<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><B>Exhibit 10.1</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><B> </B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">SECURITIES PURCHASE AGREEMENT</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>SECURITIES PURCHASE
AGREEMENT</B> (the "<B>Agreement</B>"), dated as of May 1, 2015, by and among Ener-Core, Inc., a Nevada corporation,
with headquarters located at 9400 Toledo Way, Irvine, California 92618 (the "<B>Company</B>"), and the investors identified
in their respective “Buyer Signature Page” attached hereto (individually, a "<B>Buyer</B>" and collectively,
the "<B>Buyers</B>").</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>WHEREAS</B>:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">A.          The Company and each
Buyer is executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by Section
4(a)(2) of the Securities Act of 1933, as amended (the "<B>1933 Act</B>"), and Rule 506(b) of Regulation D ("<B>Regulation D</B>")
as promulgated by the United States Securities and Exchange Commission (the "<B>SEC</B>") under the 1933 Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">B.          Each Buyer wishes to
purchase, and the Company wishes to sell, upon the terms and conditions stated in this Agreement, that aggregate number of shares
of the Company’s Common Stock, par value $0.0001<FONT STYLE="font-size: 10pt"> </FONT>per share (the "<B>Common Stock</B>"),
as set forth in each Buyer’s respective “Buyer Signature Page” hereto (which aggregate amount for all Buyers
together shall be 5,400,000 shares of Common Stock and shall collectively be referred to herein as the "<B>Common Shares</B>"
or the "<B>Securities</B>").</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">C.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">          </FONT>Contemporaneously with the execution and delivery of this Agreement, the parties hereto are executing and delivering a Registration
Rights Agreement, substantially in the form attached hereto as <U>Exhibit A</U> (the "<B>Registration Rights Agreement</B>"),
pursuant to which the Company has agreed to provide certain registration rights with respect to the Registrable Securities (as
defined in the Registration Rights Agreement) under the 1933 Act and the rules and regulations promulgated thereunder, and applicable
state securities laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>NOW, THEREFORE</B>,
the Company and each Buyer hereby agree as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">1.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">           
</FONT>	<U>PURCHASE AND SALE OF COMMON SHARES</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(a)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">   
</FONT>	<U>Purchase of Common Shares</U>. Subject to the satisfaction (or waiver) of the conditions set forth in <U>Sections
6</U> and <U>7</U> below, the Company shall issue and sell to each Buyer, and each Buyer severally, but not jointly, agrees to
purchase from the Company on the Closing Date (as defined below), the number of Common Shares set forth in each Buyer’s “Buyer
Signature Page” attached hereto (the "<B>Closing</B>").</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(b)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>Closing</U>. The date and time of the Closing (the "<B>Closing Date</B>") shall be 10:00 a.m., New York
City time, on the date hereof (or such other date and time as is mutually agreed to by the Company and each Buyer) after notification
of satisfaction (or waiver) of the conditions to the Closing set forth in <U>Sections 6</U> and <U>7</U> below, at the offices
of LKP Global Law, LLP, 1901 Avenue of the Stars, Suite 480, Los Angeles, California 90067.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(c)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">   
</FONT>	<U>Purchase Price</U>. The purchase price per Common Share (“<B>Per Share Purchase Price</B>”) and the aggregate
purchase price for the Common Shares to be purchased by each Buyer at the Closing (the "<B>Aggregate Purchase Price</B>")
shall be the amounts set forth in such Buyer’s “Buyer Signature Page” attached hereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(d)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>Form of Payment</U>. On the Closing Date, (i) each Buyer shall pay its Aggregate Purchase Price to the Company for
the Common Shares to be issued and sold to such Buyer at the Closing, by wire transfer of immediately available funds in accordance
with the Company's written wire instructions and (ii) the Company shall deliver to each Buyer one or more stock certificates,
evidencing the number of Common Shares such Buyer is purchasing as is set forth in such Buyer’s “Buyer Signature Page”
hereto, which certificate shall be duly executed on behalf of the Company and registered in the name of such Buyer or its designee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">2.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">           </FONT>	<U>BUYER'S
REPRESENTATIONS AND WARRANTIES</U>. Each Buyer, severally and not jointly, represents and warrants with respect to only itself
that<FONT STYLE="text-transform: uppercase">:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(a)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>No Public Sale or Distribution</U>. Such Buyer is acquiring the Common Shares for its own account and not with a
view towards, or for resale in connection with, the public sale or distribution thereof, except pursuant to sales registered or
exempted under the 1933 Act; <U>provided</U>, <U>however</U>, that by making the representations herein, such Buyer does not agree
to hold any of the Securities for any minimum or other 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 under the 1933 Act. Such Buyer is acquiring the
Securities hereunder in the ordinary course of its business. Such Buyer does not presently have any agreement or understanding,
directly or indirectly, with any Person (as defined below) to distribute any of the Securities. For purposes of this Agreement,
"<B>Person</B>" means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust,
an unincorporated organization and a government or any department or agency thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(b)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>Accredited Investor Status</U>. Such Buyer is an "accredited investor" as that term is defined in Rule
501(a) of Regulation D.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(c)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>Reliance on Exemptions</U>. Such Buyer understands that the Securities are being offered and sold to it in reliance
on specific exemptions from the registration requirements of United States federal and state securities laws and that the Company
is relying in part upon the truth and accuracy of, and such Buyer's compliance with, the representations, warranties, agreements,
acknowledgments and understandings of such Buyer set forth herein in order to determine the availability of such exemptions and
the eligibility of such Buyer to acquire the Securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(d)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>Information</U>. Such Buyer and its advisors, if any, have been furnished with all materials relating to the business,
finances and operations of the Company and materials relating to the offer and sale of the Securities that have been requested
by such Buyer. Such Buyer and its advisors, if any, have been afforded the opportunity to ask questions of the Company. Neither
such inquiries nor any other due diligence investigations conducted by such Buyer or its advisors, if any, or its representatives
shall modify, amend or affect such Buyer's right to rely on the Company's representations and warranties contained herein. Such
Buyer understands that its investment in the Securities involves a high degree of risk. Such Buyer has sought such accounting,
legal and tax advice as it has considered necessary to make an informed investment decision with respect to its acquisition of
the Securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(e)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>No Governmental Review</U>. Such Buyer understands that no United States federal or state agency or any other government
or governmental agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability
of the investment in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(f)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>Transfer or Resale</U>. Such Buyer understands that except as provided in the Registration Rights Agreement: (i)
the Securities have not been and are not being registered under the 1933 Act or any state securities laws, and may not be offered
for sale, sold, assigned or transferred unless (A) subsequently registered thereunder, (B) such Buyer shall have delivered to the
Company an opinion of counsel, in a generally acceptable form, 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) such Buyer 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 1933 Act, as amended, (or a successor rule thereto) (collectively, "<B>Rule 144</B>"); (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 1933 Act) may require compliance with some other exemption under the 1933
Act or the rules and regulations of the SEC thereunder; and (iii) neither the Company nor any other Person is under any obligation
to register the Securities under the 1933 Act or any state securities laws or to comply with the terms and conditions of any exemption
thereunder. 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 and such pledge of Securities shall not be deemed to be a transfer, sale
or assignment of the Securities hereunder, and no Buyer effecting a pledge of Securities shall be required to provide the Company
with any notice thereof or otherwise make any delivery to the Company pursuant to this Agreement or any other Transaction Document
(as defined in <U>Section 3(b)</U>), including, without limitation, this <U>Section 2(f)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(g)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>Legends</U>. Such Buyer understands that the certificates or other instruments representing the Common Shares and,
until such time as the resale of the Common Shares have been registered under the 1933 Act as contemplated by the Registration
Rights Agreement, the stock certificates representing the Common Shares, except as set forth below, 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):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 1in; text-align: justify">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, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION
IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 1in 0 0; text-align: justify"> </P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">The legend set forth
above shall be removed and the Company shall issue a certificate without such legend to the holder of the Securities upon which
it is stamped or issue to such holder by electronic delivery at the applicable balance account at The Depository Trust Company
("<B>DTC</B>"), if, unless otherwise required by state securities laws, (i) such Securities are registered for resale
under the 1933 Act, (ii) in connection with a sale, assignment or other transfer, such holder provides the Company with an opinion
of counsel, 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 1933 Act, or (iii) the Securities can be sold, assigned or transferred
pursuant to Rule 144 or Rule 144A. The Company shall be responsible for the fees of its transfer agent and all DTC fees associated
with such issuance. If the Company shall fail for any reason or for no reason to issue to the holder of the Securities within three
(3) Trading Days after the occurrence of any of (i) through (iii) above, a certificate without such legend to the holder or to
issue such Securities to such holder by electronic delivery at the applicable balance account at DTC, and if on or after such Trading
Day the holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale
by the holder of such Securities that the holder anticipated receiving without legend from the Company (a "<B>Buy-In</B>"),
then the Company shall, within three (3) Business Days after the holder's request and in the holder's discretion, either (i) pay
cash to the holder in an amount equal to the holder's total purchase price (including brokerage commissions, if any) for the shares
of Common Stock so purchased (the "<B>Buy-In Price</B>"), at which point the Company's obligation to deliver such unlegended
Securities shall terminate, or (ii) promptly honor its obligation to deliver to the holder such unlegended Securities as provided
above and pay cash to the holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number
of shares of Common Stock, times (B) the Closing Bid Price on the date of the occurrence of any of clauses (i) through (iii), as
applicable. As used herein, (i) "<B>Trading Day</B>" means any day on which the Common Stock is traded on the Principal
Market (as defined in <U>Section 3(d)</U>), or, if the Principal Market is not the principal trading market for the Common Stock,
then on the principal securities exchange or securities market on which the Common Stock is then traded; <U>provided</U> that "Trading
Day" shall not include any day on which the Common Stock is scheduled to trade on such exchange or market for less than 4.5
hours or any day that the Common Stock is suspended from trading during the final hour of trading on such exchange or market (or
if such exchange or market does not designate in advance the closing time of trading on such exchange or market, then during the
hour ending at 4:00:00 p.m., New York time); (ii) "<B>Closing Bid Price</B>" means, for any security as of any date,
the last closing bid price for such security on the Principal Market, as reported by Bloomberg, or, if the Principal Market begins
to operate on an extended hours basis and does not designate the closing bid price, then the last bid price of such security prior
to 4:00:00 p.m., New York time, as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange
or trading market for such security, the last closing bid price of such security on the principal securities exchange or trading
market where such security is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last closing bid
price of such security in the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg,
or, if no closing bid price is reported for such security by Bloomberg, the average of the bid prices of any market makers for
such security as reported in the OTC Link or "pink sheets" by OTC Markets Group Inc. (formerly Pink OTC Markets Inc.).
If the Closing Bid Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Bid
Price of such security on such date shall be the fair market value as mutually determined by the Company and such holder of Securities.
