Exhibit 10.2


 





SECURITIES PURCHASE AGREEMENT


 


This SECURITIES
PURCHASE AGREEMENT (this “Agreement”), dated as of August 14, 2015, is entered into by and between Coates
International, Ltd., a Delaware corporation (the “Company”), and Typenex
Co-Investment, LLC, a Utah limited liability company, its successors and/or assigns (the “Buyer”).


A.The Company
and the Buyer are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded
by the rules and regulations as promulgated by the United States Securities and Exchange Commission (the “SEC”)
under the Securities Act of 1933, as amended (the “1933 Act”).


B.The Buyer
desires to purchase and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement, a Secured
Convertible Promissory Note, in the form attached hereto as Exhibit A, in the original principal amount of $631,500.00 (the
“Note”), convertible into shares of common stock, $0.0001 par value per share, of the Company (the “Common
Stock”), upon the terms and subject to the limitations and conditions set forth in such Note. This Agreement, the Note,
the Secured Buyer Notes (as defined below), the Security Agreement (as defined below), the Pledge Agreement (as defined below),
and all other certificates, documents, agreements, resolutions and instruments delivered to any party under or in connection with
this Agreement, as the same may be amended from time to time, are collectively referred to herein as the “Transaction
Documents.”


C.For purposes
of this Agreement: “Conversion Shares” means all shares of Common Stock issuable upon conversion of all or any
portion of the Note; and “Securities” means the Note and the Conversion Shares, as applicable.


NOW THEREFORE,
the Company and the Buyer hereby agree as follows:


1.Purchase
and Sale of Securities.


1.1.Purchase
of Securities. On the Closing Date (as defined below), the Company shall issue and sell to the Buyer and the Buyer agrees to
purchase from the Company the Note. In consideration thereof, the Buyer shall pay (i) the amount designated as the initial cash
purchase price on the Buyer’s signature page to this Agreement (the “Initial Cash Purchase Price”),
and (ii) issue to the Company the Secured Buyer Notes (the sum of the initial principal amount of the Secured Buyer Notes, together
with the Initial Cash Purchase Price, the “Purchase Price”). Subject to Section 1.5, the Secured Buyer Notes
shall be secured by the Pledge Agreement substantially in the form attached hereto as Exhibit B, as the same may be amended
from time to time (the “Pledge Agreement”). The Purchase Price is allocated to the Tranches (as defined in the
Note) of the Note as set forth in the table attached hereto as Exhibit C.


1.2.Form of
Payment. On the Closing Date, (i) the Buyer shall pay the Purchase Price to the Company against delivery of the Note by delivering
the following at the Closing: (A) the Initial Cash Purchase Price, which shall be delivered by wire transfer of immediately available
funds to the Company, in accordance with the Company’s written wiring instructions, (B) Secured Buyer Note #1 in the principal
amount of $50,000.00 duly executed and substantially in the form attached hereto as Exhibit D (“Secured Buyer
Note #1”); (C) Secured Buyer Note #2 in the principal amount of $50,000.00 duly executed and substantially in the form
attached hereto as Exhibit E (“Secured Buyer Note #2”); (D) Secured Buyer Note #3 in the principal amount
of $50,000.00 duly executed and substantially in the form attached hereto as Exhibit F (“Secured Buyer
Note #3”); (E) Secured Buyer Note #4 in the principal amount of $50,000.00 duly executed and substantially in the form
attached hereto as Exhibit G (“Secured Buyer Note #4”); (F) Secured Buyer Note #5 in the principal amount
of $50,000.00 duly executed and substantially in the form attached hereto as Exhibit H (“Secured Buyer
Note #5”); (G) Secured Buyer Note #6 in the principal amount of $50,000.00 duly executed and substantially in the form
attached hereto as Exhibit I (“Secured Buyer Note #6”); (H) Secured Buyer Note #7 in the principal
amount of $50,000.00 duly executed and substantially in the form attached hereto as Exhibit J (“Secured Buyer
Note #7”); and (I) Secured Buyer Note #8 in the principal amount of $50,000.00 duly executed and substantially in the
form attached hereto as Exhibit K (“Secured Buyer Note #8,” and together with Secured Buyer Note
#1, Secured Buyer Note #2, Secured Buyer Note #3, Secured Buyer Note #4, Secured Buyer Note #5, Secured Buyer Note #6, and Secured
Buyer Note #7, the “Secured Buyer Notes”); and (ii) the Company shall deliver the duly executed Note
on behalf of the Company, to the Buyer, against delivery of such Purchase Price.



