of the Subscription Amount shall not terminate this Agreement.
2.3 Closing
Conditions
(a) The
obligation of the Company to consummate the Closing shall be subject to the satisfaction or valid waiver in writing by the Company of
the additional conditions that, on the Closing Date:
(i) the
representations and warranties of the Purchaser contained herein shall be true and correct as of the Closing Date as if made as of the
Closing Date (unless such representation or warranty was made as of a specific date, in which case such representation and warranty shall
be true and correct as of such date);
(ii) all
obligations, covenants and agreements to be performed or complied with by each such Purchaser on or prior to the Closing shall have been
performed or complied with by it in all material respects; and
(iii) in
the case of the Closing, the Purchaser shall have delivered the items set forth in Section 2.2(b) of this Agreement.
(b) The
respective obligations of the Purchasers to consummate the Closing shall be subject to the satisfaction or valid waiver in writing by
each Purchaser solely as to such Purchaser of the additional conditions that, on the Closing Date:
(i) the
representations and warranties of the Company contained herein shall be true and correct in all material respects, except for those representations
and warranties qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects, as of the date of
this Agreement and as of the Closing Date as though made on and as of such date, except to the extent any such representation or warranty
expressly speaks as of an earlier date, in which case such representation or warranty shall be true and correct in all material respects
as of such earlier date, except for those representations and warranties qualified by materiality or Material Adverse Effect, which shall
be true and correct in all respects as of such earlier date;
(ii) all
obligations, covenants and agreements to be performed or complied with by the Company on or prior to the Closing shall have been performed
or complied with by it in all material respects;
8
(iii) the
Company shall not have entered into any side letter agreement or similar agreement or understanding (written or oral) with any other
Purchaser or any other investor or potential investor in connection with such other Purchaser’s, investor’s or potential
investor’s direct or indirect investment in the Company, in each case, providing terms with respect to such investment that are
materially more favorable than those provided in the Transaction Documents, other than the differences in the Per Share Purchase Price
and Purchaser-specific provisions relating to regulatory, tax, ERISA, confidentiality, information rights, administrative or similar
non-economic matters;
(iv) the
Company shall have filed with Nasdaq a Listing of Additional Shares notice form for the listing of the Shares and shall not have received
any objection to such notice from Nasdaq;
(v) no
stop order or suspension of trading shall have been imposed by Nasdaq, the SEC or any other governmental or regulatory body with respect
to public trading in the Common Stock;
(vi) in
the case of the Closing, the delivery by the Company of the items set forth in Section 2.2(a) of this Agreement;
(vii) no
Material Adverse Effect shall have occurred since the date hereof;
(viii) from
the date hereof to the Closing Date, trading in the Common Stock shall not have been suspended by the Commission or the Trading Market,
and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg L.P. shall not have been suspended
or limited, or minimum prices shall not have been established on securities whose trades are reported by such service, or on any Trading
Market, nor shall a banking moratorium have been declared either by the United States or New York State authorities;
(ix) no
governmental authority shall have issued any order, decree or ruling, and no law shall be in effect, enjoining, restraining or otherwise
prohibiting any of the transactions contemplated hereby; and
(x) the
Closing of the purchase of Shares by each Purchaser shall occur substantially concurrently, provided that a failure by any Purchaser
to provide the deliverables set forth in Section 2.2(b) or satisfy the requirements in Section 2.3(a) shall
not affect the timing of the Closing in respect of any other Purchaser.
9
ARTICLE 3
REPRESENTATIONS
AND WARRANTIES
3.1 Representations
and Warranties of the Company. The Company hereby represents and warrants to each Purchaser that the following representations
and warranties are true and complete as of the date hereof and as of the Closing Date (other than representations and warranties which
address matters only as of a certain date, which shall be true and correct as written as of such certain date):
(a) The
Company (i) is validly existing and in good standing under the laws of the jurisdiction of its incorporation, (ii) has the
requisite power and authority to own, lease and operate its properties, to carry on its business as it is now being conducted and to
enter into and perform its obligations under this Agreement and the other Transaction Documents, and (iii) is duly licensed or qualified
to conduct its business and, if applicable, is in good standing under the laws of each jurisdiction (other than its jurisdiction of incorporation)
in which the conduct of its business or the ownership of its properties or assets requires such license or qualification, except, with
respect to the foregoing clause (iii), where the failure to be so licensed, qualified or in good standing would not cause a Material
Adverse Effect. Each Subsidiary of the Company (i) is a corporation, limited liability company or other entity validly existing
and in good standing under the laws of the jurisdiction of its incorporation or formation, (ii) has the requisite power and authority
to own, lease and operate its properties and to carry on its business as it is now being conducted, and (iii) is duly licensed or
qualified to conduct its business and, if applicable, is in good standing under the laws of each jurisdiction (other than its jurisdiction
of incorporation or formation) in which the conduct of its business or the ownership of its properties or assets requires such license
or qualification, except, with respect to the foregoing clause (iii), where the failure to be so licensed, qualified or in good standing
would not cause a Material Adverse Effect. Neither the Company nor any of its Subsidiaries is in violation of any provision of its Organizational
Documents in any material respect.
(b) The
execution and delivery of this Agreement and each of the other Transaction Documents by the Company and the consummation by the Company
of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Company and
no further action is required by the Company, its Board of Directors, or its stockholders in connection herewith or therewith. This Agreement
and each other Transaction Document to which the Company is a party has been (or upon delivery will have been) duly executed by the Company
and, when duly executed by the other parties thereto and delivered in accordance with the terms hereof and thereof, will constitute the
valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except (i) as limited
by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application
affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by
applicable law.
(c) The
execution, delivery and performance by the Company of this Agreement and the other Transaction Documents to which it is a party, the
issuance of the Shares and the consummation by the Company of the transactions contemplated hereby and thereby do not and will not (i) conflict
with or violate any material provision of the Company’s certificate of incorporation or bylaws, or (ii) conflict with, or
constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of
any Lien upon any of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment,
anti-dilution or similar adjustments, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement,
credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) to which the Company or any Subsidiary
is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, (each a “Contract”)
or (iii) assuming the accuracy of the representations and warranties of each Purchaser set forth in Section 3.2 of this
Agreement, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction
of any court or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities laws and
regulations), or by which any property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses
(ii) and (iii), such as would not cause a Material Adverse Effect.
10
(d) Assuming
the accuracy of the representations and warranties of each Purchaser set forth in Section 3.2 of this Agreement, the Company
is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with,
any court or other federal, state, local or other governmental authority, self-regulatory organization or other person in connection
with the execution, delivery and performance of this Agreement or the other Transaction Documents (including, without limitation, the
issuance of the Shares), other than (i) filings required by applicable state securities laws, (ii) the filing of the Registration
Statement pursuant to the Registration Rights Agreement, (iii) filings required by the Commission, (iv) filings required by
the Trading Market, and (v) those consents, waivers, authorizations, orders, notices, filings or registrations the failure of which
to obtain, give or make would not have a Material Adverse Effect.
(e) The
Shares are duly authorized and, when issued and paid for in accordance with this Agreement, will be duly and validly issued, fully paid
and nonassessable, free and clear of all Liens imposed by the Company, except for restrictions on transfer imposed by applicable securities
laws.
(f) Neither
the Company nor any of its Subsidiaries has any liabilities of any nature (whether accrued, absolute, contingent or otherwise) that would
be required under GAAP, to be reflected on a consolidated balance sheet of the Company (including the notes thereto) except liabilities
(i) reflected or reserved against in the consolidated balance sheet (or the notes thereto) of the Company and its Subsidiaries as
of June 30, 2026 (the “Balance Sheet Date”) included in the SEC Reports, (ii) incurred after the Balance Sheet
Date in the ordinary course of business and, in any case, do not arise from any material breach of a Contract, (iii) expressly contemplated
by this Agreement or otherwise incurred in connection with the transactions contemplated hereby, (iv) that have been discharged
or paid prior to the date hereof, (v) as otherwise disclosed in the Company’s quarterly report on Form 10-Q for the quarter
ended June 30, 2026 or in SEC Reports filed or furnished after the filing of such Form 10-Q and prior to the date hereof or
(vi) as would not, individually or in the aggregate, have had or reasonably be expected to have, a Material Adverse Effect.
(g) Except
as disclosed in the SEC Reports or as otherwise would not, singly or in the aggregate, reasonably be expected to result in a Material
Adverse Effect, there is no action, suit, proceeding, inquiry or investigation before or brought by any Governmental Entity now pending
or, to the knowledge of the Company, threatened, against or affecting the Company or any of its Subsidiaries (collectively, an “Action”),
which would adversely affect its properties or assets, the consummation of the transactions contemplated in this Agreement or the performance
by the Company of its obligations hereunder, or the legality, validity or enforceability of the Transaction Documents; and the aggregate
of all pending legal or governmental actions, suits, inquiries, investigations or proceedings to which the Company or any of its Subsidiaries
is a party or of which any of their respective properties or assets is the subject which are not described in the SEC Reports, including
ordinary routine litigation incidental to the business, would not, singly or in the aggregate, reasonably be expected to result in a
Material Adverse Effect. The Commission has not issued any stop order or other order suspending the effectiveness of any registration
statement filed by the Company under the Exchange Act or the Securities Act.
11
(h) Assuming
the accuracy of each Purchaser’s representations and warranties set forth in Section 3.2 of this Agreement, (i) no
registration under the Securities Act or any state securities (or Blue Sky) laws is required for the offer and sale of the Shares by
the Company to such Purchaser and (ii) no consent, approval, order or authorization of, or registration, qualification, designation,
declaration or filing with, any federal, state, local or other governmental authority, self-regulatory organization or other person is
required on the part of the Company in connection with the consummation of the transactions contemplated by this Agreement (including,
without limitation, the issuance of the Shares), except for filings pursuant to the Exchange Act, Regulation D of the Securities Act
and applicable state securities laws and any such filings required by the applicable Trading Market.
(i) Neither
the Company nor any person acting on its behalf has engaged in any form of general solicitation or general advertising (within the meaning
of Regulation D) in connection with any offer or sale of the Shares. The Shares 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. Neither the Company nor any person
acting on the Company’s behalf has, directly or indirectly, at any time within the past six (6) months, made any offer or
sale of any security or solicitation of any offer to buy any security under circumstances that would cause the offering of the Shares
pursuant to this Agreement to be integrated with prior offerings by the Company for purposes of the Securities Act or any applicable
stockholder approval provisions. Neither the Company nor any person acting on the Company’s behalf has offered or sold any securities,
or has taken any other action, which would reasonably be expected to subject the offer, issuance or sale of the Shares, as contemplated
hereby, to the registration provisions of the Securities Act.
(j) No
labor disturbance or dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of the Company,
which would reasonably be expected to cause a Material Adverse Effect.
(k) The
operations of the Company and its Subsidiaries are and have been conducted at all times in compliance with applicable financial record-keeping
and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, applicable money laundering statutes
and applicable rules and regulations thereunder (collectively, the “Money Laundering Laws”), and no action, suit
or proceeding by or before any Governmental Entity involving the Company or any of its Subsidiaries with respect to any Money Laundering
Laws is pending or, to the Company’s knowledge, threatened.
12
(l) Except
as would not cause a Material Adverse Effect, the Company is in all material respects in compliance with applicable provisions of the
Sarbanes-Oxley Act of 2002, as amended, and the rules and regulations thereunder.
(m) The
Common Stock is eligible for clearing through The Depository Trust Company (“DTC”), through its Deposit/Withdrawal
At Custodian system, and the Company is eligible and participating in the Direct Registration System of DTC with respect to the Common
Stock. The Company’s Transfer Agent is a participant in DTC’s Fast Automated Securities Transfer Program.
(n) The
Company is solely responsible for the payment of any fees, costs, expenses and commissions of the Placement Agent.
(o) As
of their respective filing dates, or, if amended, as of the date of such amendment, which shall be deemed to supersede such original
filing, all reports, schedules, forms, statements and other documents required to be filed by the Company under the Securities Act and
the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two (2) years preceding
the date hereof (or such shorter period as the Company was required by law or regulation to file such material) (the foregoing materials,
including the exhibits thereto and documents incorporated by reference therein, being collectively referred to herein as the “SEC
Reports”) complied in all material respects with the applicable requirements of the Securities Act and the Exchange Act, and
the rules and regulations of the Commission promulgated thereunder, and none of the SEC Reports, when filed, or, if amended, as
of the date of such amendment, which shall be deemed to supersede such original filing, 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. As of the date hereof, there are no material outstanding or unresolved
comments in comment letters received by the Company from the staff of the Division of Corporation Finance of the Commission with respect
to any of the SEC Reports.
(p) The
financial statements of the Company included in the SEC Reports comply in all material respects with applicable accounting requirements
and the rules and regulations of the Commission with respect thereto as in effect at the time of filing, or, if amended, as of the
date of such amendment, which shall be deemed to supersede such original filing, and fairly present in all material respects the financial
position of the Company 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. Notwithstanding the foregoing, this representation and warranty
shall not apply to any statement or information in the SEC Reports that relates or arises from any statement or information in the SEC
Reports that relates to changes to historical accounting policies of the Company in connection with any order, directive, guideline,
comment or recommendation from the Commission or the Company’s auditor or accountant that is applicable to the Company (collectively,
the “SEC Guidance”), nor shall any correction, amendment, revision or restatement of the Company’s financial
statements due wholly or in part to the SEC Guidance or any other accounting matters, nor any other effects that relate to or arise out
of, or are in connection with or in response to, any of the foregoing or any changes in accounting or disclosure related thereto, be
deemed to be a breach of any representation or warranty by the Company or material noncompliance for purposes of this Agreement or the
other Transaction Documents.
13
(q) The
authorized, issued and outstanding shares of capital stock of the Company are as set forth in the SEC Reports (except for subsequent
issuances, if any, pursuant to this Agreement, pursuant to reservations, agreements or employee benefit plans referred to in the SEC
Reports or pursuant to the exercise of convertible securities or options referred to in the SEC Reports). The outstanding shares of capital
stock or other equity interests of the Company have been duly authorized and validly issued and are fully paid and non-assessable. None
of the outstanding shares of capital stock or other equity interests of the Company were issued in violation of any preemptive or other
similar rights of any securityholder of the Company. No Person has any right of first refusal, preemptive right, right of participation,
or any similar right to participate in the transactions contemplated by the Transaction Documents that has not been waived. Except as
disclosed in the SEC Reports, there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character
whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person
any right to subscribe for or acquire, any shares of Common Stock, or contracts, commitments, understandings or arrangements by which
the Company is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents. Except as disclosed in the
SEC Reports, the issuance and sale of the Shares will not obligate the Company to issue shares of Common Stock or other securities to
any Person. Except as disclosed in the SEC Reports, there are no outstanding securities or instruments of the Company with any provision
that adjusts the exercise, conversion, exchange or reset price of such security or instrument upon an issuance of securities by the Company.
Except as disclosed in the SEC Reports, there are no outstanding securities or instruments of the Company that contain any redemption
or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company is or may become
bound to redeem a security of the Company. Except as set forth above and as set forth in the SEC Reports, there are no outstanding (a) shares,
equity interests or voting securities of the Company, (b) securities of the Company convertible into or exchangeable for shares
or other equity interests or voting securities of the Company, (c) options, warrants or other rights (including preemptive rights)
or agreements, arrangements or commitments of any character, whether or not contingent, of the Company to subscribe for, purchase or
acquire from any individual, entity or other person, and no obligation of the Company to issue, any shares of the Company, or any other
equity interests or voting securities in the Company or any securities convertible into or exchangeable or exercisable for such shares
or other equity interests or voting securities, (d) equity equivalents or other similar rights of or with respect to the Company,
or (e) obligations of the Company to repurchase, redeem, or otherwise acquire any of the foregoing securities, shares, options,
equity equivalents, interests or rights. Except as set forth in the SEC Reports, there are no stockholder agreements, voting trusts or
other agreements or understandings to which the Company is a party or by which it is bound relating to the voting of any Common Stock
or other equity interests in the Company.
(r) The
Company is in compliance with applicable Nasdaq continued listing requirements. There are no proceedings pending or, to the Company’s
knowledge, threatened against the Company relating to the continued listing of the Common Stock on Nasdaq and the Company has not received
any notice of, nor is there any reasonable basis for, the delisting of the Common Stock from Nasdaq.
14
(s) The
Company is not an “investment company” within the meaning of the Investment Company Act of 1940, as amended.
(t) The
Company and its Subsidiaries (i) are in compliance with any and all applicable federal, state, local and foreign laws, rules, regulations,
decisions and orders relating to the protection of human health and safety, the environment or hazardous or toxic substances or wastes,
pollutants or contaminants (collectively, “Environmental Laws”); (ii) have received and are in compliance with
all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses
as described in the SEC Reports; and (iii) have not received notice of any actual or potential liability for the investigation or
remediation of any disposal or release of hazardous or toxic substances or wastes, pollutants or contaminants, except, in the case of
any of clauses (i), (ii) or (iii) above, for any such failure to comply or failure to receive required permits, licenses, other
approvals or liability as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
(u) The
Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal, state, local or
foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Reports, except where the failure
to possess such permits could not reasonably be expected to result in a Material Adverse Effect (“Material Permits”),
and, to the Company’s knowledge, neither the Company nor any Subsidiary has received any notice of proceedings relating to the
revocation or modification of any Material Permit.
(v) With
respect to the Company’s business practices:
(i) None
of the Company, any of its Subsidiaries nor, to the knowledge of the Company, any director, officer, agent, employee, affiliate or other
person acting on behalf of the Company or its Subsidiaries is aware of or has taken any action, directly or indirectly, that would result
in a material violation by such persons of the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations
thereunder (the “FCPA”), including, without limitation, making use of the mails or any means or instrumentality of
interstate commerce corruptly in furtherance of an offer, payment, promise to pay or authorization of the payment of any money, or other
property, gift, promise to give, or authorization of the giving of anything of value to any “foreign official” (as such term
is defined in the FCPA) or any foreign political party or official thereof or any candidate for foreign political office, in contravention
of the FCPA. Each of the Company and, to the knowledge of the Company, its affiliates has conducted its business in material compliance
with the FCPA and has instituted and maintained and will continue to maintain policies and procedures designed to ensure, and which are
reasonably expected to continue to ensure, continued compliance with all applicable anti-bribery and anti-corruption laws. Neither the
Company nor any of its Subsidiaries or, to the knowledge of the Company, any director, officer, agent, employee, affiliate or other person
acting on behalf of the Company or any of its Subsidiaries has (i) violated or is in violation of or committed an offense under
any provision of the Bribery Act 2010 of the United Kingdom or any other applicable anti-bribery or anti-corruption law or (ii) made
or taken an act in furtherance of an offer, payment, promise, or authorization of the direct or indirect payment of any money benefit
to any foreign or domestic government official or employee, including of any government-owned or controlled entity or of a public international
organization, or any person acting in an official capacity for or on behalf of any of the foregoing, or any foreign political party or
official thereof or any candidate for foreign political office, in contravention of any applicable anti-bribery or anti-corruption law.
Neither the Company nor its Subsidiaries will use, directly or knowingly indirectly, the proceeds from the sale of Shares in furtherance
of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any person in
violation of any applicable anti-bribery and anti-corruption laws.
15
(ii) None
of the Company or any of its Subsidiaries nor, to the knowledge of the Company, any director, officer, agent, employee, affiliate or
representative of the Company or any of its Subsidiaries is a Person, or is owned or controlled by one or more Persons, (i) currently
the subject or target of any sanctions administered or enforced by the United States Government, including, without limitation, the U.S.