All such determinations to be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction
during the applicable calculation period; and (iii) "<B>Bloomberg</B>" means Bloomberg Financial Markets.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(h)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>Validity; Enforcement</U>. This Agreement and the Registration Rights Agreement have been duly and validly authorized,
executed and delivered on behalf of such Buyer and shall constitute the legal, valid and binding obligations of such Buyer enforceable
against such Buyer in accordance with their respective terms, except as such enforceability may be limited by general principles
of equity or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to,
or affecting generally, the enforcement of applicable creditors' rights and remedies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(i)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>No Conflicts</U>. The execution, delivery and performance by such Buyer of this Agreement and the Registration Rights
Agreement and the consummation by such Buyer of the transactions contemplated hereby and thereby will not (i) result in a violation
of the organizational documents of such Buyer or (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 such Buyer is a party, or (iii) result in a violation of any law, rule, regulation,
order, judgment or decree (including federal and state securities laws) applicable to such Buyer, except in the case of clauses
(ii) and (iii) above, for such conflicts, defaults, rights or violations which would not, individually or in the aggregate, reasonably
be expected to have a material adverse effect on the ability of such Buyer to perform its obligations hereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">3.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">           	<U>REPRESENTATIONS
AND WARRANTIES OF THE COMPANY</U>.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">The Company represents
and warrants to each of the Buyers that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(a)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>Organization and Qualification</U>. Each of the Company and its "<B>Subsidiaries</B>" (which for purposes
of this Agreement means any entity in which the Company, directly or indirectly, owns any of the capital stock or holds an equity
or similar interest) are entities duly organized and validly existing 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. Each of the Company and 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 reasonably be expected to
have a Material Adverse Effect. As used in this Agreement, "<B>Material Adverse Effect</B>" means any material adverse
effect on the business, properties, assets, operations, results of operations, condition (financial or otherwise) or prospects
of the Company and its Subsidiaries, individually or taken as a whole, or on the transactions contemplated hereby or on the other
Transaction Documents or by the agreements and instruments to be entered into in connection herewith or therewith, or on the authority
or ability of the Company to perform its obligations under the Transaction Documents. The Company has no Subsidiaries except as
set forth on <U>Schedule 3(a)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(b)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>Authorization; Enforcement; Validity</U>. The Company has the requisite power and authority to enter into and perform
its obligations under this Agreement, the Registration Rights Agreement, the Irrevocable Transfer Agent Instructions (as defined
in <U>Section 5</U>) and each of the other agreements entered into by the parties hereto in connection with the transactions contemplated
by this Agreement (collectively, the "<B>Transaction Documents</B>") and to issue the Securities in accordance with the
terms hereof and thereof. The execution and delivery of the Transaction Documents by the Company and the consummation by the Company
of the transactions contemplated hereby and thereby, including, without limitation, the reservation for issuance and the issuance
of the Common Shares have been duly authorized by the Company's Board of Directors and (other than the filing with the SEC of one
or more Registration Statements (as defined in the Registration Rights Agreement) in accordance with the requirements of the Registration
Rights Agreement and (other filings as may be required by state securities agencies) no further filing, consent, or authorization
is required by the Company, its Board of Directors or its shareholders. This Agreement and the other Transaction Documents have
been duly executed and delivered by the Company, and constitute the legal, valid and binding obligations of the Company, enforceable
against the Company in accordance with their respective terms, except as such enforceability may be limited by general principles
of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting
generally, the enforcement of applicable creditors' rights and remedies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(c)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  </FONT>	<U>Issuance
of Securities</U>. The issuance of the Common Shares are duly authorized and, upon issuance, shall be validly issued and free
from all from all preemptive or similar rights, taxes, liens and charges with respect to the issue thereof, with the holders being
entitled to all rights accorded to a holder of Common Stock. As of the date hereof, there are 82,206,245 shares of Common Stock
authorized and unissued. Assuming the accuracy of each of the representations and warranties set forth in <U>Section 2</U> of
this Agreement, the offer and issuance by the Company of the Securities is exempt from registration under the 1933 Act.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(d)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>No Conflicts</U>. The execution, delivery and performance of the Transaction Documents by the Company and the consummation
by the Company of the transactions contemplated hereby and thereby (including, without limitation, the reservation for issuance
and issuance of the Common Shares) will not (i) result in a violation of the Articles of Incorporation (as defined in <U>Section
(3(r)</U>) or Bylaws (as defined in <U>Section (3(r)</U>), any memorandum of association, certificate of incorporation, certificate
of formation, bylaws, any certificate of designations or other constituent documents of the Company or any of its Subsidiaries,
any capital stock of the Company or any of its Subsidiaries or the articles of association or bylaws of the Company or any of its
Subsidiaries or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become
a default) in any respect under, or give to others any rights of termination, amendment, acceleration or cancellation of, any material
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 other foreign, federal and state securities laws and regulations
and the rules and regulations of the OTC QB (the "<B>Principal Market</B>") and including all applicable laws of the
State of Nevada and any foreign, federal and state laws, rules and regulations) 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.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(e)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">   
</FONT>	<U>Consents</U>. Neither the Company nor any of its Subsidiaries is required to obtain any consent, 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 obligations under or contemplated by the Transaction
Documents, in each case in accordance with the terms hereof or thereof. All consents, authorizations, orders, filings and registrations
which the Company or any of its Subsidiaries is required to obtain pursuant to the preceding sentence have been obtained or effected
on or prior to the Closing Date, and the Company and its Subsidiaries are unaware of any facts or circumstances that might prevent
the Company or any of its Subsidiaries from obtaining or effecting any of the registration, application or filings pursuant to
the preceding sentence. The Company is not in violation of the listing requirements of the Principal Market and has no knowledge
of any facts that would reasonably lead to delisting or suspension of the Common Stock in the foreseeable future. The issuance
by the Company of the Securities shall not have the effect of delisting or suspending the Common Stock from the Principal Market.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(f)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">   
</FONT>	<U>Acknowledgment Regarding Buyer's Purchase of Securities</U>. The Company acknowledges and agrees that each Buyer
is acting solely in the capacity of an arm's length purchaser with respect to the Transaction Documents and the transactions contemplated
hereby and thereby and that no Buyer is (i) an officer or director of the Company or any of its Subsidiaries, (ii) an "affiliate"
of the Company or any of its Subsidiaries (as defined in Rule 144) or (iii) to the knowledge of the Company, a "beneficial
owner" of more than 10% of the shares of Common Stock (as defined for purposes of Rule 13d-3 of the Securities Exchange Act
of 1934, as amended (the "<B>1934 Act</B>")). The Company further acknowledges that no Buyer is acting as a financial
advisor or fiduciary of the Company or any of its Subsidiaries (or in any similar capacity) with respect to the Transaction Documents
and the transactions contemplated hereby and thereby, and any advice given by a Buyer or any of its representatives or agents in
connection with the Transaction Documents and the transactions contemplated hereby and thereby is merely incidental to such Buyer's
purchase of the Securities. The Company further represents to each Buyer that the Company's decision to enter into the Transaction
Documents has been based solely on the independent evaluation by the Company and its representatives.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(g)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>No General Solicitation; Placement Agent's Fees</U>. Neither the Company, nor any of its Subsidiaries or 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) in connection with the offer or sale of the Securities. The Company shall be responsible for the payment
of any placement agent's fees, financial advisory fees, or brokers' commissions (other than for persons engaged by any Buyer or
its investment advisor) relating to or arising out of the transactions contemplated hereby, including, without limitation, placement
agent fees payable to Drexel Hamilton, LLC, as placement agent (the "<B>Placement Agent</B>") in connection with the
sale of the Securities. The Company shall pay, and hold each Buyer harmless against, any liability, loss or expense (including,
without limitation, attorney's fees and out-of-pocket expenses) arising in connection with any such claim. The Company acknowledges
that it has engaged the Placement Agent in connection with the sale of the Securities. Other than the Placement Agent, neither
the Company nor any of its Subsidiaries has engaged any placement agent or other agent in connection with the sale of the Securities.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(h)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>No Integrated Offering</U>. None of the Company, its Subsidiaries, any of their affiliates, and any Person acting
on 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 of any of the Securities under the 1933 Act, whether through integration with
prior offerings or otherwise, or cause this offering of the Securities to require approval of shareholders of the Company for purposes
of the 1933 Act or any applicable shareholder approval provisions, including, without limitation, under the rules and regulations
of any exchange or automated quotation system on which any of the securities of the Company are listed or designated. None of the
Company, its Subsidiaries, their affiliates and any Person acting on their behalf will take any action or steps referred to in
the preceding sentence that would require registration of any of the Securities under the 1933 Act or cause the offering of the
Securities to be integrated with other offerings for purposes of any such applicable shareholder approval provisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(i)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	[Intentionally omitted]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(j)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  </FONT>	<U>Application of Takeover Protections; Rights Agreement</U>. 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 Buyer as a result of the transactions contemplated
by this Agreement, including, without limitation, the Company's issuance of the Securities and any Buyer'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.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(k)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>SEC Documents; Financial Statements</U>. Except as disclosed in <U>Schedule 3(k)</U>, during the two (2) years prior
to the date hereof, the Company has timely filed all reports, schedules, forms, statements and other documents required to be filed
by it with the SEC pursuant to the reporting requirements of the 1934 Act (all of the foregoing filed prior to the date hereof,
and all exhibits included therein and financial statements, notes and schedules thereto and documents incorporated by reference
therein being hereinafter referred to as the "<B>SEC Documents</B>"). The Company has delivered to the Buyers or their
respective representatives true, correct and complete copies of the SEC Documents not available on the EDGAR system. As of their
respective filing dates, the SEC Documents complied in all material respects with the requirements of the 1934 Act and the rules
and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they
were filed with the SEC, contained any untrue statement of a material fact or omitted to state a material fact required to be stated
therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not
misleading. As of their respective filing dates, the financial statements of the Company included in the SEC Documents complied
as to form in all material respects with applicable accounting requirements and the published rules and regulations of the SEC
with respect thereto. Such financial statements have been prepared in accordance with generally accepted accounting principles,
consistently applied, during the periods involved ("<B>GAAP</B>") (except (i) as may be otherwise indicated in such financial
statements or the notes thereto, or (ii) in the case of unaudited interim statements, to the extent they may exclude footnotes
or may be condensed or summary statements) and fairly present in all material respects the financial position of the Company as
of the dates thereof and the results of its operations and cash flows for the periods then ended (subject, in the case of unaudited
statements, to normal year-end audit adjustments). No other information provided by or on behalf of the Company to the Buyers which
is not included in the SEC Documents, including, without limitation, information referred to in Section 2(d) of this Agreement
or in the disclosure schedules to this Agreement, contains any untrue statement of a material fact or omits to state any material
fact necessary in order to make the statements therein, in the light of the circumstance under which they are or were made, not
misleading.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(l)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>Absence of Certain Changes</U>. Except as disclosed in <U>Schedule 3(l)</U> or as set forth in the SEC Documents,
since December 31, 2014, there has been no material adverse change and no material adverse development in the business, assets,
properties, operations, condition (financial or otherwise), results of operations or prospects of the Company or its Subsidiaries.