    	 



    	 



    




1.3.Closing
Date. Subject to the satisfaction (or written waiver) of the conditions set forth in Section 5 and Section 6 below, the date
and time of the issuance and sale of the Securities pursuant to this Agreement (the “Closing Date”) shall be
12:00 noon, Eastern Time on or about August 14, 2015, or such other mutually agreed upon time. The closing of the transactions
contemplated by this Agreement (the “Closing”) shall occur on the Closing Date at the offices of the Buyer unless
otherwise agreed upon by the parties.


1.4.Note Collateral.
The Note shall be secured by the collateral set forth in that that certain Security Agreement attached hereto as Exhibit L
listing the Secured Buyer Notes as security for the Company’s obligations under the Transaction Documents (the “Security
Agreement”).


1.5.Secured
Buyer Note Collateral. At the Closing, the Buyer shall execute the Pledge Agreement, thereby granting to the Company a security
interest in the collateral described therein (the “Collateral”). The Buyer also agrees to file a UCC Financing
Statement (Form UCC1) with the Utah Department of Commerce in the manner set forth in the Pledge Agreement in order to perfect
the Company’s security interest in the Collateral. Notwithstanding anything to the contrary herein or in any other Transaction
Document, the Buyer may, in the Buyer’s sole discretion, add additional collateral to the Collateral covered by the Pledge
Agreement, and may substitute Collateral as the Buyer deems fit, provided that the net fair market value of the substituted Collateral
may not be less than the aggregate principal balance of the Secured Buyer Notes as of the date of any such substitution. In the
event of a substitution of Collateral, the Buyer shall timely execute any and all amendments and documents necessary or advisable
in order to properly release the original collateral and grant a security interest upon the substitute collateral in favor of
the Company, including without limitation the filing of an applicable UCC Financing Statement Amendment (Form UCC3) with the Utah
Department of Commerce. The Company agrees to sign the documents and take such other measures requested by the Buyer in order
to accomplish the intent of the Transaction Documents, including without limitation, execution of a Form UCC3 (or equivalent)
termination statement against the Collateral within five (5) Trading Days after written request from the Buyer. The Company acknowledges
and agrees that the Collateral may be encumbered by other monetary liens in priority and/or subordinate positions. The intent
of the parties is that the net fair market value of the Collateral (less any other prior liens or encumbrances) will be equal
to or greater than the aggregate outstanding balance of the Secured Buyer Notes. To the extent the fair market value of the Collateral
(less any other liens or encumbrances) is less than the total outstanding balance of all the Secured Buyer Notes, then the Collateral
will be deemed to only secure those Secured Buyer Notes with an aggregate outstanding balance that is less than or equal to such
net fair market value of the Collateral, applied in numerical order of the Secured Buyer Notes. By way of example only, if the
fair market value of the Collateral is determined by appraisal to be $300,000 and the Collateral is encumbered by $100,000 of
prior liens, then the net fair market value for purposes of this section is $200,000 ($300,000 - $100,000). Accordingly, the Collateral
will be deemed to secure only Secured Buyer Note #1, Secured Buyer Note #2, Secured Buyer Note #3, and Secured Buyer Note #4,
while the remaining Secured Buyer Notes shall be deemed unsecured. If the Collateral is subsequently appraised for $400,000 with
all prior liens removed, then the Collateral will automatically be deemed to secure all of the Secured Buyer Notes.