Department of the Treasury’s Office of Foreign Assets Control (“OFAC”), the United Nations Security Council,
the European Union, His Majesty’s Treasury, or other relevant sanctions authority (collectively, “Sanctions”),
or (ii) located, organized or resident in a country or territory that is the subject of Sanctions, including, without limitation,
Cuba, Iran, North Korea, Syria, the Crimea Region, the so-called Donetsk People’s Republic, the so-called Luhansk People’s
Republic and the non-government controlled areas of Zaporizhzhia and Kherson (each, a “Sanctioned Territory”); and
the Company will not directly or, to the knowledge of the Company, indirectly use the proceeds of the sale of the Shares, or lend, contribute
or otherwise make available such proceeds to any Subsidiaries, joint venture partners or other Person, to fund or facilitate any activities
of or business with any Person, or in any country or territory, that, at the time of such funding or facilitation, is the subject of
Sanctions or a Sanctioned Territory or in any other manner that will result in a violation by any Person (including any Person participating
in the transaction, whether as underwriter, advisor, investor or otherwise) of Sanctions.
(w) Except
as would not, singly or in the aggregate, reasonably be expected to result in a Material Adverse Effect, (i) each of the Company
and its Subsidiaries own or possess, or can acquire on reasonable terms, adequate patents, patent rights, licenses, inventions, copyrights,
data, software, know-how (including trade secrets and other unpatented and/or unpatentable proprietary or confidential information, systems
or procedures), trademarks, service marks, trade names or other intellectual property (collectively, “Intellectual Property”)
necessary to carry on the business now operated by them and proposed to be operated by them, (ii) each of the Company and its Subsidiaries,
and to the knowledge of the Company, any counterparties thereto are not in breach of any license agreements to which the Company or its
Subsidiaries is a party, (iii) the operation of the business of the Company does not infringe, misappropriate or otherwise violate
any rights in Intellectual Property of any third party and (iv) neither the Company nor any of its Subsidiaries has received any
notice or is otherwise aware of any infringement of or conflict with asserted rights of others with respect to any Intellectual Property
or of any facts or circumstances which would render any Intellectual Property invalid or inadequate to protect the interest of the Company
or any of its Subsidiaries therein. The Company has taken reasonable steps in accordance with normal industry practice to maintain the
confidentiality of all Intellectual Property of the Company the value of which to the Company is contingent upon maintaining the confidentiality
thereof. Except as would not, singly or in the aggregate, reasonably be expected to result in a Material Adverse Effect, (i) no
such Intellectual Property has been disclosed other than to employees, representatives, and agents of the Company, all of whom are bound
by written confidentiality agreements; (ii) no present or former employee, officer, or director of the Company, or agent or outside
contractor or consultant of the Company, holds any right, title or interest, directly or indirectly, in whole or in part, in or to any
Intellectual Property owned, purported to be owned, or licensed by the Company; and (iii) each Company employee involved with the
development of Intellectual Property has entered into a work-for-hire or invention assignment agreement with the Company.
16
(x) The
Company and each of its Subsidiaries carry, or are covered by, insurance in such amounts and covering such risks as the Company and each
of its Subsidiaries reasonably believe are adequate for the conduct of their properties and as is customary for companies engaged in
similar businesses in similar industries. The Company does not have any reason to believe that it will not be able to renew its existing
insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue
its business (without an increase in cost of such insurance coverage that would cause a Material Adverse Effect).
(y) Except
as would not, singly or in the aggregate, reasonably be expected to result in a Material Adverse Effect, (i) each of the Company
and its Subsidiaries has good and marketable title to all real property owned by them and good title to all other properties owned by
them, in each case, free and clear of all mortgages, pledges, liens, security interests, claims, restrictions or encumbrances of any
kind except for liens securing disclosed indebtedness, taxes not yet due, and ordinary-course encumbrances; (ii) all of the leases
under which the Company or any of its Subsidiaries holds properties described in the SEC Reports, are in full force and effect, and (iii) neither
the Company nor any of its Subsidiaries has received any notice of any claim of any sort that has been asserted by anyone adverse to
the rights of any of the Company or any of its Subsidiaries under any of the leases or subleases mentioned above, or affecting or questioning
the rights of the Company or any of its Subsidiaries to the continued possession of the leased or subleased premises under any such lease
or sublease.
(z) To
the Company’s knowledge, none of the Company’s stockholders, officers or directors or any family member or affiliate of any
of the foregoing, has either directly or indirectly an interest in, or is a party to, any transaction that would be required to be disclosed
as a related party transaction pursuant to Item 404 of Regulation S-K promulgated under the Securities Act that is not so disclosed.
(aa) Other
than the Placement Agent’s fees, no brokerage or finder’s fees or commissions are or will be payable by the Company to any
broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions
contemplated by the Transaction Documents.
(bb) Except
as (i) disclosed in the SEC Reports, (ii) have been waived and (iii) as provided for in the Company’s Registration
Rights Agreement with the Purchasers of even date herewith, no Person has any right to cause the Company to effect the registration under
the Securities Act of any securities of the Company.
17
(cc) Except
for matters that would not, individually or in the aggregate, cause a Material Adverse Effect, the Company and its Subsidiaries each
(i) has made or filed all applicable income and franchise tax returns, reports and declarations required by any jurisdiction to
which it is subject, (ii) has paid all taxes and other governmental assessments and charges that are material in amount, shown or
determined to be due on such returns, reports and declarations, (iii) has set aside on its books provision reasonably adequate for
the payment of all material taxes for periods subsequent to the periods to which such returns, reports or declarations apply and (iv) has
no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company
or of any Subsidiary know of no basis for any such claim. The Company is classified as a Subchapter C corporation for U.S. federal tax
purposes.
(dd) There
is and has been no failure on the part of the Company’s directors or officers, in their capacities as such, to comply in all material
respects with any applicable provisions of the Sarbanes-Oxley Act and the rules and regulations promulgated thereunder. Each of
the principal executive officer and the principal financial officer of the Company (or each former principal executive officer of the
Company and each former principal financial officer of the Company as applicable) has made all certifications required by Sections 302
and 906 of the Sarbanes-Oxley Act with respect to all reports, schedules, forms, statements and other documents required to be filed
by it or furnished by it to the Commission. For purposes of the preceding sentence, “principal executive officer” and “principal
financial officer” shall have the meanings given to such terms in the Sarbanes-Oxley Act.
(ee) The
Company’s accounting firm is UHY LLP. To the knowledge and belief of the Company, such accounting firm is a registered public accounting
firm as required by the Exchange Act.
(ff) The
Company and each of its Subsidiaries maintain a system of internal accounting controls designed to provide reasonable assurance that
(i) transactions are executed in accordance with management’s general or specific authorizations; (ii) transactions are
recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to
maintain asset accountability; (iii) access to assets is permitted only in accordance with management’s general or specific
authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and
appropriate action is taken with respect to any differences. Since the end of the Company’s most recent audited fiscal year, and
except as disclosed in the SEC Reports, there has been (i) no material weakness in the Company’s internal control over financial
reporting (whether or not remediated) and (ii) no change in the Company’s internal control over financial reporting that has
materially adversely affected, or is reasonably likely to materially adversely affect, the Company’s internal control over financial
reporting.
(gg) The
Company acknowledges and agrees that each of the Purchasers is acting solely in the capacity of an arm’s length purchaser with
respect to the Transaction Documents and the transactions contemplated thereby. The Company further acknowledges that no Purchaser is
acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to the Transaction Documents and
the transactions contemplated thereby and any advice given by any Purchaser or any of its representatives or agents in connection with
the Transaction Documents and the transactions contemplated thereby is merely incidental to the Purchasers’ purchase of the Shares.
The Company further represents to each Purchaser that the Company’s decision to enter into this Agreement and the other Transaction
Documents has been based solely on the independent evaluation of the transactions contemplated hereby by the Company and its representatives.
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(hh) Anything
in this Agreement or elsewhere herein to the contrary notwithstanding, it is understood and acknowledged by the Company that: (i) none
of the Purchasers has been asked by the Company to agree, nor has any Purchaser agreed, to desist from purchasing or selling, long and/or
short, securities of the Company, or “derivative” securities based on securities issued by the Company or to hold the Shares
for any specified term; (ii) past or future open market or other transactions by any Purchaser, specifically including, without
limitation, Short Sales or “derivative” transactions, before or after the closing of this or future private placement transactions,
may negatively impact the market price of the Company’s publicly-traded securities; (iii) any Purchaser, and counter-parties
in “derivative” transactions to which any such Purchaser is a party, directly or indirectly, presently may have a “short”
position in the Common Stock, and (iv) each Purchaser shall not be deemed to have any affiliation with or control over any arm’s
length counter-party in any “derivative” transaction. The Company further understands and acknowledges that (y) one
or more Purchasers may engage in hedging activities at various times during the period that the Shares are outstanding, and (z) such
hedging activities (if any) would reduce the value of the Purchasers’ equity interests in the Company at and after the time that
the hedging activities are being conducted. The Company acknowledges that such aforementioned hedging activities do not constitute a
breach of any of the Transaction Documents.
(ii) The
Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly, any action designed to
cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale
of any of the Shares, (ii) sold, bid for, purchased, or, paid any compensation for soliciting purchases of, any of the Shares, or
(iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities of the Company.
(jj) Except
as would not, singly or in the aggregate, reasonably be expected to result in a Material Adverse Effect, (i) there has been no security
breach or incident, unauthorized access or disclosure, or other compromise of, or relating to the Company’s or any of its Subsidiaries’
information technology and computer systems, networks, hardware, software, data and databases (including the data and information of
their respective customers, employees, suppliers, vendors and any third party data maintained, processed or stored by the Company or
any of its Subsidiaries, and any such data processed or stored by third parties on behalf of the Company or any of its Subsidiaries),
equipment or technology (collectively, “IT Systems and Data”); (ii) neither the Company nor its Subsidiaries
has been notified of, and each of them have no knowledge of any event or condition that could result in, any security breach or incident,
unauthorized access or disclosure or other compromise to their IT Systems and Data; (iii) neither the Company, its Subsidiaries,
nor any third party acting at their direction or authorization has paid any perpetrator of any actual or threatened security breach or
incident or cyber-attack, including, but not limited to a ransomware attack or a denial-of-service attack; and (iv) the Company
and its Subsidiaries have implemented appropriate controls, policies, procedures, and technological safeguards to maintain and protect
the integrity, continuous operation, redundancy and security of their IT Systems and Data reasonably consistent with industry standards
and practices, or as required by applicable regulatory standards. The Company and its Subsidiaries are presently, and for the past four
years have been, in material compliance with all applicable laws or statutes and all judgments, orders, rules and regulations of
any court or arbitrator or governmental or regulatory authority, internal policies and contractual obligations relating to the privacy
and security of IT Systems and Data and to the protection of such IT Systems and Data from unauthorized use, access, misappropriation
or modification. Except as would not, singly or in the aggregate, reasonably be expected to result in a Material Adverse Effect, the
Company has not received notice of any complaint, audit, proceeding, investigation, or claim against the Company or any of its Subsidiaries
initiated by any Person alleging that the Company’s or any of its Subsidiaries’ practice is in violation of any privacy or
information security laws; nor is the Company or any of its Subsidiaries subject to any order, judgement, or consent decree due to any
of its privacy or information security practices.
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(kk) The
Company does not have any agreement or understanding with any Purchaser with respect to the transactions contemplated by the Transaction
Documents other than as specified in the Transaction Documents. For the avoidance of doubt, except for the differences in the Per Share
Purchase Price, the Company has not entered into any other securities purchase agreement with any other Person on or around the date
hereof that includes terms and conditions that are materially more advantageous to such Person than to any Purchaser hereunder.
(ll) The
Company hereby acknowledges and agrees that (i) the Placement Agent is acting solely as placement agent in connection with the execution,
delivery and performance of the Transaction Documents and is not acting as underwriter or in any other capacity and is not and shall
not be construed as fiduciary for the Purchasers, the Company or any other person or entity in connection with the execution, delivery
and performance of the Transaction Documents, (ii) the Placement Agent has not made nor will make any representation or warranty,
whether express or implied, of any kind or character and the Placement Agent has not provided any advice or recommendation in connection
with the execution, delivery and performance of the Transaction Documents and (iii) the Placement Agent will not have any responsibility
with respect to (A) any representations, warranties or agreements made by any person or entity under or in connection with the execution,
delivery and performance of the Transaction Documents, or the execution, legality, validity or enforceability (with respect to any person)
thereof, or (B) the business, affairs, financial condition, operations or properties of, or any other matter concerning the Company.
(mm) The
Company has not entered into, and will not enter into, any other agreement or any definitive transaction document, side letter, undertaking
letter, or other similar agreement or instrument with any Purchaser or any other purchaser of Shares in connection with the transactions
contemplated hereby with terms and conditions that provide such Purchaser with materially more favorable economic terms relating directly
to the purchase of Shares than the terms and conditions provided to the other Purchasers; provided that the differences in the Per Share
Purchase Price shall not constitute more favorable economic terms for purposes of this provision; and provided further that purchaser-specific
provisions relating to regulatory, tax, ERISA, confidentiality, information rights, administrative or similar non-economic matters shall
not be deemed more favorable terms.
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3.2 Representations
and Warranties of the Purchasers. Each Purchaser, for itself and for no other Purchaser, hereby represents and warrants as of
the date of this Agreement and as of the Closing Date (or, if such representations and warranties are made with respect to a specified
date, as of such date) to the Company that the following representations and warranties are true and complete as of the date hereof and
as of the Closing Date:
(a) Such
Purchaser is either (i) an individual who has the legal capacity and authority to execute, deliver and perform such Purchaser’s
obligations under the Transaction Documents or (ii) an entity duly incorporated or formed, validly existing and in good standing
under the laws of its jurisdiction of formation or incorporation, with the requisite power and authority to execute, deliver and perform
its obligations under the Transaction Documents. If such Purchaser is an individual, such Purchaser is acquiring the Shares in the capacity
and form of ownership specified on such Purchaser’s signature page. If any consent of a spouse or spousal equivalent is required
under applicable marital, community-property or similar law for such Purchaser to enter into the Transaction Documents or acquire the
Shares, such consent has been validly obtained and remains in effect.
(b) Each
Transaction Document to which it is a party has been duly authorized, executed and delivered by such Purchaser, and assuming the due
authorization, execution and delivery of the same by the Company, each Transaction Document to which such Purchaser is a party shall
constitute the valid and legally binding obligation of such Purchaser, enforceable against such Purchaser 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 the Transaction Documents, including the purchase of the Shares hereunder, the compliance by such
Purchaser with all of the provisions of the Transaction Documents and the consummation of the transactions contemplated herein 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 such Purchaser pursuant to the terms
of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which such Purchaser
is a party or by which such Purchaser is bound or to which any of the property or assets of such Purchaser is subject; (ii) the
Organizational Documents of such Purchaser; 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 such Purchaser 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 such Purchaser’s legal authority
to consummate the transactions contemplated by the Transaction Documents, including the purchase of the Shares.
(d) (i) At
the time such Purchaser was offered the Shares, it was, and as of the date hereof it is, an “accredited investor” (within
the meaning of Rule 501(a) under the Securities Act), satisfying the applicable requirements set forth on Annex A hereto,
(ii) such Purchaser is acquiring the Shares only for its own account and not for the account of others, or if such Purchaser is
subscribing for the Shares as a fiduciary or agent for one or more investor accounts, each owner of such account is an “accredited
investor” (within the meaning of Rule 501(a) under the Securities Act) and such Purchaser has full investment discretion
with respect to each such account and the full power and authority to make the acknowledgements, representations and agreements herein
on behalf of each owner of each such account, and (iii) such Purchaser is not acquiring the Shares with a view to, or for offer
or sale in connection with, any distribution thereof in violation of the Securities Act (and has provided the Company with the requested
information on Annex A following the signature page hereto).
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(e) Such
Purchaser acknowledges and agrees, in reliance on the Company’s representations set forth herein, that the Shares are being offered
in a transaction not involving any public offering within the meaning of the Securities Act and that the Shares have not been registered
under the Securities Act or the securities laws of any state in the United States or other jurisdiction and that the Company is not required
to register the Shares except as set forth in the Registration Rights Agreement. Such Purchaser acknowledges and agrees that the Shares
may not be offered, resold, transferred, pledged or otherwise disposed of by such Purchaser absent an effective registration statement
under the Securities Act, except (i) to the Company or a Subsidiary thereof, (ii) pursuant to an applicable exemption from
the registration requirements of the Securities Act (including, without limitation, a private resale pursuant to so called “Section 4(a)11/2”),
or (iii) an ordinary course pledge such as a broker lien over account property generally, and, in each of clauses (i) through
(iii), in accordance with any applicable securities laws of the states and other jurisdictions of the United States, and that any certificates
or account entries representing the Shares shall contain a restrictive legend to such effect. Such Purchaser acknowledges and agrees
that the Shares will be subject to these securities law transfer restrictions, and as a result of these transfer restrictions, such Purchaser
may not be able to readily offer, resell, transfer, pledge or otherwise dispose of the Shares and may be required to bear the financial
risk of an investment in the Shares for an indefinite period of time. The Purchaser acknowledges and agrees that the Shares will not
be immediately eligible for offer, resale, transfer, pledge or disposition pursuant to Rule 144 promulgated under the Securities
Act. Such Purchaser acknowledges and agrees that it has been advised to consult legal counsel prior to making any offer, resale, pledge
or transfer of any of the Shares. By making the representations in this Section 3.2(e), the Purchaser does not agree to hold
any of the Shares for any minimum or other specific term and reserves the right to assign, transfer or otherwise dispose of any of the
Shares at any time in accordance with or pursuant to a registration statement or an exemption under the Securities Act.
(f) Such
Purchaser understands and agrees that it is purchasing the Shares directly from the Company. Each Purchaser further acknowledges that
there have not been, and such Purchaser hereby agrees that it is not relying on, any representations, warranties, covenants or agreements
made to such Purchaser by the Company, the Placement Agent, or any of their respective Affiliates or any of their control persons, officers,
directors, employees, partners, agents or representatives, or any other person or entity, expressly or by implication, other than those
representations, warranties covenants and agreements of the Company set forth in this Agreement. Such Purchaser agrees that none of (i) any
other Purchaser (including the controlling persons, members, officers, directors, partners, agents, or employees of any such other Purchaser)
and (ii) absent its own negligence, fraud, willful misconduct, breach of agreement or violation of applicable law, the Placement
Agent, their respective Affiliates or any of their respective Affiliates’ control persons, officers, directors or employees shall
be liable to the Purchasers pursuant to this Agreement for any action heretofore or hereafter taken or omitted to be taken by any of
them in connection with the purchase of the Shares.
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(g) In
making its decision to purchase the Shares, such Purchaser has relied solely upon independent investigation made by such Purchaser, the
SEC Reports, and the Company’s representations in Section 3.1 of this Agreement. Such Purchaser acknowledges and agrees
that such Purchaser has received such information as such Purchaser deems necessary in order to make an investment decision with respect
to the Shares, including with respect to the Company, and made its own assessment and is satisfied concerning the relevant financial,
tax and other economic considerations relevant to the Purchaser’s investment in the Shares. Without limiting the generality of
the foregoing, such Purchaser acknowledges that it has been given the opportunity to review the Company’s filings with the Commission.