Except as disclosed in <U>Schedule 3(l)</U>, since December 31, 2014, neither the Company nor any of its Subsidiaries has (i) declared
or paid any dividends, (ii) sold any assets, individually or in the aggregate, in excess of $100,000 outside of the ordinary course
of business or (iii) had capital expenditures, individually or in the aggregate, in excess of $100,000. Neither the Company nor
any of its Subsidiaries has taken any steps to seek protection pursuant to any bankruptcy law nor does the Company have any knowledge
or reason to believe that its creditors intend to initiate involuntary bankruptcy proceedings or any actual knowledge of any fact
that would reasonably lead a creditor to do so. The Company and its Subsidiaries, individually and on a consolidated basis, are
not as of the date hereof, and after giving effect to the transactions contemplated hereby to occur at the Closing, will not be
Insolvent (as defined below). For purposes of this <U>Section 3(l)</U>, "<B>Insolvent</B>" means, with respect to any
Person, (i) the present fair saleable value of such Person's assets is less than the amount required to pay such Person's total
Indebtedness (as defined in <U>Section 3(s)</U>), (ii) such Person is unable to pay its debts and liabilities, subordinated, contingent
or otherwise, as such debts and liabilities become absolute and matured, (iii) such Person intends to incur or believes that it
will incur debts that would be beyond its ability to pay as such debts mature or (iv) such Person has unreasonably small capital
with which to conduct the business in which it is engaged as such business is now conducted and is proposed to be conducted.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(m)  <FONT STYLE="font: 10pt Times New Roman, Times, Serif">
</FONT>	<U>No Undisclosed Events, Liabilities, Developments or Circumstances</U>. No event, liability, development or circumstance
has occurred or exists, or is contemplated to occur with respect to the Company, its Subsidiaries or their respective business,
properties, prospects, operations or financial condition, that would be required to be disclosed by the Company under applicable
securities laws on a registration statement on Form S-1 filed with the SEC relating to an issuance and sale by the Company of its
Common Stock and which has not been publicly announced.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(n)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>Conduct of Business; Regulatory Permits</U>. Neither the Company nor any of its Subsidiaries is in violation of any
term of or in default under any certificate of designations of any outstanding series of preferred stock of the Company (if any),
its Articles of Incorporation or Bylaws or their organizational charter or memorandum of association or certificate of incorporation
or articles of association or bylaws, respectively. Neither the Company nor any of its Subsidiaries is in violation of any judgment,
decree or order or any statute, ordinance, rule or regulation applicable to the Company or any of its Subsidiaries, and neither
the Company nor any of its Subsidiaries will conduct its business in violation of any of the foregoing, except for possible violations
which could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Without limiting the
generality of the foregoing, the Company is not in violation of any of the rules, regulations or requirements of the Principal
Market and has no knowledge of any facts or circumstances that would reasonably lead to delisting or suspension of the Common Stock
by the Principal Market in the foreseeable future. Except as set forth in <U>Schedule 3(n)</U>, during the two (2) years prior
to the date hereof, the Common Stock has been designated for quotation on the Principal Market. Except as set forth in <U>Schedule
3(n)</U>, during the two (2) years prior to the date hereof, (i) trading in the Common Stock has not been suspended by the SEC
or the Principal Market and (ii) the Company has received no communication, written or oral, from the SEC or the Principal Market
regarding the suspension or delisting of the Common Stock from the Principal Market. The Company and its Subsidiaries possess all
certificates, authorizations and permits issued by the appropriate federal, state or foreign regulatory authorities necessary to
conduct their respective businesses, except where the failure to possess such certificates, authorizations or permits would not
have, individually or in the aggregate, a Material Adverse Effect, and neither the Company nor any such Subsidiary has received
any notice of proceedings relating to the revocation or modification of any such certificate, authorization or permit.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(o)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>Foreign Corrupt Practices</U>. 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 or any of its Subsidiaries (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, as amended; or (iv) made any unlawful bribe, rebate, payoff, influence payment, kickback or other
unlawful payment to any foreign or domestic government official or employee.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(p)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>Sarbanes-Oxley Act</U>. The Company is in compliance with any and all applicable requirements of the Sarbanes-Oxley
Act of 2002, as amended, 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.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(q)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT> 	<U>Transactions With Affiliates</U>. Except as set forth on <U>Schedule 3(q)</U>, none of the officers, directors or
employees of the Company or any of its Subsidiaries is presently a party to any transaction with the Company or any of its Subsidiaries
(other than for ordinary course services as employees, officers or directors), including any contract, agreement or other arrangement
providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring
payments to or from any such officer, director or employee or, to the knowledge of the Company or any of its Subsidiaries, any
corporation, partnership, trust or other entity in which any such officer, director, or employee has a substantial interest or
is an officer, director, trustee or partner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(r)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  </FONT>	<U>Equity Capitalization</U>. As of the date hereof, the authorized capital stock of the Company consists of (i) 200,000,000
shares of Common Stock, of which as of the date hereof, 117,793,755 shares are issued and outstanding, 21,000,000 shares are reserved
for issuance pursuant to the Company's stock option and purchase plans and 12,500,186 shares are reserved for issuance pursuant
to securities (other than the aforementioned options) exercisable or exchangeable for, or convertible into, Common Stock, (ii)
50,000,000 shares of preferred stock, par value $0.0001 per share, none of which are issued and outstanding as of the date hereof
and (iii) there are 78,447,173 shares of Common Stock held by non-affiliates of the Company. All of such outstanding shares have
been, or upon issuance will be, validly issued and are fully paid and nonassessable. Except as disclosed in (i) <U>Schedule 3(r)(i)</U>,
none of the Company's capital stock is subject to preemptive rights or any other similar rights or any liens or encumbrances suffered
or permitted by the Company; (ii) <U>Schedule 3(r)(ii)</U>, 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 shares of capital stock of the Company or any of its Subsidiaries, or contracts, commitments, understandings or arrangements
by which the Company or any of its Subsidiaries is or may become bound to issue additional shares of capital stock of the Company
or any of its Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever
relating to, or securities or rights convertible into, or exercisable or exchangeable for, any shares of capital stock of the Company
or any of its Subsidiaries; (iii) <U>Schedule 3(r)(iii)</U>, 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) <U>Schedule 3(r)(iv)</U>, there are no financing
statements securing obligations in any material amounts, either singly or in the aggregate, filed in connection with the Company
or any of its Subsidiaries; (v) <U>Schedule 3(r)(v)</U>, 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 1933 Act (except pursuant to the Registration
Rights Agreement); (vi) <U>Schedule 3(r)(vi)</U>, 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) <U>Schedule 3(r)(vii)</U>, there are no securities or instruments containing anti-dilution or similar provisions that will
be triggered by the issuance of the Securities; (viii) <U>Schedule 3(r)(viii)</U>, the Company does not have any stock appreciation
rights or "phantom stock" plans or agreements or any similar plan or agreement; and (ix) <U>Schedule 3(r)(ix)</U>, the
Company and its Subsidiaries have no liabilities or obligations required to be disclosed in the SEC Documents but not so disclosed
in the SEC Documents, other than those incurred in the ordinary course of the Company's or any of its Subsidiary's' respective
businesses and which, individually or in the aggregate, do not or would not have a Material Adverse Effect. The Company has furnished
or made available to the Buyers true, correct and complete copies of the Company's Articles of Incorporation, as amended and as
in effect on the date hereof (the "<B>Articles of Incorporation</B>"), and the Company's Bylaws, as amended and as in
effect on the date hereof (the "<B>Bylaws</B>"), 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.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(s)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>Indebtedness and Other Contracts</U>. Neither the Company nor any of its Subsidiaries (i) except as disclosed in
<U>Schedule 3(s)(i)</U>, has any outstanding Indebtedness (as defined below), (ii) except as disclosed in <U>Schedule 3(s)(ii)</U>,
is a party to any contract, agreement or instrument, the violation of which, or default under which, by the other party(ies) to
such contract, agreement or instrument could reasonably be expected to result in a Material Adverse Effect, (iii) except as disclosed
in <U>Schedule 3(s)(iii)</U>, is in violation of any term of or in default under any contract, agreement or instrument relating
to any Indebtedness, except where such violations and defaults would not result, individually or in the aggregate, in a Material
Adverse Effect, or (iv) except as disclosed in <U>Schedule 3(s)(iv)</U>, is a party to any contract, agreement or instrument relating
to any Indebtedness, the performance of which, in the judgment of the Company's officers, has or is expected to have a Material
Adverse Effect. <U>Schedule 3(s)</U> provides a detailed description of the material terms of any such outstanding Indebtedness.
For purposes of this Agreement: (x) "<B>Indebtedness</B>" of any Person means, without duplication (A) all indebtedness
for borrowed money, (B) all obligations issued, undertaken or assumed as the deferred purchase price of property or services, including,
without limitation, "capital leases" in accordance with GAAP (other than trade payables entered into in the ordinary
course of business consistent with past practice), (C) all reimbursement or payment obligations with respect to letters of credit,
surety bonds and other similar instruments, (D) all obligations evidenced by notes, bonds, debentures or similar instruments, including
obligations so evidenced incurred in connection with the acquisition of property, assets or businesses, (E) all indebtedness created
or arising under any conditional sale or other title retention agreement, or incurred as financing, in either case with respect
to any property or assets acquired with the proceeds of such indebtedness (even though the rights and remedies of the seller or
bank under such agreement in the event of default are limited to repossession or sale of such property), (F) all monetary obligations
under any leasing or similar arrangement which, in connection with GAAP, consistently applied for the periods covered thereby,
is classified as a capital lease, (G) all indebtedness referred to in clauses (A) through (F) above secured by (or for which the
holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any mortgage, lien, pledge, charge,
security interest or other encumbrance upon or in any property or assets (including accounts and contract rights) owned by any
Person, even though the Person which owns such assets or property has not assumed or become liable for the payment of such indebtedness,
and (H) all Contingent Obligations in respect of indebtedness or obligations of others of the kinds referred to in clauses (A)
through (G) above; and (y) "<B>Contingent Obligation</B>" means, as to any Person, any direct or indirect liability,
contingent or otherwise, of that Person with respect to any Indebtedness, lease, dividend or other obligation of another Person
if the primary purpose or intent of the Person incurring such liability, or the primary effect thereof, is to provide assurance
to the obligee of such liability that such liability will be paid or discharged, or that any agreements relating thereto will be
complied with, or that the holders of such liability will be protected (in whole or in part) against loss with respect thereto.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(t)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>Absence of Litigation</U>. There is no action, suit, proceeding, inquiry or investigation before or by the Principal
Market, any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the Company,
threatened against or affecting the Company or any of its Subsidiaries, the Common Stock or any of the Company's Subsidiaries or
any of the Company's or its Subsidiaries' officers or directors, whether of a civil or criminal nature or otherwise, in their capacities
as such, except as set forth in <U>Schedule 3(t)</U>. The matters set forth in <U>Schedule 3(t)</U> would not reasonably be expected
to have a Material Adverse Effect.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(u)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>Insurance</U>. The Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility
against such losses and risks and in such amounts as management of the Company believes to be prudent and customary in the businesses
in which the Company and its Subsidiaries are engaged. Neither the Company nor any such Subsidiary has been refused any insurance
coverage sought or applied for and neither the Company nor any such Subsidiary has any reason to believe that it will not be able
to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers
as may be necessary to continue its business at a cost that would not have a Material Adverse Effect.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(v)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>Employee Relations</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.25in">(i)	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 and its Subsidiaries believe that their relations with their employees are good. No executive officer of the Company or
any of its Subsidiaries (as defined in Rule 501(f) of the 1933 Act) has notified the Company or any such Subsidiary that such officer
intends to leave the Company or any such Subsidiary or otherwise terminate such officer's employment with the Company or any such
Subsidiary. No executive officer of the Company or any of its Subsidiaries, to the knowledge of the Company or any of its Subsidiaries,
is, or is now 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 or any of its Subsidiaries to any liability with respect
to any of the foregoing matters.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.25in">(ii)	The Company
and its Subsidiaries are 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.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(w)  	<U>Title</U>. The
Company and its Subsidiaries have good and marketable title in fee simple to all real property and good and marketable title to
all personal property owned by them which is material to the business of the Company and its Subsidiaries, in each case free and
clear of all liens, encumbrances and defects except for Permitted Liens which do not materially affect the value of such property
and do not interfere with the use made and proposed to be made of such property by the Company and any of its Subsidiaries. Any
real property and facilities held under lease by the Company and any of its Subsidiaries are held by them under valid, subsisting
and enforceable leases with such exceptions as are not material and do not interfere with the use made and proposed to be made
of such property and buildings by the Company and its Subsidiaries.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(x)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>Intellectual Property Rights</U>. 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, original works of authorship, patents,
patent rights, copyrights, inventions, licenses, approvals, governmental authorizations, trade secrets and other intellectual property
rights and all applications and registrations therefor ("<B>Intellectual Property Rights</B>") necessary to conduct their
respective businesses as now conducted. None of the Company's Intellectual Property Rights have expired or terminated or have been
abandoned or are expected to expire or terminate or are expected to be abandoned, within three years from the date of this Agreement.