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1.6.Original
Issue Discount; Transaction Expenses. The Note carries an original issue discount of $30,000.00 (the “OID”).
In addition, the Company agrees to pay $1,500.00 to the Buyer to cover the Buyer’s legal fees, accounting costs, due diligence,
monitoring and other transaction costs incurred in connection with the purchase and sale of the Securities, all of which amount
is included in the initial principal balance of the Note (the “Carried Transaction Expense Amount”). The Purchase
Price, therefore, shall be $600,000.00, computed as follows: $631,500.00 original principal balance, less the OID, less the Carried
Transaction Expense Amount. The Initial Cash Purchase Price shall be the Purchase Price less the sum of the initial principal amounts
of the Secured Buyer Notes.


2.Buyer’s
Representations and Warranties. The Buyer represents and warrants to the Company that: (i) this Agreement has been duly and
validly authorized; (ii) this Agreement, the Secured Buyer Notes, and the Pledge Agreement have been duly executed and delivered
on behalf of the Buyer, (iii) this Agreement constitutes a valid and binding agreement of the Buyer enforceable in accordance with
its terms; and (iv) the Buyer is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D of
the 1933 Act.


3.Representations
and Warranties of the Company. The Company represents and warrants to the Buyer that: (i) the Company is a corporation duly
organized, validly existing and in good standing under the laws of its state of incorporation and has the requisite corporate
power to own its properties and to carry on its business as now being conducted; (ii) the Company is duly qualified as a foreign
corporation to do business and is in good standing in each jurisdiction where the nature of the business conducted or property
owned by it makes such qualification necessary; (iii) the Company has registered its Common Stock under Section 12(g) of
the Securities Exchange Act of 1934, as amended (the “1934 Act”), and is obligated to file reports pursuant
to Section 13 or Section 15(d) of the 1934 Act; (iv) each of the Transaction Documents and the transactions contemplated
hereby and thereby, have been duly and validly authorized by the Company; (v) this Agreement, the Note, and the Security Agreement
have been duly executed and delivered by the Company and constitute the valid and binding obligations of the Company enforceable
in accordance with their terms, subject as to enforceability only to general principles of equity and to bankruptcy, insolvency,
moratorium, and other similar laws affecting the enforcement of creditors’ rights generally; (vi) the execution and delivery
of the Transaction Documents by the Company, the issuance of Securities in accordance with the terms hereof, and the consummation
by the Company of the other transactions contemplated by the Transaction Documents do not and will not conflict with or result
in a breach by the Company of any of the terms or provisions of, or constitute a default under (a) the Company’s formation
documents or bylaws, each as currently in effect, (b) any indenture, mortgage, deed of trust, or other material agreement or instrument
to which the Company is a party or by which it or any of its properties or assets are bound, including any listing agreement for
the Common Stock, or (c) to the Company’s knowledge, any existing applicable law, rule, or regulation or any applicable
decree, judgment, or order of any court, United States federal or state regulatory body, administrative agency, or other governmental
body having jurisdiction over the Company or any of the Company’s properties or assets; (vii) no further authorization,
approval or consent of any court, governmental body, regulatory agency, self-regulatory organization, or stock exchange or market
or the stockholders or any lender of the Company is required to be obtained by the Company for the issuance of the Securities
to the Buyer; (viii) none of the Company’s filings with the SEC contained, at the time they were filed, any untrue statement
of a material fact or omitted to state any material fact required to be stated therein or necessary to make the statements made
therein, in light of the circumstances under which they were made, not misleading; (ix) the Company has filed all reports, schedules,
forms, statements and other documents required to be filed by the Company with the SEC under the 1934 Act on a timely basis or
has received a valid extension of such time of filing and has filed any such report, schedule, form, statement or other document
prior to the expiration of any such extension; (x) the Company is not, nor has it ever been, a “Shell Company,” as
such type of “issuer” is described in Rule 144(i)(1) under the 1933 Act; (xi) the Company has taken no action which
would give rise to any claim by any person or entity for a brokerage commission, placement agent or finder’s fees or similar
payments by the Buyer relating to the Note or the transactions contemplated hereby; (xii) when issued, the Conversion Shares will
be duly authorized, validly issued, fully paid for and non-assessable, free and clear of all liens, claims, charges and encumbrances;
and (xiii) except for such fees arising as a result of any agreement or arrangement entered into by the Buyer without the knowledge
of the Company (a “Buyer’s Fee”), the Buyer shall have no obligation with respect to such fees or with
respect to any claims made by or on behalf of other persons for fees of a type contemplated in this subsection that may be due
in connection with the transactions contemplated hereby and the Company shall indemnify and hold harmless each of the Buyer, the
Buyer’s employees, officers, directors, stockholders, managers, agents, and partners, and their respective affiliates, from
and against all claims, losses, damages, costs (including the costs of preparation and attorneys’ fees) and expenses suffered
in respect of any such claimed or existing fees (other than a Buyer’s Fee, if any).



