Document:

SECURITIES PURCHASE AGREEMENT

By and Between

OPTIMIZERx CORPORATION

and

VICIS CAPITAL MASTER FUND

 

 DATED SEPTEMBER 16, 2011

    	 

    	 

    
 

SECURITIES PURCHASE AGREEMENT

This SECURITIES
PURCHASE AGREEMENT (the “Agreement”), dated this 16th day of September 2011, is made by and between OPTIMIZERx
CORPORATION, a Nevada corporation (the “Company”), and VICIS CAPITAL MASTER FUND (the “Purchaser”),
a sub-trust of Vicis Capital Series Master Trust, a unit trust organized and existing under the laws of the Cayman Islands.

R E C I T A L S

WHEREAS, pursuant
to the terms and conditions of this Agreement, the Company wishes to issue and sell to the Purchaser the following securities (collectively,
the “Securities”): (a) up to 50 shares (the “Preferred Shares”) of the Company’s
Series B Convertible Preferred Stock, par value $.001 per share (the “Series B Preferred Stock”), with such
terms, rights and preferences as are set forth in the Certificate of Designation for the Series B Preferred Stock, as amended by
the Amendment to Certificate of Designation for the Series B Preferred Stock set forth on Exhibit A attached hereto; and
(b) Series B Warrants to purchase up to an aggregate of 3,333,334 shares of common stock, par value $.001 per share (the “Common
Stock”), of the Company initially at an exercise price of $3.00 per share in the form attached hereto as Exhibit B
(the “Series B Warrant” or “Warrant”).

WHEREAS, the Purchaser
desires to purchase such Securities from the Company according to the terms hereinafter set forth.

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

ARTICLE
I

Purchase and Sale OF THE SECURITIES

1.1               
Purchase and Sale of the Securities. Subject to the terms and conditions
hereof and in reliance on the representations and warranties contained herein, or made pursuant hereto, the Company will issue
and sell to the Purchaser, and the Purchaser will purchase from the Company at the closings of the transactions contemplated hereby
(each a “Closing” and collectively, the “Closings”), an amount of Securities for the consideration
as set forth in Section 1.3 hereof (the total consideration paid, the “Purchase Price”).

1.2               
Closing. Each Closing shall be deemed to occur at such place, date and
time as mutually agreeable to the parties (each a “Closing Date”). 

1.3               
Closing Matters. 

(a)                
Initial Closing. At the first Closing (the “Initial Closing”, and
the date thereof, the “Initial Closing Date”), which shall occur within 5 days of the date of execution of that
certain Termination Agreement and Release by and among the Company, OptimizeRx Corporation, a Michigan corporation, the Purchaser,
Physicians Interactive Holdings, LLC, a Delaware limited liability company and Physicians Interactive Inc., a Delaware corporation,
in the form of Exhibit H attached hereto (the “Termination Agreement”), subject to the terms and conditions
hereof, the following actions shall be taken:

 

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(i)                  
The Company, against delivery of payment of the $1,500,000 in accordance with Section 1.3(a)(ii),
will deliver to the Purchaser the documents set forth in Section 5.4(a) hereof.

(ii)                
The Purchaser shall deliver to the Company $1,500,000
in immediately available funds by wire transfer in accordance with the instructions of the Company.

(b)                
First Optional Subsequent Closing. Upon 10 days’ prior written notice from the
Company to the Purchaser, the Company may issue and sell at its option, and the Purchaser agrees to purchase, exactly 15 shares
of the Company’s Series B Preferred Stock and a Warrant to purchase 1,000,000 shares of Common Stock at a subsequent Closing
(the “First Optional Subsequent Closing”) which Closing may only occur during the period commencing on December
1, 2011 to and including April 30, 2012. At the First Optional Subsequent Closing, if any, subject to the terms and conditions
hereof, the following actions shall be taken:

(i)                  
the Company, against delivery of payment of the $1,500,000 in accordance with Section 1.3(b)(ii),
will deliver to the Purchaser the documents set forth in Section 5.4(b) hereof; and

(ii)                
the Purchaser shall deliver to the Company $1,500,000 in immediately available funds by wire
transfer in accordance with the instructions of the Company.

Notwithstanding
anything to the contrary contained herein, the Purchaser shall have no obligation to purchase any securities from the Company under
this Section 1.3(b) prior to December 1, 2011 or after April 30, 2012.

(c)                
Second Optional Subsequent Closing. Upon 10 days’ prior written notice from the
Company to the Purchaser, the Company may issue and sell at its option, and the Purchaser agrees to purchase, exactly 20 shares
of the Company’s Series B Preferred Stock and a Warrant to purchase 1,333,334 shares of Common Stock at a subsequent Closing
(the “Second Optional Subsequent Closing”) which Closing may only occur during the period commencing on May
1, 2012 to and including August 31, 2012. At the Second Optional Subsequent Closing, if any, subject to the terms and conditions
hereof, the following actions shall be taken:

(i)                  
the Company, against delivery of payment of the $2,000,000 in accordance with Section 1.3(c)(ii),
will deliver to the Purchaser the documents set forth in Section 5.4(c) hereof; and

(ii)                
the Purchaser shall deliver to the Company $2,000,000 in immediately available funds by wire
transfer in accordance with the instructions of the Company.

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Notwithstanding
anything to the contrary contained herein, the Purchaser shall have no obligation to purchase any securities from the Company under
this Section 1.3(c) prior to May 1, 2012 or after August 31, 2012.

1.4               
Most Favored Nations Exchange.  If the Company completes a private
equity or equity-linked financing at any time while any share of Series B Preferred Stock is outstanding, the Purchaser will have
the right to exchange all or any such shares at their stated value, plus all accrued but unpaid dividends thereon, for securities
in such financing. 

1.5               
Subsequent Financings. 

(a)                
Other than in connection with a Permitted Issuance (defined below), for the
two-year period following the Closing Date, the Purchaser shall have the right to participate up to 100% of each such subsequent
financing that involves the sale of securities of the Company (each such financing, a “Subsequent Financing”). 
At least 15 days prior to the making or accepting of an offer for a Subsequent Financing, the Company shall deliver to the Purchaser
a written notice of its intention to effect a Subsequent Financing and the details of such Subsequent Financing (a “Subsequent
Financing Notice”). The Subsequent Financing Notice shall describe in reasonable detail the proposed terms of such
Subsequent Financing, the amount of proceeds intended to be raised thereunder and the Person (as defined in Section 2.13) with
whom such Subsequent Financing is proposed to be effected, and shall include, as an attachment thereto, a term sheet or similar
document relating thereto, if any exists.   If the Purchaser elects to participate in the Subsequent Financing,
the closing of such Subsequent Financing shall be as mutually agreed between the parties participating in such Subsequent Financing.
If by 6:30 p.m. (Eastern Time) on the fifteenth day after the Purchaser has received the Subsequent Financing Notice, the Purchaser
fails to notify the Company of its election to participate or elects to participate in an amount that is less than the total amount
of the Subsequent Financing, then the Company may effect the remaining portion of such Subsequent Financing on the terms and with
the Persons set forth in the Subsequent Financing Notice.  The Company must provide the Purchaser with a second Subsequent
Financing Notice, and the Purchaser will again have the right of participation set forth above in this Section 1.5(a), if the Subsequent
Financing subject to the initial Subsequent Financing Notice is not consummated for any reason on the terms set forth in such Subsequent
Financing Notice within 90 days after the date of the initial Subsequent Financing Notice. 

(b)                
Notwithstanding the foregoing, Section 1.5(a) shall not apply in respect to the issuance of
the following (each, a “Permitted Issuance”): 

(i)                  
shares of Common Stock or Options (defined below) issued or issuable in connection with
any Approved Stock Plan (defined below), provided that the aggregate amount of Common Stock and Options issued and issuable under
all such plans does not exceed ten percent (10%) of the then outstanding shares of Common Stock of the Company;

(ii)                
shares of Common Stock issued upon conversion or exercise of any Options or Convertible Securities
(defined below) that are outstanding on the day immediately preceding the Closing Date, provided that the terms of such Options
or Convertible Securities are not amended, modified or changed on or after the Closing Date to lower the conversion or exercise
price thereof and so long as the number of shares of Common Stock underlying such securities is not otherwise increased; and 

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(iii)               
shares of Common Stock issued in an underwritten public offering in which the gross cash proceeds
to the Company (before underwriting discounts, commissions and fees) are at least $10,000,000.

For purposes of this
Agreement, “Approved Stock Plan” means any employee benefit plan which has been approved by the Board of Directors
of the Company, pursuant to which the Company’s securities may be issued to any employee, consultant, officer or director
for services provided to the Company, “Convertible Securities” means any stock or other securities (other than
Options) directly or indirectly convertible into or exercisable or exchangeable for shares of Common Stock, and “Options”
means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible Securities.

1.6               
No Subsequent Closings under 2010 Purchase Agreement. The Company and the Purchaser
hereby agree and acknowledge that after June 30, 2011, the Purchaser no longer had any obligation to purchase the Company’s
Series B Preferred Stock pursuant to Section 1.3(b) of the Securities Purchase Agreement dated June 4, 2010, by and between the
Company and the Purchaser (the “2010 Purchase Agreement”). The Company and the Purchaser hereby agree that Section
1.3(b) of the 2010 Purchase Agreement is and shall be null and void to the extent it imposes any obligation on the Purchaser to
purchase any of the Company’s Series B Preferred Stock.

ARTICLE
II

COMPANY SECURITY DOCUMENTS

2.1               
Security Agreement. All of the obligations of the Company under the Preferred Shares
shall be secured by a lien on all the personal property and assets of the Company now existing or hereinafter acquired granted
pursuant to a Third Amended and Restated Security Agreement dated of even date herewith between the Company and the Purchaser in
the form attached hereto as Exhibit D (“Security Agreement”). 

2.2               
Guaranty. All of the obligations of the Company under the Preferred Shares shall be
guaranteed pursuant to an Amended and Restated Guaranty Agreement in the form attached hereto as Exhibit E (“Guaranty
Agreement”) by each of the subsidiaries of the Company set forth on Schedule 2.2 hereto.

2.3               
Guarantor Security Documents. All of the obligations of each Subsidiary
under its Guaranty Agreement shall be secured by a lien on all the personal property and assets of such Subsidiary now existing
or hereinafter acquired granted pursuant to a Third Amended and Restated Guarantor Security Agreement dated of even date herewith
between such Subsidiary and the Purchaser in the form attached hereto as Exhibit F (“Guarantor Security Agreement”).

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ARTICLE
III

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

The Company hereby
represents and warrants to the Purchaser as of the date of this Agreement as follows:

3.1               
Organization and Qualification. The Company is a corporation duly organized
and validly existing and in good standing under the laws of the jurisdiction in which it is incorporated, and has all requisite
corporate power and authority to carry on its business as now conducted. The Company is duly qualified as a foreign corporation
to do business and is in good standing in every jurisdiction in which its ownership of property or the nature of the business conducted
by it makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would
not have a Material Adverse Effect. As used in this Agreement, “Material Adverse Effect” means any material
adverse effect on the business, properties, assets, operations, results of operations, or condition (financial or otherwise) of
the Company and its Subsidiaries, taken as a whole, or on the transactions contemplated hereby or by the agreements and instruments
to be entered into in connection herewith, or on the authority or ability of the Company to perform its obligations in all material
respects under the Transaction Documents (as defined in Section 3.6 hereof).

3.2               
Subsidiaries. The Company has no subsidiaries other than those disclosed
on Schedule 2.2 attached hereto (each a “Subsidiary”, and collectively, the “Subsidiaries’).
The Company owns, directly or indirectly, all of the capital stock of each Subsidiary, free and clear of any and all liens, and
all the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable
and free of preemptive and similar rights. Each Subsidiary is a corporation duly organized and validly existing and in good standing
under the laws of the jurisdiction in which it is incorporated, and has all requisite corporate power and authority to carry on
its business as now conducted. Each Subsidiary is duly qualified as a foreign corporation to do business and is in good standing
in every jurisdiction in which its ownership of property or the nature of the business conducted by it makes such qualification
necessary, except to the extent that the failure to be so qualified or be in good standing would not have a Material Adverse Effect.

3.3               
Compliance. 

(a)                
Except as disclosed in Schedule 3.3(a) attached hereto, neither the Company
nor any Subsidiary (i) is in default under or in violation of (and no event has occurred that has not been waived that, with
notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the Company or any
Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit
agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound, except
such that, individually or in the aggregate, such default(s) and violations(s) would not have or reasonably be expect to have a
Material Adverse Effect, (ii) is in violation of any order of any court, arbitrator or governmental body, or (iii) is
in violation of any of the provisions of its certificate or articles of incorporation, bylaws or other organizational or charter
documents.

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(b)                
The business of the Company and each Subsidiary is presently being conducted
in accordance with all applicable foreign, federal, state and local governmental laws, rules, regulations and ordinances (including,
without limitation, rules and regulations of each governmental and regulatory agency, self regulatory organization and Trading
Market applicable to the Company or any Subsidiary), except such that, individually or in the aggregate, the noncompliance therewith
would not have or reasonably be expect to have a Material Adverse Effect. The Company has all franchises, permits, licenses, consents
and other governmental or regulatory authorizations and approvals necessary for the conduct of its business as now being conducted
by it unless the failure to possess such franchises, permits, licenses, consents and other governmental or regulatory authorizations
and approvals, individually or in the aggregate, would not have or reasonably be expect to have a Material Adverse Effect, and
the Company has not received any written notice of proceedings relating to the revocation or modification of any of the foregoing.
For purposes of this Agreement, “Trading Market” means the following markets or exchanges on which the Common
Stock is listed or quoted for trading on the date in question: the NYSE Arca, the American Stock Exchange, the New York Stock Exchange,
the Nasdaq Global Select Market, Nasdaq Global Market, the Nasdaq Capital Market, or any tier of the over-the-counter (“OTC”)
market.

3.4               
Capitalization.

(a)                
The authorized capital stock of the Company, the number of shares of such capital
stock issued and outstanding, and the number of shares of capital stock reserved for issuance upon the exercise or conversion of
all outstanding warrants, stock options, and other securities issued by the Company, as of the date hereof, are set forth on Schedule 3.4(a)
attached hereto. All of such outstanding shares have been, or upon issuance will be, validly issued, are fully paid and nonassessable.

(b)                
Except for the Securities, or as disclosed in Schedule 3.4(b) attached
hereto:

(i)no holder
of shares of the Company’s capital stock has any preemptive rights or any other similar rights or has been granted or holds
any Liens or encumbrances suffered or permitted by the Company;

(ii)there
are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating
to, or securities or rights convertible into, or exercisable or exchangeable for, any shares of capital stock of the Company or
any Subsidiary, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become
bound to issue additional shares of capital stock of the Company or any Subsidiary or options, warrants, scrip, rights to subscribe
to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable
for, any shares of capital stock of the Company or any Subsidiary;

(iii)there
are no outstanding debt securities, notes, credit agreements, credit facilities or other agreements, documents or instruments evidencing
Indebtedness (as defined in Section 3.13 hereof) of the Company or any Subsidiary in excess of $100,000 or by which the Company
or any Subsidiary is or may become bound and involves Indebtedness in excess of $100,000;

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(iv)there
are no financing statements securing obligations in any material amounts, either singly or in the aggregate, filed in connection
with the Company or its Subsidiaries;

(v)there are
no agreements or arrangements under which the Company or any Subsidiary is obligated to register the sale of any of their securities
under the Securities Act of 1933, as amended (the “Securities Act”);

(vi)there
are no outstanding securities or instruments of the Company or any Subsidiary that contain any redemption or similar provisions,
and there are no contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become
bound to redeem a security of the Company or a Subsidiary;

(vii)there
are no securities or instruments containing antidilution or similar provisions that will be triggered by the issuance of the Securities;
and

(viii)the
Company does not have any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement.

3.5               
Issuance of Securities. 

(a)                
The Securities to be issued hereunder are duly authorized and, upon payment
and issuance in accordance with the terms hereof, shall be free from all taxes, Liens and charges with respect to the issuance
thereof. As of the Closing Date, the Company has authorized and has reserved free of preemptive rights and other similar contractual
rights of stockholders, a number of its authorized but unissued shares of Common Stock equal to one hundred percent (100%) of the
aggregate number of shares of Common Stock to effect the conversion of the Preferred Shares (the “Conversion Shares”)
and one hundred percent (100%) of the aggregate number of shares of Common Stock to effect the exercise of the Warrant (the “Warrant
Shares”).

(b)                
The Conversion Shares and Warrant Shares, when issued and paid for upon conversion
of the Preferred Shares and exercise of the Warrant, as the case may be, will be validly issued, fully paid and nonassessable and
free from all taxes, Liens and charges with respect to the issue thereof, with the holders being entitled to all rights accorded
to a holder of the Common Stock. 

(c)                 
Assuming the accuracy of each of the representations and warranties made by
the Purchaser and set forth in Article IV hereof (and assuming no change in applicable law and no unlawful distribution of the
Securities by the Purchaser or other Persons), the issuance by the Company to the Purchaser of the Securities is exempt from registration
under the Securities Act.

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3.6               
Authorization; Enforcement; Validity. The Company has the requisite corporate
power and authority to enter into and perform its obligations under this Agreement, the Second Amended and Restated Registration
Rights Agreement to be entered into between the Company and the Purchaser on even date herewith in the form attached hereto as
Exhibit C (the “Registration Rights Agreement”), the Certificate of Designation for the Series B Preferred
Stock, and the Warrant, and each of the other agreements or instruments entered into by the parties hereto in connection with the
transactions contemplated by this Agreement (collectively, the “Transaction Documents”) and to issue the Securities
(including without limitation, the Conversion Shares and Warrant Shares) in accordance with the terms hereof and thereof. The execution
and delivery of the Transaction Documents by the Company and the consummation by the Company of the transactions contemplated hereby
and thereby, including, without limitation, the issuance of the Preferred Shares and the Warrant, have been duly authorized by
the Board, and no further consent or authorization is required by the Company, the Board or its stockholders. This Agreement and
the other Transaction Documents have been duly executed and delivered by the Company, and constitute the legal, valid and binding
obligations of the Company enforceable against the Company in accordance with their respective terms, except (i) as limited by
general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and other
laws of general application affecting enforcement of creditors’ rights and remedies generally, (ii) as limited by laws relating
to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification
and contribution provisions may be limited by applicable law or by principles of public policy thereunder.

3.7               
Dilutive Effect. The Company understands and acknowledges that its obligation
to issue the Conversion Shares and Warrant Shares upon conversion of the Preferred Shares and exercise of the Warrant, as the case
may be, is absolute and unconditional regardless of the dilutive effect that such issuance may have on the ownership interests
of other stockholders of the Company.

3.8               
No Conflicts. The execution, delivery and performance of the Transaction
Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby (including, without
limitation, the reservation for issuance of the Conversion Shares and Warrant Shares) will not (i) result in a violation of
any articles or certificate of incorporation, any certificate of designation, preferences and rights of any outstanding series
of preferred stock, bylaws or similar charter or organizational document of the Company or any Subsidiary or (ii) conflict
with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to
others any rights of termination, amendment, acceleration or cancellation of, any material agreement, indenture or instrument to
which the Company or any Subsidiary is a party (except where such defaults, conflicts, rights of termination, amendment, acceleration
or cancellation have been waived or postponed until the fulfillment of the Company’s obligations under the Transaction Documents),
or (iii) result in a violation of any federal, state, local or foreign statute, rule, regulation, order, judgment or decree
(including federal and state securities laws and regulations and rules and regulations of any governmental or any regulatory agency,
self-regulatory organization, or Trading Market applicable to the Company) or by which any property or asset of the Company are
bound or affected, except in the case of clauses (ii) and (iii), for such breaches, violations or defaults as would not be reasonably
expected to have a Material Adverse Effect. 

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3.9               
Governmental Consents. Except for (i) the filing of a registration
statement pursuant to the Registration Rights Agreement, (ii) application(s) to each Trading Market for the listing of the
Conversion Shares and Warrant Shares for trading thereon in the time and manner required thereby, and (iii) the filing of
Form D with the Commission and such filings as are required to be made under applicable state securities laws, the Company is not
required to obtain any consent, authorization or order of, or make any filing or registration with, any court, governmental or
any regulatory agency, self-regulatory organization or any other Person in order for it to execute, deliver or perform any of its
obligations under or contemplated by the Transaction Documents, in each case, in accordance with the terms hereof or thereof. The
Company is unaware of any facts or circumstances relating to the Company or its Subsidiaries which might prevent the Company from
obtaining or effecting any of the foregoing.

3.10           
Registration and Approval of Sale of Securities. Based in material part
upon the representations and warranties herein (and in the other Transaction Documents) of the Purchaser, the Company has complied
and will comply with all applicable federal and state securities laws in connection with the offer, issuance and sale of the Securities
hereunder. Assuming the accuracy of the representations and warranties in Article VI hereof (and assuming no change in applicable
law and no unlawful distribution of the Securities by the Purchaser or other Persons), no registration under the Securities Act
is required for the offer and sale of the Securities by the Company to the Purchaser as is contemplated hereby. Neither the Company
nor any Person acting on its behalf, directly or indirectly, has or will sell, offer to sell or solicit offers to buy any of the
Securities or similar securities to, or solicit offers with respect thereto from, or enter into any negotiations relating thereto
with, any Person, or has taken or will take any action so as to either (a) bring the issuance and sale of any of the Securities
under the registration provisions of the Securities Act or applicable state securities laws, or (b) trigger stockholder approval
provisions under the rules or regulations of any Trading Market. Neither the Company nor any of its affiliates that it controls,
nor any Person acting on its or their behalf, has: (x) engaged in any form of general solicitation or general advertising (within
the meaning of Regulation D under the Securities Act) in connection with the offer or sale of any of the Securities; or (y) directly
or indirectly made any offers or sales of any security or solicited any offers to buy any security under circumstances that would
cause the offering of the Securities pursuant to this Agreement to be integrated with prior offerings by the Company for purposes
of the Securities Act in a manner that would prevent the Company from selling the Securities pursuant to Regulation D and Rule
506 thereof under the Securities Act, nor will the Company or any of its affiliates that it controls or Persons acting on its or
their behalf engage in any form of general solicitation or take any action or steps that would cause the offering of the Securities
to be integrated with other offerings. 

3.11           
Placement Agent’s Fees. Except as set forth on Schedule 3.11,
no brokerage or finder’s fee or commission are or will be payable to any Person with respect to the transactions contemplated
by this Agreement based upon arrangements made by the Company or any of its affiliates. The Company agrees that it shall be responsible
for the payment of any placement agent’s fees, financial advisory fees, or brokers’ commissions (other than for Persons
engaged by the Purchaser or any of its affiliates) relating to or arising out of the transactions contemplated hereby. The Company
shall pay, and hold the Purchaser harmless against, any liability, loss or expense (including, without limitation, reasonable attorney’s
fees and out-of-pocket expenses) arising in connection with any claim for any such fees or commissions.

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3.12           
Litigation. Except as disclosed in Schedule 3.12 attached hereto,
there is no action, suit, written notice of violation, or written notice of any proceeding pending or, to the knowledge of the
Company, threatened against or affecting the Common Stock or the Company, any Subsidiary or any of their respective executive officers,
directors or properties before or by any court, arbitrator, governmental or administrative agency, regulatory authority (federal,
state, county, local or foreign), self regulatory authority or Trading Market (collectively, an “Action”) which
(i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the Securities
or (ii) would, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect.
To the Company’s knowledge, neither the Company nor any Subsidiary, nor any director or executive officer thereof (in his/her
capacity as such), is or, within the last five years, has been the subject of any Action involving a claim of violation of or liability
under federal or state securities laws or a claim of breach of fiduciary duty. To the knowledge of the Company, there has not been,
and there is not pending or threatened in writing, any investigation by the United States Securities and Exchange Commission (the
“Commission” or “SEC”) involving the Company or any current director or executive officer
of the Company. The Commission has not issued any stop order or other order suspending the effectiveness of any registration statement
filed by the Company under the Securities Act. There is no action, suit, claim, investigation, arbitration, alternate dispute resolution
proceeding or other proceeding pending or, to the knowledge of the Company, threatened in writing against or involving the Company
or any of its properties or assets, which individually or in the aggregate, would reasonably be expected to have a Material Adverse
Effect. There are no outstanding orders, judgments, injunctions, awards or decrees of any court, arbitrator or governmental or
regulatory body against the Company or any executive officers or directors of the Company in their capacities as such, which individually
or in the aggregate, would reasonably be expected to have a Material Adverse Effect.

3.13           
Indebtedness and Other Contracts. Except as disclosed in Schedule
3.13 attached hereto, neither the Company nor any Subsidiary (a) has any outstanding Indebtedness (as defined below in
this Section 3.13), (b) is a party to any contract, agreement or instrument, the violation of which, or default under, by
any other party to such contract, agreement or instrument would result in a Material Adverse Effect, (c) 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 (d) 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 (i) all indebtedness for borrowed money, (ii) all obligations issued, undertaken
or assumed as the deferred purchase price of property or services (other than trade payables entered into in the ordinary course
of business), (iii) all reimbursement or payment obligations with respect to letters of credit, surety bonds and other similar
instruments, (iv) 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, (v) 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), (vi) 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, (vii) all indebtedness referred to in clauses (i) through (vi)
above secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by)
any mortgage, Lien, pledge, change, 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 (viii) all Contingent Obligations in respect of indebtedness or obligations of others
of the kinds referred to in clauses (i) through (vii) 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 and a government or any department
or agency thereof.

    	11

    	 

    

3.14           
Securities Periodic Reporting. Except as set forth in Schedule 3.14
hereto, The Company has filed all reports, schedules, forms, statements and other documents required to be filed by it with
the SEC pursuant to the reporting requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
As of their respective dates, the Company’s reports, schedules, forms, statements and other documents required to be filed
by it with the SEC pursuant to the reporting requirements of the Exchange Act prior to the date hereof (the “SEC Documents”)
complied in all material respects with the requirements of the Exchange Act and the rules and regulations of the SEC promulgated
thereunder applicable to such SEC Documents, and none of such SEC Documents, at the time they were filed with the SEC, contained
any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order
to make the statements therein, in the light of the circumstances under which they were made, not misleading. As of their respective
dates, the financial statements of the Company included in such SEC Documents complied as to form in all material respects with
applicable accounting requirements and the published rules and regulations of the SEC with respect thereto. Such financial statements
have been prepared in accordance with generally accepted accounting principles, consistently applied, during the periods involved
(except (i) as may be otherwise indicated in such financial statements or the notes thereto, or (ii) in the case of unaudited
interim statements, to the extent they may exclude footnotes or may be condensed or summary statements) and fairly present in all
material respects the financial position of the Company as of the dates thereof and the results of its operations and cash flows
for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments). No other information
provided by or on behalf of the Company to the Purchaser that is not included in the SEC Documents contains any untrue statement
of a material fact or omits to state any material fact necessary in order to make the statements therein, in the light of the circumstance
under which they are or were made, not misleading.

3.15           
Absence of Certain Changes or Developments. Except as disclosed in Schedule
3.15 attached hereto or as contemplated herein and in the Transaction Documents, since December 31, 2010:

(a)                
there has been no Material Adverse Effect, and no event or circumstance has
occurred or exists with respect to the Company or its businesses, properties, operations or financial condition, which, under the
Exchange Act, Securities Act, or rules or regulations of any Trading Market, required or requires public disclosure or announcement
by the Company, but which has not been so publicly announced or disclosed; 

(b)                
the Company has not:

(i)                  
issued any stock, bonds or other corporate securities or any right, options
or warrants with respect thereto, except pursuant to the exercise or conversion of securities outstanding as of such date;

(ii)                
borrowed any amount in excess of $250,000 or incurred or become subject to any
other liabilities in excess of $250,000 (absolute or contingent) except current liabilities incurred in the ordinary course of
business which are comparable in nature and amount to the current liabilities incurred in the ordinary course of business during
the comparable portion of its prior fiscal year, as adjusted to reflect the current nature and volume of the business of the Company;

(iii)               
discharged or satisfied any Lien or encumbrance in excess of $250,000 or paid
any obligation or liability (absolute or contingent) in excess of $250,000, other than current liabilities paid in the ordinary
course of business;

(iv)              
declared or made any payment or distribution of cash or other property to stockholders
with respect to its stock, or purchased or redeemed, or made any agreements so to purchase or redeem, any shares of its capital
stock, in each case in excess of $50,000 individually or $100,000 in the aggregate;

(v)                
sold, assigned or transferred any other tangible assets, or canceled any debts
or claims, in each case in excess of $250,000, except in the ordinary course of business;

(vi)              
sold, assigned or transferred any patent rights, trademarks, trade names, copyrights,
trade secrets or other intangible assets or intellectual property rights in excess of $250,000, or disclosed any proprietary confidential
information to any person except to customers in the ordinary course of business;

(vii)             
suffered any material losses or waived any rights of material value, whether
or not in the ordinary course of business, or suffered the loss of any material amount of prospective business;

    	12

    	 

    

(viii)           
made any changes in employee compensation except in the ordinary course of business
and consistent with past practices;

(ix)              
made capital expenditures or commitments therefor that aggregate in excess of
$250,000;

(x)                
entered into any material transaction outside the ordinary course of business;

(xi)              
made charitable contributions or pledges in excess of $10,000;

(xii)             
suffered any material damage, destruction or casualty loss, whether or not covered
by insurance;

(xiii)           
experienced any material problems with labor or management in connection with
the terms and conditions of their employment; 

(xiv)           
altered its method of accounting, except to the extent required by GAAP;

(xv)            
issued any equity securities to any officer, director or affiliate (as such
term is defined in Rule 144 of the Securities Act), except pursuant to existing Company stock, option, equity incentive or similar
incentive plans; or 

(xvi)           
entered into an agreement, written or otherwise, to take any of the foregoing
actions.

3.16           
Solvency. The Company has not taken, nor does it have any intention to
take, any steps to seek protection pursuant to any bankruptcy or similar law. The Company does not have any actual knowledge nor
has it received any written notice that its creditors intend to initiate involuntary bankruptcy proceedings or any actual knowledge
of any fact that, as of the date hereof, would reasonably lead a creditor to do so. After giving effect to the transactions contemplated
hereby to occur at the Closing, the Company will not be Insolvent (as hereinafter defined). For purposes of this Agreement, “Insolvent”
means (i) the present fair saleable value of the Company’s assets is less than the amount required to pay the Company’s
total Indebtedness, contingent or otherwise, (ii) the Company is unable to pay its debts and liabilities, subordinated, contingent
or otherwise, as such debts and liabilities become absolute and matured, (iii) the Company intends to incur or believes that
it will incur debts that would be beyond its ability to pay as such debts mature or (iv) the Company has unreasonably small
capital with which to conduct the business in which it is engaged as such business is now conducted and is proposed to be conducted.

3.17           
Off-Balance Sheet Arrangements. There is no transaction, arrangement,
or other relationship between the Company and an unconsolidated or other off-balance sheet entity that is required to be disclosed
by the Company in its Exchange Act filings and is not so disclosed or that if made or not made would be reasonably likely to have
a Material Adverse Effect.

    	13

    	 

    

3.18           
Foreign Corrupt Practices. None of the Company, any Subsidiary, nor any
of their respective directors, officers, agents, employees or other Persons acting on behalf of such subsidiaries has, in the course
of their respective actions for or on behalf of the Company or any of its subsidiaries (a) used any corporate funds for any unlawful
contribution, gift, entertainment or other unlawful expenses relating to political activity, (b) made any direct or indirect
unlawful payment to any foreign or domestic government official or employee from corporate funds, (c) violated or is in violation
of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended or (d) made any unlawful bribe, rebate, payoff,
influence payment, kickback or other unlawful payment to any foreign or domestic government official or employee.

3.19           
Transactions With Affiliates. Except as disclosed in Schedule 3.19
attached hereto, none of the officers, directors or employees of the Company is presently a party to any transaction with the Company
or any Subsidiary (other than for ordinary course services as employees, officers or directors), including any contract, agreement
or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or
from, or otherwise requiring payments to or from any such officer, director or employee or, to the knowledge of the Company, any
corporation, partnership, trust or other entity in which any such officer, director, or employee has a substantial interest or
is an officer, director, trustee or partner.

3.20           
Insurance. Except as disclosed in Schedule 3.20 attached hereto,
the Company and each Subsidiary are insured by insurers of recognized financial responsibility against such losses and risks and
in such amounts as management of the Company believes to be prudent and customary in the businesses in which the Company and each
Subsidiary are engaged. Neither the Company nor any Subsidiary has been refused any insurance coverage sought or applied for and
neither the Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage
as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business
at a cost that would not have a Material Adverse Effect.

3.21           
Employee Relations. Neither the Company nor any Subsidiary is a party
to any collective bargaining agreement or employs any member of a union. No Executive Officer of the Company (as defined in Rule
501(f) of the Securities Act) has notified the Company that such officer intends to leave the Company or otherwise terminate such
officer’s employment with the Company. No Executive Officer of the Company, to the knowledge of the Company, is, or is now,
in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement,
non-competition agreement, or any other contract or agreement or any restrictive covenant, and, to the actual knowledge of the
Company, the continued employment of each such executive officer does not subject the Company or any Subsidiary to any liability
with respect to any of the foregoing matters. The Company and each Subsidiary are in compliance with all federal, state, local
and foreign laws and regulations respecting employment and employment practices, 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. 

    	14

    	 

    

3.22           
Title. Except as set forth in Schedule 3.22, the Company and each
Subsidiary have good and marketable title to all personal property owned by them which is material to their respective business,
in each case free and clear of all Liens. Any real property and facilities held under lease by the Company or any Subsidiary are
held by them under valid, subsisting and enforceable leases with such exceptions as are not material and do not interfere with
the use made and proposed to be made of such property and buildings by the Company or any Subsidiary.

3.23           
Intellectual Property Rights. The Company and its Subsidiaries own or
possess the rights to use all patents, trademarks, domain names (whether or not registered) and any patentable improvements or
copyrightable derivative works thereof, websites and intellectual property rights relating thereto, service marks, trade names,
copyrights, licenses and authorizations which are necessary for the conduct of its business as now conducted (collectively, the
“Intellectual Property Rights”) without any conflict with the rights of others, except any failures as, individually
or in the aggregate, are not reasonably likely to have a Material Adverse Effect. Neither the Company nor any Subsidiary has received
a written notice that the Intellectual Property Rights used by the Company or any Subsidiary violates or infringes upon the rights
of any Person. To the knowledge of the Company, all such Intellectual Property Rights are enforceable and there is no existing
infringement by another Person of any of the Intellectual Property Rights. The Company and its Subsidiaries have taken reasonable
measures to protect the value of the Intellectual Property Rights. 

3.24           
Environmental Laws. The Company and each of its Subsidiaries (a) are
in compliance with any and all Environmental Laws (as hereinafter defined), (b) have received all permits, licenses or other
approvals required of them under applicable Environmental Laws to conduct their respective businesses and (c) are in compliance
with all terms and conditions of any such permit, license or approval where, in each of the foregoing clauses (a), (b) and (c),
the failure to so comply could be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect. The
term “Environmental Laws” means all federal, state, local or foreign laws relating to pollution or protection
of human health or the environment (including, without limitation, ambient air, surface water, groundwater, land surface or subsurface
strata), including, without limitation, laws relating to emissions, discharges, releases or threatened releases of chemicals, pollutants,
contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”) into the environment,
or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of
Hazardous Materials, as well as all authorizations, codes, decrees, demands or demand letters, injunctions, judgments, licenses,
notices or notice letters, orders, permits, plans or regulations issued, entered, promulgated or approved thereunder.

3.25           
Tax Matters. The Company and each of its Subsidiaries (a) have made
or filed all federal and state income and all other tax returns, reports and declarations required by any jurisdiction to which
it is subject, (b) have 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 (c) have set
aside on its books reasonably adequate provision for the payment of all taxes for periods subsequent to the periods to which such
returns, reports or declarations apply, except where such failure would not have a Material Adverse Effect. There are no unpaid
taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company know
of no basis for any such claim.

    	15

    	 

    

3.26           
Sarbanes-Oxley Act; Internal Accounting and Disclosure Controls.
The Company is in compliance in all material respects with the requirements of the Sarbanes-Oxley Act of 2002 that are effective
as of the date hereof and applicable to it, and any and all rules and regulations promulgated by the SEC thereunder that are effective
and applicable to it as of the date hereof. The Company maintains a system of internal accounting controls sufficient, in the judgment
of the Company’s board of directors, to provide reasonable assurance that (i) transactions are executed in accordance
with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation
of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted
only in accordance with management’s general or specific authorization and (iv) the recorded accountability for assets
is compared with the existing assets at reasonable intervals and appropriate actions are taken with respect to any differences.
The Company has established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the
Company and designed such disclosure controls and procedures to ensure that material information relating to the Company, including
its Subsidiaries, is made known to the certifying officers by others within those entities, particularly during the period in which
the Company’s most recently filed periodic report under the Exchange Act, as the case may be, is being prepared. The Company’s
certifying officers have evaluated the effectiveness of the Company’s controls and procedures as of the date prior to the
filing date of the most recently filed periodic report under the Exchange Act (such date, the “Evaluation Date”).
The Company presented in its most recently filed periodic report under the Exchange Act the conclusions of the certifying officers
about the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since the
Evaluation Date, there have been no significant changes in the Company’s internal controls (as such term is defined in Item
307(c) of Regulation S-K under the Exchange Act) or, to the Company’s knowledge, in other factors that could significantly
affect the Company’s internal controls. The Company maintains and will continue to maintain a standard system of accounting
established and administered in accordance with GAAP and the applicable requirements of the Exchange Act.

3.27           
Investment Company Status. The Company is not, and immediately after
receipt of payment for the Securities will not be, an “investment company,” an “affiliated person” of,
“promoter” for or “principal underwriter” for, or an entity “controlled” by an “investment
company,” within the meaning of the Investment Company Act of 1940, as amended.

3.28           
Material Contracts. Each contract of the Company that involves expenditures
or receipts in excess of $500,000 (each, a “Material Contract”) is in full force and effect and is valid and
enforceable in accordance with its terms. The Company is and has been in material compliance with all applicable terms and requirements
of each Material Contract and no event has occurred or circumstance exists that (with or without notice or lapse of time) may contravene,
conflict with or result in a violation or breach of, or give the Company or any other entity the right to declare a default or
exercise any remedy under, or to accelerate the maturity or performance of, or to cancel, terminate or modify any Material Contract.
The Company has not given or received from any other Person any notice or other communication (whether oral or written) regarding
any actual, alleged, possible or potential violation or breach of, or default under, any Material Contract.

3.29           
[Intentionally Omitted].

    	16

    	 

    

3.30           
No Disagreements with Accountants. There are no disagreements of any
kind presently existing, or reasonably anticipated by the Company to arise, between the Company and the accountants formerly or
presently employed by the Company.

3.31           
Ranking of Series B Preferred Stock. No capital stock or other security
issued by the Company is senior to the Series B Preferred Stock in right of payment, whether with respect of payment of redemptions,
interest, damages or upon liquidation or dissolution or otherwise.

3.32           
Manipulation of Price. The Company has not, and to its knowledge no one
acting on its behalf has, taken, directly or indirectly, any action designed to cause or to result or that could reasonably be
expected to cause or result, in the stabilization or manipulation of the price of any security of the Company to facilitate the
sale or resale of any of the Securities.

3.33           
Listing and Maintenance Requirements.  Except as set forth on
Schedule 3.33, the Company has not, in the 12 months preceding the date hereof, received notice
from any Trading Market on which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance
with the listing or maintenance requirements of such Trading Market. The Company is in compliance with all such maintenance requirements.

3.34           
Application of Takeover Protections. The Company and its Board of Directors
have taken all necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison
pill (including any distribution under a rights agreement) or other similar anti-takeover provision under the Company’s Certificate
of Incorporation (or similar charter documents) or the laws of its state of incorporation that is or could become applicable to
the Purchaser as a result of the Purchaser and the Company fulfilling their obligations or exercising their rights under the Transaction
Documents, including without limitation the Company’s issuance of the Securities and the Purchaser’s ownership of the
Securities.

3.35           
OFAC. Neither the issuance of the Securities to the Purchaser, nor the
use of the respective proceeds thereof by the Company, shall cause the Company to violate the U.S. Bank Secrecy Act, as amended,
and any applicable regulations thereunder or any of the sanctions programs administered by the U.S. Department of the Treasury’s
Office of Foreign Assets Control (“OFAC”) of the United States Department of Treasury, any regulations promulgated
thereunder by OFAC or under any affiliated or successor governmental or quasi-governmental office, bureau or agency and any enabling
legislation or executive order relating thereto. Without limiting the foregoing, the Lender (i) is not a person whose property
or interests in property are blocked or subject to blocking pursuant to Section 1 of Executive Order 13224 of September 23,
200l Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed.
Reg. 49079 (2001)), (ii) does not engage in any dealings or transactions prohibited by Section 2 of such executive order,
or is otherwise associated with any such person in any manner violative of Section 2, or (iii) is not a person on the list
of Specially Designated Nationals and Blocked Persons or subject to the limitations or prohibitions under any other OFAC regulation
or executive order.

3.36           
Disclosure. All disclosure provided to the Purchaser regarding the Company,
its business and the transactions contemplated hereby, including the Schedules to this Agreement, furnished by or on behalf of
the Company are true and correct and do not contain any untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading;
provided however, the Company makes no representation as to studies and reports prepared by third parties not engaged by the Company
and included in the materials delivered to Purchaser.

    	17

    	 

    

ARTICLE
IV

REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

The Purchaser hereby
represents and warrants to the Company as of the date of this Agreement as follows:

4.1               
Organization; Authority. The Purchaser is an entity duly organized, validly
existing and in good standing under the laws of the jurisdiction of its organization with full right, corporate or partnership
power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents and otherwise to
carry out its obligations thereunder. The execution, delivery and performance by the Purchaser of the transactions contemplated
by this Agreement have been duly authorized by all necessary corporate or similar action on the part of the Purchaser. Each Transaction
Document to which it is a party has been duly executed by the Purchaser, and when delivered by the Purchaser in accordance with
the terms hereof, will constitute the valid and legally binding obligation of the Purchaser, enforceable against it in accordance
with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium
and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating
to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification
and contribution provisions may be limited by applicable law.

4.2               
Own Account. The Purchaser understands that the Securities are “restricted
securities” and have not been registered under the Securities Act or any applicable state securities law and is acquiring
the Securities as principal for its own account and not with a view to or for distributing or reselling such Securities or any
part thereof except in compliance with the Securities Act, has no present intention of distributing any of such Securities and
has no arrangement or understanding with any other persons regarding the distribution of such Securities (this representation and
warranty not limiting the Purchaser’s right to sell the Securities pursuant to a Registration Statement (defined below) or
otherwise in compliance with applicable federal and state securities laws), except in compliance with the Securities Act. The Purchaser
is acquiring the Securities hereunder in the ordinary course of its business. The Purchaser does not have any agreement or understanding,
directly or indirectly, with any Person to distribute any of the Securities.

4.3               
Purchaser Status. At the time the Purchaser was offered the Securities,
it was, and at the date hereof it is, either: (i) an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3),
(a)(7) or (a)(8) under the Securities Act or (ii) a “qualified institutional buyer” as defined in Rule 144A(a) under
the Securities Act.

    	18

    	 

    
 

4.4               
Experience of Such Purchaser. The Purchaser, 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 prospective investment in the Securities, and has so evaluated the merits and risks of
such investment. The Purchaser 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.

4.5               
General Solicitation. The Purchaser is not purchasing the Securities
as a result of any advertisement, article, notice or other communication regarding the Securities published in any newspaper, magazine
or similar media or broadcast over television or radio or presented at any seminar or any other general solicitation or general
advertisement.

ARTICLE
V

CONDITIONS TO CLOSING OF THE PURCHASER

The obligation of
the Purchaser to purchase the Securities at each Closing is subject to the fulfillment to the Purchaser’s satisfaction on
or prior to such Closing Date of each of the following conditions, any of which may be waived by such Purchaser:

5.1               
Representations and Warranties Correct. The representations and warranties
in Article III hereof shall be true and correct when made, and shall be true and correct on such Closing Date with the same force
and effect as if they had been made on and as of such Closing Date.

5.2               
Performance. All covenants, agreements and conditions contained in this
Agreement to be performed or complied with by the Company on or prior to such Closing Date shall have been performed or complied
with by the Company in all material respects.

5.3               
No Impediments. Neither the Company nor the Purchaser shall be subject
to any order, decree or injunction of a court or administrative agency of competent jurisdiction that prohibits the transactions
contemplated hereby or would impose any material limitation on the ability of such Purchaser to exercise full rights of ownership
of the Securities. At the time of the Closing, the purchase of the Securities to be purchased by the Purchaser hereunder shall
be legally permitted by all laws and regulations to which the Purchaser and the Company are subject.

5.4               
Other Agreements and Documents. 

(a)                
With respect to the Initial Closing, the Company shall have delivered the following agreements
and documents:

(i)                  
Certificates, registered in the name of the Purchaser, representing 15 Preferred Shares;

(ii)                
A Series B Warrant to purchase an aggregate of 1,000,000 shares
of Common Stock of the Company initially at an exercise price of $3.00 in the form of Exhibit B attached hereto;

    	19

    	 

    

(iii)               
The Registration Rights Agreement in the form of Exhibit C hereto, executed by the
Company;

(iv)              
The Security Agreement in the form of Exhibit D hereto, executed by the Company;

(v)                
The Guaranty Agreement in the form of Exhibit E attached hereto executed by each Subsidiary;

(vi)              
The Guarantor Security Agreement in the form of Exhibit F attached hereto, executed
by each Subsidiary;

(vii)             
An opinion of counsel to the Company, dated the date of the Closing, substantially in the
form of Exhibit G hereto, with such exceptions and limitations as shall be reasonably acceptable to counsel to the Purchaser;

(viii)           
A Certificate of Good Standing from the state of incorporation of the Company and each Subsidiary;

(ix)              
A certificate of an officer of the Company, dated such Closing Date, certifying (i) the
fulfillment of the conditions specified in Sections 5.1 and 5.2 of this Agreement, (ii) the Board resolutions approving this
Agreement and the transactions contemplated hereby, (iii) the articles of incorporation and bylaws of the Company, each as amended
as of such Closing Date; (iv) the names of each officer and director of the Company as of such Closing Date; and (v) such
other matters as the Purchaser shall reasonably request; and

(x)                
The Termination Agreement in the form of Exhibit H attached hereto.

(b)                
With respect to the First Subsequent Optional Closing, if any, the Company shall have delivered
the following agreements and documents:

(i)                  
Certificates, registered in the name of the Purchaser, representing 15 Preferred Shares;

(ii)                
A Series B Warrant to purchase an aggregate of 1,000,000 shares
of Common Stock of the Company initially at an exercise price of $3.00 in the form of Exhibit B attached hereto;

(iii)               
An opinion of counsel to the Company, dated the date of the Closing, substantially in the
form of Exhibit G hereto, with such exceptions and limitations as shall be reasonably acceptable to counsel to the Purchaser;

(iv)              
A Certificate of Good Standing from the state of incorporation of the Company and each Subsidiary;
and

(v)                
A certificate of an officer of the Company, dated such Closing Date, certifying (i) the
fulfillment of the conditions specified in Sections 5.1 and 5.2 of this Agreement, (ii) the Board resolutions approving this
Agreement and the transactions contemplated hereby, (iii) the articles of incorporation and bylaws of the Company, each as amended
as of such Closing Date; (iv) the names of each officer and director of the Company as of such Closing Date; and (v) such
other matters as the Purchaser shall reasonably request.

    	20

    	 

    

(c)                
With respect to the Second Subsequent Optional Closing, if any, the Company shall have delivered
the following agreements and documents:

(i)                  
Certificates, registered in the name of the Purchaser, representing 20 Preferred Shares;

(ii)                
A Series B Warrant to purchase an aggregate of 1,333,334 shares
of Common Stock of the Company initially at an exercise price of $3.00 in the form of Exhibit B attached hereto;

(iii)               
An opinion of counsel to the Company, dated the date of the Closing, substantially in the
form of Exhibit G hereto, with such exceptions and limitations as shall be reasonably acceptable to counsel to the Purchaser;

(iv)              
A Certificate of Good Standing from the state of incorporation of the Company and each Subsidiary;
and

(v)                
A certificate of an officer of the Company, dated such Closing Date, certifying (i) the
fulfillment of the conditions specified in Sections 5.1 and 5.2 of this Agreement, (ii) the Board resolutions approving this
Agreement and the transactions contemplated hereby, (iii) the articles of incorporation and bylaws of the Company, each as amended
as of such Closing Date; (iv) the names of each officer and director of the Company as of such Closing Date; and (v) such
other matters as the Purchaser shall reasonably request.

5.5               
Certificate of Designation. The Company shall have filed the Amendment
to Certificate of Designation for the Series B Preferred Stock in the form attached hereto as Exhibit A with the Nevada
Secretary of State.

5.6               
[Intentionally Omitted]. 

5.7               
Intellectual Property Assignment. The Company shall have delivered evidence
reasonably satisfactory to the Purchaser that Mr. David Harrell has transferred certain patent applications and rights identified
by the Purchaser to the Company.

5.8               
Due Diligence Investigation. No fact shall have been discovered, whether
or not reflected in the Schedules hereto, which in the Purchaser’s determination would make the consummation of the transactions
contemplated by this Agreement not in the Purchaser’s best interests.

    	21

    	 

    

ARTICLE
VI

CONDITIONS TO CLOSING OF THE COMPANY

The Company’s
obligation to sell the Securities at each Closing is subject to the fulfillment to its satisfaction on or prior to such Closing
Date of each of the following conditions:

6.1               
Representations. The representations made by the Purchaser pursuant to
Article VI hereof shall be true and correct when made and shall be true and correct on such Closing Date.

6.2               
No Impediments. Neither the Company nor the Purchaser shall be subject
to any order, decree or injunction of a court or administrative agency of competent jurisdiction that prohibits the transactions
contemplated hereby or would impose any material limitation on the ability of the Purchaser to exercise full rights of ownership
of the Securities. At the time of such Closing, the purchase of the Securities to be purchased by the Purchaser hereunder shall
be legally permitted by all laws and regulations to which the Purchaser and the Company are subject.

ARTICLE
VII

AFFIRMATIVE COVENANTS

The Company hereby
covenants and agrees, so long as any Preferred Share remains outstanding, as follows:

7.1               
Maintenance of Corporate Existence. The Company shall and shall cause
its subsidiaries to, maintain in full force and effect its corporate existence, rights and franchises and all material terms of
licenses and other rights to use licenses, trademarks, trade names, service marks, copyrights, patents or processes owned or possessed
by it and necessary to the conduct of its business, except where the failure to maintain such corporate existence, rights, franchises,
licenses and rights to use licenses, trademarks, trade names, service marks, copyrights, patents or processes would not (a) result
in a Material Adverse Effect or (b) materially adversely affect the rights of Purchaser under any Transaction Document.

7.2               
Maintenance of Properties. The Company shall and shall cause its subsidiaries
to, keep each of its properties necessary to the conduct of its business in good repair, working order and condition, reasonable
wear and tear excepted, and from time to time make all needful and proper repairs, renewals, replacements, additions and improvements
thereto; and the Company shall and shall cause its subsidiaries to at all times comply with each material provision of all material
leases to which it is a party or under which it occupies property.

7.3               
Payment of Taxes. The Company shall and shall cause its subsidiaries
to, promptly pay and discharge, or cause to be paid and discharged when due and payable, all lawful taxes, assessments and governmental
charges or levies imposed upon the income, profits, assets, property or business of the Company and its subsidiaries; provided,
however, that any such tax, assessment, charge or levy need not be paid if the validity thereof shall be contested timely and in
good faith by appropriate proceedings, if the Company or its subsidiaries shall have set aside on its books adequate reserves with
respect thereto, and the failure to pay shall not be prejudicial in any material respect to the holders of the Securities, and
provided, further, that the Company or its subsidiaries will pay or cause to be paid any such tax, assessment, charge or levy forthwith
upon the commencement of proceedings to foreclose any Lien which may have attached as security therefor. 

    	22

    	 

    

7.4               
Payment of Indebtedness. The Company shall, and shall cause its subsidiaries
to, pay or cause to be paid when due all Indebtedness incident to the operations of the Company or its subsidiaries (including,
without limitation, claims or demands of workmen, materialmen, vendors, suppliers, mechanics, carriers, warehousemen and landlords)
which, if unpaid might become a Lien (except for Permitted Liens) upon the assets or property of the Company or its subsidiaries,
except where the Company (or its subsidiary, as the case may be) disputes the payment of such Indebtedness in good faith by appropriate
proceedings.

7.5               
Reservation of Common Stock. The Company shall continue to reserve, free
of preemptive rights and other similar contractual rights of stockholders, a number of its authorized but unissued shares of Common
Stock not less than one hundred percent (100%) of the aggregate number of shares of Common Stock to effect the conversion of the
Preferred Shares and one hundred percent (100%) of the aggregate number of shares of Common Stock to effect the exercise of the
Warrant.

7.6               
Maintenance of Insurance. The Company shall and shall cause its subsidiaries
to, keep its assets which are of an insurable character insured by financially sound and reputable insurers against loss or damage
by theft, fire, explosion and other risks customarily insured against by companies in the line of business of the Company or its
subsidiaries, in amounts sufficient to prevent the Company and its subsidiaries from becoming a co-insurer of the property insured;
and the Company shall and shall cause its subsidiaries to maintain, with financially sound and reputable insurers, insurance against
other hazards and risks and liability to persons and property to the extent and in the manner customary for companies in similar
businesses similarly situated or as may be required by law, including, without limitation, general liability, fire and business
interruption insurance, and product liability insurance as may be required pursuant to any license agreement to which the Company
or its subsidiaries is a party or by which it is bound.

7.7               
Notice of Adverse Change. The Company shall promptly give notice to all
holders of any Securities (but in any event within seven (7) days) after becoming aware of the existence of any condition or event
which constitutes, or the occurrence of, any of the following:

(a)                
any event of noncompliance by the Company or its subsidiaries under this Agreement
in any material respect;

(b)                
the institution of an action, suit or proceeding against the Company or any
subsidiary before any court, administrative agency or arbitrator, including, without limitation, any action of a foreign government
or instrumentality, which, if adversely decided, would result in a Material Adverse Effect whether or not arising in the ordinary
course of business; or

    	23

    	 

    

(c)                 
any information relating to the Company or any subsidiary which would reasonably
be expected to result in a material adverse effect on its inability to perform its obligations of under any Transaction Document.

Any notice given under
this Section 7.7 shall specify the nature and period of existence of the condition, event, information, development or circumstance,
the anticipated effect thereof and what actions the Company has taken and/or proposes to take with respect thereto.

7.8               
Compliance With Agreements. The Company shall and shall cause its subsidiaries
to comply in all material respects, with the terms and conditions of all material agreements, commitments or instruments to which
the Company or any of its subsidiaries is a party or by which it or they may be bound. 

7.9               
Other Agreements. The Company shall not enter into any agreement in which
the terms of such agreement would restrict or impair the right or ability to perform of the Company under any Transaction Document.

7.10           
Compliance With Laws. The Company shall and shall cause each of its subsidiaries
to duly comply in all material respects with any material laws, ordinances, rules and regulations of any foreign, federal, state
or local government or any agency thereof, or any writ, order or decree, and conform to all valid requirements of governmental
authorities relating to the conduct of their respective businesses, properties or assets.

7.11           
Protection of Licenses, etc. The Company shall and shall cause its subsidiaries
to, maintain, defend and protect to the best of their ability licenses and sublicenses (and to the extent the Company or a subsidiary
is a licensee or sublicensee under any license or sublicense, as permitted by the license or sublicense agreement), trademarks,
trade names, service marks, patents and applications therefor and other proprietary information owned or used by it or them, (except
where the failure to defend and protect such licenses and sublicenses would not (a) result in a Material Adverse Effect or (b)
materially adversely affect the rights of Purchaser under any Transaction Document) and shall keep duplicate copies of any licenses,
trademarks, service marks or patents owned or used by it, if any, at a secure place selected by the Company.

7.12           
Accounts and Records; Inspections.

(a)                
The Company shall keep true records and books of account in which full, true
and correct entries will be made of all dealings or transactions in relation to the business and affairs of the Company and its
subsidiaries in accordance with GAAP applied on a consistent basis.

(b)                
The Company shall permit each holder of any Securities or any of such holder’s
officers, employees or representatives during regular business hours of the Company, upon reasonable notice and as often as such
holder may reasonably request, to visit and inspect the offices and properties of the Company and its subsidiaries and to make
extracts or copies of the books, accounts and records of the Company or its subsidiaries at such holder’s expense.

    	24

    	 

    

(c)                 
Nothing contained in this Section 7.12 shall be construed to limit any rights
which a holder of any Securities may otherwise have with respect to the books and records of the Company and its subsidiaries,
to inspect its properties or to discuss its affairs, finances and accounts.

7.13           
Maintenance of Office. The Company will maintain its principal office
at the address of the Company set forth in Section 12.6 of this Agreement where notices, presentments and demands in respect of
this Agreement and any of the Securities may be made upon the Company, until such time as the Company shall notify the holders
of the Securities in writing, at least thirty (30) days prior thereto, of any change of location of such office.

7.14           
Payment of the Preferred Share Dividends. The Company shall pay the dividends
on, and redeem, the Preferred Shares, in the time, the manner and the form as provided in the Certificate of Designation for the
Series B Preferred Stock.

7.15           
SEC Reporting Requirements. For so long as the Purchaser beneficially
owns any of the Securities, and until such time as all the Conversion Shares and Warrant Shares are saleable by the Purchaser without
restriction as to volume or manner of sale under Rule 144 under the Securities Act, the Company shall, once it has filed a registration
statement pursuant to the Registration Rights Agreement, timely file all reports required to be filed with the Commission pursuant
to the Exchange Act, and the Company shall not terminate its status as an issuer required to file reports under the Exchange Act
even if the Exchange Act or the rules and regulations thereunder would permit such termination. As long as the Purchaser owns Securities,
Conversion Shares or Warrant Shares, the Company will prepare and furnish to the Purchaser and make publicly available in accordance
with Rule 144 or any successor rule such information as is required for the Purchaser to sell the Securities under Rule 144 without
regard to the volume and manner of sale limitations. The Company further covenants that it will take such further action as any
holder of Securities, Conversion Shares or Warrant Shares may reasonably request, all to the extent required from time to time
to enable such Person to sell such Securities, Conversion Shares or Warrant Shares without registration under the Securities Act
within the limitation of the exemptions provided by Rule 144 or any successor rule thereto.

7.16           
Listing Maintenance. The Company hereby agrees to use best efforts to
maintain the listing or trading of the Common Stock on a Trading Market, and once the Conversion Shares or Warrant shares are registered
under an effective registration statement or are saleable under Rule 144, the Company agrees to promptly to take such action as
may be necessary to have such shares approved for trading on the Trading Market by the applicable Trading Market Authority. The
Company further agrees, if the Company applies to have the Common Stock traded on any other Trading Market, it will include in
such application all of the Conversion Shares and Warrant Shares, and will take such other action as is necessary to cause all
of the Conversion Shares and Warrant Shares to be listed on such other Trading Market as promptly as possible. The Company will
take all action reasonably necessary to continue the listing and trading of its Common Stock on, and will comply in all respects
with the Company’s reporting, filing and other obligations under the bylaws or rules of, each such Trading Market on which
the Company’s Common Stock is listed or trades. 

    	25

    	 

    

7.17           
Implementation of Series B Preferred Stockholders’ Rights to Elect
Directors. Promptly after Closing, the Company shall, to the extent it has not already done so, take the following actions:

(a)                
amend its bylaws and take such other action at any such time as necessary to implement the
rights of holders of Series B Preferred Stock to nominate and elect one member of the Board of Directors as set forth in the Certificate
of Designation for the Series B Preferred Stock beginning with the first meeting of the stockholders of the Company following Closing;
and

(b)                
if necessary, expand the current size of the Board by one (1) member and appoint the person
who will be designated by the Purchaser, to the Board of Directors; provided that, the Company shall not be obligated to appoint
any designee if (i) the nomination of such designee would violate rules, regulations or other standards of the Commission
or the Trading Market, or (ii) the designee does not meet the Company’s reasonable written director qualification standards.

7.18           
Use of Proceeds. The Company shall use all the proceeds received from
the sale of the Securities in the Initial Closing pursuant to this Agreement first, to the repayment in full of all amounts owing
to PI and/or PIH pursuant to the Termination Agreement, and thereafter (to the extent any proceeds from such Initial Closing remain)
for working capital purposes and not for the repayment of any debt. The Company shall use all the proceeds received from the sale
of any Securities in any subsequent Closing for working capital purposes and not for the repayment of any debt.

7.19           
Further Assurances. From time to time the Company shall execute and deliver to the
Purchaser and the Purchaser shall execute and deliver to the Company such other instruments, certificates, agreements and documents
and take such other action and do all other things as may be reasonably requested by the other party in order to implement or effectuate
the terms and provisions of this Agreement and any of the Securities.

For purposes of
Articles VII–IX, the term “subsidiary” shall be deemed to include each Subsidiary and any subsidiary of the Company
acquired or formed after the date hereof.

ARTICLE
VIII

NEGATIVE COVENANTS

The Company hereby
covenants and agrees, so long as any Preferred Share remains outstanding, it will not (and not allow any subsidiary to), without
the prior written consent of the holder(s) of more than 50% of the number of shares of Series B Preferred Stock outstanding (the
“Majority Holders”), directly or indirectly:

8.1               
Distributions and Redemptions. (i) Except with respect to the Series
B Preferred Stock, or forward stock splits in the form of a dividend, declare or pay any dividends or make any distributions to
any holder(s) of any shares of capital stock of the Company or (ii) purchase, redeem or otherwise acquire for value, directly
or indirectly, any shares of Common Stock of the Company or warrants or rights to acquire such Common Stock, except as may be required
by the terms of the Series B Preferred Stock; or (iii) purchase, redeem or otherwise acquire for value, directly or indirectly,
any shares of preferred stock of the Company or warrants or rights to acquire such stock, except as may be required by the terms
of such preferred stock.

    	26

    	 

    

8.2               
Reclassification. Effect any reclassification, combination or reverse
stock split of the Common Stock.

8.3               
Liens. Except as otherwise provided in this Agreement, create, incur, assume or permit
to exist any mortgage, lien, pledge, charge, security interest or other encumbrance, or any interest or title of any vendor, lessor,
lender or other secured party to or of the Company or any subsidiary under any conditional sale or other title retention agreement
or any capital lease, upon or with respect to any property or asset of the Company or any subsidiary (each a “Lien”
and collectively, “Liens”), except that the foregoing restrictions shall not apply to:

(a)                
liens for taxes, assessments and other governmental charges, if payment thereof shall not
at the time be required to be made, and provided such reserve as shall be required by generally accepted accounting principles
consistently applied shall have been made therefor;

(b)                
liens of workmen, materialmen, vendors, suppliers, mechanics, carriers, warehouseman and landlords
or other like liens, incurred in the ordinary course of business for sums not then due or being contested in good faith, if an
adverse decision in which contest would not materially affect the business of the Company;

(c)                
liens securing indebtedness of the Company or any subsidiaries which is in an aggregate principal
amount not exceeding $100,000 and which liens are subordinate to liens on the same assets held by the Purchaser;

(d)                
statutory liens of landlords, statutory liens of banks and rights of set-off, and other liens
imposed by law, in each case incurred in the ordinary course of business (i) for amounts not yet overdue or (ii) for
amounts that are overdue and that are being contested in good faith by appropriate proceedings, so long as such reserves or other
appropriate provisions, if any, as shall be required by generally accepted accounting principles shall have been made for any such
contested amounts;

(e)                
liens incurred or deposits made in the ordinary course of business in connection with workers’
compensation, unemployment insurance and other types of social security, or to secure the performance of tenders, statutory obligations,
surety and appeal bonds, bids, leases, government contracts, trade contracts, performance and return-of-money bonds and other similar
obligations (exclusive of obligations for the payment of borrowed money);

(f)                 
any attachment or judgment lien not constituting an Event of Default (as defined below);

(g)                
easements, rights-of-way, restrictions, encroachments, and other minor defects or irregularities
in title, in each case which do not and will not interfere in any material respect with the ordinary conduct of the business of
the Company or any of its subsidiaries;

    	27

    	 

    

(h)                
any (i) interest or title of a lessor or sublessor under any lease, including liens relating
to Indebtedness identified in Section 8.4(f), (ii) restriction or encumbrance that the interest or title of such lessor or
sublessor may be subject to, or (iii) subordination of the interest of the lessee or sublessee under such lease to any restriction
or encumbrance referred to in the preceding clause (ii), so long as the holder of such restriction or encumbrance agrees to recognize
the rights of such lessee or sublessee under such lease;

(i)                  
liens in favor of customs and revenue authorities arising as a matter of law to secure payment
of customs duties in connection with the importation of goods;

(j)                 
any zoning or similar law or right reserved to or vested in any governmental office or agency
to control or regulate the use of any real property;

(k)                
liens securing obligations (other than obligations representing debt for borrowed money) under
operating, reciprocal easement or similar agreements entered into in the ordinary course of business of the Company and its subsidiaries;
and

(l)                  
the replacement, extension or renewal of any lien permitted by this Section upon or in
the same property theretofore subject or the replacement, extension or renewal (without increase in the amount or change in any
direct or contingent obligor) of the indebtedness secured thereby.

All of the Foregoing
Liens described in subsections (a) – (l) above shall be referred to as “Permitted Liens”.

8.4               
Indebtedness. Create, incur, assume, suffer, permit to exist, or guarantee,
directly or indirectly, any Indebtedness, excluding, however, from the operation of this covenant:

(a)                
Indebtedness to the extent existing on the date hereof or any replacement Indebtedness
to existing Indebtedness;

(b)                
Indebtedness which may, from time to time be incurred or guaranteed by the Company
which in the aggregate principal amount does not exceed $500,000;

(c)                 
the endorsement of instruments for the purpose of deposit or collection in the
ordinary course of business;

(d)                
Indebtedness relating to contingent obligations of the Company and its subsidiaries
under guaranties in the ordinary course of business of the obligations of suppliers, customers, and licensees of the Company and
its subsidiaries;

(e)                 
Indebtedness relating to loans from the Company to its subsidiaries;

(f)                 
Indebtedness relating to capital leases in an amount not to exceed $500,000;

(g)                 
accounts or notes payable arising out of the purchase of merchandise, supplies, equipment,
software, computer programs or services in the ordinary course of business; 

    	28

    	 

    

(h)                
Common Stock issued or issuable to financial institutions, or lessors, pursuant
to a commercial credit arrangement, equipment financing transaction, accounts receivable factoring, or a similar transaction.

The foregoing Indebtedness
described in subsections (a) – (h) above shall be referred to as “Permitted Indebtedness”.

8.5               
Capital Stock. Except for issuances to the Purchaser and issuances required
by securities issued and outstanding on the date hereof, issue any security that is senior to or ranks pari passu with the
Series B Preferred Stock, whether with respect to right of payment of redemptions, interest, damages or upon liquidation or dissolution
or otherwise.

8.6               
Liquidation or Sale. Sell, transfer, lease or otherwise dispose of 20%
or more of its consolidated assets (as shown on the most recent financial statements of the Company or the subsidiary, as the case
may be) in any single transaction or series of related transactions (other than the sale of inventory in the ordinary course of
business), or liquidate, dissolve, recapitalize or reorganize in any form of transaction. 

8.7               
Change of Control Transaction. Enter into a Change in Control Transaction.
For purposes of this Agreement, “Change in Control Transaction” means the occurrence of (a) an acquisition
by an individual or legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of
effective control (whether through legal or beneficial ownership of capital stock of the Company, by contract or otherwise) of
in excess of fifty percent (50%) of the voting securities of the Company, (b) a replacement at one time or over time of more
than one-half of the members of the Board of the Company which is not approved by a majority of those individuals who are members
of the Board on the date hereof (or by those individuals who are serving as members of the Board on any date whose nomination to
the Board was approved by a majority of the members of the Board who are members on the date hereof), (c) the merger or consolidation
of the Company or any subsidiary of the Company in one or a series of related transactions with or into another entity (except
in connection with a merger involving the Company solely for the purpose, and with the sole effect, of reorganizing the Company
under the laws of another jurisdiction; provided that the certificate of incorporation and bylaws (or similar charter or organizational
documents) of the surviving entity are substantively identical to those of the Company and do not otherwise adversely impair the
rights of the Purchaser), or (d) the execution by the Company of an agreement to which the Company is a party or by which
it is bound, providing for any of the events set forth above in (a), (b) or (c).

8.8               
Board Changes; Amendment of Charter Documents. 

(a)                
Expand the size of the Board of Directors, except as may be required hereunder; or 

(b)                
Amend or waive any provision of its Articles of Incorporation or Bylaws in any way that materially
adversely affects the rights of the Purchaser without the prior written consent of the Purchaser. 

    	29

    	 

    

8.9               
Transactions with Affiliates.

(a)                
Engage in any transaction with any of the officers, directors, employees or
affiliates of the Company or of its subsidiaries, except on terms no less favorable to the Company or the subsidiary as could be
obtained in an arm’s length transaction.

(b)                
Divert (or permit anyone to divert) any business or opportunity of the Company
or subsidiary to any other corporate or business entity.

8.10           
Registration Statements. File any registration statement with the Commission
until the earlier of: (i) 60 Trading Days following the date that a registration statement or registration statements registering
all the Conversion Shares, Warrant Shares and other Registrable Securities is declared effective by the Commission; and (ii) the
date the Conversion Shares and Warrant Shares are saleable by Purchaser under Rule 144 under the Securities Act without limitation
as to volume or manner of sale; provided that this Section shall not prohibit the Company from filing a registration statement
on Form S-4 or other applicable form for securities to be issued in connection with acquisitions of businesses by the Company or
its subsidiaries, or post effective amendments to registration statements that were declared effective prior to the date hereof
or to a registration statement filed with the Commission on Forms S-4 or S-8. 

ARTICLE
IX

EVENTS OF DEFAULT

9.1               
Events of Default. The occurrence and continuance of any of the following events shall
constitute an event of default under this Agreement (each, an “Event of Default” and, collectively, “Events
of Default”):

(a)                
if the Company shall default in the payment of any dividend on or redemption of any Preferred
Share when the same shall become due and payable; and in each case such default shall have continued without cure for five (5)
Trading Days after written notice (a “Default Notice”) is given to the Company of such default;

(b)                
subject to any grace periods and the ability of the Company to delay the effectiveness of
the Registration Statement pursuant the Registration Rights Agreement, any registration statement (each a “Registration
Statement”) providing for the resale of Conversion Shares and Warrant Shares is not declared effective by the Commission
on or prior to the date which is thirty (30) days after the date required therefor by the Registration Rights Agreement, unless
the failure of such Registration Statement to become effective results from the Commission’s refusal to grant effectiveness
by reason of its application of Rule 415 under the Securities Act;

(c)                
the suspension from listing, without subsequent listing on any one of, or the failure of the
Common Stock to be listed or quoted on at least one of the following: the OTC Bulletin Board or Pink Sheets Market, the American
Stock Exchange, the Nasdaq Global Market, the Nasdaq Capital Market or The New York Stock Exchange, Inc. for a period of ten (10)
consecutive Trading Days and such suspension from listing (or listing on an alternate exchange or quotation system) is not cured
within ten (10) days after the tenth (10th) consecutive day of such suspension from listing;

    	30

    	 

    

(d)                
the Company shall fail to (i) timely deliver the shares of Common Stock upon conversion of
the Preferred Shares or exercise of a Warrant by the tenth (10th) Trading Day after the date of delivery required therefor or otherwise
in accordance with the provisions of the Transaction Documents, (ii) file a Registration Statement in accordance with the terms
of the Registration Rights Agreement, or (iii) make the payment of any fees and/or liquidated damages under this Agreement or any
Transaction Document, which failure in the case of items (i) and (iii) of this Section is not remedied within ten (10) Trading
Days after the incurrence thereof and, solely with respect to item (iii) above, ten (10) Trading Days after the Purchaser delivers
a Default Notice to the Company of the incurrence thereof; 

(e)                
while a Registration Statement is required to be maintained effective pursuant to the terms
of the Registration Rights Agreement, the effectiveness of the Registration Statement lapses for any reason (including, without
limitation, the issuance of a stop order) or is unavailable to the Purchaser for sale of the Registrable Securities (as defined
in the Registration Rights Agreement) in accordance with the terms of the Registration Rights Agreement, and such lapse or unavailability
continues for a period of ten (10) consecutive Trading Days, provided that the Company has not exercised its rights pursuant to
Section 3(n) of the Registration Rights Agreement;

(f)                 
the Company’s notice to the Holder, including by way of public announcement, at any
time, of its inability to comply for any reason or its intention not to comply with proper requests for issuance of, or its failure
to timely deliver, Conversion Shares upon conversion of Preferred Shares or Warrant Shares upon exercise of the Warrant;

(g)                
if the Company or any subsidiary shall default in the performance of any of the covenants
contained this Agreement or the Transaction Documents and (i) such default shall have continued without cure for ten (10) Trading
Days after a Default Notice is given to the Company or (ii) such default shall have materially adversely affected the Purchaser
regardless of any action taken by the Company to cure such default;

(h)                
if any of the Company or its subsidiaries shall default in the observance or performance of
any term or provision of a material agreement to which it is a party or by which it is bound, which default will have or could
reasonably be expected to have a Material Adverse Effect and such default is not waived or cured within the applicable grace period
provided for in such agreement;

(i)                  
if any representation or warranty made in this Agreement, any Transaction Document or in or
any certificate delivered by the Company or its subsidiaries pursuant hereto or thereto shall prove to have been incorrect in any
material respect when made;

(j)                 
the Company shall (i) default in any payment of any amount or amounts of principal of or interest
on any Indebtedness and the aggregate principal amount of which Indebtedness is in excess of $500,000 or (ii) default in
the observance or performance of any other agreement or condition relating to any such Indebtedness or contained in any instrument
or agreement evidencing, securing or relating thereto, or any other event shall occur or condition exist, the effect of which default
or other event or condition is to cause, or to permit the holder or holders or beneficiary or beneficiaries of such Indebtedness
to cause with the giving of notice if required, such Indebtedness to become due prior to its stated maturity;

    	31

    	 

    

(k)                
if a final judgment which, either alone or together with other outstanding final judgments
against the Company and its subsidiaries, exceeds an aggregate of $500,000 shall be rendered against the Company or any subsidiary
and such judgment shall have continued undischarged or unstayed for thirty-five (35) days after entry thereof;

(l)                  
the Company or any of its subsidiaries shall (i) apply for or consent to the appointment of,
or the taking of possession by, a receiver, custodian, trustee or liquidator of itself or of all or a substantial part of its property
or assets, (ii) make a general assignment for the benefit of its creditors, (iii) commence a voluntary case under the United States
Bankruptcy Code (as now or hereafter in effect) or under the comparable laws of any jurisdiction (foreign or domestic), (iv) file
a petition seeking to take advantage of any bankruptcy, insolvency, moratorium, reorganization or other similar law affecting the
enforcement of creditors’ rights generally, (v) acquiesce in writing to any petition filed against it in an involuntary case
under United States Bankruptcy Code (as now or hereafter in effect) or under the comparable laws of any jurisdiction (foreign or
domestic), or admit in writing its inability to pay its debts (vi) issue a notice of bankruptcy or winding down of its operations
or issue a press release regarding same, or (vii) take any action under the laws of any jurisdiction (foreign or domestic) analogous
to any of the foregoing; 

(m)              
a proceeding or case shall be commenced in respect of the Company o r any of its subsidiaries,
without its application or consent, in any court of competent jurisdiction, seeking (i) the liquidation, reorganization, moratorium,
dissolution, winding up, or composition or readjustment of its debts, (ii) the appointment of a trustee, receiver, custodian, liquidator
or the like of it or of all or any substantial part of its assets in connection with the liquidation or dissolution of the Company
or any of its subsidiaries or (iii) similar relief in respect of it under any law providing for the relief of debtors, and such
proceeding or case described in clause (i), (ii) or (iii) shall continue undismissed, or unstayed and in effect, for a period of
sixty (60) days or any order for relief shall be entered in an involuntary case under United States Bankruptcy Code (as now or
hereafter in effect) or under the comparable laws of any jurisdiction (foreign or domestic) against the Company or any of its subsidiaries
or action under the laws of any jurisdiction (foreign or domestic) analogous to any of the foregoing shall be taken with respect
to the Company or any of its subsidiaries and shall continue undismissed, or unstayed and in effect for a period of sixty (60)
days; or

(n)                
the occurrence of any “Event of Default” under the 2010 Purchase Agreement or
the Securities Purchase Agreement dated as of September 8, 2008, by and between the Purchaser and the Company.

9.2               
Remedies. 

(a)                
Upon the occurrence and continuance of an Event of Default, the Purchaser may at any time
(unless all defaults shall theretofore have been remedied) at its option, by written notice or notices to the Company require the
Company to immediately redeem in cash all or a portion of the Preferred Shares held by the Purchaser at a price per share equal
to one hundred twenty-five percent (125%) of the Stated Value of the Series B Preferred Stock plus all accrued and unpaid dividends
thereon at the time of such request. 

    	32

    	 

    

(b)                
The Purchaser, by written notice or notices to the Company, may in its own discretion waive
an Event of Default and its consequences and rescind or annul such declaration; provided that, no such waiver shall extend to or
affect any subsequent Event of Default or impair any right resulting therefrom.

(c)                
In case any one or more Events of Default shall occur and be continuing, the Purchaser may
proceed to protect and enforce its rights by an action at law, suit in equity or other appropriate proceeding, whether for the
specific performance of any agreement contained herein or in any Transaction Document or for an injunction against a violation
of any of the terms hereof or thereof, or in aid of the exercise of any power granted hereby or thereby or by law. In case of a
default in the payment of any dividend on or redemption of any Preferred Share, the Company will pay to the Purchaser such further
amount as shall be sufficient to cover the cost and the expenses of collection, including, without limitation, actual attorney’s
fees, expenses and disbursements. No course of dealing and no delay on the part of a Purchaser in exercising any rights shall operate
as a waiver thereof or otherwise prejudice such Purchaser’s rights. 

(d)                
Any remedy conferred by this Section shall not be exclusive of any other remedy provided by
this Agreement or any other Transaction Document or now or hereafter available at law, in equity, by statute or otherwise.

ARTICLE
X CERTIFICATE LEGENDS

10.1           
Legend. Each certificate representing the Securities shall be stamped
or otherwise imprinted with a legend substantially in the following form (in addition to any legend required by applicable state
securities or “blue sky” laws):

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

    	33

    	 

    

Prior to registration
of the Conversion Shares and the Warrant Shares under the Securities Act, all such certificates shall bear the restrictive legend
specified in this Section 10.1. Certificates evidencing the Conversion Shares and Warrant Shares shall not contain any legend
(including the legend set forth in Section 10.1 hereof), (i) while a registration statement (including the Registration
Statement) covering the resale of such security is effective under the Securities Act, or (ii) following any sale of such
Conversion Shares or Warrant Shares pursuant to Rule 144, or (iii) if such Conversion Shares or Warrant Shares are eligible
for sale under Rule 144 by the Purchaser without limitation as to volume or manner of sale, or (iv) if such legend is not
required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the
Staff of the Commission). The Company shall cause its counsel to issue a legal opinion to the Company’s transfer agent promptly
after the effective date of a registration statement covering such Conversions Shares or Warrant Shares, if required by the Company’s
transfer agent, to effect the removal of the legend hereunder. If all or any portion of the Preferred Shares or a Warrant is exercised
at a time when there is an effective registration statement to cover the resale of the Conversion Shares or the Warrant Shares,
such Conversions Shares and Warrant Shares, as the case may be, shall be issued free of all legends. The Company agrees that following
the effective date of the registration statement covering Conversion Shares or Warrant Shares or at such time as such legend is
no longer required under this Section 10.1, it will, no later than five (5) Trading Days following the delivery by the Purchaser
to the Company or the Company’s transfer agent of a certificate representing Conversion Shares or Warrant Shares, as the
case may be, issued with a restrictive legend (such date, the “Delivery Date”), deliver or cause to be delivered
to the Purchaser a certificate representing such Securities that is free from all restrictive and other legends. The Company may
not make any notation on its records or give instructions to any transfer agent of the Company that enlarge the restrictions on
transfer set forth in this Section. Whenever a certificate representing the Conversion Shares or Warrant Shares is required to
be issued to the Purchaser without a legend, in lieu of delivering physical certificates representing the Conversion Shares or
Warrant Shares, provided the Company’s transfer agent is participating in the Depository Trust Company (“DTC”)
Fast Automated Securities Transfer program, the Company shall use its reasonable best efforts to cause its transfer agent to electronically
transmit the Conversion Shares or Warrant Shares to the Purchaser by crediting the account of such Purchaser’s Prime Broker
with DTC through its Deposit Withdrawal Agent Commission (“DWAC”) system (to the extent not inconsistent with
any provisions of this Agreement).

10.2           
Liquidated Damages. The Company understands that a delay in the delivery
of unlegended certificates for the Conversion Shares or the Warrant Shares as set forth in Section 10.1 hereof beyond the
Delivery Date could result in economic loss to the Purchaser. If the Company fails to deliver to a Purchaser such shares via DWAC
or a certificate or certificates pursuant to this Section hereunder by the Delivery Date, the Company shall pay to the Purchaser,
in cash, as partial liquidated damages and not as a penalty, for each $500 of Conversion Shares or Warrant Shares (based on the
closing price of the Common Stock reported by the principal Trading Market on the date such Securities are submitted to the Company’s
transfer agent) subject to Section 10.1, $10 per Trading Day (increasing to $15 per Trading Day five (5) Trading Days after such
damages have begun to accrue and increasing to $20 per Trading Day ten (10) Trading Days after such damages have begun to accrue)
for each Trading Day after the Legend Removal Date until such certificate is delivered. Nothing herein shall limit the Purchaser’s
right to pursue actual damages for the Company’s failure to deliver certificates representing any Securities as required
by the Transaction Documents, and the Purchaser shall have the right to pursue all remedies available to it at law or in equity
including, without limitation, a decree of specific performance and/or injunctive relief. 

    	34

    	 

    

10.3           
Sales by the Purchaser. The Purchaser agrees that the removal of the
restrictive legend from certificates representing Securities as set forth in Section 10.1 is predicated upon the Company’s
reliance that the Purchaser will sell any Securities pursuant to either the registration requirements of the Securities Act, including
any applicable prospectus delivery requirements, or an exemption therefrom.

ARTICLE
XI

INDEMNIFICATION

11.1           
Indemnification by the Company. The Company agrees to defend, indemnify
and hold harmless the Purchaser and shall reimburse the Purchaser for, from and against each claim, loss, liability, cost and expense
(including without limitation, interest, penalties, costs of preparation and investigation, and the actual fees, disbursements
and expenses of attorneys, accountants and other professional advisors) (collectively, “Losses”) directly or
indirectly relating to, resulting from or arising out of (a) any untrue representation, misrepresentation, breach of warranty or
non-fulfillment of any covenant, agreement or other obligation by or of the Company contained in any Transaction Document or in
any certificate, document, or instrument delivered by the Company to the Purchaser; or (b) any action instituted against the Purchaser
or its affiliates, by any stockholder of the Company who is not an affiliate of the Purchaser, with respect to any of the transactions
contemplated by the Transaction Documents (unless such action is based upon a breach of the Purchaser’s representations,
warranties or covenants under the Transaction Documents or any agreements or understandings the Purchaser may have with any such
stockholder or any violations by the Purchaser of state or federal securities laws or any conduct by the Purchaser which constitutes
fraud, gross negligence, willful misconduct or malfeasance).

11.2           
Procedure. 

(a)                
The indemnified party shall promptly notify the indemnifying party of any claim,
demand, action or proceeding for which indemnification will be sought under this Agreement; provided, that the failure of any party
entitled to indemnification hereunder to give notice as provided herein shall not relieve the indemnifying party of its obligations
under this Article XI except to the extent that the indemnifying party is actually prejudiced by such failure to give notice. 

(b)                
In case any such action, proceeding or claim is brought against an indemnified
party in respect of which indemnification is sought hereunder, the indemnifying party shall be entitled to participate in and,
unless in the reasonable, good-faith judgment of the indemnified party a conflict of interest between it and the indemnifying party
exists with respect to such action, proceeding or claim (in which case the indemnifying party shall be responsible for the reasonable
fees and expenses of one separate counsel for the indemnified party), to assume the defense thereof with counsel reasonably satisfactory
to the indemnified party. If the indemnifying party elects to defend any such action or claim, then the indemnified party shall
be entitled to participate in such defense (but not control) with counsel of its choice at its sole cost and expense (except that
the indemnifying party shall remain responsible for the reasonable fees and expenses of one separate counsel for the indemnified
party in the event in the reasonable, good-faith judgment of the indemnified party a conflict of interest between it and the indemnifying
party exists).

    	35

    	 

    

(c)                 
In the event that the indemnifying party advises an indemnified party that it
will contest such a claim for indemnification hereunder, or fails, within thirty (30) days of receipt of any indemnification notice
to notify, in writing, such person of its election to defend, settle or compromise, at its sole cost and expense, any action, proceeding
or claim (or discontinues its defense at any time after it commences such defense), then the indemnified party may, at its option,
defend, settle or otherwise compromise or pay such action or claim. In any event, unless and until the indemnifying party elects
in writing to assume and does so assume the defense of any such claim, proceeding or action, the indemnified party’s costs
and expenses arising out of the defense, settlement or compromise of any such action, claim or proceeding shall be Losses subject
to indemnification hereunder. 

(d)                
The parties shall cooperate fully with each other in connection with any negotiation
or defense of any such action or claim and shall furnish to the other party all information reasonably available to such party
which relates to such action or claim. Each party shall keep the other party fully apprised at all times as to the status of the
defense or any settlement negotiations with respect thereto. 

(e)                 
Notwithstanding anything in this Article XI to the contrary, the indemnifying
party shall not, without the indemnified party’s prior written consent, settle or compromise any claim or consent to entry
of any judgment in respect thereof which imposes any future obligation on the indemnified party or which does not include, as an
unconditional term thereof, the giving by the claimant or the plaintiff to the indemnified party of a release from all liability
in respect of such claim. The indemnification obligations to defend the indemnified party required by this Article XI shall be
made by periodic payments of the amount thereof during the course of investigation or defense, as and when the Loss is incurred,
so long as the indemnified party shall refund such moneys if it is ultimately determined by a court of competent jurisdiction that
such party was not entitled to indemnification. The indemnity agreements contained herein shall be in addition to (i) any
cause of action or similar rights of the indemnified party against the indemnifying party or others, and (ii) any liabilities
the indemnifying party may be subject to pursuant to the law. 

ARTICLE
XII

MISCELLANEOUS

12.1           
Governing Law. This Agreement and the rights of the parties hereunder
shall be governed in all respects by the laws of the State of Florida wherein the terms of this Agreement were negotiated.

    	36

    	 

    

12.2           
Survival. Except as specifically provided herein, the representations,
warranties, covenants and agreements made herein shall survive the Closing.

12.3           
Amendment. This Agreement may not be amended, discharged or terminated
(or any provision hereof waived) without the written consent of the Company and the Purchaser. 

12.4           
Successors and Assigns. Except as otherwise expressly provided herein,
the provisions hereof shall inure to the benefit of, and be binding upon and enforceable by and against, the successors, assigns,
heirs, executors and administrators of the parties hereto. The Purchaser may assign its rights hereunder, and the Company may not
assign its rights or obligations hereunder without the consent of the Purchaser. 

12.5           
Entire Agreement. This Agreement, the Transaction Documents and the other
documents delivered pursuant hereto and simultaneously herewith constitute the full and entire understanding and agreement between
the parties with regard to the subject matter hereof and thereof.

12.6           
Notices, etc. All notices, demands or other communications given hereunder
shall be in writing and shall be sufficiently given if delivered either personally, by facsimile, or by a nationally recognized
courier service marked for next business day delivery or sent in a sealed envelope by first class mail, postage prepaid and either
registered or certified with return receipt, addressed as follows:

if to the Company:

OptimizeRx Corporation

407 Sixth Street

Rochester, MI 48307

Attention: H. David Lester

Phone: (248) 651-6558

Fax: (248) 651-6748

 

with a copy
to:

Scott Doney, Esq.

Cane Clark, LLP

3273 E. Warm Springs Rd.

Las Vegas, NV 89120

Phone: (702) 312-6255

Fax: (702) 944-7100

Email: sdoney@caneclark.com

    	37

    	 

    

 

if to the Purchaser:

Vicis Capital
Master Fund

445 Park Avenue

Suite 1901

New York, NY 10022

Attn: Shad Stastney

Phone: (212) 909-4600

Fax: (212) 909-4601

 

with a copy
to:

Hoyt R. Stastney,
Esq.

Quarles & Brady
LLP

411 East Wisconsin
Avenue

Milwaukee, WI 53202

Phone: (414) 277-5143

Fax: (414) 978-8968

 

Such communications shall be effective immediately
if delivered in person or by confirmed facsimile, upon the date acknowledged to have been received in return receipt, or upon the
next business day if sent by overnight courier service.

 

12.7           
Delays or Omissions. No delay or omission to exercise any right, power
or remedy accruing to any holder of any Securities upon any breach or default of the Company under this Agreement shall impair
any such right, power or remedy of such holder nor shall it be construed to be a waiver of any such breach or default, or an acquiescence,
therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be
deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of
any kind or character on the part of any holder of any breach or default under this Agreement, or any waiver on the part of any
holder of any provisions or conditions of this Agreement must be, made in writing and shall be effective only to the extent specifically
set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any holder, shall be cumulative
and not alternative.

12.8           
Severability. The invalidity of any provision or portion of a provision
of this Agreement shall not affect the validity of any other provision of this Agreement or the remaining portion of the applicable
provision. It is the desire and intent of the parties hereto that the provisions of this Agreement shall be enforced to the fullest
extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought. Accordingly,
if any particular provision of this Agreement shall be adjudicated to be invalid or unenforceable, such provision shall be deemed
amended to delete therefrom the portion thus adjudicated to be invalid or unenforceable, such deletion to apply only with respect
to the operation of such provision in the particular jurisdiction in which such adjudication is made.

12.9           
Expenses. Each party shall bear its own expenses and legal fees incurred
on its behalf with respect to the negotiation, execution and consummation of the transactions contemplated by this Agreement. The
Company shall pay all documentary stamp or similar taxes imposed by any authority upon the transactions contemplated by this Agreement
or any Transaction Document. The Company shall pay all reasonable, documented third-party fees and expenses incurred by the Purchaser
in connection with the enforcement of this Agreement or any of the other Transaction Documents, including, without limitation,
all actual reasonable attorneys’ fees and expenses.

    	38

    	 

    

12.10        
Consent to Jurisdiction; Waiver of Jury Trial. Each
of the parties to this Agreement hereby irrevocably and unconditionally submits to the exclusive jurisdiction of the state and
federal courts located IN the State of Florida for purposes of all legal proceedings arising out of or relating to this Agreement
and the Transaction Documents. Each of the parties to this Agreement irrevocably waives, to the fullest extent permitted by law,
any objection which such party may now or hereafter have to the laying of the venue of any such proceeding brought in any such
courts and any claim that any such proceeding brought in any such courts has been brought in an inconvenient forum. Each of the
parties hereto irrevocably waives, to the fullest extent permitted by law, any right to trial by jury in any such legal proceeding.
Each of the parties to this Agreement hereby consents to service of process by notice in the manner specified in Section 12.6
and irrevocably waives, to the fullest extent permitted by law, any objection such party may now or hereafter have to service of
process in such manner.

12.11        
Titles and Subtitles. The titles of the articles, sections and subsections
of this Agreement are for convenience of reference only and are not to be considered in construing this Agreement.

12.12        
Execution. This Agreement may be executed in two or more counterparts,
all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have
been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart.
In the event that any signature is delivered by facsimile transmission, such signature shall create a valid and binding obligation
of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile signature
page were an original thereof.

 

(signature page follows)

    	39

    	 

    

IN
WITNESS WHEREOF, the parties hereto have duly executed this Securities Purchase Agreement, as of the day and year first above
written.

 

	COMPANY:
	OPTIMIZERx
    CORPORATION
		
	By:	/s/
    H. David Lester
	Name:	H.
    David Lester
	Title:	Chief
    Executive Officer
		
	PURCHASER:
	VICIS
                                                                      CAPITAL MASTER FUND

        By:
        Vicis Capital, LLC, its investment adviser

		
	By:	/s/ Keith W. Hughes
	Name:	Keith W. Hughes
	Title:	CFO

 

    	40

    	 

    

EXHIBIT A

 

FORM OF AMENDMENT TO CERTIFICATE
OF DESIGNATION OF 

SERIES B CONVERTIBLE PREFERRED
STOCK

 

    	41

    	 

    

EXHIBIT B

 

FORM OF SERIES B WARRANT

 

    	42

    	 

    

EXHIBIT C

 

 

FORM OF REGISTRATION RIGHTS
AGREEMENT

 

    	43

    	 

    

EXHIBIT D

 

FORM OF SECURITY AGREEMENT

 

    	44

    	 

    

EXHIBIT E

 

FORM OF GUARANTY AGREEMENT

 

    	45

    	 

    

EXHIBIT F

 

FORM OF GUARANTOR SECURITY
AGREEMENT

 

 

    	46

    	 

    

EXHIBIT G

 

FORM OF OPINION OF COUNSEL

    	47

    	 

    

EXHIBIT H

 

FORM OF TERMINATION AGREEMENT
AND RELEASE

    	48

    	 

    

 

OptimizeRx Corporation

SchedulesAmended and
Restated GUARANTY AGREEMENT

 

THIS AMENDED AND
RESTATED GUARANTY AGREEMENT (this “Guaranty”) is made as of September 16, 2011 by and between OptimizeRx Corporation,
a Michigan corporation (“Guarantor”), and Vicis Capital Master Fund (“Vicis”), a
sub-trust of Vicis Capital Series Master Trust, a unit trust organized and existing under the laws of the Cayman Islands.

R E C I T A
L S

WHEREAS, Guarantor
is a wholly owned subsidiary of OptimizeRx Corporation, a Nevada corporation (“Issuer”).

WHEREAS,
pursuant to a Securities Purchase Agreement dated June 4, 2010 by and between Issuer and Vicis (as amended or modified from
time to time, the “2010 Purchase Agreement”), Issuer has issued shares of the Issuer’s Series B Convertible
Preferred Stock, par value $.001 per share (the “2010 Preferred Shares”), to Vicis.

WHEREAS, as a condition
precedent to Vicis entering into the 2010 Purchase Agreement and acquiring the 2010 Preferred Shares, Guarantor executed and delivered
to Vicis a Guaranty Agreement dated as of June 4, 2010, by and between Guarantor and Vicis (the “2010 Guaranty”).

WHEREAS,
pursuant to a Securities Purchase Agreement of even date herewith by and between the Issuer and Vicis (as amended or modified
from time to time, the “2011 Purchase Agreement” and together with 2010 Purchase Agreement, the “Purchase
Agreements”), Issuer has issued and may issue additional shares of the Issuer’s Series B Convertible Preferred
Stock, par value $.001 per share (the “2011 Preferred Shares” and together with the 2010 Preferred Shares, the
“Preferred Shares”), to Vicis.

WHEREAS, it is a
condition precedent to Vicis entering into the 2011 Purchase Agreement and acquiring the 2011 Preferred Shares that Guarantor execute
and deliver to Vicis this Guaranty (which Guaranty amends and restates the 2010 Guaranty).

WHEREAS, this Guaranty
is the Guaranty Agreement referred to in the Purchase Agreements.

NOW, THEREFORE,
in consideration of the recitals and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Guarantor hereby agrees with Vicis as follows:

ARTICLE
1

DEFINITIONS

When used in this
Guaranty, capitalized terms shall have the meanings specified in the 2011 Purchase Agreement, the preamble, the recitals and as
follows:

    	 

    	 

    

 

1.1               
Event of Default. “Event of Default” shall have the meaning specified in
the 2011 Purchase Agreement.

1.2               
Guaranty. “Guaranty” shall mean this Guaranty, as the same shall be amended
from time to time in accordance with the terms hereof.

1.3               
Law. “Law” shall mean any federal, state, local or
other law, rule, regulation or governmental requirement of any kind, and the rules, regulations, interpretations and orders promulgated
thereunder.

1.4               
Obligations. “Obligations” shall mean (a) the redemption of, and payment
of dividends on, the Preferred Shares, and any renewal, extension or refinancing thereof; (b) all debts, liabilities, obligations,
covenants and agreements of the Issuer and Guarantor contained in the Transaction Documents; and (c) any and all other debts, liabilities
and obligations of the Guarantor and Issuer to Vicis.

1.5               
Person. “Person” shall mean and include an individual, partnership,
corporation, trust, unincorporated association and any unit, department or agency of government.

1.6               
Transaction Documents. “Transaction Documents” shall mean, as applicable,
(i) the Transaction Documents (as that term is defined in the 2010 Purchase Agreement) and (ii) the Transaction Documents (as that
term is defined in the 2011 Purchase Agreement).

ARTICLE
2

THE GUARANTY

2.1               
The Guaranty. Guarantor, for itself, its successors and assigns, hereby unconditionally
and absolutely guarantees to Vicis the full and complete payment and performance when due (whether at stated maturity, by acceleration
or otherwise) of each of the Obligations. This is a guaranty of payment and performance and not of collection.

2.2               
Waivers and Consents. 

(a)                
Guarantor acknowledges that the obligations undertaken herein involve the guaranty of obligations
of a Person other than Guarantor and, in full recognition of that fact, Guarantor consents and agrees that Vicis may, at any time
and from time to time, without notice or demand, and without affecting the enforceability or continuing effectiveness hereof: (i)
supplement, modify, amend, extend, renew, accelerate or otherwise change the time for payment or the other terms of the Obligations
or any part thereof, including without limitation any increase or decrease of the principal amount thereof or the rate(s) of interest
thereon; (ii) supplement, modify, amend or waive, or enter into or give any agreement, approval or consent with respect to, the
Obligations or any part thereof, or any of the Transaction Documents or any additional security or guaranties, or any condition,
covenant, default, remedy, right, representation or term thereof or thereunder; (iii) accept new or additional instruments, documents
or agreements in exchange for or relative to any of the Transaction Documents or the Obligations or any part thereof; (iv) accept
partial payments on the Obligations; (v) receive and hold additional security or guaranties for the Obligations or any part thereof;
(vi) release, reconvey, terminate, waive, abandon, fail to perfect, subordinate, exchange, substitute, transfer and/or enforce
any security or guaranties, and apply any security and direct the order or manner of sale thereof as Vicis in its sole and absolute
discretion may determine; (vii) release any Person from any personal liability with respect to the Obligations or any part thereof;
(viii) settle, release on terms satisfactory to Vicis or by operation of applicable Law or otherwise, liquidate or enforce any
Obligations and any security or guaranty in any manner, consent to the transfer of any security and bid and purchase at any sale;
and/or (ix) consent to the merger, change or any other restructuring or termination of the corporate existence of Issuer or any
other Person, and correspondingly restructure the Obligations, and any such merger, change, restructuring or termination shall
not affect the liability of Guarantor or the continuing effectiveness hereof, or the enforceability hereof with respect to all
or any part of the Obligations.

    	2

    	 

    

 

(b)                
Upon the occurrence and during the continuance of any Event of Default, Vicis may enforce
this Guaranty independently of any other remedy, guaranty or security Vicis at any time may have or hold in connection with the
Obligations, and it shall not be necessary for Vicis to marshal assets in favor of Issuer, any other guarantor of the Obligations
or any other Person or to proceed upon or against and/or exhaust any security or remedy before proceeding to enforce this Guaranty.
Guarantor expressly waives any right to require Vicis to marshal assets in favor of Issuer or any other Person or to proceed against
Issuer or any other guarantor of the Obligations or any collateral provided by any Person, and agrees that Vicis may proceed against
any obligor and/or the collateral in such order as it shall determine in its sole and absolute discretion. Vicis may file a separate
action or actions against Guarantor, whether action is brought or prosecuted with respect to any security or against any other
Person, or whether any other Person is joined in any such action or actions. Guarantor agrees that Vicis and Issuer may deal with
each other in connection with the Obligations or otherwise, or alter any contracts or agreements now or hereafter existing between
them, in any manner whatsoever, all without in any way altering or affecting the security of this Guaranty.

(c)                
The rights of Vicis hereunder shall be reinstated and revived, and the enforceability of this
Guaranty shall continue, with respect to any amount at any time paid on account of the Obligations which thereafter shall be required
to be restored or returned by Vicis upon the bankruptcy, insolvency or reorganization of any Person, all as though such amount
had not been paid. The rights of Vicis created or granted herein and the enforceability of this Guaranty shall remain effective
at all times to guarantee the full amount of all the Obligations even though the Obligations, including any part thereof or any
other security or guaranty therefor, may be or hereafter may become invalid or otherwise unenforceable as against Issuer or any
other guarantor of the Obligations and whether or not Issuer or any other guarantor of the Obligations shall have any personal
liability with respect thereto.

(d)                
To the extent permitted by applicable law, Guarantor expressly waives any and all defenses
now or hereafter arising or asserted by reason of: (i) any disability or other defense of Issuer or any other guarantor for the
Obligations with respect to the Obligations (other than full payment and performance of all of the Obligations); (ii) the unenforceability
or invalidity of any security for or guaranty of the Obligations or the lack of perfection or continuing perfection or failure
of priority of any security for the Obligations; (iii) the cessation for any cause whatsoever of the liability of Issuer or
any other guarantor of the Obligations (other than by reason of the full payment and performance of all Obligations); (iv) any
failure of Vicis to marshal assets in favor of Issuer or any other Person; (v) any failure of Vicis to give notice of sale or other
disposition of collateral to Issuer or any other Person or any defect in any notice that may be given in connection with any sale
or disposition of collateral; (vi) any failure of Vicis to comply with applicable Laws in connection with the sale or other disposition
of any collateral or other security for any Obligation, including, without limitation, any failure of Vicis to conduct a commercially
reasonable sale or other disposition of any collateral or other security for any Obligation; (vii) any act or omission of Vicis
or others that directly or indirectly results in or aids the discharge or release of Issuer or any other guarantor of the Obligations,
or of any security or guaranty therefor by operation of Law or otherwise; (viii) any Law which provides that the obligation of
a surety or guarantor must neither be larger in amount nor in other respects more burdensome than that of the principal or which
reduces a surety’s or guarantor’s obligation in proportion to the principal obligation; (ix) any failure of Vicis to
file or enforce a claim in any bankruptcy or other proceeding with respect to any Person; (x) the election by Vicis, in any bankruptcy
proceeding of any Person, of the application or non-application of Section 1111(b)(2) of the United States Bankruptcy Code; (xi)
any extension of credit or the grant of any lien under Section 364 of the United States Bankruptcy Code; (xii) any use of collateral
under Section 363 of the United States Bankruptcy Code; (xiii) any agreement or stipulation with respect to the provision of adequate
protection in any bankruptcy proceeding of any Person; (xiv) the avoidance of any lien or security interest in favor of Vicis for
any reason; (xv) any bankruptcy, insolvency, reorganization, arrangement, readjustment of debt, liquidation or dissolution proceeding
commenced by or against any Person, including without limitation any discharge of, or bar or stay against collecting, all or any
of the Obligations (or any interest thereon) in or as a result of any such proceeding; or (xvi) any action taken by Vicis that
is authorized by this Section or any other provision of any Transaction Document. Until all of the Obligations have been paid in
full, Guarantor expressly waives all presentments, demands for payment or performance, notices of nonpayment or nonperformance,
protests, notices of protest, notices of dishonor and all other notices or demands of any kind or nature whatsoever with respect
to the Obligations, and all notices of acceptance of this Guaranty or of the existence, creation or incurrence of new or additional
Obligations.

    	3

    	 

    

 

(e)                
Condition of Issuer. Guarantor represents and warrants to Vicis that it has established
adequate means of obtaining from Issuer, on a continuing basis, financial and other information pertaining to the business, operations
and condition (financial and otherwise) of Issuer and its assets and properties. Guarantor hereby expressly waives and relinquishes
any duty on the part of Vicis (should any such duty exist) to disclose to Guarantor any matter, fact or thing related to the business,
operations or condition (financial or otherwise) of Issuer or its assets or properties, whether now known or hereafter known by
Vicis during the life of this Guaranty. With respect to any of the Obligations, Vicis need not inquire into the powers of Issuer
or agents acting or purporting to act on its behalf, and all Obligations made or created in good faith reliance upon the professed
exercise of such powers shall be guaranteed hereby.

(f)                 
Continuing Guaranty.  This is a continuing guaranty and shall remain in full
force and effect as to all of the Obligations until all amounts owing by Issuer to Vicis on the Obligations shall have been paid
in full.

(g)                
Subrogation; Subordination.  Guarantor expressly waives any claim for reimbursement,
contribution, indemnity or subrogation which Guarantor may have against Issuer as a guarantor of the Obligations and any other
legal or equitable claim against Issuer arising out of the payment of the Obligations by Guarantor or from the proceeds of any
collateral for this Guaranty, until all amounts owing to Vicis under the Obligations shall have been paid in full and all commitments
to lend have been terminated or expired. In furtherance, and not in limitation, of the foregoing waiver, until all amounts owing
to Vicis under the Obligations shall have been paid in full, Guarantor hereby agrees that no payment by Guarantor pursuant to this
Guaranty shall constitute Guarantor a creditor of Issuer. Until all amounts owing to Vicis under the Obligations shall have been
paid in full, Guarantor shall not seek any reimbursement from Issuer in respect of payments made by Guarantor in connection with
this Guaranty, or in respect of amounts realized by Vicis in connection with any collateral for the Obligations, and Guarantor
expressly waives any right to enforce any remedy that Vicis now has or hereafter may have against any other Person and waives the
benefit of, or any right to participate in, any collateral now or hereafter held by Vicis. No claim which any Guarantor may have
against any other guarantor of any of the Obligations or against Issuer, to the extent not waived pursuant to this Section, shall
be enforced nor any payment accepted until the Obligations are paid in full and all such payments are not subject to any right
of recovery.

ARTICLE
3

REPRESENTATIONS AND WARRANTIES OF GUARANTOR

Guarantor hereby
represents and warrants to Vicis as follows:

3.1               
Authorization. Guarantor is a corporation duly and validly organized and existing under
the laws of the State of Michigan, has the corporate power to own its owned assets and properties and to carry on its business,
and is duly licensed or qualified to do business in all jurisdictions in which failure to do so would have a material adverse effect
on its business or financial condition. The making, execution, delivery and performance of this Guaranty, and compliance with its
terms, have been duly authorized by all necessary corporate action of Guarantor.

    	4

    	 

    

3.2               
Enforceability. This Guaranty is the legal, valid and binding obligation of Guarantor,
enforceable against Guarantor in accordance with its terms.

3.3               
Absence of Conflicting Obligations. The making, execution, delivery and performance
of this Guaranty, and compliance with its terms, do not violate any existing provision of Law; the articles of incorporation or
bylaws of Guarantor; or any agreement or instrument to which Guarantor is a party or by which it or any of its assets is bound.

3.4               
Consideration for Guaranty. Guarantor acknowledges and agrees with Vicis that but for
the execution and delivery by Guarantor of the 2010 Guaranty and this Guaranty Vicis would not have acquired the 2010 Preferred
Shares and 2011 Preferred Shares, respectively. Guarantor acknowledges and agrees that the proceeds of the sale of the 2010 Preferred
Shares, has resulted in, and the proceeds of the sale of the 2011 Preferred Shares will result in, significant benefit to Guarantor
who is the wholly-owned subsidiary of Issuer and the intended beneficiary of such proceeds.

    	5

    	 

    

ARTICLE
4

COVENANTS OF THE GUARANTOR

4.1               
Actions by Guarantor. Guarantor shall not take or permit any act, or omit to take any
act, that would: (a) cause Issuer to breach any of the Obligations; (b) impair the ability of Issuer to perform any of the Obligations;
or (c) cause an Event of Default under the 2011 Purchase Agreement.

4.2               
Reporting Requirements. Guarantor shall furnish, or cause to be furnished, to Vicis
such information respecting the business, assets and financial condition of Guarantor as Vicis may reasonably request.

ARTICLE
5

MISCELLANEOUS

5.1               
Expenses and Attorneys’ Fees. Guarantor shall pay all reasonable fees and expenses
incurred by Vicis, including the reasonable fees of counsel, in connection with the protection or enforcement of its rights under
this Guaranty, including without limitation the protection and enforcement of such rights in any bankruptcy, reorganization or
insolvency proceeding involving Issuer or Guarantor, both before and after judgment.

5.2               
Revocation. This is a continuing guaranty and shall remain in full force and effect
until Vicis receives written notice of revocation signed by Guarantor. Upon revocation by written notice, this Guaranty shall continue
in full force and effect as to all Obligations contracted for or incurred before revocation, and as to them Vicis shall have the
rights provided by this Guaranty as if no revocation had occurred. Any renewal, extension, or increase in the interest rate(s)
of any such Obligation, whether made before or after revocation, shall constitute an Obligation contracted for or incurred before
revocation. Obligations contracted for or incurred before revocation shall also include credit extended after revocation pursuant
to commitments made before revocation.

5.3               
Assignability; Successors. Guarantor’s rights and liabilities under this Guaranty
are not assignable or delegable, in whole or in part, without the prior written consent of Vicis. The provisions of this Guaranty
shall be binding upon Guarantor, its successors and permitted assigns and shall inure to the benefit of Vicis, its successors and
assigns.

5.4               
Survival. All agreements, representations and warranties made herein or in any document
delivered pursuant to this Guaranty shall survive the execution and delivery of this Guaranty and the delivery of any such document.

5.5               
Governing Law. This Guaranty and the documents issued pursuant to this Guaranty shall
be governed by, and construed and interpreted in accordance with, the Laws of the State of Florida applicable to contracts made
and wholly performed within such state.

    	6

    	 

    

5.6               
Execution; Headings. This Guaranty may be executed in two or more counterparts, all
of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been
signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart.
In the event that any signature is delivered by facsimile transmission, such signature shall create a valid and binding obligation
of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile signature
page were an original thereof. The article and section headings in this Guaranty are inserted for convenience of reference only
and shall not constitute a part hereof.

5.7               
Notices. All notices, requests and demands to or upon Vicis or Guarantor (to be delivered
care of Issuer) shall be delivered in the manner set forth in Section 12.6 of the 2011 Purchase Agreement.

5.8               
Amendment. No amendment of this Guaranty shall be effective unless in writing and signed
by Guarantor and Vicis.

5.9               
Severability. Any provision of this Guaranty which is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating
the remaining provisions of this Guaranty in such jurisdiction or affecting the validity or enforceability of any provision in
any other jurisdiction.

5.10           
Taxes. If any transfer or documentary taxes, assessments or charges levied by any governmental
authority shall be payable by reason of the execution, delivery or recording of this Guaranty, Guarantor shall pay all such taxes,
assessments and charges, including interest and penalties, and hereby indemnifies Vicis against any liability therefor.

5.11           
WAIVER OF RIGHT TO JURY TRIAL. GUARANTOR ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY
WHICH MAY ARISE UNDER THIS GUARANTY WOULD BE BASED UPON DIFFICULT AND COMPLEX ISSUES AND, THEREFORE, GUARANTOR AGREES THAT ANY
LAWSUIT ARISING OUT OF ANY SUCH CONTROVERSY SHALL BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.

5.12           
SUBMISSION TO JURISDICTION; SERVICE OF PROCESS. AS A MATERIAL INDUCEMENT TO VICIS TO
ENTER INTO THIS TRANSACTION:

(a)                
THE GUARANTOR AGREES THAT ALL ACTIONS OR PROCEEDINGS IN ANY MANNER RELATING TO OR ARISING
OUT OF THIS GUARANTY OR THE OTHER DOCUMENTS EXECUTED IN CONNECTION HEREWITH MAY BE BROUGHT ONLY IN COURTS OF THE STATE OF FLORIDA
OR THE FEDERAL COURTS LOCATED IN THE STATE OF FLORIDA AND THE GUARANTOR CONSENTS TO THE JURISDICTION OF SUCH COURTS. THE GUARANTOR
WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH COURT AND ANY RIGHT IT MAY HAVE NOW OR HEREAFTER HAVE
TO CLAIM THAT ANY SUCH ACTION OR PROCEEDING IS IN AN INCONVENIENT COURT; and

(b)                
the guarantor hereby consents to service of process by notice in
the manner specified in Section 12.6 of the 2011 pURCHASE aGREEMENT and irrevocably waives, to the fullest extent permitted by
law, any objection such party may now or hereafter have to service of process in such manner. THE GUARANTOR AGREES THAT SERVICE
OF PROCESS MAY BE DELIVERED CARE OF ISSUER.

 

[signature page follows]

    	7

    	 

    

IN WITNESS WHEREOF
the undersigned has executed this Amended and Restated Guaranty Agreement as of the day and year first above written.

	OPTIMIZERx CORPORATION
		
	By:	/s/ H. David Lester
	Name:	H. David Lester
	Title:	CEO

 

    	8

    	 

    

ACCEPTANCE BY VICIS

This Amended and Restated Guaranty
Agreement is accepted by Vicis Capital Master Fund.

	
        VICIS CAPITAL MASTER FUND

        By: Vicis Capital LLC

		
	By:	/s/
    Keith W. Hughes
	Name:	Keith
W. Hughes   
	Title:	CFO

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