Document:

ex107.htm

 

		
 australian

stock

report

 

 

AFFILIATE AGREEMENT

BETWEEN

AUSTRALIAN STOCK REPORT LIMITED

 

ABN 94106 863 978

 

AND

 

IGEX INDO GLOBAL EXCHANGES PTE LTD

 

(OTCQB: IGEX)

  

  

 

TABLE OF CONTENTS

	
Clause                                                                                                                  

	  Page
	
Recitals

	 
	
Operative Provisions 

	 
	
1.  Definitions 

	 3
	
2.  Creation and maintenance of Link 

	 3
	
3.  Commissions 

	 4
	
4.  Liability and indemnity

	 4
	
5.  Term and termination

	 4
	
6.  General

	 5

 

  

2

 

This agreement is made on the 5th day of SEPTEMBER in the year 2013

 

Between:           Australian Stock Report Limited ABN 94 106 863 978 of

Level 4, 419-425 Collins Street, Melbourne, VIC, 3000

 

("ASR")

 

And:                   IGEX INDO GLOBAL EXCHANGES PTE LTD (OTCQB:IGEX)

20875 N Pima Rd, SuiteC4-240, Scottsdale, AZ 85255

 

("Affiliate")

 

Recitals

	
  

	
A.

	
ASR is the owner of the Australian Stock Report Financial Market Report Service.

 

	
  

	
B.

	
The Affiliate maintains a  website or  customer database through  which ASR wishes to create a sale distribution channel for the Australian Stock Report Financial Market Report Service through the Affiliate's website.

 

	
  

	
C.

	
The parties have entered into this Agreement to set out the way in which the Affiliate will market and promote the Australian Stock Report Financial Market Report Service and ASR remunerates the Affiliate only within Indonesia.

 

Operative Provisions

 

1.          Definitions

 

"Link" means a visible button, icon or image in a prominent position on the Affiliate's website or email campaigns which contains a link to the address of the Australian Stock Report Landing Page.

 

"The Reports" means the reports owned by ASR, which is a guide to investing and trading in local and international financial markets.

 

"The Australian Stock Report landing Page" means the Internet address www.australianstockreport.com.au or such other address notified by Australian Stock Report to the Affiliate in writing.

 

2.          Creation and maintenance of Link

 

	
  

	
2.1

	
ASR will supply a hypertext protocol address to be implemented on the Affiliate's website or email.  The address supplied by ASR will include a reference code that will identify the Affiliate.

 

	
  

	
2.2

	
The Affiliate will design, implement and maintain a graphic (such as an icon or button) on its page in a form agreed between the Affiliate and ASR which, when activated by a user, causes the user's internet browser to open the address provided under clause 2.1. ASR will provide the graphics to the Affiliate if required.

  

3

 

 

	
  

	
2.3

	
The Link provided by ASR will be used by the Affiliate in email campaigns, distributed to their client database or placed in a proponent location on the Affiliate's internet website.  The address supplied by ASR will include a reference code that will identify the Affiliate.

 

3.          Commissions

 

	
  

	
3.1

	
ASR will maintain a log of all persons who purchase The Reports as a result of following the Link and provide a monthly report on sales made.

 

	
  

	
3.2    In consideration of the Affiliate proving the service in clause 2.3, the Affiliate will be entitled to a commission equal to the amount noted in Item 5.0 of Schedule 1 for all purchases made within the time period noted in Item 5.0 of Schedule 1 on all commissionable purchases.

 

	
  

	
3.3    A purchase becomes a Commissionable Purchase 30 days after the purchase is made as a result of following the link.

 

	
  

	
3.4

	
Within 14 days of the end of each calendar month, ASR will pay to the Affiliate the aggregate amount of commission accrued under clause 3.2 during that month.

 

	
  

	
3.5    The Affiliate will be entitled to a commission for the initial annual subscription and for the subsequent renewal year or for no longer than a period of 24 months after the initial subscription date for each purchase made as a result of following the link.

 

4.          Liability and indemnity

 

	
  

	
4.1

	
Neither party will be liable to the other for any act or omission in relation to this Agreement, other than for breach, fraud or negligence.

 

	
  

	
4.2

	
A party's liability to the other under  clause 4.1 is  limited  to the any  unpaid amount,  direct  damage  or  costs  in  connection  with  any  breach,  fraud  or negligence incurred by the other party.

 

	
  

	
4.3

	
The Affiliate is  not liable  for any  action brought by a person who buys The Reports or The Australian Stock Report Financial Market Report Service as a result of following the Link ("referred customer'') and ASR indemnifies the Affiliate for any reasonable costs incurred by the Affiliate in defending any legal action brought by a referred customer.

 

	
  

	
4.4

	
The Affiliate  indemnifies  ASR  for  any  negligent,  deceptive  or  misleading statement that the Affiliate makes, or permits to be published on its website in relation to The Reports (other than those made by ASR).

 

5.          Term and termination

 

5.1          Subject to the provisions of clauses 6.2 & 6.3, this Agreement:

  

4

 

  

(a)          continues for a period of 12 months from the  date of this Agreement

 

("Initial Term"); and

 

	
  

	
(b)

	
renews  for  each  further period of 12 months, subject to review and performance criteria ("Subsequent Term").

 

5.2          Either party may terminate this Agreement immediately if the other party:

 

	
  

	
(a)

	
becomes insolvent, goes into liquidation or administration, or is otherwise unable to meet its debts as and when they fall due.

 

	
  

	
(b)

	
ceases, or threatens to cease, carrying on business;

 

	
  

	
(c)

	
commits  a  material breach of this Agreement, which if capable of rectification, is not rectified within 7 days.