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4.Company
Covenants. Until all of the Company’s obligations hereunder are paid and performed in full, or within the timeframes
otherwise specifically set forth below, the Company shall comply with the following covenants: (i) from the date hereof until
the date that is six (6) months after all the Conversion Shares either have been sold by the Buyer, or may permanently be sold
by the Buyer without any restrictions pursuant to Rule 144, the Company shall timely make all filings required to be made by it
under the 1933 Act, the 1934 Act, Rule 144 or any United States securities laws and regulations thereof applicable to the Company
or by the rules and regulations of its principal trading market, and such filings shall conform to the requirements of applicable
laws, regulations and government agencies, and, unless such filings are publicly available on the SEC’s EDGAR system (via
the SEC’s web site at no additional charge), the Company shall provide a copy thereof to the Buyer promptly after such filings;
(ii) so long as the Buyer beneficially owns any of the Securities and for at least twenty (20) trading days thereafter, the Company
shall file all reports required to be filed with the SEC pursuant to Sections 13 or 15(d) of the 1934 Act, and shall take
all reasonable action under its control to ensure that adequate current public information with respect to the Company, as required
in accordance with Rule 144, is publicly available, and 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 permit such termination; (iii) the Common Stock
shall be listed or quoted for trading on any of (a) the NYSE Amex, (b) the New York Stock Exchange, (c) the Nasdaq Global Market,
(d) the Nasdaq Capital Market, (e) the OTC Bulletin Board, (f) the OTCQX, (g) the OTCQB, or (h) OTC Pink Current Information;
(iv) the Company shall use the net proceeds received hereunder for working capital and general corporate purposes only; provided,
however, the Company will not use such proceeds to pay fees payable (A) to any broker or finder relating to the offer and
sale of the Securities unless such broker, finder, or other party is a registered investment adviser or registered broker-dealer
and such fees are paid in full compliance with all applicable laws and regulations, or (B) to any other party relating to any
financing transaction effected prior to the date hereof; and (v) from and after the date hereof and until all of the Company’s
obligations hereunder and the Note are paid and performed in full, the Company shall not transfer, assign, sell, pledge, hypothecate
or otherwise alienate or encumber the Secured Buyer Notes in any way without the prior written consent of the Buyer.



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5.Conditions
to the Company’s Obligation to Sell. The obligation of the Company hereunder to issue and sell the Securities to the
Buyer at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions:


5.1.The Buyer
shall have executed this Agreement, the Secured Buyer Notes, and the Pledge Agreement, and delivered the same to the Company.


5.2.The Buyer
shall have delivered the Purchase Price in accordance with Section 1.2 above.


6.Conditions
to the Buyer’s Obligation to Purchase. The obligation of the Buyer hereunder to purchase the Securities 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 Buyer’s sole benefit and may be waived by the Buyer at any time in its sole discretion:


6.1.The Company
shall have executed this Agreement and delivered the same to the Buyer.


