**EXHIBIT 4.24**

**PLACEMENT AGENCY AGREEMENT**

** **

March 12, 2012

 

Gottbetter Capital Markets, LLC

Mr. Julio A. Marquez, President

488 Madison Avenue

12th Floor

New York, New York 10022

 

**Re:      	EAGLEFORD ENERGY INC.**

 

Dear Mr. Marquez:

 

This Placement AgencyAgreement (“Agreement”) sets forth the terms upon which Gottbetter Capital Markets, LLC, a registered broker-dealerand member of the Financial Industry Regulatory Authority (“FINRA”), (hereinafter referred to as the “PlacementAgent” or “Markets”), shall be engaged by Eagleford Energy Inc., a publicly traded Ontario, Canada corporation,(hereinafter referred to as the “Company” or “EFRDF”), to act as a non**-**exclusive Placement Agentin connection with the private placement (the “Offering”) of units (“Units”) of securities of the Company.

 

The Offering will bemade by the Placement Agent and selected dealers and consist of Units of the Company, with each Unit consisting of (i) one (1)share of the Company’s Common Stock (the “Common Stock”) and (ii) a three (3) year warrant (each, an “InvestorWarrant” and collectively, the “Investor Warrants”) to purchase one half (1/2) of one (1) share of Common Stockat an exercise price of Fifty Cents ($0.50 USD) per full share (the “Investor Warrant Shares”). The Offering Pricefor the Units will be Twenty Five Cents ($0.25 USD) per Unit. The Offering will consist of a minimum of Two Hundred Fifty ThousandUnited States Dollars ($250,000 USD) through the sale of One Million (1,000,000) Units and a maximum of Two Million Five HundredThousand United States Dollars ($2,500,000 USD) through the sale of Ten Million (10,000,000) Units (the “Maximum Amount”).In the event the Maximum Offering Amount is sold, the Company and the Placement Agent shall have the right to place an additionalFour Million (4,000,000) Units for One Million United States Dollars ($1,000,000 USD) to cover the over-allotments (the “Over-allotmentOption”).

 

The Placement Agentshall accept subscriptions only from (i) persons or entities who qualify as “accredited investors,” as such term isdefined in Rule 501 of Regulation D (“Regulation D”) as promulgated by the United States Securities and Exchange Commission(the “SEC”) under Section 4(2) of the Securities Act of 1933, as amended (the “Act”) and (ii) persons orentities who are offered and purchase the Units in an Offshore Transaction (as such term is defined in Regulation S (“RegulationS”) as promulgated by the SEC under the Act) and who are not U.S. Persons (as such term is defined in Regulation S) and arenot acting for the account or benefit of a person in the United States or a U.S. Person. The Units will be offered until the earlierof the time that all Units offered in the Offering are sold or until May 31, 2012 (“Initial Offering Period”), whichdate may be extended by the Company and the Placement Agent in writing (this additional period and the Initial Offering Periodshall be referred to as the “Offering Period”). The date on which the Offering is terminated shall be referred to asthe “Termination Date.”

 

With respect to theOffering, the Company shall provide the Placement Agent, on terms set forth herein, the right to offer and sell all of the availableUnits being offered during the Offering Period (subject to prior sale of some of the Units). It is understood that no sale shallbe regarded as effective unless and until accepted by the Company. The Company may, in its sole discretion, accept or reject, inwhole or in part, any prospective investment in the Units or allot to any prospective subscriber less than the number of Unitsthat such subscriber desires to purchase. Purchases of Units may be made by the Placement Agent and its officers, directors, employeesand affiliates and by the officers, directors, employees and affiliates of the Company for the Offering.

 

 

The Offering will bemade by the Company pursuant to the Subscription Agreement and the Exhibits to the Subscription Agreement, including, but not limitedto, the Warrant, and any documents, agreements, supplements and additions thereto (“Subscription Documents”), whichat all times will be in form and substance reasonably acceptable to the Company and the Placement Agent and their respective counseland contain such legends and other information as the Company and the Placement Agent and their respective counsel, may, from timeto time, deem necessary and desirable to be set forth therein.

** **

**1.          	Appointmentof Placement Agent**. On the basis of the written and documented representations and warranties of the Company provided herein,and subject to the terms and conditions set forth herein, the Placement Agent is appointed as a non**-**exclusive PlacementAgent of the Company during the Offering Period to assist the Company in finding qualified subscribers for the Offering. The PlacementAgent may sell Units through other broker-dealers who are FINRA members and may reallow all or a portion of the Brokers’Fees (as defined in Section 3(a) below) it receives to such other broker-dealers or pay a finders or consultant fee as allowedby applicable law. On the basis of such representations and warranties and subject to such terms and conditions, the PlacementAgent hereby accepts such appointment and agrees to perform its services hereunder diligently and in good faith and in a professionaland businesslike manner and in compliance with applicable law and to use its best efforts to assist the Company in (A) findingsubscribers of Units who either (i) qualify as “accredited investors,” as such term is defined in Rule 501 of RegulationD, or (ii) are offered and purchase the Units outside the United States in an Offshore Transaction (as such term is defined inRegulation S) and who are not U.S. Persons (as such term is defined in Regulation S) and are not acting for the account or benefitof a person in the United States or a U.S. Person and (B) completing the Offering. The Placement Agent has no obligation to purchaseany of the Units. Unless sooner terminated in accordance with this Agreement, the engagement of the Placement Agent hereunder shallcontinue until the later of the Termination Date or the Final Closing (as defined below).

** **

**2.          **	**Representations,Warranties and Covenants**.

 

**A.	         Representations,Warranties and Covenants of the Company**. The representations and warranties of the Company contained in this Section 2A aretrue and correct as of the date of execution of this Agreement by the Company and the Company covenants as follows, as applicable.

 

(a) The SubscriptionDocuments have been and/or will be prepared by the Company, in conformity with all applicable laws, and in compliance with RegulationD, Regulation S and/or Section 4(2) of the Act and the requirements of all other rules and regulations (the “Regulations”)of the SEC relating to offerings of the type contemplated by the Offering, and the applicable securities laws and the rules andregulations of those jurisdictions wherein the Placement Agent notifies the Company that the Units are to be offered and sold excludingany foreign jurisdictions. The Units will be offered and sold pursuant to the registration exemption provided by Regulation D,Regulation S and/or Section 4(2) of the Act as a transaction not involving a public offering and the requirements of any otherapplicable state securities laws and the respective rules and regulations thereunder in those United States jurisdictions in whichthe Placement Agent notifies the Company that the Units are being offered for sale. None of the Company, its affiliates, or anyperson acting on its or their behalf (other than the Placement Agent, its affiliates or any person acting on its behalf, in respectof which no representation is made) has taken nor will it take any action that conflicts with the conditions and requirements of,or that would make unavailable with respect to the Offering, the exemption(s) from registration available pursuant to Rule 506of Regulation D, Rule 903 of Regulation S and/or Section 4(2) of the Act, or knows of any reason why any such exemption would beotherwise unavailable to it (including, without limitation, any Directed Selling Efforts (as such term is defined in RegulationS)). None of the Company, its predecessors or affiliates has been subject to any order, judgment or decree of any court of competentjurisdiction temporarily, preliminarily or permanently enjoining such person for failing to comply with Section 503 of RegulationD. The Company has not, for a period of six months prior to the commencement of the offering of Units, sold, offered for sale orsolicited any offer to buy any of its securities in a manner that would cause the exemption from registration set forth in Rule506 of Regulation D to become unavailable with respect to the offer and sale of the Units pursuant to this Agreement in the UnitedStates or to, by or for the benefit or account of, U.S. Persons, or would cause the exclusion from registration provided by Rule903 of Regulation S to become unavailable for offers and sales of the Units pursuant to this Agreement outside the United Statesto non-U.S. Persons.