The Company does not have any knowledge of any infringement by the Company or 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 its Intellectual Property Rights. Neither the Company
nor any of its Subsidiaries is aware of any facts or circumstances which might give rise to any of the foregoing infringements
or claims, actions or proceedings. The Company and its Subsidiaries have taken reasonable security measures to protect the secrecy,
confidentiality and value of all of their Intellectual Property Rights.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(y)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>Environmental Laws</U>. The Company and its Subsidiaries (i) are in compliance with any and all Environmental Laws
(as hereinafter defined), (ii) have received all permits, licenses or other approvals required of them under applicable Environmental
Laws to conduct their respective businesses and (iii) are 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 "<B>Environmental Laws</B>" 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, "<B>Hazardous Materials</B>")<B> </B>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.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(z)       <U>Subsidiary Rights</U>.
The Company or one of its Subsidiaries has the unrestricted right to vote, and (subject to limitations imposed by applicable law)
to receive dividends and distributions on, all capital securities of its Subsidiaries as owned by the Company or such Subsidiary.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(aa)     <U>Investment
Company Status</U>. Neither the Company nor any Subsidiary is, and upon consummation of the sale of the Securities, and for so
long any Buyer holds any Securities, will be, an "investment company," a company controlled by an "investment company"
or an "affiliated person" of, or "promoter" or "principal underwriter" for, an "investment company"
as such terms are defined in the Investment Company Act of 1940, as amended.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(bb)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">     <U>Tax
Status</U>. The Company and each of its Subsidiaries (i) has made or filed all U.S. federal, state and foreign income and all
other tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has paid all taxes and other
governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations,
except those being contested in good faith and (iii) has set aside on its books provision reasonably adequate for the payment
of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid taxes
in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company know of
no basis for any such claim.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(cc)     <U>Internal
Accounting and Disclosure Controls</U>. Except as set forth in <U>Schedule 3(cc)</U> or as set forth in the SEC Documents, the
Company and each of its Subsidiaries maintain 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. The Company maintains
disclosure controls and procedures (as such term is defined in Rule 13a-15 under the 1934 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 1934 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 1934 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. During
the twelve months prior to the date hereof neither the Company nor any of its Subsidiaries has received any notice or correspondence
from any accountant relating to any material weakness in any part of the system of internal accounting controls of the Company
or any of its Subsidiaries.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(dd)     
<U>Off Balance Sheet Arrangements</U>. There is no transaction, arrangement, or other relationship between the Company and an
unconsolidated or other off balance sheet entity that is required to be disclosed by the Company in its 1934 Act filings and is
not so disclosed or that otherwise would be reasonably likely to have a Material Adverse Effect.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(ee)      [Intentionally
omitted]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(ff)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">
</FONT>      [Intentionally omitted]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(gg)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">      </FONT><U>Transfer Taxes</U>. On the Closing Date, all stock transfer or other taxes (other than income or similar taxes) which
are required to be paid in connection with the sale and transfer of the Securities to be sold to each Buyer 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(hh)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">     <U>Manipulation
of Price</U>. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly, any
action designed to cause or to result, or that could reasonably be expected to cause or result, in the stabilization or manipulation
of the price of any security of the Company to facilitate the sale or resale of any of the Securities, (ii) other than the Placement
Agent, sold, bid for, purchased, or paid any compensation for soliciting purchases of, any of the Securities, or (iii) other than
the Placement Agent, paid or agreed to pay to any person any compensation for soliciting another to purchase any other securities
of the Company.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(ii)     <U>Acknowledgement
Regarding Buyers' Trading Activity</U>. The Company acknowledges and agrees that (i) none of the Buyers has been asked to agree,
nor has any Buyer agreed, to desist from purchasing or selling, long and/or short, securities of the Company, or "derivative"
securities based on securities issued by the Company or to hold the Securities for any specified term; (ii) any Buyer, and counter-parties
in "derivative" transactions to which any such Buyer is a party, directly or indirectly, presently may have a "short"
position in the Common Stock, and (iii) each Buyer shall not be deemed to have any affiliation with or control over any arm's
length counter-party in any "derivative" transaction. The Company further understands and acknowledges that one or more
Buyers may engage in hedging and/or trading activities at various times during the period that the Securities are outstanding,
and (b) such hedging and/or trading activities, if any, can reduce the value of the existing shareholders' equity interest in
the Company both at and after the time the hedging and/or trading activities are being conducted. The Company acknowledges that
such aforementioned hedging and/or trading activities do not constitute a breach of this Agreement or any of the documents executed
in connection herewith.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(jj)     <U>U.S. Real Property Holding Corporation</U>. The Company is not, has never been, and so long as any Securities remain outstanding,
shall not become, a U.S. real property holding corporation within the meaning of Section 897 of the Internal Revenue Code of 1986,
as amended, and the Company shall so certify upon any Buyer's request.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(kk)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">   <U>Bank
Holding Company Act</U>. Neither the Company nor any of its Subsidiaries or affiliates is subject to the Bank Holding Company
Act of 1956, as amended (the "<B>BHCA</B>") and to regulation by the Board of Governors of the Federal Reserve System
(the "<B>Federal Reserve</B>"). Neither the Company nor any of its Subsidiaries or affiliates owns or controls, directly
or indirectly, five percent (5%) or more of the outstanding shares of any class of voting securities or twenty-five percent (25%)
or more of the total equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve. Neither
the Company nor any of its Subsidiaries or affiliates exercises a controlling influence over the management or policies of a bank
or any entity that is subject to the BHCA and to regulation by the Federal Reserve.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(ll)     <U>No Additional Agreements</U>.
Neither the Company nor any of its Subsidiaries has any agreement or understanding with any Buyer with respect to the transactions
contemplated by the Transaction Documents other than as specified in the Transaction Documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(mm) <U>Disclosure</U>.
The Company confirms that neither it nor any other Person acting on its behalf has provided any of the Buyers or their agents
or counsel with any information that constitutes or could reasonably be expected to constitute material, nonpublic information.