6.2.The Company
shall have delivered to the Buyer the duly executed Note in accordance with Section 1.2 above.


6.3.The Company
shall have delivered to the Buyer a fully executed secretary’s certificate evidencing the Company’s approval of the
Transaction Documents substantially in the form attached hereto as Exhibit M.


6.4.The Company
shall have delivered to the Buyer a fully executed share issuance resolution to be delivered to the Company’s transfer agent
substantially in the form attached hereto as Exhibit N.


6.5.The Company
shall have delivered to the Buyer fully executed copies of all other Transaction Documents required to be executed by the Company
herein or therein.


7.Reservation
of Shares. At all times during which the Note is convertible, the Company will reserve from its authorized and unissued Common
Stock to provide for the issuance of Common Stock upon the full conversion of the Note. The Company will at all times reserve at
least three times the number of shares of Common Stock necessary to convert the total Outstanding Balance (as defined in and determined
pursuant to the Note) of the Note, but in any event not less than 50,000,000 shares of Common Stock shall be reserved at all times
for such purpose (the “Share Reserve”). The Company further agrees that it will immediately add shares of Common
Stock to the Share Reserve in increments of 5,000,000 shares as and when requested by the Buyer in writing from time to time.


8.Governing
Law; Miscellaneous. The provisions set forth in this Section 8 shall apply to this Agreement, as well as all other Transaction
Documents as if these terms were fully set forth therein.


8.1.Governing
Law; Venue. This Agreement shall be governed by and interpreted in accordance with the laws of the State of Utah for contracts
to be wholly performed in such state and without giving effect to the principles thereof regarding the conflict of laws. Subject
to Section 8.2 below, each party hereto hereby (a) consents to and expressly submits to the exclusive personal jurisdiction of
any state or federal court sitting in Salt Lake County, Utah in connection with any dispute or proceeding arising out of or relating
to this Agreement, (b) agrees that all claims in respect of any such dispute or proceeding may only be heard and determined in
any such court, (c) expressly submits to the exclusive venue of any such court for the purposes hereof, and (d) waives any claim
of improper venue and any claim or objection that such courts are an inconvenient forum or any other claim or objection to the
bringing of any such proceeding in such jurisdictions or to any claim that such venue of the suit, action or proceeding is improper.



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8.2.Arbitration
of Disputes. The parties shall submit all claims and disputes arising under this Agreement or any other Transaction Document,
other than claims and disputes related to Calculations (as defined in the Note) and Payment Defaults (as defined in the Note),
to binding arbitration to be held in Salt Lake County, Utah according to the then prevailing rules and procedures of the American
Arbitration Association, where the findings and decision of the arbitrator shall be binding upon all parties to such dispute. All
fees and costs (including reasonable attorneys’ fees) incurred pursuant to the resolution of any dispute to which this Section
8.2 applies shall be allocated to the losing party. For the avoidance of doubt, this Section 8.2 shall not apply to Payment Defaults
under the Note.


8.3.Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which shall constitute
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other
party. A signature delivered by electronic means (i.e., by “pdf” signature) shall be deemed and original for all purposes.


8.4.Severability.
In the event that any provision of this Agreement is invalid or unenforceable under any applicable statute or rule of law, then
such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform
to such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under any law shall not affect the
validity or enforceability of any other provision hereof.


8.5.Entire
Agreement; Amendments. This Agreement and the instruments referenced herein 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 the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No provision of this Agreement
may be waived or amended other than by an instrument in writing signed by the parties hereto.


8.6.Notices.
Any notice required or permitted hereunder shall be given in writing (unless otherwise specified herein) and shall be deemed effectively
given on the earliest of: (a) the date delivered, if delivered by personal delivery as against written receipt therefor or by e-mail
to an executive officer, or by confirmed facsimile, (b) the fifth Trading Day after deposit, postage prepaid, in the United States
Postal Service by certified mail, or (c) the third Trading Day after mailing by domestic or international express courier, with
delivery costs and fees prepaid, in each case, addressed to each of the other parties thereunto entitled at the following addresses
(or at such other addresses as such party may designate by ten (10) calendar days’ advance written notice similarly given
to each of the other parties hereto):


If to the Company:


 


Coates International,
Ltd.


Attn: Barry C. Kaye, CFO


2100 Highway 34 & Ridgewood Road


Wall Township, NJ 07719






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If to the Buyer:


 


Typenex Co-Investment,
LLC


Attn: John Fife, President


303 East Wacker Drive, Suite 1040


Chicago, Illinois 60601


 


With a copy to (which copy shall not constitute notice):


 


Hansen Black Anderson
Ashcraft PLLC


Attn: Jonathan K. Hansen


3051 West Maple Loop, Suite 325


Lehi, Utah 84043


 


8.7.Successors
and Assigns. This Agreement or any of the severable rights and obligations inuring to the benefit of or to be performed by
the Buyer hereunder may be assigned by the Buyer to a third party, including its financing sources, in whole or in part, but only
with the prior written consent of the Company, which consent shall not be unreasonably withheld. The Company may not assign its
rights or obligations under this Agreement or delegate its duties hereunder without the prior written consent of the Buyer.


8.8.Survival.
The representations and warranties of the Company and the agreements and covenants set forth in this Agreement shall survive the
Closing hereunder notwithstanding any due diligence investigation conducted by or on behalf of the Buyer. The Company agrees to
indemnify and hold harmless the Buyer and all its officers, directors, employees, attorneys, and agents for loss or damage arising
as a result of or related to any breach or alleged breach by the Company of any of its representations, warranties and covenants
set forth in this Agreement or any of its covenants and obligations under this Agreement, including advancement of expenses as
they are incurred.


8.9.Further
Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall
execute and deliver all such other agreements, certificates, instruments and documents, as the 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.


8.10.Buyer’s
Rights and Remedies Cumulative; Liquidated Damages. All rights, remedies, and powers conferred in this Agreement and the Transaction
Documents on the Buyer are cumulative and not exclusive of any other rights or remedies, and shall be in addition to every other
right, power, and remedy that the Buyer may have, whether specifically granted in this Agreement or any other Transaction Document,
or existing at law, in equity, or by statute; and any and all such rights and remedies may be exercised from time to time and
as often and in such order as the Buyer may deem expedient. The parties agree that the amount of damages for a breach by the Company
of the Transaction Documents is difficult to determine at this time and that the fees and charges included in the Transaction
Documents are a reasonable estimation of the amount of liquidated damages for any such breach under the circumstances existing
at the time this Agreement is entered into and are not penalties. All fees and charges provided for in the Transaction Documents
are agreed to by the parties to be based upon the obligations and the risks assumed by the parties as of the Closing Date. The
liquidated damages provisions of the Transaction Documents shall not limit or preclude a party from pursuing any other remedy
available in law or in equity; provided, however, that the liquidated damages provided for in the Transaction Documents
are intended to be in lieu of actual damages.



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8.11.Ownership
Limitation. Notwithstanding anything to the contrary contained in this Agreement or the other Transaction Documents, if at
any time the Buyer shall or would be issued shares of Common Stock under any of the Transaction Documents, but such issuance would
cause the Buyer (together with its affiliates) to beneficially own a number of shares exceeding the Maximum Percentage (as defined
in the Note), then the Company must not issue to the Buyer the shares that would cause the Buyer to exceed the Maximum Percentage.
For purposes of this Section, beneficial ownership of Common Stock will be determined under the 1934 Act.