 

 

(b) As to the Company,the Subscription Documents will not and do not include any untrue statement of a material fact or omit to state any material factrequired to be stated therein or necessary to make the statements therein, in light of the circumstances under which they weremade, not misleading: provided, however, the foregoing does not apply to any statements or omissions made solely in reliance onand in conformity with written information furnished to the Company by the Placement Agent specifically for use in the preparationthereof. To the knowledge of the Company, none of the statements, documents, certificates or other items made, prepared or suppliedby the Company with respect to the transactions contemplated hereby contains an untrue statement of a material fact or omits tostate a material fact necessary to make the statements contained therein not misleading in light of the circumstances in whichthey were made. There is no fact which the Company has not disclosed in the Subscription Documents or which is not disclosed inthe filings (the “SEC Filings”) that the Company makes with the US Securities and Exchange Commission (the “SEC”)and of which the Company is aware that materially adversely affects or that could reasonably be expected to have a material adverseeffect on the (i) assets, liabilities, results of operations, condition (financial or otherwise), business or business prospectsof the Company or (ii) ability of the Company to perform its obligations under this Agreement (“Company Material AdverseEffect”). Notwithstanding anything to the contrary herein, the Company makes no representation or warranty with respect toany estimates, projections and other forecasts and plans (including the reasonableness of the assumptions underlying such estimates,projections and other forecasts and plans) that may have been delivered to the Placement Agent or its representatives, except thatsuch estimates, projections and other forecasts and plans have been prepared in good faith on the basis of assumptions stated therein,which assumptions were believed to be reasonable at the time of such preparation.

 

(c) The Company isa corporation duly organized, validly existing and in good standing under the laws of Ontario, Canada and is qualified and in goodstanding as a foreign corporation in each jurisdiction in which the nature of the business conducted by the Company or the propertyowned or leased by the Company requires such qualification. The Company has all requisite corporate power and authority to conductits business as presently conducted and as proposed to be conducted (as described in the Subscription Documents and/or the SECFilings), has all the necessary and requisite documents and approvals from all state authorities, has all requisite corporate powerand authority to enter into and perform its obligations under this Agreement, the Subscription Agreement substantially in the formmade part of the Subscription Documents (the “Subscription Agreement”) and the other agreements contemplated hereby(this Agreement, Subscription Agreement and the other agreements contemplated hereby that the Company is required to execute anddeliver are collectively referred to herein as the “Company Transaction Documents”)****and subject to necessaryBoard and stockholder approvals, to issue, sell and deliver the Units, the shares of Common Stock underlying the Units, and theshares of Common Stock issuable upon exercise of the Warrants (the “Warrant Shares”) and to make the representationsin this Agreement accurate and not misleading. Prior to the First Closing, as defined herein, each of the Company Transaction Documentswill have been duly authorized. This Agreement has been duly authorized, executed and delivered and constitutes, and each of theother Company Transaction Documents, upon due execution and delivery, will constitute, valid and binding obligations of the Company,enforceable against the Company in accordance with their respective terms (i) except as enforceability may be limited by applicablebankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect related to laws affecting creditors’rights generally, including the effect of statutory and other laws regarding fraudulent conveyances and preferential transfers,and except that no representation is made herein regarding the enforceability of the Company’s obligations to provide indemnificationand contribution remedies under the securities laws and (ii) subject to the limitations imposed by general equitable principles(regardless of whether such enforceability is considered in a proceeding at law or in equity).

 

(d) None of the executionand delivery of or performance by the Company under this Agreement or any of the other Company Transaction Documents or the consummationof the transactions herein or therein contemplated conflicts with or violates, or will result in the creation or imposition of,any lien, charge or other encumbrance upon any of the assets of the Company under any agreement or other instrument to which theCompany is a party or by which the Company or its assets may be bound, or any term of the certificate of incorporation or by-lawsof the Company, or any license, permit, judgment, decree, order, statute, rule or regulation applicable to the Company or any ofits assets, except in the case of a conflict, violation, lien, charge or other encumbrance (except with respect to the Company’scertificate of incorporation or by-laws) which would not, or could not reasonably be expected to, have a Company Material AdverseEffect.

 

 

(e) The Company’sfinancial statements, together with the related notes, if any, included in the Company’s SEC Filings, present fairly, inall material respects, the financial position of the Company as of the dates specified and the results of operations for the periodscovered thereby. Such financial statements and related notes were prepared in accordance with Canadian generally accepted accountingprinciples applied on a consistent basis throughout the periods up to fiscal year ending August 31, 2011 and International FinancialReporting Standards (IFRS) thereafter including the first quarter ending November 30, 2011, except that the unaudited financialstatements omit full notes, and except for normal year end adjustments. During the period of engagement of the Company’sindependent certified public accountants, there have been no disagreements between the accounting firm and the Company on any mattersof accounting principles or practices, financial statement disclosure or auditing scope or procedures. The Company has made andkept books and records and accounts which are in reasonable detail and which fairly and accurately reflect the activities of theCompany in all material respects, subject only to year-end adjustments. Except as set forth in such financial statements or otherwisedisclosed in the Subscription Documents, the Company’s senior management has no knowledge of any material liabilities ofany kind, whether accrued, absolute or contingent, or otherwise, and subsequent to the date of the Subscription Documents and priorto the date of the First Closing it shall not enter into any material transactions or commitments without promptly thereafter notifyingthe Placement Agent in writing of any such material transaction or commitment. The other financial and statistical informationwith respect to the Company and any pro forma information and related notes included in the SEC Filings present fairly the informationshown therein on a basis consistent with the financial statements of the Company included in the SEC Filings. Except as disclosedin the Subscription Documents, the Company does not know of any facts, circumstances or conditions which could materially adverselyaffect its operations, earnings or prospects that have not been fully disclosed in the financial statements appearing in the SECFilings.

 

(f) Immediately priorto the First Closing, the shares of Common Stock underlying the Units and the Warrants will have been duly authorized and, whenissued and delivered against payment therefor as provided in the Company Transaction Documents, will be validly issued, fully paidand nonassessable. No holder of any of the shares of Common Stock underlying the Units, and the Warrants will be subject to personalliability solely by reason of being such a holder, and except as described in the Subscription Documents, none of the shares ofCommon Stock underlying the Units and the Warrants will be subject to preemptive or similar rights of any stockholder or securityholder of the Company or an adjustment under the antidilution or exercise rights of any holders of any outstanding shares of capitalstock, options, warrants or other rights to acquire any securities of the Company.

 

(g) Except as describedin the Subscription Documents and/or the Company’s SEC Filings, the Company has no subsidiaries and does not own any equityinterest and has not made any loans or advances to or guarantees of indebtedness to any person, corporation, partnership or otherentity. The conduct of business by the Company as presently and proposed to be conducted is not subject to continuing oversight,supervision, regulation or examination by any governmental official or body of the United States, or any other jurisdiction whereinthe Company conducts or proposes to conduct such business, except as described in the Company’s SEC Filings and except assuch regulation is applicable to foreign private issuers. The Company has obtained all material licenses, permits and other governmentalauthorizations necessary to conduct its business as presently conducted. The Company has not received any notice of any violationof, or noncompliance with, any federal, state, local or foreign laws, ordinances, regulations and orders (including, without limitation,those relating to environmental protection, occupational safety and health, securities laws, equal employment opportunity, consumerprotection, credit reporting, “truth-in-lending”, and warranties and trade practices) applicable to its business, theviolation of, or noncompliance with, would have a Company Material Adverse Effect, and the Company knows of no facts or set ofcircumstances which could give rise to such a notice.