Such Purchaser represents and agrees that such Purchaser and such Purchaser’s professional advisor(s), if any, have had the full
opportunity to ask such questions, receive such answers and obtain such information as such Purchaser and the Purchaser’s professional
advisor(s), if any, have deemed necessary to make an investment decision with respect to the Shares. Such Purchaser acknowledges and
agrees that none of the Placement Agent or officers, directors, employees or other representatives, legal counsel, financial advisors,
accountants or agents (collectively, “Representatives”) of the Placement Agent has provided such Purchaser with any
information, recommendation or advice with respect to the Shares nor is such information, recommendation or advice necessary or desired.
The Placement Agent has not made nor makes any representation as to the Company or the quality or value of the Shares. In addition, the
Company, the Placement Agent and their respective Affiliates or Representatives may have acquired non-public information with respect
to the Company. In connection with the issuance of the Shares to the Purchaser, the Placement Agent has not acted as financial advisors
or fiduciaries to the Purchaser.
(h) Such
Purchaser became aware of this offering of the Shares solely by means of direct contact between such Purchaser and the Company or its
Affiliates, by means of direct contact between such Purchaser or its Affiliates or by means of contact from the Placement Agent, and
the Shares were offered to such Purchaser solely by direct contact between such Purchaser and the Company or its Affiliates or the Placement
Agent. Such Purchaser did not become aware of this offering of the Shares, nor were the Shares offered to such Purchaser, by any other
means.
(i) Such
Purchaser acknowledges that it is aware that there are substantial risks incident to the purchase and ownership of the Shares, including
those set forth in the SEC Reports. Such Purchaser 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 Shares, and has had an opportunity to seek such accounting, legal, business
and tax advice as it considers necessary. Such Purchaser represents that (a) it 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 has exercised independent judgment in evaluating its participation
in the purchase of the Shares and (b) the purchase and sale of the Shares hereunder meets (i) the exemptions from filing under
FINRA Rule 5123(b)(1)(A), (B) or (G) and (ii) the institutional customer exemption under FINRA Rule 2111(b).
If such Purchaser is an individual, such Purchaser represents that the applicable individual accredited investor category or categories
selected on Annex A are accurate and complete. Such Purchaser’s residence, if an individual, or the office at which its investment
decision with respect to the Shares was made, if an entity, is located at the address set forth on such Purchaser’s signature page.
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(j) Such
Purchaser has adequately analyzed and fully considered the risks of an investment in the Shares and determined that the Shares are a
suitable investment for such Purchaser and that such Purchaser is able at this time and in the foreseeable future to bear the economic
risk of a total loss of such Purchaser’s investment in the Company. Such Purchaser acknowledges specifically that a possibility
of total loss exists.
(k) Such
Purchaser understands and agrees that no federal or state agency has passed upon or endorsed the merits of the offering of the Shares
or made any findings or determination as to the fairness of this investment.
(l) Such
Purchaser is not (i) a person or entity named on the List of Specially Designated Nationals and Blocked Persons administered by
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) a Designated National as defined in the Cuban Assets Control
Regulations, 31 C.F.R. Part 515, or (iii) a non-U.S. shell bank or providing banking services indirectly to a non-U.S. shell
bank. Such Purchaser agrees to provide law enforcement agencies, if requested thereby, such records as required by applicable law, provided
that such Purchaser is permitted to do so under applicable law. If such Purchaser is a financial institution subject to the Bank Secrecy
Act (31 U.S.C. Section 5311 et seq.), as amended by the USA PATRIOT Act of 2001, and its implementing regulations (collectively,
the “BSA/PATRIOT Act”), such Purchaser maintains policies and procedures reasonably designed to comply with applicable
obligations under the BSA/PATRIOT Act. To the extent required under applicable Law, such Purchaser maintains policies and procedures
reasonably designed for the screening of its investors against the OFAC sanctions programs, including the OFAC List. To the extent required
under applicable law, such Purchaser maintains policies and procedures reasonably designed to ensure that the funds held by such Purchaser
and used to purchase the Shares were legally derived.
(m) No
foreign person (as defined in 31 C.F.R. § 800.224) in which the national or subnational governments of a single foreign state have
a substantial interest (as defined in 31 C.F.R. § 800.244) will acquire a substantial interest in the Company as a result of the
purchase and sale of Shares hereunder such that a declaration to the Committee on Foreign Investment in the United States would be mandatory
under 31 C.F.R. § 800.401, and no foreign person will have control (as defined in 31 C.F.R. § 800.208) over the Company from
and after the Closing as a result of the purchase and sale of Shares hereunder.
(n) Such
Purchaser (i) will have sufficient funds to pay the Subscription Amount pursuant to Section 2.2(b)(iii) of this
Agreement and any expenses incurred by such Purchaser in connection with the transactions contemplated by or in connection with the Transaction
Documents, (ii) has the resources and capabilities (financial or otherwise) to perform its obligations under the Transaction Documents,
and (iii) has not incurred any obligation, commitment, restriction or liability of any kind, absolute or contingent, present or
future, which would have a material adverse effect on its legal authority to perform its obligations under the Transaction Documents.
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(o) Such
Purchaser acknowledges that it is not relying upon, and has not relied upon, any statement, representation or warranty made by any person,
firm or corporation (including, without limitation, the Company, the Placement Agent or any of their respective Affiliates or any of
their control persons, officers, directors, employees, agents or representatives), other than the SEC Reports and the representations
and warranties of the Company contained in the Transaction Documents, in making its investment or decision to invest in the Company.
Such Purchaser agrees that none of (i) any other Purchaser or any other Person participating in any other private placement of shares
of Common Stock (including the controlling persons, officers, directors, partners, agents or employees of any such other Person), (ii) the
Company’s Affiliates or any of its respective Affiliates’ control persons, officers, directors, partners, agents, employees
or representatives nor (iii) the Placement Agent, its respective Affiliates or any of their respective control persons, officers,
directors, partners, agents, employees or representatives; in each case, absent its own negligence, fraud, willful misconduct, breach
of agreement or violation of applicable law, shall be liable to such Purchaser pursuant to the Transaction Documents for any action heretofore
or hereafter taken or omitted to be taken by Purchaser in connection with the purchase of the Shares hereunder.
(p) No
broker or finder which has been retained by or is authorized to act on behalf of the Purchaser is entitled to any brokerage or finder’s
fee or commission to be paid by such Purchaser solely in connection with the sale of the Shares to such Purchaser.
(q) [Reserved].
(r) Such
Purchaser acknowledges its obligations under applicable securities laws with respect to the treatment of non-public information relating
to the Company. For the avoidance of doubt, nothing in this Agreement or any Transaction Document, nor the delivery of any information
(including any information that may constitute material non-public information) to Purchaser, shall restrict or be deemed to restrict
any Purchaser’s ability to effect transactions in the securities of any issuer other than the Company.
ARTICLE 4
OTHER
AGREEMENTS OF THE PARTIES
4.1 Transfer
Restrictions.
(a) The
Shares may only be disposed of by a Purchaser in compliance with applicable state and federal securities laws. In connection with any
transfer of Shares by a Purchaser other than (i) pursuant to an effective registration statement or Rule 144, (ii) to
the Company, (iii) to an Affiliate of such Purchaser or (iv) in connection with a pledge as contemplated in Section 4.1(b),
(1) the Company may require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor (in-house
counsel to suffice), the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such
transfer does not require registration of such transferred Shares under the Securities Act, and (2) as a condition of transfer,
any such transferee shall agree in writing to be bound by the terms of this Agreement and, if permitted pursuant to the terms thereof,
the Registration Rights Agreement and shall have the rights and obligations of the Purchasers under this Agreement and the Registration
Rights Agreement, if a party thereto.
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(b) Each
Purchaser agrees to the imprinting or notation, so long as is required by this Section 4.1, of a legend on or with respect
to the Shares in the following form:
THIS SECURITY HAS NOT BEEN REGISTERED
WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION
NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. THIS SECURITY
MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION
THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.
The Company acknowledges
and agrees that, notwithstanding anything to the contrary herein, a Purchaser may from time to time pledge pursuant to a bona fide margin
agreement with a registered broker-dealer or grant a security interest in some or all of the Shares to a financial institution that is
an “accredited investor” as defined in Rule 501(a) under the Securities Act and, if required under the terms of
such arrangement, such Purchaser may transfer, pledge or grant a security interest over Shares to the pledgees or secured parties. Such
a pledge or transfer would not be subject to approval of the Company and no legal opinion of legal counsel of the pledgee, secured party
or pledgor shall be required in connection therewith. Further, no notice shall be required of such pledge. At the appropriate Purchaser’s
expense (as agreed between Company and Purchaser), the Company will execute and deliver such reasonable documentation as a pledgee or
secured party of Shares may reasonably request in connection with a pledge or transfer of the Shares, including, if the Shares are subject
to registration pursuant to the Registration Rights Agreement, the preparation and filing of any required prospectus supplement under
Rule 424(b) under the Securities Act or other applicable provision of the Securities Act to appropriately amend the list of
selling securityholders thereunder.
(c) The
Company shall use its reasonable best efforts to cause the issuance, by book entry, of Shares not containing any legend (including the legend
set forth in Section 4.1(b) hereof), (i) while a registration statement (including the Registration Statement) covering
the resale of such security that is effective under the Securities Act, (ii) following any sale of such Shares pursuant to Rule 144,
(iii) if such Shares are eligible for sale under Rule 144, without the requirement for the Company to be in compliance with
the current public information required under Rule 144 as to such Shares without volume or manner of sale restrictions, or (iv) if
in the opinion of counsel to the Company, such legend is not required under applicable requirements of the Securities Act (including
judicial interpretations and pronouncements issued by the staff of the Commission).
26
The Company agrees that at
and after such time as the Company is obligated to issue Shares without legends pursuant to the first paragraph of this Section 4.1(c),
it will, no later than the earlier of (i) one (2) Trading Day and (ii) the number of Trading Days comprising the Standard
Settlement Period (as defined below) following the delivery by a Purchaser to the Company or the Transfer Agent of a request and such
customary representations, broker documentation and other evidence as may be reasonably requested by the Company, the Company’s
counsel or the Transfer Agent with respect to the book entry position representing the Shares issued with a restrictive legend, instruct
its counsel to issue a legal opinion to the Transfer Agent if required by the Transfer Agent to effect the removal of the legend hereunder
and promptly thereafter, deliver or cause to be delivered to such Purchaser a statement evidencing the book entry position representing
such shares that is free from all restrictive and other legends. The Company may not make any notation on its records or give instructions
to the Transfer Agent that enlarge the restrictions on transfer set forth in this Section 4.1. Shares subject to legend removal
hereunder shall be transmitted by the Transfer Agent to a Purchaser by crediting the account of such Purchaser’s prime broker with
the Depository Trust Company System as directed by such Purchaser. 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 a certificate representing Shares issued with a restrictive legend.
(d) Each
Purchaser agrees with the Company that such Purchaser will sell any Shares pursuant to either the registration requirements of the Securities
Act, including any applicable prospectus delivery requirements, or an exemption therefrom, and that if Shares are sold pursuant to a
Registration Statement, they will be sold in compliance with the plan of distribution set forth therein, and acknowledges that the removal
of the restrictive legend from reasonable evidence of issuance by book entry, representing Shares as set forth in this Section 4.1
is predicated upon the Company’s reliance upon this understanding.
4.2 Acknowledgment
of Dilution. The Company acknowledges that the issuance of the Shares may result in dilution of the outstanding shares of Common
Stock, which dilution may be substantial under certain market conditions. The Company further acknowledges that its obligations under
the Transaction Documents are unconditional and absolute and not subject to any right of set off, counterclaim, delay or reduction, regardless
of the effect of any such dilution; provided, however, that nothing in this Section shall constitute or be deemed to constitute
a waiver by the Company of any right, claim or remedy arising from any Purchaser’s breach of any Transaction Document, fraud, willful
misconduct or violation of applicable law.
4.3 Furnishing
of Information; Public Information. Until the earlier of (i) the time that no Purchaser owns any Shares and (ii) the
date that is three years after the Closing Date, the Company shall use commercially reasonable efforts to maintain the registration of
the Common Stock under Section 12(b) or 12(g) of the Exchange Act and to timely file all reports required to be filed
by the Company after the date hereof pursuant to the Exchange Act even if the Company is not then subject to the reporting requirements
of the Exchange Act.
4.4 Integration.
The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in
Section 2 of the Securities Act) that would be integrated with the offer or sale of the Shares in a manner that would require the
registration under the Securities Act of the sale of the Shares or that would be integrated with the offer or sale of the Shares for
purposes of the rules and regulations of any Trading Market such that it would require stockholder approval prior to the closing
of such other transaction unless stockholder approval is obtained before the closing of such subsequent transaction.
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4.5 Securities
Laws Disclosure; Publicity. The Company shall by 9:00 a.m., New York City time, on the first (1st) Business Day immediately
following the date of this Agreement, or by 9:00 a.m., New York City time, on the date of the Agreement if this Agreement is executed
before 9:00 a.m., New York City time, (a) issue a press release and/or file a Current Report on Form 8-K disclosing the material
terms of the transactions contemplated hereby, which shall have been previously reviewed by counsel for the Placement Agent, and (b) in
respect of any information that is issued in a press release, file a Current Report on Form 8-K (the time of actual filing of such
Current Report on Form 8-K, the “Disclosure Time”), which shall have been previously reviewed by counsel for
the Placement Agent and shall include (i) all material, non-public information that the Company has provided to the Purchaser at
any time prior to the Disclosure Time and (ii) this Agreement as an exhibit thereto. From and after the Disclosure Time, the Company
represents and covenants to the Purchasers and the Placement Agent that, to the extent required by applicable law or the rules of
the Trading Market, the Company shall have publicly disclosed the material terms of the transactions contemplated by the Transaction
Documents and any material non-public information regarding the Company that the Company determines, with the advice of counsel, is required
to be publicly disclosed in connection therewith. Effective upon the Disclosure Time, any confidentiality or similar obligations under
this Agreement or any agreement entered into in connection with the transactions contemplated by the Transaction Documents shall terminate.
The Company and Placement Agent shall consult with each other in issuing any other press releases with respect to the transactions contemplated
hereby, and no Purchaser shall issue any such press release nor otherwise make any such public statement without the prior consent of
the Company and the Placement Agent (such consent not to be unreasonably withheld or delayed), with respect to any press release of any
Purchaser, or without the prior consent of each Purchaser and the Placement Agent (such consent not to be unreasonably withheld or delayed),
with respect to any press release of the Company, except to the extent disclosure is required by applicable law or the rules of
the Trading Market. Notwithstanding anything to the contrary contained herein, without the prior written consent of any applicable Purchaser,
the Company shall not (and shall cause each of its affiliates and representatives not to) disclose the name of such Purchaser or its
investment adviser in any filing, announcement, release or otherwise, except as required by applicable law or the rules of the Trading
Market.
4.6 Stockholder
Rights Plan. No claim will be made or enforced by the Company or, with the consent of the Company, any other Person, that exclusively
as a result of the transactions contemplated by this Agreement any Purchaser is an “Acquiring Person” under any control
share acquisition, business combination, poison pill (including any distribution under a rights agreement) or similar antitakeover plan
or arrangement in effect or hereafter adopted by the Company, or that any Purchaser could be deemed to trigger the provisions of any
such plan or arrangement, by virtue of receiving Shares under the Transaction Documents.
4.7 Non-Public
Information. From and after the Disclosure Time, the Company covenants and agrees that neither it, nor any other Person acting
on its behalf, will provide any Purchaser or its agents or counsel with any information that constitutes, or the Company believes constitutes,
material non-public information, unless prior thereto such Purchaser shall have consented (in writing, with e-mail being sufficient)
to the receipt of such information and agreed with the Company to keep such information confidential. To the extent that the Company
or any of its respective officers, director, agents, employees or Affiliates delivers any material, non-public information to any Purchaser
without such Purchaser’s consent, the Company hereby covenants and agrees that such Purchaser shall not have any duty of trust
or confidentiality to the Company or any of its respective officers, directors, agents, employees or Affiliates, or a duty to the Company
or any of its respective officers, directors, agents, employees or Affiliates not to trade while aware of, such material, non-public
information, provided that such Purchaser shall remain subject to applicable law. To the extent that any notice provided pursuant to
any Transaction Document constitutes, or contains, material, non-public information regarding the Company, the Company shall use its
commercially reasonable efforts to promptly file such notice with the Commission pursuant to a Current Report on Form 8-K.
28
4.8 Use
of Proceeds. The Company shall use the net proceeds from the sale of the Shares hereunder for general corporate and working capital
purposes or for such other purposes as the Company may determine in its exclusive discretion.
4.9 Eligibility.
Each Purchaser shall promptly furnish such reasonable and customary additional information as the Company may reasonably request to confirm
such Purchaser’s eligibility to acquire the Shares, the availability of an exemption from registration, compliance with applicable
securities laws or the accuracy and completeness of information required for any filing relating to the transactions contemplated by
the Transaction Documents.
4.10 Listing
of Shares. The Company shall, as applicable: (i) prior to the Closing Date, in the manner required by the principal Trading
Market, prepare and file with such Trading Market an additional shares listing notification covering the Shares and (ii) use commercially
reasonable efforts to maintain the listing or quotation of the Common Stock on such Trading Market or another Trading Market. The Company
agrees to maintain the eligibility of the Common Stock for electronic transfer through the Depository Trust Company or another established
clearing corporation, including, without limitation, by timely payment of fees to the Depository Trust Company or such other established
clearing corporation in connection with such electronic transfer.
4.11 Subsequent
Equity Sales. From the date hereof until the Standstill Termination Date, the Company shall not, without the prior written consent
of the Purchasers of at least a majority in interest of the Shares then held by the Purchasers, (i) other than in an Exempt Issuance,
issue, enter into any agreement to issue or announce the issuance or proposed issuance of any shares of Common Stock or (ii) file
any registration statement or any amendment or supplement thereto, in each case other than in furtherance of an Exempt Issuance or as
contemplated pursuant to the Registration Rights Agreement.
4.12 Certain
Transactions and Confidentiality. Each Purchaser, severally and not jointly with the other Purchasers, covenants that until such
time as the transactions contemplated by this Agreement are publicly disclosed by the Company pursuant to the initial press release as
described in Section 4.5 or the termination of this Agreement in accordance with Section 5.1, such Purchaser
will maintain the confidentiality of the existence and terms of this transaction. Notwithstanding the foregoing, and notwithstanding
anything contained in this Agreement to the contrary, except to the extent a Purchaser has agreed in writing after the Disclosure Time
to receive and keep confidential material non-public information pursuant to Section 4.7, the Company expressly acknowledges
and agrees that (i) no Purchaser makes any representation, warranty or covenant hereby that it will not engage in effecting transactions
in any securities of the Company after the time that the transactions contemplated by this Agreement are first publicly announced pursuant
to the initial press release as described in Section 4.5, (ii) no Purchaser shall be restricted or prohibited from effecting
any transactions in any securities of the Company in accordance with applicable securities laws from and after the time that the transactions
contemplated by this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.5
and (iii) no Purchaser shall have any duty of confidentiality or duty not to trade in the securities of the Company to the Company
after the issuance of the initial press release as described in Section 4.5. Notwithstanding the foregoing, in the case of
a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such Purchaser’s
assets, the covenant set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made
the investment decision to purchase the Shares covered by this Agreement.
29
4.13 Blue
Sky Filings. The Company shall take such action as the Company shall reasonably determine is necessary in order to obtain an
exemption for, or to qualify the Shares for, sale to the Purchasers at the Closing under applicable securities or “Blue Sky”
laws of the states of the United States.