The Company understands and confirms that each of the Buyers will rely on the foregoing representations in effecting transactions
in securities of the Company. All disclosure provided to the Buyers regarding the Company, or any of its Subsidiaries, their business
and the transactions contemplated hereby, including the disclosure schedules to this Agreement, furnished by or on behalf of the
Company is true and correct and does 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 the light of the circumstances under which they were made, not misleading. Each
press release issued by the Company or any of its Subsidiaries during the twelve (12) months preceding the date of this Agreement
did not at the time of release contain any untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made,
not misleading. No event or circumstance has occurred or information exists with respect to the Company or any of its Subsidiaries
or its or their business, properties, prospects, operations or financial conditions, which, under applicable law, rule or regulation,
requires public disclosure or announcement by the Company but which has not been so publicly announced or disclosed. The Company
acknowledges and agrees that no Buyer makes or has made any representations or warranties with respect to the transactions contemplated
hereby other than those specifically set forth in <U>Section 2</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(nn)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">     </FONT><U>Shell Company Status</U>. The Company is not, and has not been since July 14, 2013, an issuer identified in Rule 144(i)(1)
of the 1933 Act. As of July 14, 2013, the Company filed current "Form 10 information" (as defined in Rule 144 (i)(3))
with the SEC reflecting its status as an entity that was no longer an issuer described in Rule 144(i)(1)(i).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(oo)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">     </FONT><U>Stock Option Plans</U>. Each stock option granted by the Company was granted (i) in accordance with the terms of the
applicable stock option plan of the Company and (ii) with an exercise price at least equal to the fair market value of the Common
Stock on the date such stock option would be considered granted under GAAP and applicable law. No stock option granted under the
Company's stock option plan has been backdated. The Company has not knowingly granted, and there is no and has been no policy or
practice of the Company to knowingly grant, stock options prior to, or otherwise knowingly coordinate the grant of stock options
with, the release or other public announcement of material information regarding the Company or its Subsidiaries or their financial
results or prospects.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(pp)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">     </FONT><U>No Disagreements with Accountants and Lawyers</U>. There are no material disagreements of any kind presently existing,
or reasonably anticipated by the Company to arise, between the Company and the accountants and lawyers formerly or presently employed
by the Company and the Company is current with respect to any fees owed to its accountants and lawyers which could affect the Company's
ability to perform any of its obligations under any of the Transaction Documents. In addition, on or prior to the date hereof,
the Company had discussions with its accountants about its financial statements previously filed with the SEC. Based on those discussions,
the Company has no reason to believe that it will need to restate any such financial statements or any part thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(qq)     <U>No Disqualification Events</U>. With respect to Securities to be offered and sold hereunder in reliance on Rule 506(b) under
the 1933 Act ("<B>Regulation D Securities</B>"), none of the Company, any of its predecessors, any affiliated issuer,
any director, executive officer, other officer of the Company participating in the offering hereunder, any beneficial owner of
20% or more of the Company's outstanding voting equity securities, calculated on the basis of voting power, nor any promoter (as
that term is defined in Rule 405 under the 1933 Act) connected with the Company in any capacity at the time of sale (each, an
"<B>Issuer Covered Person</B>" and, together, "<B>Issuer Covered Persons</B>") is subject to any of the "Bad
Actor" disqualifications described in Rule 506(d)(1)(i) to (viii) under the 1933 Act (a "<B>Disqualification Event</B>"),
except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine
whether any Issuer Covered Person is subject to a Disqualification Event. The Company has complied, to the extent applicable,
with its disclosure obligations under Rule 506(e), and has furnished to the Buyers a copy of any disclosures provided thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(rr)     <U>Other Covered Persons</U>. The Company is not aware of any Person (other than the Placement Agent) that has been or will
be paid (directly or indirectly) remuneration for solicitation of Buyers or potential purchasers in connection with the sale of
any Regulation D Securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">4.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">           
</FONT><U>COVENANTS</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(a)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">   
</FONT>	<U>Best Efforts</U>. Each party shall use its best efforts timely to satisfy each of the covenants and the conditions
to be satisfied by it as provided in <U>Sections 6</U> and <U>7</U> of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(b)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>Form D and Blue Sky</U>. The Company agrees to file a Form D with respect to the Securities as required under Regulation
D and to provide a copy thereof to each Buyer promptly after such filing. The Company shall, on or before the Closing Date, take
such action as the Company shall reasonably determine is necessary in order to obtain an exemption for or to qualify the Securities
for sale to the Buyers at the Closing pursuant to this Agreement under applicable securities or "Blue Sky" laws of the
states of the United States (or to obtain an exemption from such qualification), and shall provide evidence of any such action
so taken to the Buyers on or prior to the Closing Date. The Company shall make all filings and reports relating to the offer and
sale of the Securities required under applicable securities or "Blue Sky" laws of the states of the United States following
the Closing Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(c)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">   
</FONT>	<U>Reporting Status</U>. Until the date on which the Investors (as defined in the Registration Rights Agreement) shall
have sold all of the Common Shares<B> </B>(the "<B>Reporting Period</B>"), the Company shall timely file all reports
required to be filed with the SEC pursuant to the 1934 Act, and the Company shall not terminate its status as an issuer required
to file reports under the 1934 Act even if the 1934 Act or the rules and regulations thereunder would no longer require or otherwise
permit such termination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(d)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>Use of Proceeds</U>. The Company will use the proceeds from the sale of the Securities for working capital and general
corporate purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(e)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">   
</FONT>	<U>Financial Information</U>. The Company agrees to send the following to each Investor during the Reporting Period
(i) unless the following are filed with the SEC through EDGAR and are available to the public through the EDGAR system, within
one (1) Business Day after the filing thereof with the SEC, a copy of its Annual Reports on Form 10-K, any Quarterly Reports on
Form 10-Q, any Current Reports on Form 8-K (or any analogous reports under the 1934 Act) and any registration statements (other
than on Form S-8) or amendments filed pursuant to the 1933 Act, (ii) unless the following are filed with the SEC through EDGAR
and are available to the public through the EDGAR system, on the same day as the release thereof, facsimile or e-mailed copies
of all press releases issued by the Company or any of its Subsidiaries, and (iii) copies of any notices and other information made
available or given to the shareholders of the Company generally, contemporaneously with the making available or giving thereof
to the shareholders. As used herein, "<B>Business Day</B>" means any day other than Saturday, Sunday or other day on
which commercial banks in The City of New York are authorized or required by law to remain closed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(f)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">   
</FONT>	<U>Listing</U>. The Company shall promptly secure the listing of all of the Registrable Securities (as defined in the
Registration Rights Agreement) upon each national securities exchange and automated quotation system, if any, upon which the Common
Stock then listed (subject to official notice of issuance) and shall maintain such listing of all Registrable Securities from time
to time issuable under the terms of the Transaction Documents. The Company shall maintain the authorization for quotation of the
Common Stock on the Principal Market or any other Eligible Market. Neither the Company nor any of its Subsidiaries shall take any
action which would be reasonably expected to result in the delisting or suspension of the Common Stock on the Principal Market.
The Company shall pay all fees and expenses in connection with satisfying its obligations under this <U>Section 4(f)</U>. As used
herein, "<B>Eligible Market</B>" means the Principal Market, the NYSE MKT LLC, The NASDAQ Global Market, The NASDAQ Global
Select Market, The NASDAQ Capital Market or The New York Stock Exchange, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(g)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>Fees</U>. The Company shall be responsible for the payment of any placement agent's fees, financial advisory fees,
or broker's commissions (other than for Persons engaged by any Buyer) relating to or arising out of the transactions contemplated
hereby, including, without limitation, any fees or commissions payable to the Placement Agent. The Company shall pay, and hold
each Buyer harmless against, any liability, loss or expense (including, without limitation, reasonable attorney's fees and out-of-pocket
expenses) arising in connection with any claim relating to any such payment. Except as otherwise set forth in the Transaction Documents,
each party to this Agreement shall bear its own expenses in connection with the sale of the Securities to the Buyers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(h)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>Pledge of Securities</U>. The Company acknowledges and agrees that the Securities may be pledged by an Investor 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 no Investor effecting a
pledge of Securities shall be required to provide the Company with any notice thereof or otherwise make any delivery to the Company
pursuant to this Agreement or any other Transaction Document, including, without limitation, <U>Section 2(f)</U> hereof; <U>provided</U>
that an Investor and its pledgee shall be required to comply with the provisions of <U>Section 2(f)</U> hereof in order to effect
a sale, transfer or assignment of Securities to such pledgee. 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 an Investor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(i)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">    
</FONT>	<U>Disclosure of Transactions and Other Material Information</U>. On or before 8:30 a.m., New York City time, on the
first Business Day after the Closing Date, the Company shall issue a press release reasonably acceptable to the Buyers and file
a Current Report on Form 8-K describing the terms of the transactions contemplated by the Transaction Documents in the form required
by the 1934 Act and attaching the material Transaction Documents (including, without limitation, this Agreement (and all schedules
and exhibits to this Agreement), the form of Registration Rights Agreement, as exhibits to such filing (including all attachments),
the "<B>8-K Filing</B>"). From and after the filing of the 8-K Filing with the SEC, no Buyer shall be in possession of
any material, nonpublic information received from the Company, any of its Subsidiaries or any of their respective officers, directors,
affiliates, employees or agents, that is not disclosed in the 8-K Filing. In addition, effective upon the filing of the 8-K Filing,
the Company acknowledges and agrees that any and all confidentiality or similar obligations under any agreement, whether written
or oral, between the Company, any of its Subsidiaries or any of their respective officers, directors, affiliates, employees or
agents, on the one hand, and any of the Buyers or any of their affiliates, on the other hand, shall terminate. The Company shall
not, and shall cause each of its Subsidiaries and its and each of their respective officers, directors, affiliates, employees and
agents, not to, provide any Buyer with any material, nonpublic information regarding the Company or any of its Subsidiaries from
and after the date hereof with the SEC without the express prior written consent of such Buyer. If a Buyer has, or believes it
has, received any such material, nonpublic information regarding the Company or any of its Subsidiaries from the Company, any of
its Subsidiaries or any of their respective officers, directors, affiliates, employees or agents, it may provide the Company with
written notice thereof. The Company shall, within two (2) Trading Days of receipt of such notice, make public disclosure of such
material, nonpublic information. In the event of a breach of the foregoing covenant by the Company, any of its Subsidiaries, or
any of its or their respective officers, directors, affiliates, employees and agents, in addition to any other remedy provided
herein or in the Transaction Documents, a Buyer shall have the right to make a public disclosure, in the form of a press release,
public advertisement or otherwise, of such material, nonpublic information without the prior approval by the Company, its Subsidiaries,
or any of its or their respective officers, directors, affiliates, employees or agents. No Buyer shall have any liability to the
Company, its Subsidiaries, or any of its or their respective officers, directors, affiliates, employees, shareholders or agents
for any such disclosure. To the extent that the Company delivers any material, non-public information to a Buyer without such Buyer's
consent, the Company hereby covenants and agrees that such Buyer shall not have any duty of confidentiality to the Company, any
of its Subsidiaries or any of their respective officers, directors, employees, affiliates or agents with respect to, or a duty
not to trade on the basis of, such material, non-public information. Subject to the foregoing, neither the Company, its Subsidiaries
nor any Buyer shall issue any press releases or any other public statements with respect to the transactions contemplated hereby;
provided, however, that the Company shall be entitled, without the prior approval of any Buyer, to make any press release or other
public disclosure with respect to such transactions (i) in substantial conformity with the 8-K Filing and contemporaneously therewith
and (ii) as is required by applicable law and regulations (provided that in the case of clause (i) each Buyer shall be consulted
by the Company in connection with any such press release or other public disclosure prior to its release). Except for the Registration
Statement required to be filed pursuant to the Registration Rights Agreement, without the prior written consent of any applicable
Buyer, neither the Company nor any of its Subsidiaries or affiliates shall disclose the name of such Buyer in any filing, announcement,
release or otherwise.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(j)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  </FONT>	[Intentionally
omitted]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(k)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  </FONT>	<U>Corporate Existence</U>. So long as any Buyer beneficially owns any Securities, the Company shall maintain its corporate
existence.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(l)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  </FONT>	[Intentionally omitted]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(m)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  </FONT>	<U>Conduct of Business</U>. The business of the Company and its Subsidiaries shall not be conducted in violation of
any law, ordinance or regulation of any governmental entity, except where such violations would not result, either individually
or in the aggregate, in a Material Adverse Effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(n)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	[Intentionally Omitted]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(o)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>Public Information</U>. At any time during the period commencing from the six (6) month anniversary of the Closing
Date and ending at such time that all of the Securities, if a registration statement is not available for the resale of all of
the Securities, may be sold without restriction or limitation pursuant to Rule 144 and without the requirement to be in compliance
with Rule 144(c)(1), if the Company shall (i) fail for any reason to satisfy the requirements of Rule 144(c)(1), including, without
limitation, the failure to satisfy the current public information requirement under Rule 144(c) or (ii) if the Company has ever
been an issuer described in Rule 144(i)(1)(i) or becomes such an issuer in the future, and the Company shall fail to satisfy any
condition set forth in Rule 144(i)(2) (a "<B>Public Information Failure</B>") then, as partial relief for the damages
to any holder of Securities by reason of any such delay in or reduction of its ability to sell the Securities (which remedy shall
not be exclusive of any other remedies available at law or in equity), the Company shall pay to each such holder an amount in
cash equal to two percent (2.0%) of the Aggregate Purchase Price of such holder's Securities on the day of a Public Information
Failure and on every thirtieth day (pro rated for periods totaling less than thirty days) thereafter until the earlier of (i)
the date such Public Information Failure is cured and (ii) such time that such public information is no longer required pursuant
to Rule 144. The payments to which a holder shall be entitled pursuant to this <U>Section 4(o)</U> are referred to herein as "<B>Public
Information Failure Payments</B>." Public Information Failure<B> </B>Payments shall be paid on the earlier of (I) the last
day of the calendar month during which such Public Information Failure<B> </B>Payments are incurred and (II) the third Business
Day after the event or failure giving rise to the Public Information Failure<B> </B>Payments is cured. In the event the Company
fails to make Public Information Failure<B> </B>Payments in a timely manner, such Public Information Failure<B> </B>Payments shall
bear interest at the rate of 1.5% per month (prorated for partial months) until paid in full.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(p)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	[Intentionally omitted]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(q)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>Notice of Disqualification Events</U>. The Company will notify the Buyers in writing, prior to the Closing Date of
(i) any Disqualification Event relating to any Issuer Covered Person and (ii) any event that would, with the passage of time, become
a Disqualification Event relating to any Issuer Covered Person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(r)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">    
</FONT>	<U>Closing Documents</U>. On or prior to fourteen (14) calendar days after the Closing Date, the Company agrees to deliver,
or cause to be delivered, to each Buyer a complete closing set of the executed Transaction Documents, Securities and any other
documents required to be delivered to any party pursuant to <U>Section 7</U> hereof or otherwise. 	</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">5.           	<U>TRANSFER AGENT INSTRUCTIONS</U>. The Company shall issue irrevocable instructions to its transfer agent, and any
subsequent transfer agent, in the form of <U>Exhibit B</U> attached hereto (the "<B>Irrevocable Transfer Agent Instructions</B>")
to issue certificates or credit shares to the applicable balance accounts at DTC, registered in the name of each Buyer or its respective
nominee(s), for the Common Shares issued at the Closing. The Company warrants that no instruction other than the Irrevocable Transfer
Agent Instructions referred to in this <U>Section 5</U>, and stop transfer instructions to give effect to <U>Section 2(f)</U> hereof,
will be given by the Company to its transfer agent, and that the Securities shall otherwise be freely transferable on the books
and records of the Company as and to the extent provided in this Agreement and the other Transaction Documents. If a Buyer effects
a sale, assignment or transfer of the Securities in accordance with <U>Section 2(f)</U>, the Company shall permit the transfer
and shall promptly instruct its transfer agent to issue one or more certificates or credit shares to the applicable balance accounts
at DTC in such name and in such denominations as specified by such Buyer to effect such sale, transfer or assignment. In the event
that such sale, assignment or transfer involves the Common Shares sold, assigned or transferred pursuant to an effective registration
statement or pursuant to Rule 144, the transfer agent shall issue such Securities to the Buyer, assignee or transferee, as the
case may be, without any restrictive legend. The Company acknowledges that a breach by it of its obligations hereunder will cause
irreparable harm to a Buyer. Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under
this <U>Section 5</U> will be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions
of this <U>Section 5</U>, that a Buyer shall be entitled, in addition to all other available remedies, to an order and/or injunction
restraining any breach and requiring immediate issuance and transfer, without the necessity of showing economic loss and without
any bond or other security being required.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">6.           <U>CONDITIONS TO THE COMPANY'S OBLIGATION TO SELL</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">The obligation of
the Company hereunder to issue and sell the Common Shares to each Buyer at the Closing is subject to the satisfaction, at or before
the Closing Date, of each of the following conditions, provided that these conditions are for the Company's sole benefit and may
be waived by the Company at any time in its sole discretion by providing each Buyer with prior written notice thereof:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">(i)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">          </FONT>Such Buyer shall have executed each of the Transaction Documents to which it is a party and delivered the same to the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">(ii)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">         </FONT>Such
Buyer shall have delivered its Aggregate Purchase Price to the Company, for the Common Shares being purchased by such Buyer at
the Closing by wire transfer of immediately available funds pursuant to the wire instructions provided by the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">(iii)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">       </FONT>The
representations and warranties of such Buyer shall be true and correct as of the date when made and as of the Closing Date as
though made at that time (except for representations and warranties that speak as of a specific date which shall be true and correct
as of such specified date), and such Buyer shall have performed, satisfied and complied in all material respects with the covenants,
agreements and conditions required by this Agreement to be performed, satisfied or complied with by such Buyer at or prior to
the Closing Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">7.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">           <U>CONDITIONS
TO EACH BUYER'S OBLIGATION TO PURCHASE</U>.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">The obligation of
each Buyer hereunder to purchase the Common Shares at the Closing is subject to the satisfaction, at or before the Closing Date,
of each of the following conditions, provided that these conditions are for each Buyer's sole benefit and may be waived by such
Buyer at any time in its sole discretion by providing the Company with prior written notice thereof:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">(i)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">          </FONT>The
Company and each of its Subsidiaries shall have duly executed and delivered to such Buyer each of the following documents to which
it is a party: (A) each of the Transaction Documents and (B) the Common Shares (in such amounts as such Buyer shall request),
being purchased by such Buyer at the Closing pursuant to this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">(ii)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">          </FONT>Such Buyer shall have received the opinion of LKP Global Law, LLP, the Company's outside counsel, dated as of the Closing
Date, in substantially the form of <U>Exhibit C</U> attached hereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">(iii)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">         </FONT>The Company shall have delivered to such Buyer a copy of the Irrevocable Transfer Agent Instructions, in the form of <U>Exhibit
B</U> attached hereto, which instructions shall have been delivered to and acknowledged in writing by the Company's transfer agent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">(iv)          The
Company shall have delivered to such Buyer a certificate evidencing the formation and good standing of the Company in the Company's
jurisdiction of formation issued by the Secretary of State (or comparable office) of such jurisdiction, as of a date within ten
(10) days of the Closing Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">(v)          The Company shall have delivered to such Buyer a certificate evidencing the Company's qualification as a foreign corporation and
good standing issued by the Secretary of State (or comparable office) of each jurisdiction in which the Company and its Subsidiaries
conduct business, as of a date within ten (10) days of the Closing Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">(vi)          [Intentionally
omitted]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">(vii)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">         </FONT>The Company shall have delivered to such Buyer a certificate, executed by the Secretary of the Company and dated as of the
Closing Date, as to (i) the resolutions consistent with <U>Section 3(b)</U> as adopted by the Company's Board of Directors in a
form reasonably acceptable to such Buyer, (ii) the Articles of Incorporation of the Company and (iii) the Bylaws of the Company,
as in effect at the Closing, in the form attached hereto as <U>Exhibit D</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">(viii)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">         The representations and warranties of the Company shall be true and correct as of the date when made and as of the Closing Date
as though made at that time (except for representations and warranties that speak as of a specific date which shall be true and
correct as of such specified date) and the Company shall have performed, satisfied and complied in all respects with the covenants,
agreements and conditions required by the Transaction Documents to be performed, satisfied or complied with by the Company at
or prior to the Closing Date. Such Buyer shall have received a certificate, executed by the Chief Executive Officer of the Company,
dated as of the Closing Date, to the foregoing effect and as to such other matters as may be reasonably requested by such Buyer
in the form attached hereto as <U>Exhibit E</U>.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">(ix)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">            [Intentionally omitted]</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">(x)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">            </FONT>[Intentionally omitted]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">(xi)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">           </FONT>The
Common Stock (I) shall be designated for quotation or listed on the Principal Market and (II) shall not have been suspended, as
of the Closing Date, by the SEC or the Principal Market from trading on the Principal Market nor shall suspension by the SEC or
the Principal Market have been threatened, as of the Closing Date, either (A) in writing by the SEC or the Principal Market or
(B) by falling below the minimum listing maintenance requirements of the Principal Market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">(xii)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">          </FONT>The Company shall have obtained all governmental, regulatory or third party consents and approvals, if any, necessary for
the sale of the Securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in"> </P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">(xiii)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">        
</FONT>The Company shall have delivered to such Buyer such other documents relating to the transactions contemplated by this Agreement
as such Buyer or its counsel may reasonably request.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">8.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">           
</FONT><U>TERMINATION</U>. In the event that the Closing shall not have occurred with respect to a Buyer on or before five (5)
Business Days from the date hereof due to the Company's or such Buyer's failure to satisfy the conditions set forth in <U>Sections
6</U> and <U>7</U> above (and the nonbreaching party's failure to waive such unsatisfied condition(s)), the nonbreaching party
shall have the option to terminate this Agreement with respect to such breaching party at the close of business on such date by
delivering a written notice to that effect to each other party to this Agreement and without liability of any party to any other
party..</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">9.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">           </FONT>	<U>MISCELLANEOUS</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(a)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">   
</FONT>	<U>Governing Law; Jurisdiction; Jury Trial</U>. All questions concerning the construction, validity, enforcement and
interpretation of this Agreement shall be governed by the internal laws of the State of New York, without giving effect to any
choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause
the application of the laws of any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the
exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication
of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby
irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to
the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue
of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to
process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices
to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.
Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. <B>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.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"><B> </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(b)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>Counterparts</U>. This Agreement and any amendments hereto may be executed and delivered in two or more counterparts,
and by the different parties hereto in separate counterparts, each of which when executed shall be deemed to be an original, but
all of which taken together shall constitute one and the same agreement, and shall become effective when counterparts have been
signed by each party hereto and delivered to the other parties hereto, it being understood that all parties need not sign the same
counterpart.  In the event that any signature to this Agreement or any amendment hereto is delivered by facsimile transmission
or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the
party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof.  No party hereto shall raise the use of a facsimile machine or e-mail delivery of
a “.pdf” format data file to deliver a signature to this Agreement or any amendment hereto or the fact that such signature
was transmitted or communicated through the use of a facsimile machine or e-mail delivery of a “.pdf” format data file
as a defense to the formation or enforceability of a contract and each party hereto forever waives any such defense.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(c)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  </FONT>	<U>Headings</U>.