 

(h) Except as describedin the Subscription Documents and/or the Company’s SEC Filings, no default by the Company or, to the knowledge of the Company,any other party, exists in the due performance under any material agreement to which the Company is a party or to which any ofits assets is subject (collectively, the “Company Agreements”). The Company Agreements, if any, disclosed in the SubscriptionDocuments and/or the Company’s SEC Filings are the only material agreements to which the Company is bound or by which itsassets are subject, are accurately described in the Subscription Documents and/or the Company’s SEC Filings and are in fullforce and effect in accordance with their respective terms, subject to any applicable bankruptcy, insolvency or other laws affectingthe rights of creditors generally and to general equitable principles and the availability of specific performance.

 

 

(i) Subsequent to therespective dates as of which information is given in the Subscription Documents, the Company has operated its business in the ordinarycourse and, except as may otherwise be set forth in the Subscription Documents or the Company’s SEC Filings, there has beenno: (i) Company Material Adverse Effect; (ii) material transaction otherwise than in the ordinary course of business consistentwith past practice; (iii) damage, loss or destruction, whether or not covered by insurance, with respect to any material assetor property of the Company; or (iv) agreement to permit any of the foregoing.

 

(j) Except as set forthin the Subscription Documents and/or the Company’s SEC Filings, there are no actions, suits, claims, hearings or proceedingspending before any court or governmental authority or, to the knowledge of the Company, threatened, against the Company, or involvingits assets or any of its officers or directors (in their capacity as such) which, if determined adversely to the Company or suchofficer or director, could reasonably be expected to have a Company Material Adverse Effect or adversely affect the transactionscontemplated by this Agreement or the enforceability hereof.

 

(k) The Company isnot: (i) in violation of its Certificate of Incorporation or By-laws; (ii) in default of any contract, indenture, mortgage, deedof trust, note, loan agreement, security agreement, lease, alliance agreement, joint venture agreement or other agreement, license,permit, consent, approval or instrument to which the Company is a party or by which it is or may be bound or to which any of itsassets may be subject, the default of which could reasonably be expected to have a Company Material Adverse Effect; (iii) in violationof any statute, rule or regulation applicable to the Company, the violation of which would have a Company Material Adverse Effect;or (iv) in violation of any judgment, decree or order of any court or governmental body having jurisdiction over the Company andspecifically naming the Company, which violation or violations individually, or in the aggregate, could reasonably be expectedto have a Company Material Adverse Effect.

 

(l) Except as disclosedin the Subscription Documents and/or the Company’s SEC Filings, as of the date of this Agreement, no current or former stockholder,director, officer or employee of the Company, nor, to the knowledge of the Company, any affiliate of any such person is presently,directly or indirectly through his/her affiliation with any other person or entity, a party to any loan from the Company or anyother transaction (other than as an employee) with the Company providing for the furnishing of services by, or rental of any personalproperty from, or otherwise requiring cash payments to any such person.

 

(m) The Company is not obligated to pay,and has not obligated the Placement Agent to pay, a finder’s or origination fee in connection with the Offering (other thanto the Placement Agent), and hereby agrees to indemnify the Placement Agent from any such claim made by any other person as morefully set forth in Section 8 hereof. The Company has not offered for sale or solicited offers to purchase the Units except fornegotiations with the designated Placement Agent(s). Except as set forth in the Subscription Documents, no other person has anyright to participate in any offer, sale or distribution of the Company’s securities to which the Placement Agent’srights, described herein, shall apply.

 

(n) Until the earlierof (i) the Termination Date or (ii) the Final Closing (as hereinafter defined), the Company will not issue any press release, grantany interview, or otherwise communicate with the media in any manner whatsoever with respect to the Offering without the PlacementAgent’s prior written consent, which consent will not unreasonably be withheld or delayed.

 

(o) No representationor warranty contained in Section 2A of this Agreement contains any untrue statement of a material fact or omits to state a materialfact necessary to make the statements herein not misleading in the context of such representations and warranties. The PlacementAgent shall be entitled to rely on such representations and warranties.

 

(p) No consent, authorizationor filing of or with any court or governmental authority is required in connection with the issuance or the consummation of thetransactions contemplated herein or in the other Company Transaction Documents, except for required filings with the SEC and theapplicable state securities commissions relating specifically to the Offering (all of which filings will be duly made by, or onbehalf of, the Company),and those which are required to be made after the First Closing (all of which will be duly made on a timelybasis).

 

 

(q) The Company acknowledgesthat Adam S. Gottbetter is the owner of Gottbetter Capital Group, Inc., Gottbetter & Partners,LLP and Gottbetter Capital Markets, LLC.  Gottbetter Capital Group owns shares of the Company.  Gottbetter& Partners, LLP is counsel to the company and has represented the company in the proposed transaction for which it willreceive legal fees in accordance with an executed retainer agreement.  Gottbetter Capital Markets, LLC is a placementagent for the private placement offering in the proposed****transaction for which it may receive placement agent fees in accordancewith an executed placement agent agreement.

 

(r) Neitherthe sale of the Units by the Company nor its use of the proceeds thereof will violate the Trading with the Enemy Act, as amended,nor any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended)or any enabling legislation or executive order relating thereto. Without limiting the foregoing, the Company is not (a) a personwhose property or interests in property are blocked pursuant to Section 1 of Executive Order 13224 of September 23, 2001 BlockingProperty and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001))or (b) a person who engages in any dealings or transactions, or be otherwise associated, with any such person. To the best of itsknowledge the Company and its subsidiaries, if any, are in compliance, in all material respects, with the USA Patriot Act of 2001(signed into law October 26, 2001).

 

	**2B.	          Representations, Warrantiesand Covenants of Placement Agent**. The Placement Agent hereby represents and warrants to the Company that the following representationsand warranties are true and correct as of the date of this Agreement:

 

(a) The Placement Agentis a limited liability company duly organized, validly existing and in good standing under the laws of the State of New York andhas all requisite corporate power and authority to enter into this Agreement and to carry out and perform its obligations underthe terms of this Agreement.

 

(b) This Agreementhas been duly authorized, executed and delivered by the Placement Agent, and upon due execution and delivery by the Company, thisAgreement will be a valid and binding agreement of the Placement Agent enforceable against it in accordance with its terms, exceptas may be limited by principles of public policy and, as to enforceability, subject to applicable bankruptcy, insolvency, reorganization,moratorium and similar laws relating to or affecting creditor’s rights from time to time in effect and subject to generalequity principles.

 

(c) The Placement Agentis a member of FINRA and is registered as a broker-dealer under the Exchange Act (as defined below), and under the securities actsof each state into which it is making offers or sales of the Units. None of the Placement Agent or its affiliates, or any personacting on behalf of the foregoing (other than the Company, its or their affiliates or any person acting on its or their behalf,in respect of which no representation is made) has taken nor will it take any action that conflicts with the conditions and requirementsof, or that would make unavailable with respect to the Offering, the exemption(s) from registration available pursuant to Rule506 of Regulation D, Rule 903 of Regulation S or Section 4(2) of the Act, or knows of any reason why any such exemption would beotherwise unavailable to it. The Placement Agent will conduct the Offering in compliance with all applicable securities laws.

