Exhibit 10.1

DRONE AVIATION HOLDING CORP.
COMMON STOCK PURCHASE AGREEMENT

This Common Stock Purchase Agreement (this “ Agreement ”) is made as of November [__], 2015 by and among Drone Aviation Holding Corp . , a Nevada corporation with its principal office at 11651 Central Parkway #118, Jacksonville, FL 32224 (the “ Company ”), and those purchasers listed on the attached Exhibit A, as such exhibit may be amended from time to time (each a “ Purchaser ”, and collectively, the “ Purchasers ”).

R ecitals

A.             The Company has authorized the sale and issuance of shares (the “ Shares ” or “ Securities ”) of the common stock of the Company, $0.0001 par value per share (the “ Common Stock ”) to certain investors in a private placement (the “ Offering ”).

B.             Pursuant to Section 4(a)(2) of the Securities Act of 1933 (the “ Securities Act ”) and Rule 506(b) promulgated thereunder, the Company desires to sell to the Purchasers listed on the attached Exhibit A , as such exhibit may be amended from time to time, and such Purchasers, severally and not jointly, desire to purchase from the Company that aggregate number of shares of Common Stock set forth opposite such Purchaser’s name on Exhibit A on the terms and subject to the conditions set forth in this Agreement.

Terms and Conditions

Now, therefore, in consideration of the foregoing recitals and the mutual covenants and agreements contained herein, the parties hereto, intending to be legally bound, do hereby agree as follows:

1.           Purchase of the Securities.

1.1             Agreement to Sell and Purchase. At each Closing (as hereinafter defined), the Company will issue and sell to each of the Purchasers, and each Purchaser will, severally and not jointly, purchase from the Company, the number of Shares set forth opposite such Purchaser’s name on Exhibit A for an aggregate purchase price set forth opposite such Purchaser’s name on Exhibit A (the “ Purchase Price ”).

1.2             Placement Agent Fee . The Purchasers acknowledge that the Company intends to pay to Dougherty & Company LLC, in its capacity as the placement agent for the Offering (the “ Placement Agent ”), a fee in respect of the sale of Securities to any Purchaser, as well as issue warrants to the Placement Agent.

1.3           Closing; Closing Date; Additional Closings.

(a)             Initial Closing . The initial completion of the sale and purchase of the Securities (the “ Initial Closing ”) shall be held at 9:00 a.m. (Central Time) as soon as practicable following the satisfaction of the conditions set forth in Section 4 (the “ Initial Closing Date ”), remotely by facsimile or other electronic transmission of documents or at such other time and place as the Company and Purchasers may agree. In the event there is more than one closing, the terms “ Closing ” and “ Closing Date ” shall apply to each such closing and closing date unless otherwise specified and “Final Closing ” and “ Final Closing Date ” shall apply to the final Closing of the Offering.

(b)             Additional Closing . After the Initial Closing, the Company may sell, on the same terms and conditions as those contained in this Agreement, additional Securities (subject to appropriate adjustment in the event of any stock dividend, stock split, combination or similar recapitalization affecting such shares) (the “ Additional Securities ” and the Additional Securities will be considered “ Securities ”), to one or more purchasers (the “ Additional Purchasers ” and the Additional Purchasers will be considered “ Purchasers ”), provided that (i) such subsequent sale is consummated prior to 90 days after the Initial Closing, and (ii) each Additional Purchaser shall become a party to this Agreement by executing and delivering a counterpart signature page to this Agreement. Exhibit A to this Agreement shall be updated to reflect the number of Additional Securities purchased at each such Closing and the parties purchasing such Additional Securities.

1.4           Delivery of the Shares. At each Closing, subject to the terms and conditions hereof, the Company will deliver to each Purchaser a stock certificate or certificates in such denominations and registered in such names as such Purchaser may designate by notice to the Company, representing the Securities, dated as of such Closing Date (each a “ Certificate ”), against payment of the purchase price therefor by cash in the form of wire transfer, unless other means of payment shall have been agreed upon by the Purchasers and the Company.

2.          Representations and Warranties of the Company. The Company hereby represents and warrants to each Purchaser:

2.1           Authorization. All corporate action on the part of the Company, its officers, directors and shareholders necessary for the authorization, execution and delivery of this Agreement has been taken. The Company has the requisite corporate power to enter into this Agreement and carry out and perform its obligations under the terms of this Agreement. At each Closing, the Company will have the requisite corporate power to issue and sell the Securities. This Agreement has been duly authorized, executed and delivered by the Company and, upon due execution and delivery by the Purchasers, this Agreement will be a valid and binding agreement of the Company, enforceable against the Company in accordance with its terms, except as rights to indemnity hereunder may be limited by federal or state securities laws and except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally or by equitable principles.

2.2           No Conflict with Other Instruments. The execution, delivery and performance of this Agreement, the issuance and sale of the Securities to be sold by the Company under this Agreement and the consummation of the actions contemplated by this Agreement will not (A) result in a violation of, be in conflict with, or constitute a default under, with or without the passage of time or the giving of notice: (i) any provision of the Company’s or its subsidiaries’ Articles of Incorporation or Bylaws as in effect on the date hereof or at each Closing; (ii) any provision of any judgment, arbitration ruling, decree or order to which the Company or its subsidiaries are a party or by which they are bound; (iii) any bond, debenture, note or other evidence of indebtedness, or any lease, contract, mortgage, indenture, deed of trust, loan agreement, joint venture or other agreement, instrument or commitment to which the Company or any subsidiary is a party or by which they or their respective properties are bound; or (iv) any statute, rule, law or governmental regulation or order applicable to the Company or any of its subsidiaries; or (B) result in the creation or imposition of any lien, encumbrance, claim, security interest or restriction whatsoever upon any of the properties or assets of the Company or any subsidiary or any acceleration of indebtedness pursuant to any obligation, agreement or condition contained in any bond, debenture, note or any other evidence of indebtedness or any indenture, mortgage, deed of trust or any other agreement or instrument to which the Company or any subsidiary are a party or by which they are bound or to which any of the property or assets of the Company or any subsidiary is subject other than such conflicts, defaults or rights that could not reasonably be expected to have a Material Adverse Effect. No consent, approval, authorization or other order of, or registration, qualification or filing with, any regulatory body, administrative agency, or other governmental body is required for the execution and delivery of this Agreement by the Company and the valid issuance or sale of the Securities by the Company pursuant to this Agreement, other than such as have been made or obtained and that remain in full force and effect and except for the filing of a Form D or any filings required to be made under state securities laws. “ Material Adverse Effect ” means any material adverse effect on (i) the business, properties, assets, liabilities, operations (including results thereof), condition (financial or otherwise) or prospects of the Company or any Subsidiary, either individually or taken as a whole, (ii) the transactions contemplated hereby or in any of the other Transaction Documents or (iii) the authority or ability of the Company or any of its Subsidiaries to perform any of their respective obligations under any of the Transaction Documents. Other than as set forth on Schedule 2.2(a), the Company has no Subsidiaries. “ Subsidiaries ” means any Person in which the Company, directly or indirectly, (I) owns any of the outstanding capital stock or holds any equity or similar interest of such Person or (II) controls or operates all or any part of the business, operations or administration of such Person, and each of the foregoing, is individually referred to herein as a “ Subsidiary .”

2.3           Articles of Incorporation; Bylaws. The Company has made publicly available on the SEC’s EDGAR system true, correct and complete copies of the Articles of Incorporation and Bylaws of the Company, as in effect on the date hereof.

2.4           Organization, Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada and has all requisite corporate power and authority to carry on its business as now conducted. The Company and each of its subsidiaries has full power and authority to own, operate and occupy its properties and to conduct its business as presently conducted and is duly qualified to transact business and is in good standing in each jurisdiction in which the failure so to qualify would have a Material Adverse Effect.

2.5           SEC Filings; Financial Statements. As used herein, the “ Company SEC Documents ” means all reports, schedules, forms, statements and other documents filed or furnished, as applicable, by the Company under the Securities Exchange Act of 1934 (the “ Exchange Act ”), including pursuant to Section 13(a) or 15(d) thereof, including the exhibits thereto and documents incorporated by reference therein during the period commencing December 31, 2014 and ending on the date hereof. As of their respective filing dates, true, correct and complete copies of each of the SEC Documents are available on the SEC’s EDGAR system. The Company SEC Documents complied in all material respects with the requirements of the Securities Act and the Exchange Act and the rules and regulations of the Securities and Exchange Commission (the “ SEC ”) promulgated thereunder, and none of these Company SEC Documents, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein in light of the circumstances under which they were made not misleading. As of the date of filing, the consolidated financial statements contained in the Company SEC Documents: (i) complied in all material respects with applicable accounting requirements and the published rules and regulations of the SEC applicable thereto; (ii) were prepared in accordance with generally accepted accounting principles applicable in the United States applied on a consistent basis throughout the periods covered, except as may be indicated in the notes to such financial statements and (in the case of unaudited statements) as permitted by Form 10-Q of the SEC, and except that unaudited financial statements may not contain footnotes and are subject to yearend audit adjustments; and (iii) fairly present the consolidated financial position of the Company and its subsidiaries as of the respective dates thereof and the consolidated results of operations cash flows and the changes in shareholders’ equity of the Company and its subsidiaries for the periods covered thereby.

2.6           Capitalization. As of immediately prior to the Initial Closing Date, the authorized capital stock of the Company consists of:

(i)            300,000,000 shares of Common Stock, of which (A) 2,493,834 shares were issued and outstanding as of the date of this Agreement, and (B) 2,337,744 shares are reserved for issuance upon the exercise or conversion, as the case may be, of outstanding options, warrants or other convertible securities as of the date of this Agreement;

(ii)           595,000 shares of Series A Convertible Preferred Stock, 190,021 of which, as of the date of this Agreement, are outstanding and none of which are reserved for issuance upon the exercise or conversion of outstanding options, warrants or other convertible securities;

(iii)           324,671 shares of Series B Convertible Preferred Stock, 324,651 of which, as of the date of this Agreement, are outstanding and none of which are reserved for issuance upon the exercise or conversion of outstanding options, warrants or other convertible securities;

(iv)           156,231 shares of Series B-1 Convertible Preferred Stock, 68,731 of which, as of the date of this Agreement, are outstanding and none of which are reserved for issuance upon the exercise or conversion of outstanding options, warrants or other convertible securities;

(v)           355,000 shares of Series C Convertible Preferred Stock, 305,400 of which, as of the date of this Agreement, are outstanding and none of which are reserved for issuance upon the exercise or conversion of outstanding options, warrants or other convertible securities;

(vi)           36,050,000 shares of Series D Convertible Preferred Stock, 20,000,000 of which, as of the date of this Agreement, are outstanding and none of which are reserved for issuance upon the exercise or conversion of outstanding options, warrants or other convertible securities;

(vii)          5,400,000 shares of Series E Convertible Preferred Stock, 2,800,000 of which, as of the date of this Agreement, are outstanding and none of which are reserved for issuance upon the exercise or conversion of outstanding options, warrants or other convertible securities;

(viii)         3,300,999 shares of Series F Convertible Preferred Stock, 3,300,999 of which, as of the date of this Agreement, are outstanding and none of which are reserved for issuance upon the exercise or conversion of outstanding options, warrants or other convertible securities; and

(ix)           8,000,000 shares of Series G Convertible Preferred Stock, 4,000,000 of which, as of the date of this Agreement, are outstanding and none of which are reserved for issuance upon the exercise or conversion of outstanding options, warrants or other convertible securities.

The outstanding shares of the Series A Convertible Preferred Stock, Series B Convertible Preferred Stock, Series B-1 Convertible Preferred Stock, Series C Convertible Preferred Stock, Series D Convertible Preferred Stock, Series E Convertible Preferred Stock, Series F Convertible Preferred Stock and Series G Convertible Preferred Stock are convertible into 2,000,912 shares of Common Stock immediately prior to the Initial Closing. All issued and outstanding shares of capital stock have been duly authorized and validly issued, are fully paid and nonassessable, have been issued and sold in compliance with the registration requirements of federal and state securities laws or an applicable exemption therefrom, or the applicable statutes of limitation have expired, and were not issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. Except as set forth on Schedule 2.6 or the Company SEC Documents (including the Exhibits thereto), there are no (i) outstanding rights (including, without limitation, preemptive rights), warrants or options to acquire, or instruments convertible into or exchangeable for, any unissued shares of capital stock or other equity interest in the Company, or any contract, commitment, agreement, understanding or arrangement of any kind to which the Company or any subsidiary is a party and relating to the issuance or sale of any capital stock or convertible or exchangeable security of the Company or any subsidiary, other than options granted to directors and employees of the Company and its subsidiaries pursuant to its 2015 Equity Incentive Plan; or (ii) obligations of the Company to purchase redeem or otherwise acquire any of its outstanding capital stock or any interest therein or to pay any dividend or make any other distribution in respect thereof. Except as disclosed in the Company SEC Documents (or Exhibits thereto): there are no anti-dilution or price adjustment provisions, co-sale rights, registration rights, rights of first refusal or other similar rights contained in the terms governing any outstanding security of the Company that will be triggered by the issuance of the Securities; and no person has any right to cause the Company to effect the registration under the Securities Act of any securities of the Company except as provided in this Agreement. All per share and dollar amounts set forth in this Agreement are reflective of a reverse split of the Company’s issued and outstanding Common Stock on a 1 for 40 basis, which was effective on October 30, 2015.

2.7           Subsidiaries. Except as set forth on Schedule 2.2(a) , the Company does not presently own or control, directly or indirectly, and has no stock or other interest as owner or principal in, any other corporation or partnership, joint venture, association or other business venture or entity (each a “ subsidiary ”). Each subsidiary is duly incorporated or organized, validly existing and, if applicable to the jurisdiction, in good standing under the laws of its jurisdiction of incorporation or organization and has all requisite power and authority to carry on its business as now conducted. Each subsidiary is duly qualified to transact business and is in good standing in each jurisdiction in which the failure to so qualify would have a Material Adverse Effect. All of the outstanding capital stock or other securities of each subsidiary is owned by the Company, directly or indirectly, free and clear of any liens, claims, or encumbrances.

2.8           Valid Issuance of Securities. The Securities are duly authorized and, when issued, sold and delivered and paid for in accordance with the terms hereof, will be duly and validly authorized and issued, fully paid and nonassessable, free from all taxes, liens, claims, encumbrances and charges with respect to the issue thereof; provided, however, that the Securities may be subject to restrictions on transfer under state and/or federal securities laws or as otherwise set forth herein. The issuance, sale and delivery of the Securities in accordance with the terms of this Agreement will not be subject to preemptive rights of shareholders of the Company.

2.9           Offering. Assuming the accuracy of the representations of the Purchasers in Section 3.3 of this Agreement on the date hereof and on each Closing Date, the offer, issue and sale of the Securities are and will be exempt from the registration and prospectus delivery requirements of the Securities Act and have been or will be registered or qualified (or are or will be exempt from registration and qualification) under the registration, permit or qualification requirements of all applicable state securities laws. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf, has directly or indirectly made any offers or sales of any security or solicited any offers to buy any security under circumstances that would require registration under the Securities Act of the issuance of the Securities to the Purchasers. Other than the Company SEC Documents and the Transaction Documents, the Company has not distributed and will not distribute prior to each Closing Date any offering material in connection with the offering and sale of the Securities. The Company has not taken any action to sell, offer for sale or solicit offers to buy any securities of the Company which would bring the offer, issuance or sale of the Securities within the registration provisions of Section 5 of the Securities Act, unless such offer, issuance or sale was or shall be within the exemptions of the Securities Act.

2.10         Litigation. Except as set forth in the Company SEC Documents or on Schedule 2.10 hereto, there is no action, suit, proceeding nor investigation pending or, to the Company’s knowledge, currently threatened against the Company or any of its subsidiaries that (a) if adversely determined would reasonably be expected to have a Material Adverse Effect or (b) would be required to be disclosed in the Company’s Annual Report on Form 10-K under the requirements of Item 103 of Regulation S-K. The foregoing includes, without limitation, any action, suit, proceeding or investigation, pending or to the Company’s knowledge threatened, that questions the validity of this Agreement or the right of the Company to enter into this Agreement and perform its obligations hereunder. Neither the Company nor any subsidiary is subject to any injunction, judgment, decree or order of any court, regulatory body, arbitral panel, administrative agency or other government body of which it has received written notice.

2.11         Governmental Consents. No consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing with, any federal, state, local or provincial governmental authority on the part of the Company or any of its subsidiaries is required in connection with the consummation of the transactions contemplated by this Agreement, except for notices required or permitted to be filed with certain state and federal securities commissions, which notices will be filed on a timely basis. 

2.12           No Brokers. Except for any fees payable to the Placement Agent, no broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection with the transactions contemplated by this Agreement based on arrangements made by the Company.

2.13           Compliance. Neither the Company nor any of its Subsidiaries is in violation of its Articles of Incorporation or Bylaws (or similar organizational documents). Neither the Company nor the subsidiaries have been advised or have reason to believe, that it is not conducting its business in compliance with all applicable laws, rules and regulations of the jurisdictions in which it is conducting business, including, without limitation, all applicable local, state and federal environmental laws and regulations, except where failure to be so in compliance would not have a Material Adverse Effect. Each of the Company and the subsidiaries has all necessary franchises, licenses, certificates and other authorizations from any foreign, federal, state or local government or governmental agency, department or body that are currently necessary for the operation of the business of the Company and its subsidiaries as currently conducted, except where the failure to currently possess such franchises, licenses, certificates and other authorizations would not reasonably be expected to have a Material Adverse Effect.

2.14           No Material Changes. Except as disclosed in the Company SEC Documents, since June 30, 2015, there has been no material adverse change in the assets, liabilities, business, properties, operations, financial condition or results of operations of the Company and its subsidiaries, taken as a whole. Since June 30, 2015, the Company has not declared or paid any dividend or distribution or its capital stock.

2.15           Contracts. Except for matters which are not reasonably likely to have a Material Adverse Effect and those contracts that are substantially or fully performed or expired by their terms, the contracts listed as exhibits to or described in the Company SEC Documents are in full force and effect on the date hereof, and neither the Company nor any applicable subsidiary of the Company nor, to the Company’s knowledge, any other party to such contracts is in breach of or default under any of such contracts. Neither the Company nor any of its subsidiaries has any contracts or agreements that would constitute a material contract as such term is defined in Item 601(b) of Regulation S-K, except for such contracts or agreements that are filed as exhibits to or described in the Company SEC Documents.

2.16           Intellectual Property. The Company and its Subsidiaries own or possess adequate rights or licenses to use all trademarks, trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights, original works, inventions, licenses, approvals, governmental authorizations, trade secrets, know how, customer lists, designs, manufacturing or other processes, computer software, systems, data complication, research results and other intellectual property rights and all applications and registrations therefore (“ Intellectual Property Rights ”) necessary to conduct their respective businesses as now conducted and as proposed to be conducted, except where the failure to do so would not reasonably be expected to, individually or in the aggregate, have a Material Adverse Effect. None of the Company’s or its Subsidiaries’ Intellectual Property Rights have expired, terminated or been abandoned, or are expected to expire, terminate or be abandoned, within three years from the date of this Agreement. The Company has no knowledge of any infringement by the Company or any of its Subsidiaries of Intellectual Property Rights of others. There is no claim, action or proceeding being made or brought, or to the knowledge of the Company or any of its Subsidiaries, being threatened, against the Company or any of its Subsidiaries regarding their Intellectual Property Rights. The Company is not aware of any facts or circumstances which are likely to give rise to any of the foregoing infringements or claims, actions or proceedings. The Company and each of its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all of their Intellectual Property Rights. The Company and each of its Subsidiaries has taken all reasonable steps required in accordance with sound business practice and business judgment to establish and preserve its ownership of all material Intellectual Property with respect to their products and technology. Neither the Company nor any Subsidiary is making unauthorized use of any confidential information or trade secrets of any person. The activities of any of the employees on behalf of the Company or of any Subsidiary do not violate any agreements or arrangements between such employees and third parties are related to confidential information or trade secrets of third parties or that restrict any such employee’s engagement in business activity of any nature. All licenses or other agreements under which (i) the Company or any Subsidiary employs Intellectual Property Rights, or (ii) the Company or any subsidiary has granted rights to others in Intellectual Property Rights owned or licensed by the Company or any Subsidiary are in full force and effect, and there is no default (and there exists no condition which, with the passage of time or otherwise, would constitute a default by the Company or such Subsidiary) by the Company or any subsidiary with respect thereto which would result in a Material Adverse Effect.

2.17           Exchange Compliance. The Company’s common stock is not registered pursuant to the Exchange Act but is qualified to be quoted on the OTCQB Venture Marketplace (the “ Principal Market ”), and the Company has taken no action designed to, or likely to have the effect of, delisting the Common Stock (including the Shares) from the Principal Market. The Company is in compliance with all of the presently applicable requirements for continued quotation of the Common Stock on the Principal Market. The issuance of the Securities does not require shareholder approval including, without limitation, pursuant to the rules and regulations of the Principal Market.