4.14 Equal
Treatment of Purchasers. No consideration (including any modification of any Transaction Document) shall be offered or paid to
any Person to amend or consent to a waiver or modification of any provision of the Transaction Documents unless the same consideration
is also offered to all Purchasers affected thereby. For clarification purposes, this provision constitutes a separate right granted to
each Purchaser by the Company and negotiated separately by each Purchaser, and is intended for the Company to treat the Purchasers as
a class and shall not in any way be construed as the Purchasers acting in concert or as a group with respect to the purchase, disposition
or voting of Shares or otherwise. Notwithstanding the foregoing, Purchaser-specific provisions relating to regulatory, tax, ERISA, confidentiality,
information rights, administrative or similar non-economic matters shall not be subject to this Section. For the avoidance of doubt,
the differences in the Per Share Purchase Price shall not violate this Section or require that any adjustment or other consideration
be offered to any Purchaser.
4.15 Counsel.
Each Purchaser acknowledges that the Company’s counsel represents only the Company in connection with the transactions contemplated
by the Transaction Documents and has not rendered legal advice to such Purchaser.
ARTICLE 5
MISCELLANEOUS
5.1 Termination.
This Agreement may be terminated by mutual written agreement of a Purchaser as to such Purchaser’s obligations and the Company.
The Company shall provide prompt notice of any such termination to each other Purchaser.
5.2 Fees
and Expenses. Except as expressly set forth in the Transaction Documents or the Engagement Letter, each party shall pay the fees
and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident
to the negotiation, preparation, execution, delivery and performance of this Agreement and the Transaction Documents. The Company shall
pay all Transfer Agent fees (including, without limitation, any fees required for same-day processing of any instruction letter delivered
by the Company and any exercise notice delivered by a Purchaser), stamp taxes and other Taxes and duties levied in connection with the
delivery of any Shares to the Purchasers.
30
5.3 Entire
Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of the
parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, oral or written,
with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.
5.4 Use
of Single Agreement. For ease of administration, this single Agreement is being executed so as to enable each Purchaser identified
on the signature page to enter into an Agreement, severally, but not jointly. The parties agree that (i) this Agreement shall
be treated as if it were a separate agreement with respect to each Purchaser listed on the signature page, as if each Purchaser entity
had executed a separate Agreement naming only itself as Purchaser, and (ii) no Purchaser listed on the signature page shall
have any liability under the Agreement for obligations of any other Purchaser so listed.
5.5 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 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.
5.6 Amendments;
Waivers. No amendment, modification, alteration, or change in any of the terms of this Agreement shall be valid or binding upon
the parties hereto unless made in writing and duly executed by the Company and the Purchasers. No amendment, modification, alteration
or change to Section 3.1, Section 3.2, Section 4.5, Section 4.11, Section 5.3,
Section 5.9 and Section 5.17 can be made without the prior written consent of the Placement Agent. The Company,
on the one hand, and each Purchaser, on the other hand, may by an instrument signed in writing by such parties waive the performance,
compliance or satisfaction by such Purchaser or the Company, respectively, with any term or provision of this Agreement or any condition
hereto to be performed, complied with or satisfied by such Purchaser or the Company, respectively. No waiver of any default with respect
to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any
subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party
to exercise any right hereunder in any manner impair the exercise of any such right.
31
5.7 Headings.
The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any
of the provisions hereof.
5.8 Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and
permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent
of the Purchasers. Prior to the Closing, no Purchaser may assign its rights or obligations under this Agreement without the prior written
consent of the Company; provided that a Purchaser may assign its rights and obligations, without such consent, to an Affiliate or another
investment fund or account managed or advised by the same investment manager if the assignee executes and delivers to the Company a joinder
to this Agreement and the Registration Rights Agreement and makes the representations and warranties set forth in Section 3.2. Following
the Closing, a Purchaser may assign rights that expressly run with transferred Shares to a transferee acquiring such Shares in compliance
with applicable law and the Transaction Documents if such transferee agrees in writing to be bound by the provisions applicable to a
Purchaser. No assignment shall relieve the assigning Purchaser of any liability for obligations arising before the assignment.
5.9 No
Third-Party Beneficiaries. The Placement Agent shall be the express third-party beneficiary of the representations and warranties
of the Company in Section 3.1 hereof and the representations and warranties of the Purchasers in Section 3.2
hereof. Except as otherwise set forth in Section 4.5, Section 4.11, Section 5.3, this Section 5.9,
and Section 5.17, this Agreement is intended for the benefit of the parties hereto and their respective successors and permitted
assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.
5.10 Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall be
governed by and construed and enforced in accordance with the internal laws of the State of New York. Each party agrees that it shall
commence any legal Proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement
and any other Transaction Documents (whether brought against a party hereto or its respective Affiliates, directors, officers, shareholders,
partners, members, employees or agents) exclusively in the state and federal courts sitting in the State of New York. Each party hereby
irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the State of 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 any of the Transaction Documents), 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 Agreement and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to
serve process in any other manner permitted by law.
5.11 Survival.
The representations and warranties contained in Section 3.1 and Section 3.2 shall survive the Closing and the
delivery of the Shares.
32
5.12 Execution.
This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each party and delivered to each other party, it being understood that
the parties need not sign the same counterpart. In the event that any signature is delivered by e-mail delivery of a “.pdf”
format data file (including any electronic signature covered by the U.S. federal ESIGN Act of 2000, Uniform Electronic Transactions Act,
the Electronic Signatures and Records Act or other applicable law, e.g., www.docusign.com), such signature shall create a valid and binding
obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such “.pdf”
signature page were an original thereof.
5.13 Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force
and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts
to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining
terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or
unenforceable.
5.14 Rescission
and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of)
any of the other Transaction Documents, whenever any Purchaser exercises a right, election, demand or option under a Transaction Document
and the Company does not timely perform its related obligations within the periods therein provided, then such Purchaser may rescind
or withdraw, in its sole discretion from time to time upon written notice to the Company, any relevant notice, demand or election in
whole or in part without prejudice to its future actions and rights.
5.15 Replacement
of Shares. If any certificate or instrument evidencing any Shares is mutilated, lost, stolen or destroyed, the Company shall
issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation), or in lieu of
and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company
of such loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances shall also pay any reasonable
third-party costs (including customary indemnity) associated with the issuance of such replacement Shares.
5.16 Remedies.
In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, the Purchasers
and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that monetary damages will
not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the Transaction Documents and
hereby agree to waive and not to assert in any Action for specific performance of any such obligation the defense that a remedy at law
would be adequate.
33
5.17 Exculpation
of the Placement Agent. Each party hereto agrees for the express benefit of the Placement Agent, its affiliates and their representatives
that:
(a) Neither
the Placement Agent nor its affiliates or representatives (i) have any duties or obligations other than those specifically set forth
herein or in the Engagement Letter; (ii) shall be liable for any improper payment made in accordance with the information provided
by the Company; (iii) make any representation or warranty, or have any responsibilities as to the validity, accuracy, value or genuineness
of any information, certificates or documentation delivered by or on behalf of the Company pursuant to this Agreement or the Transaction
Documents or in connection with any of the transactions; or (iv) shall be liable (A) for any action taken, suffered or omitted
by any of them in good faith and reasonably believed to be authorized or within the discretion or rights or powers conferred upon it
by this Agreement or any Transaction Document or (B) for anything which any of them may do or refrain from doing in connection with
this Agreement or any Transaction Document, except for such party’s own fraud, gross negligence, willful misconduct, breach of
agreement, violation of applicable law or bad faith.
(b) The
Placement Agent, its affiliates and their representatives shall be entitled to (i) rely on, and shall be protected in acting upon,
any certificate, instrument, opinion, notice, letter or any other document or security delivered to any of them by or on behalf of the
Company, and (ii) be indemnified by the Company for acting as Placement Agent, hereunder pursuant to the indemnification provisions
set forth in the Engagement Letter.
5.18 Saturdays,
Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required
or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding Business
Day.
5.19 Construction.
The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the Transaction Documents
and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party
shall not be employed in the interpretation of the Transaction Documents or any amendments thereto. In addition, each and every reference
to share prices and shares of Common Stock in any Transaction Document shall be subject to adjustment for reverse and forward stock splits,
stock dividends, stock combinations and other similar transactions of the Common Stock that occur after the date of this Agreement. In
this Agreement, unless the context otherwise requires: (i) whenever required by the context, any pronoun used in this Agreement
shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns, pronouns and verbs shall include
the plural and vice versa; (ii) “including” (and with correlative meaning “include”) means including without
limiting the generality of any description preceding or succeeding such term and shall be deemed in each case to be followed by the words
“without limitation”; and (iii) the words “herein”, “hereto” and “hereby” and other
words of similar import in this Agreement shall be deemed in each case to refer to this Agreement as a whole and not to any particular
portion of this Agreement.
5.20 WAIVER
OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES EACH
KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY
AND EXPRESSLY WAIVE FOREVER TRIAL BY JURY.
34
Independent
Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser hereunder are several and
not joint with the obligations of any other Purchaser hereunder, and no Purchaser shall be responsible or disadvantaged in any way for
the performance, or failure of performance, of the obligations of any other Purchaser hereunder. Nothing contained herein or in any other
agreement or document delivered at any closing, and no action taken by any Purchaser pursuant hereto or thereto, shall be deemed to constitute
the Purchasers as a partnership, an association, a joint venture or any other kind of group or entity, or create a presumption that the
Purchasers are in any way acting in concert or as a group or entity with respect to such obligations or the transactions contemplated
by this Agreement or any other matters, and the Company acknowledges that the Purchasers are not acting in concert or as a group, and
the Company shall not assert any such claim, with respect to such obligations or transactions. Each Purchaser shall be entitled to protect
and enforce its rights, including, without limitation, the rights arising out of this Agreement, and it shall not be necessary for any
other Purchaser to be joined as an additional party in any proceeding for such purpose. The use of a single agreement with respect to
the obligations of the Company was solely in the control of the Company, not the action or decision of any Purchaser, and was done solely
for the convenience of the Company and not because it was required or requested to do so by any Purchaser. It is expressly understood
and agreed that each provision contained in this Agreement is between the Company and each Purchaser, solely, and not between the Company
and the Purchasers collectively and not between and among Purchasers.
5.21 Non-Recourse.
Notwithstanding anything that may be expressed or implied in this Agreement, each party covenants, agrees and acknowledges that no recourse
under this Agreement or any documents or instruments delivered in connection with this Agreement shall be had against any current or
future director, officer, employee, stockholder, general or limited partner, member, affiliate or assignee of any other party, whether
by the enforcement of any assessment or by any legal or equitable proceeding, or by virtue of any statute, regulation or other applicable
law, it being expressly agreed and acknowledged that no personal liability whatsoever shall attach to, be imposed on or otherwise be
incurred by any such person solely by reason of its status as such for any obligation of a party under this Agreement or any documents
or instruments delivered in connection with this Agreement or for any claim based on, in respect of or by reason of such obligations
or their creation; provided that the foregoing shall not limit any claim against a party hereto or any claim based on such person’s
own fraud, willful misconduct, bad faith, breach of agreement or violation of applicable law.
(Signature Pages Follow)
35
IN WITNESS WHEREOF, the parties
hereto have caused this Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.
XBP GLOBAL HOLDINGS, INC.
Address for Notice:
By:
6641 N. Belt Line Road, Suite 100
Name: Andrej Jonovic
Irving, TX 75063
Title: Chief Executive Officer
With a copy to (which shall not constitute notice):
Email:
legalnotices@xbpamericas.com
Baker & Hostetler LLP
45 Rockefeller Plaza
New York, New York 10111
Attention: Thomas P. L’Helias and Erik Mengwall
Email: tlhelias@bakerlaw.com; emengwall@bakerlaw.com
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
IN WITNESS WHEREOF, the undersigned
have caused this Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.
Name of Purchaser: ___________________________
Purchaser type (check one): ¨ Entity ¨ Individual
If Purchaser is an individual:
Signature
of Purchaser:
Form of ownership if individual: ¨ Individual ¨ Joint ¨ Other:
_______________________
If Purchaser is an entity, signature of authorized signatory appears
below.
Signature
of Authorized Signatory:
Name of Authorized Signatory:
Title of Authorized Signatory:
BOTH Individual and Entity Purchasers to complete the below:
Taxpayer Identification Number: ___________________________
Mailing and e-mail address for notices to Purchaser:
Mailing and e-mail address for use by Transfer Agent: (if not same
as address for notice):
Subscription Amount: $___________________________
Per Share Purchase Price: $___________________________
Number of shares of Common Stock: ___________________________
Company insider or related party: ¨ No ¨ Yes
(describe): ___________________________
SCHEDULE A
Name of Purchaser
Subscription
Amount
Per
Share
Purchase Price
Number
of Shares
[●]
$ [●]
$ [●]
[●]
Total
$ [●]
[●]
[●]
ANNEX A
ELIGIBILITY REPRESENTATIONS OF EACH PURCHASER
I. In connection with the issuance of the Shares,
the Purchaser represents and warrants that it comes within one category marked below, and
that for any category marked, it has truthfully set forth, where applicable, the factual
basis or reason the Purchaser comes within that category. This page should be completed
by the Purchaser and constitutes a part of the Securities Purchase Agreement. ALL INFORMATION
IN RESPONSE TO THESE QUESTIONS WILL BE KEPT STRICTLY CONFIDENTIAL (SUBJECT TO DISCLOSURE
AS REQUIRED BY APPLICABLE LAW). The Purchaser agrees to furnish any additional information
that the Company deems necessary in order to verify the answers set forth below. The Purchaser
agrees that he or she will notify the Company at any time on or prior to the issuance of
the Shares in the event that the representations and warranties in this questionnaire shall
cease to be true, accurate and complete.
¨
Category A
The Purchaser
is an individual (not a partnership, corporation, etc.) whose individual net worth, or joint net worth with his or her spouse
or spousal equivalent (as defined in Rule 501(j) under the Securities Act), exclusive of principal residence presently
exceeds $1,000,000.
Explanation. For
purposes of calculating net worth under this Category A, (i) the Purchaser’s primary residence shall not be included as
an asset, (ii) indebtedness that is secured by the Purchaser’s primary residence, up to the estimated fair market value
of the primary residence at the time of the sale of the Shares, shall not be included as a liability, (iii) to the extent that
the indebtedness that is secured by the primary residence is in excess of the fair market value of the primary residence, the excess
amount shall be included as a liability, and (iv) if the amount of outstanding indebtedness that is secured by the primary residence
exceeds the amount outstanding 60 days prior to the execution of this Securities Purchase Agreement, other than as a result of the
acquisition of the primary residence, the amount of such excess shall be included as a liability.
¨
Category B
The Purchaser is an individual
(not a partnership, corporation, etc.) who had an income in excess of $200,000 in each of the two most recent years, or joint
income with his or her spouse or spousal equivalent (as defined in Rule 501(j) under the Securities Act) in excess of $300,000
in each of those years (in each case including foreign income, tax exempt income and full amount of capital gains and losses but
excluding any income of other family members and any unrealized capital appreciation) and has a reasonable expectation of reaching
the same income level in the current year.
¨
Category C
The Purchaser is a director
or executive officer of the Company.
¨
Category D
The Purchaser is a bank;
savings and loan association; insurance company; registered investment company; registered business development company; licensed
small business investment company; a Rural Business Investment Company (as defined in Section 384A of the Consolidated Farm
and Rural Development Act); or employee benefit plan within the meaning of Title 1 of ERISA and (a) the investment decision
is made by a plan fiduciary which is either a bank, savings and loan association, insurance company or registered investment advisor,
or (b) the plan has total assets in excess of $5,000,000 or (c) is a self-directed plan with investment decisions made
solely by persons that are accredited investors. (describe entity)
¨
Category E
The Purchaser is a private
business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940. (describe entity)
¨
Category F
The Purchaser
is either a corporation, partnership, Massachusetts business trust, or nonprofit organization within the meaning of Section 501(c)(3) of
the Internal Revenue Code, in each case not formed for the specific purpose of acquiring the Shares and with total assets in excess
of $5,000,000. (describe entity)
¨
Category G
The Purchaser is a trust
with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the Shares, where the purchase is directed
by a “sophisticated investor” as defined in Rule 506(b)(2)(ii) under the Securities Act.
¨
Category H
The Purchaser is an individual (not a partnership,
corporation, etc.) who holds in good standing one or more of the following certifications, designations and/or credentials:
· Licensed
General Securities Representative (Series 7);
· Licensed
Investment Adviser Representative (Series 65); and/or
· Licensed
Private Securities Offerings Representative (Series 82).
¨
Category I
The Purchaser is an investment
adviser registered pursuant to Section 203 of the Investment Advisers Act of 1940 or registered pursuant to the laws of a state,
or an investment adviser relying on the exemption from registering with the Securities and Exchange Commission under Section 203(l) or
(m) of the Investment Advisers Act of 1940.
¨
Category J
The Purchaser is an entity,
of a type not listed above, not formed for the specific purpose of acquiring the securities, owning “investments” (as
defined in Rule 2a51-1(b) under the Investment Company Act of 1940) in excess of $5,000,000.
¨
Category K
The Purchaser is a “family
office” (as defined in Rule 202(a)(11)(G)-1 under the Investment Advisers Act of 1940), (1) with assets under management
in excess of $5,000,000, (2) that is not formed for the specific purpose of acquiring the securities, and (3) whose prospective
investment is directed by a person who has such knowledge and experience in financial and business matters that such family office
is capable of evaluating the merits and risks of the prospective investment (a “Family Office”).
¨
Category L
The Purchaser is a “family
client” (as defined in Rule 202(a)(11)(G)-1 under the Investment Advisers Act of 1940) of a Family Office whose prospective
investment in the Company is directed by such Family Office pursuant to the clause (3) in the Category above.
¨
Category M
The Purchaser is an entity
(other than a trust) in which all of the equity owners are “accredited investors” within one or more of the above categories.
If relying upon this Category alone, each equity owner must complete a separate copy of this Annex A. (describe entity)
¨
Category N
The Purchaser is not within
any of the categories above and is therefore not an accredited investor.
40
Exhibit A
Form of Lock-up Agreement
LOCK-UP LETTER AGREEMENT
CANTOR FITZGERALD & CO.
110 EAST 59TH STREET
NEW YORK, NEW YORK 10022
ATTN: EQUITY CAPITAL MARKETS
RE: PROPOSED PRIVATE PLACEMENT BY XBP GLOBAL HOLDINGS, INC.
(THE “OFFERING”)
Ladies and Gentlemen:
The undersigned understands
that XBP Global Holdings, Inc., a Delaware corporation (the “Company”), is entering into a Securities Purchase
Agreement dated on or about the date hereof (the “Purchase Agreement”) providing for the sale and issuance to
each of the investors identified on the signature pages thereto (the “Investors”) of shares (the “Shares”)
of common stock, par value $0.0001 per share (the “Common Stock”), of the Company. Capitalized terms used but
not defined herein shall have the respective meanings ascribed to such terms in the Purchase Agreement.
For purposes of this Lock-Up
Letter Agreement, the following terms shall have the meanings set forth below:
“Affiliate”
has the meaning ascribed to it in Rule 405 under Securities Act;
“Change of Control”
means the consummation of any bona fide tender offer, merger, consolidation or other similar transaction, in one transaction or a series
of related transactions, the result of which is that any “person” (as defined in Section 13(d)(3) of the Exchange
Act), or group of persons, becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 of the Exchange Act) of more than 50%
of the voting capital stock of the Company (or the surviving entity);
“Exchange Act”
means the Securities Exchange Act of 1934, as amended; and
“Securities Act”
means the Securities Act of 1933, as amended.