 

(d) None of the PlacementAgent or its affiliates, or any person acting on behalf of the foregoing, has engaged or will engage in any Directed Selling Efforts(as such term is defined in Regulation S).

 

(e) Any offer or solicitationof an offer to buy Units made by the Placement Agent or its affiliates, or any person acting on behalf of the foregoing, in relianceon Rule 903 of Regulation S and in reliance upon similar exemptions from registration available under applicable state securitieslaws, will be made outside of the United States exclusively to persons or entities that are, and will be at the time of the deliveryof the Units, not a U.S. Person (as such term is defined in Regulation S) and were, and are at the time of the delivery of theUnits, not acting for the account or benefit of a person in the United States or a U.S. Person.

 

  

(f)   Adam S. Gottbetteris the owner of Gottbetter Capital Group, Inc., Gottbetter & Partners, LLP and Gottbetter Capital Markets, LLC. Gottbetter Capital Group owns shares of the Company.  Gottbetter & Partners, LLP is counsel to the companyand has represented the company in the proposed transaction for which it will receive legal fees in accordance with an executed retaineragreement.  Gottbetter Capital Markets, LLC is a placement agent for the private placement offering in the proposed****transactionfor which it may receive placement agent fees in accordance with an executed placement agent agreement.

 

**3.          PlacementAgent Compensation**.

 

(a)   In connection withthe Offering, the Company will pay a cash fee (the “Agent Cash Fee”) to the Placement Agent at each Closing equal toEight Percent (8%) of the gross sales price from the sale of the Units. Additionally, the Company will deliver to the PlacementAgent warrants exercisable for a period of three (3) years from the Closing Date, to purchase a number of shares of Common Stockequaling Eight Percent (8%) of the number of Units sold with an exercise price per share of $0.25 (“Broker Warrants) (“AgentCash Fee” and “Broker Warrants” are sometimes referred to collectively as “Brokers’ Fees”).

 

(b)   The Company shallalso pay to the Placement Agent the Brokers’ Fees calculated according to the percentages set forth in Sections 3(a) of thisAgreement, if any person or entity initially contacted by the Placement Agent concerning the Company invests in the Company (the“Post-Closing Investors”) at any time prior to the date that is twelve (12) months after the Termination Date or theFinal Closing, whichever is applicable, regardless of whether such Post-Closing Investor purchased Units in the Offering.

 

(c)   To the extent thereis more than one Closing, payment of the proportional amount of the Brokers’ Fees will be made out of the proceeds of subscriptionsfor the Units sold at each Closing.

** **

**4.          Subscriptionand Closing Procedures**.

 

(a)   The Company shallcause to be delivered to the Placement Agent copies of the Subscription Documents and has consented, and hereby consents, to theuse of such copies for the purposes permitted by the Act and applicable securities laws and in accordance with the terms and conditionsof this Agreement, and hereby authorizes the Placement Agent and its agents and employees to use the Subscription Documents inconnection with the sale of the Units until the earlier of (i) the Termination Date or (ii) the Final Closing, and no person orentity is or will be authorized to give any information or make any representations other than those contained in the SubscriptionDocuments or to use any offering materials other than those contained in the Subscription Documents in connection with the saleof the Units, unless the Company first provides the Placement Agent with notification of such information, representations or offeringmaterials.

 

(b)   The Company shallmake available to the Placement Agent and its representatives such information, including, but not limited to, financial information,and other information regarding the Company (the “Information”), as may be reasonably requested in making a reasonableinvestigation of the Company and its affairs. The Company shall provide access to the officers, directors, employees, independentaccountants, legal counsel and other advisors and consultants of the Company as shall be reasonably requested by the PlacementAgent. The Company recognizes and agrees that the Placement Agent (i) will use and rely primarily on the Information and generallyavailable information from recognized public sources in performing the services contemplated by this Agreement without independentlyverifying the Information or such other information, (ii) does not assume responsibility for the accuracy of the Information orsuch other information, and (iii) will not make an appraisal of any assets or liabilities owned or controlled by the Company orits market competitors.

 

(c)   Each prospectivepurchaser will be required to complete and execute the Subscription Documents, Anti-Money Laundering Form and other documents (the“Subscription Documents”) which will be forwarded or delivered to the Placement Agent at the Placement Agent’soffices at the address set forth in Section 12 hereof.

 

(d)   Simultaneouslywith the delivery to the Placement Agent of the Subscription Documents, the subscriber’s check or other good funds will beforwarded directly by the subscriber to the escrow agent and deposited into a non interest bearing escrow account (the “EscrowAccount”) established for such purpose (the “Escrow Agent”). All such funds for subscriptions will be held inthe Escrow Account pursuant to the terms of an escrow agreement among the Company, the Placement Agent and the Escrow Agent.****The Company will pay all fees related to the establishment and maintenance of the Escrow Account. Subject to the receipt ofsubscriptions for the amount for Closing, the Company will either accept or reject, for any or no reason, the Subscription Documentsin a timely fashion and at each Closing will countersign the Subscription Documents and provide duplicate copies of such documentsto the Placement Agent for distribution to the subscribers. The acceptance of any Subscription Documents will be subject to thereasonable approval of the Company. The Company will give notice to the Placement Agent of its acceptance of each subscription.The Company, or the Placement Agent on the Company’s behalf, will promptly return to subscribers incomplete, improperly completed,improperly executed and rejected subscriptions and give written notice thereof to the Placement Agent upon such return.

 

 

(e)   If subscriptionsfor a Closing have been accepted prior to the Termination Date, the funds therefor have been collected by the Escrow Agent andall of the conditions set forth elsewhere in this Agreement are fulfilled, a closing shall be held promptly with respect to Unitssold (the “First Closing”). Thereafter, the remaining Units will continue to be offered and sold until the TerminationDate. Additional closings (“Closings”) may from time to time be conducted at times mutually agreed to between the PlacementAgent and the Company with respect to additional Units sold, with the final closing (“Final Closing”) to occur within10 days after the earlier of the Termination Date and the date on which the Maximum Amount has been subscribed for. Delivery ofpayment for the accepted subscriptions for Units from the funds held in the Escrow Account will be made at each Closing at thePlacement Agent’s offices against delivery of the Units by the Company at the address set forth in Section 12 hereof(or at such other place as may be mutually agreed upon between the Company and the Placement Agent), net of amounts due to thePlacement Agent and its Blue Sky counsel as of such Closing. Executed certificates for the shares of Common Stock and InvestorWarrants constituting the Units and the Brokers’ Warrants will be in such authorized denominations and registered in suchnames as the Placement Agent may request on or before the date of each Closing (“Closing Date”). The certificates willbe forwarded to the subscriber directly by the transfer agent or the Company’s designated agent at each Closing. The Companywill issue the certificates for the Common Stock, Investor Warrants and Brokers’ Warrants within twenty (20) days of eachClosing.

 

(f)   If SubscriptionDocuments for the Minimum Amount for Closing have not been received and accepted by the Company on or before the Termination Datefor any reason, the Offering will be terminated, no Units will be sold, and the Escrow Agent will, at the request of the PlacementAgent, cause all monies received from subscribers for the Units to be promptly returned to such subscribers without interest, penalty,expense or deduction.

 

**5.          FurtherCovenants**.

 

The Company herebycovenants and agrees that:

 

(a)   Except upon priorwritten notice to the Placement Agent, the Company shall not, at any time prior to the Final Closing, knowingly take any actionwhich would cause any of the representations and warranties made by it in this Agreement not to be complete and correct in allmaterial respects on and as of each Closing Date with the same force and effect as if such representations and warranties had beenmade on and as of each such date (except to the extent any representation or warranty relates to an earlier date).