The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this
Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(d)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>Severability</U>. If any provision of this Agreement is prohibited by law or otherwise determined to be invalid or
unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable
shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability
of such provision shall not affect the validity of the remaining provisions of this Agreement so long as this Agreement as so modified
continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited
nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations
or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the
parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s)
with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(e)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">   
</FONT>	<U>Entire Agreement; Amendments</U>. This Agreement and the other Transaction Documents supersede all other prior oral
or written agreements between the Buyers, the Company, their affiliates and Persons acting on their behalf with respect to the
matters discussed herein, and this Agreement, the other Transaction Documents and the instruments referenced herein and therein
contain the entire understanding of the parties with respect to the matters covered herein and therein and, except as specifically
set forth herein or therein, neither the Company nor any Buyer makes any representation, warranty, covenant or undertaking with
respect to such matters. Provisions of this Agreement may be amended and the observance thereof may be waived (either generally
or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and the holders
of at least a majority of the Common Shares issued hereunder (as adjusted for any stock dividend, stock split, stock combination,
reclassification or similar transaction occurring after the date thereof) (the "<B>Required Holders</B>"); provided that
any such amendment or waiver that complies with the foregoing but that disproportionately, materially and adversely affects the
rights and obligations of any Buyer relative to the comparable rights and obligations of the other Buyers shall require the prior
written consent of such adversely affected Buyer. Any amendment or waiver effected in accordance with this <U>Section 9(e)</U>
shall be binding upon each Buyer and holder of Securities and the Company. No such amendment shall be effective to the extent that
it applies to less than all of the Buyers or holders of Securities. No consideration shall be offered or paid to any Person to
amend or consent to a waiver or modification of any provision of any of the Transaction Documents unless the same consideration
(other than the reimbursement of legal fees) also is offered to all of the parties to the Transaction Documents, holders of Common
Shares. The Company has not, directly or indirectly, made any agreements with any Buyers relating to the terms or conditions of
the transactions contemplated by the Transaction Documents except as set forth in the Transaction Documents. Without limiting the
foregoing, the Company confirms that, except as set forth in this Agreement, no Buyer has made any commitment or promise or has
any other obligation to provide any financing to the Company or otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(f)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">   
</FONT>	<U>Notices</U>. Any notices, consents, waivers or other communications required or permitted to be given under the terms
of this Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii)
upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept
on file by the sending party), (iii) when sent, if sent by electronic mail; or (iv) one Business Day after deposit with an overnight
courier service, in each case properly addressed to the party to receive the same. The addresses, facsimile numbers and e-mail
addresses for such communications shall be:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 1.5in">If to the Company:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"> </P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD> </TD>
    <TD COLSPAN="2">Ener-Core, Inc.</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD> </TD>
    <TD COLSPAN="2">9400 Toledo Way</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD> </TD>
    <TD COLSPAN="2">Irvine, California 92618</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 1.5in"> </TD>
    <TD STYLE="width: 15%">Telephone:</TD>
    <TD>(949) 616-3333</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD> </TD>
    <TD>Facsimile:</TD>
    <TD>(949) 616-3399</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD> </TD>
    <TD>Attention:</TD>
    <TD>Domonic J. Carney</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD> </TD>
    <TD>Email:</TD>
    <TD>DJ.Carney@ener-core.com</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 1.75in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 1.5in">With a copy to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"> </P>

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom">
    <TD> </td>
    <TD COLSPAN="3">LKP Global Law, LLP</td></tr>
<tr style="vertical-align: bottom">
    <TD> </td>
    <TD COLSPAN="3">1901 Avenue of the Stars, Suite 480</td></tr>
<tr style="vertical-align: bottom">
    <TD> </td>
    <TD COLSPAN="3">Los Angeles, California 90067</td></tr>
<tr style="vertical-align: bottom">
    <TD> </td>
    <TD>Telephone:</td>
    <TD COLSPAN="2">(424) 239-1890</td></tr>
<tr style="vertical-align: bottom">
    <TD> </td>
    <TD>Facsimile:</td>
    <TD COLSPAN="2">(424) 239-1882</td></tr>
<TR STYLE="vertical-align: bottom">
    <TD> </TD>
    <TD>Attention:</TD>
    <TD COLSPAN="2">Kevin K. Leung, Esq.</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 1.5in"> </TD>
    <TD STYLE="width: 15%">E-mail:</TD>
    <TD STYLE="width: 50%">Kleung@lkpgl.com</TD>
    <TD> </TD></TR>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 1.5in">If to the Transfer Agent:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"> </P>

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: bottom">
    <TD> </td>
    <TD COLSPAN="2">VStock Transfer, LLC.</td></tr>
<tr style="vertical-align: bottom">
    <TD> </td>
    <TD COLSPAN="2">18 Lafayette Place</td></tr>
<tr style="vertical-align: bottom">
    <TD> </td>
    <TD COLSPAN="2">Woodmere, New York 11598</td></tr>
<tr style="vertical-align: bottom">
    <TD STYLE="width: 1.5in"> </td>
    <TD STYLE="width: 15%">Telephone:</td>
    <TD>(212) 828-8436</td></tr>
<TR STYLE="vertical-align: bottom">
    <TD> </TD>
    <TD>Facsimile: </TD>
    <TD>(646) 536-3179</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD> </TD>
    <TD>Attention: </TD>
    <TD>Yoel Goldfeder</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD> </TD>
    <TD>E-mail:</TD>
    <TD>yoel@vstocktransfer.com</TD></TR>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"> </P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"> <BR></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">If to Buyer, to its address, facsimile
number and e-mail address set forth on the Buyer Signature Page, or to such other address, facsimile number and/or e-mail
address and/or to the attention of such other Person as the recipient party has specified by written notice given to each
other party five (5) Business Days prior to the effectiveness of such change. Written confirmation of receipt (A) given by
the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically generated by the
sender's facsimile machine or e-mail containing the time, date, recipient facsimile number and an image of the first page of
such transmission or (C) provided by an overnight courier service shall be rebuttable evidence of personal service, receipt
by facsimile, receipt by e-mail or receipt from an overnight courier service in accordance with clause (i), (ii) (iii) or
(iv) above, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(g)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>Successors and Assigns</U>. This Agreement shall be binding upon and inure to the benefit of the parties and their
respective successors and assigns, including any purchasers of the Common Shares. The Company shall not assign this Agreement or
any rights or obligations hereunder without the prior written consent of the Required Holders. A Buyer may assign some or all of
its rights hereunder without the consent of the Company, in which event such assignee shall be deemed to be a Buyer hereunder with
respect to such assigned rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(h)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>No Third Party Beneficiaries</U>. 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,
except that each Indemnitee shall have the right to enforce the obligations of the Company with respect to <U>Section 9(k)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(i)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">    
</FONT>	<U>Survival</U>. Unless this Agreement is terminated under <U>Section 8</U>, the representations and warranties of the
Company and the Buyers contained in <U>Sections 2</U> and <U>3</U>, and the agreements and covenants set forth in <U>Sections 4</U>,
<U>5</U> and <U>9</U> shall survive the Closing. Each Buyer shall be responsible only for its own representations, warranties,
agreements and covenants hereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(j)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">    
</FONT>	<U>Further Assurances</U>. 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, including without limitation taking such reasonable action as is necessary or desirable to perfect
a security interest in the Company's or one or more of its Subsidiaries' Intellectual Property. Also, without limiting the generality
of the requirements of the Company set forth in the Transaction Documents, the Company hereby covenants and agrees to provide prompt
notice to the Collateral Agent upon the issuance of any patents in the name of the Company or any of their Subsidiaries anywhere
in the world.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(k)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>Indemnification</U>.	In consideration of each Buyer's execution and delivery of the Transaction Documents and
acquiring the Securities thereunder and in addition to all of the Company's other obligations under the Transaction Documents,
the Company shall defend, protect, indemnify and hold harmless each Buyer and each other holder of the Securities and all of their
shareholders, partners, members, officers, directors, employees and direct or indirect investors and any of the foregoing Persons'
agents or other representatives (including, without limitation, those retained in connection with the transactions contemplated
by this Agreement) (collectively, the "<B>Indemnitees</B>") from and against any and all actions, causes of action, suits,
claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection therewith (irrespective of whether
any such Indemnitee is a party to the action for which indemnification hereunder is sought), and including reasonable attorneys'
fees and disbursements (the "<B>Indemnified Liabilities</B>"), incurred by any Indemnitee as a result of, or arising
out of, or relating to (a) any misrepresentation or breach of any representation or warranty made by the Company in the Transaction
Documents or any other certificate, instrument or document contemplated hereby or thereby, (b) any breach of any covenant, agreement
or obligation of the Company contained in the Transaction Documents or any other certificate, instrument or document contemplated
hereby or thereby or (c) any cause of action, suit or claim brought or made against such Indemnitee by a third party (including
for these purposes a derivative action brought on behalf of the Company) and arising out of or resulting from (i) the execution,
delivery, performance or enforcement of the Transaction Documents or any other certificate, instrument or document contemplated
hereby or thereby, (ii) any transaction financed or to be financed in whole or in part, directly or indirectly, with the proceeds
of the issuance of the Securities, (iii) any disclosure made by such Buyer pursuant to <U>Section 4(i)</U>, or (iv) the status
of such Buyer or holder of the Securities as an investor in the Company pursuant to the transactions contemplated by the Transaction
Documents. To the extent that the foregoing undertaking by the Company may be unenforceable for any reason, the Company shall make
the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities that is permissible under applicable
law. Except as otherwise set forth herein, the mechanics and procedures with respect to the rights and obligations under this <U>Section
9(k)</U> shall be the same as those set forth in <U>Section 6</U> of the Registration Rights Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(l)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  </FONT>	<U>No
Strict Construction</U>. The language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(m)  <U>Remedies</U>.
Each Buyer and each holder of the Securities shall have all rights and remedies set forth in the Transaction Documents and all
rights and remedies which such holders have been granted at any time under any other agreement or contract and all of the rights
which such holders have under any law. Any Person having any rights under any provision of this Agreement shall be entitled to
enforce such rights specifically (without posting a bond or other security), to recover damages by reason of any breach of any
provision of this Agreement and to exercise all other rights granted by law. Furthermore, the Company recognizes that in the event
that it fails to perform, observe, or discharge any or all of its obligations under the Transaction Documents, any remedy at law
may prove to be inadequate relief to the Buyers. The Company therefore agrees that the Buyers shall be entitled to seek temporary
and permanent injunctive relief in any such case without the necessity of proving actual damages and without posting a bond or
other security.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(n)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>Rescission and Withdrawal Right</U>. Notwithstanding anything to the contrary contained in (and without limiting
any similar provisions of) the Transaction Documents, whenever any Buyer exercises a right, election, demand or option under a
Transaction Document and the Company does not timely perform its related obligations within the periods therein provided, then
such Buyer may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company, any relevant notice,
demand or election in whole or in part without prejudice to its future actions and rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(o)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>Payment Set Aside</U>. To the extent that the Company makes a payment or payments to the Buyers hereunder or pursuant
to any of the other Transaction Documents or the Buyers enforce or exercise their rights hereunder or thereunder, and such payment
or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent
or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company,
a trustee, receiver or any other Person under any law (including, without limitation, any bankruptcy law, foreign, state or federal
law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally
intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such enforcement
or setoff had not occurred.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(p)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">  
</FONT>	<U>Independent Nature of Buyers' Obligations and Rights</U>. The obligations of each Buyer under any Transaction Document
are several and not joint with the obligations of any other Buyer, and no Buyer shall be responsible in any way for the performance
of the obligations of any other Buyer under any Transaction Document. Nothing contained herein or in any other Transaction Document,
and no action taken by any Buyer pursuant hereto or thereto, shall be deemed to constitute the Buyers as, and the Company acknowledges
that the Buyers do not so constitute, a partnership, an association, a joint venture or any other kind of entity, or create a presumption
that the Buyers are in any way acting in concert or as a group, and the Company shall not assert any such claim with respect to
such obligations or the transactions contemplated by the Transaction Documents and the Company acknowledges that the Buyers are
not acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents.