In consideration of the execution
of the Purchase Agreement by the Investors, and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the undersigned hereby irrevocably agrees that, without the prior written consent of Cantor Fitzgerald & Co. (“CF&Co”),
the undersigned will not, directly or indirectly, (1) offer for sale, sell, pledge, or otherwise dispose of (or enter into any transaction
or device that is designed to, or could be expected to, result in the disposition by any person at any time in the future of) any shares
of Common Stock (including, without limitation, shares of Common Stock that may be deemed to be beneficially owned or hereafter acquired
by the undersigned, or with respect to which the undersigned has or hereafter acquires the power of disposition, in accordance with the
rules and regulations of the Securities and Exchange Commission (the “SEC”) and shares of Common Stock
that may be issued upon exercise of any options or warrants) or securities convertible into or exercisable or exchangeable for Common
Stock, (2) enter into any swap or other derivatives transaction that transfers to another, in whole or in part, any of the economic
benefits or risks of ownership of shares of Common Stock, whether any such transaction described in clause (1) or (2) above
is to be settled by delivery of Common Stock or other securities, in cash or otherwise, or (3) publicly disclose the intention to
do any of the foregoing for a period commencing on the date hereof and ending on the earlier of (i) the 30th day that the Company’s
registration statement registering for resale the Common Stock issued under the Purchase Agreement has been declared effective by the
SEC or (ii) the 60th day following the Closing Date (such period, the “Lock-Up Period”).
The foregoing restrictions
are expressly agreed to preclude the undersigned from engaging in any hedging or other transaction which is designed to or which reasonably
could be expected to lead to or result in a sale or disposition of Common Stock or any other securities of the Company even if such Common
Stock or other securities of the Company would be disposed of by someone other than the undersigned, including, without limitation, any
short sale or any purchase, sale or grant of any right (including without limitation any put or call option, forward, swap or any other
derivative transaction or instrument) with respect to any Common Stock, or any other security of the Company that includes, relates to,
or derives any significant part of its value from Common Stock or other securities of the Company.
The foregoing restrictions,
including without limitation the immediately preceding sentence, shall not apply to:
(a) (i) any bona
fide charitable gift or gifts, including, without limitation, to a charitable organization or educational institution, or (ii) bona
fide gifts or other dispositions of shares of any class of the Company’s capital stock, in each case, that are made exclusively
between and among the undersigned or members of the undersigned’s family, or affiliates of the undersigned, including its partners
(if a partnership) or members (if a limited liability company); provided that it shall be a condition to any transfer pursuant
to this clause (a) that (1) the transferee/donee agrees to be bound by the terms of this Lock-Up Letter Agreement (including,
without limitation, the restrictions set forth in the preceding sentence) to the same extent as if the transferee/donee were a party hereto,
(2) any such transfer shall not involve a disposition for value, and (3) each party (donor, donee, transferor or transferee)
shall not be required by law (including without limitation the disclosure requirements of the Securities Act and the Exchange Act) to
make, and shall agree to not voluntarily make, any filing or public announcement of the gift, sale or other disposition prior to the expiration
of the Lock-Up Period;
(b) the vesting of restricted
stock awards of stock units or exercise or settlement of stock options or other equity awards granted pursuant to the Company’s
stock option/incentive plans or awards, provided, that the restrictions shall apply to shares of Common Stock issued upon such
exercise or conversion;
(c) any transfers by
will or intestacy, provided, that (1) any transferee agrees to be bound by the terms of this Lock-Up Letter Agreement (including,
without limitation, the restrictions set forth in the preceding sentence) to the same extent as if the transferee(s) were a party
hereto, (2) any such transfer shall not involve a disposition for value, (3) no public disclosure or filing under the Exchange
Act shall be voluntarily made during the Lock-Up Period and (4) any required filing under the Exchange Act made during the Lock-Up
Period shall clearly indicate in the footnotes thereto that the filing relates to the circumstances described in this clause (c);
(d) any transfers pursuant
to a court order or settlement agreement related to the distribution of assets in connection with the dissolution of a marriage or civil
union, provided, that (1) any transferee agrees to be bound by the terms of this Lock-Up Letter Agreement (including, without
limitation, the restrictions set forth in the preceding sentence) to the same extent as if the transferee(s) were a party hereto,
(2) any such transfer shall not involve a disposition for value, (3) no public disclosure or filing under the Exchange Act shall
be voluntarily made during the Lock-Up Period and (4) any required filing under the Exchange Act made during the Lock-Up Period shall
clearly indicate in the footnotes thereto that the filing relates to the circumstances described in this clause (d), unless otherwise
prohibited by such court order or settlement agreement;
(e) transfers or dispositions
of shares of capital stock of the Company or any securities convertible into, or exercisable or exchangeable for, such capital stock to
any trust or donor advised fund, or other entity formed for estate planning purposes, for the direct or indirect benefit of the undersigned
or the immediate family of the undersigned in a transaction not involving a disposition for value, or, if the undersigned is a trust,
to a trustor or beneficiary of the trust, or, if the undersigned is a corporation, partnership, limited liability company or other business
entity, to another corporation, partnership, limited liability company or other business entity that controls, is controlled by or is
under common control with the undersigned or as part of a disposition, transfer or distribution by the undersigned to partners, limited
partners, stockholders, members or equityholders of the undersigned, provided, in each case, that (1) any transferee agrees
to be bound by the terms of this Lock-Up Letter Agreement (including, without limitation, the restrictions set forth in the preceding
sentence) to the same extent as if the transferee(s) were a party hereto, (2) any such transfer shall not involve a disposition
for value, (3) no public disclosure or filing under the Exchange Act shall be voluntarily made during the Lock-Up Period and (4) any
required filing under the Exchange Act made during the Lock-Up Period shall clearly indicate in the footnotes thereto that the filing
relates to the circumstances described in this clause (e);
(f) the conversion of
shares of preferred stock of the Company, or the conversion, exercise or exchange of any other securities of the Company, into Common
Stock or any other securities of the Company, provided, that such shares of Common Stock or other securities issued upon conversion,
exercise or exchange remain subject to the terms of this Lock-Up Letter Agreement;
(g) any transfers or
commitments to transfer pursuant to a merger, stock sale, recapitalization, consolidation, tender offer or other similar transaction involving
a Change of Control or reverse merger, or any merger, consolidation, acquisition or other business combination transaction in which the
Company is the surviving or continuing entity (each, a “Company Acquisition”), provided, that in the
event that such merger, stock sale, recapitalization, consolidation, tender offer or other such transaction, reverse merger or Company
Acquisition is not completed, such shares of Common Stock or other securities held by the undersigned shall remain subject to the provisions
of this Lock-Up Letter Agreement;
(h) the transfer by the
undersigned of shares of Common Stock or any securities convertible into, exercisable or exchangeable for, Common Stock upon a vesting
or settlement event of the Company’s securities or upon the exercise of options or warrants to purchase the Company’s securities
on a “cashless” or “net exercise” basis, or in a “sell-to-cover” transaction, in each case pursuant
to any equity incentive plan or award of the Company described in the Company’s SEC filings and to the extent permitted by the instruments
representing such options or warrants outstanding as of the date of the Purchase Agreement, provided that (1) the shares received
upon exercise or settlement of the option or warrant are subject to the terms of this Lock-Up Letter Agreement, (2) no public disclosure
or filing under the Exchange Act shall be voluntarily made during the Lock-Up Period and (3) any required filing under the Exchange
Act made during the Lock-Up Period shall clearly indicate in the footnotes thereto that the filing relates to the circumstances described
in this clause (h), including that the securities remain subject to the terms of this Lock-Up Letter Agreement;
(i) the transfer of shares
of Common Stock or securities convertible into, or exercisable or exchangeable for, shares of Common Stock to the Company in connection
with the termination of the undersigned’s employment or services with the Company, provided, that (1) no
public disclosure or filing under the Exchange Act shall be voluntarily made during the Lock-Up Period and (2) any required filing
under the Exchange Act made during the Lock-Up Period shall clearly indicate in the footnotes thereto that the filing relates to the circumstances
described in this clause (i);
(j) sales of shares of
Common Stock purchased by the undersigned on the open market following the date of the Purchase Agreement, provided, that any required
filing under the Exchange Act made during the Lock-Up Period shall clearly indicate in the footnotes thereto that the filing relates to
the circumstances described in this clause (j);
(k) transfers to any
Affiliate of the undersigned, provided, that (1) such transfer is not for value, (2) the Affiliate transferee agrees
in writing, prior to such transfer, to be bound by the terms of this Lock-Up Letter Agreement to the same extent as if the Affiliate were
an original party hereto, and (3) the undersigned provides the Company with at least two (2) business days’ prior written
notice of such transfer, including the identity of the Affiliate transferee and a copy of the executed agreement by which the Affiliate
agrees to be bound by this Lock-Up Letter Agreement; and
(l) transfers that are
approved by the prior written consent of CF&Co.
Notwithstanding the restrictions
imposed by this Lock-Up Letter Agreement, the undersigned may (i) establish or enter into a trading plan pursuant to Rule 10b5-1
under the Exchange Act (a “10b5-1 Trading Plan”) for the transfer of shares of Common Stock during the Lock-Up
Period, provided that (A) such plan does not provide for any transfers of shares of Common Stock during the Lock-Up Period, (B) no
filing under the Exchange Act or other public announcement shall be required or voluntarily made by the undersigned or any other person
in connection with the establishment of such plan during the Lock-Up Period, except for disclosures required to be included in an Annual
Report on Form 10-K or a Quarterly Report on Form 10-Q, (C) any such plan complies in all material respects with Rule 10b5-1
as amended by the SEC's final rulemaking adopted December 14, 2022 (Release No. 33-11138; 34-96492), effective February 27,
2023 (the “2022 Amendments”), including, without limitation, (x) the applicable cooling-off period requirements
(which, in the case of any director or officer of the Company (as defined in Rule 16a-1(f) under the Exchange Act), is the later
of (I) ninety (90) days after adoption of the plan, and (II) two (2) business days after the disclosure of the Company’s
financial results in a periodic report on Form 10-Q or Form 10-K for the fiscal quarter in which the plan was adopted, not to
exceed one hundred twenty (120) days in the aggregate), (y) the prohibition on maintaining more than one active 10b5-1 Trading Plan
at any one time, and (z) the limitation permitting no more than one single-trade 10b5-1 Trading Plan in any twelve (12)-month period,
and (D) such plan shall not be modified or amended during the Lock-Up Period in any manner that affects the amount, price or timing
of transactions thereunder (any such modification being treated as a termination of the plan and the adoption of a new plan subject to
the requirements of this paragraph); and (ii) transfer or sell the undersigned’s shares of Common Stock pursuant to a 10b5-1
Trading Plan that was entered into by the undersigned on or prior to the date of this Lock-Up Letter Agreement and is in effect as of
the date hereof (a “Pre-Existing Plan”), provided, that, if the undersigned is required to file a report under
Section 16(a) of the Exchange Act during the Lock-Up Period in connection with transactions under a Pre-Existing Plan, such
filing shall state that such transaction has been executed under a 10b5-1 Trading Plan, shall indicate whether such transaction was intended
to satisfy the affirmative defense conditions of Rule 10b5-1(c), and shall also state the date such 10b5-1 Trading Plan was established.
The undersigned further agrees
that the foregoing provisions shall be equally applicable to any Common Stock the undersigned may purchase or otherwise receive in the
Offering.
Notwithstanding the foregoing,
if any record or beneficial owner of shares of Common Stock enters into a lock-up agreement in connection with the Offering and such owner
is granted an early release from its lock-up agreement (in whole or in part), then the undersigned shall be released automatically, and
to the same extent and on a pro-rata basis (based on number of shares of Common Stock held), from its obligations under this Lock-Up Letter
Agreement. The Company shall notify the undersigned in writing promptly upon any such early release being granted.
Delivery of an executed Lock-Up
Letter Agreement may be made by facsimile, electronic mail (including PDF or any electronic signature complying with the U.S. federal
ESIGN Act of 2000, including, without limitation, via DocuSign or Adobe Sign) or other transmission method and shall be deemed to have
been duly and validly delivered and shall be valid and effective for all purposes.
This Lock-Up Letter Agreement
and any transaction contemplated by this Lock-Up Letter Agreement shall be governed by and construed in accordance with the laws of the
State of New York without regard to conflict of laws principles that would result in the application of any other law than the laws of
the State of New York.
[Signature page follows]
The undersigned hereby represents
and warrants that the undersigned has full power and authority to enter into this Lock-Up Letter Agreement. Any obligations of the undersigned
shall be binding upon the heirs and executors (in the case of individuals), personal representatives, successors and assigns of the undersigned.
Very truly yours,
Name:
Title:
Dated:
Exhibit B
Form of Registration Rights Agreement
Execution Version
REGISTRATION RIGHTS AGREEMENT
This REGISTRATION RIGHTS
AGREEMENT (this “Agreement”) is made and entered into as of September 11, 2026 by and between XBP Global Holdings, Inc.,
a Delaware corporation (the “Company”), and each of the investors identified on the signature page hereto (including
its respective successors and assigns and any affiliate or permitted transferee who is a subsequent holder of Registrable Securities
(as defined below), the “Investors” and each an “Investor”).
WHEREAS, the Company and
the Investors are parties to the Securities Purchase Agreement, dated as of September 11, 2026, between the Company and each of
the Investors identified on the signature pages thereto (the “Purchase Agreement”). Capitalized terms
used herein have the respective meanings ascribed thereto in the Purchase Agreement unless otherwise defined herein.
The parties hereby agree
as follows:
1. Certain Definitions.
As used in this Agreement,
the following terms shall have the following meanings:
“1933 Act”
means the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute.
“1934 Act”
means the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder, or any similar successor statute.
“GAAP”
means the accounting principles that are generally accepted in the United States of America, in effect from time to time.
“Prospectus”
means (i) the prospectus included in any Registration Statement, as amended or supplemented by any prospectus supplement, with respect
to the terms of the offering of any portion of the Registrable Securities covered by such Registration Statement and by all other amendments
and supplements to the prospectus, including post-effective amendments and all material incorporated by reference in such prospectus,
and (ii) any “free writing prospectus” as defined in Rule 405 under the 1933 Act.
“Register,”
“registered” and “registration” refer to a registration made by preparing and filing a Registration
Statement or similar document in compliance with the 1933 Act, and the declaration or ordering of effectiveness of such Registration
Statement or document.
“Registrable Securities”
means (i) the Shares and (ii) 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 merger, charter amendment or otherwise; provided, however,
that any such Registrable Securities shall cease to be Registrable Securities (and the Company 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 1933 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 1933 Act)
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.
“Registration Statement”
means any registration statement of the Company under the 1933 Act that covers the resale of any of the Registrable Securities pursuant
to the provisions of this Agreement, amendments and supplements to such Registration Statement, including post-effective amendments,
all exhibits and all material incorporated by reference in such Registration Statement.
“Required Investors”
means the Investors holding a majority of the Registrable Securities outstanding from time to time.
“SEC”
means the U.S. Securities and Exchange Commission.
“SEC Guidance”
means (i) any publicly available written or oral guidance of the SEC staff, or any comments, requirements or requests of the SEC
staff and (ii) the 1933 Act.
2. Registration.
(a) Registration
Statements.
(i) No
later than September 22, 2026 (the “Filing Deadline”), the Company shall prepare and file with the SEC a Registration
Statement covering the resale of all of the Registrable Securities. Subject to any SEC comments, such Registration Statement shall include
the intended plan of distribution which shall include such customary methods of distribution as the Required Investors may reasonably
request and as are reasonably acceptable to the Company. Such Registration Statement also shall cover, to the extent allowable under
the 1933 Act and the rules promulgated thereunder (including Rule 416), such indeterminate number of additional shares of Common
Stock resulting from stock splits, stock dividends or similar transactions with respect to the Registrable Securities. Such Registration
Statement shall not include any shares of Common Stock or other securities for the account of any other holder without the prior written
consent of the Required Investors. Such Registration Statement (and each amendment or supplement thereto) shall be provided in accordance
with Section 3(c) to the Investors prior to its filing or other submission.
(ii) The
Company shall use commercially reasonable efforts to register the Registrable Securities on Form S-3 if such form is available for
use by the Company; provided, that if at such time the Registration Statement is on Form S-1, the Company shall maintain
the effectiveness of the Registration Statement then in effect until such time as a Registration Statement on Form S-3 covering
the Registrable Securities has been declared effective by the SEC.
(b) Expenses.
The Company will pay all expenses associated with each Registration Statement, including filing and printing fees, the Company’s
counsel and accounting fees and expenses, costs associated with clearing the Registrable Securities for sale under applicable state securities
laws and listing fees, but excluding discounts, commissions, fees of underwriters, selling brokers, dealer managers or similar securities
industry professionals with respect to the Registrable Securities being sold. Except as provided in Section 5 hereof, the
Company shall not be responsible for legal fees incurred by holders of Registrable Securities in connection with the performance of its
rights and obligations under the Transaction Documents.
(c) Effectiveness.
(i) The
Company shall use commercially reasonable efforts to have the Registration Statement declared effective as soon as reasonably practicable
after the filing thereof and in any case not more than thirty (30) days following the filing thereof, unless the SEC reviews the Registration
Statement, in which case not more than sixty (60) days following the filing thereof. Not later than 5:30 p.m. (Eastern time) on
the second Business Day following the date on which the SEC determines not to review the Registration Statement or completes its review
of the Registration Statement, the Company shall request that the SEC accelerate the effectiveness of the Registration Statement to two
(2) Business Days thereafter. Not later than 5:30 p.m. (Eastern time) on the second Business Day following the date on which
the Registration Statement is declared effective by the SEC, the Company shall file with the SEC, in accordance with Rule 424 under
the 1933 Act, the final prospectus to be used in connection with sales pursuant to such Registration Statement. The Company shall notify
the Investors as promptly as practicable, and in any event, within one (1) Business Day, after any Registration Statement is declared
effective.
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(ii) Notwithstanding
anything to the contrary contained herein, (i) the Company shall not be required to file a Registration Statement (or any amendment
thereto) or, if a Registration Statement has been filed but not declared effective by the SEC, request effectiveness of such Registration
Statement, for a period of up to forty-five (45) days, if (A) the negotiation or consummation of a transaction by the Company is
pending or an event has occurred, which negotiation, consummation or event the Board of Directors reasonably determines would require
additional disclosure by the Company in the Registration Statement of material information that the Company has a bona fide business
purpose for keeping confidential and the non-disclosure of which in the Registration Statement would be expected, in the reasonable determination
of the Board of Directors, upon the advice of legal counsel, to cause the Registration Statement to fail to comply with applicable disclosure
requirements or (B) the Company determines such registration would render the Company unable to comply with applicable securities
laws; and (ii) the Company may, upon written notice to any holder of Registrable Securities included in a Registration Statement,
suspend the use of any Registration Statement, including any Prospectus that forms a part of a Registration Statement, if (x) the
negotiation or consummation of a transaction by the Company is pending or an event has occurred, which negotiation, consummation or event
the Board of Directors reasonably determines would require additional disclosure by the Company in the Registration Statement of material
information that the Company has a bona fide business purpose for keeping confidential and the non-disclosure of which in the Registration
Statement would be expected, in the reasonable determination of the Board of Directors, upon the advice of legal counsel, to cause the
Registration Statement to fail to comply with applicable disclosure requirements, or (y) the Company determines it must amend or
supplement the Registration Statement or the related Prospectus so that such Registration Statement or Prospectus shall not include an
untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements
therein, in the case of the Prospectus in light of the circumstances under which they were made, not misleading. Notwithstanding the
foregoing, in no event shall (a) holders of Registrable Securities be suspended from selling Registrable Securities pursuant to
the Registration Statement for a period that exceeds sixty (60) consecutive calendar days or ninety (90) total calendar days in any one-year
period (any such suspension contemplated by this Section 2(c)(ii), an “Allowed Delay”) or (b) the
Company be entitled to impose more than two (2) Allowed Delays in any one-year period. Upon disclosure of such information or the
termination of the condition described above, the Company shall provide prompt notice to holders whose Registrable Securities are included
in the Registration Statement, and shall promptly terminate any suspension of sales it has put into effect and shall take such other
reasonable actions to permit registered sales of Registrable Securities as contemplated hereby.