 

(b)   If, at any timeprior to the Final Closing, any event shall occur that causes a Company Material Adverse Effect which as a result it becomes necessaryto amend or supplement the Subscription Documents so that the representations and warranties herein remain true and correct inall material respects, or in case it shall be necessary to amend or supplement the Subscription Documents to comply with RegulationD or any other applicable securities laws or regulations, the Company will promptly notify the Placement Agent and shall, at itssole cost, prepare and furnish to the Placement Agent copies of appropriate amendments and/or supplements in such quantities asthe Placement Agent may reasonably request. The Company will not at any time before the Final Closing prepare or use any amendmentor supplement to the Subscription Documents of which the Placement Agent will not previously have been advised and furnished witha copy, or which is not in compliance in all material respects with the Act and other applicable securities laws. As soon as theCompany is advised thereof, the Company will advise the Placement Agent and its counsel, and confirm the advice in writing, ofany order preventing or suspending the use of the Subscription Documents, or the suspension of any exemption for such qualificationor registration thereof for offering in any jurisdiction, or of the institution or threatened institution of any proceedings forany of such purposes, and the Company will use their best efforts to prevent the issuance of any such order and, if issued, toobtain as soon as reasonably possible the lifting thereof.

 

 

(c)   The Company shallcomply with the Act, the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulationsthereunder, all applicable state securities laws and the rules and regulations thereunder in the states in which Placement Agent’sBlue Sky counsel has advised the Placement Agent and/or the Company that the Units are qualified or registered for sale or exemptfrom such qualification or registration, so as to permit the continuance of the sales of the Units, and will file or cause to befiled with the SEC, and shall promptly thereafter forward or cause to be forwarded to the Placement Agent, any and all reportson Form D as are required. The Company will pay the attorney’s fee and out of pocket expenses related to the filings forregistrations of sale or exemption from such qualifications with any state securities commissions and any other regulatory agencies.Such fees will be paid at the time of invoicing, or at the time of Closing, if known, and if not yet invoiced, funds will remainin escrow to cover the estimated invoice.

 

(d)   The Company shalluse best efforts to qualify the Units for sale under the securities laws of such jurisdictions in the United States as may be mutuallyagreed to by the Company and the Placement Agent, and the Company will make or cause to be made such applications and furnish informationas may be required for such purposes, provided that the Company will not be required to qualify as a foreign corporation in anyjurisdiction or execute a general consent to service of process. The Company will, from time to time, prepare and file such statementsand reports as are or may be required to continue such qualifications in effect for so long a period as the Placement Agent mayreasonably request with respect to the Offering.

 

(e)   The Company shallplace a legend on the certificates representing the Shares and the Warrants that the securities evidenced thereby have not beenregistered under the Act or applicable state securities laws, setting forth or referring to the applicable restrictions on transferabilityand sale of such securities under the Act and applicable state laws.

 

(f)   The Company shallapply the net proceeds from the sale of the Units for the purposes substantially as described under the “Use of Proceeds”section of the Subscription Documents. Except as set forth in the Subscription Documents, the Company shall not use any of thenet proceeds of the Offering to repay indebtedness to officers (other than accrued salaries incurred in the ordinary course ofbusiness), or directors of the Company without the prior written consent of the Placement Agent.

 

(g)   During the OfferingPeriod, the Company shall afford each prospective purchaser of Units the opportunity to ask questions of and receive answers froman officer of the Company concerning the terms and conditions of the Offering and the opportunity to obtain such other additionalinformation necessary to verify the accuracy of the Subscription Documents to the extent the Company possesses such informationor can acquire it without unreasonable expense.

 

(h)   Except with theprior written consent of the Placement Agent, which will not be unreasonably withheld, and excluding disclosures made as of thedate of the execution of this Agreement, the Company shall not, at any time prior to the earlier of the Final Closing or the TerminationDate, except as contemplated by the Subscription Documents (i) engage in or commit to engage in any transaction outside the ordinarycourse of business as described in the Subscription Documents, (ii) issue, agree to issue or set aside for issuance any securities(debt or equity) or any rights to acquire any such securities, (iii) incur, outside the ordinary course of business, any materialindebtedness, (iv) dispose of any material assets, (v) make any material acquisition or (vi) change its business or operationsin any material respect.

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(i)   The Company shallpay all reasonable expenses incurred in connection with the preparation and printing of all necessary offering documents and instrumentsrelated to the Offering and the issuance of the Shares and the Warrants and will also pay for the Company’s expenses foraccounting fees, legal fees, printing costs, and other costs involved with the Offering. The Company will provide at its own expensesuch quantities of the Subscription Documents and other documents and instruments relating to the Offering as the Placement Agentmay reasonably request. The Company will pay at its own expense in connection with the creation, authorization, issuance, transferand delivery of the Units, including, without limitation, fees and expenses of any transfer agent or registrar; the fees and expensesof the Escrow Agent; all fees and expenses of legal, accounting and other advisers to the Company; the registration or qualificationof the Units for offer and sale under the securities or Blue Sky laws of such jurisdictions, payable within five (5) days of beinginvoiced; and at the First Closing, or, if there is no Closing, within ten (10) days after written request therefore followingthe Termination Date, legal fees up to $25,000 and expenses of the Placement Agent’s counsel, and provided that such limitationshall in no way affect the obligations of the Company with respect to indemnification and contribution as set forth in Sections8 and 9 herein.

 

 

**6.            Conditionsof Placement Agent’s Obligations**.

 

The obligations ofthe Placement Agent hereunder to affect a Closing are subject to the fulfillment, at or before each Closing, of the following additionalconditions:

 

(a)   Each of the representationsand warranties made by the Company qualified as to materiality shall be true and correct on each Closing Date, except to the extentany such representation or warranty expressly speaks as of an earlier date, in which case such representation or warranty shallbe true and correct as of such earlier date, and the representations and warranties made by the Company not qualified as to materialityshall be true and correct in all material respects on each Closing Date, except to the extent any such representation or warrantyexpressly speaks as of an earlier date, in which case such representation or warranty shall be true and correct in all materialrespects as of such earlier date.

 

(b)   The Company shallhave performed and complied in all material respects with all agreements, covenants and conditions required to be performed, andcomplied with by it at or before the Closing.

 

(c)   The SubscriptionDocuments do not, and as of the date of any amendment or supplement thereto will not, include any untrue statement of a materialfact or omit to state any material fact necessary in order to make the statements therein, in light of the circumstances underwhich they were made, not misleading.

 

(d)   No order suspendingthe use of the Subscription Documents or enjoining the Offering or sale of the Units shall have been issued, and no proceedingsfor that purpose or a similar purpose shall have been initiated or pending, or, to the best of the Company’s knowledge, becontemplated or threatened.

 

(e)   The Placement Agentshall have received a certificate of the Chief Executive Officer of the Company, dated as of the Closing Date, certifying, as tothe fulfillment of the conditions set forth in subparagraphs (a), (b), (c) and (d) above.

 

(f)   The Company shallhave delivered to the Placement Agent: (i) a good standing certificate dated as of a date within 10 days prior to the Closing Datefrom the secretary of state of its jurisdiction of incorporation and (ii) resolutions of the Company’s Board of Directorsapproving this Agreement and the transactions and agreements contemplated by this Agreement, and the Subscription Documents, allas certified by the Chief Executive Officer of the Company.

 

(g)   At each Closing,the Company shall pay and/or issue to the Placement Agent the Brokers’ Fees earned in such Closing.