 

5.3.1                 Either party may terminate this Agreement with 7 days notice.

 

6.          General

 

	
  

	
6.1

	
This Agreement is governed by the law of Victoria and the parties irrevocably submit to the courts and tribunals exercising jurisdiction there.

 

6.2          This agreement may only be amended in writing signed by the parties.

 

	
  

	
6.3

	
A party may not assign this Agreement without the written consent of the other party, such consent not to be unreasonably withheld.

 

	
  

	
6.4

	
Any provision of this Agreement which is found to be illegal, unenforceable, void or voidable will be read down (failing that, severed) to make it enforceable.

 

	
  

	
6.5

	
This Agreement constitutes the entire agreement of the parties in respect of its subject matter and supersedes all prior discussions, undertakings and agreements.

 

  

5

 

Schedule 1

 

	
Item 1:

(Name of Associate)

	
 

IGEX INDO GLOBAL EXCHANGES PTE LTD  (OTCQB:IGEX)

	
Item 2:

(Contact Details)

	
Name: IGEX INDO GLOBAL EXCHANGES PTE LTD (OTCQB: IGEX)

Contact:  John O'Shea

Address:  20875 N Pima Rd  SuiteC4-240  Scottsdale, AZ 85255

Mobile:  + 62 812 1736 6699                                                     Email:  johnfoshea6@gmail.com

	
Item 3:

(Commencement Date)

	
 

5th September 2013

	
ltem4:

Other Promotional Obligations

	
Affiliate:

The Associate will use the following URLs to promote The Reports:

www.lgexcorp.com

The Affiliate will send the first promotional email to its members within one month of the launch of the Commencement Date.

ASR:

ASR agrees not to market or promote any other ASR product or service to the Affiliate's clients once they become a subscriber of The Reports or during the initial7 day trial period.

	
Item 5:

Commission fee and Time Period

	
25% of the base purchase price of The Reports (that is, the purchase price less GST) on all purchases made as a result of following the Campaign URL.

 

Commission will be paid on all purchases that occur within 90 calendar days of the user following the link and providing contact details on registering for a free trial of The Reports.

	
Item 6:

Campaign Information

	
ASR to provide:

1.  Sign-up landing page, linked to a refID for tracking

2.  ASR logo for web use

3.  Banner linking to sign-up page

	
Item 7:

Region

	
Indonesia

	
Additional terms

	
1.  This agreement cancels the original affiliate agreement between ASR and PT. Indo Global Exchange Strategy, dated March 13,2013. The cancellation of this agreement was also confirmed via email dated Friday 23'd August 2013.

2.  John O'Shea is to manage the relationship with ASR in conjunction with George Sarros whom will act as Compliance Manager

3.  ASR to receive full reimbursement of all costs associated with the marketing (including travel & accommodation) of the ASR/IGE event conducted in November 2012,(totaling AUD$45,000) by 30th June 2014.

4.   Any commission earned by IGEX Indo Global Exchanges Pte Ltd before 30th June 2014 will be offset against the full and final payment of AUD$45,000.

5.  Should the full amount of AUD$45,000 not be paid in full by the

30th June 2014 this agreement will be terminated and legal action

will be taken to recover the balance of the funds owing to ASR.

  

6

  

Executed by Australian Stock Report Ltd   ) ACN 106 863 978 in accordance with               ) section 127(1) of the Corporations Act 2001     ) (Cth):                                                                        )

 

...........................................................................

Signature of director

 

.........................................................................

Name (please print)

 

Executed by John F. O'Shea             

President and CEO                                        

                                                                         

IGEX INDO GLOBAL EXCHANGES PTE LTD OTCQB: IGEX

	
.................................................................

	
..................................................................

	
President & CEO

	
Signature of director or company secretary*

	  	
*delete whichever does not apply

	
.................................................................

	
..................................................................

	Name (please print)	Name (please print)
	
 

	 

  

7Exhibit 10.1

SECURITIES PURCHASE AGREEMENT

THIS SECURITIES
PURCHASE AGREEMENT (this “Agreement”), is made effective as of SEPTEMBER 19, 2013 (the “Effective
Date”), by and among 112359 FACTOR FUND, LLC (“Buyer”) and GTX CORP. (“Company”).
Capitalized terms used herein and not otherwise defined herein shall have the respective meanings set forth in that certain Security
Agreement entered into on even date herewith by and between Company and Buyer.

WITNESSETH

WHEREAS, the
Company and the Buyer are executing and delivering this Agreement in reliance upon an exemption from securities registration pursuant
to Section 4(2), Rule 506 of Regulation D (“Regulation D”), as promulgated by the U.S. Securities and Exchange
Commission (the “SEC”) under the Securities Act of 1933, as amended (the “Securities Act”);

WHEREAS,
Buyer holds that certain amended and restated convertible debenture numbered GTXO – 59FF 101 issued by the Company
(“First Debenture”);

WHEREAS, the
parties desire that, upon the terms and subject to the conditions contained herein, the Company shall issue and sell to the Buyer,
as provided herein, and the Buyer shall purchase the Securities, which shall be convertible into shares of the Company’s
common stock, par value $0.001 (the “Common Stock” and, as converted, the “Conversion Shares”),
in exchange for certain consideration payable on the terms set forth herein (the “Purchase Price” and the “Subscription
Amount”); and,

WHEREAS, contemporaneously
with the execution and delivery of this Agreement, the parties hereto are executing and delivering certain other agreements and
instruments, including that certain Security Agreement, Pledge Agreement, Escrow Agreement, Consulting Agreement, and other documents,
agreements and instruments to be executed and delivered in connection therewith and herewith, all of which constitute part of this
transaction (collectively, the “Transaction Documents”).

NOW, THEREFORE,
in consideration of the mutual covenants and other agreements contained in this Agreement the Company and the Buyer hereby agree
as follows:

1.                  
PURCHASE AND SALE OF SECURITIES

(a)                
The Securities. Subject to the terms and conditions set forth in this Agreement, the
Buyer shall purchase from the Company and the Company shall issue to Buyer a convertible debenture with a principal balance of
$901,000.00 in substantially the same form as the form of debenture attached hereto as Exhibit A (the “Third
Debenture”).

(b)                
The Purchase Price. Buyer shall purchase the eight (8) obligations specified in the Third Debenture (each, an “Obligation”)
in exchange for U.S. cash funds in an amount equal in the aggregate to forty seven and 17/100 percent (47.17%) of the principal
balance of each Obligation, for a total purchase price for the Third Debenture of $425,000.00 (the “Purchase Price”),
which amount shall be paid to the Company, and the corresponding Obligation shall be purchased, in accordance with the following
schedule:

	Obligation Number	Funding Date	Purchase Price	Obligation Amount 
	1	September 19, 2013	$75,000	$159,000
	2	October 14, 2013	$50,000	$106,000
	3	November 15, 2013	$50,000	$106,000
	4	December 13, 2014	$50,000	$106,000
	5	January 17, 2014	$50,000	$106,000
	6	February 14, 2014	$50,000	$106,000
	7	March 14, 2014	$50,000	$106,000
	8	April 18, 2014	$50,000	$106,000
	Total	 	$425,000	$901,000

Buyer and Company hereby
agree that the Obligations in the Third Debenture shall be convertible into shares of Company Common Stock only if and to the extent
that the corresponding portion of the Purchase Price has been paid.

    	1

    	 

    

 

(c)                
Second Debenture. In further consideration of the undertakings by Buyer hereunder, at the Closing the Company shall
issue Buyer a convertible debenture with a principal balance of $200,000.00 in substantially the same form as the form of debenture
attached hereto as Exhibit B (the “Second Debenture” and, together with the Third Debenture, the
“Securities”).

(d)                
The Closing. The Closing of the issuance, purchase and sale of the Securities shall take place at 10:00 a.m. Eastern
Standard Time on the second (2nd) business day following the date hereof, subject to notification of satisfaction of
the conditions to the Closing set forth herein and in Sections 6 and 7 below (or such later date as is mutually agreed to by the
Company and the Buyer) (the “Closing Date”).

2.                  
BUYER’S REPRESENTATIONS AND WARRANTIES

Buyer represents
and warrants that:

(a)                
Investment Purpose. Buyer is acquiring the Securities and, upon conversion of Securities, the Buyer will acquire
the Conversion Shares then issuable, for its own account for investment only and not with a view towards, or for resale in connection
with, the public sale or distribution thereof, except pursuant to sales registered or exempted under the Securities Act; provided,
however, that by making the representations herein, such Buyer reserves the right to dispose of the Conversion Shares at any time
in accordance with or pursuant to an effective registration statement covering such Conversion Shares or an available exemption
under the Securities Act.

(b)                
Accredited Investor Status. Buyer is an “Accredited Investor” as that term is defined in Rule
501(a)(3) of Regulation D.

(c)                
Information. Buyer and its advisors (and his or, its counsel), if any, have been furnished with all materials relating
to the business, finances and operations of the Company and information it deemed material to making an informed investment decision
regarding his purchase of the Securities and the Conversion Shares, which have been requested by Buyer. Buyer and its advisors,
if any, have been afforded the opportunity to ask questions of the Company and its management. Neither such inquiries nor any other
due diligence investigations conducted by Buyer or its advisors, if any, or its representatives shall modify, amend or affect Buyer’s
right to rely on the Company’s representations and warranties contained in Section 3 below. Buyer understands that its investment
in the Securities and the Conversion Shares involves a high degree of risk. Buyer is in a position regarding the Company, which,
based upon employment, family relationship or economic bargaining power, enabled and enables Buyer to obtain information from the
Company in order to evaluate the merits and risks of this investment. Buyer has sought such accounting, legal and tax advice, as
it has considered necessary to make an informed investment decision with respect to its acquisition of the Securities and the Conversion
Shares.

(d)                
Authorization, Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf
of such Buyer and is a valid and binding agreement of Buyer enforceable in accordance with its terms, except as such enforceability
may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and
other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

(e)                
Due Formation of Corporate and Other Buyer. Buyer has been formed and validly exists and has not been organized for
the specific purpose of purchasing the Securities and is not prohibited from doing so.

3.                  
REPRESENTATIONS AND WARRANTIES OF THE COMPANY

The Company represents
and warrants to the Buyer that, except as set forth in the SEC Documents (as defined herein):

(a)                
Organization and Qualification. The Company and its Subsidiaries are corporations duly organized and validly existing
in good standing under the laws of the jurisdiction in which they are incorporated, and have the requisite corporate power to own
their properties and to carry on their business as now being conducted. Each of the Company and its Subsidiaries is duly qualified
as a foreign corporation to do business and is in good standing in every jurisdiction in which the nature of the business conducted
by it makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would
not have a material adverse effect on the Company and its Subsidiaries taken as a whole.

    	2

    	 

    

(b)                
Authorization, Enforcement, Compliance with Other Instruments. (i) The Company has the requisite corporate power
and authority to enter into and perform this Agreement and the other Transaction Documents and to issue the Securities and the
Conversion Shares in accordance with the terms hereof and thereof, (ii) the execution and delivery of the Transaction Documents
by the Company and the consummation by it of the transactions contemplated hereby and thereby, including, without limitation, the
issuance of the Securities the Conversion Shares and the reservation for issuance and the issuance of the Conversion Shares issuable
upon conversion or exercise thereof, have been duly authorized by the Company’s Board of Directors and no further consent
or authorization is required by the Company, its Board of Directors or its stockholders, (iii) the Transaction Documents have been
duly executed and delivered by the Company, (iv) the Transaction Documents constitute the valid and binding obligations of the
Company enforceable against the Company in accordance with their terms, except as such enforceability may be limited by general
principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to,
or affecting generally, the enforcement of creditors’ rights and remedies.

(c)                
Capitalization. The authorized capital stock of the Company consists of 1,000,000,000 shares of Common Stock, par
value $0.001 per share, of which about 106,000,000 shares of Common Stock are issued and outstanding as of the date hereof, and
10,000,000 shares of preferred stock, of which zero (0) shares are issued and outstanding as of the date hereof. All of such outstanding
shares have been validly issued and are fully paid and nonassessable. Except as disclosed in the SEC Documents (as defined in Section
3(f)), no shares of Common Stock are subject to preemptive rights or any other similar rights or any liens or encumbrances suffered
or permitted by the Company. Except as (i) disclosed in the SEC Documents, (ii) with respect to the issuance of shares of Common
Stock to persons who previously subscribed for shares of Common Stock in the amount of 13,500,000 shares that have not yet been
issued as of the date of this Agreement, and (iii) 1,750,000 shares of Company Common Stock issuable to a third party on or before
the Closing Date, (x) there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character
whatsoever relating either to or rights convertible into any shares of capital stock of the Company or any of its subsidiaries,
or contracts, commitments, understandings or arrangements by which the Company or any of its subsidiaries is or may become bound
to issue additional shares of capital stock of the Company or any of its subsidiaries or options, warrants, scrip, rights to subscribe
to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, any shares of capital
stock of the Company or any of its subsidiaries, (y) there are no agreements or arrangements under which the Company or any of
its subsidiaries is obligated to register the sale of any of their securities under the Securities Act (except pursuant to an S-8
Registration Statement to be filed with respect to the Consultants’ Shares (other than with respect to any consultant who
is an officer or director of the Company) and (z) there are no outstanding registration statements or comment letters from the
SEC or any other regulatory agency. There are no securities or instruments containing anti-dilution or similar provisions that
will be triggered by the issuance of the Securities as described in this Agreement. The Company has furnished to the Buyer true
and correct copies of the Company’s Articles of Incorporation, as amended and as in effect on the date hereof (the “Articles
of Incorporation”), and the Company’s By-laws, as in effect on the date hereof (the “By-laws”),
and the terms of all securities convertible into or exercisable for Common Stock and the material rights of the holders thereof
in respect thereto other than stock options issued to employees and consultants.

(d)                
Issuance of Securities. The Securities are duly authorized and, upon issuance in accordance with the terms hereof,
shall be duly issued, fully paid and nonassessable, are free from all taxes, liens and charges with respect to the issue thereof.
The Conversion Shares issuable upon conversion of the Securities have been duly authorized and reserved for issuance, subject to
the Company’s shareholders’ approval of the authorization of additional shares of Common Stock. Upon conversion or
exercise in accordance with the Securities the Conversion Shares will be duly issued, fully paid and nonassessable.

(e)                
No Conflicts. Except as disclosed in the SEC Documents, the execution, delivery and performance of the Transaction
Documents by the Company and the consummation by the Company of the transactions contemplated hereby will not (i) result in a violation
of the Articles of Incorporation, any certificate of designations of any outstanding series of preferred stock of the Company or
the By-laws or (ii) conflict with or constitute a default (or an event which with notice or lapse of time or both would become
a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture
or instrument to which the Company or any of its subsidiaries is a party, or result in a violation of any law, rule, regulation,
order, judgment or decree (including federal and state securities laws and regulations) applicable to the Company or any of its
subsidiaries or by which any property or asset of the Company or any of its subsidiaries is bound or affected. Except as disclosed
in the SEC Documents, neither the Company nor its subsidiaries is in violation of any term of or in default under its Articles
of Incorporation or By-laws or their organizational charter or by-laws, respectively, or any material contract, agreement, mortgage,
indenture, instrument, judgment, decree or order or any statute, rule or regulation applicable to the Company or its subsidiaries.
The business of the Company and its subsidiaries is not being conducted, and shall not be conducted in violation of any material
law, ordinance, or regulation of any governmental entity. Except as specifically contemplated by this Agreement and as required
under the Securities Act and any applicable state securities laws, the Company is not required to obtain any consent, authorization
or order of, or make any filing or registration with, any court or governmental agency in order for it to execute, deliver or perform
any of its obligations under or contemplated by this Agreement in accordance with the terms hereof or thereof. Except as disclosed
in the SEC Documents, all consents, authorizations, orders, filings and registrations which the Company is required to obtain pursuant
to the preceding sentence have been obtained or effected on or prior to the date hereof. The Company and its subsidiaries are unaware
of any facts or circumstance, which might give rise to any of the foregoing.

    	3

    	 

    

(f)                 
SEC Documents: Financial Statements. The Company shall file all reports, schedules, forms, statements and other documents
required to be filed by it with the SEC under of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)
(all of the foregoing filed prior to the date hereof or filed or amended after the date hereof and all exhibits included therein
and financial statements and schedules thereto and documents incorporated by reference therein, being hereinafter referred to as
the “SEC Documents”). The Company has delivered to the Buyer or their representatives, or made available through
the SEC’s website at http://www.sec.gov, true and complete copies of the SEC Documents. As of their respective dates, the
financial statements of the Company disclosed in the SEC Documents (the “Financial Statements”) complied as
to form in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with
respect thereto. Such financial statements have been prepared in accordance with generally accepted accounting principles, consistently
applied, during the periods involved (except (i) as may be otherwise indicated in such Financial Statements or the notes thereto,
or (ii) in the case of unaudited interim statements, to the extent they may exclude footnotes or may be condensed or summary statements)
and, fairly present in all material respects the financial position of the Company as of the dates thereof and the results of its
operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments).
Buyer acknowledges that the Company is current in its filing of SEC Documents. No other information provided by or on behalf of
the Company to the Buyer which is not included in the SEC Documents, including, without limitation, information referred to in
this Agreement, contains any untrue statement of a material fact or omits to state any material fact necessary in order to make
the statements therein, in the light of the circumstances under which they were made, not misleading.

(g)                
10(b)-5. The SEC Documents do not include any untrue statements of material fact, nor do they omit to state any material
fact required to be stated therein necessary to make the statements made, in light of the circumstances under which they were made,
not misleading.

(h)                
Absence of Litigation. Except as disclosed in the SEC Documents, there is no action, suit, proceeding, inquiry or
investigation before or by any court, public board, government agency, self-regulatory organization or body pending against or
affecting the Company, the Common Stock or any of the Company’s subsidiaries, wherein an unfavorable decision, ruling or
finding would (i) have a material adverse effect on the transactions contemplated hereby (ii) adversely affect the validity or
enforceability of, or the authority or ability of the Company to perform its obligations under, this Agreement or any of the documents
contemplated herein, or (iii) except as expressly disclosed in the SEC Documents, have a material adverse effect on the business,
operations, properties, financial condition or results of operations of the Company and its subsidiaries taken as a whole.

(i)                  
Acknowledgment Regarding Buyer’s Purchase of the Securities. The Company acknowledges and agrees that the Buyer
is acting solely in the capacity of an arm’s length purchaser with respect to this Agreement and the transactions contemplated
hereby. The Company further acknowledges that the Buyer is not acting as a financial advisor or fiduciary of the Company (or in
any similar capacity) with respect to this Agreement and the transactions contemplated hereby and any advice given by the Buyer
or any of their respective representatives or agents in connection with this Agreement and the transactions contemplated hereby
is merely incidental to such Buyer’s purchase of the Securities or the Conversion Shares. The Company further represents
to the Buyer that the Company’s decision to enter into this Agreement has been based solely on the independent evaluation
by the Company and its representatives.

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

(k)                
No Integrated Offering. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf
has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances
that would require registration of the Securities or the Conversion Shares under the Securities Act or cause this offering of the
Securities or the Conversion Shares to be integrated with prior offerings by the Company for purposes of the Securities Act.

    	4

    	 

    

(l)                  
Internal Accounting Controls. Except as set forth in the SEC Documents, the Company and each of its subsidiaries
maintain a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed
in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with generally accepted accounting principles and to maintain asset accountability,
and (iii) the recorded amounts for assets is compared with the existing assets at reasonable intervals and appropriate action is
taken with respect to any differences.

(m)               
No Material Adverse Breaches, etc. Except as set forth in the SEC Documents, neither the Company nor any of its subsidiaries
is subject to any charter, corporate or other legal restriction, or any judgment, decree, order, rule or regulation which in the
judgment of the Company’s officers has or is expected in the future to have a material adverse effect on the business, properties,
operations, financial condition, results of operations or prospects of the Company or its subsidiaries. Except as set forth in
the SEC Documents, neither the Company nor any of its subsidiaries is in breach of any contract or agreement which breach, in the
judgment of the Company’s officers, has or is expected to have a material adverse effect on the business, properties, operations,
financial condition, results of operations or prospects of the Company or its subsidiaries.

(n)                
Tax Status. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction,
and the officers of the Company know of no basis for any such claim.

(o)                
Certain Transactions. Except as set forth in the SEC Documents, and except for arm’s length transactions pursuant
to which the Company makes payments in the ordinary course of business upon terms no less favorable than the Company could obtain
from third parties, none of the officers, directors, or employees of the Company is presently a party to any transaction with the
Company (other than for services as employees, consultants, officers and directors), including any contract, agreement or other
arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or
otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any corporation,
partnership, trust or other entity in which any officer, director, or any such employee has a substantial interest or is an officer,
director, trustee or partner.

(p)                
Rights of First Refusal. The Company is not obligated to offer the securities offered hereunder on a right of first
refusal basis or otherwise to any third parties including, but not limited to, current or former shareholders of the Company, underwriters,
brokers, agents or other third parties.

4.                  
COVENANTS

(a)                
Best Efforts. Each party shall use its best efforts timely to satisfy each of the conditions to be satisfied by it
as provided in Sections 6 and 7 of this Agreement.

(b)                
Form D. The Company agrees to file a Form D with respect to the Securities as required under Regulation D and to
provide a copy thereof to Buyer promptly after such filing. The Company shall, on or before the Closing Date, take such action
as the Company shall reasonably determine is necessary to qualify the Securities , or obtain an exemption for the Securities for
sale to the Buyer at the Closing pursuant to this Agreement under applicable securities or “Blue Sky” laws of the states
of the United States, and shall provide evidence of any such action so taken to the Buyer on or prior to the Closing Date.

(c)                
Reporting Status. Until the earlier of (i) the date as of which the Buyer may sell all of the Conversion Shares without
restriction pursuant to the provisions applicable to non-affiliates under Rule 144 promulgated under the Securities Act (or successor
thereto), or (ii) the date on which (A) the Buyer shall have sold all the Conversion Shares and (B) none of the Securities are
outstanding (the “Registration Period”), the Company shall file in a timely manner all reports required to be
filed with the SEC pursuant to the Exchange Act and the regulations of the SEC thereunder, and the Company shall not terminate
its status as an issuer required to file reports under the Exchange Act even if the Exchange Act or the rules and regulations thereunder
would otherwise permit such termination.

    	5

    	 

    

(d)                
Reservation of Shares. The Company shall take all action reasonably necessary to at all times have authorized, and
reserved for the purpose of issuance, such number of shares of Common Stock as shall be necessary to effect the issuance of all
of the Conversion Shares due to Buyer upon conversion of any derivative security now or hereinafter held by Buyer, including, without
limitation, the First Debenture, the Second Debenture and the Third Debenture (collectively, the “59FF Debentures”).
A default event under this Agreement and the 59FF Debentures shall occur if the Company does not have available such number of
shares of Common Stock as shall be necessary to effect the issuance of all of the Conversion Shares due to Buyer upon conversion
of the 59FF Debentures for a period of greater than 45 consecutive days commencing 60 days after the Closing Date.

(e)                
Listings or Quotation. The Company shall maintain the Common Stock’s authorization for quotation on the OTCQB
or another U.S. public stock trading market or stock exchange.

(f)                 
Fees and Expenses. Each of the Company and the Buyer shall pay all costs and expenses incurred by such party in connection
with the negotiation, investigation, preparation, execution and delivery of the Transaction Documents.

(g)                
Corporate Existence. So long as any of the Securities remain outstanding, the Company shall not directly or indirectly
consummate any merger, reorganization, restructuring, reverse stock split consolidation, sale of all or substantially all of the
Company’s assets or any similar transaction or related transactions (each such transaction, an “Organizational Change”)
unless, prior to the consummation an Organizational Change, the Company obtains the written consent of Buyer. In any such case,
the Company will make appropriate provision with respect to such holders’ rights and interests to insure that the provisions
of this Section 4(g) will thereafter be applicable to the Securities.

(h)                
Transactions With Affiliates. So long as any Securities are outstanding, the Company shall not, and shall cause each
of its subsidiaries not to, enter into, amend, modify or supplement, or permit any subsidiary to enter into, amend, modify or supplement
any agreement, transaction, commitment, or arrangement with any of its or any subsidiary’s officers, directors, person who
were officers or directors at any time during the previous two (2) years, stockholders who beneficially own five percent (5%) or
more of the Common Stock, or Affiliates (as defined below) or with any individual related by blood, marriage, or adoption to any
such individual or with any entity in which any such entity or individual owns a five percent (5%) or more beneficial interest
(each a “Related Party”), except for (a) customary employment and consulting arrangements and benefit programs
on reasonable terms, (b) any investment in an Affiliate of the Company, (c) any agreement, transaction, commitment, or arrangement
on an arms-length basis on terms no less favorable than terms which would have been obtainable from a person other than such Related
Party, (d) any agreement transaction, commitment, or arrangement which is approved by a majority of the disinterested directors
of the Company, for purposes hereof, any director who is also an officer of the Company or any subsidiary of the Company shall
not be a disinterested director with respect to any such agreement, transaction, commitment, or arrangement. “Affiliate”
for purposes hereof means, with respect to any person or entity, another person or entity that, directly or indirectly, (i) has
a ten percent (10%) or more equity interest in that person or entity, (ii) has ten percent (10%) or more common ownership with
that person or entity, (iii) controls that person or entity, or (iv) shares common control with that person or entity. “Control”
or “controls” for purposes hereof means that a person or entity has the power, direct or indirect, to conduct
or govern the policies of another person or entity. Nothing in this Section 4(h) shall preclude the Company from filing the S-8
Registration Statement as provided in Section 3(c).

(i)                  
Transfer Agent. The Company covenants and agrees that, in the event that the Company’s agency relationship
with the transfer agent should be terminated for any reason prior to a date which is two (2) years after the Closing Date, the
Company shall immediately appoint a new transfer agent and shall require that the new transfer agent execute and agree to be bound
by the terms of the Transfer Agent Instructions (as defined herein).

(j)                  
Current Filings. The Company shall file all reports required under Section 13 of the Securities Exchange Act of 1934
within the time parameters mandated by the Rules of the Securities and Exchange Commission.

 

(k)                
Affiliate Conversion. A $100,000 portion of the Company’s outstanding balance due to Patrick Bertagna shall
be converted into common shares of the Company at a rate equal to no less than $0.01 per share within 30 days of the Closing Date.

    	6

    	 

    

(l)                  
Consulting Agreement. The Company shall execute a mutually agreeable consulting agreement (“Consulting Agreement”)
with Core Strategic Services, LLC (“CSS”) within 5 business days of the Closing Date.

(m)               
Right of First Refusal. In the event that the Company intends to issue additional securities in exchange for additional
financing at any time prior to the date upon which all amounts due under any debt now or hereinafter held by Buyer, including,
without limitation, the 59FF Debentures (each, a “Proposed Financing”), the Company hereby grants Buyer the
right of first refusal (“ROFR”) to participate in whole or in part in the Proposed Financing and to purchase
any portion to all of the Proposed Securities on terms that are at least as favorable to Buyer as to any third party that has offered
to participate in the Proposed Financing; provided, however, that (i) Buyer shall issue Company a written notice confirming Buyer’s
exercise of its ROFR and intention to participate in such Proposed Financing subject to execution of mutually agreeable definitive
agreements (“ROFR Exercise Notice”) within no more than fifteen (15) days of Buyer’s receipt of the Company’s
written notice in respect of each such Proposed Financing (“ROFR Notice”), which notice shall include a copy of any
third party proposals received by Company in connection with such Proposed Financing; and, that (ii) Buyer shall forfeit its right
to participate in the specific Proposed Financing described in the Company’s ROFR Notice if Buyer fails to provide its timely
ROFR Exercise Notice for any such Proposed Financing.

(n)                
Favored Nation. So long as any amounts under the Third Debenture are outstanding, the Company shall not, without
the prior written consent of the Buyer, issue or sell any shares of Company capital stock, or issue or sell any derivative, warrant,
option, right, contract, call, or other security instrument granting the holder thereof, the right to acquire shares of Company
capital stock without consideration or for a consideration per share basis less than the fifty percent (50%) of the weighted average
Conversion Price (as such term is defined in the Third Debenture) (the “WAP”) received by the Buyer upon conversion
of any Company securities now and hereinafter owned by Buyer, including, without limitation, the 59FF Debentures (which lower per
share third party basis shall be referred to herein as the “Threshold Price”). In the event and to the extent
that the Company issues any shares of Company capital stock to any third party on a per share basis less than the WAP, then the
Company shall issue additional shares of Company Common Stock (or other class of Company capital stock as may be applicable) to
Buyer until such time as the WAP is equal to the Threshold Price based on a lookback period of 120 days (the “Lookback
Period”) for all conversions occurring during that Lookback Period.

(o)                
Further Assurances; Cooperation. The Company shall use its best efforts to cooperate with the Company and to diligently
perform under the Transaction Documents. At and after the Closing, the Company shall execute and deliver such further instruments
of conveyance and transfer as Buyer may reasonably request to convey and transfer effectively to Buyer the Securities and any and
all amounts and shares of Common Stock due and payable thereunder.

5.                  
TRANSFER AGENT INSTRUCTIONS

(a)                
The Company shall issue the Transfer Agent Instructions to its transfer agent in the form attached hereto as Exhibit
C for the purpose of having certificates issued, registered in the name of the Buyer or its respective nominee(s), for
the Conversion Shares (as such term is defined in the Third Debenture) representing such amounts of Securities as specified from
time to time by the Buyer to the Company upon conversion of the Securities, for interest owed pursuant to the Securities, and for
any Liquidated Damages (as such term is defined in the Third Debenture) or other amount that may be payable under the Transaction
Documents.

(b)                
The Company shall not change its transfer agent without the express written consent of the Buyer, which may be withheld
by the Buyer in its sole discretion.

(c)                
The Company warrants that no instruction other than the Transfer Agent Instructions referred to in this Section 5 will be
given by the Company to its transfer agent and that the Conversion Shares shall otherwise be freely transferable on the books and
records of the Company as and to the extent provided in this Agreement.

(d)                
Nothing in this Section 5 shall affect in any way the Buyer’s obligations and agreement to comply with all applicable
securities laws upon resale of Conversion Shares. If the Buyer provides the Company with an opinion of counsel, in form, scope
and substance customary for opinions of counsel in comparable transactions to the effect that registration of a resale by the Buyer
of any of the Conversion Shares is not required under the Securities Act, the Company shall within two (2) business days instruct
its transfer agent to issue one or more certificates in such name and in such denominations as specified by the Buyer.

    	7

    	 

    

(e)                
The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Buyer by vitiating
the intent and purpose of the transaction contemplated hereby. Accordingly, the Company acknowledges that the remedy at law for
a breach of its obligations under this Section 5 will be inadequate and agrees, in the event of a breach or threatened breach by
the Company of the provisions of this Section 5, that the Buyer shall be entitled, in addition to all other available remedies,
to an injunction restraining any breach and requiring immediate issuance and transfer, without the necessity of showing economic
loss and without any bond or other security being required.

6.                  
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 Closings is subject to the satisfaction, at or before
the Closing Date, of each of the following conditions, provided that these conditions are for the Company’s sole benefit
and may be waived by the Company at any time in its sole discretion: (a) Buyer shall have executed the Transaction Documents and
delivered them to the Company; and (b) Buyer shall have delivered to the Company the cash portion of the Purchase Price payable
at the Closing.

7.                  
CONDITIONS TO THE BUYER’S OBLIGATION TO PURCHASE

The obligation of
the Buyer hereunder to purchase the Securities and to pay the Purchase Price pursuant to Section 1(b) hereof is subject to the
satisfaction, at or before the Closing Date or any Purchase Price payment date, of each of the following conditions:

(a)                
The Company shall have executed the Transaction Documents, including, without limitation,
the Security Agreement and the Pledge Agreement, and delivered them to the Buyer.

(b)                
The Company shall have issued, executed and delivered to the Buyer the Securities, including
the Second Debenture and the Third Debenture.

(c)                
The Company shall have delivered to the Escrow Agent (as such term is defined in the Escrow
Agreement) the Pledged Securities.

(d)                
The representations and warranties of the Company shall be true and correct in all material
respects as of the date when made and as of the Closing Date as though made at that time (except for representations and warranties
that speak as of a specific date). The Company shall have performed, satisfied and complied in all material respects with the covenants,
agreement and conditions required by this Agreement and the 59FF Debentures to be performed, satisfied or complied with by the
Company at or prior to the Closing Date or any Purchase Price payment date, and through and including the date upon which the Purchase
Price has been fully paid. If requested by the Buyer, the Buyer shall have received a certificate, executed by the President of
the Company to the foregoing effect and as to such other matters as may be reasonably requested by the Buyer.

(e)                
The Company shall have provided to the Buyer a certificate of good standing on or before September
30, 2013.

(f)                 
The Transfer Agent Instructions, in form and substance satisfactory to the Buyer, shall have
been delivered to and acknowledged in writing by the Company’s transfer agent.

8.                  
INDEMNIFICATION

In consideration
of the Buyer’s execution and delivery of this Agreement and acquiring the Securities and the Conversion Shares hereunder,
and in addition to all of the Company’s other obligations under this Agreement, the Company shall defend, protect, indemnify
and hold harmless the Buyer and each other holder of the Securities and the Conversion Shares, and all of their officers, directors,
employees and agents (including, without limitation, those retained in connection with the transactions contemplated by this
Agreement) (collectively, the “Buyer Indemnitees”) from and against any and all actions, causes of action, suits,
claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection therewith (irrespective of whether
any such Buyer Indemnitee is a party to the action for which indemnification hereunder is sought), and including reasonable attorneys’
fees and disbursements (the “Indemnified Liabilities”), incurred by the Buyer Indemnitees or any of them as
a result of, or arising out of, or relating to (a) any misrepresentation or breach of any representation or warranty made by the
Company in this Agreement, the other Transaction Documents or any other certificate, instrument or document contemplated hereby
or thereby, (b) any breach of any covenant, agreement or obligation of the Company contained in this Agreement, the other Transaction
Documents or any other certificate, instrument or document contemplated hereby or thereby, or (c) any cause of action, suit or
claim brought or made by a third party against such Indemnitee and arising out of or resulting from any transaction financed or
to be financed in whole or in part, directly or indirectly, with the proceeds of the issuance of the Securities or the status of
the Buyer or holder of the Securities the Conversion Shares, as a Buyer of Securities in the Company. To the extent that the foregoing
undertaking by the Company may be unenforceable for any reason, the Company shall make the maximum contribution to the payment
and satisfaction of each of the Indemnified Liabilities, which is permissible under applicable law.

    	8

    	 

    

9.                  
GOVERNING LAW: MISCELLANEOUS

(a)                
Governing Law. This Agreement shall be governed by and interpreted in accordance with the laws of the State of New
Jersey, without regard to the principles of conflict of laws. The Company and the Buyer expressly consent to the jurisdiction and
venue of the Superior Court of New Jersey, Bergen County, for any litigation between the parties.

(b)                
Specific Performance. The parties hereto recognize that any breach of the terms this Agreement may give rise to irreparable
harm for which money damages would not be an adequate remedy, and accordingly agree that any non-breaching party shall be entitled
to enforce the terms of this Agreement by a decree of specific performance without the necessity of proving the inadequacy as a
remedy of money damages. If specific performance is elected as a remedy hereunder, such remedy shall be in addition to any other
remedies available at law or equity.

(c)                
Counterparts. This Agreement may be executed in two or more identical counterparts, all of which shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other
party. In the event any signature page is delivered by facsimile transmission, the party using such means of delivery shall cause
four (4) additional original executed signature pages to be physically delivered to the other party within five (5) days of the
execution and delivery hereof.

(d)                
Headings; Severability. The headings of this Agreement are for convenience of reference and shall not form part of,
or affect the interpretation of, this Agreement. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction,
such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that
jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction.

(e)                
Entire Agreement, Amendments. This Agreement supersedes all other prior oral or written agreements between the Buyer,
the Company, their affiliates and persons acting on their behalf with respect to the matters discussed herein, and 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 any 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 party to be charged with enforcement.

(f)                 
Notices. Any notices, consents, waivers, or other communications required or permitted to be given under the terms
of this Agreement must be in writing and will be deemed to have been delivered (i) upon receipt, when delivered personally; (ii)
upon confirmation of receipt, when sent by facsimile; (iii) three (3) days after being sent by U.S. certified mail, return receipt
requested, or (iv) one (1) day after deposit with a nationally recognized overnight delivery service, in each case properly addressed
to the party to receive the same. Each party shall provide five (5) days’ prior written notice to the other party of any
change in address or facsimile number.

(g)                
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective
successors and assigns. Neither the Company nor any Buyer shall assign this Agreement or any rights or obligations hereunder without
the prior written consent of the other party hereto.

(h)                
No Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective
permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

(i)                  
Publicity. The Company shall issue no press release or public disclosure involving the Transaction Documents and/or
the Financing other than in filings required by the Exchange Act in the absence of the Buyer’s prior written consent.

    	9

    	 

    

(j)                  
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.

(k)                
Termination. In the event that the Closing shall not have occurred with respect to the Buyer on or before five (5)
business days from the date hereof due to the Company’s or the Buyer’s failure to satisfy the conditions set forth
in Sections 6 and 7 above (and the non-breaching party’s failure to waive such unsatisfied condition(s)), the non-breaching
party shall have the option to terminate this Agreement with respect to such breaching party at the close of business on such date
without liability of any party to any other party.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

- SIGNATURE PAGE FOLLOWS]

    	10

    	 

    

IN WITNESS WHEREOF the parties
have duly executed, or caused their duly authorized representative, to execute this Securities Purchase Agreement.

	 	112359 FACTOR FUND, LLC
	 	 
	 	 
	 	By:/s/ Mary Carroll
	 	Name:Mary Carroll
	 	Title:Manager
	 	 
	GTX CORP.	 
	 	 
	 	 
	By:/s/ Patrick Bertagna	 
	Name: Patrick Bertagna	 
	Title:Chief Executive Officer

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