(d) Rule 415;
Cutback. If at any time the SEC takes the position that the offering of some or all of the Registrable Securities in a Registration
Statement is not eligible to be made on a delayed or continuous basis under the provisions of Rule 415 under the 1933 Act (provided,
however, the Company shall be obligated to use commercially reasonable efforts to advocate with the SEC for the registration of
all of the Registrable Securities in accordance with the SEC Guidance, including without limitation, Compliance and Disclosure Interpretation
612.09) or requires any Investor to be named as an “underwriter,” the Company shall (i) promptly notify each holder
of Registrable Securities thereof and (ii) make commercially reasonable efforts to persuade the SEC that the offering contemplated
by such Registration Statement is a valid secondary offering and not an offering “by or on behalf of the issuer” as defined
in Rule 415 and that none of the Investors is an “underwriter.” In the event that, despite the Company’s commercially
reasonable efforts and compliance with the terms of this Section 2(d), the SEC refuses to alter its position, the Company
shall (i) remove from such Registration Statement such portion of the Registrable Securities and/or (ii) agree to such restrictions
and limitations on the registration and resale of the Registrable Securities as the SEC may require to assure the Company’s compliance
with the requirements of Rule 415 (collectively, the “SEC Restrictions”); provided, however, that
the Company shall not name any Investor as an “underwriter” in such Registration Statement without the prior written consent
of such Investor (provided, that in the event an Investor withholds such consent, the Company shall have no obligation hereunder
to include any Registrable Securities of such Investor in any Registration Statement covering the resale thereof until such time as the
SEC no longer requires such Investor to be named as an “underwriter” in such Registration Statement or such Investor otherwise
consents in writing to being so named). Notwithstanding the foregoing, the Company may make such disclosures as required by applicable
SEC rules, regulations, comments or guidance. Any cutback imposed on the Investors pursuant to this Section 2(d) shall
be allocated among the Investors on a pro rata basis (based upon the relative number of Registrable Securities held by each Investor)
and shall be applied first to any of the Registrable Securities of such Investor as such Investor shall designate, unless the SEC Restrictions
otherwise require or provide or the Investors otherwise agree. Notwithstanding anything herein to the contrary, nothing in this Agreement
shall require the Company to register any number of Registrable Securities in excess of the number that may then be registered in compliance
with applicable SEC rules, regulations, interpretations or guidance.
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(e) Other
Limitations. Notwithstanding any other provision herein or in the Purchase Agreement, with respect to any Investor (as to such Investor
only) the Filing Deadline for a Registration Statement shall be extended and any failure by the Company to maintain a Registration Statement
shall be automatically waived by no action of the Investors, in each case, without default by or liquidated damages payable by the Company
to such Investor hereunder in the event that the Company’s failure to make such filing or failure to maintain a Registration Statement
results from the failure of such Investor to timely provide the Company with information requested by the Company and necessary to complete
a Registration Statement in accordance with the requirements of the 1933 Act (in which case any such deadline would be extended, and
a maintenance failure waived, with respect to all Registrable Securities until forty-five (45) days after such time as the Investor provides
such requested information), it being understood that the failure of such Investor to timely provide such information to the Company
shall not affect the rights of other Investors herein.
(f) Exclusivity.
Notwithstanding anything to the contrary contained in any agreement, arrangement or understanding, whether entered into before, on or
after the date hereof, the Shares and any securities issued in respect thereof shall be entitled solely to the registration rights expressly
provided in this Agreement, and no holder thereof shall be entitled to exercise any registration, shelf, demand, piggyback, takedown
or similar registration rights. .
3. Company
Obligations. The Company will use commercially reasonable efforts to effect the registration of the Registrable Securities in accordance
with the terms hereof, and pursuant thereto the Company will, as expeditiously as possible:
(a) use
commercially reasonable efforts to cause such Registration Statement to become effective and to remain continuously effective (and the
prospectus contained therein available for use) pursuant to Rule 415 for resales by the Investors on a delayed or continuous basis
at all times until the earlier of (i) such time as there are no longer Registrable Securities held by the Investors and (ii) the
third anniversary following the Closing Date (the “Effectiveness Period”) and advise the Investors promptly in writing
when the Effectiveness Period has expired;
(b) prepare
and file with the SEC such amendments and post-effective amendments to such Registration Statement and the related Prospectus as may
be necessary to keep such Registration Statement effective for the Effectiveness Period and to comply with the provisions of the 1933
Act and the 1934 Act with respect to the distribution of all of the Registrable Securities covered thereby;
(c) provide
via email to the Investors who have supplied the Company with email addresses each Registration Statement and all amendments and supplements
thereto not less than two (2) Trading Days prior to their filing with the SEC and reflect in each such document when filed such
comments regarding such Investor’s information and the plan of distribution as such Investor may reasonably and promptly propose
no later than one (1) Trading Day after the Investors have been so furnished with copies of such documents as aforesaid;
(d) furnish
to each Investor whose Registrable Securities are included in any Registration Statement (i) promptly after the same is prepared
and filed with the SEC, if requested by such Investor, one (1) copy of any Registration Statement and any amendment thereto, each
preliminary prospectus and Prospectus and each amendment or supplement thereto, and (ii) if requested by such Investor, such number
of copies of a Prospectus, including a preliminary prospectus, and all amendments and supplements thereto and such other documents as
each Investor may reasonably request in order to facilitate the disposition of the Registrable Securities owned by such Investor (it
being understood and agreed that such documents, or access thereto, may be provided electronically);
(e) use
commercially reasonable efforts to (i) prevent the issuance of any stop order or other suspension of effectiveness or the suspension
of the qualification, or the loss of an exemption from qualification, of any of the Registrable Securities for sale in any jurisdiction,
and, (ii) if such order is issued, obtain the withdrawal of any such order at the earliest possible moment;
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(f) prior
to any public offering of Registrable Securities, use commercially reasonable efforts to assist or cooperate with the Investors and their
counsel in connection with their registration or qualification of such Registrable Securities for the offer and sale under the securities
or blue sky laws of such jurisdictions reasonably requested by the Investors and do any and all other commercially reasonable acts or
things necessary or advisable to enable the public offering or distribution in such jurisdictions of the Registrable Securities covered
by the Registration Statement; provided, however, that the Company shall not be required in connection therewith or as
a condition thereto to (i) qualify to do business in any jurisdiction where it would not otherwise be required to qualify but for
this Section 3(f), (ii) subject itself to general taxation in any jurisdiction where it would not otherwise be so subject
but for this Section 3(f), or (iii) file a general consent to service of process in any such jurisdiction;
(g) use
commercially reasonable efforts to cause all Registrable Securities covered by a Registration Statement to be listed on the Nasdaq Capital
Market (or the Trading Market on which the Common Stock is then listed);
(h) promptly
notify the Investors, at any time prior to the end of the Effectiveness Period, (1) when a Registration Statement has become effective
and when any post-effective amendments and supplements thereto become effective, (2) of any request by the SEC or any state securities
authority for post-effective amendments and supplements to a Registration Statement and Prospectus or for additional information after
the Registration Statement has become effective, (3) of the issuance by the SEC or any state securities authority of any stop order
suspending the effectiveness of a Registration Statement or the initiation of any proceedings for that purpose and (4) upon discovery
that, or upon the happening of any event as a result of which, the Prospectus contains an 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 not misleading in light of the circumstances
then existing (provided, that such notice shall not, without the prior written consent of the applicable Investor, disclose any
material non-public information regarding the Company), and as promptly as reasonably practicable, prepare, file with the SEC and furnish
to such holder a supplement to or an amendment of such Prospectus as may be necessary so that such Prospectus shall not include an untrue
statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein
not misleading in light of the circumstances then existing; and
(i) otherwise
use commercially reasonable efforts to comply with all applicable rules and regulations of the SEC under the 1933 Act and the 1934
Act, including, without limitation, Rule 172 under the 1933 Act, file any final Prospectus, including any supplement or amendment
thereof, with the SEC pursuant to Rule 424 under the 1933 Act, promptly inform the Investors in writing if, at any time during the
Effectiveness Period, the Company does not satisfy the conditions specified in Rule 172 and, as a result thereof, the Investors
are required to deliver a Prospectus in connection with any disposition of Registrable Securities and take such other actions as may
be reasonably necessary to facilitate the registration of the Registrable Securities hereunder.
4. Obligations of the Investors.
(a) Each
Investor shall deliver to the Company a selling stockholder questionnaire, in the form set forth on Annex A hereto, prior to the Closing
Date. Each Investor shall additionally furnish in writing to the Company such other information regarding itself, the Registrable Securities
held by it and the intended method of disposition of the Registrable Securities held by it, as shall be reasonably required to effect
the registration of such Registrable Securities and shall execute such documents in connection with such registration as the Company
may reasonably request. At least three (3) Business Days prior to the first anticipated filing date of any Registration Statement,
the Company shall notify each Investor of the additional information the Company requires from such Investor if such Investor elects
to have any of the Registrable Securities included in such Registration Statement (the “Registration Information Notice”).
An Investor shall provide such information to the Company no later than two (2) Business Days following receipt of a Registration
Information Notice if such Investor elects to have any of the Registrable Securities included in such Registration Statement. It is agreed
and understood that it shall be a condition precedent to the obligations of the Company to complete the registration pursuant to this
Agreement with respect to the Registrable Securities of a particular Investor that such Investor furnish to the Company such information
regarding itself, the Registrable Securities held by it and the intended method of disposition of the Registrable Securities held by
it as shall be reasonably required to effect the effectiveness of the registration of such Registrable Securities.
(b) Each
Investor, by its acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably requested by the Company
in connection with the preparation and filing of a Registration Statement hereunder, unless such Investor has notified the Company in
writing of its election to exclude all of its Registrable Securities from such Registration Statement.
5
(c) Each
Investor agrees that, upon receipt of any notice from the Company (which notice shall not include material non-public information) of
either (i) the commencement of an Allowed Delay pursuant to Section 2(c)(ii) or (ii) the happening of an event
pursuant to Section 3(h) hereof, such Investor will immediately discontinue disposition of Registrable Securities pursuant
to any Registration Statement covering such Registrable Securities, until the Investor is advised by the Company that such dispositions
may again be made.
(d) Each
Investor covenants and agrees that it will comply with the prospectus delivery requirements of the 1933 Act as applicable to it or an
exemption therefrom in connection with sales of Registrable Securities pursuant to any Registration Statement.
5. Indemnification.
(a) Indemnification
by the Company. The Company will indemnify and hold harmless each Investor and its officers, directors, members, managers, partners
and agents and successors and assigns, and each other Person, if any, who controls such Investor (within the meaning of Section 15
of the 1933 Act or Section 20 of the 1934 Act) and the officers, directors, partners, members and managers of each such controlling
Person (each, an “Indemnified Party”), against any losses, claims, damages, liabilities, costs (including, without
limitation, reasonable external attorneys’ fees) and expenses (collectively, “Losses”), insofar as such Losses
arise out of or are based upon any untrue statement or alleged untrue statement or omission or alleged omission of any material fact
contained in any Registration Statement, any preliminary Prospectus or final Prospectus, or any amendment or supplement thereof, any
violation or alleged violation by the Company of the 1933 Act, the 1934 Act, any other law, including, without limitation, any state
securities law, or any rule or regulation thereunder relating to the offer or sale of the Registrable Securities pursuant to a Registration
Statement (collectively, “Violations” and shall reimburse each Indemnified Party upon demand for reasonable and documented
fees and expenses of counsel and other expenses incurred by it in connection with investigating, preparing to defend or defending, or
providing evidence in or preparing to serve or serving as a witness with respect thereto); provided, however, that the
Company will not be liable in any such case if and to the extent that any such claim arises out of or is based upon (i) an untrue
statement or alleged untrue statement or omission or alleged omission so made in conformity with information furnished by such Investor
or any such controlling person in writing specifically for use in such Registration Statement or Prospectus and was reviewed and approved
in writing by such Investor expressly for use in the Registration Statement, (ii) the use by an Investor of an outdated or defective
Prospectus after the Company has notified such Investor in writing that such Prospectus is outdated or defective or (iii) an Investor’s
failure to send or give a copy of the Prospectus or supplement (as then amended or supplemented), if required (and not exempted) to the
Persons asserting an untrue statement or omission or alleged untrue statement or omission at or prior to the written confirmation of
the sale of Registrable Securities.
(b) Indemnification
by the Investors. Each Investor agrees, severally and not jointly, to indemnify and hold harmless, to the fullest extent permitted
by law, the Company, its officers, directors, members, managers, partners and agents and successors and assigns and each Person who controls
the Company (within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act), and the officers, directors,
partners, members and managers of each such controlling Person, against any Losses resulting from any Violations, to the extent that
such untrue statement or omission is contained in any information regarding such Investor and furnished in writing by such Investor to
the Company specifically for inclusion in such Registration Statement or Prospectus or amendment or supplement thereto and was reviewed
and approved in writing by such Investor expressly for use in such Registration Statement or Prospectus or amendment or supplement thereto.
In no event shall the aggregate liability of an Investor under this Section 5 be greater than the dollar amount of the proceeds
(net of all expenses paid by such Investor in connection with a claim relating to this Section 5 and the amount of any damages
such Investor has otherwise been required to pay by reason of such untrue statement or omission) received by such Investor upon the sale
of the Registrable Securities included in such Registration Statement giving rise to such indemnification obligation.
6
(c) Conduct
of Indemnification Proceedings. Any person entitled to indemnification hereunder shall (i) give prompt notice to the indemnifying
party of any claim with respect to which it seeks indemnification and (ii) permit such indemnifying party to assume the defense
of such claim with counsel reasonably satisfactory to the Indemnified Party; provided, that any person entitled to indemnification
hereunder shall have the right to employ separate counsel and to participate in the defense of such claim, but the fees and expenses
of such counsel shall be at the expense of such person unless (A) the indemnifying party has agreed in writing to pay such fees
or expenses, (B) the indemnifying party shall have failed to assume the defense of such claim and employ counsel reasonably satisfactory
to such person or (C) in the reasonable judgment of any such person, based upon written advice of its counsel, a material conflict
of interest exists between such person and the indemnifying party with respect to such claims (in which case, if the person notifies
the indemnifying party in writing that such person elects to employ separate counsel at the expense of the indemnifying party, the indemnifying
party shall not have the right to assume the defense of such claim on behalf of such person); and provided, further that the failure
of any Indemnified Party to give notice as provided herein shall not relieve the indemnifying party of its obligations hereunder, except
to the extent that such failure to give notice shall materially adversely affect the indemnifying party in the defense of any such claim
or litigation. It is understood that the indemnifying party shall not, in connection with any proceeding in the same jurisdiction, be
liable for fees or expenses of more than one separate firm of attorneys at any time for all such indemnified parties. No indemnifying
party will, except with the consent of the Indemnified Party, which consent shall not be unreasonably withheld, conditioned or delayed,
consent to entry of any judgment or enter into any settlement unless such judgment or settlement (i) imposes no liability or obligation
on, (ii) includes as an unconditional term thereof the giving of a complete, explicit and unconditional release from the party bringing
such indemnified claims of all liability of the Indemnified Party in respect of such claim or litigation in favor of, and (iii) does
not include any admission of fault, culpability, wrongdoing or malfeasance by or on behalf of, the Indemnified Party. No Indemnified
Party will, except with the prior written consent of the indemnifying party, which consent shall not be unreasonably withheld, conditioned
or delayed, consent to entry of any judgment or enter into any settlement and no indemnifying party shall be liable for any such settlement
or consent to entry of judgment entered into by such Indemnified Party without its consent.
(d) Contribution.
If for any reason the indemnification provided for in the preceding paragraphs (a) and (b) is unavailable to an Indemnified
Party or insufficient to hold it harmless, other than as expressly specified therein, then the indemnifying party shall contribute to
the amount paid or payable by the Indemnified Party as a result of such claim in such proportion as is appropriate to reflect the relative
fault of the Indemnified Party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault
of such 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 of a material fact, has been taken
or made by, or relates to information supplied by, such indemnifying party or Indemnified Party, and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable
by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in this Agreement, any reasonable
attorneys’ or other fees or expenses incurred by such party in connection with any Proceeding to the extent such party would have
been indemnified for such fees or expenses if the indemnification provided for in this Section 5 was available to such party
in accordance with its terms. No person guilty of fraudulent misrepresentation within the meaning of Section 11(f) of the 1933
Act shall be entitled to contribution from any person not guilty of such fraudulent misrepresentation. In no event shall the contribution
obligation of a holder of Registrable Securities under this Section 5(d) together with all of its other obligations
under this Section 5 be greater in amount than the dollar amount of the proceeds (net of all expenses paid by such holder
in connection with any claim relating to this Section 5 and the amount of any damages such holder has otherwise been required
to pay by reason of such untrue or alleged untrue statement or omission or alleged omission) received by it upon the sale of the Registrable
Securities giving rise to such contribution obligation.
6. Miscellaneous.
(a) Amendments
and Waivers. This Agreement may be amended only by a writing signed by the Company and the Required Investors; provided, that
this Agreement may not be amended with respect to any Investor without the written consent of such Investor. The Company may take any
action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company shall have obtained the
written consent to such amendment, action or omission to act, of the Required Investors; provided, that any such action or omission
that complies with the foregoing, but that disproportionately and adversely affects the rights and obligations of any Investor relative
to the comparable rights and obligations of the other Investors shall require the prior written consent of such adversely affected Investor
or each Investor, as applicable.
(b) Rule 144.
The Company shall use its commercially reasonable efforts to (i) file with the SEC in a timely manner all reports and other documents
required to be filed by it under the 1933 Act and the 1934 Act, (ii) make and keep adequate current public information available
within the meaning of Rule 144 and (iii) take such further action as the Investors may reasonably request, all to the extent
required to enable such Persons to sell securities pursuant to Rule 144 or any similar rule or regulation hereafter adopted
by the SEC.
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(c) Notices.
All notices and other communications provided for or permitted hereunder shall be made as set forth in Section 5.4 of the
Purchase Agreement.
(d) Assignments
and Transfers by Investors. The provisions of this Agreement shall be binding upon and inure to the benefit of the Investors and
their respective successors and permitted assigns. An Investor may transfer or assign, in whole or from time to time in part, to one
or more persons its rights or delegate its obligations hereunder in connection with the transfer of Registrable Securities by such Investor
to such person, provided that (I) immediately following such transfer or assignment the further disposition of such securities by
the transferee or assignee is restricted under the 1933 Act or applicable state securities laws; (II) such transfer shall have been
made in accordance with the applicable requirements of the Purchase Agreement; and (III) prior to such assignment (i) the Investor
agrees in writing with the transferee or assignee to assign such rights and delegate such obligations and a copy of such agreement is
furnished to the Company; (ii) the Company is furnished with written notice of (A) the name and address of such transferee
or assignee and (B) the securities with respect to which such registration rights are being transferred or assigned; (iii) at
or before the time the Company receives the written notice contemplated by clause (ii) of this sentence the transferee or assignee
agrees in writing with the Company to be bound by all of the provisions contained herein.