 

(h)   All proceedingstaken at or prior to the Closing in connection with the authorization, issuance and sale of the Shares and the Warrants will bereasonably satisfactory in form and substance to the Placement Agent and its counsel, and such counsel shall have been furnishedwith all such documents, certificates and opinions as it may reasonably request upon reasonable prior notice in connection withthe transactions contemplated hereby.

 

**7.            Conditionsof the Company’s Obligations**.

 

The obligations ofthe Company hereunder are subject to the satisfaction of each of the following conditions:

 

 

 

7A. Mutual Condition.The obligations of the Placement Agent and the Company hereunder are subject to the execution by each investor of a SubscriptionAgreement in form and substance acceptable to the Placement Agent and the Company and deposit by such investor with the escrowagent of all funds required to be so deposited by such investor.

 

**8.          Indemnification**.

 

(a)   The Company will:(i) indemnify and hold harmless the Placement Agent, its agents and their respective officers, directors, employees, selected dealersand each person, if any, who controls the Placement Agent within the meaning of the Act and such agents (each an “Indemnitee”or a “Placement Agent Party”) against, and pay or reimburse each Indemnitee for, any and all losses, claims, damages,liabilities or expenses whatsoever (or actions or proceedings or investigations in respect thereof), severally (which will, forall purposes of this Agreement, include, but not be limited to, all reasonable costs of defense and investigation and all reasonableattorneys’ fees, including appeals), to which any Indemnitee may become subject (a) under the Act or otherwise, in connectionwith the offer and sale of the Units and (b) as a result of the breach of any representation, warranty or covenant made by theCompany herein, regardless of whether such losses, claims, damages, liabilities or expenses shall result from any claim by anyIndemnitee or by any third party; and (ii) reimburse each Indemnitee for any legal or other expenses reasonably incurred in connectionwith investigating or defending against any such loss, claim, action, proceeding or investigation; provided, however, the Companywill not be liable in any such case to the extent that any such claim, damage or liability is finally judicially determined tohave resulted from (A) an untrue statement or alleged untrue statement of a material fact made in the Subscription Documents, oran omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statementstherein not misleading, made solely in reliance upon and in conformity with written information furnished to the Company by thePlacement Agent specifically for use in the Subscription Documents or (B) any violations by the Placement Agent of the Act or statesecurities laws which does not result from a violation thereof by the Company or any of their respective affiliates or (C) dueto the intentional or negligent misrepresentation and / or malfeasance of the Placement Agent. In addition to the foregoing agreementto indemnify and reimburse, the Company will indemnify and hold harmless each Indemnitee against any and all losses, claims, damages,liabilities or expenses whatsoever (or actions or proceedings or investigations in respect thereof), joint or several (which shall,for all purposes of this Agreement, include, but not be limited to, all reasonable costs of defense and investigation and all reasonableattorneys’ fees, including appeals) to which any Indemnitee may become subject insofar as such costs, expenses, losses, claims,damages or liabilities arise out of or are based upon the claim of any person or entity that he or it is entitled to broker’sor finder’s fees from any Indemnitee in connection with the Offering as a result of the Company obligating itself or anyIndemnitee to pay such a fee, other than fees due to the Placement Agent, its dealers, sub-agents or finders. The foregoing indemnityagreements will be in addition to any liability the Company may otherwise have.

 

(b)   The Placement Agentwill indemnify and hold harmless the Company, its subsidiaries, and their respective officers, directors, and each person, if any,who controls such entity within the meaning of the Act (collectively, the “Company Indemnitees”) against, and pay orreimburse any such person for, any and all losses, claims, damages, liabilities or expenses whatsoever (or actions, proceedingsor investigations in respect thereof) to which the Company or any such person may become subject under the Act or otherwise, whethersuch losses, claims, damages, liabilities or expenses shall result from any claim of the Company or any such person who controlsthe Company within the meaning of the Act or by any third party, but only to the extent that such losses, claims, damages or liabilitiesare based upon any violations by the Placement Agent of the Act or state securities laws which does not result from a violationthereof by the Company or any of their respective affiliates, any untrue statement or alleged untrue statement of any materialfact contained in the Subscription Documents made in reliance upon and in conformity with information contained in the SubscriptionDocuments relating to the Placement Agent, or an omission or alleged omission to state therein a material fact required to be statedtherein or necessary to make the statements therein not misleading, in either case, if made or omitted in reliance upon and inconformity with written information furnished to the Company by the Placement Agent, specifically for use in the preparation thereofor due to the intentional or negligent misrepresentation and / or malfeasance of the Placement Agent. The Placement Agent willreimburse the Company or any such person for any legal or other expenses reasonably incurred in connection with investigating ordefending against any such loss, claim, damage, liability or action, proceeding or investigation to which such indemnity obligationapplies. In addition to the foregoing agreement to indemnify and reimburse, the Placement Agent will indemnify and hold harmlesseach Company Indemnitee against any and all losses, claims, damages, liabilities or expenses whatsoever (or actions or proceedingsor investigations in respect thereof), joint or several (which shall, for all purposes of this Agreement, include, but not be limitedto, all reasonable costs of defense and investigation and all reasonable attorneys’ fees, including appeals) to which anyCompany Indemnitee may become subject insofar as such costs, expenses, losses, claims, damages or liabilities arise out of or arebased upon the claim of any person or entity that he or it is entitled to broker’s or finder’s fees from any CompanyIndemnitee in connection with the Offering as a result of the Placement Agent obligating itself or any Company Indemnitee to paysuch a fee. The foregoing indemnity agreements are in addition to any liability which the Placement Agent may otherwise have.

 

 

(c)   Promptly afterreceipt by an indemnified party under this Section 8 of notice of the commencement of any action, claim, proceeding or investigation(the “Action”), such indemnified party, if a claim in respect thereof is to be made against the indemnifying partyunder this Section 8, will notify the indemnifying party of the commencement thereof, but the omission to so notify the indemnifyingparty will not relieve it from any liability that it may have to any indemnified party under this Section 8 unless the indemnifyingparty has been substantially prejudiced by such omission. The indemnifying party will be entitled to participate in and, to theextent that it may wish, jointly with any other indemnifying party, to assume the defense thereof subject to the provisions hereinstated, with counsel reasonably satisfactory to such indemnified party. The indemnified party will have the right to employ separatecounsel in any such Action and to participate in the defense thereof, but the fees and expenses of such counsel will not be atthe expense of the indemnifying party if the indemnifying party has assumed the defense of the Action with counsel reasonably satisfactoryto the indemnified party, provided, however, that if the indemnified party shall be requested by the indemnifying party to participatein the defense thereof or shall have concluded in good faith and specifically notified the indemnifying party either that theremay be specific defenses available to it that are different from or additional to those available to the indemnifying party orthat such Action involves or could have a material adverse effect upon it with respect to matters beyond the scope of the indemnityagreements contained in this Agreement, then the counsel representing it, to the extent made necessary by such defenses, shallhave the right to direct such defenses of such Action on its behalf and in such case the reasonable fees and expenses of such counselin connection with any such participation or defenses shall be paid by the indemnifying party. No settlement of any Action againstan indemnified party will be made without the consent of the indemnifying party and the indemnified party, which consent shallnot be unreasonably withheld or delayed in light of all factors of importance to such party, and no indemnifying party shall beliable to indemnify any person for any settlement of any such claim effected without such indemnifying party’s consent.