The Company acknowledges and each Buyer confirms that it has independently participated in the negotiation of the transaction contemplated
hereby with the advice of its own counsel and advisors. Each Buyer shall be entitled to independently protect and enforce its rights,
including, without limitation, the rights arising out of this Agreement or out of any other 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"> </P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">[Signature Page Follows]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>IN WITNESS WHEREOF,</B>
each Buyer and the Company have caused their respective signature page to this Securities Purchase Agreement to be duly executed
as of the date first written above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 10pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; line-height: 115%; text-indent: 0"> </TD>
    <TD COLSPAN="2" STYLE="padding: 0; line-height: 115%; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>COMPANY:</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; line-height: 115%; text-indent: 0"> </TD>
    <TD COLSPAN="2" STYLE="padding: 0; line-height: 115%; text-indent: 0"> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; line-height: 115%; text-indent: 0"> </TD>
    <TD COLSPAN="2" STYLE="padding: 0; line-height: 115%; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>ENER - CORE, INC.</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; line-height: 115%; text-indent: 0; width: 60%"> </TD>
    <TD STYLE="padding: 0; line-height: 115%; text-indent: 0; width: 4%"> </TD>
    <TD STYLE="padding: 0; line-height: 115%; text-indent: 0; width: 36%"> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0 0 1.5pt; line-height: 115%; text-indent: 0"> </TD>
    <TD STYLE="padding: 0 0 1.5pt; line-height: 115%; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">By:</FONT></TD>
    <TD STYLE="padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; line-height: 115%; text-indent: 0"></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; line-height: 115%; text-indent: 0"> </TD>
    <TD STYLE="padding: 0; line-height: 115%; text-indent: 0"> </TD>
    <TD STYLE="padding: 0; line-height: 115%; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Name: Alain J. Castro</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; line-height: 115%; text-indent: 0"> </TD>
    <TD STYLE="padding: 0; line-height: 115%; text-indent: 0"> </TD>
    <TD STYLE="padding: 0; line-height: 115%; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Title: Chief Executive Officer  </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; line-height: 115%; text-indent: 0"> </TD>
    <TD STYLE="padding: 0; line-height: 115%; text-indent: 0"> </TD>
    <TD STYLE="padding: 0; line-height: 115%; text-indent: 0"> </TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0"><I>[Company Signature
Page to Securities Purchase Agreement]</I></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"> </P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>IN WITNESS WHEREOF,</B>
each Buyer and the Company have caused their respective signature page to this Securities Purchase Agreement to be duly executed
as of the date first written above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0in"><B> </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0in"><B>BUYER:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0in"><B> </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0in"></P>

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 0; margin-bottom: 0"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%"> </DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"> 	<I>Please print above
the exact name(s) in which the Common Shares are to be held</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0in"><B> </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0in">Date: _____________________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0in"> </P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 33%">Number of Common Shares
Purchased:</TD>
    <TD STYLE="width: 34%">_____________________________</TD>
    <TD STYLE="width: 33%"> </TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD> </TD>
    <TD> </TD>
    <TD> </TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>Per Share Purchase Price:</TD>
    <TD>$
_____________________________</TD>
    <TD> </TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD> </TD>
    <TD> </TD>
    <TD> </TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>Aggregate Purchase Price:	</TD>
    <TD>$
_____________________________</TD>
    <TD> </TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0in"></P>

<P STYLE="font: 10pt/150% Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0in"> </P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 49%; padding: 0; text-indent: 0"><B><I>INDIVIDUAL INVESTOR:</I></B></TD>
    <TD STYLE="width: 2%; padding: 0; text-indent: 0"> </TD>
    <TD STYLE="width: 49%; padding: 0; text-indent: 0"><P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>PARTNERSHIP, CORPORATION, TRUST, LIMITED LIABILITY
COMPANY, CUSTODIAL ACCOUNT, OR OTHER INVESTOR:</I></B></P>



</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="padding: 0; text-indent: 0"> </TD>
    <TD STYLE="padding: 0; text-indent: 0"> </TD>
    <TD STYLE="padding: 0; text-indent: 0"> </TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="padding: 0; text-indent: 0">_______________________________________________</TD>
    <TD STYLE="padding: 0; text-indent: 0"> </TD>
    <TD STYLE="padding: 0; text-indent: 0">_______________________________________________</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="text-align: center; padding: 0; text-indent: 0">(print name)</TD>
    <TD STYLE="padding: 0; text-indent: 0"> </TD>
    <TD STYLE="text-align: center; padding: 0; text-indent: 0">(print name of entity)</TD></TR>
</TABLE>

<P STYLE="margin: 0"> </P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 49%; padding: 0; text-indent: 0">_______________________________________________</TD>
    <TD STYLE="width: 2%; padding: 0; text-indent: 0"> </TD>
    <TD STYLE="width: 3%; padding: 0; text-indent: 0">By:</TD>
    <TD STYLE="width: 46%; padding: 0; text-indent: 0">____________________________________________</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="text-align: center; padding: 0; text-indent: 0">(signature)</TD>
    <TD STYLE="padding: 0; text-indent: 0"> </TD>
    <TD STYLE="padding: 0; text-indent: 0"> </TD>
    <TD STYLE="padding: 0; text-indent: 0"><P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0">(signature of person signing on<BR>
behalf of entity)</P>


</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="padding: 0; text-indent: 0"> </TD>
    <TD STYLE="padding: 0; text-indent: 0"> </TD>
    <TD STYLE="padding: 0; text-indent: 0"> </TD>
    <TD STYLE="padding: 0; text-indent: 0"> </TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="padding: 0; text-indent: 0"> </TD>
    <TD STYLE="padding: 0; text-indent: 0"> </TD>
    <TD COLSPAN="2" STYLE="padding: 0; text-indent: 0">Name:_______________________________________</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="padding: 0; text-indent: 0"> </TD>
    <TD STYLE="padding: 0; text-indent: 0"> </TD>
    <TD STYLE="padding: 0; text-indent: 0"> </TD>
    <TD STYLE="padding: 0; text-indent: 0"> </TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="padding: 0; text-indent: 0"> </TD>
    <TD STYLE="padding: 0; text-indent: 0"> </TD>
    <TD COLSPAN="2" STYLE="padding: 0; text-indent: 0"><P STYLE="margin-top: 0; margin-bottom: 0">Title: _______________________________________</P>
                                                       <P STYLE="margin-top: 0; margin-bottom: 0"> </P></TD></TR>
</TABLE>

<P STYLE="font: 10pt/150% Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0"></P>



<P STYLE="margin: 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 10pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; width: 49%; text-indent: 0">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0in"><B><I><U>SSN/Tax I.D. No.</U>:</I>
        </B>_______________________</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><B><I> </I></B></P>
        <P STYLE="font: 10pt/150% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><B><I><U>Address for
        Notice</U>:</I></B></P>
        <P STYLE="font: 10pt/150% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">_______________________________________</P>
        <P STYLE="font: 10pt/150% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">_______________________________________</P>
        <P STYLE="font: 10pt/150% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">_______________________________________</P>
        <P STYLE="font: 10pt/150% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">Tel: ___________________________________</P>
        <P STYLE="font: 10pt/150% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">Fax: __________________________________</P>
        <P STYLE="font: 10pt/150% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">Email: _________________________________</P></TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0; width: 2%"> </TD>
    <TD STYLE="padding: 0; width: 49%; text-indent: 0">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0in"><B><I><U>Tax I.D. No.</U>:</I></B>___________________________</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><B><I> </I></B></P>
        <P STYLE="font: 10pt/150% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><B><I><U>Address for
        Notice</U>:</I></B></P>
        <P STYLE="font: 10pt/150% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">_______________________________________</P>
        <P STYLE="font: 10pt/150% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">_______________________________________</P>
        <P STYLE="font: 10pt/150% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">_______________________________________</P>
        <P STYLE="font: 10pt/150% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">Tel: __________________________________</P>
        <P STYLE="font: 10pt/150% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">Fax: __________________________________</P>
        <P STYLE="font: 10pt/150% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">Email:_________________________________</P></TD></TR>
</TABLE>



<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0">[<FONT STYLE="font: normal 10pt Times New Roman, Times, Serif"><I>Buyer Signature Page to Securities Purchase
Agreement</I>]</FONT></P>



<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 100%"> </TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><U>EXHIBITS</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"> </P>

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: middle">
    <TD STYLE="width: 15%; padding: 0; text-indent: 0">Exhibit A</td>
    <TD STYLE="width: 85%; padding: 0; text-indent: 0">Form of Registration Rights Agreement</td></tr>
<tr style="vertical-align: middle">
    <TD STYLE="padding: 0; text-indent: 0">Exhibit B</td>
    <TD STYLE="padding: 0; text-indent: 0">Form of Irrevocable Transfer Agent Instructions</td></tr>
<tr style="vertical-align: middle">
    <TD STYLE="padding: 0; text-indent: 0">Exhibit C</td>
    <TD STYLE="padding: 0; text-indent: 0">Form of Opinion of Company Counsel</td></tr>
<tr style="vertical-align: middle">
    <TD STYLE="padding: 0; text-indent: 0">Exhibit D</td>
    <TD STYLE="padding: 0; text-indent: 0">Form of Secretary's Certificate</td></tr>
<tr style="vertical-align: bottom">
    <TD STYLE="padding: 0; text-indent: 0">Exhibit E</td>
    <TD STYLE="padding: 0; text-indent: 0">Form of Officer's Certificate</td></tr>
</table>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"> </P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center; margin-left: 0"><U>SCHEDULES</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 10pt">
<tr style="vertical-align: middle">
    <TD STYLE="width: 15%; padding: 0; text-indent: 0">Schedule 3(a)</td>
    <TD STYLE="width: 85%; padding: 0; text-indent: 0">Subsidiaries</td></tr>
<tr style="vertical-align: middle">
    <TD STYLE="padding: 0; text-indent: 0">Schedule 3(k)</td>
    <TD STYLE="padding: 0; text-indent: 0">SEC Documents</td></tr>
<tr style="vertical-align: middle">
    <TD STYLE="padding: 0; text-indent: 0">Schedule 3(l)</td>
    <TD STYLE="padding: 0; text-indent: 0">Absence of Certain Changes</td></tr>
<tr style="vertical-align: middle">
    <TD STYLE="padding: 0; text-indent: 0">Schedule 3(n)</td>
    <TD STYLE="padding: 0; text-indent: 0">Regulatory Permits</td></tr>
<tr style="vertical-align: middle">
    <TD STYLE="padding: 0; text-indent: 0">Schedule 3(q)</td>
    <TD STYLE="padding: 0; text-indent: 0">Transactions with Affiliates</td></tr>
<tr style="vertical-align: middle">
    <TD STYLE="padding: 0; text-indent: 0">Schedule 3(r)</td>
    <TD STYLE="padding: 0; text-indent: 0">Equity Capitalization</td></tr>
<tr style="vertical-align: middle">
    <TD STYLE="padding: 0; text-indent: 0">Schedule 3(s)</td>
    <TD STYLE="padding: 0; text-indent: 0">Indebtedness and Other Contracts</td></tr>
<tr style="vertical-align: middle">
    <TD STYLE="padding: 0; text-indent: 0">Schedule 3(t)</td>
    <TD STYLE="padding: 0; text-indent: 0">Absence of Litigation</td></tr>
<tr style="vertical-align: middle">
    <TD STYLE="padding: 0; text-indent: 0">Schedule 3(aa)</td>
    <TD STYLE="padding: 0; text-indent: 0">Internal Accounting and Disclosure Controls</td></tr>
</table>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></p>