(e) Assignments
and Transfers by the Company. This Agreement may not be assigned by the Company (whether by operation of law or otherwise) without
the prior written consent of the Required Investors; provided, however, that this Agreement may not be assigned with respect
to any Investor in a materially adverse and non pro rata manner without the written consent of such Investor.
(f) Benefits
of the Agreement. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective
permitted successors and assigns of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party
other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by
reason of this Agreement, except as expressly provided in this Agreement.
(g) Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument. Counterparts may be delivered via electronic mail (including pdf or any electronic signature
complying with the U.S. ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart so delivered
shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.
(h) Titles
and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing
or interpreting this Agreement.
(i) Severability.
Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof but shall be interpreted as
if it were written so as to be enforceable to the maximum extent permitted by applicable law, and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. To the extent permitted by
applicable law, the parties hereby waive any provision of law which renders any provisions hereof prohibited or unenforceable in any
respect.
(j) Further
Assurances. The parties shall execute and deliver all such further instruments and documents and take all such other actions as may
reasonably be required to carry out the transactions contemplated hereby and to evidence the fulfillment of the agreements herein contained.
(k) Entire
Agreement. The Transaction Documents, together with the exhibits and schedules thereto, are intended by the parties as a final
expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of the parties
hereto and thereto in respect of the subject matter contained herein and therein. The Transaction Documents supersede all prior agreements
and understandings between the parties with respect to the subject matter hereof and thereof.
8
(l) Use
of Single Agreement. For ease of administration, this single Agreement is being executed so as to enable each Investor identified
on the signature page of the Purchase Agreement to enter into an Agreement, severally, but not jointly. The parties agree that (i) this
Agreement shall be treated as if it were a separate agreement with respect to each Investor listed on the signature page of the
Purchase Agreement, as if each Investor entity had executed a separate Agreement naming only itself as Investor, and (ii) no Investor
listed on the signature page of the Purchase Agreement shall have any liability under this Agreement for obligations of any other
Investor so listed.
(m) Governing
Law; Consent to Jurisdiction; Waiver of Jury Trial. All questions concerning the construction, validity, enforcement and interpretation
of the Transaction Documents shall be governed by and construed and enforced in accordance with the internal laws of the State of New
York. Each party agrees that it shall commence any Actions or Proceedings concerning the interpretations, enforcement and defense of
the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective
affiliates, directors, officers, shareholders, partners, members, employees or agents) exclusively in the state and federal courts sitting
in the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting
in the State of 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 any of the Transaction Documents), 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
Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained
herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. IN ANY ACTION, SUIT, OR PROCEEDING
IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT
PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.
(n) Remedies.
In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of the Investors
and the Company will be entitled to specific performance under the Transaction Documents.
(o) Interpretation.
Wherever required by the context of this Agreement, the singular shall include the plural and vice versa, and the masculine gender shall
include the feminine and neuter genders and vice versa, and references to any agreement, document or instrument shall be deemed to refer
to such agreement, document or instrument as amended, supplemented or modified from time to time. All article, section, paragraph or
clause references not attributed to a particular document shall be references to such parts of this Agreement, and all exhibit, annex,
letter and schedule references not attributed to a particular document shall be references to such exhibits, annexes, letters and schedules
to this Agreement. In addition, the word “or” is not exclusive; the words “including,” “includes,”
“included” and “include” are deemed to be followed by the words “without limitation”; and the terms
“herein,” “hereof” and “hereunder” and other words of similar import refer to this Agreement as a
whole and not to any particular section, paragraph or subdivision.
(p) Independent
Nature of Investors’ Obligations and Rights. The obligations of each Investor hereunder are several and not joint with
the obligations of any other Investor hereunder, and no Investor shall be responsible or disadvantaged in any way for the performance,
or failure thereof, of the obligations of any other Investor hereunder. Nothing contained herein or in any other agreement or document
delivered at any closing, and no action taken by any Investor pursuant hereto or thereto, shall be deemed to constitute the Investors
as a partnership, an association, a joint venture or any other kind of group or entity, or create a presumption that the Investors are
in any way acting in concert or as a group or entity with respect to such obligations or the transactions contemplated by this Agreement
or any other matters, and the Company acknowledges that the Investors are not acting in concert or as a group, and the Company shall
not assert any such claim, with respect to such obligations or transactions. Each Investor shall be entitled to protect and enforce its
rights, including without limitation the rights arising out of this Agreement, and it shall not be necessary for any other Investor to
be joined as an additional party in any proceeding for such purpose. The use of a single agreement with respect to the obligations of
the Company contained was solely in the control of the Company, not the action or decision of any Investor, and was done solely for the
convenience of the Company and not because it was required or requested to do so by any Investor. It is expressly understood and agreed
that each provision contained in this Agreement is between the Company and an Investor, solely, and not between the Company and the Investors
collectively and not between and among Investors.
9
(q) Non-Recourse.
Notwithstanding anything that may be expressed or implied in this Agreement, the Company covenants, agrees and acknowledges that no recourse
under this Agreement or any documents or instruments delivered in connection with this Agreement shall be had against any current or
future director, officer, employee, stockholder general or limited partner or member of the Investors or of any affiliates or assignees
thereof, whether by the enforcement of any assessment or by any legal or equitable proceeding, or by virtue of any statute, regulation
or other applicable law, it being expressly agreed and acknowledged that no personal liability whatsoever shall attach to, be imposed
on or otherwise be incurred by any current or future director, officer, employee, stockholder, general or limited partner or member of
the Investors or of any affiliates or assignees thereof, as such for any obligation of the Investors under this Agreement or any documents
or instruments delivered in connection with this Agreement for any claim based on, in respect of or by reason of such obligations or
their creation.
[Remainder of page intentionally left blank]
10
IN WITNESS WHEREOF, the parties
have executed this Agreement or caused their duly authorized officers to execute this Agreement as of the date first above written.
COMPANY:
XBP GLOBAL HOLDINGS, INC.
By:
Name:
Title:
[Signature Page to Registration Rights
Agreement]
IN WITNESS WHEREOF, the parties
have executed this Agreement or caused their duly authorized officers to execute this Agreement as of the date first above written.
INVESTOR:
By:
Name:
Title:
[Signature Page to
Registration Rights Agreement]
EX-10.2 — EXHIBIT 10.2
EX-10.2
Filename: tm2623653d2_ex10-2.htm · Sequence: 3
Exhibit 10.2
Execution Version
REGISTRATION RIGHTS AGREEMENT
This REGISTRATION RIGHTS
AGREEMENT (this “Agreement”) is made and entered into as of September 11, 2026 by and between XBP Global Holdings, Inc.,
a Delaware corporation (the “Company”), and each of the investors identified on the signature page hereto (including
its respective successors and assigns and any affiliate or permitted transferee who is a subsequent holder of Registrable Securities
(as defined below), the “Investors” and each an “Investor”).
WHEREAS, the Company and
the Investors are parties to the Securities Purchase Agreement, dated as of September 11, 2026, between the Company and each of
the Investors identified on the signature pages thereto (the “Purchase Agreement”). Capitalized terms
used herein have the respective meanings ascribed thereto in the Purchase Agreement unless otherwise defined herein.
The parties hereby agree
as follows:
1. Certain Definitions.
As used in this Agreement,
the following terms shall have the following meanings:
“1933 Act”
means the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute.
“1934 Act”
means the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder, or any similar successor statute.
“GAAP”
means the accounting principles that are generally accepted in the United States of America, in effect from time to time.
“Prospectus”
means (i) the prospectus included in any Registration Statement, as amended or supplemented by any prospectus supplement, with respect
to the terms of the offering of any portion of the Registrable Securities covered by such Registration Statement and by all other amendments
and supplements to the prospectus, including post-effective amendments and all material incorporated by reference in such prospectus,
and (ii) any “free writing prospectus” as defined in Rule 405 under the 1933 Act.
“Register,”
“registered” and “registration” refer to a registration made by preparing and filing a Registration
Statement or similar document in compliance with the 1933 Act, and the declaration or ordering of effectiveness of such Registration
Statement or document.
“Registrable Securities”
means (i) the Shares and (ii) 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 merger, charter amendment or otherwise; provided, however,
that any such Registrable Securities shall cease to be Registrable Securities (and the Company 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 1933 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 1933 Act)
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.
“Registration Statement”
means any registration statement of the Company under the 1933 Act that covers the resale of any of the Registrable Securities pursuant
to the provisions of this Agreement, amendments and supplements to such Registration Statement, including post-effective amendments,
all exhibits and all material incorporated by reference in such Registration Statement.
“Required Investors”
means the Investors holding a majority of the Registrable Securities outstanding from time to time.
“SEC”
means the U.S. Securities and Exchange Commission.
“SEC Guidance”
means (i) any publicly available written or oral guidance of the SEC staff, or any comments, requirements or requests of the SEC
staff and (ii) the 1933 Act.
2. Registration.
(a) Registration
Statements.
(i) No
later than September 22, 2026 (the “Filing Deadline”), the Company shall prepare and file with the SEC a Registration
Statement covering the resale of all of the Registrable Securities. Subject to any SEC comments, such Registration Statement shall include
the intended plan of distribution which shall include such customary methods of distribution as the Required Investors may reasonably
request and as are reasonably acceptable to the Company. Such Registration Statement also shall cover, to the extent allowable under
the 1933 Act and the rules promulgated thereunder (including Rule 416), such indeterminate number of additional shares of Common
Stock resulting from stock splits, stock dividends or similar transactions with respect to the Registrable Securities. Such Registration
Statement shall not include any shares of Common Stock or other securities for the account of any other holder without the prior written
consent of the Required Investors. Such Registration Statement (and each amendment or supplement thereto) shall be provided in accordance
with Section 3(c) to the Investors prior to its filing or other submission.
(ii) The
Company shall use commercially reasonable efforts to register the Registrable Securities on Form S-3 if such form is available for
use by the Company; provided, that if at such time the Registration Statement is on Form S-1, the Company shall maintain
the effectiveness of the Registration Statement then in effect until such time as a Registration Statement on Form S-3 covering
the Registrable Securities has been declared effective by the SEC.
(b) Expenses.
The Company will pay all expenses associated with each Registration Statement, including filing and printing fees, the Company’s
counsel and accounting fees and expenses, costs associated with clearing the Registrable Securities for sale under applicable state securities
laws and listing fees, but excluding discounts, commissions, fees of underwriters, selling brokers, dealer managers or similar securities
industry professionals with respect to the Registrable Securities being sold. Except as provided in Section 5 hereof, the
Company shall not be responsible for legal fees incurred by holders of Registrable Securities in connection with the performance of its
rights and obligations under the Transaction Documents.
(c) Effectiveness.
(i) The
Company shall use commercially reasonable efforts to have the Registration Statement declared effective as soon as reasonably practicable
after the filing thereof and in any case not more than thirty (30) days following the filing thereof, unless the SEC reviews the Registration
Statement, in which case not more than sixty (60) days following the filing thereof. Not later than 5:30 p.m. (Eastern time) on
the second Business Day following the date on which the SEC determines not to review the Registration Statement or completes its review
of the Registration Statement, the Company shall request that the SEC accelerate the effectiveness of the Registration Statement to two
(2) Business Days thereafter. Not later than 5:30 p.m. (Eastern time) on the second Business Day following the date on which
the Registration Statement is declared effective by the SEC, the Company shall file with the SEC, in accordance with Rule 424 under
the 1933 Act, the final prospectus to be used in connection with sales pursuant to such Registration Statement. The Company shall notify
the Investors as promptly as practicable, and in any event, within one (1) Business Day, after any Registration Statement is declared
effective.
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(ii) Notwithstanding
anything to the contrary contained herein, (i) the Company shall not be required to file a Registration Statement (or any amendment
thereto) or, if a Registration Statement has been filed but not declared effective by the SEC, request effectiveness of such Registration
Statement, for a period of up to forty-five (45) days, if (A) the negotiation or consummation of a transaction by the Company is
pending or an event has occurred, which negotiation, consummation or event the Board of Directors reasonably determines would require
additional disclosure by the Company in the Registration Statement of material information that the Company has a bona fide business
purpose for keeping confidential and the non-disclosure of which in the Registration Statement would be expected, in the reasonable determination
of the Board of Directors, upon the advice of legal counsel, to cause the Registration Statement to fail to comply with applicable disclosure
requirements or (B) the Company determines such registration would render the Company unable to comply with applicable securities
laws; and (ii) the Company may, upon written notice to any holder of Registrable Securities included in a Registration Statement,
suspend the use of any Registration Statement, including any Prospectus that forms a part of a Registration Statement, if (x) the
negotiation or consummation of a transaction by the Company is pending or an event has occurred, which negotiation, consummation or event
the Board of Directors reasonably determines would require additional disclosure by the Company in the Registration Statement of material
information that the Company has a bona fide business purpose for keeping confidential and the non-disclosure of which in the Registration
Statement would be expected, in the reasonable determination of the Board of Directors, upon the advice of legal counsel, to cause the
Registration Statement to fail to comply with applicable disclosure requirements, or (y) the Company determines it must amend or
supplement the Registration Statement or the related Prospectus so that such Registration Statement or Prospectus shall not include an
untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements
therein, in the case of the Prospectus in light of the circumstances under which they were made, not misleading. Notwithstanding the
foregoing, in no event shall (a) holders of Registrable Securities be suspended from selling Registrable Securities pursuant to
the Registration Statement for a period that exceeds sixty (60) consecutive calendar days or ninety (90) total calendar days in any one-year
period (any such suspension contemplated by this Section 2(c)(ii), an “Allowed Delay”) or (b) the
Company be entitled to impose more than two (2) Allowed Delays in any one-year period. Upon disclosure of such information or the
termination of the condition described above, the Company shall provide prompt notice to holders whose Registrable Securities are included
in the Registration Statement, and shall promptly terminate any suspension of sales it has put into effect and shall take such other
reasonable actions to permit registered sales of Registrable Securities as contemplated hereby.
(d) Rule 415;
Cutback. If at any time the SEC takes the position that the offering of some or all of the Registrable Securities in a Registration
Statement is not eligible to be made on a delayed or continuous basis under the provisions of Rule 415 under the 1933 Act (provided,
however, the Company shall be obligated to use commercially reasonable efforts to advocate with the SEC for the registration of
all of the Registrable Securities in accordance with the SEC Guidance, including without limitation, Compliance and Disclosure Interpretation
612.09) or requires any Investor to be named as an “underwriter,” the Company shall (i) promptly notify each holder
of Registrable Securities thereof and (ii) make commercially reasonable efforts to persuade the SEC that the offering contemplated
by such Registration Statement is a valid secondary offering and not an offering “by or on behalf of the issuer” as defined
in Rule 415 and that none of the Investors is an “underwriter.” In the event that, despite the Company’s commercially
reasonable efforts and compliance with the terms of this Section 2(d), the SEC refuses to alter its position, the Company
shall (i) remove from such Registration Statement such portion of the Registrable Securities and/or (ii) agree to such restrictions
and limitations on the registration and resale of the Registrable Securities as the SEC may require to assure the Company’s compliance
with the requirements of Rule 415 (collectively, the “SEC Restrictions”); provided, however, that
the Company shall not name any Investor as an “underwriter” in such Registration Statement without the prior written consent
of such Investor (provided, that in the event an Investor withholds such consent, the Company shall have no obligation hereunder
to include any Registrable Securities of such Investor in any Registration Statement covering the resale thereof until such time as the
SEC no longer requires such Investor to be named as an “underwriter” in such Registration Statement or such Investor otherwise
consents in writing to being so named). Notwithstanding the foregoing, the Company may make such disclosures as required by applicable
SEC rules, regulations, comments or guidance. Any cutback imposed on the Investors pursuant to this Section 2(d) shall
be allocated among the Investors on a pro rata basis (based upon the relative number of Registrable Securities held by each Investor)
and shall be applied first to any of the Registrable Securities of such Investor as such Investor shall designate, unless the SEC Restrictions
otherwise require or provide or the Investors otherwise agree. Notwithstanding anything herein to the contrary, nothing in this Agreement
shall require the Company to register any number of Registrable Securities in excess of the number that may then be registered in compliance
with applicable SEC rules, regulations, interpretations or guidance.
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(e) Other
Limitations. Notwithstanding any other provision herein or in the Purchase Agreement, with respect to any Investor (as to such Investor
only) the Filing Deadline for a Registration Statement shall be extended and any failure by the Company to maintain a Registration Statement
shall be automatically waived by no action of the Investors, in each case, without default by or liquidated damages payable by the Company
to such Investor hereunder in the event that the Company’s failure to make such filing or failure to maintain a Registration Statement
results from the failure of such Investor to timely provide the Company with information requested by the Company and necessary to complete
a Registration Statement in accordance with the requirements of the 1933 Act (in which case any such deadline would be extended, and
a maintenance failure waived, with respect to all Registrable Securities until forty-five (45) days after such time as the Investor provides
such requested information), it being understood that the failure of such Investor to timely provide such information to the Company
shall not affect the rights of other Investors herein.
(f) Exclusivity.
Notwithstanding anything to the contrary contained in any agreement, arrangement or understanding, whether entered into before, on or
after the date hereof, the Shares and any securities issued in respect thereof shall be entitled solely to the registration rights expressly
provided in this Agreement, and no holder thereof shall be entitled to exercise any registration, shelf, demand, piggyback, takedown
or similar registration rights. .