 

**9.          Contribution**.

 

To provide for justand equitable contribution, if: (i) an indemnified party makes a claim for indemnification pursuant to Section 8 hereof and itis finally determined, by a judgment, order or decree not subject to further appeal that such claims for indemnification may notbe enforced, even though this Agreement expressly provides for indemnification in such case; or (ii) any indemnified or indemnifyingparty seeks contribution under the Act, the Exchange Act, or otherwise, then each indemnifying party shall contribute to such amountpaid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative benefits but alsothe relative fault of the Company on the one hand and the Placement Agent on the other in connection with the statements or omissionswhich resulted in such losses, claims, damages, liabilities or expenses (or actions in respect thereof), as well as any other relevantequitable considerations. The relative benefits received by the Company on the one hand and the Placement Agent on the other shallbe deemed to be in the same proportion as the total net proceeds from the Offering (before deducting expenses) received by theCompany bear to the total Brokers’ Fees received by the Placement Agent. The relative fault, in the case of an untrue statement,alleged untrue statement, omission or alleged omission will be determined by, among other things, whether such statement, allegedstatement, omission or alleged omission relates to information supplied by the Company or by the Placement Agent, and the parties’relative intent, knowledge, access to information and opportunity to correct or prevent such statement, alleged statement, omissionor alleged omission. The Company and the Placement Agent agree that it would be unjust and inequitable if the respective obligationsof the Company and the Placement Agent for contribution were determined by pro rata allocation of the aggregate losses, liabilities,claims, damages and expenses or by any other method or allocation that does not reflect the equitable considerations referred toin this Section 9. No person guilty of a fraudulent misrepresentation (within the meaning of Section 10(f) of the Act) will beentitled to contribution from any person who is not guilty of such fraudulent misrepresentation. For purposes of this Section 9,each person, if any, who controls the Placement Agent within the meaning of the Act will have the same rights to contribution asthe Placement Agent, and each person, if any, who controls the Company within the meaning of the Act will have the same rightsto contribution as the Company, subject in each case to the provisions of this Section 9. Anything in this Section 9 to the contrarynotwithstanding, no party will be liable for contribution with respect to the settlement of any claim or action effected withoutits written consent. This Section 9 is intended to supersede, to the extent permitted by law, any right to contribution under theAct, the Exchange Act or otherwise available.

 

 

**10.         Termination**.

 

(a)   The Offering maybe terminated by the Placement Agent at any time prior to the expiration of the Offering Period in the event that: (i) any of therepresentations, warranties or covenants of the Company contained herein or in the Subscription Documents shall prove to have beenfalse or misleading in any material respect when actually made; (ii) the Company shall have failed to perform any of its materialobligations hereunder or under any other Company Transaction Document or any other transaction document; (iii) there shall occurany event, within the control of the Company that is reasonably likely to materially and adversely affect the transactions contemplatedhereunder or the ability of the Company to perform hereunder; or (iv) the Placement Agent determines that it is reasonably likelythat any of the conditions to Closing to be fulfilled by the Company set forth herein will not, or cannot, be satisfied.

 

(b)   The Offering maybe terminated by the Company at any time prior to the expiration of the Offering Period (i) in the event that the Placement Agentshall have failed to perform any of its material obligations hereunder, or (ii) on account of the Placement Agent’s fraud,illegal or willful misconduct or gross negligence or (iii) a material breach of this Agreement by the Placement Agent. In the eventof any such termination by the Company, the Placement Agent shall not be entitled to any amounts whatsoever except (i) as may bedue under any indemnity or contribution obligation provided herein or in any other Company Transaction Document, at law or otherwiseand (ii) it shall retain any Brokers’ Fees received for Closings that occurred prior to the Termination Date.

 

(c)   This Offering maybe terminated upon mutual agreement of the Company and the Placement Agent at any time prior to the expiration of the OfferingPeriod.

 

(d)   Before any terminationby the Placement Agent under Section 10(a) or by the Company under Section 10(b) shall become effective, the terminating partyshall give five (5) days prior written notice to the other party of its intention to terminate the Offering (the “TerminationNotice”). The Termination Notice shall specify the grounds for the proposed termination. If the specified grounds for termination,or their resulting adverse effect on the transactions contemplated hereby, are curable, then the other party shall have three (3)days from the Termination Notice within which to remove such grounds or to eliminate all of their material adverse effects on thetransactions contemplated hereby; otherwise, the Offering shall terminate.

 

(e)   Upon any terminationpursuant to this Section 10, the Placement Agent and the Company will instruct the Escrow Agent to cause all monies received withrespect to the subscriptions for Units not accepted by the Company to be promptly returned to such subscribers without interest,penalty or deduction.

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**11.         Survival**.

 

(a)   The obligationsof the parties to pay any costs and expenses hereunder and to provide indemnification and contribution as provided herein shallsurvive any termination hereunder. In addition, the provisions of Sections 3, and 10 through 17 shall survive the sale of the Unitsor any termination of the Offering hereunder.

 

(b)   The respectiveindemnities, covenants, representations, warranties and other statements of the Company and the Placement Agent set forth in ormade pursuant to this Agreement will remain in full force and effect, regardless of any investigation made by or on behalf of,and regardless of any access to information by the Company or the Placement Agent, or any of their officers or directors or anycontrolling person thereof, and will survive the sale of the Units or any termination of the Offering hereunder. Notwithstandingthe foregoing, if either party effects a Closing with knowledge that one or more of the other party’s representations andwarranties has become untrue or inaccurate in any material respect or that such other party has failed to comply or satisfy inany material respect a covenant, condition or agreement of it or them, the party so effecting the Closing shall be deemed to havewaived any claim based on the breach of such inaccurate representation and warranty or the failure to have complied with the specificcovenant or condition.

 

 

**12.         Notices**.

 

All communicationshereunder will be in writing and, except as otherwise expressly provided herein or after notice by one party to the other of achange of address, if sent to the Placement Agent, will be mailed, sent by overnight courier or telefaxed and confirmed to GottbetterCapital Markets, LLC 488 Madison Avenue, 12th Floor, New York, New York 10022, Attention: Mr. Julio A. Marquez, President, telefaxnumber (212) 400-6999, with a copy to: Law Offices of Barbara J. Glenns, Esq. 30 Waterside Plaza, Suite 25G, New York, New York10010, Attn: Barbara J. Glenns, Esq., telefax number (212) 689-6578, if sent to Eagleford Energy Inc. will be mailed, sent by overnightcourier, or certified mail, return receipt requested and confirmed to Eagleford Energy Inc., 1 King Street West, Suite 1505, Toronto,Ontario, Canada M5H 1A1, Attn: James Cassina, President telefax number (416) 364-8244 with a copy to: Gottbetter & Partners,LLP 488 Madison Avenue, 12th Floor, New York, NY 10022 telefax: 212-400-6901 Attn: Scott Rapfogel, Esq.

 

**13.         GoverningLaw, Jurisdiction**.

 

This Agreement shallbe deemed to have been made and delivered in New York City and shall be governed as to validity, interpretation, construction,effect and in all other respects by the internal laws of the State of New York without regard to principles of conflicts of lawthereof.

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**THEPARTIES HERETO AGREE TO SUBMIT ALL CONTROVERSIES TO the exclusive jurisdiction of finra ARBITRATION IN ACCORDANCE WITH THE PROVISIONSSET FORTH BELOW AND UNDERSTAND THAT (A) ARBITRATION IS FINAL AND BINDING ON THE PARTIES, (B) THE PARTIES ARE WAIVING THEIR RIGHTSTO SEEK REMEDIES IN COURT, INCLUDING THE RIGHT TO A JURY TRIAL, (C) PRE-ARBITRATION DISCOVERY IS GENERALLY MORE LIMITED AND DIFFERENTFROM COURT PROCEEDINGS, (D) THE ARBITRATOR’S AWARD IS NOT REQUIRED TO INCLUDE FACTUAL FINDINGS OR LEGAL REASONING AND ANYPARTY’S RIGHT TO APPEAL OR TO SEEK MODIFICATION OF RULES BY ARBITRATORS IS STRICTLY LIMITED, (E) THE PANEL OF THE FINANCIALINDUSTRY REGULATORY AUTHORITY, INC. (“FINRA”) ARBITRATORS WILL TYPICALLY INCLUDE A MINORITY OF ARBITRATORS WHOWERE OR ARE AFFILIATED WITH THE SECURITIES INDUSTRY, AND (F) ALL CONTROVERSIES WHICH MAY ARISE BETWEEN THE PARTIES CONCERNING THISAGREEMENT SHALL BE DETERMINED BY ARBITRATION PURSUANT TO THE RULES THEN PERTAINING TO FINRA. ALL QUESTIONS CONCERNING THE CONSTRUCTION,VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THELAWS OF THE STATE OF NEw york. JUDGMENT ON ANY AWARD OF ANY SUCH ARBITRATION MAY BE ENTERED IN THE SUPREME COURT OF THE STATE OFNEW YORK OR IN ANY OTHER COURT HAVING JURISDICTION OVER THE PERSON OR PERSONS AGAINST WHOM SUCH AWARD IS RENDERED. THE PARTIESAGREE THAT THE DETERMINATION OF THE ARBITRATORS SHALL BE BINDING AND CONCLUSIVE UPON THEM. THE PREVAILING PARTY, AS DETERMINEDBY SUCH ARBITRATORS, IN A LEGAL PROCEEDING SHALL BE ENTITLED TO COLLECT ANY COSTS, DISBURSEMENTS AND REASONABLE ATTORNEY’SFEES FROM THE OTHER PARTY.********PRIOR TO FILING AN ARBITRATION, THE PARTIES HEREBY AGREE THAT THEY WILL ATTEMPTTO RESOLVE THEIR DIFFERENCES FIRST BY SUBMITTING THE MATTER FOR RESOLUTION TO A MEDIATOR, ACCEPTABLE TO ALL PARTIES, AND WHOSEEXPENSES WILL BE BORNE EQUALLY BY ALL PARTIES. THE MEDIATION WILL BE HELD IN THE COUNTY OF NEW YORK, STATE OF NEW YORK, ON AN EXPEDITEDBASIS. IF THE PARTIES CANNOT SUCCESSFULLY RESOLVE THEIR DIFFERENCES THROUGH MEDIATION, THE MATTER WILL BE RESOLVED BY ARBITRATION.THE ARBITRATION SHALL TAKE PLACE IN THE COUNTY OF NEW YORK, THE STATE OF NEW YORK, ON AN EXPEDITED BASIS.**

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**14.         Miscellaneous**.

 

A.           Noprovision of this Agreement may be changed or terminated except by a writing signed by the party or parties to be charged therewith.Unless expressly so provided, no party to this Agreement will be liable for the performance of any other party’s obligationshereunder. Either party hereto may waive compliance by the other with any of the terms, provisions and conditions set forth herein;provided, however, that any such waiver shall be in writing specifically setting forth those provisions waived thereby. No suchwaiver shall be deemed to constitute or imply waiver of any other term, provision or condition of this Agreement. Neither partymay assign its rights or obligations under this Agreement to any other person or entity without the prior written consent of theother party.

 

B.           Eachparty shall, without payment of any additional consideration by any other party, at any time on or after the date of any Closings,take such further action and execute such other and further documents and instruments as the other party may reasonably requestin order to provide the other party with the benefits of this Agreement.

 

C.           TheParties to this Agreement each hereby confirm that they will cooperate with each other to the extent that it may become necessaryto enter into any revisions or amendments to this Agreement, in the future to conform to any federal or state regulations as longas such revisions or amendments do not materially alter the obligations or benefits of either party under this Agreement.

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**15.         EntireAgreement; Severability**.

 

This Agreement togetherwith any other agreement referred to herein supersedes all prior understandings and written or oral agreements between the partieswith respect to the Offering and the subject matter hereof. If any portion of this Agreement shall be held invalid or unenforceable,then so far as is reasonable and possible (i) the remainder of this Agreement shall be considered valid and enforceable and (ii)effect shall be given to the intent manifested by the portion held invalid or unenforceable.

 

**16.         Counterparts**.

 

This Agreement maybe executed in multiple counterparts, each of which may be executed by less than all of the parties and shall be deemed to be anoriginal instrument which shall be enforceable against the parties actually executing such counterparts and all of which togethershall constitute one and the same instrument. The exchange of copies of this Agreement and of signature pages by facsimile transmissionor in pdf format shall constitute effective execution and delivery of this Agreement as to the parties and may be used in lieuof the original Agreement for all purposes. Signatures of the parties transmitted by facsimile or in pdf format shall be deemedto be their original signatures for all purposes.

 

**17.         Confidentiality**.

 

(a)          ThePlacement Agent will maintain the confidentiality of the Information and, unless and until such information shall have been madepublicly available by the Company or by others without breach of a confidentiality agreement, shall disclose the Information onlyas authorized by the Company or as required by law or by order of a governmental authority or court of competent jurisdiction.In the event the Placement Agent is legally required to make disclosure of any of the Information, the Placement Agent will giveprompt notice to the Company prior to such disclosure, to the extent the Placement Agent can practically do so.

 

(b)          Theforegoing paragraph shall not apply to information that:

 

(i)          atthe time of disclosure by the Company, is or thereafter becomes, generally available to the public or within the industries inwhich the Company conducts business, other than as a result of a breach by the Placement Agent of its obligations under this Agreement;

 

(ii)         priorto or at the time of disclosure by the Company, was already in the possession of, the Placement Agent or any of its affiliates,or could have been developed by them from information then lawfully in their possession, by the application of other informationor techniques in their possession, generally available to the public; at the time of disclosure by the Company thereafter, is obtainedby the Placement Agent or any of its affiliates from a third party who the Placement Agent reasonably believes to be in possessionof the information not in violation of any contractual, legal or fiduciary obligation to the Company with respect to that information;or is independently developed by the Placement Agent or its affiliates.

 

 

The exclusions set forth in sub-section(b) above shall not apply to pro forma financial information of EFRDF or the Company, which pro forma Information shall in allevents be subject to sub-section (a) above.

 

(c)          Nothingin this Agreement shall be construed to limit the ability of the Placement Agent or its affiliates to pursue, investigate, analyze,invest in, or engage in investment banking, financial advisory or any other business relationship with entities other than theCompany, notwithstanding that such entities may be engaged in a business which is similar to or competitive with the business ofthe Company, and notwithstanding that such entities may have actual or potential operations, products, services, plans, ideas,customers or supplies similar or identical to the Company’s, or may have been identified by the Company as potential mergeror acquisition targets or potential candidates for some other business combination, cooperation or relationship. The Company expresslyacknowledges and agrees that they do not claim any proprietary interest in the identity of any other entity in its industry orotherwise, and that the identity of any such entity is not confidential information.

 

[Signatures on followingpage.]

  

 

If the foregoing isin accordance with your understanding of the agreement between the Company and the Placement Agent, kindly sign and return thisAgreement, whereupon it will become a binding agreement as provided herein, between the Company and the Placement Agent in accordancewith its terms.

 

 

Accepted and agreed to this

12th day of March 2012: