Document:

THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
AND, ACCORDINGLY, MAY NOT BE TRANSFERRED UNLESS (I) SUCH SECURITIES HAVE BEEN REGISTERED FOR SALE PURSUANT TO THE SECURITIES ACT
OF 1933, AS AMENDED, (II) SUCH SECURITIES MAY BE SOLD PURSUANT TO RULE 144, OR (III) THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL
REASONABLY SATISFACTORY TO IT THAT SUCH TRANSFER MAY LAWFULLY BE MADE WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS
AMENDED.

 

BITCOIN
SHOP, INC.

 

Warrant

 

Expires
April [  ], 2020

 

	 	Number
of Shares: Up to ___________
	 	 
	Date
    of Issuance: April [  ], 2015 (“Issuance Date”) 	 

 

BITCOIN
SHOP, INC., a Nevada corporation (the “Company”), hereby certifies that, for good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, [•name of holder], the registered holder hereof or its permitted
assigns (the “Holder”), is entitled, subject to the terms set forth below, to purchase from the Company, at
the Exercise Price (as defined below) then in effect, upon exercise of this Warrant (including any Warrants issued in exchange,
transfer or replacement hereof, this “Warrant”), at any time or times on or after the date hereof (the “Exercisability
Date”), but not after 11:59 p.m., New York time, on the Expiration Date (as defined below) the number of shares, subject
to adjustment as provided herein, of fully paid, non-assessable shares of Common Stock (as defined below) set forth below in Section
1(b) (the “Warrant Securities”). This Warrant is one of a series of Warrants being issued pursuant to that
certain Subscription Agreement, dated the date hereof (the “Subscription Date”), by and between the Company
and the Holder (the “Subscription Agreement”). Except as otherwise defined herein, capitalized terms used in
this Warrant shall have the meanings set forth in the Subscription Agreement.

 

1. EXERCISE
OF WARRANT.

 

(a) Mechanics
of Exercise. Subject to the terms and conditions hereof, this Warrant may be exercised by the Holder on any day on or after
the Exercisability Date, in whole or in part, by (i) delivery of a written notice, in the form attached hereto as Exhibit A (the
“Exercise Notice”), of the Holder’s election to exercise this Warrant and (ii) (A) payment to the Company
by no later than two (2) Trading Days of an amount equal to the applicable Exercise Price in effect on the date of exercise multiplied
by the number of Warrant Securities as to which this Warrant is being exercised (the “Aggregate Exercise Price”)
in cash or by wire transfer of immediately available funds or (B) by delivery of the Exercise Notice to the Company specifying
that this Warrant is being exercised as a Cashless Exercise (as defined in Section 1(d)). The Holder shall not be required
to deliver the original Warrant in order to effect an exercise hereunder. Execution and delivery of the Exercise Notice with respect
to less than all of the Warrant Securities shall have the same effect as cancellation of the original Warrant and issuance of
a new Warrant evidencing the right to purchase the remaining number of Warrant Securities. On or before the first (1st)
Trading Day following the date on which the Company has received an Exercise Notice, the Company shall transmit by facsimile an
acknowledgment of confirmation of receipt of such Exercise Notice to the Holder and the Company’s transfer agent (the “Transfer
Agent”). On or before the third (3rd) Trading Day following the date on which the Company has received such
Exercise Notice (the “Share Delivery Date”), the Company shall, (X) provided that the Transfer Agent is participating
in The Depository Trust Company (“DTC”) Fast Automated Securities Transfer Program, upon the request of the
Holder, credit such aggregate number of Warrant Securities to which the Holder is entitled pursuant to such exercise to the Holder’s
or its designee’s balance account with DTC through its Deposit/Withdrawal At Custodian system, or (Y) if the Transfer Agent
is not participating in the DTC Fast Automated Securities Transfer Program, issue and dispatch by overnight courier to the address
as specified in the Exercise Notice, a certificate, registered in the Company’s share register in the name of the Holder
or its designee, for the number of shares of Common Stock to which the Holder is entitled pursuant to such exercise. Upon delivery
of the Exercise Notice, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant
Securities with respect to which this Warrant has been exercised, irrespective of the date such Warrant Securities are credited
to the Holder’s DTC account or the date of delivery of the certificates evidencing such Warrant Securities, as the case
may be. If this Warrant is submitted in connection with any exercise pursuant to this Section 1(a) and the number of Warrant
Securities represented by this Warrant submitted for exercise is greater than the number of Warrant Securities being acquired
upon an exercise, then the Company shall as soon as practicable and in no event by no later than three (3) Business Days after
any exercise and at its own expense, issue a new Warrant (in accordance with Section 7(d)) representing the right to purchase
the number of Warrant Securities purchasable immediately prior to such exercise under this Warrant, less the number of Warrant
Securities with respect to which this Warrant is exercised. No fractional shares of Common Stock are to be issued upon the exercise
of this Warrant, but rather the number of shares of Common Stock to be issued shall be rounded up to the nearest whole number.
The Company shall pay any and all transfer taxes which may be payable with respect to the issuance and delivery of Warrant Securities
upon exercise of this Warrant.

 

    	 

    	 

    

  

(b) Exercise
Price. For purposes of this Warrant, “Exercise Price” means $0.375, subject to adjustment as provided herein.
The Warrant Securities means [•] shares of Common Stock.

 

(c) Company’s
Failure to Timely Deliver Securities. If within three (3) Trading Days of receipt of the Exercise Notice, the Company shall
fail to issue to the Holder a certificate for the number of shares of Common Stock to which the Holder is entitled and register
such shares of Common Stock on the Company’s share register or credit the Holder’s balance account with DTC for such
number of shares of Common Stock to which the Holder is entitled upon the Holder’s exercise of this Warrant, and if on or
after such third Trading Day the Holder purchases (or any third party on behalf of such Holder or for the Holder’s account
purchases, in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder
of shares of Common Stock issuable upon such exercise that the Holder anticipated receiving from the Company (a “Buy-In”),
then the Company shall, within three (3) Trading Days after the Holder’s written request and at the Holder’s discretion,
either (i) pay cash to the Holder in an amount equal to the Holder’s total purchase price (including brokerage commissions,
if any) for the shares of Common Stock so purchased (the “Buy-In Price”), at which point the Company’s
obligation to deliver such certificate (and to issue such Warrant Securities) or credit the Holder’s balance account with
DTC for such Warrant Securities shall terminate, or (ii) promptly honor its obligation to deliver to the Holder a certificate
or certificates representing such Warrant Securities or credit the Holder’s balance account with DTC for the number of such
Warrant Securities and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of
(A) such number of shares of Common Stock, multiplied by (B) the Closing Bid Price on the Share Delivery Date.

 

(d) Cashless
Exercise. Notwithstanding anything contained herein to the contrary if a registration statement under the Securities Act providing
for the resale of the Common Stock underlying the Warrant is not then in effect then, at any time, the Holder may, in its sole
discretion, exercise this Warrant in whole or in part and, in lieu of making the cash payment otherwise contemplated to be made
to the Company upon such exercise in payment of the Aggregate Exercise Price, elect instead to receive upon such exercise the
“Net Number” of shares of Common Stock determined according to the following formula (a “Cashless
Exercise”):

 

	Net
    Number = 	(A
    x B) - (A x C)	 
	 	B	 

 

For
purposes of the foregoing formula:

 

A
= the total number of shares with respect to which this Warrant is then being exercised.

 

B
= the arithmetic average of the Closing Sale Price of the shares of Common Stock for the Trading Day immediately preceding the
date of the Exercise Notice.

 

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C
= the Exercise Price then in effect for the applicable Warrant Securities at the time of such exercise.

 

(e) Rule
144. For purposes of Rule 144(d) promulgated under the Securities Act, as in effect on the date hereof, assuming the Holder
is not an affiliate of the Company, it is intended that the Warrant Securities issued in a Cashless Exercise shall be deemed to
have been acquired by the Holder, and the holding period for the Warrant Securities shall be deemed to have commenced, on the
date this Warrant was originally issued pursuant to the Subscription Agreement.

 

(f) Disputes.
In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant Securities,
the Company shall promptly issue to the Holder the number of Warrant Securities that are not disputed.

 

(g) Registration
of Warrant. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant
Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered
Holder of record of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the
Holder, and for all other purposes, absent actual notice to the contrary.

 

(h) Registration
of Transfers. The Company shall register the transfer of any portion of this Warrant in the Warrant Register, upon surrender
of this Warrant, with the Form of Assignment attached hereto duly completed and signed, to the Transfer Agent or to the Company
at its address specified herein. Upon any such registration of transfer, a new warrant to purchase Common Stock, in substantially
the form of this Warrant (any such new warrant, a “New Warrant”), evidencing the portion of this Warrant so
transferred shall be issued to the transferee and a New Warrant evidencing the remaining portion of this Warrant not so transferred,
if any, shall be issued to the transferring Holder. The acceptance of the New Warrant by the transferee thereof shall be deemed
the acceptance by such transferee of all of the rights and obligations of a holder of a Warrant.

 

(i) Call
Provision. Subject to the provisions hereof, if, after the Issuance Date, (i) the VWAP for each of 15 consecutive Trading
Days (the “Measurement Period,” which 15 consecutive Trading Day period shall not have commenced until after
the Exercisability Date) exceeds $0.938 (subject to adjustment for forward and reverse stock splits, recapitalizations, stock
dividends and the like after the Exercisability Date), (ii) the average daily dollar trading volume for such Measurement Period
exceeds $200,000 per Trading Day and (iii) the Holder is not in possession of any information that constitutes, or might constitute,
material non-public information which was provided by the Company, then the Company may, within 1 Trading Day of the end of such
Measurement Period, call for cancellation of all or any portion of this Warrant for which a Exercise Notice has not yet been delivered
(such right, a “Call”) for consideration equal to $.001 per Warrant Share. To exercise this right, the Company
must deliver to the Holder an irrevocable written notice (a “Call Notice”), indicating therein the portion
of unexercised portion of this Warrant to which such notice applies. If the conditions set forth below for such Call are satisfied
from the period from the date of the Call Notice through and including the Call Date (as defined below), then any portion of this
Warrant subject to such Call Notice for which a Exercise Notice shall not have been received by the Call Date will be cancelled
at 6:30 p.m. (New York City time) on the tenth Trading Day after the date the Call Notice is received by the Holder (such date
and time, the “Call Date”). Any unexercised portion of this Warrant to which the Call Notice does not pertain
will be unaffected by such Call Notice. In furtherance thereof, the Company covenants and agrees that it will honor all Exercise
Notices with respect to Warrant Securities subject to a Call Notice that are tendered through 6:30 p.m. (New York City time) on
the Call Date. The parties agree that any Exercise Notice delivered following a Call Notice which calls less than all the Warrants
shall first reduce to zero the number of Warrant Securities subject to such Call Notice prior to reducing the remaining Warrant
Securities available for purchase under this Warrant. For example, if (A) this Warrant then permits the Holder to acquire 100
of the Warrant Securities, (B) a Call Notice pertains to of the 75 Warrant Securities, and (C) prior to 6:30 p.m. (New York City
time) on the Call Date the Holder tenders a Exercise Notice in respect of 50 of the Warrant Securities, then (x) on the Call Date
the right under this Warrant to acquire 25 of the Warrant Securities will be automatically cancelled, (y) the Company, in the
time and manner required under this Warrant, will have issued and delivered to the Holder 50 of the Warrant Securities in respect
of the exercises following receipt of the Call Notice, and (z) the Holder may, until the Termination Date, exercise this Warrant
for 25 of the Warrant Securities (subject to adjustment as herein provided and subject to subsequent Call Notices). Subject again
to the provisions of this Section 1(i), the Company may deliver subsequent Call Notices for any portion of this Warrant
for which the Holder shall not have delivered a Exercise Notice. Notwithstanding anything to the contrary set forth in this Warrant,
the Company may not deliver a Call Notice or require the cancellation of this Warrant (and any such Call Notice shall be void),
unless, from the beginning of the Measurement Period through the Call Date, (1) the Company shall have honored in accordance with
the terms of this Warrant all Exercise Notices delivered by 6:30 p.m. (New York City time) on the Call Date, and (2) a registration
statement shall be effective as to all Warrant Securities and the prospectus thereunder available for use by the Holder for the
resale of all such Warrant Securities, and (3) the Common Stock shall be listed or quoted for trading on the Company’s Principal
Market, and (4) there is a sufficient number of authorized shares of Common Stock for issuance of all Securities issued pursuant
to the Subscription Agreement, and (5) the issuance of the shares shall not cause a breach of any provision of Section 1(i)
herein. The Company’s right to call the Warrants under this Section 1(i) shall be exercised ratably among the
Holders based on each Holder’s initial purchase of Warrants.

 

    	- 3 -

    	 

    

  

2. ADJUSTMENT
OF EXERCISE PRICE AND NUMBER OF WARRANT SECURITIES. The Exercise Price and the number of Warrant Securities issuable upon
exercise of this Warrant, as applicable, shall be adjusted from time to time as follows:

 

(a) Adjustment
upon Subdivision or Combination of Common Stock. If the Company at any time on or after the Subscription Date subdivides (by
any stock split, stock dividend, recapitalization, reorganization, scheme, arrangement or otherwise) its outstanding shares of
Common Stock into a greater number of shares, the Exercise Price in effect immediately prior to such subdivision will be proportionately
reduced and the number of Warrant Securities will be proportionately increased. If the Company at any time on or after the Subscription
Date combines (by any stock split, stock dividend, recapitalization, reorganization, scheme, arrangement or otherwise) its outstanding
shares of Common Stock into a smaller number of shares, the Exercise Price in effect immediately prior to such combination will
be proportionately increased and the number of Warrant Securities will be proportionately decreased. Any adjustment under this
Section 2(a) shall become effective at the close of business on the date the subdivision or combination becomes effective.

 

(b) Issuance
of Additional Equity or Equity Linked Securities. For a period of two (2) years from the Issuance Date, other than in connection
with (i) full or partial consideration in connection with a strategic merger, acquisition, consolidation or purchase of substantially
all of the securities or assets of a corporation or other entity which holders of such securities or debt are not at any time
granted registration rights equal to or greater than those granted to the Subscribers, (ii) the Company’s issuance of securities
in connection with strategic license agreements and other partnering arrangements so long as such issuances are not primarily
for the purpose of raising capital and which holders of such securities or debt are not at any time granted registration rights
equal to or greater than those granted to the Subscribers, (iii) the Company’s issuance of Common Stock or the issuances
or grants of options to purchase Common Stock to employees, and directors, pursuant to plans that have been approved by a majority
of the stockholders and a majority of the independent members of the board of directors of the Company or in existence as such
plans are constituted on the Issuance Date, (iv) the Company’s issuance of securities upon the exercise or exchange of or
conversion of any securities exercisable or exchangeable for or convertible into shares of Common Stock issued and outstanding
on the Issuance Date on the terms in effect on the Issuance Date, (v) an issuance by the Company of securities resulting from
the exercise of warrants or conversion of the Shares, (vi) the Company’s issuance of up to 450,000 shares of Common Stock
to its advisors pursuant the independent contractor agreements dated October 1, 2014, and (vii) any and all securities required
to be assumed by the Company by the terms thereof as a result of any of the foregoing even if issued by a predecessor acquired
in connection with a business combination, merger or share exchange (collectively, the foregoing (i) through (vii) are “Excepted
Issuances”), if at any time the Company shall issue any Common Stock or securities convertible into or exercisable for
shares of Common Stock (or modify any of the foregoing which may be outstanding) to any person or entity (including issuances
to service providers or consultants) at a price per share or conversion or exercise price per share which shall be less than Exercise
Price then in effect, (the “Lower Price Issuance”), then the Exercise Price upon each such issuance shall be
reduced, concurrently with such issue or sale, to the price that is the product of: (i) one hundred and twenty five percent (125%),
and (ii) the issuance price of the Lower Price Issuance.

 

(c) Other
Events. If any event occurs of the type contemplated by the provisions of this Section 2 but not expressly provided
for by such provisions (including, without limitation, the granting of stock appreciation rights or phantom stock rights), then
the Company’s Board of Directors will make an appropriate adjustment in the Exercise Price and the number of Warrant Securities
so as to protect the rights of the Holder; provided that no such adjustment pursuant to this Section 2(c) will increase
the Exercise Price or decrease the number of Warrant Securities as otherwise determined pursuant to this Section 2.

 

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3. RIGHTS
UPON DISTRIBUTION OF ASSETS.

 

(a) If
at any time or from time to time the holders of Common Stock of the Company (or any shares of stock or other securities at the
time receivable upon the exercise of this Warrant) shall have received or become entitled to receive, without payment therefor:

 

	 	(i)	Common
    Stock or any shares of stock or other securities which are at any time directly or indirectly convertible into or exchangeable
    for Common Stock, or any rights or options to subscribe for, purchase or otherwise acquire any of the foregoing by way of
    dividend or other distribution (other than a dividend or distribution covered in Section 2(a) above);
	 	 	 
	 	(ii)	any
    cash paid or payable otherwise than as a cash dividend; or
	 	 	 
	 	(iii)	Common
    Stock or additional stock or other securities or property (including cash) by way of spinoff, split-up, reclassification,
    combination of shares or similar corporate rearrangement (other than shares of Common Stock pursuant to Section 2(a)
    above), 

 

then
and in each such case, the Holder hereof will, upon the exercise of this Warrant, be entitled to receive, in addition to the number
of shares of Common Stock receivable thereupon, and without payment of any additional consideration therefor, the amount of stock
and other securities and property (including cash in the cases referred to in clauses (ii) and (iii) above) which such Holder
would hold on the date of such exercise had such Holder been the holder of record of such Common Stock as of the date on which
holders of Common Stock received or became entitled to receive such shares or all other additional stock and other securities
and property.

 

(b) Upon
the occurrence of each adjustment pursuant to this Section 3, the Company at its expense will, at the written request of
the Holder, promptly compute such adjustment in accordance with the terms of this Warrant and prepare a certificate setting forth
such adjustment, including a statement of the adjusted number or type of Warrant Securities or other securities issuable upon
exercise of this Warrant (as applicable), describing the transactions giving rise to such adjustments and showing in detail the
facts upon which such adjustment is based. Upon written request, the Company will promptly deliver a copy of each such certificate
to the Holder and to the Company’s transfer agent.

 

4. FUNDAMENTAL
TRANSACTIONS. Upon the occurrence of a Fundamental Transaction, the Successor Entity shall assume this Warrant in accordance
with the provisions of this Section 4, including agreements to deliver to each holder of Warrants in exchange for such
Warrants a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this
Warrant, including, without limitation, an adjusted exercise price equal to the value for the shares of Common Stock reflected
by the terms of such Fundamental Transaction, and exercisable for a corresponding number of shares of capital stock or other securities
equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any limitations
on the exercise of this Warrant) prior to such Fundamental Transaction, and satisfactory to the Holder. Upon the occurrence of
any Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of
such Fundamental Transaction, the provisions of this Warrant referring to the “Company” shall refer instead to the
Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company
under this Warrant with the same effect as if such Successor Entity had been named as the Company herein. In addition to and not
in substitution for any other rights hereunder, prior to the consummation of any Fundamental Transaction pursuant to which holders
of shares of Common Stock are entitled to receive securities or other assets with respect to or in exchange for shares of Common
Stock (a “Corporate Event”), the Company shall make appropriate provision to ensure that the Holder will thereafter
have the right to receive upon an exercise of this Warrant at any time after the consummation of the Fundamental Transaction but
prior to the Expiration Date, in lieu of the shares of the Common Stock (or other securities, cash, assets or other property)
purchasable upon the exercise of the Warrant prior to such Fundamental Transaction, such shares of stock, securities, cash, assets
or any other property whatsoever (including warrants or other purchase or subscription rights) which the Holder would have been
entitled to receive upon the happening of such Fundamental Transaction had the Warrant been exercised immediately prior to such
Fundamental Transaction (including, if the Warrant Securities underlying this Warrant include securities that are convertible
or exercisable, had such Warrant Securities been converted or exercised, as applicable, into shares of Common Stock). If holders
of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then
the Holder shall be given the same choice as to the consideration it receives upon any exercise of this Warrant following such
Fundamental Transaction. The provisions of this Section 4 shall apply similarly and equally to successive Fundamental Transactions
and Corporate Events and shall be applied without regard to any limitations on the exercise of this Warrant.

 

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5. NON-CIRCUMVENTION.
The Company hereby covenants and agrees that the Company will not, by amendment of its Articles of Incorporation, Bylaws or through
any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities,
or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, and will
at all times in good faith comply with all the provisions of this Warrant and take all actions consistent with effectuating the
purposes of this Warrant. Without limiting the generality of the foregoing, the Company (i) shall not increase the par value of
any shares of Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect, (ii) shall take
all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable
shares of Common Stock upon the exercise of this Warrant, and (iii) shall, so long as this Warrant is outstanding, take all action
necessary to reserve and keep available out of its authorized and unissued shares of Common Stock, solely for the purpose of effecting
the exercise of this Warrant, 100% of the number of shares of Common Stock issuable upon exercise of this Warrant then outstanding
(without regard to any limitations on exercise).

 

6. WARRANT
HOLDER NOT DEEMED A STOCKHOLDER. Except as otherwise specifically provided herein, the Holder, solely in such Person’s
capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital
of the Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in
such Person’s capacity as the Holder of this Warrant, any of the rights of a stockholder of the Company or any right to
vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock,
consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise,
prior to the issuance to the Holder of the Warrant Securities which such Person is then entitled to receive upon the due exercise
of this Warrant. In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to
purchase any securities (upon exercise of this Warrant or otherwise) or as a stockholder of the Company, whether such liabilities
are asserted by the Company or by creditors of the Company.

 

7. REISSUANCE
OF WARRANTS.

 

(a) Transfer
of Warrant. Subject to Section 14 of this Warrant, if this Warrant is to be transferred, the Holder shall surrender
this Warrant to the Company and deliver the completed and executed Assignment Form, in the form attached hereto as Exhibit
B, whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with
Section 7(d)), registered as the Holder may request, representing the right to purchase the number of Warrant Securities
being transferred by the Holder and, if less then the total number of Warrant Securities then underlying this Warrant is being
transferred, a new Warrant (in accordance with Section 7(d)) to the Holder representing the right to purchase the number
of Warrant Securities not being transferred.

 

(b) Lost,
Stolen or Mutilated Warrant. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Warrant, and, in the case of loss, theft or destruction, of any indemnification undertaking
by the Holder to the Company in customary form and, in the case of mutilation, upon surrender and cancellation of this Warrant,
the Company shall execute and deliver to the Holder a new Warrant (in accordance with Section 7(d)) representing the right
to purchase the Warrant Securities then underlying this Warrant.

 

(c) Exchangeable
for Multiple Warrants. This Warrant is exchangeable, upon the surrender hereof by the Holder at the principal office of the
Company, for a new Warrant or Warrants (in accordance with Section 7(d)) representing in the aggregate the right to purchase
the number of Warrant Securities then underlying this Warrant, and each such new Warrant will represent the right to purchase
such portion of such Warrant Securities as is designated by the Holder at the time of such surrender; provided, however, that
no Warrants for fractional shares of Common Stock shall be given. Notwithstanding anything to the contrary herein, in no event
shall the original Warrant be subdivided into more than three (3) separate Warrants and such new Warrants shall not be further
subdivided.

 

    	- 6 -

    	 

    

 

(d) Issuance
of New Warrants. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant, such new Warrant
(i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the right to
purchase the Warrant Securities then underlying this Warrant (or in the case of a new Warrant being issued pursuant to Section
7(a) or Section 7(c), the Warrant Securities designated by the Holder which, when added to the number of shares of
Common Stock and/or other securities underlying the other new Warrants issued in connection with such issuance, does not exceed
the number of Warrant Securities then underlying this Warrant), (iii) shall have an issuance date, as indicated on the face of
such new Warrant which is the same as the Issuance Date, and (iv) shall have the same rights and conditions as this Warrant.

 

8. NOTICES.
Whenever notice is required to be given under this Warrant, unless otherwise provided herein, such notice shall be given in accordance
with Section 8(e) of the Subscription Agreement.

 

9.
AMENDMENT AND WAIVER. This Warrant may be modified or amended or the provisions hereof waived with the written consent signed
by both (a) the Company and (b) the Holder of this Warrant.

 

10. GOVERNING
LAW. This Warrant shall be governed by and construed and enforced in accordance with, and all questions concerning the construction,
validity, interpretation and performance of this Warrant shall be governed by, the internal laws of the State of New York, without
giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions)
that would cause the application of the laws of any jurisdictions other than the State of New York.

 

11. CONSTRUCTION;
HEADINGS. This Warrant shall be deemed to be jointly drafted by the Company and the Holder and shall not be construed against
any person as the drafter hereof. The headings of this Warrant are for convenience of reference and shall not form part of, or
affect the interpretation of, this Warrant.

 

12. DISPUTE
RESOLUTION. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant
Securities, the Company shall submit the disputed determinations or arithmetic calculations via facsimile within two (2) Business
Days of receipt of the Exercise Notice giving rise to such dispute, as the case may be, to the Holder. If the Holder and the Company
are unable to agree upon such determination or calculation of the Exercise Price or the Warrant Securities within three Business
Days of such disputed determination or arithmetic calculation being submitted to the Holder, then the Company shall, within two
(2) Business Days submit via facsimile (a) the disputed determination of the Exercise Price to an independent, reputable investment
bank selected by the Company and approved by the Holder, which approval shall not be unreasonably withheld, or (b) the disputed
arithmetic calculation of the Warrant Securities to the Company’s independent, outside accountant. The Company shall cause
the investment bank or the accountant, as the case may be, to perform the determinations or calculations and notify the Company
and the Holder of the results no later than ten Business Days from the time it receives the disputed determinations or calculations.
The prevailing party in any dispute resolved pursuant to this Section 12 shall be entitled to the full amount of all reasonable
expenses, including all costs and fees paid or incurred in good faith, in relation to the resolution of such dispute. Such investment
bank’s or accountant’s determination or calculation, as the case may be, shall be binding upon all parties absent
demonstrable error.

 

13. REMEDIES,
OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Warrant shall be cumulative and in addition
to all other remedies available under this Warrant and the other Transactions Documents, as applicable, at law or in equity (including
a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the right of the Holder to pursue
actual damages for any failure by the Company to comply with the terms of this Warrant. The Company acknowledges that a breach
by it of its obligations hereunder may cause irreparable harm to the Holder and that the remedy at law for any such breach may
be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, the Holder may be entitled,
in addition to all other available remedies, to an injunction restraining any breach, without the necessity of showing economic
loss and without any bond or other security being required. The issuance of Warrant Securities and certificates for such Warrant
Securities as contemplated hereby upon the exercise of this Warrant shall be made without charge to the Holder for any issuance
tax in respect thereof.

 

    	- 7 -

    	 

    

  

14. TRANSFER.
Subject to compliance with applicable laws, this Warrant may be offered for sale, sold, transferred or assigned without the consent
of the Company, provided that the Company is notified in writing within two business days following such transaction.

 

15. WARRANT
AGENT. The Company shall serve as warrant agent under this Warrant. Upon 30 days’ notice to the Holder, the Company may appoint
a new warrant agent. Any corporation into which the Company or any new warrant agent may be merged or any corporation resulting
from any consolidation to which the Company or any new warrant agent shall be a party or any corporation to which the Company
or any new warrant agent transfers substantially all of its corporate trust or stockholder services business shall be a successor
warrant agent under this Warrant without any further act. Any such successor warrant agent shall promptly cause notice of its
succession as warrant agent to be mailed (by first class mail, postage prepaid) to the Holder at the Holder’s last address as
shown on the Warrant Register.

 

16. SEVERABILITY.
If any provision of this Warrant shall be held to be invalid and unenforceable, such invalidity or unenforceability shall not
affect any other provision of this Warrant.

 

17. CERTAIN
DEFINITIONS. For purposes of this Warrant, the following terms shall have the following meanings:

 

(a) “Bloomberg”
means Bloomberg Financial Markets.

 

(b) “Business
Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized
or required by law to remain closed.

 

(c)
 “Closing Bid Price” and “Closing Sale Price” means, for any security as of any date,
the last closing bid price and last closing trade price, respectively, for such security on the Principal Market, as reported
by Bloomberg, or, if the Principal Market begins to operate on an extended hours basis and does not designate the closing bid
price or the closing trade price, as the case may be, then the last bid price or the last trade price, respectively, of such security
prior to 4:00:00 p.m., New York time, as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange
or trading market for such security, the last closing bid price or last trade price, respectively, of such security on the principal
securities exchange or trading market where such security is listed or traded as reported by Bloomberg, or if the foregoing do
not apply, the last closing bid price or last trade price, respectively, of such security in the over-the-counter market on the
electronic bulletin board for such security as reported by Bloomberg, or, if no closing bid price or last trade price, respectively,
is reported for such security by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers
for such security as reported in the “pink sheets” by the OTC Markets Group LLC. If the Closing Bid Price or the Closing
Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Bid Price or the
Closing Sale Price, as the case may be, of such security on such date shall be the fair market value as mutually determined by
the Company and the Holder. All such determinations to be appropriately adjusted for any stock dividend, stock split, stock combination
or other similar transaction during the applicable calculation period.

 

(d) “Common
Stock” means (i) the Company’s shares of Common Stock, par value $0.001 per share, and (ii) any share capital
into which such Common Stock shall have been changed or any share capital resulting from a reclassification of such Common Stock.

 

(e) “Eligible
Market” means the Principal Market, The New York Stock Exchange, Inc., The NYSE MKT, The NASDAQ Global Market, The NASDAQ
Capital Market, the Over the Counter Bulletin Board, the OTCQX or the OTCQB.

 

(f) “Expiration
Date” means the date that is five (5) years following the Issuance Date or, if such date falls on a day other than a
Business Day or on which trading does not take place on the Principal Market (a “Holiday”), the next date that
is not a Holiday.

 

    	- 8 -

    	 

    

  

(g) “Fundamental
Transaction” means that (i) the Company or any of its Subsidiaries shall, directly or indirectly, in one or more related
transactions, (1) consolidate or merge with or into (whether or not the Company or any of its Subsidiaries is the surviving corporation)
any other person, or (2) sell, lease, license, assign, transfer, convey or otherwise dispose of all or substantially all of its
respective properties or assets to any other person, or (3) allow any other person to make a purchase, tender or exchange offer
that is accepted by the holders of more than 50% of the outstanding shares of Voting Stock of the Company (not including any shares
of Voting Stock of the Company held by the person or persons making or party to, or associated or affiliated with the persons
making or party to, such purchase, tender or exchange offer), or (4) consummate a stock or share purchase agreement or other business
combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with any other
person whereby such other person acquires more than 50% of the outstanding shares of Voting Stock of the Company (not including
any shares of Voting Stock of the Company held by the other person or other persons making or party to, or associated or affiliated
with the other persons making or party to, such stock or share purchase agreement or other business combination), or (5) (I) reorganize,
recapitalize or reclassify the Common Stock, (II) effect or consummate a stock combination, reverse stock split or other similar
transaction involving the Common Stock or (III) make any public announcement or disclosure with respect to any stock combination,
reverse stock split or other similar transaction involving the Common Stock (including, without limitation, any public announcement
or disclosure of (x) any potential, possible or actual stock combination, reverse stock split or other similar transaction involving
the Common Stock or (y) board or stockholder approval thereof, or the intention of the Company to seek board or stockholder approval
of any stock combination, reverse stock split or other similar transaction involving the Common Stock), or (ii) any “person”
or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the Exchange Act and the rules and
regulations promulgated thereunder) is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of 50% of the aggregate ordinary voting power represented by issued and outstanding Voting
Stock of the Company.

 

(h) “Parent
Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person and whose common stock
or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such Person or Parent Entity,
the Person or Parent Entity with the largest public market capitalization as of the date of consummation of the Fundamental Transaction.

 

(i) “Person”
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization,
any other entity and a government or any department or agency thereof.

 

(j) “Principal
Market” means the principal securities exchange or securities market on which the Common Stock is then quoted or traded.

 

(k) “Subsidiary”
means any subsidiary of the Company including any direct or indirect subsidiary of the Company formed or acquired after the date
hereof.

 

(l) “Successor
Entity” means the Person (or, if so elected by the Holder, the Parent Entity) formed by, resulting from or surviving
any Fundamental Transaction or the Person (or, if so elected by the Holder, the Parent Entity) with which such Fundamental Transaction
shall have been entered into.

 

(m) “Trading
Day” means any day on which the Common Stock are traded on the Principal Market, or, if the Principal Market is not
the principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the
Common Stock are then traded; provided that “Trading Day” shall not include any day on which the Common Stock
are scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock are suspended from
trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance
the closing time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time).

 

(n) “Voting
Stock” of a person means capital stock of such person of the class or classes pursuant to which the holders thereof
have the general voting power to elect, or the general power to appoint, at least a majority of the board of directors, managers,
trustees or other similar governing body of such person (irrespective of whether or not at the time capital stock of any other
class or classes shall have or might have voting power by reason of the happening of any contingency).

  

(o) “VWAP”
means, means, for any security as of any date, the dollar volume-weighted average price for such security on the Principal Market
(or, if the Principal Market is not the principal trading market for such security, then on the principal securities exchange
or securities market on which such security is then traded) during the period beginning at 9:30:01 a.m., New York time, and ending
at 4:00:00 p.m., New York time, as reported by Bloomberg through its “Volume at Price” function or, if the foregoing
does not apply, the dollar volume-weighted average price of such security in the over-the-counter market on the electronic bulletin
board for such security during the period beginning at 9:30:01 a.m., New York time, and ending at 4:00:00 p.m., New York time,
as reported by Bloomberg, or, if no dollar volume-weighted average price is reported for such security by Bloomberg for such hours,
the average of the highest closing bid price and the lowest closing ask price of any of the market makers for such security as
reported in the “pink sheets” by OTC Markets Group Inc. (formerly Pink Sheets LLC). If the VWAP cannot be calculated
for such security on such date on any of the foregoing bases, the VWAP of such security on such date shall be the fair market
value as mutually determined by the Company and such Holder. All such determinations shall be appropriately adjusted for any stock
dividend, stock split, stock combination or other similar transaction during such period.

 

[Signature
Page Follows]

 

    	- 9 -

    	 

    

  

IN
WITNESS WHEREOF, the Company has caused this Warrant to be duly executed as of the Issuance Date set out above.

 

BITCOIN
SHOP, INC.

 

	By:	 	 
	Name:	 	 
	Title:	 	 

 

    	- 10 -

    	 

    

 

EXHIBIT
A

 

EXERCISE
NOTICE

TO
BE EXECUTED BY THE REGISTERED HOLDER

TO
EXERCISE THIS WARRANT

 

BITCOIN
SHOP, INC.

 

The
undersigned holder hereby exercises the right to purchase _________________ shares of Common Stock (the “Warrant Securities”)
of BITCOIN SHOP, INC., a Nevada corporation (the “Company”), evidenced by the attached Warrant (the
“Warrant”). Capitalized terms used herein and not otherwise defined shall have the respective meanings set
forth in the Warrant.

 

1.
Form of Exercise Price. The Holder intends that payment of the Exercise Price shall be made as:

 

____________
a “Cash Exercise” with respect to _________________ Warrant Securities; and/or

 

____________
a “Cashless Exercise” with respect to _______________ Warrant Securities.

 

 

2.
In the event that the holder has elected a Cash Exercise with respect to some or all of the Warrant Securities to be issued pursuant
hereto, the holder shall pay the Aggregate Exercise Price in the sum of $______________ to the Company in accordance with
the terms of the Warrant.

 

3.
Delivery of Warrant Securities. The Company shall deliver to the holder __________ Warrant Securities in accordance with the terms
of the Warrant and, after delivery of such Warrant Securities, _____________ Warrant Securities remain subject to the Warrant.

 

Date:
______, ______

 

Name
of Registered Holder

 

	By:	 	 
	Name:	 	 
	Title:	 	 

 

    	- 11 -

    	 

    

 

ACKNOWLEDGMENT

 

The
Company hereby acknowledges this Exercise Notice and hereby directs the Company’s transfer agent to issue the above indicated
number of shares of Common Stock in accordance with the Transfer Agent Instructions dated [_____], 20[__] from the Company
and acknowledged and agreed to by the Company’s transfer agent.

 

BITCOIN
SHOP, INC.

 

	By:	 	 
	Name:	 	 
	Title:	 	 

 

    	- 12 -

    	 

    

 

EXHIBIT
B

 

ASSIGNMENT
FORM

 

BITCOIN
SHOP, INC.

 

(To
assign the foregoing Warrant, execute this form and supply required information. Do not use this form to purchase shares.)

 

FOR
VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

	Name:	 	 	 
		 	(Please Print)	 
	 	 	 	 
	Address:
    	 	 	 
		 	(Please Print)	 
	 	 	 	 
	Dated:	 	_______ __, ______
    	 
	Holder’s
    Signature:	 	                                      	 
	Holder’s
    Address:	 	                                               	 
		 	(Please Print)	 

 

NOTE:
The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration
or enlargement or any change whatever. Officers of corporations and those acting in a fiduciary or other representative capacity
should file proper evidence of authority to assign the foregoing Warrant.

 

    	- 13 -SUBSCRIPTION
AGREEMENT

 

This
Subscription Agreement (this “Agreement”) is being delivered to the purchaser identified on the signature page
to this Agreement (the “Subscriber”) in connection with its investment in the securities of Bitcoin Shop Inc.,
a Nevada corporation (the “Company”). The Company is conducting a private placement (the “Offering”)
of up to $2,500,000 (the “Maximum Offering Amount”) of units (the “Units”) at a purchase price
of $0.30 per Unit (the “Purchase Price”) with each Unit consisting of (i) one share (the “Shares”)
of the Company’s common stock $0.001 par value per share (the “Common Stock”), and (ii) a five year warrant,
in the form attached hereto as Exhibit A (the “Warrant”) to purchase 1.40 shares of Common Stock (the
“Warrant Shares”) at an exercise price of $0.375 per share. For purposes of this Agreement, the term “Securities”
shall refer to the Shares, the Warrants and the Warrant Shares. The Company, in its sole discretion, may increase the Maximum
Offering Amount to $3,000,000 without further notification to the Subscribers.

 

IMPORTANT
INVESTOR NOTICES

 

NO
OFFERING LITERATURE OR ADVERTISEMENT IN ANY FORM MAY BE RELIED UPON IN THE OFFERING OF THESE SECURITIES EXCEPT FOR THIS SUBSCRIPTION
AGREEMENT AND ANY SUPPLEMENTS HERETO, AND NO PERSON HAS BEEN AUTHORIZED TO MAKE ANY REPRESENTATIONS EXCEPT THOSE CONTAINED HEREIN.

 

THIS
AGREEMENT IS CONFIDENTIAL AND THE CONTENTS HEREOF MAY NOT BE REPRODUCED, DISTRIBUTED OR DIVULGED BY OR TO ANY PERSONS OTHER THAN
THE RECIPIENT OR ITS REPRESENTATIVE, ACCOUNTANT OR LEGAL COUNSEL, WITHOUT THE PRIOR WRITTEN CONSENT OF THE COMPANY. EACH PERSON
WHO ACCEPTS DELIVERY OF THIS AGREEMENT, ACKNOWLEDGES AND AGREES TO THE FOREGOING RESTRICTIONS.

 

THIS
AGREEMENT DOES NOT PURPORT TO BE ALL-INCLUSIVE OR TO CONTAIN ALL OF THE INFORMATION THAT YOU MAY DESIRE IN EVALUATING THE COMPANY,
OR AN INVESTMENT IN THE OFFERING. THIS AGREEMENT DOES NOT CONTAIN ALL OF THE INFORMATION THAT WOULD NORMALLY APPEAR IN A PROSPECTUS
FOR AN OFFERING REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). YOU MUST CONDUCT AND
RELY ON YOUR OWN EVALUATION OF THE COMPANY AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED, IN DECIDING
WHETHER TO INVEST IN THE OFFERING.

 

THIS
AGREEMENT CONTAINS A SUMMARY OF CERTAIN PROVISIONS OF VARIOUS DOCUMENTS RELATING TO THE OPERATIONS OF THE COMPANY. THESE SUMMARIES
DO NOT PURPORT TO BE COMPLETE AND ARE QUALIFIED IN THEIR ENTIRETY BY REFERENCE TO THE TEXTS OF THE ORIGINAL DOCUMENTS.

 

THIS
AGREEMENT DOES NOT CONSTITUTE AN OFFER OR SOLICITATION OF AN OFFER TO ANY PERSON OR IN ANY JURISDICTION WHERE SUCH OFFER OR SOLICITATION
IS UNLAWFUL OR NOT AUTHORIZED. EACH PERSON WHO ACCEPTS DELIVERY OF THIS AGREEMENT AGREES TO RETURN IT AND ALL RELATED DOCUMENTS
IF SUCH PERSON DOES NOT PURCHASE ANY OF THE SECURITIES DESCRIBED HEREIN.

 

NEITHER
THE DELIVERY OF THIS AGREEMENT AT ANY TIME NOR ANY SALE OF SECURITIES HEREUNDER SHALL IMPLY THAT INFORMATION CONTAINED HEREIN
IS CORRECT AS OF ANY TIME SUBSEQUENT TO ITS DATE. THE COMPANY WILL EXTEND TO EACH PROSPECTIVE INVESTOR (AND TO ITS REPRESENTATIVE,
ACCOUNTANT OR LEGAL COUNSEL, IF ANY) THE OPPORTUNITY, PRIOR TO ITS PURCHASE OF UNITS, TO ASK QUESTIONS OF AND RECEIVE ANSWERS
FROM THE COMPANY CONCERNING THE OFFERING AND TO OBTAIN ADDITIONAL INFORMATION, TO THE EXTENT THE COMPANY POSSESSES THE SAME OR
CAN ACQUIRE IT WITHOUT UNREASONABLE EFFORT OR EXPENSE, IN ORDER TO VERIFY THE ACCURACY OF THE INFORMATION SET FORTH HEREIN. ALL
SUCH ADDITIONAL INFORMATION SHALL ONLY BE PROVIDED IN WRITING AND IDENTIFIED AS SUCH BY THE COMPANY THROUGH ITS DULY AUTHORIZED
OFFICERS AND/OR DIRECTORS ALONE; NO ORAL INFORMATION OR INFORMATION PROVIDED BY ANY BROKER OR THIRD PARTY MAY BE RELIED UPON.

 

    	 

    	 

    

  

NO
REPRESENTATIONS, WARRANTIES OR ASSURANCES OF ANY KIND ARE MADE OR SHOULD BE INFERRED WITH RESPECT TO THE ECONOMIC RETURN, IF ANY,
THAT MAY ACCRUE TO AN INVESTOR IN THE COMPANY.

 

THIS
AGREEMENT CONTAINS FORWARD-LOOKING STATEMENTS REGARDING THE COMPANY’S PERFORMANCE, STRATEGY, PLANS, OBJECTIVES, EXPECTATIONS,
BELIEFS AND INTENTIONS. THE OUTCOME OF THE EVENTS DESCRIBED IN THESE FORWARD-LOOKING STATEMENTS IS SUBJECT TO SUBSTANTIAL RISKS,
AND ACTUAL RESULTS COULD DIFFER MATERIALLY. THE SECTIONS ENTITLED “EXECUTIVE SUMMARY,” “RISK FACTORS,”
AND “DESCRIPTION OF BUSINESS,” IN ANY SECURITIES AND EXCHANGE COMMISSION (“SEC”) FILING OR REPORT (THE
“SEC FILINGS”), AS WELL AS THIS AGREEMENT GENERALLY, CONTAINS DISCUSSIONS OF SOME OF THE FACTORS THAT COULD CONTRIBUTE
TO THESE DIFFERENCES.

 

THIS
SUBSCRIPTION AGREEMENT AND THE SEC FILINGS AND REPORTS INCLUDE DATA OBTAINED FROM INDUSTRY PUBLICATIONS AND REPORTS, WHICH THE
COMPANY BELIEVES TO BE RELIABLE SOURCES; HOWEVER, NEITHER THE ACCURACY NOR THE COMPLETENESS OF THIS DATA IS GUARANTEED AND WE
HAVE NEITHER INDEPENDENTLY VERIFIED THIS DATA NOR SOUGHT THE CONSENT OF SUCH SOURCES TO REFER TO THEIR REPORTS.

 

THE
OFFERING PRICE OF THE SECURITIES HAS BEEN DETERMINED ARBITRARILY. THE PRICE OF THE SECURITIES DOES NOT NECESSARILY BEAR ANY RELATIONSHIP
TO THE ASSETS, EARNINGS OR BOOK VALUE OF THE COMPANY, OR TO POTENTIAL ASSETS, EARNINGS, OR BOOK VALUE OF THE COMPANY. THERE IS
NO ACTIVE TRADING MARKET IN THE COMPANY’S COMMON STOCK AND THERE CAN BE NO ASSURANCE THAT AN ACTIVE TRADING MARKET IN ANY
OF THE COMPANY’S SECURITIES WILL DEVELOP OR BE MAINTAINED. A LIMITED NUMBER OF SHARES OF COMMON STOCK MAY BE ELIGIBLE FOR
TRADING PRIOR TO REGISTRATION OF THE SECURITIES SOLD IN THE OFFERING, AND SUCH REGISTRATION MAY BE DELAYED IN CERTAIN CIRCUMSTANCES.
THE PRICE OF COMMON STOCK TRADED ON ANY EXCHANGE MAY BE IMPACTED BY A LACK OF LIQUIDITY OR AVAILABILITY OF COMMON STOCK FOR PUBLIC
SALE AND ALSO WILL NOT NECESSARILY BEAR ANY RELATIONSHIP TO THE ASSETS, EARNINGS, BOOK VALUE OR POTENTIAL PROSPECTS OF THE COMPANY
OR APPLICABLE QUOTED OR TRADING PRICES THAT MAY EXIST FOLLOWING REGISTRATION OR THE LAPSE OF RESTRICTIONS ON THE SECURITIES SOLD
PURSUANT TO THE OFFERING OR OTHER RESTRICTIONS. SUCH PRICES SHOULD NOT BE CONSIDERED ACCURATE INDICATORS OF FUTURE QUOTED OR TRADING
PRICES THAT MAY SUBSEQUENTLY EXIST FOLLOWING THE OFFERING.

 

THE
COMPANY RESERVES THE RIGHT, IN ITS SOLE DISCRETION, TO REJECT ANY SUBSCRIPTION IN WHOLE OR IN PART FOR ANY REASON OR FOR NO REASON.
THE COMPANY IS NOT OBLIGATED TO NOTIFY RECIPIENTS OF THIS AGREEMENT WHETHER ALL OF THE SECURITIES OFFERED HEREBY HAVE BEEN SOLD.

 

SUBSCRIBERS
MAY BE DEEMED TO BE IN POSSESSION OF MATERIAL NON-PUBLIC INFORMATION WITHIN THE MEANING OF THE UNITED STATES SECURITIES LAWS AND
REGULATIONS REGARDING A PUBLIC COMPANY. THIS AGREEMENT CONTAINS CONFIDENTIAL INFORMATION CONCERNING THE COMPANY, AND HAS BEEN
PREPARED SOLELY FOR USE IN CONNECTION WITH THE OFFERING DESCRIBED HEREIN. ANY USE OF THIS INFORMATION FOR ANY PURPOSE OTHER THAN
IN CONNECTION WITH THE CONSIDERATION OF AN INVESTMENT IN THE SECURITIES OF THE COMPANY THROUGH THE OFFERING DESCRIBED HEREIN MAY
SUBJECT THE USER TO CIVIL AND/OR CRIMINAL LIABILITY. THE RECIPIENT, BY ACCEPTING THIS AGREEMENT, AGREES (I) NOT TO DISTRIBUTE
OR REPRODUCE THIS AGREEMENT, IN WHOLE OR IN PART, AT ANY TIME, WITHOUT THE PRIOR WRITTEN CONSENT OF THE COMPANY; (II) TO KEEP
CONFIDENTIAL THE EXISTENCE OF THIS DOCUMENT AND THE INFORMATION CONTAINED HEREIN OR MADE AVAILABLE IN CONNECTION WITH ANY FURTHER
INVESTIGATION OF THE COMPANY; AND (III) TO REFRAIN FROM TRADING IN THE PUBLICLY-TRADED SECURITIES OF THE COMPANY OR ANY OTHER
RELEVANT COMPANY FOR SO LONG AS SUCH RECIPIENT IS IN POSSESSION OF THE MATERIAL NON-PUBLIC INFORMATION CONTAINED HEREIN. SUBSCRIBERS
ARE ADVISED THAT THEY SHOULD SEEK THEIR OWN LEGAL COUNSEL PRIOR TO EFFECTUATING ANY TRANSACTIONS IN THE PUBLICLY TRADED COMPANY’S
SECURITIES.

 

    	- 2 -

    	 

    

 

FOR RESIDENTS
OF ALL STATES

 

THIS
OFFERING IS BEING MADE SOLELY TO “ACCREDITED INVESTORS,” AS SUCH TERM IS DEFINED IN RULE 501 OF REGULATION D UNDER
THE SECURITIES ACT. THE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OR THE SECURITIES LAWS OF ANY STATE AND WILL
BE OFFERED AND SOLD IN RELIANCE UPON THE EXEMPTION FROM REGISTRATION AFFORDED BY SECTION 4(A)(2) THEREUNDER AND REGULATION D (RULE
506) OF THE SECURITIES ACT AND CORRESPONDING PROVISIONS OF STATE SECURITIES LAWS.

 

THE
SECURITIES OFFERED HEREBY ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT
AS PERMITTED UNDER THE SECURITIES ACT AND APPLICABLE STATE LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. INVESTORS SHOULD
BE AWARE THAT THEY WILL BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.

 

THE
SECURITIES OFFERED HEREBY HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SEC, ANY STATE SECURITIES COMMISSION OR ANY OTHER REGULATORY
AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON OR ENDORSED THE MERITS OF THIS OFFERING OR THE ACCURACY OR ADEQUACY
OF THIS AGREEMENT. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

 

PROSPECTIVE
INVESTORS SHOULD NOT CONSTRUE THE CONTENTS OF THIS AGREEMENT AS INVESTMENT, LEGAL, BUSINESS, OR TAX ADVICE. EACH INVESTOR SHOULD
CONTACT HIS, HER OR ITS OWN ADVISORS REGARDING THE APPROPRIATENESS OF THIS INVESTMENT AND THE TAX CONSEQUENCES THEREOF, WHICH
MAY DIFFER DEPENDING ON AN INVESTOR’S PARTICULAR FINANCIAL SITUATION. IN NO EVENT SHOULD THIS AGREEMENT BE DEEMED OR CONSIDERED
TO BE TAX ADVICE PROVIDED BY THE COMPANY.

 

1.SUBSCRIPTION
AND PURCHASE PRICE

 

(a)Subscription.
Subject to the conditions set forth in Section 2 hereof, the Subscriber hereby subscribes for and agrees to purchase the number
of Units indicated on page 18 hereof on the terms and conditions described herein.

 

(b)Purchase
of Units. The Subscriber understands and acknowledges that the purchase price to be remitted to the Company in exchange for
the Units shall be set at $0.30 per Unit, for an aggregate purchase price as set forth on page 18 hereof (the “Aggregate
Purchase Price”), which shall be equivalent to $0.30 per Share, exclusive of the value of the Warrants. The Subscriber’s
delivery of this Agreement to the Company shall be accompanied by payment for the Units subscribed for hereunder, payable in bitcoins
at a mutually agreed exchange rate or in United States Dollars, by check or wire transfer of immediately available funds delivered
to the Company. The Subscriber understands and agrees that, subject to Section 2 and applicable laws, by executing this Agreement,
it is entering into a binding agreement.

 

(c)The
Company intends to offer the Units directly to Subscribers. Although there are no present agreements or arrangements, the Company
may offer some or all of the Units through members of the Financial Industry Regulatory Authority (“FINRA”). In the
event Units are sold by FINRA members, it is anticipated that the Company will pay customary commissions to any participating
FINRA member. Such figures do not include deductions for expenses related to the Offering including filing fees, legal, accounting,
transfer agent fees, and other miscellaneous expenses.

 

2.Acceptance,
Offering Term and Closing Procedures

 

(a)Acceptance.
Subject to full, faithful and punctual performance and discharge by the Company of all of its duties, obligations and responsibilities
as set forth in this Agreement, the Warrant and any other agreement entered into between the Subscriber and the Company relating
to this subscription (collectively, the “Transaction Documents”), the Subscriber shall be legally bound to purchase
the Units pursuant to the terms and conditions set forth in this Agreement.

 

    	- 3 -

    	 

    

 

(b)Closing.
The closing of the purchase and sale of the Units hereunder (the “Closing”) shall take place at such time and
place as determined by the Company. The Closing shall take place on a Business Day promptly following the satisfaction of the
conditions set forth in Section 6 below, as determined by the Company (the “Closing Date”). “Business
Day” shall mean from the hours of 9:00 a.m. (Eastern Time) through 5:00 p.m. (Eastern Time) of a day other than a Saturday,
Sunday or other day on which commercial banks in New York, New York are authorized or required to be closed. The Shares and the
Warrants purchased by the Subscriber will be delivered by the Company promptly following the Closing Date.

 

(c)Following
Acceptance or Rejection. The Subscriber acknowledges and agrees that this Agreement and any other documents delivered in connection
herewith will be held by the Company. In the event that this Agreement is not accepted by the Company for whatever reason, which
the Company expressly reserves the right to do, this Agreement, the Aggregate Purchase Price received (without interest thereon)
and any other documents delivered in connection herewith will be returned to the Subscriber at the address of the Subscriber as
set forth in this Agreement. If this Agreement is accepted by the Company, the Company is entitled to treat the Aggregate Purchase
Price received as an interest free loan to the Company until such time as the Subscription is accepted. In the event the Closing
does not take place because of (i) the election not to purchase the Units by the Subscriber or (ii) the failure to effectuate
the Closing (as defined below) on or prior to May 8, 2015 (unless extended in the discretion of the Board of Directors) for any
reason or no reason, this Agreement and any other Transaction Documents shall thereafter be terminated and have no force or effect,
and the parties shall take all steps, including the execution of instructions to the Company, to ensure that the Aggregate Purchase
Price shall promptly be returned or caused to be returned to the Subscriber without interest thereon or deduction therefrom. Notwithstanding
anything herein to the contrary, no Subscriber shall be required to fund any portion of the Purchase Price until immediately prior
to the Closing.

 

(d)
Favored Nations Provision. For a period of two (2) years from the Closing Date, other than in connection with (i) full
or partial consideration in connection with a strategic merger, acquisition, consolidation or purchase of substantially all of
the securities or assets of a corporation or other entity which holders of such securities or debt are not at any time granted
registration rights equal to or greater than those granted to the Subscribers, (ii) the Company’s issuance of securities
in connection with strategic license agreements and other partnering arrangements so long as such issuances are not primarily
for the purpose of raising capital and which holders of such securities or debt are not at any time granted registration rights
equal to or greater than those granted to the Subscribers, (iii) the Company’s issuance of Common Stock or the issuances
or grants of options to purchase Common Stock to employees, and directors, pursuant to plans that have been approved by a majority
of the stockholders and a majority of the independent members of the board of directors of the Company or in existence as such
plans are constituted on the date of this Agreement, (iv) the Company’s issuance of securities upon the exercise or exchange
of or conversion of any securities exercisable or exchangeable for or convertible into shares of Common Stock issued and outstanding
on the date of this Agreement on the terms in effect on the Closing Date, (v) an issuance by the Company of securities resulting
from the exercise of Warrants or conversion of the Shares, (vi) the Company’s issuance of up to 450,000 shares of Common
Stock to its advisors pursuant the independent contractor agreements dated October 1, 2014, and (vii) any and all securities required
to be assumed by the Company by the terms thereof as a result of any of the foregoing even if issued by a predecessor acquired
in connection with a business combination, merger or share exchange (collectively, the foregoing (i) through (vii) are “Excepted
Issuances”), if at any time the Company shall issue any Common Stock or securities convertible into or exercisable for
shares of Common Stock (or modify any of the foregoing which may be outstanding) to any person or entity (including issuances
to service providers or consultants) at a price per share or conversion or exercise price per share which shall be less than $0.30
per share, being the per share price of the Shares hereunder (disregarding any value attributable to the Warrants) or as in effect
at such time, (the “Lower Price Issuance”), then the Company shall issue the Subscriber such number of additional
Units to reflect such lower price for the Shares such that the Subscriber shall hold such number of Units, in total, had Subscriber
paid a per Unit price equal to the Lower Price Issuance; provided further the Company shall lower the Warrant exercise price to
the price that is the product of: (i) one hundred and twenty five percent (125%), and (ii) the issuance price of the Lower Price
Issuance. Common Stock issued or issuable by the Company for no consideration or for consideration that cannot be determined at
the time of issue will be deemed issuable or to have been issued for $0.001 per share of Common Stock. The rights of Subscribers
set forth in this Section 2 are in addition to any other rights the Subscribers have pursuant to this Agreement, or the Warrants,
and any other agreement referred to or entered into in connection herewith or to which Subscribers and Company are parties. The
Company shall be required to make one or many adjustments with respect to a Lower Price Issuance provided that the provisions
of this Section 2(d) remain in full force and effect.

 

    	- 4 -

    	 

    

 

(e)Extraordinary
Events Regarding Common Stock. In the event that the Company shall (a) issue additional shares of Common Stock as a dividend
or other distribution on outstanding Common Stock, (b) subdivide its outstanding shares of Common Stock, or (c) combine its outstanding
shares of the Common Stock into a smaller number of shares of Common Stock, then, in each such event, the Purchase Price shall,
simultaneously with the happening of such event, be adjusted by multiplying the then Purchase Price by a fraction, the numerator
of which shall be the number of shares of Common Stock outstanding immediately prior to such event and the denominator of which
shall be the number of shares of Common Stock outstanding immediately after such event, and the product so obtained shall thereafter
be the Purchase Price then in effect. The Purchase Price, as so adjusted, shall be readjusted in the same manner upon the happening
of any successive event or events described herein. The number of Units that the Subscriber shall thereafter be entitled to receive
(including number of shares of Common Stock or Warrant Shares the Subscriber may thereafter be entitled to receive upon exercise
of the Warrants) shall be adjusted to a number determined by multiplying the number of shares of Common Stock that would otherwise
(but for the provisions of this Section) be issuable on such conversion or exercise by a fraction of which (a) the numerator is
the Purchase Price that would otherwise (but for the provisions of this Section) be in effect, and (b) the denominator is the
Purchase Price then in effect.

 

(f)Certificate
as to Adjustments. In each case of any adjustment or readjustment in (i) the number of Shares (ii) the number of Warrant Shares
issuable upon the exercise of the Warrants, and/or (iii) the exercise price of the Warrants, the Company, at its expense, will
promptly cause its Chief Financial Officer or other appropriate designee to compute such adjustment or readjustment in accordance
with the terms hereof or the Warrant, as applicable, and prepare a certificate setting forth such adjustment or readjustment and
showing in detail the facts upon which such adjustment or readjustment is based. The Company will forthwith mail a copy of each
such certificate to the Subscriber.

 

3.THE
SUBSCRIBER’s Representations, Warranties AND cOVENANTS

 

Each
Subscriber, severally and not jointly, hereby acknowledges, agrees with and represents, warrants and covenants to the Company,
as follows:

 

(a)The
Subscriber has full power and authority to enter into this Agreement, the execution and delivery of which has been duly authorized,
if applicable, and this Agreement constitutes a valid and legally binding obligation of the Subscriber, except as may be limited
by bankruptcy, reorganization, insolvency, moratorium and similar laws of general application relating to or affecting the enforcement
of rights of creditors, and except as enforceability of the obligations hereunder are subject to general principles of equity
(regardless of whether such enforceability is considered in a proceeding in equity or law).

 

(b)The
Subscriber acknowledges its understanding that the Offering and sale of the Securities is intended to be exempt from registration
under the Securities Act, by virtue of Section 4(a)(2) of the Securities Act and the provisions of Regulation D promulgated thereunder
(“Regulation D”). In furtherance thereof, the Subscriber represents and warrants to the Company and its affiliates
as follows:

 

(i)The
Subscriber realizes that the basis for the exemption from registration may not be available if, notwithstanding the Subscriber’s
representations contained herein, the Subscriber is merely acquiring the Securities for a fixed or determinable period in the
future, or for a market rise, or for sale if the market does not rise. The Subscriber does not have any such intention.

 

(ii)The
Subscriber realizes that the basis for exemption would not be available if the Offering is part of a plan or scheme to evade registration
provisions of the Securities Act or any applicable state or federal securities laws, except sales pursuant to a registration statement
or sales that are exempted under the Securities Act.

 

(iii)The
Subscriber is acquiring the Securities solely for the Subscriber’s own beneficial account, for investment purposes, and
not with a view towards, or resale in connection with, any distribution of the Securities.

 

(iv)The
Subscriber has the financial ability to bear the economic risk of the Subscriber’s investment, has adequate means for providing
for its current needs and contingencies, and has no need for liquidity with respect to an investment in the Company.

 

    	- 5 -

    	 

    

 

(v)The
Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively,
the “Advisors”) has such knowledge and experience in financial and business matters as to be capable of evaluating
the merits and risks of a prospective investment in the Securities. If other than an individual, the Subscriber also represents
it has not been organized solely for the purpose of acquiring the Securities.

 

(vi)The
Subscriber (together with its Advisors, if any) has received all documents requested by the Subscriber, if any, and has carefully
reviewed them and understands the information contained therein, prior to the execution of this Agreement.

 

(c)The
Subscriber is not relying on the Company or any of its employees, agents, sub-agents or advisors with respect to the legal, tax,
economic and related considerations involved in this investment. The Subscriber has relied on the advice of, or has consulted
with, only its Advisors. Each Advisor, if any, has disclosed to the Subscriber in writing (a copy of which is annexed to this
Agreement) the specific details of any and all past, present or future relationships, actual or contemplated, between the Advisor
and the Company or any affiliate or sub-agent thereof.

 

(d)The
Subscriber has carefully considered the potential risks relating to the Company and a purchase of the Securities, and fully understands
that the Securities are a speculative investment that involves a high degree of risk of loss of the Subscriber’s entire
investment. Among other things, the Subscriber has carefully considered each of the risks described under the heading “Risk
Factors” in the Company’s SEC Filings (as defined below) and any additional disclosures in the nature of Risk
Factors described herein.

 

(e)The
Subscriber will not sell or otherwise transfer any Securities without registration under the Securities Act or an exemption therefrom,
and fully understands and agrees that the Subscriber must bear the economic risk of its purchase because, among other reasons,
the Securities have not been registered under the Securities Act or under the securities laws of any state and, therefore, cannot
be resold, pledged, assigned or otherwise disposed of unless they are subsequently registered under the Securities Act and under
the applicable securities laws of such states, or an exemption from such registration is available. In particular, the Subscriber
is aware that the Securities are “restricted securities,” as such term is defined in Rule 144 promulgated under the
Securities Act (“Rule 144”), and they may not be sold pursuant to Rule 144 unless all of the conditions of
Rule 144 are met. The Subscriber also understands that the Company is under no obligation to register the Securities on behalf
of the Subscriber or to assist the Subscriber in complying with any exemption from registration under the Securities Act or applicable
state securities laws. The Subscriber understands that any sales or transfers of the Securities are further restricted by state
securities laws and the provisions of this Agreement.

 

(f)No
oral or written representations or warranties have been made, or information furnished, to the Subscriber or its Advisors, if
any, by the Company or any of its officers, employees, agents, sub-agents, affiliates, advisors or subsidiaries in connection
with the Offering, other than any representations of the Company contained herein, and in subscribing for the Units the Subscriber
is not relying upon any representations other than those contained herein.

 

(g)The
Subscriber’s overall commitment to investments that are not readily marketable is not disproportionate to the Subscriber’s
net worth, and an investment in the Securities will not cause such overall commitment to become excessive.

 

    	- 6 -

    	 

    

 

(h)The
Subscriber understands and agrees that the certificates for the Securities shall bear substantially the following legend:

 

“[NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE
HAVE BEEN][THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN] REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE
OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION
OF COUNSEL TO THE HOLDER (IF REQUESTED BY THE COMPANY), IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT
REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING
THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT
SECURED BY THE SECURITIES.”

 

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

 

(j)Neither
the SEC nor any state securities commission has approved the Securities or passed upon or endorsed the merits of the Offering.
There is no government or other insurance covering any of the Securities.

 

(k)The
Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or
persons acting on behalf of the Company concerning the Offering and the business, financial condition, results of operations and
prospects of the Company, and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors,
if any.

 

(l)(i)In
making the decision to invest in the Securities the Subscriber has relied solely upon the information provided by the Company
in the Transaction Documents. To the extent necessary, the Subscriber has retained, at its own expense, and relied upon appropriate
professional advice regarding the investment, tax and legal merits and consequences of this Agreement and the purchase of the
Securities hereunder. The Subscriber disclaims reliance on any statements made or information provided by any person or entity
in the course of Subscriber’s consideration of an investment in the Securities other than the Transaction Documents. 

 

(ii)The
Subscriber represents and warrants that: (i) the Subscriber was contacted regarding the sale of the Securities by the Company
(or an authorized agent or representative thereof) with whom the Subscriber had a prior substantial pre-existing relationship
and (ii) no Securities were offered or sold to it by means of any form of general solicitation or general advertising, and in
connection therewith, the Subscriber did not (A) receive or review any advertisement, article, notice or other communication published
in a newspaper or magazine or similar media or broadcast over television or radio, whether closed circuit, or generally available;
or (B) attend any seminar meeting or industry investor conference whose attendees were invited by any general solicitation or
general advertising; or (C) observe any website or filing of the Company with the SEC in which any offering of securities by the
Company was described and as a result learned of any offering of securities by the Company.

 

    	- 7 -

    	 

    

 

(m)The
Subscriber has taken no action that would give rise to any claim by any person for brokerage commissions, finders’ fees
or the like relating to this Agreement or the transactions contemplated hereby.

 

(n)The
Subscriber is not relying on the Company or any of its employees, agents, or advisors with respect to the legal, tax, economic
and related considerations of an investment in the Securities, and the Subscriber has relied on the advice of, or has consulted
with, only its own Advisors.

 

(o)
The Subscriber acknowledges that any estimates or forward-looking statements or projections furnished by the Company to the
Subscriber were prepared by the management of the Company in good faith, but that the attainment of any such projections, estimates
or forward-looking statements cannot be guaranteed by the Company or its management and should not be relied upon.

 

(p)No
oral or written representations have been made, or oral or written information furnished, to the Subscriber or its Advisors, if
any, in connection with the Offering that are in any way inconsistent with the information contained herein.

 

(q)(For
ERISA plans only) The fiduciary of the ERISA plan (the “Plan”) represents that such fiduciary has been informed
of and understands the Company’s investment objectives, policies and strategies, and that the decision to invest “plan
assets” (as such term is defined in ERISA) in the Company is consistent with the provisions of ERISA that require diversification
of plan assets and impose other fiduciary responsibilities. The Subscriber or Plan fiduciary (i) is responsible for the decision
to invest in the Company; (ii) is independent of the Company and any of its affiliates; (iii) is qualified to make such investment
decision; and (iv) in making such decision, the Subscriber or Plan fiduciary has not relied primarily on any advice or recommendation
of the Company or any of its affiliates.

 

(r)This
Agreement is not enforceable by the Subscriber unless it has been accepted by the Company, and the Subscriber acknowledges and
agrees that the Company reserves the right to reject any subscription for any reason.

 

(s)The
Subscriber is an “Accredited Investor” as defined in Rule 501(a) under the Securities Act. In general, an “Accredited
Investor” is deemed to be an institution with assets in excess of $5,000,000 or individuals with a net worth in excess of
$1,000,000 (excluding such person’s residence) or annual income exceeding $200,000 or $300,000 jointly with his or her spouse.

 

(t)The
Subscriber, either alone or together with its representatives, has such knowledge, sophistication and experience in business and
financial matters so as to be capable of evaluating the merits and risks of the Offering, and has so evaluated the merits and
risks of such investment. The Subscriber has not authorized any person or entity to act as its Purchaser Representative (as that
term is defined in Regulation D of the General Rules and Regulations under the Securities Act) in connection with the Offering.
The Subscriber is able to bear the economic risk of an investment in the Securities and, at the present time, is able to afford
a complete loss of such investment.

 

(u)The
Subscriber has reviewed, or had the opportunity to review, all of the SEC Filings (as defined below) and all “Risk Factors”
and “Forward Looking Statements” disclaimers contained therein. In addition, the Subscriber has reviewed and acknowledges
it has such knowledge, sophistication and experience in securities matters.

 

    	- 8 -

    	 

    

 

4.THE
COMPANY’S Representations, Warranties and Covenants

 

The
Company hereby acknowledges, agrees with and represents, warrants and covenants to each Subscriber, as follows:

 

(a)
Organization and Qualification. The Company is a corporation duly organized, validly existing and in good standing under
the laws of its state of incorporation. The Company is duly qualified to do business, and is in good standing in the states required
due to (a) the ownership or lease of real or personal property for use in the operation of the Company’s business or (b)
the nature of the business conducted by the Company. The Company has all requisite power, right and authority to own, operate
and lease its properties and assets, to carry on its business as now conducted, to execute, deliver and perform its obligations
under this Agreement and the other Transaction Documents to which it is a party, and to carry out the transactions contemplated
hereby and thereby. All actions on the part of the Company and its officers and directors necessary for the authorization, execution,
delivery and performance of this Agreement and the other Transaction Documents, the consummation of the transactions contemplated
hereby and thereby, and the performance of all of the Company’s obligations under this Agreement and the other Transaction
Documents have been taken or will be taken prior to the Closing. This Agreement has been, and the other Transaction Documents
to which the Company is a party on the Closing will be, duly executed and delivered by the Company, and this Agreement is, and
each of the other Transaction Documents to which it is a party on the Closing will be, a legal, valid and binding obligation of
the Company, enforceable against the Company in accordance with its terms, except as may be limited by bankruptcy, reorganization,
insolvency, moratorium and similar laws of general application relating to or affecting the enforcement of rights of creditors,
and except as enforceability of the obligations hereunder are subject to general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or law).

 

(b)Issuance
of Securities. The Securities to be issued to the Subscriber pursuant to this Agreement, when issued and delivered in accordance
with the terms of this Agreement, will be duly and validly issued and will be fully paid and non-assessable.

 

(c)Authorization;
Enforcement. The execution, delivery and performance of this Agreement and the other Transaction Documents by the Company,
and the consummation of the transactions contemplated hereby and thereby, will not (a) constitute a violation (with or without
the giving of notice or lapse of time, or both) of any provision of any law or any judgment, decree, order, regulation or rule
of any court, agency or other governmental authority applicable to the Company, (b) require any consent, approval or authorization
of, or declaration, filing or registration with, any person, (c) result in a default (with or without the giving of notice or
lapse of time, or both) under, acceleration or termination of, or the creation in any party of the right to accelerate, terminate,
modify or cancel, any agreement, lease, note or other restriction, encumbrance, obligation or liability to which the Company is
a party or by which it is bound or to which any assets of the Company are subject, (d) result in the creation of any lien or encumbrance
upon the assets of the Company, or upon any shares of Common Stock, preferred stock or other securities of the Company, (e) conflict
with or result in a breach of or constitute a default under any provision of the certificate of incorporation or bylaws of the
Company, or (f) invalidate or adversely affect any permit, license, authorization or status used in the conduct of the business
of the Company.

 

(d)SEC
Filings. The Company is subject to, and in full compliance with, the reporting requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company has made available to each Subscriber
through the EDGAR system true and complete copies of the Company’s filings for the prior two full fiscal years plus any
interim period (collectively, the “SEC Filings”), and all such SEC Filings are incorporated herein by reference.
The SEC Filings, when they were filed with the SEC (or, if any amendment with respect to any such document was filed, when such
amendment was filed), complied in all material respects with the applicable requirements of the Exchange Act and the rules and
regulations thereunder and did not, as of such date, contain an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading. All reports and statements required to be filed by the Company under the Exchange Act have
been filed, together with all exhibits required to be filed therewith. The Company and each of its direct and indirect subsidiaries,
if any (collectively, the “Subsidiaries”), are engaged in all material respects only in the business described
in the SEC Filings, and the SEC Filings contain a complete and accurate description in all material respects of the business of
the Company and the Subsidiaries.

 

(e)No
Financial Advisor. The Company acknowledges and agrees that each Subscriber is acting solely in the capacity of an arm’s
length purchaser with respect to the Securities and the transactions contemplated hereby. The Company further acknowledges that
Subscriber 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 any Subscriber or any of its representatives or agents
in connection with this Agreement and the transactions contemplated hereby is merely incidental to such Subscriber’s purchase
of the Securities. The Company further represents to each Subscriber that the Company’s decision to enter into this Agreement
has been based solely on the independent evaluation of the transactions contemplated hereby by the Company and its representatives.

 

    	- 9 -

    	 

    

 

(f)Indemnification.
The Company will indemnify and hold harmless each Subscriber and, where applicable, its directors, officers, employees, agents,
advisors and shareholders, from and against any and all loss, liability, claim, damage and expense whatsoever (including, but
not limited to, any and all fees, costs and expenses whatsoever reasonably incurred in investigating, preparing or defending against
any claim, lawsuit, administrative proceeding or investigation whether commenced or threatened) arising out of or based upon any
representation or warranty of the Company contained herein or in any document furnished by the Company to each Subscriber in connection
herewith being untrue in any material respect or any breach or failure by the Company to comply with any covenant or agreement
made by the Company to each Subscriber in connection therewith; provided, however, that the Company’s liability
shall not exceed such Subscriber’s Aggregate Purchase Price tendered hereunder.

 

(g)Capitalization
and Additional Issuances. The authorized and outstanding capital stock of the Company on a fully diluted basis as of the date
of this Agreement and the Closing Date (not including the Securities) are set forth in the Company’s SEC Filings. Except
as set forth in the Company’s SEC Filings, there are no options, warrants, or rights to subscribe to, securities, rights,
understandings or obligations convertible into or exchangeable for or giving any right to subscribe for any shares of capital
stock or other equity interest of the Company or any of its subsidiaries. The only officer, director, employee and consultant
stock option or stock incentive plan or similar plan currently in effect or contemplated by the Company are described in the Company’s
SEC Filings. There are no outstanding agreements or preemptive or similar rights affecting the Company’s Common Stock.

 

(h)Private
Placements. Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section 3, no registration
under the Securities Act is required for the offer and sale of the Securities by the Company to the Subscribers as contemplated
hereby.

  

(j)Investment
Company. The Company is not, and is not an affiliate of, and immediately after receipt of payment for the Shares will not
be or be an affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended.
The Company shall conduct its business in a manner so that it will not become subject to the Investment Company Act.

 

(k)Shell
Company Status. To the Company’s knowledge, the Company is not an issuer identified in Rule 144(i)(1) of the Securities
Act. The Company is, and has been for a period of at least 90 days, subject to the reporting requirements of Section 13 or Section
15(d) of the Exchange Act. The Company has filed its current “Form 10 information” with the SEC pursuant to and in accordance
with applicable requirements reflecting its status as an entity that is no longer an issuer described in Rule 144(i)(1) and at
least one (1) year has elapsed from the date that the Company filed “Form 10 information” with the SEC.

 

(l)Litigation.
Except as set forth in the SEC Filings, there is no action, suit, proceeding, by the Principal Market, any court, public board,
other Governmental Entity, self-regulatory organization or body pending or, to the knowledge of the Company, threatened against
or affecting the Company or any of its Subsidiaries, the Common Stock or any of the Company’s or its Subsidiaries’
officers or directors which is outside of the ordinary course of business or individually or in the aggregate material to the
Company or any of its Subsidiaries. No director, officer or employee of the Company or any of its subsidiaries has willfully violated
18 U.S.C. §1519 or engaged in spoliation in reasonable anticipation of litigation. The SEC has not issued any stop order
or other order suspending the effectiveness of any registration statement filed by the Company under the Securities Act or the
Exchange Act. “Governmental Entity” means any nation, state, county, city, town, village, district, or other
political jurisdiction of any nature, federal, state, local, municipal, foreign, or other government, governmental or quasi-governmental
authority of any nature (including any governmental agency, branch, department, official, or entity and any court or other tribunal),
multi-national organization or body; or body exercising, or entitled to exercise, any administrative, executive, judicial, legislative,
police, regulatory, or taxing authority or power of any nature or instrumentality of any of the foregoing, including any entity
or enterprise owned or controlled by a government or a public international organization or any of the foregoing. “Principal
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE MKT, The NASDAQ Capital Market, The NASDAQ Global Market, The NASDAQ Global Select Market, the
New York Stock Exchange, OTCQB or the OTC Bulletin Board (or any successors to any of the foregoing).

  

(m)
Employee Relations. Neither the Company nor any of its Subsidiaries is a party to any collective bargaining agreement
or employs any member of a union. The Company believes that its and its Subsidiaries’ relations with their respective employees
are good. The Company and its Subsidiaries are in compliance with all federal, state, local and foreign laws and regulations respecting
labor, employment and employment practices and benefits, terms and conditions of employment and wages and hours, except where
failure to be in compliance would not, either individually or in the aggregate, reasonably be expected to result in a Material
Adverse Effect. “Material Adverse Effect” means any material adverse effect on (i) the business, properties,
assets, liabilities, operations (including results thereof), condition (financial or otherwise) or prospects of the Company or
any Subsidiary, individually or taken as a whole, (ii) the transactions contemplated hereby or in any of the other Transaction
Documents or (iii) the authority or ability of the Company or any of its Subsidiaries to perform any of their respective obligations
under any of the Transaction Documents.

 

    	- 10 -

    	 

    

 

(n)
Tax Status. The Company and each of its Subsidiaries (i) has timely made or filed all foreign, federal and state income
and all other tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has timely paid
all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns,
reports and declarations, except those being contested in good faith and (iii) has set aside on its books provision reasonably
adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply.
There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers
of the Company and its Subsidiaries know of no basis for any such claim. The Company is not operated in such a manner as to qualify
as a passive foreign investment company, as defined in Section 1297 of the U.S. Internal Revenue Code of 1986, as amended.

 

(o)
Indebtedness and Other Contracts. Except as set forth in the SEC Filings, neither the Company nor any of its Subsidiaries,
(i) has any outstanding Indebtedness (as defined below), (ii) is a party to any contract, agreement or instrument, the violation
of which, or default under which, by the other party(ies) to such contract, agreement or instrument could reasonably be expected
to result in a Material Adverse Effect, (iii) is in violation of any term of, or in default under, any contract, agreement or
instrument relating to any Indebtedness, except where such violations and defaults would not result, individually or in the aggregate,
in a Material Adverse Effect, or (iv) is a party to any contract, agreement or instrument relating to any Indebtedness, the performance
of which, in the judgment of the Company’s officers, has or is expected to have a Material Adverse Effect. For purposes
of this Agreement: (x) “Indebtedness” of any Person means, without duplication (A) all indebtedness for borrowed
money, (B) all obligations issued, undertaken or assumed as the deferred purchase price of property or services (including, without
limitation, “capital leases” in accordance with generally accepted accounting principles) (other than trade payables
entered into in the ordinary course of business), (C) all reimbursement or payment obligations with respect to letters of credit,
surety bonds and other similar instruments, (D) all obligations evidenced by notes, bonds, debentures or similar instruments,
including obligations so evidenced incurred in connection with the acquisition of property, assets or businesses, (E) all indebtedness
created or arising under any conditional sale or other title retention agreement, or incurred as financing, in either case with
respect to any property or assets acquired with the proceeds of such indebtedness (even though the rights and remedies of the
seller or bank under such agreement in the event of default are limited to repossession or sale of such property), (F) all monetary
obligations under any leasing or similar arrangement which, in connection with generally accepted accounting principles, consistently
applied for the periods covered thereby, is classified as a capital lease, (G) all indebtedness referred to in clauses (A) through
(F) above secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured
by) any mortgage, claim, lien, tax, right of first refusal, pledge, charge, security interest or other encumbrance upon or in
any property or assets (including accounts and contract rights) owned by any Person, even though the Person which owns such assets
or property has not assumed or become liable for the payment of such indebtedness, and (H) all Contingent Obligations in respect
of indebtedness or obligations of others of the kinds referred to in clauses (A) through (G) above; (y) “Contingent Obligation”
means, as to any Person, any direct or indirect liability, contingent or otherwise, of that Person with respect to any indebtedness,
lease, dividend or other obligation of another Person if the primary purpose or intent of the Person incurring such liability,
or the primary effect thereof, is to provide assurance to the obligee of such liability that such liability will be paid or discharged,
or that any agreements relating thereto will be complied with, or that the holders of such liability will be protected (in whole
or in part) against loss with respect thereto; and (z) “Person” means an individual, a limited liability company,
a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity and any Governmental
Entity or any department or agency thereof.

 

(p)No
Undisclosed Events, Liabilities, Developments or Circumstances. Except as set forth in the SEC Filings, no event, liability,
development or circumstance has occurred or exists, or is reasonably expected to exist or occur with respect to the Company, any
of its Subsidiaries or any of their respective businesses, properties, liabilities, prospects, operations (including results thereof)
or condition (financial or otherwise), that (i) would be required to be disclosed by the Company under applicable securities laws
on a registration statement on Form S-1 filed with the SEC relating to an issuance and sale by the Company of its Common Stock
and which has not been publicly announced, (ii) could have a material adverse effect on any Subscriber’s investment hereunder
or (iii) would reasonably be expected to have a Material Adverse Effect.

 

    	- 11 -

    	 

    

 

(q)No
Additional Agreements. Neither the Company nor any of its Subsidiaries has any agreement or understanding with any Subscriber
with respect to the transactions contemplated by the Transaction Documents other than pursuant to documents substantially identical
to the Transaction Documents.

 

(r)No
Disqualification Events. To the Company’s Knowledge, none of the Company, any of its predecessors, any affiliated issuer,
any director, executive officer, other officer of the Company participating in the offering contemplated hereby, any beneficial
owner of 20% or more of the Company’s outstanding voting equity securities, calculated on the basis of voting power, nor
any promoter (as that term is defined in Rule 405 under the Securities Act) connected with the Company in any capacity at the
time of sale (each, an “Issuer Covered Person”) is subject to any of the “Bad Actor” disqualifications
described in Rule 506(d)(1)(i) to (viii) under the Securities Act (a “Disqualification Event”), except for a Disqualification
Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether any Issuer Covered Person
is subject to a Disqualification Event.

 

(s)General
Solicitation. None of the Company, any of its affiliates (as defined in Rule 501(b) under the Securities Act) or any person
acting on behalf of the Company or such affiliate will solicit any offer to buy or offer or sell the Securities by means of any
form of general solicitation or general advertising within the meaning of Regulation D, including: (i) any advertisement, article,
notice or other communication published in any newspaper, magazine or similar medium or broadcast over television or radio; and
(ii) any seminar or meeting whose attendees have been invited by any general solicitation or general advertising.

 

5. OTHER AGREEMENTS OF THE PARTIES

 

(a)Furnishing
of Information. As long as any Subscriber owns Securities, the Company covenants to timely file (or obtain extensions in respect
thereof and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant
to the Exchange Act. As long as any Subscriber owns Securities, if the Company is not required to file reports pursuant to the
Exchange Act, it will prepare and furnish to the Subscribers and make publicly available in accordance with Rule 144(c) under
the Securities Act such information as is required for the Subscribers to sell the Securities under Rule 144. The Company further
covenants that it will take such further action as any holder of Securities may reasonably request, all to the extent required
from time to time to enable such person to sell such Securities without registration under the Securities Act within the limitation
of the exemptions proved by Rule 144 under the Securities Act.

 

(b)Shareholder
Rights Plan. No claim will be made or enforced by the Company or, to the knowledge of the Company, any other person that any
Subscriber is an “Acquiring Person” under any shareholder rights plan or similar plan or arrangement in effect or
hereafter adopted by the Company, or that any Subscriber could be deemed to trigger the provisions of any such plan or arrangement,
by virtue of receiving Securities under the Transaction Documents or under any other agreement between the Company and the Subscribers.

 

(c)Securities
Laws Disclosure; Publicity. The Company shall by 9 a.m. (New York City time) (a) on or prior to the fourth Business Day after
the Closing Date, issue a press release disclosing the material terms of the transactions contemplated hereby, and (b) within
four (4) Business Days after the Closing Date the Company shall, file a Current Report on Form 8-K with the SEC, including the
Transaction Documents as exhibits thereto. The Subscriber authorizes the Company at its discretion to include the Subscriber’s
name and amount of investment in the Offering. The Company shall not be required to consult with any Subscriber which is a Qualified
Institutional Buyer (“QIB”), as defined in SEC Rule 501 of Regulation D, in regards to the issuing of any press releases
with respect to the transactions contemplated hereby, and no Subscriber shall issue any such press release or otherwise make any
such public statement without the prior consent of the Company. The Company shall consult with each other Subscriber prior to
using the name of such Subscriber or any of its affiliates in any press release or other publicly filed materials.

 

(d)Integration.
The Company shall not, and shall use its best efforts to ensure that no affiliate of the Company shall, after the date hereof,
sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security that would be integrated with
the offer or sale of the Units in a manner that would require the registration under the Securities Act of the sale of the Units
to the Subscribers.

 

(e)Reservation
of Securities. The Company shall maintain a reserve from its duly authorized shares of Common Stock for issuance pursuant
to the Transaction Documents in such amount as may be required to fulfill its obligations in full under the Transaction Documents.
In the event that at any time the then authorized shares of Common Stock are insufficient for the Company to satisfy its obligations
in full under the Transaction Documents, the Company shall promptly take such actions as may be required to increase the number
of authorized shares.

 

    	- 12 -

    	 

    

  

(f)Use
of Proceeds. The Company covenants and agrees to use all of the proceeds of this Offering for: (i) its digital currency mining
expansion (ii) strategic investments, and (iii) general working capital purposes. Provided, further that the 2015 calendar year
cash salaries and bonuses for each of Charles Allen the Company’s CEO, CFO and Chairman, and Michal Handerhan the Company’s
COO, Secretary and Director will be no more than $125,000 each. The restrictions set forth in this Section 5(f) shall not apply
to securities issued or issuable pursuant to the Company’s current equity incentive plan (the “2014 Plan”) or
any new equity incentive plans the Company may adopt.

 

6.CONDITIONS
TO ACCEPTANCE OF SUBSCRIPTION

 

(a)
The Subscriber’s obligation to purchase the Units is conditioned upon satisfaction of the following conditions precedent
on or before the Closing Date:

 

(i)As
of the Closing, no legal action, suit or proceeding shall be pending against the Company that seeks to restrain or prohibit the
transactions contemplated by this Agreement.

 

(ii)The
representations and warranties of the Company contained in this Agreement shall have been true and correct in all material respects
on the date of this Agreement and shall be true and correct as of the Closing as if made on the Closing Date.

 

(iii)
The Company’s counsel shall, upon request, have delivered to each Subscriber a legal opinion as to the matters set forth
in Exhibit C, in form and substance reasonably satisfactory to such Subscriber.

 

 7. MISCELLANEOUS PROVISIONS

 

(a)All
parties hereto have been represented by counsel, and no inference shall be drawn in favor of or against any party by virtue of
the fact that such party’s counsel was or was not the principal draftsman of this Agreement.

 

(b)Each
of the parties hereto shall be responsible to pay the costs and expenses of its own legal counsel in connection with the preparation
and review of this Agreement and related documentation.

 

(c)Neither
this Agreement, nor any provisions hereof, shall be waived, modified, discharged or terminated except by an instrument in writing
signed by the party against whom any waiver, modification, discharge or termination is sought.

 

(d)The
representations, warranties and agreement of each Subscriber and the Company made in this Agreement shall survive the execution
and delivery of this Agreement and the delivery of the Securities.

 

(e)Any
party may send any notice, request, demand, claim or other communication hereunder to the Subscriber at the address set forth
on the signature page of this Agreement or to the Company at its primary office (including personal delivery, expedited courier,
messenger service, fax, ordinary mail or electronic mail), but no such notice, request, demand, claim or other communication will
be deemed to have been duly given unless and until it actually is received by the intended recipient. Any party may change the
address to which notices, requests, demands, claims and other communications hereunder are to be delivered by giving the other
parties written notice in the manner herein set forth.

 

(f)Except
as otherwise provided herein, this Agreement shall be binding upon, and inure to the benefit of, the parties to this Agreement
and their heirs, executors, administrators, successors, legal representatives and assigns. If any Subscriber is more than one
person or entity, the obligation of any Subscriber shall be joint and several and the agreements, representations, warranties
and acknowledgments contained herein shall be deemed to be made by, and be binding upon, each such person or entity and its heirs,
executors, administrators, successors, legal representatives and assigns. This Agreement sets forth the entire agreement and understanding
between the parties as to the subject matter hereof and merges and supersedes all prior discussions, agreements and understandings
of any and every nature among them.

 

    	- 13 -

    	 

    

 

(g)This
Agreement is not transferable or assignable by any Subscriber.

 

(h)The
Company hereby represents and warrants as of the date hereof and as of the Closing Date that none of the terms offered to any
Person with respect to any offer, sale or subscription of Securities (each a “Subscription Document”), is or
will be more favorable to such Person than those of the Subscriber and this Agreement shall be, without any further action by
the Subscriber or the Company, deemed amended and modified in an economically and legally equivalent manner such that the Subscriber
shall receive the benefit of the more favorable terms contained in such Subscription Document. Notwithstanding the foregoing,
the Company agrees, at its expense, to take such other actions (such as entering into amendments to the Transaction Documents)
as the Subscriber may reasonably request to further effectuate the foregoing.

 

(i)Except
as otherwise provided herein, this Agreement shall not be changed, modified or amended except in writing signed by both (a) the
Company and (b) Subscribers in the Offering holding 75% of the Units issued in the Offering then held by the original Subscribers.
The Company shall be prohibited from offering any additional consideration to any Subscriber in this Offering (or such original
Subscriber’s transferee) for the purposes of inducing such person to change, modify, waive or amend any term of this Agreement
or any other Transaction Document without making the same offer on a pro-rata basis to all other Subscribers (and those transferees)
in this offering allocable to the securities acquired by such transferee(s).

 

(j)This
Agreement shall be governed by and construed in accordance with the laws of the State of New York, without giving effect to conflicts
of law principles.

 

(k)The
Company and each Subscriber hereby agree that any dispute that may arise between them arising out of or in connection with this
Agreement shall be adjudicated before a court located in the City of New York, Borough of Manhattan, and they hereby submit to
the exclusive jurisdiction of the federal and state courts of the State of New York located in the City of New York, Borough of
Manhattan with respect to any action or legal proceeding commenced by any party, and irrevocably waive any objection they now
or hereafter may have respecting the venue of any such action or proceeding brought in such a court or respecting the fact that
such court is an inconvenient forum, relating to or arising out of this Agreement or any acts or omissions relating to the sale
of the securities hereunder, and consent to the service of process in any such action or legal proceeding by means of registered
or certified mail, return receipt requested, postage prepaid, in care of the address set forth herein or such other address as
either party shall furnish in writing to the other.

 

(l)WAIVER
OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES
EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY
AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.

 

(m)This
Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.

 

[Signature
Pages Follow]

 

    	- 14 -

    	 

    

 

ALL
SUBSCRIBERS MUST COMPLETE THIS PAGE

 

IN
WITNESS WHEREOF, the Subscriber has executed this Agreement on the ____ day of _______, 2015.

 

	 	x
    $0.30 for per Unit =	 
	Units subscribed
    for	 	 Aggregate
    Purchase Price

 

Manner in
which Title is to be held (Please Check One):

 

	1.	 	___	 	Individual	7.	 	___	 	Trust/Estate/Pension or Profit sharing Plan
	 	 	 	 	 	 	 	 	 	Date Opened: ______________
	2.	 	___	 	Joint Tenants with Right of Survivorship	8.	 	___	 	As a Custodian for
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	Under the Uniform Gift to Minors Act of the State of
	 	 	 	 	 	 	 	 	 	 
	3.	 	___	 	Community Property	9.	 	___	 	Married with Separate Property
	4.	 	___	 	Tenants in Common	10.	 	___	 	Keogh
	5.	 	___	 	Corporation/Partnership/ Limited Liability Company	11.	 	___	 	Tenants by the Entirety
	6.	 	___	 	IRA	 	 	 	 	 

 

ALTERNATIVE
DISTRIBUTION INFORMATION

 

To
direct distribution to a party other than the registered owner, complete the information below. YOU MUST COMPLETE THIS SECTION
IF THIS IS AN IRA INVESTMENT.

 

Name of
Firm (Bank, Brokerage, Custodian):

 

Account
Name:

 

Account
Number:

 

Representative
Name:

 

Representative
Phone Number:

 

Address:

 

City, State,
Zip:

 

    	- 15 -

    	 

    

 

IF
MORE THAN ONE SUBSCRIBER, EACH SUBSCRIBER MUST SIGN.

INDIVIDUAL
SUBSCRIBERS MUST COMPLETE THIS PAGE 16.

SUBSCRIBERS
WHICH ARE ENTITIES MUST COMPLETE PAGE 17.

 

EXECUTION
BY NATURAL PERSONS

 

	 
	Exact
                                                                            Name in Which Title is to be Held

 

	 	 	 
	Name (Please
    Print)	 	Name of Additional
    Purchaser
	 	 	 
	 	 	 
	Residence: Number
    and Street	 	Address of Additional
    Purchaser
	 	 	 
	 	 	 
	City, State and
    Zip Code	 	City, State and
    Zip Code
	 	 	 
	 	 	 
	Social Security
    Number	 	Social Security
    Number
	 	 	 
	 	 	 
	Telephone Number	 	Telephone Number
	 	 	 
	 	 	 
	Fax Number (if
    available)	 	Fax Number (if
    available)
	 	 	 
	 	 	 
	E-Mail (if available)	 	E-Mail (if available)
	 	 	 
	 	 	 
	(Signature)	 	(Signature of
    Additional Purchaser)

 

ACCEPTED
this ___ day of _________ 2015, on behalf of the Company.

 

	 	By:	 
	 	Name: 	 
	 	Title:	 

 

[SIGNATURE
PAGE FOR SUBSCRIPTION AGREEMENT]

 

    	- 16 -

    	 

    

 

EXECUTION
BY SUBSCRIBER WHICH IS AN ENTITY

(Corporation,
Partnership, LLC, Trust, Etc.)

 

	 
	Name
    of Entity (Please Print)

 

	Date
    of Incorporation or Organization:

 

	State
    of Principal Office:

 

	Federal
    Taxpayer Identification Number:	 
	 	 
	 	 
	Office Address	 
	 	 
	 	 
	City, State and
    Zip Code	 
	 	 
	 	 
	Telephone Number	 
	 	 
	 	 
	Fax Number (if
    available)	 
	 	 
	 	 
	E-Mail (if available)	 
	 	 

 

	 	 	 	By:	 
	 	 	 	Name:	 
	 	 	 	Title:	 
	[seal]	 	 	 	 
	 	 	 	 	 
	Attest:	 	 	 	 
		(If Entity is a Corporation)	 	 	 
	 	 	 	 	 
	 	 	 	Address	 

 

ACCEPTED
this ____ day of __________ 2015, on behalf of the Company.

 

	 	By:	 
	 	Name:	 
	 	Title:	 

  

[SIGNATURE
PAGE FOR SUBSCRIPTION AGREEMENT]

 

    	- 17 -

    	 

    

 

INVESTOR
QUESTIONNAIRE

 

Instructions:
Check all boxes below which correctly describe you.

 

	[  ]	 	You are (i) a bank, as defined
    in Section 3(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), (ii) a savings
    and loan association or other institution, as defined in Section 3(a)(5)(A) of the Securities Act, whether acting in an individual
    or fiduciary capacity, (iii) a broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of
    1934, as amended (the “Exchange Act”), (iv) an insurance company as defined in Section 2(13) of
    the Securities Act, (v) an investment company registered under the Investment Company Act of 1940, as amended (the
    “Investment Company Act”), (vi) a business development company as defined in Section 2(a)(48) of
    the Investment Company Act, (vii) a Small Business Investment Company licensed by the U.S. Small Business Administration
    under Section 301 (c) or (d) of the Small Business Investment Act of 1958, as amended, (viii) a plan established and
    maintained by a state, its political subdivisions, or an agency or instrumentality of a state or its political subdivisions,
    for the benefit of its employees and you have total assets in excess of $5,000,000, or (ix) an employee benefit plan
    within the meaning of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) and (1)
    the decision that you shall subscribe for and purchase shares of common stock or preferred stock, is made by a plan fiduciary,
    as defined in Section 3(21) of ERISA, which is either a bank, savings and loan association, insurance company, or registered
    investment adviser, or (2) you have total assets in excess of $5,000,000 and the decision that you shall subscribe for and
    purchase the Units is made solely by persons or entities that are accredited investors, as defined in Rule 501 of Regulation
    D promulgated under the Securities Act (“Regulation D”) or (3) you are a self-directed plan and the decision
    that you shall subscribe for and purchase the Securities is made solely by persons or entities that are accredited investors.
	 	 	 
	[  ]	 	You are a private business development
    company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940, as amended.
	 	 	 
	[  ]	 	You are an organization described in
    Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the “Code”), a corporation, Massachusetts
    or similar business trust or a partnership, in each case not formed for the specific purpose of making an investment in the
    Securities and its underlying securities in excess of $5,000,000.
	 	 	 
	[  ]	 	You are a director or executive officer
    of the Company.
	 	 	 
	[  ]	 	You are a natural person whose individual
    net worth, or joint net worth with your spouse, exceeds $1,000,000 (excluding residence) at the time of your subscription
    for and purchase of the Securities.
	 	 	 
	[  ]	 	You are a natural person who had an
    individual income in excess of $200,000 in each of the two most recent years or joint income with your spouse in excess of
    $300,000 in each of the two most recent years, and who has a reasonable expectation of reaching the same income level in the
    current year.
	 	 	 
	[  ]	 	You are a trust, with total assets
    in excess of $5,000,000, not formed for the specific purpose of acquiring the Securities and whose subscription for and purchase
    of the Securities is directed by a sophisticated person as described in Rule 506(b)(2)(ii) of Regulation D.
	 	 	 
	[  ]	 	You are an entity in which all of the
    equity owners are persons or entities described in one of the preceding paragraphs.

 

    	- 18 -

    	 

    

 

Check
all boxes below which correctly describe you.

 

With respect
to this investment in the Securities, your:

 

	Investment Objectives: 	[  ] Aggressive Growth 	[  ] Speculation	 
	 	 	 	 
	Risk Tolerance: 	[  ] Low Risk	[  ] Moderate Risk 	[  ] High Risk 

 

	Are you associated with a FINRA Member Firm?
    	[  ] Yes 	[  ] No

 

Your
initials (purchaser and co-purchaser, if applicable) are required for each item below:

 

	____	 	____ 	 	I/We
    understand that this investment is not guaranteed.
	 	 	 	 	 
	____	 	____ 	 	I/We
    are aware that this investment is not liquid.
	 	 	 	 	 
	____	 	____ 	 	I/We
    are sophisticated in financial and business affairs and are able to evaluate the risks and merits of an investment in this
    offering.
	 	 	 	 	 
	____	 	____ 	 	I/We
    confirm that this investment is considered “high risk.” (This type of investment is considered high risk due to
    the inherent risks including lack of liquidity and lack of diversification. Success or failure of private placements such
    as this is dependent on the corporate issuer of these securities and is outside the control of the investors. While potential
    loss is limited to the amount invested, such loss is possible.)

 

The
Subscriber hereby represents and warrants that all of its answers to this Investor Questionnaire are true as of the date of its
execution of the Subscription Agreement pursuant to which it purchased the Securities.

 

	 	 	 
	Name of Purchaser [please print]	 	Name of Co-Purchaser [please print]
	 	 	 
	 	 	 
	Signature of Purchaser (Entities please provide signature of Purchaser’s
    duly authorized signatory.)	 	Signature of Co-Purchaser
	 	 	 
	 	 	 
	Name of Signatory (Entities only)	 	 
	 	 	 
	 	 	 
	Title of Signatory (Entities only)	 	 

 

[SIGNATURE
PAGE FOR INVESTOR QUESTIONNAIRE]

 

    	- 19 -

    	 

    

 

Exhibit
A

 

Form
of Warrant

 

See
attached.

 

    	- 20 -

    	 

    

  

Exhibit
B

 

Form
of Registration Rights Agreement

 

See
attached.

 

    	- 21 -

    	 

    

 

Exhibit
C

 

Legal
Opinion of Company Counsel

 

1. The
Company is existing as a corporation under the laws of Nevada and has the requisite corporate power to enter into and perform
its obligations under the Agreement.

 

2.
The Agreement has been duly authorized, executed and delivered by the Company and constitutes a valid and binding obligation
of the Company, enforceable against it in accordance with its terms.

 

3. The
Shares have been duly authorized and, when issued, delivered and paid for in accordance with the terms of the Agreement, will
be validly issued, fully paid and non-assessable and free of preemptive or similar rights arising from the Governing
Documents or the Specified Agreements.

 

4. The
execution, delivery and performance of the Agreement by the Company, the issuance and sale of the Shares and the consummation
by the Company of the transactions contemplated by the Agreement will not (i) result in a breach or violation of any of the
terms of the Governing Documents, or (ii) violate in any material respect any New York, Nevada or federal law, statute, rule
or regulation which in our experience is applicable to similar transactions, or any judgment, order or decree of any Nevada,
New York, or federal court or governmental agency or body known to us.

 

5. Except
for the filing of a Form D under the Securities Act, the post-closing registration of the Shares under the Securities Act as
contemplated by the Agreement, and except for such consents, approvals, authorizations, registrations or qualifications as
may be required under applicable state securities laws in connection with the sale of the Shares (as to which no opinion is
given), no consent, approval, authorization or order of, or filing, qualification or registration with, any court or
governmental or non-governmental agency or body, which has not been obtained or taken and is not in full force and effect, is
required for the execution, delivery and performance of the Agreement by the Company, the offer, issue and sale of the Shares
or the consummation by the Company of the transactions contemplated by the Agreement.

 

6. The offer and sale of the Shares by the Company to the Investors
as contemplated by the Agreement are exempt from the registration requirements of the Securities Act. We do not express any opinion
regarding the circumstances under which the Investors may resell or otherwise dispose of the Shares.

 

7.
The Company is not, and after giving effect to the offering and sale of the Shares and the application of the proceeds
thereof as described in the Agreement will not be, an “investment company” within the meaning of such term as
defined in the Investment Company Act and the rules and regulations of the Commission thereunder.

 

    	- 22 -

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