3. Company
Obligations. The Company will use commercially reasonable efforts to effect the registration of the Registrable Securities in accordance
with the terms hereof, and pursuant thereto the Company will, as expeditiously as possible:
(a) use
commercially reasonable efforts to cause such Registration Statement to become effective and to remain continuously effective (and the
prospectus contained therein available for use) pursuant to Rule 415 for resales by the Investors on a delayed or continuous basis
at all times until the earlier of (i) such time as there are no longer Registrable Securities held by the Investors and (ii) the
third anniversary following the Closing Date (the “Effectiveness Period”) and advise the Investors promptly in writing
when the Effectiveness Period has expired;
(b) prepare
and file with the SEC such amendments and post-effective amendments to such Registration Statement and the related Prospectus as may
be necessary to keep such Registration Statement effective for the Effectiveness Period and to comply with the provisions of the 1933
Act and the 1934 Act with respect to the distribution of all of the Registrable Securities covered thereby;
(c) provide
via email to the Investors who have supplied the Company with email addresses each Registration Statement and all amendments and supplements
thereto not less than two (2) Trading Days prior to their filing with the SEC and reflect in each such document when filed such
comments regarding such Investor’s information and the plan of distribution as such Investor may reasonably and promptly propose
no later than one (1) Trading Day after the Investors have been so furnished with copies of such documents as aforesaid;
(d) furnish
to each Investor whose Registrable Securities are included in any Registration Statement (i) promptly after the same is prepared
and filed with the SEC, if requested by such Investor, one (1) copy of any Registration Statement and any amendment thereto, each
preliminary prospectus and Prospectus and each amendment or supplement thereto, and (ii) if requested by such Investor, such number
of copies of a Prospectus, including a preliminary prospectus, and all amendments and supplements thereto and such other documents as
each Investor may reasonably request in order to facilitate the disposition of the Registrable Securities owned by such Investor (it
being understood and agreed that such documents, or access thereto, may be provided electronically);
(e) use
commercially reasonable efforts to (i) prevent the issuance of any stop order or other suspension of effectiveness or the suspension
of the qualification, or the loss of an exemption from qualification, of any of the Registrable Securities for sale in any jurisdiction,
and, (ii) if such order is issued, obtain the withdrawal of any such order at the earliest possible moment;
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(f) prior
to any public offering of Registrable Securities, use commercially reasonable efforts to assist or cooperate with the Investors and their
counsel in connection with their registration or qualification of such Registrable Securities for the offer and sale under the securities
or blue sky laws of such jurisdictions reasonably requested by the Investors and do any and all other commercially reasonable acts or
things necessary or advisable to enable the public offering or distribution in such jurisdictions of the Registrable Securities covered
by the Registration Statement; provided, however, that the Company shall not be required in connection therewith or as
a condition thereto to (i) qualify to do business in any jurisdiction where it would not otherwise be required to qualify but for
this Section 3(f), (ii) subject itself to general taxation in any jurisdiction where it would not otherwise be so subject
but for this Section 3(f), or (iii) file a general consent to service of process in any such jurisdiction;
(g) use
commercially reasonable efforts to cause all Registrable Securities covered by a Registration Statement to be listed on the Nasdaq Capital
Market (or the Trading Market on which the Common Stock is then listed);
(h) promptly
notify the Investors, at any time prior to the end of the Effectiveness Period, (1) when a Registration Statement has become effective
and when any post-effective amendments and supplements thereto become effective, (2) of any request by the SEC or any state securities
authority for post-effective amendments and supplements to a Registration Statement and Prospectus or for additional information after
the Registration Statement has become effective, (3) of the issuance by the SEC or any state securities authority of any stop order
suspending the effectiveness of a Registration Statement or the initiation of any proceedings for that purpose and (4) upon discovery
that, or upon the happening of any event as a result of which, the Prospectus contains an 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 not misleading in light of the circumstances
then existing (provided, that such notice shall not, without the prior written consent of the applicable Investor, disclose any
material non-public information regarding the Company), and as promptly as reasonably practicable, prepare, file with the SEC and furnish
to such holder a supplement to or an amendment of such Prospectus as may be necessary so that such Prospectus shall not include an untrue
statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein
not misleading in light of the circumstances then existing; and
(i) otherwise
use commercially reasonable efforts to comply with all applicable rules and regulations of the SEC under the 1933 Act and the 1934
Act, including, without limitation, Rule 172 under the 1933 Act, file any final Prospectus, including any supplement or amendment
thereof, with the SEC pursuant to Rule 424 under the 1933 Act, promptly inform the Investors in writing if, at any time during the
Effectiveness Period, the Company does not satisfy the conditions specified in Rule 172 and, as a result thereof, the Investors
are required to deliver a Prospectus in connection with any disposition of Registrable Securities and take such other actions as may
be reasonably necessary to facilitate the registration of the Registrable Securities hereunder.
4. Obligations of the Investors.
(a) Each
Investor shall deliver to the Company a selling stockholder questionnaire, in the form set forth on Annex A hereto, prior to the Closing
Date. Each Investor shall additionally furnish in writing to the Company such other information regarding itself, the Registrable Securities
held by it and the intended method of disposition of the Registrable Securities held by it, as shall be reasonably required to effect
the registration of such Registrable Securities and shall execute such documents in connection with such registration as the Company
may reasonably request. At least three (3) Business Days prior to the first anticipated filing date of any Registration Statement,
the Company shall notify each Investor of the additional information the Company requires from such Investor if such Investor elects
to have any of the Registrable Securities included in such Registration Statement (the “Registration Information Notice”).
An Investor shall provide such information to the Company no later than two (2) Business Days following receipt of a Registration
Information Notice if such Investor elects to have any of the Registrable Securities included in such Registration Statement. It is agreed
and understood that it shall be a condition precedent to the obligations of the Company to complete the registration pursuant to this
Agreement with respect to the Registrable Securities of a particular Investor that such Investor furnish to the Company such information
regarding itself, the Registrable Securities held by it and the intended method of disposition of the Registrable Securities held by
it as shall be reasonably required to effect the effectiveness of the registration of such Registrable Securities.
(b) Each
Investor, by its acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably requested by the Company
in connection with the preparation and filing of a Registration Statement hereunder, unless such Investor has notified the Company in
writing of its election to exclude all of its Registrable Securities from such Registration Statement.
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(c) Each
Investor agrees that, upon receipt of any notice from the Company (which notice shall not include material non-public information) of
either (i) the commencement of an Allowed Delay pursuant to Section 2(c)(ii) or (ii) the happening of an event
pursuant to Section 3(h) hereof, such Investor will immediately discontinue disposition of Registrable Securities pursuant
to any Registration Statement covering such Registrable Securities, until the Investor is advised by the Company that such dispositions
may again be made.
(d) Each
Investor covenants and agrees that it will comply with the prospectus delivery requirements of the 1933 Act as applicable to it or an
exemption therefrom in connection with sales of Registrable Securities pursuant to any Registration Statement.
5. Indemnification.
(a) Indemnification
by the Company. The Company will indemnify and hold harmless each Investor and its officers, directors, members, managers, partners
and agents and successors and assigns, and each other Person, if any, who controls such Investor (within the meaning of Section 15
of the 1933 Act or Section 20 of the 1934 Act) and the officers, directors, partners, members and managers of each such controlling
Person (each, an “Indemnified Party”), against any losses, claims, damages, liabilities, costs (including, without
limitation, reasonable external attorneys’ fees) and expenses (collectively, “Losses”), insofar as such Losses
arise out of or are based upon any untrue statement or alleged untrue statement or omission or alleged omission of any material fact
contained in any Registration Statement, any preliminary Prospectus or final Prospectus, or any amendment or supplement thereof, any
violation or alleged violation by the Company of the 1933 Act, the 1934 Act, any other law, including, without limitation, any state
securities law, or any rule or regulation thereunder relating to the offer or sale of the Registrable Securities pursuant to a Registration
Statement (collectively, “Violations” and shall reimburse each Indemnified Party upon demand for reasonable and documented
fees and expenses of counsel and other expenses incurred by it in connection with investigating, preparing to defend or defending, or
providing evidence in or preparing to serve or serving as a witness with respect thereto); provided, however, that the
Company will not be liable in any such case if and to the extent that any such claim arises out of or is based upon (i) an untrue
statement or alleged untrue statement or omission or alleged omission so made in conformity with information furnished by such Investor
or any such controlling person in writing specifically for use in such Registration Statement or Prospectus and was reviewed and approved
in writing by such Investor expressly for use in the Registration Statement, (ii) the use by an Investor of an outdated or defective
Prospectus after the Company has notified such Investor in writing that such Prospectus is outdated or defective or (iii) an Investor’s
failure to send or give a copy of the Prospectus or supplement (as then amended or supplemented), if required (and not exempted) to the
Persons asserting an untrue statement or omission or alleged untrue statement or omission at or prior to the written confirmation of
the sale of Registrable Securities.
(b) Indemnification
by the Investors. Each Investor agrees, severally and not jointly, to indemnify and hold harmless, to the fullest extent permitted
by law, the Company, its officers, directors, members, managers, partners and agents and successors and assigns and each Person who controls
the Company (within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act), and the officers, directors,
partners, members and managers of each such controlling Person, against any Losses resulting from any Violations, to the extent that
such untrue statement or omission is contained in any information regarding such Investor and furnished in writing by such Investor to
the Company specifically for inclusion in such Registration Statement or Prospectus or amendment or supplement thereto and was reviewed
and approved in writing by such Investor expressly for use in such Registration Statement or Prospectus or amendment or supplement thereto.
In no event shall the aggregate liability of an Investor under this Section 5 be greater than the dollar amount of the proceeds
(net of all expenses paid by such Investor in connection with a claim relating to this Section 5 and the amount of any damages
such Investor has otherwise been required to pay by reason of such untrue statement or omission) received by such Investor upon the sale
of the Registrable Securities included in such Registration Statement giving rise to such indemnification obligation.
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(c) Conduct
of Indemnification Proceedings. Any person entitled to indemnification hereunder shall (i) give prompt notice to the indemnifying
party of any claim with respect to which it seeks indemnification and (ii) permit such indemnifying party to assume the defense
of such claim with counsel reasonably satisfactory to the Indemnified Party; provided, that any person entitled to indemnification
hereunder shall have the right to employ separate counsel and to participate in the defense of such claim, but the fees and expenses
of such counsel shall be at the expense of such person unless (A) the indemnifying party has agreed in writing to pay such fees
or expenses, (B) the indemnifying party shall have failed to assume the defense of such claim and employ counsel reasonably satisfactory
to such person or (C) in the reasonable judgment of any such person, based upon written advice of its counsel, a material conflict
of interest exists between such person and the indemnifying party with respect to such claims (in which case, if the person notifies
the indemnifying party in writing that such person elects to employ separate counsel at the expense of the indemnifying party, the indemnifying
party shall not have the right to assume the defense of such claim on behalf of such person); and provided, further that the failure
of any Indemnified Party to give notice as provided herein shall not relieve the indemnifying party of its obligations hereunder, except
to the extent that such failure to give notice shall materially adversely affect the indemnifying party in the defense of any such claim
or litigation. It is understood that the indemnifying party shall not, in connection with any proceeding in the same jurisdiction, be
liable for fees or expenses of more than one separate firm of attorneys at any time for all such indemnified parties. No indemnifying
party will, except with the consent of the Indemnified Party, which consent shall not be unreasonably withheld, conditioned or delayed,
consent to entry of any judgment or enter into any settlement unless such judgment or settlement (i) imposes no liability or obligation
on, (ii) includes as an unconditional term thereof the giving of a complete, explicit and unconditional release from the party bringing
such indemnified claims of all liability of the Indemnified Party in respect of such claim or litigation in favor of, and (iii) does
not include any admission of fault, culpability, wrongdoing or malfeasance by or on behalf of, the Indemnified Party. No Indemnified
Party will, except with the prior written consent of the indemnifying party, which consent shall not be unreasonably withheld, conditioned
or delayed, consent to entry of any judgment or enter into any settlement and no indemnifying party shall be liable for any such settlement
or consent to entry of judgment entered into by such Indemnified Party without its consent.
(d) Contribution.
If for any reason the indemnification provided for in the preceding paragraphs (a) and (b) is unavailable to an Indemnified
Party or insufficient to hold it harmless, other than as expressly specified therein, then the indemnifying party shall contribute to
the amount paid or payable by the Indemnified Party as a result of such claim in such proportion as is appropriate to reflect the relative
fault of the Indemnified Party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault
of such 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 of a material fact, has been taken
or made by, or relates to information supplied by, such indemnifying party or Indemnified Party, and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable
by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in this Agreement, any reasonable
attorneys’ or other fees or expenses incurred by such party in connection with any Proceeding to the extent such party would have
been indemnified for such fees or expenses if the indemnification provided for in this Section 5 was available to such party
in accordance with its terms. No person guilty of fraudulent misrepresentation within the meaning of Section 11(f) of the 1933
Act shall be entitled to contribution from any person not guilty of such fraudulent misrepresentation. In no event shall the contribution
obligation of a holder of Registrable Securities under this Section 5(d) together with all of its other obligations
under this Section 5 be greater in amount than the dollar amount of the proceeds (net of all expenses paid by such holder
in connection with any claim relating to this Section 5 and the amount of any damages such holder has otherwise been required
to pay by reason of such untrue or alleged untrue statement or omission or alleged omission) received by it upon the sale of the Registrable
Securities giving rise to such contribution obligation.
6. Miscellaneous.
(a) Amendments
and Waivers. This Agreement may be amended only by a writing signed by the Company and the Required Investors; provided, that
this Agreement may not be amended with respect to any Investor without the written consent of such Investor. The Company may take any
action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company shall have obtained the
written consent to such amendment, action or omission to act, of the Required Investors; provided, that any such action or omission
that complies with the foregoing, but that disproportionately and adversely affects the rights and obligations of any Investor relative
to the comparable rights and obligations of the other Investors shall require the prior written consent of such adversely affected Investor
or each Investor, as applicable.
(b) Rule 144.
The Company shall use its commercially reasonable efforts to (i) file with the SEC in a timely manner all reports and other documents
required to be filed by it under the 1933 Act and the 1934 Act, (ii) make and keep adequate current public information available
within the meaning of Rule 144 and (iii) take such further action as the Investors may reasonably request, all to the extent
required to enable such Persons to sell securities pursuant to Rule 144 or any similar rule or regulation hereafter adopted
by the SEC.
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(c) Notices.
All notices and other communications provided for or permitted hereunder shall be made as set forth in Section 5.4 of the
Purchase Agreement.
(d) Assignments
and Transfers by Investors. The provisions of this Agreement shall be binding upon and inure to the benefit of the Investors and
their respective successors and permitted assigns. An Investor may transfer or assign, in whole or from time to time in part, to one
or more persons its rights or delegate its obligations hereunder in connection with the transfer of Registrable Securities by such Investor
to such person, provided that (I) immediately following such transfer or assignment the further disposition of such securities by
the transferee or assignee is restricted under the 1933 Act or applicable state securities laws; (II) such transfer shall have been
made in accordance with the applicable requirements of the Purchase Agreement; and (III) prior to such assignment (i) the Investor
agrees in writing with the transferee or assignee to assign such rights and delegate such obligations and a copy of such agreement is
furnished to the Company; (ii) the Company is furnished with written notice of (A) the name and address of such transferee
or assignee and (B) the securities with respect to which such registration rights are being transferred or assigned; (iii) at
or before the time the Company receives the written notice contemplated by clause (ii) of this sentence the transferee or assignee
agrees in writing with the Company to be bound by all of the provisions contained herein.
(e) Assignments
and Transfers by the Company. This Agreement may not be assigned by the Company (whether by operation of law or otherwise) without
the prior written consent of the Required Investors; provided, however, that this Agreement may not be assigned with respect
to any Investor in a materially adverse and non pro rata manner without the written consent of such Investor.
(f) Benefits
of the Agreement. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective
permitted successors and assigns of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party
other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by
reason of this Agreement, except as expressly provided in this Agreement.
(g) Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument. Counterparts may be delivered via electronic mail (including pdf or any electronic signature
complying with the U.S. ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart so delivered
shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.
(h) Titles
and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing
or interpreting this Agreement.
(i) Severability.
Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof but shall be interpreted as
if it were written so as to be enforceable to the maximum extent permitted by applicable law, and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. To the extent permitted by
applicable law, the parties hereby waive any provision of law which renders any provisions hereof prohibited or unenforceable in any
respect.
(j) Further
Assurances. The parties shall execute and deliver all such further instruments and documents and take all such other actions as may
reasonably be required to carry out the transactions contemplated hereby and to evidence the fulfillment of the agreements herein contained.
(k) Entire
Agreement. The Transaction Documents, together with the exhibits and schedules thereto, are intended by the parties as a final
expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of the parties
hereto and thereto in respect of the subject matter contained herein and therein. The Transaction Documents supersede all prior agreements
and understandings between the parties with respect to the subject matter hereof and thereof.
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(l) Use
of Single Agreement. For ease of administration, this single Agreement is being executed so as to enable each Investor identified
on the signature page of the Purchase Agreement to enter into an Agreement, severally, but not jointly. The parties agree that (i) this
Agreement shall be treated as if it were a separate agreement with respect to each Investor listed on the signature page of the
Purchase Agreement, as if each Investor entity had executed a separate Agreement naming only itself as Investor, and (ii) no Investor
listed on the signature page of the Purchase Agreement shall have any liability under this Agreement for obligations of any other
Investor so listed.
(m) Governing
Law; Consent to Jurisdiction; Waiver of Jury Trial. All questions concerning the construction, validity, enforcement and interpretation
of the Transaction Documents shall be governed by and construed and enforced in accordance with the internal laws of the State of New
York. Each party agrees that it shall commence any Actions or Proceedings concerning the interpretations, enforcement and defense of
the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective
affiliates, directors, officers, shareholders, partners, members, employees or agents) exclusively in the state and federal courts sitting
in the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting
in the State of 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 any of the Transaction Documents), 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
Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained
herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. IN ANY ACTION, SUIT, OR PROCEEDING
IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT
PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.
(n) Remedies.
In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of the Investors
and the Company will be entitled to specific performance under the Transaction Documents.
(o) Interpretation.
Wherever required by the context of this Agreement, the singular shall include the plural and vice versa, and the masculine gender shall
include the feminine and neuter genders and vice versa, and references to any agreement, document or instrument shall be deemed to refer
to such agreement, document or instrument as amended, supplemented or modified from time to time. All article, section, paragraph or
clause references not attributed to a particular document shall be references to such parts of this Agreement, and all exhibit, annex,
letter and schedule references not attributed to a particular document shall be references to such exhibits, annexes, letters and schedules
to this Agreement. In addition, the word “or” is not exclusive; the words “including,” “includes,”
“included” and “include” are deemed to be followed by the words “without limitation”; and the terms
“herein,” “hereof” and “hereunder” and other words of similar import refer to this Agreement as a
whole and not to any particular section, paragraph or subdivision.
(p) Independent
Nature of Investors’ Obligations and Rights. The obligations of each Investor hereunder are several and not joint with
the obligations of any other Investor hereunder, and no Investor shall be responsible or disadvantaged in any way for the performance,
or failure thereof, of the obligations of any other Investor hereunder. Nothing contained herein or in any other agreement or document
delivered at any closing, and no action taken by any Investor pursuant hereto or thereto, shall be deemed to constitute the Investors
as a partnership, an association, a joint venture or any other kind of group or entity, or create a presumption that the Investors are
in any way acting in concert or as a group or entity with respect to such obligations or the transactions contemplated by this Agreement
or any other matters, and the Company acknowledges that the Investors are not acting in concert or as a group, and the Company shall
not assert any such claim, with respect to such obligations or transactions. Each Investor shall be entitled to protect and enforce its
rights, including without limitation the rights arising out of this Agreement, and it shall not be necessary for any other Investor to
be joined as an additional party in any proceeding for such purpose. The use of a single agreement with respect to the obligations of
the Company contained was solely in the control of the Company, not the action or decision of any Investor, and was done solely for the
convenience of the Company and not because it was required or requested to do so by any Investor. It is expressly understood and agreed
that each provision contained in this Agreement is between the Company and an Investor, solely, and not between the Company and the Investors
collectively and not between and among Investors.
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(q) Non-Recourse.
Notwithstanding anything that may be expressed or implied in this Agreement, the Company covenants, agrees and acknowledges that no recourse
under this Agreement or any documents or instruments delivered in connection with this Agreement shall be had against any current or
future director, officer, employee, stockholder general or limited partner or member of the Investors or of any affiliates or assignees
thereof, whether by the enforcement of any assessment or by any legal or equitable proceeding, or by virtue of any statute, regulation
or other applicable law, it being expressly agreed and acknowledged that no personal liability whatsoever shall attach to, be imposed
on or otherwise be incurred by any current or future director, officer, employee, stockholder, general or limited partner or member of
the Investors or of any affiliates or assignees thereof, as such for any obligation of the Investors under this Agreement or any documents
or instruments delivered in connection with this Agreement for any claim based on, in respect of or by reason of such obligations or
their creation.
[Remainder of page intentionally left blank]
10
IN WITNESS WHEREOF, the parties
have executed this Agreement or caused their duly authorized officers to execute this Agreement as of the date first above written.
COMPANY:
XBP GLOBAL HOLDINGS, INC.
By:
Name:
Title:
[Signature Page to Registration Rights
Agreement]
IN WITNESS WHEREOF, the parties
have executed this Agreement or caused their duly authorized officers to execute this Agreement as of the date first above written.
INVESTOR:
By:
Name:
Title:
[Signature Page to
Registration Rights Agreement]
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