2.18           Accountants. MaloneBailey, LLP and RSSM CPA LLP, who expressed their opinion with respect to the consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 and 2014, respectively have advised the Company that they are, and to the knowledge of the Company they are, independent accountants as required by the Securities Act and the rules and regulations promulgated thereunder. The Company covenants to file its Form 10-K containing audited consolidated financial statements for the year ended December 31, 2015 within the time period required by applicable securities laws (including any permitted extension).

2.19           Taxes. The Company and each of its subsidiaries has filed all necessary federal, state, local and foreign income and franchise tax returns and has paid or accrued all taxes shown as due thereon, and the Company has no knowledge of a tax deficiency which has been or might be asserted or threatened against it or any of its subsidiaries by any taxing jurisdiction.

2.20           Insurance. The Company and each of its subsidiaries maintains and will continue to maintain insurance of the types and in the amounts that the Company reasonably believes is adequate for its business, including, but not limited to, insurance covering all real and personal property owned or leased by the Company and its subsidiaries against theft, damage, destruction, acts of vandalism and all other risks customarily insured against by similarly situated companies, all of which insurance is in full force and effect.

2.21           Transfer Taxes. On each Closing Date, all stock transfer or other taxes (other than income taxes) that are required to be paid in connection with the sale and transfer of the Securities hereunder will be, or will have been, fully paid or provided for by the Company and the Company will have complied with all laws imposing such taxes.

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

2.23           Related Party Transactions . To the knowledge of the Company, no transaction has occurred between or among the Company or any of its affiliates (including, without limitation, any of its subsidiaries), officers or directors or any affiliate or affiliates of any such affiliate, officer or director that with the passage of time will be required to be disclosed pursuant to Section 13, 14 or 15(d) of the Exchange Act other than those transactions that have already been so disclosed or as appear in the SEC Documents.

2.24         Books and Records. The books, records and accounts of the Company and its subsidiaries accurately and fairly reflect, in reasonable detail, the transactions in, and dispositions of, the assets of, and the operations of, the Company and its subsidiaries.

2.25        Disclosure Controls and Internal Controls.

(a)            The Company has established and maintains disclosure controls and procedures (as such term is defined in Rule 13a-15 under the Exchange Act), which (i) are designed to ensure that material information relating to the Company is made known to the Company’s principal executive officer and its principal financial officer by others within the Company particularly during the periods in which the periodic reports required under the Exchange Act are being prepared; and (ii) provide for the periodic evaluation of the effectiveness of such disclosure controls and procedures as of the end of the period covered by the Company’s most recent annual or quarterly report filed with the SEC.

(b)            Except as set forth in the SEC Documents, the Company maintains a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain asset and liability accountability, (iii) access to assets or incurrence of liabilities is permitted only in accordance with management’s general or specific authorization and (iv) the recorded accountability for assets and liabilities is compared with the existing assets and liabilities at reasonable intervals and appropriate action is taken with respect to any difference. Except as set forth in the SEC Documents, the Company maintains disclosure controls and procedures (as such term is defined in Rule 13a-14 under the Exchange Act) that are effective in ensuring that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the rules and forms of the SEC, including, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including its principal executive officer or officers and its principal financial officer or officers, as appropriate, to allow timely decisions regarding required disclosure. Except as set forth in the SEC Documents, the Company is not aware of (i) any significant deficiency in the design or operation of internal controls which could adversely affect the Company’s or any of its subsidiary’s ability to record, process, summarize and report financial data or any material weaknesses in internal controls; or (ii) any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s or any of its subsidiary’s internal controls.

(c)            Except as set forth in the SEC Documents, since the date of the most recent evaluation of such disclosure controls and procedures, there have been no changes that have materially affected, or are reasonably likely to materially affect, the Company’s or any of its subsidiary’s internal control over financial reporting, including any corrective actions with regard to significant deficiencies and material weaknesses.

(d)            Except as described in the Company SEC Documents, there are no material off-balance sheet arrangements (as defined in Item 303 of Regulation S-K), or any other relationships with unconsolidated entities (in which the Company or its control persons have an equity interest) that may have a material current or future effect on the Company’s or any of its/subsidiary’s financial condition, revenues or expenses, changes in financial condition, results of operations, liquidity, capital expenditures or capital resources.

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

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

2.28           Foreign Corrupt Practices . Neither the Company nor any of its subsidiaries nor any director, officer, agent, employee or other person acting on behalf of the Company or any of its subsidiaries has, in the course of its actions for, or on behalf of, the Company (i) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expenses relating to political activity; (ii) made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds; (iii) violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977; or (iv) made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or domestic government official or employee.

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

2.30           Employee Relations . Neither the Company nor any of its subsidiaries is a party to any collective bargaining agreement or employs any member of a union. The Company reasonably believes that its and its subsidiaries’ relations with its employees are good. No executive officer of the Company (as defined in Rule 501(f) of the Securities Act) has notified the Company that such officer intends to leave the Company or otherwise terminate such officer’s employment with the Company. To the knowledge of the Company, no executive officer of the Company is, or is expected to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement, non-competition agreement, or any other contract or agreement or any restrictive covenant, and the continued employment of each such executive officer does not subject the Company to any liability with respect to any of the foregoing matters.

The Company and each of its subsidiaries is in compliance with all federal, state, local and foreign laws and regulations respecting labor, employment and employment practices and benefits, terms and conditions of employment and wages and hours, except where failure to be in compliance would not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

2.31           Environmental Laws . The Company and each of its subsidiaries (i) is in compliance with any and all Environmental Laws (as hereinafter defined), (ii) has received all permits, licenses or other approvals required of it under applicable Environmental Laws to conduct its business and (iii) is in compliance with all terms and conditions of any such permit, license or approval where, in each of the foregoing clauses (i), (ii) and (iii), the failure to so comply could be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect. The term “ Environmental Laws ” means all federal, state, local or foreign laws relating to pollution or protection of human health or the environment (including, without limitation, ambient air, surface water, groundwater, land surface or subsurface strata), including, without limitation, laws relating to emissions, discharges, releases or threatened releases of chemicals, pollutants, contaminants, or toxic or hazardous substances or wastes (collectively, “ Hazardous Materials ”) into the environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands or demand letters, injunctions, judgments, licenses, notices or notice letters, orders, permits, plans or regulations issued, entered, promulgated or approved thereunder. 

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

2.33           Forward-Looking Information . No forward-looking statement (within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act) made by the Company or any of its officers or directors contained in the SEC Documents, or made available to the public generally since December 31, 2014, has been made or reaffirmed without a reasonable basis or has been disclosed other than in good faith.

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

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

3.           Representations and Warranties of the Purchasers. Each Purchaser, severally and not jointly, hereby represents and warrants to the Company as follows:

3.1           Legal Power. The Purchaser has the requisite authority to enter into this Agreement and to carry out and perform its obligations under the terms of this Agreement. All action on the Purchaser’s part required for the lawful execution and delivery of this Agreement have been or will be effectively taken prior to each applicable Closing.

3.2           Due Execution. This Agreement has been duly authorized, executed and delivered by the Purchaser, and, upon due execution and delivery by the Company, this Agreement will be a valid and binding agreement of the Purchaser, except as rights to indemnity hereunder may be limited by federal or state securities laws and except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally or by equitable principles.

3.3           Investment Representations. In connection with the sale and issuance of the Securities, the Purchaser, for itself and no other Purchaser, makes the following representations:

(a)           Investment for Own Account. The Purchaser is acquiring the Securities for its own account, not as nominee or agent, and not with a view to, or for resale in connection with, any distribution or public offering thereof within the meaning of the Securities Act; provided, however, that by making the representations herein, the Purchaser does not agree to hold any of the Securities for any minimum or specific term and reserves the right to dispose of the securities at any time in accordance with or pursuant to a registration statement or an exemption from the registration requirements of the Securities Act.

(b)           Transfer Restrictions; Legends. The Purchaser understands that (i) the Securities have not been registered under the Securities Act; (ii) the Securities are being offered and sold pursuant to an exemption from registration, based in part upon the Company’s reliance upon the statements and representations made by the Purchasers in this Agreement, and that the Securities must be held by the Purchaser indefinitely, and that the Purchaser must, therefore, bear the economic risk of such investment indefinitely, unless a subsequent disposition thereof is registered under the Securities Act or is exempt from such registration; (iii) each Certificate representing the Securities will be endorsed with the following legend until the earlier of (1) such date as the Shares have been registered for resale by the Purchaser or (2) the date the Shares are eligible for sale under Rule 144 under the Securities Act:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ SECURITIES ACT ”), OR UNDER THE SECURITIES LAWS OF ANY STATES. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. UNLESS SOLD PURSUANT TO EITHER AN EFFECTIVE REGISTRATION STATEMENT OR RULE 144 UNDER THE SECURITIES ACT, THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE SECURITIES ACT.

(iv) the Company will instruct any transfer agent not to register the transfer of the Securities (or any portion thereof) until the applicable date set forth in clause (iii) above unless (A) the conditions specified in the foregoing legends are satisfied, (B) if the opinion of counsel referred to above is to the further effect that such legend is not required in order to establish compliance with any provisions of the Securities Act or this Agreement, (C) if the Holder provides the Company with reasonable assurance, such as through a representation letter, that the Securities may be sold pursuant to Rule 144 under the Securities Act, or (D) other reasonably satisfactory assurances of such nature are given to the Company. If so required by the Company’s transfer agent, the Company shall cause its counsel, at the expense of the Company, to issue and deliver a legal opinion to the transfer agent to effect the removal of the restrictive legend contemplated by this Agreement.

The Company acknowledges and agrees that a Purchaser may from time to time pledge, and/or grant a security interest in some or all of the Securities pursuant to a bona fide margin agreement in connection with a bona fide margin account and, if required under the terms of such agreement or account, the Purchaser may transfer pledged or secured Securities to the pledgees or secured parties. Such a pledge or transfer shall not be subject to approval or consent of the Company and no legal opinion of legal counsel to the pledgee, secured party or pledgor shall be required in connection with the pledge, but such legal opinion may be required in connection with a subsequent transfer following default by the Purchaser transferee of the pledge. No notice shall be required of such pledge. At the appropriate Purchaser’s expense, the Company will execute and deliver such reasonable documentation as a pledgee or secured party of Securities may reasonably request in connection with a pledge or transfer of the Securities.

Certificates evidencing the Shares shall not contain any legend (including the legend set forth in this Section): (i) upon the effectiveness of a registration statement covering the Shares, or (ii) following a sale of such Shares pursuant to Rule 144, or (iii) while such Shares are eligible for sale under Rule 144, if such Shares have been held for one year pursuant to the requirements of Rule 144, or (iv) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the Staff of the SEC). Following such time as restrictive legends are not required to be placed on certificates representing Shares, the Company will, no later than three business days following the delivery by a Purchaser to the Company or the Company’s transfer agent of a certificate representing Shares containing a restrictive legend and such other documentation and representations as the Company, its legal counsel or Transfer Agent may reasonably request to confirm compliance with the preceding sentence as applicable (provided, however, that neither the Company nor its legal counsel will require a legal opinion in connection with any sale pursuant to Rule 144), deliver or cause to be delivered to such Purchaser a certificate representing such Shares that is free from all restrictive and other legends. The Company shall cause its counsel to issue a legal opinion to the Company’s transfer agent promptly after the effective date of a registration statement covering the Shares if required by the Company’s transfer agent to effect the removal of the legend hereunder. The Company may not make any notation on its records or give instructions to any transfer agent of the Company that enlarge the restrictions on transfer set forth in this Section. Certificates for Shares subject to legend removal hereunder shall be transmitted by the transfer agent of the Company to the Purchasers by crediting the account of the Purchaser’s prime broker with the Depository Trust Company system. The Company will pay all fees and expenses of its transfer agent and the Depository Trust Company in connection with the removal of legends pursuant to this Section 3.3(b).

Each Purchaser, severally and not jointly with the other Purchasers, agrees that the removal of the restrictive legend from certificates representing Shares as set forth in this Section 3.3(b) is predicated upon the Company’s reliance that the 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.

(c)           Financial Sophistication; Due Diligence. The Purchaser has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of the investment in connection with the transactions contemplated in this Agreement. Such Purchaser has, in connection with its decision to purchase the Securities, relied only upon the representations and warranties contained herein and the information contained in the Company SEC Documents. Further, the Purchaser has had such opportunity to obtain additional information and to ask questions of, and receive answers from, the Company, concerning the terms and conditions of the investment and the business and affairs of the Company, as the Purchaser considers necessary in order to form an investment decision.

(d)           Accredited Investor Status. The Purchaser is an “accredited investor” as such term is defined in Rule 501(a) of the rules and regulations promulgated under the Securities Act.

(e)           Residency. The Purchaser is organized under the laws of the jurisdiction set forth beneath such Purchaser’s name on the signature page attached hereto, and its principal place of operations is in the state set forth beneath such Purchaser’s name on the signature page attached hereto.

(f)           General Solicitation. The Purchaser is not purchasing the Securities as a result of any advertisement, article, notice or other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over the television or radio or presented at any seminar or any other general solicitation or general advertisement. Prior to the time that the Purchaser was first contacted by the Company or the Placement Agent such Purchaser had a pre-existing and substantial relationship with the Company or the Placement Agent.

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

3.5           Additional Acknowledgement. Each Purchaser acknowledges that it has independently evaluated the merits of the transactions contemplated by this Agreement, that it has independently determined to enter into the transactions contemplated hereby, that it is not relying on any advice from or evaluation by any other person. Each Purchaser acknowledges that the Placement Agent has acted solely as placement agent for the Company in connection with the Offering of the Securities by the Company, that the information and data provided to the Purchaser in connection with the transaction contemplated hereby has not been subjected to independent verification by the Placement Agent, and that the Placement Agent has made no representation or warranty whatsoever with respect to the accuracy or completeness of such information, data or other related disclosure material. Each Purchaser acknowledges that it has not taken any actions that would deem the Purchasers to be members of a “group” for purposes of Section 13(d) of the Exchange Act.

3.6           Limited Ownership. The purchase of the Securities issuable to each Purchaser at an applicable Closing will not result in such Purchaser (individually or together with any other person or entity with whom such Purchaser has identified, or will have identified, itself as part of a “group” in a public filing made with the SEC involving the Company’s securities) acquiring, or obtaining the right to acquire, in excess of 19.999% of the outstanding shares of Common Stock or voting power of the Company on a post-transaction basis that assumes that the applicable Closing shall have occurred. Such Purchaser does not presently intend to, along or together with others, make a public filing with the SEC to disclose that it has (or that it together with such other persons or entities have) acquired, or obtained the right to acquire, as a result of the applicable Closing (when added to any other securities of the Company that it or they then own or have the right to acquire), in excess of 19.999% of the outstanding shares of Common Stock or the voting power of the Company on a post-transaction basis that assumes that the applicable Closing shall have occurred.

3.7           No Short Position. As of the date hereof, and as of the date of the public announcement of the Offering, each Purchaser acknowledges and agrees that it does not and will not (between the date hereof and the date of the public announcement of the Offering) engage in any short sale of the Company’s voting stock or any other type of hedging transaction involving the Company’s securities (including, without limitation, depositing shares of the Company’s securities with a brokerage firm where such securities are made available by the broker to other customers of the firm for purposes of hedging or short selling the Company’s securities). 

4.           Conditions to Closing.

4.1           Conditions to Obligations of Purchasers at Closing. Each Purchaser’s obligation to purchase the Securities at a Closing is subject to the fulfillment to that Purchaser’s reasonable satisfaction, on or prior to the Closing, of all of the following conditions, any of which may be waived by the Purchaser:

(a)           Representations and Warranties True; Performance of Obligations. The representations and warranties made by the Company in Section 2 shall be true and correct in all respects on the applicable Closing Date with the same force and effect as if they had been made on and as of said date and the Company shall have performed and complied with all obligations and conditions herein required to be performed or complied with by it on or prior to each Closing and a certificate duly executed by an officer of the Company, to the effect of the foregoing, shall be delivered to the Purchasers.

(b)           Proceedings and Documents. All corporate and other proceedings in connection with the transactions contemplated at each Closing and all documents and instruments incident to such transactions shall be reasonably satisfactory in substance and form to counsel to the Purchaser, and counsel to the Purchaser shall have received all such counterpart originals or certified or other copies of such documents as they may reasonably request. The Company shall have delivered (or caused to have been delivered) to each Purchaser, the certificates required by this Agreement.

(c)           Qualifications, Legal Investment. All authorizations, approvals, or permits, if any, of any governmental authority or regulatory body of the United States or of any state that are required in connection with the lawful sale and issuance of the Securities shall have been duly obtained and shall be effective on and as of each Closing. No stop order or other order enjoining the sale of the Securities shall have been issued and no proceedings for such purpose shall be pending or, to the knowledge of the Company, threatened by the SEC, or any commissioner of corporations or similar officer of any state having jurisdiction over this transaction. At the time of each Closing, the sale and issuance of the Securities shall be legally permitted by all laws and regulations to which Purchasers and the Company are subject. No litigation, statute, rule, regulation, executive order, decree, ruling or injunction will have been enacted, entered, promulgated or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having authority over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated by this Agreement.

(d)           Execution of Agreements. The Company shall have executed this Agreement and have delivered this Agreement to the Purchasers.

(e)            Secretary’s Certificate. The Company shall have delivered to the Purchasers a certificate of the Secretary of the Company certifying as to (i) the truth and accuracy of the resolutions of the board of directors relating to the transaction contemplated hereby (a copy of which shall be included with such certificate) and (ii) the current versions of the Company’s Articles of Incorporation and bylaws.

(f)           Trading and Listing. Trading and quotation of the Company’s common stock on the Principal Market shall not have been suspended by the SEC or the Principal Market.

(g)           Market Listing. The Company will comply with all of the requirements of the Financial Industry Regulatory Authority, Inc. and the Principal Market with respect to the issuance of the Securities and will obtain approval for quotation of the Shares on the Principal Market, as required.

(h)           Blue Sky. The Company shall have obtained all necessary “blue sky” law permits and qualifications, or have the availability of exemptions therefrom, required by any state for the offer and sale of the Securities.

(i)            Material Adverse Change. Since the date of this Agreement, there shall not have occurred any event which results in a Material Adverse Effect.

4.2          Conditions to Obligations of the Company. The Company’s obligation to issue and sell the Securities at the applicable Closing is subject to the fulfillment to the Company’s reasonable satisfaction, on or prior to the applicable Closing of the following conditions, any of which may be waived by the Company:

(a)           Representations and Warranties True. The representations and warranties made by the Purchasers in Section 3 shall be true and correct in all respects on the applicable Closing Date with the same force and effect as if they had been made on and as of said date.

(b)           Performance of Obligations. The Purchasers shall have performed and complied with all agreements and conditions herein required to be performed or complied with by them on or before the applicable Closing. The Purchasers shall have delivered the Purchase Price, by wire transfer, to the account designated by the Company for such purpose.

(c)           Qualifications, Legal Investment. All authorizations, approvals, or permits, if any, of any governmental authority or regulatory body of the United States or of any state that are required in connection with the lawful sale and issuance of the Securities shall have been duly obtained and shall be effective on and as of the applicable Closing. No stop order or other order enjoining the sale of the Securities shall have been issued and no proceedings for such purpose shall be pending or, to the knowledge of the Company, threatened by the SEC, or any commissioner of corporations or similar officer of any state having jurisdiction over this transaction. At the time of the applicable Closing, the sale and issuance of the Securities shall be legally permitted by all laws and regulations to which the Purchasers and the Company are subject. No litigation, statute, rule, regulation, executive order, decree, ruling or injunction will have been enacted, entered, promulgated or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having authority over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated by this Agreement.

(d)           Execution of Agreements. The Purchasers shall have executed this Agreement and delivered this Agreement to the Company.

4.3         Termination of Obligations to Effect Closing; Effects.

(a)           Termination . The obligations of the Company, on the one hand, and the Purchasers, on the other hand, to effect a Closing shall terminate as follows:

(i)           upon the mutual written consent of the Company and the Purchasers;

(ii)          by the Company if any of the conditions set forth in Section 4.2 shall have become incapable of fulfillment, and shall not have been waived by the Company;

(iii)         by a Purchaser (with respect to itself only) if any of the conditions set forth in Section 4.1 shall have become incapable of fulfillment, and shall not have been waived by the Purchaser; or

(iv)         by either the Company or any Purchaser (with respect to itself only) if the Initial Closing has not occurred on or prior to November 30, 2015;

provided, however, that, except in the case of clause (i) above, the party seeking to terminate its obligation to effect a Closing shall not then be in breach of any of its representations, warranties, covenants, or agreements contained in this Agreement if such breach has resulted in the circumstances giving rise to such party’s seeking to terminate its obligation to effect a Closing.