8.12.Attorneys’
Fees and Cost of Collection. In the event of any action at law or in equity to enforce or interpret the terms of this Agreement
or any of the other Transaction Documents, the parties agree that the party who is awarded the most money shall be deemed the prevailing
party for all purposes and shall therefore be entitled to an additional award of the full amount of the attorneys’ fees and
expenses paid by such prevailing party in connection with the litigation and/or dispute without reduction or apportionment based
upon the individual claims or defenses giving rise to the fees and expenses. Nothing herein shall restrict or impair a court’s
power to award fees and expenses for frivolous or bad faith pleading. If (a) the Note is placed in the hands of an attorney
for collection or enforcement prior to commencing legal proceedings, or is collected or enforced through any legal proceeding,
or the Buyer otherwise takes action to collect amounts due under the Note or to enforce the provisions of the Note; or (b) there
occurs any bankruptcy, reorganization, receivership of the Company or other proceedings affecting the Company’s creditors’
rights and involving a claim under the Note; then the Company shall pay the costs incurred by the Buyer for such collection, enforcement
or action or in connection with such bankruptcy, reorganization, receivership or other proceeding, including, without limitation,
attorneys’ fees and disbursements.


8.13.Waiver.
No waiver of any provision of this Agreement shall be effective unless it is in the form of a writing signed by the party granting
the waiver. No waiver of any provision or consent to any prohibited action shall constitute a waiver of any other provision or
consent to any other prohibited action, whether or not similar. No waiver or consent shall constitute a continuing waiver or consent
or commit a party to provide a waiver or consent in the future except to the extent specifically set forth in writing.


8.14.Waiver
of Jury Trial. EACH PARTY TO THIS AGREEMENT IRREVOCABLY WAIVES ANY AND ALL RIGHTS SUCH PARTY MAY HAVE TO DEMAND THAT ANY ACTION,
PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN ANY WAY RELATED TO THIS AGREEMENT OR THE RELATIONSHIPS OF THE PARTIES HERETO BE
TRIED BY JURY. THIS WAIVER EXTENDS TO ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY ARISING UNDER COMMON LAW OR ANY APPLICABLE STATUTE,
LAW, RULE OR REGULATION. FURTHER, EACH PARTY HERETO ACKNOWLEDGES THAT SUCH PARTY IS KNOWINGLY AND VOLUNTARILY WAIVING SUCH PARTY’S
RIGHT TO DEMAND TRIAL BY JURY.


8.15.Time of
the Essence. Time is expressly made of the essence of each and every provision of this Agreement and the other Transaction
Documents.


[Remainder of page intentionally left blank;
signature page to follow]


 









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SUBSCRIPTION AMOUNT:


 


	Principal Amount of Note:	 	$	631,500.00	 
	 	 	 	 	 
	Initial Cash Purchase Price:	 	$	200,000.00	 



  


IN WITNESS WHEREOF,
the undersigned Buyer and the Company have caused this Agreement to be duly executed as of the date first above written.





	 	BUYER:
	 	 	 
	 	Typenex Co-Investment, LLC
	 	 
	 	By:Red Cliffs Investments, Inc., its Manager
	 	 	 
	 	By:	/s/ John M. Fife
	 	 	John M. Fife, President
	 	 	 
	 	COMPANY:
	 	 
	 	Coates International, Ltd.
	 	 	 
	 	By:	/s/ Barry C. Kaye
	 	 	Barry C. Kaye
	 	 	Chief Financial Officer



  


ATTACHED EXHIBITS: 


 





	Exhibit A	Note
	Exhibit B	Pledge Agreement
	Exhibit C	Allocation of Purchase Price
	Exhibit D	Secured Buyer Note #1
	Exhibit E	Secured Buyer Note #2
	Exhibit F	Secured Buyer Note #3
	Exhibit G	Secured Buyer Note #4
	Exhibit H	Secured Buyer Note #5
	Exhibit I	Secured Buyer Note #6
	Exhibit J	Secured Buyer Note #7
	Exhibit K	Secured Buyer Note #8
	Exhibit L	Security Agreement
	Exhibit M	Secretary’s Certificate
	Exhibit N	Share Issuance Resolution







 

















 





[Signature page to Securities Purchase Agreement]