(b)           Effect of Termination . In the event of termination by the Company or any Purchaser of its obligations to effect a Closing pursuant to this Section 4.3, written notice thereof shall be given promptly to the other Purchasers by the Company and the other Purchasers shall have the right to terminate their obligations to effect a Closing upon written notice to the Company and the other Purchasers. Nothing in this Section 4.3 shall be deemed to release any party from any liability for any breach by such party of the terms and provisions of this Agreement or to impair the right of any party to compel specific performance by any other party of its obligations under this Agreement. 

5.           Additional Covenants.

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

5.2           Listing. So long as a Purchaser owns any of the Securities, the Company will use its reasonable efforts to maintain the qualification or listing of its Common Stock, including the Shares, on the Principal Market or an alternative listing on the Over-the-Counter Bulletin Board, NASDAQ Stock Market, New York Stock Exchange or NYSE MKT and will comply in all material respects with the Company’s reporting, filing and other obligations under the rules of such exchanges, as applicable.

5.3         Adjustments in Share Numbers and Prices.

(a)            In the event of any stock split, subdivision, dividend or distribution payable in shares of Common Stock (or other securities or rights convertible into, or entitling the holder thereof to receive directly or indirectly shares of Common Stock), combination or other similar recapitalization or event occurring after the date hereof, each reference in this Agreement to a number of shares or price per share shall be amended appropriately to account for such event.

(b)            For a period of twelve months from the Final Closing Date, other than in connection with (i) full or partial consideration in connection with a strategic merger, acquisition, consolidation or purchase of substantially all of the securities or assets of a corporation or other entity, (ii) the Company’s issuance of securities in connection with strategic license agreements and other partnering arrangements so long as such issuances are not primarily for the purpose of raising capital, (iii) the Company’s issuance of Common Stock or the issuances or grants of options to purchase Common Stock to employees, directors, and consultants that have been approved by a majority of the independent members of the board of directors of the Company, (iv) the Company’s issuance of securities upon the exercise or exchange of or conversion of any securities exercisable or exchangeable for or convertible into shares of Common Stock issued and outstanding on the date of this Agreement on the terms in effect on the Final Closing Date, (v) the Company’s issuance of Common Stock or the issuances or grants of options to purchase Common Stock to consultants and service providers approved by a majority in amount of the Shares sold in the Offering held as of the date of approval (“ Purchaser Consent ”), and (vi) any and all securities required to be assumed by the Company by the terms thereof as a result of any of the foregoing even if issued by a predecessor acquired in connection with a business combination, merger or share exchange (collectively, the foregoing (i) through (vi) are “ Exempt Issuances ”), the Company shall not issue any Common Stock or securities convertible into or exercisable for shares of Common Stock (or modify any of the foregoing which may be outstanding) to any person or entity at a price per share or conversion or exercise price per share which shall be less than $5.00 per share (such issuance, a “ Lower Price Issuance ”), being the per share price of Shares hereunder, without Purchaser Consent other than with regard to Exempt Issuances.

5.4           Non-Public Information. Other than as contemplated hereby, the Company covenants and agrees that neither it nor any other person acting on its behalf will provide any Purchaser or its agents or counsel with any information that the Company believes constitutes material non-public information, unless prior thereto such Purchaser shall have executed a written agreement regarding the confidentiality and use of such information. The Company understands and confirms that each Purchaser shall be relying on the foregoing representations in effecting transactions in securities of the Company. Furthermore, as of the Final Closing Date, if the Company has disclosed any material, non-public information to the Purchaser, the Purchaser has no duty to keep such information confidential following the public announcement of the Offering.

5.5           Restriction on Variable Rate Transactions. From the date hereof until the twelve month anniversary of the Final Closing Date, the Company shall be prohibited from effecting or entering into an agreement to effect any issuance by the Company or any of its subsidiaries of Common Stock or any outstanding convertible instruments, options or warrants or similar securities (or a combination of units thereof) involving a Variable Rate Transaction (other than Exempt Issuances)”. “ Variable Rate Transaction ” means a transaction in which the Company (i) issues or sells any debt or equity securities that are convertible into, exchangeable or exercisable for, or include the right to receive additional shares of Common Stock either (A) at a conversion price, exercise price or exchange rate or other price that is based upon and/or varies with the trading prices of or quotations for the shares of Common Stock at any time after the initial issuance of such debt or equity securities, or (B) with a conversion, exercise or exchange price that is subject to being reset at some future date after the initial issuance of such debt or equity security or upon the occurrence of specified or contingent events directly or indirectly related to the business of the Company or the market for the Common Stock or (ii) enters into any agreement, including, but not limited to, an agreement for an equity line of credit or “at-the-market” offering, whereby the Company may issue securities at a future determined price (other than standard and customary “preemptive” or “participation” rights and excluding any agreement by the Company to issue shares of its Common Stock as consideration in an acquisition, merger or similar business combination transaction). For the avoidance of doubt, the issuance of a security which is subject to customary anti-dilution protections, including where the conversion, exercise or exchange price is subject to adjustment as a result of stock splits, reverse stock splits and other similar recapitalization or reclassification events, shall not be deemed to be a “Variable Rate Transaction.” Any Purchaser shall be entitled to obtain injunctive relief against the Company to preclude any such issuance, which remedy shall be in addition to any right to collect damages.

5.6           Equal Treatment of Purchasers. No consideration (including any modification of this Agreement and any other documents or agreements executed in connection with the transaction contemplated hereunder) shall be offered or paid to any person to amend or consent to a waiver or modification of any provision of any of this Agreement unless the same consideration is also offered to all of the parties to this Agreement. 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 securities of the Company or otherwise.

6.           Purchaser Lockup.

6.1            Restriction on Sales . During the period beginning on the Closing Date (such date, the “ Initial Lockup Date ”) and ending One Hundred and Eighty (180) days after the Final Closing Date of the Offering (the “ Lockup Period ”), the Purchaser will not, directly or indirectly, (i) offer, sell, offer to sell, contract to sell, hedge, pledge, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase or sell (or announce any offer, sale, offer of sale, contract of sale, hedge, pledge, sale of any option or contract to purchase, purchase of any option or contract of sale, grant of any option, right or warrant to purchase or other sale or disposition), or otherwise transfer or 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), any of the Securities, beneficially owned, within the meaning of Rule 13d-3 under the Exchange Act by the Purchaser on the date hereof or (ii) enter into any swap or other agreement or any transaction that transfers, in whole or in part, directly or indirectly, the economic consequence of ownership of any of the Securities, whether any such swap or transaction described in clause (i) or (ii) above is to be settled by delivery of any of the Securities (each of the foregoing, a “ Prohibited Sale ”). This lockup shall apply only to the Securities purchased by the Purchaser in the Offering and not to any other security of the Company otherwise beneficially owned.

6.2            Permitted Transfers . Notwithstanding the foregoing, the Purchaser (and any transferee of the Purchaser) may transfer any Securities: (i) as a bona fide gift or gifts, provided that prior to such transfer the donee or donees thereof agree in writing to be bound by the restrictions set forth herein, (ii) to any trust, partnership, corporation or other entity formed for the direct or indirect benefit of the Purchaser or the immediate family of the Purchaser, provided that prior to such transfer a duly authorized officer, representative or trustee of such transferee agrees in writing to be bound by the restrictions set forth herein, and provided further that any such transfer shall not involve a disposition for value, (iii) to nonprofit organizations qualified as charitable organizations under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, or (iv) if such transfer occurs by operation of law, such as rules of descent and distribution, statutes governing the effects of a merger or a qualified domestic order, provided that prior to such transfer the transferee executes an agreement stating that the transferee is receiving and holding Securities subject to the provisions of this lockup. For purposes hereof, “immediate family” shall mean any relationship by blood, marriage or adoption, not more remote than first cousin. In addition, the foregoing shall not prohibit privately negotiated transactions, provided the transferees agree, in writing, to be bound to the terms of this lockup for the balance of the Lockup Period.

6.3            Miscellaneous . This lockup (and the agreements reflected herein) may be terminated by the mutual agreement of Company and the Purchaser, and if not sooner terminated, will terminate upon the expiration date of the Lockup Period. The Purchaser hereby agrees to the Company affixing the following restrictive “lock-up” legend on the Securities which shall be governed by the terms of this lockup:

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFER PURSUANT TO A LOCK UP AGREEMENT CONTAINED IN THE COMMON STOCK PURCHASE AGREEMENT BY AND BETWEEN THE COMPANY AND THE HOLDER , A COPY OF WHICH MAY BE INSPECTED AT THE COMPANY’S PRINCIPAL OFFICE.”

7.           Miscellaneous.

7.1           Public Statements; Limitation on Information . The Company shall (A) by 9:00 a.m. (New York City time) on the Trading Day immediately following the Final Closing Date, issue a press release disclosing the material terms of the Offering and (B) after each Closing, file a Current Report on Form 8-K within the time required by and in accordance with the requirements of the Exchange Act. From and after the issuance of such press release, the Company represents to the Purchasers that it shall have publicly disclosed all material, non-public information delivered to any of the Purchasers by the Company or any of its subsidiaries, or any of their respective officers, directors, employees or agents in connection with the Offering. Neither the Company nor any Purchaser shall issue any other press release with respect to the transactions contemplated hereby nor otherwise make any such public statement without the prior consent of the Company and the Placement Agent, which consents in each case shall not unreasonably be withheld or delayed, except if such disclosure is required by law, in which case the disclosing party shall promptly provide the other party with prior notice of such public statement or communication. Notwithstanding the foregoing, the Company will not make any public disclosure listing a Purchaser as one of the purchasers of the Securities without that Purchaser’s prior written consent, except as may be required by applicable law or rules of any exchange on which the Company’s securities are listed.

7.2           Intentionally Omitted .

7.3           Form D and State Securities Filings . The Company will file with the SEC a Notice of Sale of Securities on Form D with respect to the Securities, as required under Regulation D under the Securities Act, no later than 15 days after the Initial Closing Date and promptly amend such Form D after each Closing Date, if required. The Company will promptly and timely file all documents and pay all filing fees required by any states’ securities laws in connection with the sale of Securities

7.4           Governing Law; Jurisdiction: This agreement shall be governed and construed in accordance with the laws of the State of New York, regardless of the laws that might otherwise govern under applicable principles of conflicts of law thereof. You agree, on behalf of yourself and your representatives, to submit to the jurisdiction of any court of competent jurisdiction located in the State of New York, County of New York, to resolve any dispute relating to this agreement and waive any right to move to dismiss or transfer any such action brought in any such court on the basis of any objection to personal jurisdiction or venue.

7.5           Successors and Assigns. Except as otherwise expressly provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors, and administrators of the parties hereto. Notwithstanding the foregoing, the Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Purchasers or their affiliates holding Shares that constitute at least a majority of the Shares then held by the Purchasers and their affiliates).

7.6           Entire Agreement. This Agreement and the exhibits hereto, and the other documents delivered pursuant hereto, constitute the full and entire understanding and agreement among the parties with regard to the subjects hereof and no party shall be liable or bound to any other party in any manner by any representations, warranties, covenants, or agreements except as specifically set forth herein or therein. Nothing in this Agreement, express or implied, is intended to confer upon any party, other than the parties hereto and their respective successors and assigns, any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided herein.

7.7           Severability. In the event any provision of this Agreement shall be invalid, illegal, or unenforceable, it shall to the extent practicable, be modified so as to make it valid, legal and enforceable and to retain as nearly as practicable the intent of the parties, and the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

7.8           Amendment and Waiver. Except as otherwise provided herein, any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance, either retroactively or prospectively, and either for a specified period of time or indefinitely), with the written consent of the Company and Purchasers holding an aggregate of at least 50% of the Shares issued hereunder and outstanding at the time of such consent. Any amendment or waiver effected in accordance with this Section 7.8 shall be binding upon any holder of any Securities purchased under this Agreement, each future holder of all such securities, and the Company.

7.9           Fees and Expenses. Except as otherwise set forth herein, the Company and the Purchasers shall bear their own expenses and legal fees incurred on their behalf with respect to this Agreement and the transactions contemplated hereby. Each party hereby agrees to indemnify and to hold harmless of and from any liability the other parties for any commission or compensation in the nature of a finder’s fee to any broker or other person or firm (and the costs and expenses of defending against such liability or asserted liability) for which such indemnifying party or any of its employees or representatives are responsible.

7.10         Notices. All notices, requests, consents and other communications hereunder shall be in writing, shall be delivered (A) if within the United States, by first-class registered or certified airmail, or nationally recognized overnight express courier, postage prepaid or by facsimile or electronic mail, or (B) if from outside the United States, by International Federal Express (or comparable service) or by facsimile or electronic mail, and shall be deemed given (i) if delivered by first-class registered or certified mail domestic, upon the business day received, (ii) if delivered by nationally recognized overnight carrier, one business day after timely delivery to such carrier, (iii) if delivered by International Federal Express (or comparable service), two business days after so mailed, or (iv) if delivered by facsimile or electronic mail at or prior to 5:30 p.m. (New York City time) on a Trading Day, on the Trading Day so delivered or, if delivered by facsimile or electronic mail after 5:30 p.m. (New York City time) on a Trading Day or on a day that is not a Trading Day, the next Trading Day after the date of delivery, and shall be addressed as follows, or to such other address or addresses as may have been furnished in writing by a party to another party pursuant to this paragraph:

7.11           Survival of Representations, Warranties and Agreements . Notwithstanding any investigation made by any party to this Agreement or by the Placement Agent, all covenants, agreements, representations and warranties made by the Company and the Purchasers herein shall survive the execution of this Agreement, the delivery to the Purchasers of the Securities being purchased and the payment therefor, and a party’s reliance on such representations and warranties shall not be affected by any investigation made by such party or any information developed thereby.

7.12           Counterparts. This Agreement may be executed by facsimile signature and in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument.

7.13           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.

7.14           Independent Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under this Agreement are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance of the obligations of any other Purchaser under this Agreement. Nothing contained herein, and no action taken by any Purchaser pursuant hereto, shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by this Agreement. Each Purchaser confirms that it has independently participated in the negotiation of the transaction contemplated hereby with the advice of its own counsel and advisors. Each Purchaser shall be entitled to independently 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. It is expressly understood and agreed that each provision contained in this Agreement is between the Company and a Purchaser, solely, and not between the Company and the Purchasers collectively and not between and among the Purchasers.

[ The Remainder of this Page is Blank; Signature Pages Follow ]

In witness whereof, the foregoing Common Stock Purchase Agreement is hereby executed as of the date first above written.

In witness whereof, the foregoing Common Stock Purchase Agreement is hereby executed as of the date first above written.  

Exhibit 10.2

PREFERRED STOCK CONVERSION AND LOCKUP AGREEMENT

This Preferred Stock Conversion and Lockup Agreement (this “ Agreement ”), dated as of this ___ day of November 2015 (the “ Execution Date ”), by and among Drone Aviation Holding Corp.(the “ Company ”) and the holder of the Company’s Preferred Stock (as defined below) (the “ Holder ”).

RECITALS

WHEREAS, on April 17, 2015, the Company entered in an exchange agreement (the “ Exchange Agreement ”) with the Holder whereby the Holder exchanged a portion of a convertible promissory note previously issued by the Company and acquired by the Holder for shares of the Company’s newly designated Series C Convertible Preferred Stock (the “ Series C Shares ”);

WHEREAS, on April 30, 2014, the Company entered into an Agreement and Plan of Merger (the “ Merger Agreement ”) with its wholly owned subsidiary for the sole purpose of changing its state of incorporation from Oklahoma to Nevada (the “ Reincorporation ”);

WHEREAS, in connection with the Reincorporation and in exchange for the Series C Shares, the Company issued the Holder shares of the Company’s newly designated Series A Preferred Stock (the “ Preferred Stock ”), with such rights and preferences as set forth in the Certificate of Designation of Preferences, Rights and Limitations of Series A Preferred Stock (the “ Certificate of Designation ” and collectively with the Exchange Agreement, the Merger Agreement and any related transaction documents, the “ Transaction Documents ”) and the Holder currently holds the number of shares of Preferred Stock as set forth on Appendix A , attached hereto;

WHEREAS, the Company is contemplating a financing transaction (the “ Proposed Financing Transaction ”) whereby the Company will sell shares of its common stock, par value $0.0001 per share (the “ Common Stock ”) to certain accredited investors placed by Dougherty & Company, LLC (“ Dougherty ”);

WHEREAS, as a precondition to the consummation of the Proposed Financing Transaction, the Company and Dougherty desire to restructure the Company’s capitalization structure and to subject the Holder to certain “lock-up” restrictions, as set forth herein; and

WHEREAS, immediately prior to the closing of the Proposed Financing Transaction (the “ Conversion Time ”), subject to the terms hereof, in consideration for the execution and delivery of this Agreement, all shares of Preferred Stock held by the Holder shall be converted into shares of Common Stock, based on the conversion price or ratio set forth in the Certificate of Designation then in effect, without further action by the Holder (the “ Preferred Stock Conversion ”); and

WHEREAS, the Company and certain investors (including the Holder) (the “ Buyers ”) previously acquired the shares of Preferred Stock and concurrently herewith Buyers (other than the Holder) (the “ Other Buyers ”) are executing preferred stock conversion and lockup agreements similar to this Agreement (the “ Other Agreements and, together with this Agreement, the “ Agreements ”).

NOW, THEREFORE, in consideration of the foregoing, of the mutual agreements hereinafter set forth, and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Holder hereby agree follows:

AGREEMENT

1.      Recitals . The parties hereto agree that the Recitals set forth above are true and correct and are incorporated into this Agreement by this reference.

2.      Definitions . Unless otherwise defined herein, all terms used herein shall have the definitions specified in the Certificate of Designation.

3.      Holder Representations . The Holder hereby confirms and acknowledges that the aggregate number of shares of Preferred Stock currently held by the Holder are set forth on Schedule A attached hereto. The Holder owns the Preferred Stock free and clear of any and all liens, claims, encumbrances, preemptive rights, right of first refusal and adverse interests of any kind . Holder has the requisite power and authority to enter into this Agreement and to consummate the transactions contemplated hereby and otherwise to carry out Holder’s obligations hereunder. No consent, approval or agreement of any individual or entity is required to be obtained by the Holder in connection with the execution and performance by the Holder of this Agreement or the execution and performance by the Holder of any agreements, instruments or other obligations entered into in connection with this Agreement. There is no private or governmental action, suit, proceeding, claim, arbitration or investigation pending before any agency, court or tribunal, foreign or domestic, or, to the Holder’s knowledge, threatened against the Holder or any of Holder’s properties. There is no judgment, decree or order against the Holder that could prevent, enjoin, alter or delay any of the transactions contemplated by this Agreement. There are no material claims, actions, suits, proceedings, inquiries, labor disputes or investigations pending or, to the Holder’s knowledge, threatened against the Holder or any of its assets, at law or in equity or by or before any governmental entity or in arbitration or mediation. No bankruptcy, receivership or debtor relief proceedings are pending or, to the Holder’s knowledge, threatened against the Holder. The Holder is an “Accredited Investor” as defined in Rule 501(a) under the Securities Act of 1933, as amended.

4.      Automatic Preferred Stock Conversion .

(a)    Preferred Stock Conversion . At the Conversion Time, the Preferred Stock Conversion shall automatically take effect without any action on the part of the Holder such that the Holder shall receive that number of shares of Common Stock (the “ Conversion Shares ”) as stipulated therein and as stated on Schedule A attached hereto and the Holder acknowledges, accepts and authorizes the foregoing Preferred Stock Conversion. To the extent that full conversion of all shares of Preferred Stock held by the Holder would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to receive such number of Conversion Shares to such extent (or beneficial ownership of such Conversion Shares as a result of such Preferred Stock Conversion to such extent) and such portion of such Preferred Stock Conversion to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in such Holder exceeding the Beneficial Ownership Limitation (as defined and described below).

(b)   Cancellation of the Preferred Stock . The Holder unconditionally acknowledges, affirms and agrees that simultaneously with the Preferred Stock Conversion and delivery to the Holder of the Conversion Shares, the Preferred Stock shall be deemed canceled, null and void, and the Company shall have no further obligation to the Holder with respect to the Preferred Stock or the Certificate of Designation (except, with respect to the Certificate of Designation only to the extent such full Preferred Stock Conversion is not limited pursuant to Sections 4(a) and 4(c) herein).

(c)    Beneficial Ownership Limitation . The Company shall not effect conversion of any Preferred Stock, and the Holder shall not have the right to exercise nor enforce any such right, pursuant this Section 4, to the extent that after giving effect to the application of such rights, the Holder (together with the Holder’s Affiliates, and any other persons acting as a group together with the Holder or any of the Holder’s Affiliates), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon application this Section 4 with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable upon exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates.  Except as set forth in the preceding sentence, for purposes of this Section 4, beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (“ Exchange Act ”) and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 4, in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with the Securities and Exchange Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Company’s transfer agent setting forth the number of shares of Common Stock outstanding.  Upon the written or oral request of the Holder, the Company shall within three trading days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company (subject to any beneficial ownership limitations contained therein, by the Holder or its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The “ Beneficial Ownership Limitation ” shall be 4.99%, (unless the Holder elects on its signature page hereto a different amount as its own Beneficial Ownership Limitation) of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon application of this Section 4 which would not exceed at such time the Beneficial Ownership Limitation. The Holder, upon not less than 61 days’ prior notice to the Company, may increase the Beneficial Ownership Limitation provisions of this Section 4 (for the avoidance of doubt, the Holder may on its signature page hereto to waive such Beneficial Ownership Limitation in its entirety (which such waiver shall be effective 61 days’ after the Closing Date) or set a different amount as its own Beneficial Ownership Limitation) of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon application of this Section 4 which would not exceed at such time the Beneficial Ownership Limitation and the provisions of this Section 4 shall continue to apply. Any such decrease will be effective immediately and any such increase will not be effective until the 61 ^st day after such notice is delivered to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 4 to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. In the event the limitations in this Section 4(c) would prevent the application of the Holder’s rights under Sections 4(a) or 4(b), then such Holder may exercise all such rights and comply with all obligations applicable thereto except that the delivery of Common Stock will be deferred until such time as such Holder provides notice to the Company that such Holder may receive or beneficially own such Common Stock which exceeds the Beneficial Ownership Limitation applicable to such Holder without exceeding such then applicable Beneficial Ownership Limitation. “ 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 of 1933, as amended.

5.      Lock-Up .

(a)          Lock-Up . During the 180 day period following the Conversion Time (the “ Lock-Up Period ”), the Holder shall not (i) sell, transfer, assign, offer, pledge, contract to sell, transfer or assign, sell any option or contract to purchase, purchase any option or contract to sell, transfer or assign, grant any option, right or warrant to purchase, or otherwise transfer, assign or dispose of, directly or indirectly, any of the Conversion Shares (collectively, the “ Lock-Up Securities ”), or (ii) enter into any swap or other arrangement that transfers or assigns to another person or entity, in whole or in part, any of the economic benefits, obligations or other consequences of any nature of ownership of any Lock-Up Securities, whether any such transaction is to be settled by delivery of the Lock-Up Securities, in cash or otherwise (the “ Lock-Up ”). The foregoing Lock-Up restrictions may only be released or waived prior to the termination of the Lock-Up Period with the written consent of the Company and Dougherty. Notwithstanding anything to the contrary herein, the Lock-Up restrictions set forth in this Section 5 shall only apply to the Conversion Shares and not with respect to any other securities of the Company held by the Holder. Dougherty is an intended third-party beneficiary of this provision. The following restrictive “Lock-Up” legend shall be affixed to the Lock-Up Securities which shall be governed the terms of this Lock-Up provision:

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFER PURSUANT TO THE LOCK UP PROVISIONS CONTAINED IN THE PREFERRED STOCK CONVERSION AND LOCKUP AGREEMENT, DATED AS OF __, 2015 BY AND BETWEEN THE COMPANY AND THE HOLDER, A COPY OF WHICH MAY BE INSPECTED AT THE COMPANY’S PRINCIPAL OFFICE”.

(b)           Permitted Transfers . Notwithstanding the foregoing, the Holder (and any transferee of the Holder) may transfer any Lock-Up Securities: (i) as a bona fide gift or gifts, provided that prior to such transfer the donee or donees thereof agree in writing to be bound by the restrictions set forth herein, (ii) to any trust, partnership, corporation or other entity formed for the direct or indirect benefit of the Holder or the immediate family of the Holder, provided that prior to such transfer a duly authorized officer, representative or trustee of such transferee agrees in writing to be bound by the restrictions set forth herein, and provided further that any such transfer shall not involve a disposition for value, (iii) to non-profit organizations qualified as charitable organizations under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, or (iv) if such transfer occurs by operation of law, such as rules of descent and distribution, statutes governing the effects of a merger or a qualified domestic order, provided that prior to such transfer the transferee executes an agreement stating that the transferee is receiving and holding Lock-Up Securities subject to the provisions of this lockup. For purposes hereof, “immediate family” shall mean any relationship by blood, marriage or adoption, not more remote than first cousin. In addition, the foregoing shall not prohibit privately negotiated transactions, provided the transferees agree, in writing, to be bound to the terms of this lockup for the balance of the Lock-Up Period

6.      Independent Nature of Holder's Obligations and Rights . The obligations of the Holder under this Agreement are several and not joint with the obligations of any Other Buyers, and the Holder shall not be responsible in any way for the performance of the obligations of any Other Buyer under any Other Agreement. Nothing contained herein, any Other Agreement or the Transaction Documents, and no action taken by the Holder pursuant hereto, shall be deemed to constitute the Holder and Other Buyers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Holder and Other Buyers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by this Agreement any Other Agreement or the Transaction Documents, and the Company acknowledges that the Holder and the Other Buyers are not acting in concert or as a group with respect to such obligations or the transactions contemplated by this Agreement, any Other Agreement or the Transaction Documents. The Company and the Holder confirm that the Holder has independently participated in the negotiation of the transactions contemplated hereby with the advice of its own counsel and advisors. The Holder shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this Agreement, any Other Agreement or the Transaction Documents, and it shall not be necessary for any Other Buyer to be joined as an additional party in any proceeding for such purpose.

7.      No Third Party Beneficiaries . Except as expressly set forth herein, this Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

8.       Non-Public Information . The Company acknowledges and agrees that transactions and agreements contemplated hereby do not constitute material modifications to the Transaction Documents or the Certificate of Designation and consequently, as of the date hereof, the Company shall have disclosed all material, non-public information (if any) that it (including any of its subsidiaries or any of their respective officers, directors, employees or agents) provided to the Holder.

9.      Most Favored Nation . The Company hereby represents and warrants as of the date hereof and covenants and agrees from and after the date hereof that none of the terms offered to any person with respect to the transactions contemplated hereby (the conversion of the Company’s currently outstanding preferred stock), is or will be more favorable to such person than those of the Holder under this Agreement. The provisions of this Section 9 shall apply similarly and equally to each Other Agreement.

10.     Governing Law . This Agreement shall be governed and construed in accordance with the laws of the State of New York, regardless of the laws that might otherwise govern under applicable principles of conflicts of law thereof. The undersigned agrees, on its behalf and on behalf of its representatives, to submit to the jurisdiction of any court of competent jurisdiction located in the State of New York, County of New York, to resolve any dispute relating to this agreement and waive any right to move to dismiss or transfer any such action brought in any such court on the basis of any objection to personal jurisdiction or venue.

11.     Counterparts . This Agreement may be executed by the Company and the Holder in any number of counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.

[ Signature Page Follows ]

IN WITNESS WHEREOF, the Company and the Holder have executed this Agreement as of the Execution Date.

*           *            *           *           *

HOLDER :

Beneficial Ownership Limitation (if not 4.99%): ______%

Exhibit 10.3

PREFERRED STOCK CONVERSION AND LOCKUP AGREEMENT

This Preferred Stock Conversion and Lockup Agreement (this “ Agreement ”), dated as of this ___ day of September 2015 (the “ Execution Date ”), by and among Drone Aviation Holding Corp.(the “ Company ”) and the holder of the Company’s Preferred Stock (as defined below) (the “ Holder ”).

RECITALS

WHEREAS, on April 17, 2015, the Company entered in an exchange agreement (the “ Exchange Agreement ”) with the Holder whereby the Holder exchanged a portion of a convertible promissory note previously issued by the Company and acquired by the Holder for shares of the Company’s newly designated Series D Convertible Preferred Stock (the “ Series D Shares ”);

WHEREAS, on April 30, 2014, the Company entered into an Agreement and Plan of Merger (the “ Merger Agreement ”) with its wholly owned subsidiary for the sole purpose of changing its state of incorporation from Oklahoma to Nevada (the “ Reincorporation ”);

WHEREAS, in connection with the Reincorporation and in exchange for the Series C Shares, the Company issued the Holder shares of the Company’s newly designated Series A Preferred Stock (the “ Preferred Stock ”), with such rights and preferences as set forth in the Certificate of Designation of Preferences, Rights and Limitations of Series B Preferred Stock (the “ Certificate of Designation ” and collectively with the Exchange Agreement, the Merger Agreement and any related transaction documents, the “ Transaction Documents ”) and the Holder currently holds the number of shares of Preferred Stock as set forth on Appendix A , attached hereto;

WHEREAS, the Company is contemplating a financing transaction (the “ Proposed Financing Transaction ”) whereby the Company will sell shares of its common stock, par value $0.0001 per share (the “ Common Stock ”) to certain accredited investors placed by Dougherty & Company, LLC (“ Dougherty ”);

WHEREAS, as a precondition to the consummation of the Proposed Financing Transaction, the Company and Dougherty desire to restructure the Company’s capitalization structure and to subject the Holder to certain “lock-up” restrictions, as set forth herein; and

WHEREAS, immediately prior to the closing of the Proposed Financing Transaction (the “ Conversion Time ”), subject to the terms hereof, in consideration for the execution and delivery of this Agreement, all shares of Preferred Stock held by the Holder shall be converted into shares of Common Stock, based on the conversion price or ratio set forth in the Certificate of Designation then in effect, without further action by the Holder (the “ Preferred Stock Conversion ”); and

WHEREAS, the Company and certain investors (including the Holder) (the “ Buyers ”) previously acquired the shares of Preferred Stock and concurrently herewith Buyers (other than the Holder) (the “ Other Buyers ”) are executing preferred stock conversion and lockup agreements similar to this Agreement (the “ Other Agreements and, together with this Agreement, the “ Agreements ”).

NOW, THEREFORE, in consideration of the foregoing, of the mutual agreements hereinafter set forth, and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Holder hereby agree follows:

AGREEMENT

1.      Recitals . The parties hereto agree that the Recitals set forth above are true and correct and are incorporated into this Agreement by this reference.

2.      Definitions . Unless otherwise defined herein, all terms used herein shall have the definitions specified in the Certificate of Designation.

3.      Holder Representations . The Holder hereby confirms and acknowledges that the aggregate number of shares of Preferred Stock currently held by the Holder are set forth on Schedule A attached hereto. The Holder owns the Preferred Stock free and clear of any and all liens, claims, encumbrances, preemptive rights, right of first refusal and adverse interests of any kind . Holder has the requisite power and authority to enter into this Agreement and to consummate the transactions contemplated hereby and otherwise to carry out Holder’s obligations hereunder. No consent, approval or agreement of any individual or entity is required to be obtained by the Holder in connection with the execution and performance by the Holder of this Agreement or the execution and performance by the Holder of any agreements, instruments or other obligations entered into in connection with this Agreement. There is no private or governmental action, suit, proceeding, claim, arbitration or investigation pending before any agency, court or tribunal, foreign or domestic, or, to the Holder’s knowledge, threatened against the Holder or any of Holder’s properties. There is no judgment, decree or order against the Holder that could prevent, enjoin, alter or delay any of the transactions contemplated by this Agreement. There are no material claims, actions, suits, proceedings, inquiries, labor disputes or investigations pending or, to the Holder’s knowledge, threatened against the Holder or any of its assets, at law or in equity or by or before any governmental entity or in arbitration or mediation. No bankruptcy, receivership or debtor relief proceedings are pending or, to the Holder’s knowledge, threatened against the Holder. The Holder is an “Accredited Investor” as defined in Rule 501(a) under the Securities Act of 1933, as amended.

4.      Automatic Preferred Stock Conversion .

(a)    Preferred Stock Conversion . At the Conversion Time, the Preferred Stock Conversion shall automatically take effect without any action on the part of the Holder such that the Holder shall receive that number of shares of Common Stock (the “ Conversion Shares ”) as stipulated therein and as stated on Schedule A attached hereto and the Holder acknowledges, accepts and authorizes the foregoing Preferred Stock Conversion. To the extent that full conversion of all shares of Preferred Stock held by the Holder would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to receive such number of Conversion Shares to such extent (or beneficial ownership of such Conversion Shares as a result of such Preferred Stock Conversion to such extent) and such portion of such Preferred Stock Conversion to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in such Holder exceeding the Beneficial Ownership Limitation (as defined and described below).

(b)   Cancellation of the Preferred Stock . The Holder unconditionally acknowledges, affirms and agrees that simultaneously with the Preferred Stock Conversion and delivery to the Holder of the Conversion Shares, the Preferred Stock shall be deemed canceled, null and void, and the Company shall have no further obligation to the Holder with respect to the Preferred Stock or the Certificate of Designation (except, with respect to the Certificate of Designation only to the extent such full Preferred Stock Conversion is not limited pursuant to Sections 4(a) and 4(c) herein).

(c)    Beneficial Ownership Limitation . The Company shall not effect conversion of any Preferred Stock, and the Holder shall not have the right to exercise nor enforce any such right, pursuant this Section 4, to the extent that after giving effect to the application of such rights, the Holder (together with the Holder’s Affiliates, and any other persons acting as a group together with the Holder or any of the Holder’s Affiliates), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon application this Section 4 with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable upon exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates.  Except as set forth in the preceding sentence, for purposes of this Section 4, beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (“ Exchange Act ”) and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 4, in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with the Securities and Exchange Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Company’s transfer agent setting forth the number of shares of Common Stock outstanding.  Upon the written or oral request of the Holder, the Company shall within three trading days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company (subject to any beneficial ownership limitations contained therein, by the Holder or its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The “ Beneficial Ownership Limitation ” shall be 9.99%, (unless the Holder elects on its signature page hereto a different amount as its own Beneficial Ownership Limitation) of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon application of this Section 4 which would not exceed at such time the Beneficial Ownership Limitation. The Holder, upon not less than 61 days’ prior notice to the Company, may increase the Beneficial Ownership Limitation provisions of this Section 4 (for the avoidance of doubt, the Holder may on its signature page hereto to waive such Beneficial Ownership Limitation in its entirety (which such waiver shall be effective 61 days’ after the Closing Date) or set a different amount as its own Beneficial Ownership Limitation) of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon application of this Section 4 which would not exceed at such time the Beneficial Ownership Limitation and the provisions of this Section 4 shall continue to apply. Any such decrease will be effective immediately and any such increase will not be effective until the 61 ^st day after such notice is delivered to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 4 to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. In the event the limitations in this Section 4(c) would prevent the application of the Holder’s rights under Sections 4(a) or 4(b), then such Holder may exercise all such rights and comply with all obligations applicable thereto except that the delivery of Common Stock will be deferred until such time as such Holder provides notice to the Company that such Holder may receive or beneficially own such Common Stock which exceeds the Beneficial Ownership Limitation applicable to such Holder without exceeding such then applicable Beneficial Ownership Limitation. “ 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 of 1933, as amended.

5.      Lock-Up .

(a)         Lock-Up . During the 180 day period following the Conversion Time (the “ Lock-Up Period ”), the Holder shall not (i) sell, transfer, assign, offer, pledge, contract to sell, transfer or assign, sell any option or contract to purchase, purchase any option or contract to sell, transfer or assign, grant any option, right or warrant to purchase, or otherwise transfer, assign or dispose of, directly or indirectly, any of the Conversion Shares (collectively, the “ Lock-Up Securities ”), or (ii) enter into any swap or other arrangement that transfers or assigns to another person or entity, in whole or in part, any of the economic benefits, obligations or other consequences of any nature of ownership of any Lock-Up Securities, whether any such transaction is to be settled by delivery of the Lock-Up Securities, in cash or otherwise (the “ Lock-Up ”). The foregoing Lock-Up restrictions may only be released or waived prior to the termination of the Lock-Up Period with the written consent of the Company and Dougherty. Notwithstanding anything to the contrary herein, the Lock-Up restrictions set forth in this Section 5 shall only apply to the Conversion Shares and not with respect to any other securities of the Company held by the Holder. Dougherty is an intended third-party beneficiary of this provision. The following restrictive “Lock-Up” legend shall be affixed to the Lock-Up Securities which shall be governed the terms of this Lock-Up provision:

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFER PURSUANT TO THE LOCK UP PROVISIONS CONTAINED IN THE PREFERRED STOCK CONVERSION AND LOCKUP AGREEMENT, DATED AS OF __, 2015 BY AND BETWEEN THE COMPANY AND THE HOLDER, A COPY OF WHICH MAY BE INSPECTED AT THE COMPANY’S PRINCIPAL OFFICE”.

(b)         Permitted Transfers . Notwithstanding the foregoing, the Holder (and any transferee of the Holder) may transfer any Lock-Up Securities: (i) as a bona fide gift or gifts, provided that prior to such transfer the donee or donees thereof agree in writing to be bound by the restrictions set forth herein, (ii) to any trust, partnership, corporation or other entity formed for the direct or indirect benefit of the Holder or the immediate family of the Holder, provided that prior to such transfer a duly authorized officer, representative or trustee of such transferee agrees in writing to be bound by the restrictions set forth herein, and provided further that any such transfer shall not involve a disposition for value, (iii) to non-profit organizations qualified as charitable organizations under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, or (iv) if such transfer occurs by operation of law, such as rules of descent and distribution, statutes governing the effects of a merger or a qualified domestic order, provided that prior to such transfer the transferee executes an agreement stating that the transferee is receiving and holding Lock-Up Securities subject to the provisions of this lockup. For purposes hereof, “immediate family” shall mean any relationship by blood, marriage or adoption, not more remote than first cousin. In addition, the foregoing shall not prohibit privately negotiated transactions, provided the transferees agree, in writing, to be bound to the terms of this lockup for the balance of the Lock-Up Period

6.      Independent Nature of Holder's Obligations and Rights . The obligations of the Holder under this Agreement are several and not joint with the obligations of any Other Buyers, and the Holder shall not be responsible in any way for the performance of the obligations of any Other Buyer under any Other Agreement. Nothing contained herein, any Other Agreement or the Transaction Documents, and no action taken by the Holder pursuant hereto, shall be deemed to constitute the Holder and Other Buyers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Holder and Other Buyers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by this Agreement any Other Agreement or the Transaction Documents, and the Company acknowledges that the Holder and the Other Buyers are not acting in concert or as a group with respect to such obligations or the transactions contemplated by this Agreement, any Other Agreement or the Transaction Documents. The Company and the Holder confirm that the Holder has independently participated in the negotiation of the transactions contemplated hereby with the advice of its own counsel and advisors. The Holder shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this Agreement, any Other Agreement or the Transaction Documents, and it shall not be necessary for any Other Buyer to be joined as an additional party in any proceeding for such purpose.

7.      No Third Party Beneficiaries . Except as expressly set forth herein, this Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

8.       Non-Public Information . The Company acknowledges and agrees that transactions and agreements contemplated hereby do not constitute material modifications to the Transaction Documents or the Certificate of Designation and consequently, as of the date hereof, the Company shall have disclosed all material, non-public information (if any) that it (including any of its subsidiaries or any of their respective officers, directors, employees or agents) provided to the Holder.

9.      Most Favored Nation . The Company hereby represents and warrants as of the date hereof and covenants and agrees from and after the date hereof that none of the terms offered to any person with respect to the transactions contemplated hereby (the conversion of the Company’s currently outstanding preferred stock), is or will be more favorable to such person than those of the Holder under this Agreement. The provisions of this Section 9 shall apply similarly and equally to each Other Agreement.

10.     Governing Law . This Agreement shall be governed and construed in accordance with the laws of the State of New York without regard to its conflicts of law principles.

11.     Counterparts . This Agreement may be executed by the Company and the Holder in any number of counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.

[ Signature Page Follows ]

IN WITNESS WHEREOF, the Company and the Holder have executed this Agreement as of the Execution Date.

*           *            *           *           *

HOLDER :

Exhibit 10.4

PREFERRED STOCK CONVERSION AND LOCKUP AGREEMENT

This Preferred Stock Conversion and Lockup Agreement (this “ Agreement ”), dated as of this ___ day of November 2015 (the “ Execution Date ”), by and among Drone Aviation Holding Corp.(the “ Company ”) and the holder of the Company’s Preferred Stock (as defined below) (the “ Holder ”).

RECITALS

WHEREAS, on April 29, 2015, the Company sold to an accredited investor (the “ Investor ”) pursuant to a subscription agreement (the “ Subscription Agreement ”) shares of the Company’s newly designated Series C Convertible Preferred Stock (the “ Preferred Stock ”) with such rights and preferences as set forth in the Certificate of Designation of Preferences, Rights and Limitations of Series C Preferred Stock (the “ Certificate of Designation ” and collectively with the Subscription Agreement and any related transaction documents, the “ Transaction Documents ”));

WHEREAS, subsequent to the sale of the Preferred Stock on April 29, 2015, the Investor distributed the Preferred Stock to its members, including the Holder and the Holder currently holds the number of shares of Preferred Stock as set forth on Appendix A , attached hereto;

WHEREAS, the Company is contemplating a financing transaction (the “ Proposed Financing Transaction ”) whereby the Company will sell shares of its common stock, par value $0.0001 per share (the “ Common Stock ”) to certain accredited investors placed by Dougherty & Company, LLC (“ Dougherty ”);

WHEREAS, as a precondition to the consummation of the Proposed Financing Transaction, the Company and Dougherty desire to restructure the Company’s capitalization structure and to subject the Holder to certain “lock-up” restrictions, as set forth herein; and

WHEREAS, immediately prior to the closing of the Proposed Financing Transaction (the “ Conversion Time ”), subject to the terms hereof, in consideration for the execution and delivery of this Agreement, all shares of Preferred Stock held by the Holder shall be converted into shares of Common Stock, based on the conversion price or ratio set forth in the Certificate of Designation then in effect, without further action by the Holder (the “ Preferred Stock Conversion ”); and

WHEREAS, the Company and certain investors (including the Holder) (the “ Buyers ”) previously acquired the shares of Preferred Stock and concurrently herewith, Buyers (other than the Holder) (the “ Other Buyers ”) are executing preferred stock conversion and lockup agreements similar to this Agreement (the “ Other Agreements and, together with this Agreement, the “ Agreements ”).

NOW, THEREFORE, in consideration of the foregoing, of the mutual agreements hereinafter set forth, and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Holder hereby agree follows:

AGREEMENT

1.      Recitals . The parties hereto agree that the Recitals set forth above are true and correct and are incorporated into this Agreement by this reference.

2.      Definitions . Unless otherwise defined herein, all terms used herein shall have the definitions specified in the Certificate of Designation.

3.      Holder Representations . The Holder hereby confirms and acknowledges that the aggregate number of shares of Preferred Stock currently held by the Holder are set forth on Schedule A attached hereto. The Holder owns the Preferred Stock free and clear of any and all liens, claims, encumbrances, preemptive rights, right of first refusal and adverse interests of any kind . Holder has the requisite power and authority to enter into this Agreement and to consummate the transactions contemplated hereby and otherwise to carry out Holder’s obligations hereunder. No consent, approval or agreement of any individual or entity is required to be obtained by the Holder in connection with the execution and performance by the Holder of this Agreement or the execution and performance by the Holder of any agreements, instruments or other obligations entered into in connection with this Agreement. There is no private or governmental action, suit, proceeding, claim, arbitration or investigation pending before any agency, court or tribunal, foreign or domestic, or, to the Holder’s knowledge, threatened against the Holder or any of Holder’s properties. There is no judgment, decree or order against the Holder that could prevent, enjoin, alter or delay any of the transactions contemplated by this Agreement. There are no material claims, actions, suits, proceedings, inquiries, labor disputes or investigations pending or, to the Holder’s knowledge, threatened against the Holder or any of its assets, at law or in equity or by or before any governmental entity or in arbitration or mediation. No bankruptcy, receivership or debtor relief proceedings are pending or, to the Holder’s knowledge, threatened against the Holder. The Holder is an “Accredited Investor” as defined in Rule 501(a) under the Securities Act of 1933, as amended.

4.      Automatic Preferred Stock Conversion .

(a)    Preferred Stock Conversion . At the Conversion Time, the Preferred Stock Conversion shall automatically take effect without any action on the part of the Holder such that the Holder shall receive that number of shares of Common Stock (the “ Conversion Shares ”) as stipulated therein and as stated on Schedule A attached hereto and the Holder acknowledges, accepts and authorizes the foregoing Preferred Stock Conversion. To the extent that full conversion of all shares of Preferred Stock held by the Holder would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to receive such number of Conversion Shares to such extent (or beneficial ownership of such Conversion Shares as a result of such Preferred Stock Conversion to such extent) and such portion of such Preferred Stock Conversion to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in such Holder exceeding the Beneficial Ownership Limitation (as defined and described below).

(b)   Cancellation of the Preferred Stock . The Holder unconditionally acknowledges, affirms and agrees that simultaneously with the Preferred Stock Conversion and delivery to the Holder of the Conversion Shares, the Preferred Stock shall be deemed canceled, null and void, and the Company shall have no further obligation to the Holder with respect to the Preferred Stock or the Certificate of Designation (except, with respect to the Certificate of Designation only to the extent such full Preferred Stock Conversion is not limited pursuant to Sections 4(a) and 4(c) herein).

(c)    Beneficial Ownership Limitation . The Company shall not effect conversion of any Preferred Stock, and the Holder shall not have the right to exercise nor enforce any such right, pursuant this Section 4, to the extent that after giving effect to the application of such rights, the Holder (together with the Holder’s Affiliates, and any other persons acting as a group together with the Holder or any of the Holder’s Affiliates), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon application this Section 4 with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable upon exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates.  Except as set forth in the preceding sentence, for purposes of this Section 4, beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (“ Exchange Act ”) and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 4, in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with the Securities and Exchange Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Company’s transfer agent setting forth the number of shares of Common Stock outstanding.  Upon the written or oral request of the Holder, the Company shall within three trading days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company (subject to any beneficial ownership limitations contained therein, by the Holder or its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The “ Beneficial Ownership Limitation ” shall be 4.99%, (unless the Holder elects on its signature page hereto a different amount as its own Beneficial Ownership Limitation) of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon application of this Section 4 which would not exceed at such time the Beneficial Ownership Limitation. The Holder, upon not less than 61 days’ prior notice to the Company, may increase the Beneficial Ownership Limitation provisions of this Section 4 (for the avoidance of doubt, the Holder may on its signature page hereto to waive such Beneficial Ownership Limitation in its entirety (which such waiver shall be effective 61 days’ after the Closing Date) or set a different amount as its own Beneficial Ownership Limitation) of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon application of this Section 4 which would not exceed at such time the Beneficial Ownership Limitation and the provisions of this Section 4 shall continue to apply. Any such decrease will be effective immediately and any such increase will not be effective until the 61 ^st day after such notice is delivered to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 4 to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. In the event the limitations in this Section 4(c) would prevent the application of the Holder’s rights under Sections 4(a) or 4(b), then such Holder may exercise all such rights and comply with all obligations applicable thereto except that the delivery of Common Stock will be deferred until such time as such Holder provides notice to the Company that such Holder may receive or beneficially own such Common Stock which exceeds the Beneficial Ownership Limitation applicable to such Holder without exceeding such then applicable Beneficial Ownership Limitation. “ 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 of 1933, as amended.

5.      Lock-Up .

(a)         Lock-Up . During the 180 day period following the Conversion Time (the “ Lock-Up Period ”), the Holder shall not (i) sell, transfer, assign, offer, pledge, contract to sell, transfer or assign, sell any option or contract to purchase, purchase any option or contract to sell, transfer or assign, grant any option, right or warrant to purchase, or otherwise transfer, assign or dispose of, directly or indirectly, any of the Conversion Shares (collectively, the “ Lock-Up Securities ”), or (ii) enter into any swap or other arrangement that transfers or assigns to another person or entity, in whole or in part, any of the economic benefits, obligations or other consequences of any nature of ownership of any Lock-Up Securities, whether any such transaction is to be settled by delivery of the Lock-Up Securities, in cash or otherwise (the “ Lock-Up ”). The foregoing Lock-Up restrictions may only be released or waived prior to the termination of the Lock-Up Period with the written consent of the Company and Dougherty. Notwithstanding anything to the contrary herein, the Lock-Up restrictions set forth in this Section 5 shall only apply to the Conversion Shares and not with respect to any other securities of the Company held by the Holder. Dougherty is an intended third-party beneficiary of this provision. The following restrictive “Lock-Up” legend shall be affixed to the Lock-Up Securities which shall be governed the terms of this Lock-Up provision:

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFER PURSUANT TO THE LOCK UP PROVISIONS CONTAINED IN THE PREFERRED STOCK CONVERSION AND LOCKUP AGREEMENT, DATED AS OF __, 2015 BY AND BETWEEN THE COMPANY AND THE HOLDER, A COPY OF WHICH MAY BE INSPECTED AT THE COMPANY’S PRINCIPAL OFFICE”.

(b)         Permitted Transfers . Notwithstanding the foregoing, the Holder (and any transferee of the Holder) may transfer any Lock-Up Securities: (i) as a bona fide gift or gifts, provided that prior to such transfer the donee or donees thereof agree in writing to be bound by the restrictions set forth herein, (ii) to any trust, partnership, corporation or other entity formed for the direct or indirect benefit of the Holder or the immediate family of the Holder, provided that prior to such transfer a duly authorized officer, representative or trustee of such transferee agrees in writing to be bound by the restrictions set forth herein, and provided further that any such transfer shall not involve a disposition for value, (iii) to non-profit organizations qualified as charitable organizations under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, or (iv) if such transfer occurs by operation of law, such as rules of descent and distribution, statutes governing the effects of a merger or a qualified domestic order, provided that prior to such transfer the transferee executes an agreement stating that the transferee is receiving and holding Lock-Up Securities subject to the provisions of this lockup. For purposes hereof, “immediate family” shall mean any relationship by blood, marriage or adoption, not more remote than first cousin. In addition, the foregoing shall not prohibit privately negotiated transactions, provided the transferees agree, in writing, to be bound to the terms of this lockup for the balance of the Lock-Up Period

6.      Independent Nature of Holder's Obligations and Rights . The obligations of the Holder under this Agreement are several and not joint with the obligations of any Other Buyers, and the Holder shall not be responsible in any way for the performance of the obligations of any Other Buyer under any Other Agreement. Nothing contained herein, any Other Agreement or the Transaction Documents, and no action taken by the Holder pursuant hereto, shall be deemed to constitute the Holder and Other Buyers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Holder and Other Buyers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by this Agreement any Other Agreement or the Transaction Documents, and the Company acknowledges that the Holder and the Other Buyers are not acting in concert or as a group with respect to such obligations or the transactions contemplated by this Agreement, any Other Agreement or the Transaction Documents. The Company and the Holder confirm that the Holder has independently participated in the negotiation of the transactions contemplated hereby with the advice of its own counsel and advisors. The Holder shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this Agreement, any Other Agreement or the Transaction Documents, and it shall not be necessary for any Other Buyer to be joined as an additional party in any proceeding for such purpose.

7.      No Third Party Beneficiaries . Except as expressly set forth herein, this Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

8.       Non-Public Information . The Company acknowledges and agrees that transactions and agreements contemplated hereby do not constitute material modifications to the Transaction Documents or the Certificate of Designation and consequently, as of the date hereof, the Company shall have disclosed all material, non-public information (if any) that it (including any of its subsidiaries or any of their respective officers, directors, employees or agents) provided to the Holder.

9.      Most Favored Nation . The Company hereby represents and warrants as of the date hereof and covenants and agrees from and after the date hereof that none of the terms offered to any person with respect to the transactions contemplated hereby (the conversion of the Company’s currently outstanding preferred stock), is or will be more favorable to such person than those of the Holder under this Agreement. The provisions of this Section 9 shall apply similarly and equally to each Other Agreement.

10.     Governing Law . This Agreement shall be governed and construed in accordance with the laws of the State of New York, regardless of the laws that might otherwise govern under applicable principles of conflicts of law thereof. The undersigned agrees, on its behalf and on behalf of its representatives, to submit to the jurisdiction of any court of competent jurisdiction located in the State of New York, County of New York, to resolve any dispute relating to this agreement and waive any right to move to dismiss or transfer any such action brought in any such court on the basis of any objection to personal jurisdiction or venue.

11.     Counterparts . This Agreement may be executed by the Company and the Holder in any number of counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.

[ Signature Page Follows ]

IN WITNESS WHEREOF, the Company and the Holder have executed this Agreement as of the Execution Date.

*           *            *           *           *

HOLDER :

Beneficial Ownership Limitation (if not 4.99%): ______%

Exhibit 10.5

PREFERRED STOCK CONVERSION AND LOCKUP AGREEMENT

This Preferred Stock Conversion and Lockup Agreement (this “ Agreement ”), dated as of this ___ day of November 2015 (the “ Execution Date ”), by and among Drone Aviation Holding Corp.(the “ Company ”) and the holder of the Company’s Preferred Stock (as defined below) (the “ Holder ”).

RECITALS

WHEREAS, on June 3, 2015, the Company entered in a Share Exchange Agreement (the “ Exchange Agreement ”) with the shareholders (including the Holder) of Drone Aviation Corp., a Nevada corporation (“ Drone ”) pursuant to which the shareholders of Drone transferred all of the issued and outstanding common stock of Drone to the Company in exchange for shares of the Company’s common stock and shares of the Company’s newly designated Series D Convertible Preferred Stock (the “ Preferred Stock ”) with such rights and preferences as set forth in the Certificate of Designation of Preferences, Rights and Limitations of Series D Preferred Stock (the “ Certificate of Designation ” and collectively with the Exchange Agreement and any related transaction documents, the “ Transaction Documents ”) and the Holder currently holds the number of shares of Preferred Stock as set forth on Appendix A , attached hereto; 

WHEREAS, the Company is contemplating a financing transaction (the “ Proposed Financing Transaction ”) whereby the Company will sell shares of its common stock, par value $0.0001 per share (the “ Common Stock ”) to certain accredited investors placed by Dougherty & Company, LLC (“ Dougherty ”);

WHEREAS, as a precondition to the consummation of the Proposed Financing Transaction, the Company and Dougherty desire to restructure the Company’s capitalization structure and to subject the Holder to certain “lock-up” restrictions, as set forth herein; and

WHEREAS, immediately prior to the closing of the Proposed Financing Transaction (the “ Conversion Time ”), subject to the terms hereof, in consideration for the execution and delivery of this Agreement, all shares of Preferred Stock held by the Holder shall be converted into shares of Common Stock, based on the conversion price or ratio set forth in the Certificate of Designation then in effect, without further action by the Holder (the “ Preferred Stock Conversion ”); and

WHEREAS, the Company and certain investors (including the Holder) (the “ Buyers ”) previously acquired the shares of Preferred Stock and concurrently herewith Buyers (other than the Holder) (the “ Other Buyers ”) are executing preferred stock conversion and lockup agreements similar to this Agreement (the “ Other Agreements and, together with this Agreement, the “ Agreements ”).

NOW, THEREFORE, in consideration of the foregoing, of the mutual agreements hereinafter set forth, and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Holder hereby agree follows:

AGREEMENT

1.      Recitals . The parties hereto agree that the Recitals set forth above are true and correct and are incorporated into this Agreement by this reference.

2.      Definitions . Unless otherwise defined herein, all terms used herein shall have the definitions specified in the Certificate of Designation.

3.      Holder Representations . The Holder hereby confirms and acknowledges that the aggregate number of shares of Preferred Stock currently held by the Holder are set forth on Schedule A attached hereto. The Holder owns the Preferred Stock free and clear of any and all liens, claims, encumbrances, preemptive rights, right of first refusal and adverse interests of any kind . Holder has the requisite power and authority to enter into this Agreement and to consummate the transactions contemplated hereby and otherwise to carry out Holder’s obligations hereunder. No consent, approval or agreement of any individual or entity is required to be obtained by the Holder in connection with the execution and performance by the Holder of this Agreement or the execution and performance by the Holder of any agreements, instruments or other obligations entered into in connection with this Agreement. There is no private or governmental action, suit, proceeding, claim, arbitration or investigation pending before any agency, court or tribunal, foreign or domestic, or, to the Holder’s knowledge, threatened against the Holder or any of Holder’s properties. There is no judgment, decree or order against the Holder that could prevent, enjoin, alter or delay any of the transactions contemplated by this Agreement. There are no material claims, actions, suits, proceedings, inquiries, labor disputes or investigations pending or, to the Holder’s knowledge, threatened against the Holder or any of its assets, at law or in equity or by or before any governmental entity or in arbitration or mediation. No bankruptcy, receivership or debtor relief proceedings are pending or, to the Holder’s knowledge, threatened against the Holder. The Holder is an “Accredited Investor” as defined in Rule 501(a) under the Securities Act of 1933, as amended.

4.      Automatic Preferred Stock Conversion .

(a)    Preferred Stock Conversion . At the Conversion Time, the Preferred Stock Conversion shall automatically take effect without any action on the part of the Holder such that the Holder shall receive that number of shares of Common Stock (the “ Conversion Shares ”) as stipulated therein and as stated on Schedule A attached hereto and the Holder acknowledges, accepts and authorizes the foregoing Preferred Stock Conversion. To the extent that full conversion of all shares of Preferred Stock held by the Holder would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to receive such number of Conversion Shares to such extent (or beneficial ownership of such Conversion Shares as a result of such Preferred Stock Conversion to such extent) and such portion of such Preferred Stock Conversion to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in such Holder exceeding the Beneficial Ownership Limitation (as defined and described below).

(b)   Cancellation of the Preferred Stock . The Holder unconditionally acknowledges, affirms and agrees that simultaneously with the Preferred Stock Conversion and delivery to the Holder of the Conversion Shares, the Preferred Stock shall be deemed canceled, null and void, and the Company shall have no further obligation to the Holder with respect to the Preferred Stock or the Certificate of Designation (except, with respect to the Certificate of Designation only to the extent such full Preferred Stock Conversion is not limited pursuant to Sections 4(a) and 4(c) herein).

(c)    Beneficial Ownership Limitation . The Company shall not effect conversion of any Preferred Stock, and the Holder shall not have the right to exercise nor enforce any such right, pursuant this Section 4, to the extent that after giving effect to the application of such rights, the Holder (together with the Holder’s Affiliates, and any other persons acting as a group together with the Holder or any of the Holder’s Affiliates), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon application this Section 4 with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable upon exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates.  Except as set forth in the preceding sentence, for purposes of this Section 4, beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (“ Exchange Act ”) and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 4, in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with the Securities and Exchange Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Company’s transfer agent setting forth the number of shares of Common Stock outstanding.  Upon the written or oral request of the Holder, the Company shall within three trading days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company (subject to any beneficial ownership limitations contained therein, by the Holder or its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The “ Beneficial Ownership Limitation ” shall be 4.99%, (unless the Holder elects on its signature page hereto a different amount as its own Beneficial Ownership Limitation) of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon application of this Section 4 which would not exceed at such time the Beneficial Ownership Limitation. The Holder, upon not less than 61 days’ prior notice to the Company, may increase the Beneficial Ownership Limitation provisions of this Section 4 (for the avoidance of doubt, the Holder may on its signature page hereto to waive such Beneficial Ownership Limitation in its entirety (which such waiver shall be effective 61 days’ after the Closing Date) or set a different amount as its own Beneficial Ownership Limitation) of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon application of this Section 4 which would not exceed at such time the Beneficial Ownership Limitation and the provisions of this Section 4 shall continue to apply. Any such decrease will be effective immediately and any such increase will not be effective until the 61 ^st day after such notice is delivered to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 4 to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. In the event the limitations in this Section 4(c) would prevent the application of the Holder’s rights under Sections 4(a) or 4(b), then such Holder may exercise all such rights and comply with all obligations applicable thereto except that the delivery of Common Stock will be deferred until such time as such Holder provides notice to the Company that such Holder may receive or beneficially own such Common Stock which exceeds the Beneficial Ownership Limitation applicable to such Holder without exceeding such then applicable Beneficial Ownership Limitation. “ 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 of 1933, as amended.

5.      Lock-Up .

(a)         Lock-Up . During the 180 day period following the Conversion Time (the “ Lock-Up Period ”), the Holder shall not (i) sell, transfer, assign, offer, pledge, contract to sell, transfer or assign, sell any option or contract to purchase, purchase any option or contract to sell, transfer or assign, grant any option, right or warrant to purchase, or otherwise transfer, assign or dispose of, directly or indirectly, any of the Conversion Shares (collectively, the “ Lock-Up Securities ”), or (ii) enter into any swap or other arrangement that transfers or assigns to another person or entity, in whole or in part, any of the economic benefits, obligations or other consequences of any nature of ownership of any Lock-Up Securities, whether any such transaction is to be settled by delivery of the Lock-Up Securities, in cash or otherwise (the “ Lock-Up ”). The foregoing Lock-Up restrictions may only be released or waived prior to the termination of the Lock-Up Period with the written consent of the Company and Dougherty. Notwithstanding anything to the contrary herein, the Lock-Up restrictions set forth in this Section 5 shall only apply to the Conversion Shares and not with respect to any other securities of the Company held by the Holder. Dougherty is an intended third-party beneficiary of this provision. The following restrictive “Lock-Up” legend shall be affixed to the Lock-Up Securities which shall be governed the terms of this Lock-Up provision:

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFER PURSUANT TO THE LOCK UP PROVISIONS CONTAINED IN THE PREFERRED STOCK CONVERSION AND LOCKUP AGREEMENT, DATED AS OF __, 2015 BY AND BETWEEN THE COMPANY AND THE HOLDER, A COPY OF WHICH MAY BE INSPECTED AT THE COMPANY’S PRINCIPAL OFFICE”.

(b)         Permitted Transfers . Notwithstanding the foregoing, the Holder (and any transferee of the Holder) may transfer any Lock-Up Securities: (i) as a bona fide gift or gifts, provided that prior to such transfer the donee or donees thereof agree in writing to be bound by the restrictions set forth herein, (ii) to any trust, partnership, corporation or other entity formed for the direct or indirect benefit of the Holder or the immediate family of the Holder, provided that prior to such transfer a duly authorized officer, representative or trustee of such transferee agrees in writing to be bound by the restrictions set forth herein, and provided further that any such transfer shall not involve a disposition for value, (iii) to non-profit organizations qualified as charitable organizations under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, or (iv) if such transfer occurs by operation of law, such as rules of descent and distribution, statutes governing the effects of a merger or a qualified domestic order, provided that prior to such transfer the transferee executes an agreement stating that the transferee is receiving and holding Lock-Up Securities subject to the provisions of this lockup. For purposes hereof, “immediate family” shall mean any relationship by blood, marriage or adoption, not more remote than first cousin. In addition, the foregoing shall not prohibit privately negotiated transactions, provided the transferees agree, in writing, to be bound to the terms of this lockup for the balance of the Lock-Up Period

6.      Independent Nature of Holder's Obligations and Rights . The obligations of the Holder under this Agreement are several and not joint with the obligations of any Other Buyers, and the Holder shall not be responsible in any way for the performance of the obligations of any Other Buyer under any Other Agreement. Nothing contained herein, any Other Agreement or the Transaction Documents, and no action taken by the Holder pursuant hereto, shall be deemed to constitute the Holder and Other Buyers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Holder and Other Buyers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by this Agreement any Other Agreement or the Transaction Documents, and the Company acknowledges that the Holder and the Other Buyers are not acting in concert or as a group with respect to such obligations or the transactions contemplated by this Agreement, any Other Agreement or the Transaction Documents. The Company and the Holder confirm that the Holder has independently participated in the negotiation of the transactions contemplated hereby with the advice of its own counsel and advisors. The Holder shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this Agreement, any Other Agreement or the Transaction Documents, and it shall not be necessary for any Other Buyer to be joined as an additional party in any proceeding for such purpose.

7.      No Third Party Beneficiaries . Except as expressly set forth herein, this Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

8.       Non-Public Information . The Company acknowledges and agrees that transactions and agreements contemplated hereby do not constitute material modifications to the Transaction Documents or the Certificate of Designation and consequently, as of the date hereof, the Company shall have disclosed all material, non-public information (if any) that it (including any of its subsidiaries or any of their respective officers, directors, employees or agents) provided to the Holder.

9.      Most Favored Nation . The Company hereby represents and warrants as of the date hereof and covenants and agrees from and after the date hereof that none of the terms offered to any person with respect to the transactions contemplated hereby (the conversion of the Company’s currently outstanding preferred stock), is or will be more favorable to such person than those of the Holder under this Agreement. The provisions of this Section 9 shall apply similarly and equally to each Other Agreement.

10.     Governing Law . This Agreement shall be governed and construed in accordance with the laws of the State of New York, regardless of the laws that might otherwise govern under applicable principles of conflicts of law thereof. The undersigned agrees, on its behalf and on behalf of its representatives, to submit to the jurisdiction of any court of competent jurisdiction located in the State of New York, County of New York, to resolve any dispute relating to this agreement and waive any right to move to dismiss or transfer any such action brought in any such court on the basis of any objection to personal jurisdiction or venue.

11.     Counterparts . This Agreement may be executed by the Company and the Holder in any number of counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.

[ Signature Page Follows ]

IN WITNESS WHEREOF, the Company and the Holder have executed this Agreement as of the Execution Date.

*           *            *           *           *

HOLDER :

Beneficial Ownership Limitation (if not 4.99%): ______%

Exhibit 10.6

PREFERRED STOCK CONVERSION AGREEMENT

This Preferred Stock Conversion Agreement (this “ Agreement ”), dated as of this ___ day of November 2015 (the “ Execution Date ”), by and among Drone Aviation Holding Corp.(the “ Company ”) and the holder of the Company’s Preferred Stock (as defined below) (the “ Holder ”).

RECITALS

WHEREAS, on June 3, 2014, the Company sold to the Holder pursuant to a subscription agreement (the “ Subscription Agreement ”) shares of the Company’s newly designated Series E Convertible Preferred Stock (the “ Preferred Stock ”) with such rights and preferences as set forth in the Certificate of Designation of Preferences, Rights and Limitations of Series E Preferred Stock (the “ Certificate of Designation ” and collectively with the Subscription Agreement and any related transaction documents, the “ Transaction Documents ”));

WHEREAS, the Holder currently holds the number of shares of Preferred Stock as set forth on Appendix A , attached hereto;

WHEREAS, the Company is contemplating a financing transaction (the “ Proposed Financing Transaction ”) whereby the Company will sell shares of its common stock, par value $0.0001 per share (the “ Common Stock ”) to certain accredited investors placed by Dougherty & Company, LLC (“ Dougherty ”);

WHEREAS, as a condition to the consummation of the Proposed Financing Transaction, the Company and Dougherty desire to restructure the Company’s capitalization as set forth herein;

WHEREAS, immediately after the closing of the Proposed Financing Transaction (the “ Conversion Time ”), subject to the terms hereof, in consideration for the execution and delivery of this Agreement, all shares of Preferred Stock held by the Holder shall be converted into shares of Common Stock, based on the conversion price or ratio set forth in the Certificate of Designation then in effect, without further action by the Holder (the “ Preferred Stock Conversion ”);

WHEREAS, pursuant to Section 8(b) of the Certificate of Designation and Section 2(d) of the Subscription Agreement, the Proposed Financing Transaction would trigger the obligation of the Company to issue additional shares of the Preferred Stock to the Holder (the “ Proposed Financing Issuance ”); and

WHEREAS, the Company and certain investors (including the Holder) (the “ Buyers ”) previously acquired the shares of Preferred Stock and concurrently herewith, Buyers (other than the Holder) (the “ Other Buyers ”) are executing preferred stock conversion similar to this Agreement (the “ Other Agreements and, together with this Agreement, the “ Agreements ”).

NOW, THEREFORE, in consideration of the foregoing, of the mutual agreements hereinafter set forth, and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Holder hereby agree follows:

AGREEMENT

1.       Recitals . The parties hereto agree that the Recitals set forth above are true and correct and are incorporated into this Agreement by this reference.

2.      Definitions . Unless otherwise defined herein, all terms used herein shall have the definitions specified in the Certificate of Designation and the Subscription Agreement.

3.      Holder Representations . The Holder hereby confirms and acknowledges that the aggregate number of shares of Preferred Stock currently held by the Holder are set forth on Schedule A attached hereto. The Holder owns the Preferred Stock free and clear of any and all liens, claims, encumbrances, preemptive rights, right of first refusal and adverse interests of any kind . Holder has the requisite power and authority to enter into this Agreement and to consummate the transactions contemplated hereby and otherwise to carry out Holder’s obligations hereunder. No consent, approval or agreement of any individual or entity is required to be obtained by the Holder in connection with the execution and performance by the Holder of this Agreement or the execution and performance by the Holder of any agreements, instruments or other obligations entered into in connection with this Agreement. There is no private or governmental action, suit, proceeding, claim, arbitration or investigation pending before any agency, court or tribunal, foreign or domestic, or, to the Holder’s knowledge, threatened against the Holder or any of Holder’s properties. There is no judgment, decree or order against the Holder that could prevent, enjoin, alter or delay any of the transactions contemplated by this Agreement. There are no material claims, actions, suits, proceedings, inquiries, labor disputes or investigations pending or, to the Holder’s knowledge, threatened against the Holder or any of its assets, at law or in equity or by or before any governmental entity or in arbitration or mediation. No bankruptcy, receivership or debtor relief proceedings are pending or, to the Holder’s knowledge, threatened against the Holder. The Holder is an “Accredited Investor” as defined in Rule 501(a) under the Securities Act of 1933, as amended.

4.      Automatic Preferred Stock Conversion .

(a)    Favored Nations Provision . The Company and the Holder acknowledge that the Proposed Financing Transaction would trigger the obligation of the Company under Section 8(b) of the Certificate of Designation and Section 2(d) of the Subscription Agreement to issue the Holder such additional shares of Preferred Stock such that the Holder would hold such number of shares of Preferred Stock had the Holder paid a per share price equal to the per share price in the Proposed Financing Transaction. Notwithstanding the foregoing, the Holder hereby waives any obligation of the Company to issue the Holder additional shares of Preferred Stock (or to amend the Certificate of Designation in connection therewith) and the Company shall, at the Conversion Time, issue such number of shares of Common Stock to the Holder that the Holder would have received had the Company consummated the Proposed Financing Issuance (such shares of Common Stock which are set forth on Annex A hereto, the “ Adjustment Shares ”), subject to the provisions of Section 4(b) and 4(e) herein.

(b)   Preferred Stock Conversion . At the Conversion Time, the Preferred Stock Conversion shall automatically take effect without any action on the part of the Holder such that the Holder shall receive that number of shares of Common Stock (the “ Conversion Shares ”) as stipulated therein and as stated on Schedule A attached hereto along with the Adjustment Shares and the Holder acknowledges, accepts and authorizes the foregoing Preferred Stock Conversion. To the extent that full conversion of all shares of Preferred Stock held by the Holder (including the Adjustment Shares) would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to receive such number of Conversion Shares to such extent (or beneficial ownership of such Conversion Shares as a result of such Preferred Stock Conversion to such extent) and such portion of such Preferred Stock Conversion (or the issuance of such Adjustment Shares) to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in such Holder exceeding the Beneficial Ownership Limitation (as defined and described below).

(c)    Cancellation of the Preferred Stock . The Holder unconditionally acknowledges, affirms and agrees that simultaneously with the Preferred Stock Conversion and delivery to the Holder of the Conversion Shares and the Adjustment Shares, the Preferred Stock shall be deemed canceled, null and void, and the Company shall have no further obligation to the Holder with respect to the Preferred Stock or the Certificate of Designation (except, with respect to the Certificate of Designation only to the extent such full Preferred Stock Conversion or issuance of the Adjustment Shares is not limited pursuant to Sections 4(a) and 4(c) herein).

(d)   Prospective Waiver of Favored Nations Provisions . At the Conversion Time, other than with respect to the Proposed Financing Issuance, the Holder hereby irrevocably waives any future issuances the Holder would otherwise be entitled to pursuant to Section 8(b) of the Certificate of Designation or Section 2(d) of the Subscription Agreement with respect to any Preferred Stock not converted (or Adjustment Shares not received) at the Conversion Time as a result of the restrictions set forth in Section 4(b) and 4(e) herein.

(e)    Beneficial Ownership Limitation . The Company shall not effect conversion of any Preferred Stock or issue any Adjustment Shares, and the Holder shall not have the right to exercise nor enforce any such right, pursuant this Section 4, to the extent that after giving effect to the application of such rights, the Holder (together with the Holder’s Affiliates, and any other persons acting as a group together with the Holder or any of the Holder’s Affiliates), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon application this Section 4 with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable upon exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates.  Except as set forth in the preceding sentence, for purposes of this Section 4, beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (“ Exchange Act ”) and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 4, in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with the Securities and Exchange Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Company’s transfer agent setting forth the number of shares of Common Stock outstanding.  Upon the written or oral request of the Holder, the Company shall within three trading days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company (subject to any beneficial ownership limitations contained therein, by the Holder or its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The “ Beneficial Ownership Limitation ” shall be 4.99%, (unless the Holder elects on its signature page hereto a different amount as its own Beneficial Ownership Limitation) of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon application of this Section 4 which would not exceed at such time the Beneficial Ownership Limitation. The Holder, upon not less than 61 days’ prior notice to the Company, may increase the Beneficial Ownership Limitation provisions of this Section 4 (for the avoidance of doubt, the Holder may on its signature page hereto to waive such Beneficial Ownership Limitation in its entirety (which such waiver shall be effective 61 days’ after the Closing Date) or set a different amount as its own Beneficial Ownership Limitation) of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon application of this Section 4 which would not exceed at such time the Beneficial Ownership Limitation and the provisions of this Section 4 shall continue to apply. Any such decrease will be effective immediately and any such increase will not be effective until the 61 ^st day after such notice is delivered to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 4 to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. In the event the limitations in this Section 4(e) would prevent the application of the Holder’s rights under Sections 4(a), 4(b) or 4(c), then such Holder may exercise all such rights and comply with all obligations applicable thereto except that the delivery of Common Stock will be deferred until such time as such Holder provides notice to the Company that such Holder may receive or beneficially own such Common Stock which exceeds the Beneficial Ownership Limitation applicable to such Holder without exceeding such then applicable Beneficial Ownership Limitation. “ 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 of 1933, as amended.

5.       [omitted] .

6.      Independent Nature of Holder's Obligations and Rights . The obligations of the Holder under this Agreement are several and not joint with the obligations of any Other Buyers, and the Holder shall not be responsible in any way for the performance of the obligations of any Other Buyer under any Other Agreement. Nothing contained herein, any Other Agreement or the Transaction Documents, and no action taken by the Holder pursuant hereto, shall be deemed to constitute the Holder and Other Buyers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Holder and Other Buyers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by this Agreement any Other Agreement or the Transaction Documents, and the Company acknowledges that the Holder and the Other Buyers are not acting in concert or as a group with respect to such obligations or the transactions contemplated by this Agreement, any Other Agreement or the Transaction Documents. The Company and the Holder confirm that the Holder has independently participated in the negotiation of the transactions contemplated hereby with the advice of its own counsel and advisors. The Holder shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this Agreement, any Other Agreement or the Transaction Documents, and it shall not be necessary for any Other Buyer to be joined as an additional party in any proceeding for such purpose.

7.      No Third Party Beneficiaries . Except as expressly set forth herein, this Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

8.       Non-Public Information . The Company acknowledges and agrees that transactions and agreements contemplated hereby do not constitute material modifications to the Transaction Documents or the Certificate of Designation and consequently, as of the date hereof, the Company shall have disclosed all material, non-public information (if any) that it (including any of its subsidiaries or any of their respective officers, directors, employees or agents) provided to the Holder.

9.      Most Favored Nation . The Company hereby represents and warrants as of the date hereof and covenants and agrees from and after the date hereof that none of the terms offered to any person with respect to the transactions contemplated hereby (the conversion of the Company’s currently outstanding preferred stock), is or will be more favorable to such person than those of the Holder under this Agreement. The provisions of this Section 9 shall apply similarly and equally to each Other Agreement.

10.    Governing Law . This Agreement shall be governed and construed in accordance with the laws of the State of New York, regardless of the laws that might otherwise govern under applicable principles of conflicts of law thereof. The undersigned agrees, on its behalf and on behalf of its representatives, to submit to the jurisdiction of any court of competent jurisdiction located in the State of New York, County of New York, to resolve any dispute relating to this agreement and waive any right to move to dismiss or transfer any such action brought in any such court on the basis of any objection to personal jurisdiction or venue.

11.    Counterparts . This Agreement may be executed by the Company and the Holder in any number of counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.

[ Signature Page Follows ]

IN WITNESS WHEREOF, the Company and the Holder have executed this Agreement as of the Execution Date.

*           *            *           *           *

HOLDER :

Beneficial Ownership Limitation (if not 4.99%): ______%

Exhibit 10.7

PREFERRED STOCK CONVERSION AGREEMENT

This Preferred Stock Conversion (this “ Agreement ”), dated as of this ___ day of November 2015 (the “ Execution Date ”), by and among Drone Aviation Holding Corp.(the “ Company ”) and the holder of the Company’s Preferred Stock (as defined below) (the “ Holder ”).

RECITALS

WHEREAS, on August 27, 2014, the Company sold to the Holder pursuant to a subscription agreement (the “ Subscription Agreement ”) shares of the Company’s newly designated Series F Convertible Preferred Stock (the “ Preferred Stock ”) with such rights and preferences as set forth in the Certificate of Designation of Preferences, Rights and Limitations of Series F Preferred Stock (the “ Certificate of Designation ” and collectively with the Subscription Agreement and any related transaction documents, the “ Transaction Documents ”));

WHEREAS, the Holder currently holds the number of shares of Preferred Stock as set forth on Appendix A , attached hereto;

WHEREAS, the Company is contemplating a financing transaction (the “ Proposed Financing Transaction ”) whereby the Company will sell shares of its common stock, par value $0.0001 per share (the “ Common Stock ”) to certain accredited investors placed by Dougherty & Company, LLC (“ Dougherty ”);

WHEREAS, as a condition to the consummation of the Proposed Financing Transaction, the Company and Dougherty desire to restructure the Company’s capitalization structure, as set forth herein;

WHEREAS, immediately after the closing of the Proposed Financing Transaction (the “ Conversion Time ”), subject to the terms hereof, in consideration for the execution and delivery of this Agreement, all shares of Preferred Stock held by the Holder shall be converted into shares of Common Stock, based on the conversion price or ratio set forth in the Certificate of Designation then in effect, without further action by the Holder (the “ Preferred Stock Conversion ”);

WHEREAS, pursuant to Section 2(d) of the Subscription Agreement, the Company is prohibited from issuing any Common Stock or securities convertible into exercisable for shares of Common Stock at a price per share (or conversion or exercise price per share) which is less than the per share price of the Preferred Stock sold pursuant to the Transactions Documents (such issuance, a “ Lower Priced Issuance ”);

WHEREAS, the Proposed Financing Transaction would qualify as a Lower Priced Issuance and the Company desires to obtain the consent therefore from the Holder in consideration for the issuance of such additional securities of the Company such that the Holder would hold such number of shares of Common Stock (on a post-conversion basis) had the Holder purchased the Preferred Stock for a per share price equal to the per share price in the Proposed Financing (the “ Proposed Financing Issuance ”); and

WHEREAS, the Company and certain investors (including the Holder) (the “ Buyers ”) previously acquired the shares of Preferred Stock and concurrently herewith, Buyers (other than the Holder) (the “ Other Buyers ”) are executing preferred stock conversion agreements similar to this Agreement (the “ Other Agreements and, together with this Agreement, the “ Agreements ”).

NOW, THEREFORE, in consideration of the foregoing, of the mutual agreements hereinafter set forth, and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Holder hereby agree follows:

AGREEMENT

1.       Recitals . The parties hereto agree that the Recitals set forth above are true and correct and are incorporated into this Agreement by this reference.

2.      Definitions . Unless otherwise defined herein, all terms used herein shall have the definitions specified in the Certificate of Designation and the Subscription Agreement.

3.      Holder Representations . The Holder hereby confirms and acknowledges that the aggregate number of shares of Preferred Stock currently held by the Holder are set forth on Schedule A attached hereto. The Holder owns the Preferred Stock free and clear of any and all liens, claims, encumbrances, preemptive rights, right of first refusal and adverse interests of any kind . Holder has the requisite power and authority to enter into this Agreement and to consummate the transactions contemplated hereby and otherwise to carry out Holder’s obligations hereunder. No consent, approval or agreement of any individual or entity is required to be obtained by the Holder in connection with the execution and performance by the Holder of this Agreement or the execution and performance by the Holder of any agreements, instruments or other obligations entered into in connection with this Agreement. There is no private or governmental action, suit, proceeding, claim, arbitration or investigation pending before any agency, court or tribunal, foreign or domestic, or, to the Holder’s knowledge, threatened against the Holder or any of Holder’s properties. There is no judgment, decree or order against the Holder that could prevent, enjoin, alter or delay any of the transactions contemplated by this Agreement. There are no material claims, actions, suits, proceedings, inquiries, labor disputes or investigations pending or, to the Holder’s knowledge, threatened against the Holder or any of its assets, at law or in equity or by or before any governmental entity or in arbitration or mediation. No bankruptcy, receivership or debtor relief proceedings are pending or, to the Holder’s knowledge, threatened against the Holder. The Holder is an “Accredited Investor” as defined in Rule 501(a) under the Securities Act of 1933, as amended.

4.      Automatic Preferred Stock Conversion .

(a)     Favored Nations Provision . The Company and the Holder acknowledge that the Proposed Financing Transaction would be considered a Lower Priced Issuance that requires the consent of the Holder under Section 2(d) of the Subscription Agreement. The Holder hereby consents to the consummation of the Proposed Financing and in consideration therefore, the Company has agreed to issue the Holder such additional securities such that the Holder would hold such number of shares of Common Stock (on a post-conversion basis) had the Holder paid a per share price for the Preferred Stock equal to the per share price in the Proposed Financing Transaction. Notwithstanding the foregoing, the Holder hereby waives any obligation of the Company to issue the Holder additional shares of Preferred Stock (or to amend the Certificate of Designation in connection therewith) and the Company shall, at the Conversion Time, issue such number of shares of Common Stock to the Holder that the Holder would have received had the Company consummated the Proposed Financing Issuance in the form of Preferred Stock (such shares of Common Stock which are set forth on Annex A hereto, the “ Adjustment Shares ”), subject to the provisions of Section 4(b) and 4(e) herein.

(b)   Preferred Stock Conversion . At the Conversion Time, the Preferred Stock Conversion shall automatically take effect without any action on the part of the Holder such that the Holder shall receive that number of shares of Common Stock (the “ Conversion Shares ”) as stipulated therein and as stated on Schedule A attached hereto along with the Adjustment Shares and the Holder acknowledges, accepts and authorizes the foregoing Preferred Stock Conversion. To the extent that full conversion of all shares of Preferred Stock held by the Holder (including the Adjustment Shares) would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to receive such number of Conversion Shares to such extent (or beneficial ownership of such Conversion Shares as a result of such Preferred Stock Conversion to such extent) and such portion of such Preferred Stock Conversion (or the issuance of such Adjustment Shares) to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in such Holder exceeding the Beneficial Ownership Limitation (as defined and described below).

(c)    Cancellation of the Preferred Stock . The Holder unconditionally acknowledges, affirms and agrees that simultaneously with the Preferred Stock Conversion and delivery to the Holder of the Conversion Shares and the Adjustment Shares, the Preferred Stock shall be deemed canceled, null and void, and the Company shall have no further obligation to the Holder with respect to the Preferred Stock or the Certificate of Designation (except, with respect to the Certificate of Designation only to the extent such full Preferred Stock Conversion or issuance of the Adjustment Shares is not limited pursuant to Sections 4(a) and 4(c) herein).

(d)     Prospective Waiver of Favored Nations Provisions . At the Conversion Time, other than with respect to the Proposed Financing Issuance, the Holder hereby irrevocably waives any obligation the Company would have to obtain the consent of the Holder for a Lower Priced Issuance under Section 2(d) of the Subscription Agreement with respect to any Preferred Stock not converted at the Conversion Time (or Adjustment Shares not received) as a result of the restrictions set forth in Section 4(b) and 4(e) herein.

(e)    Beneficial Ownership Limitation . The Company shall not effect conversion of any Preferred Stock or issue any Adjustment Shares, and the Holder shall not have the right to exercise nor enforce any such right, pursuant this Section 4, to the extent that after giving effect to the application of such rights, the Holder (together with the Holder’s Affiliates, and any other persons acting as a group together with the Holder or any of the Holder’s Affiliates), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon application this Section 4 with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable upon exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates.  Except as set forth in the preceding sentence, for purposes of this Section 4, beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (“ Exchange Act ”) and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 4, in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with the Securities and Exchange Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Company’s transfer agent setting forth the number of shares of Common Stock outstanding.  Upon the written or oral request of the Holder, the Company shall within three trading days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company (subject to any beneficial ownership limitations contained therein, by the Holder or its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The “ Beneficial Ownership Limitation ” shall be 4.99%, (unless the Holder elects on its signature page hereto a different amount as its own Beneficial Ownership Limitation) of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon application of this Section 4 which would not exceed at such time the Beneficial Ownership Limitation. The Holder, upon not less than 61 days’ prior notice to the Company, may increase the Beneficial Ownership Limitation provisions of this Section 4 (for the avoidance of doubt, the Holder may on its signature page hereto to waive such Beneficial Ownership Limitation in its entirety (which such waiver shall be effective 61 days’ after the Closing Date) or set a different amount as its own Beneficial Ownership Limitation) of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon application of this Section 4 which would not exceed at such time the Beneficial Ownership Limitation and the provisions of this Section 4 shall continue to apply. Any such decrease will be effective immediately and any such increase will not be effective until the 61 ^st day after such notice is delivered to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 4 to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. In the event the limitations in this Section 4(e) would prevent the application of the Holder’s rights under Sections 4(a), 4(b) or 4(c), then such Holder may exercise all such rights and comply with all obligations applicable thereto except that the delivery of Common Stock will be deferred until such time as such Holder provides notice to the Company that such Holder may receive or beneficially own such Common Stock which exceeds the Beneficial Ownership Limitation applicable to such Holder without exceeding such then applicable Beneficial Ownership Limitation. “ 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 of 1933, as amended.

5.       [omitted] .

6.      Independent Nature of Holder's Obligations and Rights . The obligations of the Holder under this Agreement are several and not joint with the obligations of any Other Buyers, and the Holder shall not be responsible in any way for the performance of the obligations of any Other Buyer under any Other Agreement. Nothing contained herein, any Other Agreement or the Transaction Documents, and no action taken by the Holder pursuant hereto, shall be deemed to constitute the Holder and Other Buyers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Holder and Other Buyers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by this Agreement any Other Agreement or the Transaction Documents, and the Company acknowledges that the Holder and the Other Buyers are not acting in concert or as a group with respect to such obligations or the transactions contemplated by this Agreement, any Other Agreement or the Transaction Documents. The Company and the Holder confirm that the Holder has independently participated in the negotiation of the transactions contemplated hereby with the advice of its own counsel and advisors. The Holder shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this Agreement, any Other Agreement or the Transaction Documents, and it shall not be necessary for any Other Buyer to be joined as an additional party in any proceeding for such purpose.

7.      No Third Party Beneficiaries . Except as expressly set forth herein, this Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

8.       Non-Public Information . The Company acknowledges and agrees that transactions and agreements contemplated hereby do not constitute material modifications to the Transaction Documents or the Certificate of Designation and consequently, as of the date hereof, the Company shall have disclosed all material, non-public information (if any) that it (including any of its subsidiaries or any of their respective officers, directors, employees or agents) provided to the Holder.

9.      Most Favored Nation . The Company hereby represents and warrants as of the date hereof and covenants and agrees from and after the date hereof that none of the terms offered to any person with respect to the transactions contemplated hereby (the conversion of the Company’s currently outstanding preferred stock), is or will be more favorable to such person than those of the Holder under this Agreement. The provisions of this Section 9 shall apply similarly and equally to each Other Agreement.

10.    Governing Law . This Agreement shall be governed and construed in accordance with the laws of the State of New York, regardless of the laws that might otherwise govern under applicable principles of conflicts of law thereof. The undersigned agrees, on its behalf and on behalf of its representatives, to submit to the jurisdiction of any court of competent jurisdiction located in the State of New York, County of New York, to resolve any dispute relating to this agreement and waive any right to move to dismiss or transfer any such action brought in any such court on the basis of any objection to personal jurisdiction or venue.

11.    Counterparts . This Agreement may be executed by the Company and the Holder in any number of counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.

[ Signature Page Follows ]

IN WITNESS WHEREOF, the Company and the Holder have executed this Agreement as of the Execution Date.

*           *            *           *           *

HOLDER :

Beneficial Ownership Limitation (if not 4.99%): ______%

Exhibit 10.8

PREFERRED STOCK CONVERSION AGREEMENT

This Preferred Stock Conversion (this “ Agreement ”), dated as of this ___ day of November 2015 (the “ Execution Date ”), by and among Drone Aviation Holding Corp.(the “ Company ”) and the holder of the Company’s Preferred Stock (as defined below) (the “ Holder ”).

RECITALS

WHEREAS, on June 2, 2015, the Company sold to the Holder pursuant to a subscription agreement (the “ Subscription Agreement ”) shares of the Company’s newly designated Series G Convertible Preferred Stock (the “ Preferred Stock ”) with such rights and preferences as set forth in the Certificate of Designation of Preferences, Rights and Limitations of Series G Preferred Stock (the “ Certificate of Designation ” and collectively with the Subscription Agreement and any related transaction documents, the “ Transaction Documents ”));

WHEREAS, the Holder currently holds the number of shares of Preferred Stock as set forth on Appendix A , attached hereto;

WHEREAS, the Company is contemplating a financing transaction (the “ Proposed Financing Transaction ”) whereby the Company will sell shares of its common stock, par value $0.0001 per share (the “ Common Stock ”) to certain accredited investors placed by Dougherty & Company, LLC (“ Dougherty ”);

WHEREAS, as a condition to the consummation of the Proposed Financing Transaction, the Company and Dougherty desire to restructure the Company’s capitalization structure, as set forth herein;

WHEREAS, immediately after the closing of the Proposed Financing Transaction (the “ Conversion Time ”), subject to the terms hereof, in consideration for the execution and delivery of this Agreement, all shares of Preferred Stock held by the Holder shall be converted into shares of Common Stock, based on the conversion price or ratio set forth in the Certificate of Designation then in effect, without further action by the Holder (the “ Preferred Stock Conversion ”);

WHEREAS, pursuant to Section 8(b) of the Certificate of Designation and Section 2(d) of the Subscription Agreement, the Company is prohibited from issuing any Common Stock or securities convertible into exercisable for shares of Common Stock at a price per share (or conversion or exercise price per share) which is less than the per share price of the Preferred Stock sold pursuant to the Transactions Documents (such issuance, a “ Lower Priced Issuance ”);

WHEREAS, the Proposed Financing Transaction would qualify as a Lower Priced Issuance and the Company desires to obtain the consent therefore from the Holder in consideration for the issuance of such additional securities of the Company such that the Holder would hold such number of shares of Common Stock (on a post-conversion basis) had the Holder purchased the Preferred Stock for a per share price equal to the per share price in the Proposed Financing (the “ Proposed Financing Issuance ”); and

WHEREAS, the Company and certain investors (including the Holder) (the “ Buyers ”) previously acquired the shares of Preferred Stock and concurrently herewith, Buyers (other than the Holder) (the “ Other Buyers ”) are executing preferred stock conversion agreements similar to this Agreement (the “ Other Agreements and, together with this Agreement, the “ Agreements ”).

NOW, THEREFORE, in consideration of the foregoing, of the mutual agreements hereinafter set forth, and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Holder hereby agree follows:

AGREEMENT

1.       Recitals . The parties hereto agree that the Recitals set forth above are true and correct and are incorporated into this Agreement by this reference.

2.      Definitions . Unless otherwise defined herein, all terms used herein shall have the definitions specified in the Certificate of Designation and the Subscription Agreement.

3.      Holder Representations . The Holder hereby confirms and acknowledges that the aggregate number of shares of Preferred Stock currently held by the Holder are set forth on Schedule A attached hereto. The Holder owns the Preferred Stock free and clear of any and all liens, claims, encumbrances, preemptive rights, right of first refusal and adverse interests of any kind . Holder has the requisite power and authority to enter into this Agreement and to consummate the transactions contemplated hereby and otherwise to carry out Holder’s obligations hereunder. No consent, approval or agreement of any individual or entity is required to be obtained by the Holder in connection with the execution and performance by the Holder of this Agreement or the execution and performance by the Holder of any agreements, instruments or other obligations entered into in connection with this Agreement. There is no private or governmental action, suit, proceeding, claim, arbitration or investigation pending before any agency, court or tribunal, foreign or domestic, or, to the Holder’s knowledge, threatened against the Holder or any of Holder’s properties. There is no judgment, decree or order against the Holder that could prevent, enjoin, alter or delay any of the transactions contemplated by this Agreement. There are no material claims, actions, suits, proceedings, inquiries, labor disputes or investigations pending or, to the Holder’s knowledge, threatened against the Holder or any of its assets, at law or in equity or by or before any governmental entity or in arbitration or mediation. No bankruptcy, receivership or debtor relief proceedings are pending or, to the Holder’s knowledge, threatened against the Holder. The Holder is an “Accredited Investor” as defined in Rule 501(a) under the Securities Act of 1933, as amended.

4.      Automatic Preferred Stock Conversion .

(a)     Favored Nations Provision . The Company and the Holder acknowledge that the Proposed Financing Transaction would be considered a Lower Priced Issuance that requires the consent of the Holder under Section 8(b) of the Certificate of Designation and Section 2(d) of the Subscription Agreement. The Holder hereby consents to the consummation of the Proposed Financing and in consideration therefore, the Company has agreed to issue the Holder such additional securities such that the Holder would hold such number of shares of Common Stock (on a post-conversion basis) had the Holder paid a per share price for the Preferred Stock equal to the per share price in the Proposed Financing Transaction. Notwithstanding the foregoing, the Holder hereby waives any obligation of the Company to issue the Holder additional shares of Preferred Stock (or to amend the Certificate of Designation in connection therewith) and the Company shall, at the Conversion Time, issue such number of shares of Common Stock to the Holder that the Holder would have received had the Company consummated the Proposed Financing Issuance in the form of Preferred Stock (such shares of Common Stock which are set forth on Annex A hereto, the “ Adjustment Shares ”), subject to the provisions of Section 4(b) and 4(e) herein.  

(b)   Preferred Stock Conversion . At the Conversion Time, the Preferred Stock Conversion shall automatically take effect without any action on the part of the Holder such that the Holder shall receive that number of shares of Common Stock (the “ Conversion Shares ”) as stipulated therein and as stated on Schedule A attached hereto along with the Adjustment Shares and the Holder acknowledges, accepts and authorizes the foregoing Preferred Stock Conversion. To the extent that full conversion of all shares of Preferred Stock held by the Holder (including the Adjustment Shares) would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to receive such number of Conversion Shares to such extent (or beneficial ownership of such Conversion Shares as a result of such Preferred Stock Conversion to such extent) and such portion of such Preferred Stock Conversion (or the issuance of such Adjustment Shares) to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in such Holder exceeding the Beneficial Ownership Limitation (as defined and described below).

(c)    Cancellation of the Preferred Stock . The Holder unconditionally acknowledges, affirms and agrees that simultaneously with the Preferred Stock Conversion and delivery to the Holder of the Conversion Shares and the Adjustment Shares, the Preferred Stock shall be deemed canceled, null and void, and the Company shall have no further obligation to the Holder with respect to the Preferred Stock or the Certificate of Designation (except, with respect to the Certificate of Designation only to the extent such full Preferred Stock Conversion or issuance of the Adjustment Shares is not limited pursuant to Sections 4(a) and 4(c) herein).

(d)     Prospective Waiver of Favored Nations Provisions . At the Conversion Time, other than with respect to the Proposed Financing Issuance, the Holder hereby irrevocably waives any obligation the Company would have to obtain the consent of the Holder for a Lower Priced Issuance under Section 8(b) of the Certificate of Designation and Section 2(d) of the Subscription Agreement with respect to any Preferred Stock not converted at the Conversion Time (or Adjustment Shares not received) as a result of the restrictions set forth in Section 4(b) and 4(e) herein.

(e)    Beneficial Ownership Limitation . The Company shall not effect conversion of any Preferred Stock or issue any Adjustment Shares, and the Holder shall not have the right to exercise nor enforce any such right, pursuant this Section 4, to the extent that after giving effect to the application of such rights, the Holder (together with the Holder’s Affiliates, and any other persons acting as a group together with the Holder or any of the Holder’s Affiliates), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon application this Section 4 with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable upon exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates.  Except as set forth in the preceding sentence, for purposes of this Section 4, beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (“ Exchange Act ”) and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 4, in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with the Securities and Exchange Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Company’s transfer agent setting forth the number of shares of Common Stock outstanding.  Upon the written or oral request of the Holder, the Company shall within three trading days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company (subject to any beneficial ownership limitations contained therein, by the Holder or its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The “ Beneficial Ownership Limitation ” shall be 4.99%, (unless the Holder elects on its signature page hereto a different amount as its own Beneficial Ownership Limitation) of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon application of this Section 4 which would not exceed at such time the Beneficial Ownership Limitation. The Holder, upon not less than 61 days’ prior notice to the Company, may increase the Beneficial Ownership Limitation provisions of this Section 4 (for the avoidance of doubt, the Holder may on its signature page hereto to waive such Beneficial Ownership Limitation in its entirety (which such waiver shall be effective 61 days’ after the Closing Date) or set a different amount as its own Beneficial Ownership Limitation) of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon application of this Section 4 which would not exceed at such time the Beneficial Ownership Limitation and the provisions of this Section 4 shall continue to apply. Any such decrease will be effective immediately and any such increase will not be effective until the 61 ^st day after such notice is delivered to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 4 to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. In the event the limitations in this Section 4(e) would prevent the application of the Holder’s rights under Sections 4(a), 4(b) or 4(c), then such Holder may exercise all such rights and comply with all obligations applicable thereto except that the delivery of Common Stock will be deferred until such time as such Holder provides notice to the Company that such Holder may receive or beneficially own such Common Stock which exceeds the Beneficial Ownership Limitation applicable to such Holder without exceeding such then applicable Beneficial Ownership Limitation. “ 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 of 1933, as amended.

5.       [omitted] .

6.      Independent Nature of Holder's Obligations and Rights . The obligations of the Holder under this Agreement are several and not joint with the obligations of any Other Buyers, and the Holder shall not be responsible in any way for the performance of the obligations of any Other Buyer under any Other Agreement. Nothing contained herein, any Other Agreement or the Transaction Documents, and no action taken by the Holder pursuant hereto, shall be deemed to constitute the Holder and Other Buyers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Holder and Other Buyers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by this Agreement any Other Agreement or the Transaction Documents, and the Company acknowledges that the Holder and the Other Buyers are not acting in concert or as a group with respect to such obligations or the transactions contemplated by this Agreement, any Other Agreement or the Transaction Documents. The Company and the Holder confirm that the Holder has independently participated in the negotiation of the transactions contemplated hereby with the advice of its own counsel and advisors. The Holder shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this Agreement, any Other Agreement or the Transaction Documents, and it shall not be necessary for any Other Buyer to be joined as an additional party in any proceeding for such purpose.

7.      No Third Party Beneficiaries . Except as expressly set forth herein, this Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

8.       Non-Public Information . The Company acknowledges and agrees that transactions and agreements contemplated hereby do not constitute material modifications to the Transaction Documents or the Certificate of Designation and consequently, as of the date hereof, the Company shall have disclosed all material, non-public information (if any) that it (including any of its subsidiaries or any of their respective officers, directors, employees or agents) provided to the Holder.

9.      Most Favored Nation . The Company hereby represents and warrants as of the date hereof and covenants and agrees from and after the date hereof that none of the terms offered to any person with respect to the transactions contemplated hereby (the conversion of the Company’s currently outstanding preferred stock), is or will be more favorable to such person than those of the Holder under this Agreement. The provisions of this Section 9 shall apply similarly and equally to each Other Agreement.

10.    Governing Law . This Agreement shall be governed and construed in accordance with the laws of the State of New York, regardless of the laws that might otherwise govern under applicable principles of conflicts of law thereof. The undersigned agrees, on its behalf and on behalf of its representatives, to submit to the jurisdiction of any court of competent jurisdiction located in the State of New York, County of New York, to resolve any dispute relating to this agreement and waive any right to move to dismiss or transfer any such action brought in any such court on the basis of any objection to personal jurisdiction or venue.

11.    Counterparts . This Agreement may be executed by the Company and the Holder in any number of counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.

[ Signature Page Follows ]

IN WITNESS WHEREOF, the Company and the Holder have executed this Agreement as of the Execution Date.

*           *            *           *           *

HOLDER :

Beneficial Ownership Limitation (if not 4.99%): ______%

Exhibit 10.9

EXCHANGE AGREEMENT

THIS EXCHANGE AGREEMENT (the “Agreement”), dated as of November [ ], 2015, is made by and between Drone Aviation Holding Corporation, a Nevada corporation (“Company”), and the holder of the Company’s Series B-1 Preferred Stock signatory hereto (“Holder”).

WHEREAS, on April 17, 2014, the Company entered in an exchange agreement (the “Exchange Agreement”) with the Holder whereby the Holder exchanged a portion of a convertible promissory note previously issued by the Company on September 30, 2012 (the “Note”) and acquired by the Holder on April 16, 2014 (the “Note Purchase Date”) for shares of the Company’s newly designated Series D-1 Convertible Preferred Stock (the “Series D-1 Shares”);

WHEREAS, on April 30, 2014, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with its wholly owned subsidiary for the sole purpose of changing its state of incorporation from Oklahoma to Nevada (the “Reincorporation”);

WHEREAS, in connection with the Reincorporation and in exchange for the Series D-1 Shares, the Company issued the Holder shares of the Company’s newly designated Series B-1 Preferred Stock (the “Preferred Stock”), with such rights and preferences as set forth in the Certificate of Designation of Preferences, Rights and Limitations of Series B-1 Preferred Stock (the “Certificate of Designation” and collectively with the Exchange Agreement, the Merger Agreement and any related transaction documents, the “Transaction Documents”) and the Holder currently holds 68,731 shares of Preferred Stock (the “Exchange Securities”)

WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to Section 3(a)(9) of the Securities Act of 1933, as amended (the “Securities Act”), the Company desires to exchange with the Holder, and the Holder desires to exchange with the Company, the Exchange Securities for shares of the Company’s common stock, par value $0.0001 per share (the “Common Stock”);

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 Holder agree as follows:

1.            Terms of the Exchange . The Company and Holder agree that the Holder will exchange the Exchange Securities and will relinquish any and all other rights he may have under the Exchange Securities and the relate Transaction Documents in exchange for 55,000 shares of Common Stock (the “Shares” or the “Securities”). Additionally, the Holder hereby waives any and all unpaid dividends accrued, if any, on the Exchange Securities, including, without limitation, the obligation of the Company to pay any payment upon the occurrence of any Fundamental Transaction (as such terms are defined in the Certificate of Designation) pursuant to Section 3 of the Certificate of Designation, as of the date of issuance and releases the Company from any payment thereof or obligation in connection therewith.

2.             Closing . Upon satisfaction of the conditions set forth herein, a closing (the “Closing”) shall occur at the principal offices of the Company, or such other location as the parties shall mutually agree. At Closing, Holder shall deliver certificates (or book entry statements) representing the Exchange Securities to the Company and the Company shall deliver to such Holder a certificate (or book entry statement) evidencing the Shares. Upon Closing, any and all obligations of the Company to Holder under the Exchange Securities and the Transaction Documents shall be fully satisfied, the certificates evidencing the Exchange Securities shall be cancelled and Holder will have no remaining rights, powers, privileges, remedies or interests under the Exchange Securities (including, without limitation, Section 3 of the Certificate of Designation) or the Transaction Documents.

3.             Further Assurances

Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

4.             Representations and Warranties of the Holder . The Holder represents and warrants as of the date hereof and as of the Closing to the Company as follows:

a.            Authorization; Enforcement . The Holder has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement by the Holder and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Holder and no further action is required by the Holder. This Agreement has been (or upon delivery will have been) duly executed by the Holder and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the Holder enforceable against the Holder 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.

b.            Tax Advisors . The Holder has reviewed with its own tax advisors the U.S. federal, state, local and foreign tax consequences of this investment and the transactions contemplated by this Agreement. With respect to such matters, the Holder relies solely on such advisors and not on any statements or representations of the Company or any of its agents, written or oral. The Holder understands that it (and not the Company) shall be responsible for its own tax liability that may arise as a result of this investment or the transactions contemplated by this Agreement.

c.             Information Regarding Holder . Holder is an “accredited investor”, as such term is defined in Rule 501 of Regulation D promulgated by the United States Securities and Exchange Commission (the “Commission”) under the Securities Act, is experienced in investments and business matters, has made investments of a speculative nature and has purchased securities of companies in private placements in the past and, with its representatives, has such knowledge and experience in financial, tax and other business matters as to enable the Holder to utilize the information made available by the Company to evaluate the merits and risks of and to make an informed investment decision with respect to the proposed purchase, which represents a speculative investment. Holder has the authority and is duly and legally qualified to purchase and own the Securities. Holder is able to bear the risk of such investment for an indefinite period and to afford a complete loss thereof.

d.             Legend . The Holder understands that the Securities have been issued pursuant to an exemption from registration or qualification under the Securities Act and applicable state securities laws, and except as set forth below, the Securities shall bear any legend as required by the “blue sky” laws of any state and a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of such stock certificates):

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL TO THE HOLDER (IF REQUESTED BY THE COMPANY), IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

e.            Removal of Legends . Certificates evidencing Securities shall not be required to contain the legend set forth in Section 4(d) above or any other legend (other than a “lock-up” legend, if applicable) (i) while a registration statement covering the resale of such Securities is effective under the Securities Act, (ii) following any sale of such Securities pursuant to Rule 144 (assuming the transferor is not an affiliate of the Company), (iii) if such Securities are eligible to be sold, assigned or transferred under Rule 144 and the Subscriber is not an affiliate of the Company (provided that the Holder provides the Company with reasonable assurances that such Securities are eligible for sale, assignment or transfer under Rule 144 which shall not include an opinion of the Holder’s counsel), (iv) in connection with a sale, assignment or other transfer (other than under Rule 144), provided that the Holder provides the Company with an opinion of counsel to the Holder, in a generally acceptable form, to the effect that such sale, assignment or transfer of the Securities may be made without registration under the applicable requirements of the Securities Act or (v) if such legend is not required under applicable requirements of the Securities Act (including, without limitation, controlling judicial interpretations and pronouncements issued by the Commission). If a legend is not required pursuant to the foregoing, the Company shall no later than three (3) business days following the delivery by the Holder to the Company or the transfer agent (with notice to the Company) of a legended certificate representing such Securities (endorsed or with stock powers attached, signatures guaranteed, and otherwise in form necessary to affect the reissuance and/or transfer, if applicable), together with any other deliveries from the Holder as may be required above in this Section 4(e), as directed by the Holder, either: (A) provided that the Company’s transfer agent is participating in the DTC Fast Automated Securities Transfer Program, credit the aggregate number of shares of Common Stock to which the Holder shall be entitled to the Holder’s or its designee’s balance account with DTC through its Deposit/Withdrawal at Custodian system or (B) if the Company’s transfer agent is not participating in the DTC Fast Automated Securities Transfer Program, issue and deliver (via reputable overnight courier) to the Holder, a certificate representing such Securities that is free from all restrictive and other legends, registered in the name of the Holder or its designee. The Company shall be responsible for any transfer agent fees or DTC fees with respect to any issuance of Securities or the removal of any legends with respect to any Securities in accordance herewith, including, but not limited to, fees for the opinions of counsel rendered to the transfer agent in connection with the removal of any legends.

f.            Restricted Securities . The Holder understands that: (i) the Securities have not been and are not being registered under the Securities Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently registered thereunder, (B) the Holder shall have delivered to the Company (if requested by the Company) an opinion of counsel to the Holder, in a form reasonably acceptable to the Company, to the effect that such Securities to be sold, assigned or transferred may be sold, assigned or transferred pursuant to an exemption from such registration, or (C) the Holder provides the Company with reasonable assurance that such Securities can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A promulgated under the Securities Act (or a successor rule thereto) (collectively, “Rule 144”); (ii) any sale of the Securities made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144, and further, if Rule 144 is not applicable, any resale of the Securities under circumstances in which the seller (or the Person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the Securities Act) may require compliance with some other exemption under the Securities Act or the rules and regulations of the Commission promulgated thereunder; and (iii) neither the Company nor any other Person is under any obligation to register the Securities under the Securities Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder.

5.            Representations and Warranties of the Company . The Company hereby makes the following representations and warranties to the Holder:

a.            Authorization; Enforcement . The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this Agreement and each of the other agreements entered into by the parties hereto in connection with the transactions contemplated by this Agreement (collectively, the “Exchange Documents”) and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement by the Company and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company, the Board of Directors of the Company or the Company’s stockholders in connection therewith, including, without limitation, the issuance of the Shares and no further filing, consent, or authorization is required by the Company, its Board of Directors or its stockholders. This Agreement has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof, 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.

b.            Organization and Qualification . Each of the Company and its subsidiaries (the “Subsidiaries”) are entities duly organized and validly existing and in good standing under the laws of the jurisdiction in which they are formed, and have the requisite power and authorization to own their properties and to carry on their business as now being conducted and as presently proposed to be conducted. Each of the Company and each of its Subsidiaries is duly qualified as a foreign entity to do business and is in good standing in every jurisdiction in which its ownership of property or the nature of the business conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would not have a Material Adverse Effect. As used in this Agreement, “Material Adverse Effect” means any material adverse effect on (i) the business, properties, assets, liabilities, operations (including results thereof), condition (financial or otherwise) or prospects of the Company or any Subsidiary, individually or taken as a whole, (ii) the transactions contemplated hereby or in any of the other Exchange Documents or (iii) the authority or ability of the Company to perform any of its obligations under any of the Exchange Documents. Other than its Subsidiaries, there is no Person (as defined below) in which the Company, directly or indirectly, owns capital stock or holds an equity or similar interest. “Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity and any governmental entity or any department or agency thereof.

c.            No Conflict . The execution, delivery and performance of the Exchange Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Shares) will not (i) (i) result in a violation of the Articles of Incorporation (as defined below) or other organizational documents of the Company or any of its Subsidiaries, any capital stock of the Company or any of its Subsidiaries or Bylaws (as defined below) of the Company or any of its Subsidiaries, (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company or any of its Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including foreign, federal and state securities laws and regulations and the rules and regulations of the OTC Markets (the “Principal Market”) applicable to the Company or any of its Subsidiaries or by which any property or asset of the Company or any of its Subsidiaries is bound or affected except, in the case of clause (ii) or (iii) above, to the extent such violations that could not reasonably be expected to have a Material Adverse Effect.

d.            No Consents . Neither the Company nor any Subsidiary is required to obtain any consent from, authorization or order of, or make any filing or registration with, any court, governmental agency or any regulatory or self-regulatory agency or any other Person in order for it to execute, deliver or perform any of its respective obligations under or contemplated by the Exchange Documents, in each case, in accordance with the terms hereof or thereof. All consents, authorizations, orders, filings and registrations which the Company or any Subsidiary is required to obtain pursuant to the preceding sentence have been obtained or effected on or prior to the date of this Agreement, and neither the Company nor any of its Subsidiaries is aware of any facts or circumstances which might prevent the Company or any of its Subsidiaries from obtaining or effecting any of the registration, application or filings contemplated by the Exchange Documents. The Company is not in violation of the requirements of the Principal Market and has no knowledge of any facts or circumstances which could reasonably lead to delisting or suspension of the Common Stock in the foreseeable future.

e.            Securities Law Exemptions . Assuming the accuracy of the representations and warranties of the Holder contained herein, the offer and issuance by the Company of the Securities is exempt from registration under the Securities Act. The offer and issuance of the Securities is exempt from registration under the Securities Act pursuant to the exemption provided by Section 3(a)(9) thereof. The Company covenants and represents to the Holder that neither the Company nor any of its Subsidiaries has received, anticipates receiving, has any agreement to receive or has been given any promise to receive any consideration from the Holder or any other Person in connection with the transactions contemplated by the Exchange Documents.

f.            Issuance of Securities . The issuance of the Shares are duly authorized and upon issuance in accordance with the terms of the Exchange Documents shall be validly issued, fully paid and non-assessable and free from all taxes, liens, charges and other encumbrances with respect to the issue thereof.

g.            Transfer Taxes . As of the date of this Agreement, all share transfer or other taxes (other than income or similar taxes) which are required to be paid in connection with the issuance of the Shares to be exchanged with the Holder hereunder will be, or will have been, fully paid or provided for by the Company, and all laws imposing such taxes will be or will have been complied with.

h.            Equity Capitalization . Except as disclosed in the Company’s filings with the Commission: (i) none of the Company’s or any Subsidiary’s capital stock is subject to preemptive rights or any other similar rights or any liens or encumbrances suffered or permitted by the Company or any Subsidiary; (ii) there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any capital stock of the Company or any of its Subsidiaries, or contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to issue additional capital stock of the Company or any of its Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any capital stock of the Company or any of its Subsidiaries; (iii) there are no outstanding debt securities, notes, credit agreements, credit facilities or other agreements, documents or instruments evidencing indebtedness of the Company or any of its Subsidiaries or by which the Company or any of its Subsidiaries is or may become bound; (iv) there are no financing statements securing obligations in any amounts filed in connection with the Company or any of its Subsidiaries; (v) there are no agreements or arrangements under which the Company or any of its Subsidiaries is obligated to register the sale of any of their securities under the Securities Act; (vi) there are no outstanding securities or instruments of the Company or any of its Subsidiaries which contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to redeem a security of the Company or any of its Subsidiaries; (vii) there are no securities or instruments containing anti-dilution or similar provisions that will be triggered by the issuance of the Securities; (viii) neither the Company nor any Subsidiary has any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement; and (ix) neither the Company nor any of its Subsidiaries have any liabilities or obligations required to be disclosed in the in the Company’s filings with the Commission (the “SEC Documents”) which are not so disclosed in the SEC Documents, other than those incurred in the ordinary course of the Company’s or its Subsidiaries’ respective businesses and which, individually or in the aggregate, do not or could not have a Material Adverse Effect. The Company has furnished to the Holder true, correct and complete copies of the Company’s Articles of Incorporation, as amended and as in effect on the date hereof (the “Articles of Incorporation”), and the Company’s bylaws, as amended and as in effect on the date hereof (the “Bylaws”), and the terms of all securities convertible into, or exercisable or exchangeable for, shares of Common Stock and the material rights of the holders thereof in respect thereto that have not been disclosed in the SEC Documents.

(i)            Shell Company Status . The Company is not and has never been an issuer identified in Rule 144(i)(1) of the Securities Act. The Company is, and has been for a period of at least 90 days, subject to the reporting requirements of Section 13 or Section 15(d) of the Exchange Act.

6.            Additional Acknowledgments . The Holder and the Company confirm that the Company has not received any consideration for the transactions contemplated by this Agreement. Pursuant to Rule 144 promulgated by the Commission pursuant to the Securities Act and the rules and regulations promulgated thereunder as such Rule 144 may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule 144, the holding period of the Shares tacks back to April 16, 2014, the Note Purchase Date, the original issue date of the Note. The Company agrees not to take a position contrary to this paragraph.

7.            Release by the Holder; Termination of Transaction Documents .

a.           In consideration of the foregoing, Holder releases and discharges Company, Company’s officers, directors, principals, control persons, past and present employees, insurers, successors, and assigns (“Company Parties”) from all actions, cause of action, suits, debts, dues, sums of money, accounts, reckonings, bonds, bills, specialties, covenants, contracts, controversies, agreements, promises, variances, trespasses, damages, judgments, extents, executions, claims, and demands whatsoever, in law, admiralty or equity, which against Company Parties ever had, now have or hereafter can, shall or may, have for, upon, or by reason of any matter, cause or thing whatsoever, whether or not known or unknown, arising under the Exchange Securities and/or the Transaction Documents, including without limitation, the Certificate of Designation and any payments arising from Section 3 therein. It being understood that this Section shall be limited in all respects to only matters arising under or related to the Exchange Securities and the Transaction Documents and shall under no circumstances constitute a release, waiver or discharge with respect to the Securities or any Exchange Documents or limit the Holder from taking action for matters with respect to the Securities, any Exchange Document or events that may arise in the future.

b .           As further consideration of the foregoing, Holder and the Company hereby acknowledge and agree that the Transaction Documents, and all rights, covenants, agreements and obligations contained therein (including Section 3 of the Certificate of Designation), is hereby terminated and of no further force or effect. The Holder and the Company hereby agree and confirm that the Holder’s agreement to terminate the Company’s obligations under the Transaction Documents shall constitute an agreement to terminate Section 3 of the Certificate of Designation.

(a)            Lock-Up . (i) During the 180 day period following the date of the Closing (the “Lock-Up Period”), the Holder shall not (i) sell, transfer, assign, offer, pledge, contract to sell, transfer or assign, sell any option or contract to purchase, purchase any option or contract to sell, transfer or assign, grant any option, right or warrant to purchase, or otherwise transfer, assign or dispose of, directly or indirectly, any of the Shares (collectively, the “Lock-Up Securities”), or (ii) enter into any swap or other arrangement that transfers or assigns to another person or entity, in whole or in part, any of the economic benefits, obligations or other consequences of any nature of ownership of any Lock-Up Securities, whether any such transaction is to be settled by delivery of the Lock-Up Securities, in cash or otherwise (the “Lock-Up”). The foregoing Lock-Up restrictions may only be released or waived prior to the termination of the Lock-Up Period with the written consent of the Company and Dougherty Capital Markets LLC (“Dougherty”). Notwithstanding anything to the contrary herein, the Lock-Up restrictions set forth in this Section 8(a) shall only apply to the Shares and not with respect to any other securities of the Company held by the Holder. Dougherty is an intended third-party beneficiary of this provision. The following restrictive “Lock-Up” legend shall be affixed to the Lock-Up Securities which shall be governed the terms of this Lock-Up provision:

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFER PURSUANT TO THE LOCK UP PROVISIONS CONTAINED IN THE EXCHANGE AGREEMENT, DATED AS OF __, 2015 BY AND BETWEEN THE COMPANY AND THE HOLDER, A COPY OF WHICH MAY BE INSPECTED AT THE COMPANY’S PRINCIPAL OFFICE”.

(ii)            Permitted Transfers . Notwithstanding the foregoing, the Holder (and any transferee of the Holder) may transfer any Lock-Up Securities: (i) as a bona fide gift or gifts, provided that prior to such transfer the donee or donees thereof agree in writing to be bound by the restrictions set forth herein, (ii) to any trust, partnership, corporation or other entity formed for the direct or indirect benefit of the Holder or the immediate family of the Holder, provided that prior to such transfer a duly authorized officer, representative or trustee of such transferee agrees in writing to be bound by the restrictions set forth herein, and provided further that any such transfer shall not involve a disposition for value, (iii) to non-profit organizations qualified as charitable organizations under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, or (iv) if such transfer occurs by operation of law, such as rules of descent and distribution, statutes governing the effects of a merger or a qualified domestic order, provided that prior to such transfer the transferee executes an agreement stating that the transferee is receiving and holding Lock-Up Securities subject to the provisions of this lockup. For purposes hereof, “immediate family” shall mean any relationship by blood, marriage or adoption, not more remote than first cousin. In addition, the foregoing shall not prohibit privately negotiated transactions, provided the transferees agree, in writing, to be bound to the terms of this lockup for the balance of the Lock-Up Period.

b.            Successors and Assigns . This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns.

c.            Governing Law; Jurisdiction; Waiver of Jury Trial . This Agreement shall be governed by and construed under the laws of the State of New York without regard to the choice of law principles thereof. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the State of New York located in The City of New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or therewith or with any transaction contemplated hereby or thereby, and hereby irrevocably waives any objection that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

d.            Severability . If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction.

e.            Counterparts/Execution . This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party. In the event that any signature is delivered by facsimile transmission or by an e-mail which contains an electronic file of an executed signature page, such signature page shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or electronic file signature page (as the case may be) were an original thereof.

f.            Notices . Any notice or communication permitted or required hereunder shall be in writing and shall be deemed sufficiently given if hand-delivered or sent (i) postage prepaid by registered mail, return receipt requested, or (ii) by facsimile, to the respective parties as set forth below, or to such other address as either party may notify the other in writing.

If to Holder, to the address set forth on the signature page of the Holder

g.            Expenses . The parties hereto shall pay their own costs and expenses in connection herewith.

h.            Entire Agreement; Amendments . This Agreement constitutes the entire agreement between the parties with regard to the subject matter hereof and thereof, superseding all prior agreements or understandings, whether written or oral, between or among the parties. This Agreement may be amended, modified, superseded, cancelled, renewed or extended, and the terms and conditions hereof may be waived, only by a written instrument signed by all parties, or, in the case of a waiver, by the party waiving compliance. Except as expressly stated herein, no delay on the part of any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any party of any right, power or privilege hereunder preclude any other or future exercise of any other right, power or privilege hereunder.

i.            Headings . The headings used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

j.            Reporting Status . Until the date on which none of the Securities are outstanding, the Company shall timely file all reports required to be filed with the Commission pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the Company shall continue to timely file reports under the Exchange Act even if the Exchange Act or the rules and regulations thereunder would otherwise no longer require or permit such filings.

k.            Listing . The Company shall use reasonable best efforts to promptly secure the listing or designation for quotation (as the case may be) of all of the Shares upon each national securities exchange and automated quotation system, if any, upon which the Common Stock is then listed or designated for quotation (as the case may be) (subject to official notice of issuance) (but in no event later than the date of this Agreement) and shall use reasonable best efforts to maintain such listing or designation for quotation (as the case may be) of all Shares from time to time issuable under the terms of this Agreement on such national securities exchange or automated quotation system. The Company shall maintain the Common Stock’s listing or authorization for quotation (as the case may be) on the Principal Market, The New York Stock Exchange, the NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market or the Nasdaq Global Select Market, the Over-the-Counter Bulletin Board or the OTCQX (each, an “Eligible Market”). Neither the Company nor any of its Subsidiaries shall take any action which could be reasonably expected to result in the delisting or suspension of the Common Stock on an Eligible Market. The Company shall pay all fees and expenses in connection with satisfying its obligations under this Section 8(l).

l.            Pledge of Securities . The Company acknowledges and agrees that the Securities may be pledged by the Holder in connection with a bona fide margin agreement or other loan or financing arrangement that is secured by the Securities. The pledge of Securities shall not be deemed to be a transfer, sale or assignment of the Securities hereunder, and if the Holder effects a pledge of Securities it shall not be required to provide the Company with any notice thereof or otherwise make any delivery to the Company pursuant to this Agreement. The Company hereby agrees to execute and deliver such documentation as a pledgee of the Securities may reasonably request in connection with a pledge of the Securities to such pledgee by the Holder.

(Signature Pages Follow)

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

DRONE AVIATION HOLDING CORPORATION

HOLDER: [_________]

Address for Notices:

Address for delivery of Securities: