Document:

SECURITIES PURCHASE AGREEMENT

 

This SECURITIES
PURCHASE AGREEMENT (the “Agreement”), dated as of November 25, 2013, is by and among Recon Technology Ltd.,
a Cayman Islands exempted company (the “Company”), and each of the investors listed on the Schedule of
Buyers attached hereto (individually, a “Buyer” and collectively, the “Buyers”).

 

RECITALS

 

A.           The
Company and each Buyer desire to enter into this transaction to purchase the Common Shares (as defined below) and Warrants (as
defined below) set forth herein pursuant to a currently effective shelf registration statement on Form S-3 (Registration Number
333-190387) (the “Registration Statement”), which Registration Statement has been declared effective in accordance
with the Securities Act of 1933, as amended (the “1933 Act”), by the United States Securities and Exchange Commission
(the “SEC”). “Common Stock” means (i) the Company’s ordinary shares, $0.0185 par
value per share, and (ii) any capital stock into which such ordinary shares shall have been changed or any share capital resulting
from a reclassification of such ordinary shares.

 

B.           Each
Buyer wishes to purchase, and the Company wishes to sell, upon the terms stated in this Agreement, (i) the aggregate number of
shares of Common Stock set forth opposite such Buyer’s name in column (3) on the Schedule of Buyers (which aggregate amount
for all Buyers shall be 546,500 shares of Common Stock and shall collectively be referred to herein as the “Common Shares”)
and (ii) warrants to initially acquire up to the aggregate number of additional shares of Common Stock set forth opposite such
Buyer’s name in column (4) on the Schedule of Buyers, in the form attached hereto as Exhibit A (the “Warrants”)
(as exercised, collectively, the “Warrant Shares”).

 

C.           The
Common Shares, the Warrants and the Warrant Shares are collectively referred to herein as the “Securities.”

 

AGREEMENT

 

NOW, THEREFORE, in
consideration of the premises and the mutual covenants contained herein and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Company and each Buyer hereby agree as follows:

 

1.           PURCHASE
AND SALE OF COMMON SHARES AND WARRANTS.

 

(a)          Common
Shares and Warrants. The Company shall issue and sell to each Buyer, and each Buyer severally, but not jointly, shall purchase
from the Company on the Closing Date (as defined below), the aggregate number of Common Shares, as is set forth opposite such
Buyer’s name in column (3) on the Schedule of Buyers, along with Warrants to initially acquire up to the aggregate
number of Warrant Shares as is set forth opposite such Buyer’s name in column (4) on the Schedule of Buyers.

 

    	 

    	 

    

 

(b)          Closing.
The closing (the “Closing”) of the purchase of the Common Shares and the Warrants by the Buyers shall occur
at the offices of Greenberg Traurig, LLP, 77 W. Wacker Drive, Suite 3100, Chicago, Illinois 60601. The date and time of the Closing
(the “Closing Date”) shall be 9:30 a.m., New York time, on the third (3rd) Trading Day (as defined
in the Warrants) after the date hereof (or such earlier date as is mutually agreed to by the Company and each Buyer). As used
herein “Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks in
New York, New York are authorized or required by law to remain closed.

 

(c)          Purchase
Price. The aggregate purchase price for the Common Shares and the Warrants to be purchased by each Buyer (the “Purchase
Price”) shall be the amount set forth opposite such Buyer’s name in column (5) on the Schedule of Buyers.

 

(d)          Payment
of Purchase Price; Deliveries. On the Closing Date, (i) each Buyer shall pay its respective Purchase Price to the Company
for the Common Shares and the Warrants to be issued and sold to such Buyer at the Closing, by wire transfer of immediately available
funds in accordance with the Company’s written wire instructions (less, in the case of Cranshire (as defined below), the
amounts withheld pursuant to Section 4(g)) and (ii) the Company shall (A) cause ComputerShare Inc. (together with any subsequent
transfer agent, the “Transfer Agent”) through the Depository Trust Company (“DTC”) Fast
Automated Securities Transfer Program, to credit such aggregate number of Common Shares that such Buyer is purchasing as is set
forth opposite such Buyer’s name in column (3) on the Schedule of Buyers to such Buyer’s or its designee’s balance
account with DTC through its Deposit/Withdrawal at Custodian system, (B) deliver to each Buyer Warrants to initially acquire up
to the aggregate number of Warrant Shares as is set forth opposite such Buyer’s name in column (4) on the Schedule of Buyers
duly executed on behalf of the Company and registered in the name of such Buyer or its designee and (C) deliver to such Buyer
the other documents, instruments and certificates set forth in Section 6 duly executed on behalf of the Company.

 

2.           BUYER’S
REPRESENTATIONS AND WARRANTIES.

 

Each Buyer, severally
and not jointly, represents and warrants to the Company with respect to only itself that:

 

(a)          Organization;
Authority. Such Buyer is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction
of its organization with the requisite power and authority to enter into and to consummate the transactions contemplated by the
Transaction Documents (as defined below) to which it is a party and otherwise to carry out its obligations hereunder and thereunder.

 

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

 

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(c)          No
Conflicts. The execution, delivery and performance by such Buyer of this Agreement and the consummation by such Buyer of the
transactions contemplated hereby will not (i) result in a violation of the organizational documents of such Buyer, (ii) conflict
with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to
others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which
such Buyer is a party or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including federal
and state securities laws) applicable to such Buyer, except, in the case of clauses (ii) and (iii) above, for such conflicts,
defaults, rights or violations which would not, individually or in the aggregate, reasonably be expected to have a material adverse
effect on the ability of such Buyer to perform its obligations hereunder.

 

(d)          Certain
Trading Activities. Such Buyer has not directly or indirectly, nor has any Person
acting on behalf of or pursuant to any understanding with such Buyer, engaged in any transactions in the securities of the Company
(including, without limitation, any Short Sales (as defined below) involving the Company’s securities) during the period
commencing as of the time that such Buyer was first contacted by the Placement Agent (as defined below) regarding the specific
investment in the Company contemplated by this Agreement and ending immediately prior to the execution of this Agreement by such
Buyer. “Short Sales” means all “short sales” as defined in Rule 200 promulgated under Regulation
SHO under the Securities Exchange Act of 1934, as amended (the “1934 Act”).

 

3.           REPRESENTATIONS
AND WARRANTIES OF THE COMPANY.

 

The Company represents
and warrants to each of the Buyers that:

 

(a)          Organization
and Qualification. Each of the Company and each of its Subsidiaries are entities duly organized and validly existing and in
good standing under the laws of the jurisdiction in which they are formed, and have the requisite power and authorization to own
their properties and to carry on their business as now being conducted and as presently proposed to be conducted. Each of the
Company and each of its Subsidiaries is duly qualified as a foreign entity 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. “Material
Adverse Effect” means any material adverse effect on (i) the business, properties, assets, liabilities, operations (including
results thereof), condition (financial or otherwise) or prospects of the Company or any Subsidiary, either individually or taken
as a whole, (ii) the transactions contemplated hereby or in any of the other Transaction Documents or (iii) the authority or ability
of the Company to perform any of its obligations under any of the Transaction Documents. Other than the Persons (as defined below)
set forth on Schedule 3(a), the Company has no Subsidiaries. “Subsidiaries” means any Person in which the Company,
directly or indirectly, (I) owns any of the outstanding capital stock or holds any equity or similar interest of such Person or
(II) controls or operates all or any part of the business, operations or administration of such Person, and each of the foregoing,
is individually referred to herein as a “Subsidiary.” Notwithstanding the foregoing, in no event shall Avalon
Oil and Gas, Inc., a Nevada corporation (“Avalon”), be considered a Subsidiary of the Company for purposes
of this Agreement so long as the Company directly or indirectly only owns no greater than 2,800,000 shares of common stock of
Avalon. The Company’s investment in Avalon (1) is not material to or (2) will not materially adversely affect, in either
case of clauses (1) or (2), the Company, any of its Subsidiaries or any of their respective businesses, properties, liabilities,
prospects, operations (including results thereof) or condition (financial or otherwise).

 

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(b)          Authorization;
Enforcement; Validity. The Company has the requisite power and authority to enter into and perform its obligations under this
Agreement and the other Transaction Documents and to issue the Securities in accordance with the terms hereof and thereof. The
execution and delivery of this Agreement and the other 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 Common Shares, the issuance
of the Warrants and the reservation for issuance and issuance of the Warrant Shares issuable upon exercise of the Warrants) have
been duly authorized by the Company’s board of directors and (other than the filing with the SEC of the prospectus supplement
required by the Registration Statement pursuant to Rule 424(b) under the 1933 Act (the “Prospectus Supplement”)
supplementing the base prospectus forming part of the Registration Statement (the “Prospectus”) and any other
filings as may be required by any state securities agencies) no further filing, consent or authorization is required by the Company,
its board of directors or its stockholders or other governing body. This Agreement has been, and the other Transaction Documents
will be prior to the Closing, duly executed and delivered by the Company, and each constitutes the legal, valid and binding obligations
of the Company, enforceable against the Company in accordance with its respective terms, except as such enforceability may be
limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar
laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies and except as rights
to indemnification and to contribution may be limited by federal or state securities law. “Transaction Documents”
means, collectively, this Agreement, the Warrants, the Irrevocable Transfer Agent Instructions (as defined below) and each of
the other agreements and instruments entered into or delivered by any of the parties hereto in connection with the transactions
contemplated hereby and thereby, as may be amended from time to time.

 

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(c)          Issuance
of Securities; Registration Statement. The issuance of the Common Shares and the Warrants are duly authorized and, upon issuance
in accordance with the terms of the Transaction Documents, will be validly issued, fully paid and non-assessable and free from
all preemptive or similar rights, taxes, liens, charges and other encumbrances with respect to the issue thereof, with the holders
thereof being entitled to all rights accorded to a holder of Common Stock. As of the Closing, the Company shall have reserved
from its duly authorized capital stock not less than the maximum number of shares of Common Stock issuable upon exercise of the
Warrants (without taking into account any limitations on the exercise of the Warrants set forth therein). The issuance of the
Warrant Shares is duly authorized, and upon exercise in accordance with the Warrants, the Warrant Shares, when issued, will be
validly issued, fully paid and non-assessable and free from all preemptive or similar rights, taxes, liens, charges and other
encumbrances with respect to the issue thereof, with the holders thereof being entitled to all rights accorded to a holder of
Common Stock. The issuance by the Company of the Securities has been registered under the 1933 Act, the Securities are being issued
pursuant to the Registration Statement and all of the Securities are freely transferable and freely tradable by each of the Buyers
without restriction. The Registration Statement is effective and available for the issuance of the Securities thereunder and the
Company has not received any notice that the SEC has issued or intends to issue a stop-order with respect to the Registration
Statement or that the SEC otherwise has suspended or withdrawn the effectiveness of the Registration Statement, either temporarily
or permanently, or intends or has threatened in writing to do so. The “Plan of Distribution” section under the Registration
Statement permits the issuance and sale of the Securities hereunder and as contemplated by the other Transaction Documents. Upon
receipt of the Securities, each of the Buyers will have good and marketable title to the Securities. The Registration Statement
and any prospectus included therein, including the Prospectus and the Prospectus Supplement, complied in all material respects
with the requirements of the 1933 Act and the 1934 Act and the rules and regulations of the SEC promulgated thereunder and all
other applicable laws and regulations. At the time the Registration Statement and any amendments thereto became effective, at
the date of this Agreement and at each deemed effective date thereof pursuant to Rule 430B(f)(2) of the 1933 Act, the Registration
Statement and any amendments thereto complied and will comply in all material respects with the requirements of the 1933 Act and
did not and will not contain any untrue statement of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein not misleading. The Prospectus and any amendments or supplements thereto (including,
without limitation the Prospectus Supplement), at the time the Prospectus or any amendment or supplement thereto was issued and
at the Closing Date, complied, and will comply, in all material respects with the requirements of the 1933 Act and did not, and
will not, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements
therein, in light of the circumstances under which they were made, not misleading. The Company meets all of the requirements for
the use of Form S-3 under the 1933 Act for the offering and sale of the Securities contemplated by this Agreement and the other
Transaction Documents, and the SEC has not notified the Company of any objection to the use of the form of the Registration Statement
pursuant to Rule 401(g)(1) under the 1933 Act. The Registration Statement meets the requirements set forth in Rule 415(a)(1)(x)
under the 1933 Act. At the earliest time after the filing of the Registration Statement that the Company or another offering participant
made a bona fide offer (within the meaning of Rule 164(h)(2) under the 1933 Act) relating to any of the Securities, the Company
was not and is not an “Ineligible Issuer” (as defined in Rule 405 under the 1933 Act). The Company (i) has not distributed
any offering material in connection with the offer or sale of any of the Securities and (ii) until no Buyer holds any of the Securities,
shall not distribute any offering material in connection with the offer or sale of any of the Securities to, or by, any of the
Buyers (if required), in each case, other than the Registration Statement, the Prospectus or the Prospectus Supplement. In accordance
with Rule 5110(b)(7)(C)(i) of the Financial Industry
Regulatory Authority Manual, the offering of the Securities has been registered with the SEC on Form S-3 under the 1933 Act pursuant
to the standards for Form S-3 in effect prior to October 21, 1992, and the Securities are being offered pursuant to Rule 415 promulgated
under the 1933 Act.

 

(d)          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 issuance of the Common
Shares, the Warrants and Warrant Shares and the reservation for issuance of the Warrant Shares) will not (i) result in a
violation of the Charter (as defined below) (including, without limitation, any certificates of designation contained
therein) or other organizational documents of the Company or any of its Subsidiaries, any capital stock of the Company, or
Bylaws (as defined below), (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or
both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of,
any agreement, indenture or instrument to which the Company or any of its Subsidiaries is a party or (iii) result in a
violation of any law, rule, regulation, order, judgment or decree (including, without limitation, foreign, federal and state
securities laws and regulations and the rules and regulations of the Nasdaq Capital Market (the “Principal
Market”)) applicable to the Company or any of its Subsidiaries or by which any property or asset of the Company or
any of its Subsidiaries is bound or affected, except, in the case of clause (ii) above, such conflicts, defaults or rights
that could not reasonably be expected to have a Material Adverse Effect.

 

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(e)          Consents.
Except for the filing of the Company’s Additional Shares Application with the Principal Market, the Company is not required
to obtain any consent from, authorization or order of, or make any filing or registration with (other than the filing with the
SEC of the Prospectus Supplement and any other filings as may be required by any state securities agencies), any court, governmental
agency or any regulatory or self-regulatory agency 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.
All consents, authorizations, orders, filings and registrations which the Company is required to obtain at or prior to the Closing
have been obtained or effected on or prior to the Closing Date, and neither the Company nor any of its Subsidiaries are aware
of any facts or circumstances which might prevent the Company from obtaining or effecting any of the registration, application
or filings contemplated by the Transaction Documents. The Company is not in violation of the requirements of the Principal Market
and has no knowledge of any facts or circumstances which could reasonably lead to delisting or suspension of the Common Stock
in the foreseeable future.

 

(f)          Acknowledgment
Regarding Buyer’s Purchase of Securities. The Company acknowledges and agrees that each Buyer is acting solely in the
capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated hereby
and thereby and that no Buyer is (i) an officer or director of the Company or any of its Subsidiaries, (ii) an “affiliate”
(as defined in Rule 144 promulgated under the 1933 Act (or a successor rule thereto) (collectively, “Rule 144”))
of the Company or any of its Subsidiaries or (iii) to its knowledge, a “beneficial owner” of more than 10% of the
shares of Common Stock (as defined for purposes of Rule 13d-3 of the 1934 Act). The Company further acknowledges that no Buyer
is acting as a financial advisor or fiduciary of the Company or any of its Subsidiaries (or in any similar capacity) with respect
to the Transaction Documents and the transactions contemplated hereby and thereby, and any advice given by a Buyer or any of its
representatives or agents in connection with the Transaction Documents and the transactions contemplated hereby and thereby is
merely incidental to such Buyer’s purchase of the Securities. The Company further represents to each Buyer that the Company’s
decision to enter into the Transaction Documents has been based solely on the independent evaluation by the Company and its representatives.

 

(g)          Placement
Agent’s Fees. The Company shall be responsible for the payment of any placement agent’s fees, financial advisory
fees, or brokers’ commissions (other than for Persons engaged by any Buyer or its investment advisor) relating to or arising
out of the transactions contemplated hereby. Other than FT Global Capital, Inc. (the “Placement Agent”), neither
the Company nor any of its Subsidiaries has engaged any placement agent or other agent in connection with the offer or sale of
the Securities.

 

(h)          No
Integrated Offering. None of the Company, its Subsidiaries or any of their affiliates, nor any Person acting on their behalf
has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances
that would cause this offering of the Securities to require approval of stockholders of the Company under any applicable stockholder
approval provisions, including, without limitation, under the rules and regulations of any exchange or automated quotation system
on which any of the securities of the Company are listed or designated for quotation. None of the Company, its Subsidiaries, their
affiliates nor any Person acting on their behalf will take any action or steps that would cause the offering of any of the Securities
to be integrated with other offerings of securities of the Company.

 

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(i)          Dilutive
Effect. The Company understands and acknowledges that the number of Warrant Shares will increase in certain circumstances.
The Company further acknowledges that its obligation to issue the Warrant Shares upon exercise of the Warrants in accordance with
this Agreement and the Warrants is absolute and unconditional, regardless of the dilutive effect that such issuance may have on
the ownership interests of other stockholders of the Company.

 

(j)          Application
of Takeover Protections; Rights Agreement. The Company and its board of directors have taken all necessary action, if any,
in order to render inapplicable any control share acquisition, interested stockholder, business combination, poison pill (including,
without limitation, any distribution under a rights agreement), stockholder rights plan or other similar anti-takeover provision
under the Charter, Bylaws or other organizational documents or the laws of the jurisdiction of its incorporation or otherwise
which is or could become applicable to any Buyer as a result of the transactions contemplated by this Agreement, including, without
limitation, the Company’s issuance of the Securities and any Buyer’s ownership of the Securities. The Company and
its board of directors have taken all necessary action, if any, in order to render inapplicable any stockholder rights plan or
similar arrangement relating to accumulations of beneficial ownership of shares of Common Stock or a change in control of the
Company or any of its Subsidiaries.

 

(k)          SEC
Documents; Financial Statements. During the two (2) years prior to the date hereof, the Company has timely filed all
reports, schedules, forms, proxy statements, statements and other documents required to be filed by it with the SEC pursuant
to the reporting requirements of the 1934 Act (all of the foregoing filed prior to the date hereof and all exhibits and
appendices included therein and financial statements, notes and schedules thereto and documents incorporated by reference
therein being hereinafter referred to as the “SEC Documents”), except that the Company would have been required to file a Schedule 13D with respect to the Company’s
investment in Avalon if Avalon’s filings with the SEC indicating that Avalon does not have a Section 12 registered equity
security are incorrect. The Company has delivered to the Buyers or
their respective representatives true, correct and complete copies of each of the SEC Documents not available on the EDGAR
system. As of their respective dates, the SEC Documents complied in all material respects with the requirements of the 1934
Act and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the 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 the SEC Documents complied in all material respects with applicable accounting requirements and the
published rules and regulations of the SEC with respect thereto as in effect as of the time of filing. 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 which will not be material, either individually or in the aggregate). No other information provided by or on
behalf of the Company to any of the Buyers which 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 not misleading, in the
light of the circumstance under which they are or were made.

 

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(l)          Absence
of Certain Changes. Since the date of the Company’s most recent audited financial statements contained in a Form 10-K,
except as disclosed in the SEC Documents filed subsequent to such Form 10-K, there has been no material adverse change and no
material adverse development in the business, assets, liabilities, properties, operations (including results thereof), condition
(financial or otherwise) or prospects of the Company or any of its Subsidiaries. Since the date of the Company’s most recent
audited financial statements contained in a Form 10-K, neither the Company nor any of its Subsidiaries has (i) declared or paid
any dividends, (ii) sold any assets outside of the ordinary course of business or (iii) made any capital expenditures outside
of the ordinary course of business. Neither the Company nor any of its Subsidiaries has taken any steps to seek protection pursuant
to any law or statute relating to bankruptcy, insolvency, reorganization, receivership, liquidation or winding up, nor does the
Company or any Subsidiary have any knowledge or reason to believe that any of their respective creditors intend to initiate involuntary
bankruptcy proceedings or any actual knowledge of any fact which would reasonably lead a creditor to do so. The Company and its
Subsidiaries, individually and on a consolidated basis, are not as of the date hereof, and after giving effect to the transactions
contemplated hereby to occur at the Closing will not be, Insolvent (as defined below). “Insolvent” means, (I)
with respect to the Company and its Subsidiaries, on a consolidated basis, (i) the present fair saleable value of the Company’s
and its Subsidiaries’ assets is less than the amount required to pay the Company’s and its Subsidiaries’ total
Indebtedness (as defined below), (ii) the Company and its Subsidiaries are unable to pay their debts and liabilities, subordinated,
contingent or otherwise, as such debts and liabilities become absolute and matured or (iii) the Company and its Subsidiaries intend
to incur or believe that they will incur debts that would be beyond their ability to pay as such debts mature; and (II) with respect
to the Company and each Subsidiary, individually, (i) the present fair saleable value of the Company’s or such Subsidiary’s
(as the case may be) assets is less than the amount required to pay its respective total Indebtedness, (ii) the Company or such
Subsidiary (as the case may be) is unable to pay its respective debts and liabilities, subordinated, contingent or otherwise,
as such debts and liabilities become absolute and matured or (iii) the Company or such Subsidiary (as the case may be) intends
to incur or believes that it will incur debts that would be beyond its respective ability to pay as such debts mature. Neither
the Company nor any of its Subsidiaries has engaged in any business or in any transaction, and is not about to engage in any business
or in any transaction, for which the Company’s or such Subsidiary’s remaining assets constitute unreasonably small
capital.

 

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

 

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(n)          Conduct
of Business; Regulatory Permits. Neither the Company nor any of its Subsidiaries is in violation of any term of or in default
under its Charter, any certificate of designation, preferences or rights of any other outstanding series of preferred stock of
the Company or any of its Subsidiaries or Bylaws or their organizational charter, certificate of formation or certificate of incorporation
or bylaws, respectively. Neither the Company nor any of its Subsidiaries is in violation of any judgment, decree or order or any
statute, ordinance, rule or regulation applicable to the Company or any of its Subsidiaries, and neither the Company nor any of
its Subsidiaries will conduct its business in violation of any of the foregoing, except in all cases for possible violations which
could not, individually or in the aggregate, have a Material Adverse Effect. Without limiting the generality of the foregoing,
the Company is not in violation of any of the rules, regulations or requirements of the Principal Market and has no knowledge
of any facts or circumstances that could reasonably lead to delisting or suspension of the Common Stock by the Principal Market
in the foreseeable future. Since January 1, 2012, (i) the Common Stock has been listed or designated for quotation on the Principal
Market, (ii) trading in the Common Stock has not been suspended by the SEC or the Principal Market and (iii) the Company has received
no communication, written or oral, from the SEC or the Principal Market regarding the suspension or delisting of the Common Stock
from the Principal Market. The Company and each of its Subsidiaries possess all certificates, authorizations and permits issued
by the appropriate regulatory authorities necessary to conduct their respective businesses, except where the failure to possess
such certificates, authorizations or permits would not have, individually or in the aggregate, a Material Adverse Effect, and
neither the Company nor any such Subsidiary has received any notice of proceedings relating to the revocation or modification
of any such certificate, authorization or permit.

 

(o)          Foreign
Corrupt Practices. Neither the Company nor any of its Subsidiaries nor any director, officer, agent, employee or other Person
acting on behalf of the Company or any of its Subsidiaries has, in the course of its actions for, or on behalf of, the Company
or any of its Subsidiaries (i) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expenses
relating to political activity; (ii) made any direct or indirect unlawful payment to any foreign or domestic government official
or employee from corporate funds; (iii) violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act
of 1977, as amended; or (iv) made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment to
any foreign or domestic government official or employee.

 

(p)          Sarbanes-Oxley
Act. The Company and each Subsidiary is in compliance with all applicable requirements of the Sarbanes-Oxley Act of 2002 that
are effective as of the date hereof and all applicable rules and regulations promulgated by the SEC thereunder that are effective
as of the date hereof.

 

(q)          Transactions
With Affiliates. Except as disclosed in the SEC Documents, none of the officers, directors, employees or affiliates of
the Company or any of its Subsidiaries is presently a party to any transaction with the Company or any of its Subsidiaries
(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, employee or affiliate or, to the knowledge of the
Company or any of its Subsidiaries, any corporation, partnership, trust or other Person in which any such officer, director,
employee or affiliate has a substantial interest or is an employee, officer, director, trustee or partner.

 

    	9

    	 

    

 

(r)          Equity
Capitalization. As of the date hereof, the authorized capital stock of the Company consists of (i) 25,000,000 shares of
Common Stock, of which, 3,951,811 are issued and outstanding and 182,362 shares are reserved for issuance pursuant to
Convertible Securities (as defined below) (other than the Warrants) and (ii) no shares of preferred stock. No shares of
Common Stock are held in treasury. All of such outstanding shares are duly authorized and have been, or upon issuance will
be, validly issued and are fully paid and non-assessable. 2,043,203 shares of the Company’s issued and outstanding
Common Stock on the date hereof are owned by Persons who are “affiliates” (as defined in Rule 405 of the 1933 Act
and calculated based on the assumption that only officers, directors and holders of at least 10% of the Company’s
issued and outstanding Common Stock are “affiliates” without conceding that any such Persons are
“affiliates” for purposes of federal securities laws) of the Company or any of its Subsidiaries. To the
Company’s knowledge, except as disclosed in the SEC Documents, no Person owns 10% or more of the Company’s issued
and outstanding shares of Common Stock (calculated based on the assumption that all Convertible Securities, whether or not
presently exercisable or convertible, have been fully exercised or converted (as the case may be) taking account of
any limitations on exercise or conversion (including “blockers”) contained therein without conceding that such
identified Person is a 10% stockholder for purposes of federal securities laws). (i) None of the Company’s or any
Subsidiary’s capital stock is subject to preemptive rights or any other similar rights or any liens or
encumbrances suffered or permitted by the Company or any Subsidiary; (ii) except pursuant to the Company’s 2009 Stock
Incentive Plan, 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 capital
stock of the Company or any of its Subsidiaries, or contracts, commitments, understandings or arrangements by which the
Company or any of its Subsidiaries is or may become bound to issue additional capital stock of the Company or any of its
Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating
to, or securities or rights convertible into, or exercisable or exchangeable for, any capital stock of the Company or any of
its Subsidiaries; (iii) there are no outstanding debt securities, notes, credit agreements, credit facilities or other
agreements, documents or instruments evidencing Indebtedness of the Company or any of its Subsidiaries or by which the
Company or any of its Subsidiaries is or may become bound; (iv) there are no financing statements securing obligations in any
amounts filed in connection with the Company or any of its Subsidiaries; (v) there are no agreements or arrangements under
which the Company or any of its Subsidiaries is obligated to register the sale of any of their securities under the 1933 Act
(except pursuant to this Agreement); (vi) there are no outstanding securities or instruments of the Company or any of its
Subsidiaries which contain any redemption or similar provisions, and there are no contracts, commitments, understandings or
arrangements by which the Company or any of its Subsidiaries is or may become bound to redeem a security of the Company or
any of its Subsidiaries; (vii) there are no securities or instruments containing anti-dilution or similar provisions that
will be triggered by the issuance of the Securities; (viii) neither the Company nor any Subsidiary has any stock
appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement; and (ix) neither the
Company nor any of its Subsidiaries have any liabilities or obligations required to be disclosed in the SEC Documents which
are not so disclosed in the SEC Documents, other than those incurred in the ordinary course of the Company’s or its
Subsidiaries’ respective businesses and which, individually or in the aggregate, do not or could not have a Material
Adverse Effect. The SEC Documents contain true, correct and complete copies of the Company’s Articles of Association,
as amended and as in effect on the date hereof (the “Charter”), and the Company’s Memorandum of
Association, as amended and as in effect on the date hereof (the “Bylaws”), and the terms of all
Convertible Securities.

 

    	10

    	 

    

 

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

 

    	11

    	 

    

 

(t)          Absence
of Litigation. Except as disclosed in the SEC Documents, there is no action, suit, proceeding, inquiry or investigation before
or by the Principal Market, any court, public board, government agency, self-regulatory organization or body pending or, to the
knowledge of the Company, threatened against or affecting the Company or any of its Subsidiaries, the Common Stock or any of the
Company’s or its Subsidiaries’ officers or directors which is outside of the ordinary course of business or individually
or in the aggregate material to the Company or any of its Subsidiaries. There has not been, and to the knowledge of the Company,
there is not pending or contemplated, any investigation by the SEC involving the Company, any of its Subsidiaries or any current
or former director or officer of the Company or any of its Subsidiaries. The SEC has not issued any stop order or other order
suspending the effectiveness of any registration statement filed by the Company under the 1933 Act or the 1934 Act, including,
without limitation, the Registration Statement.

 

(u)          Insurance.
The Company and each of its Subsidiaries 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 its Subsidiaries are engaged. Neither the Company nor any such Subsidiary has been refused any insurance coverage sought or
applied for, and neither the Company nor any such Subsidiary has any reason to believe that it will be unable 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.

 

(v)         Employee
Relations. Neither the Company nor any of its Subsidiaries is a party to any collective bargaining agreement or employs any
member of a union. The Company believes that its and its Subsidiaries’ relations with their respective employees are good.
No executive officer (as defined in Rule 501(f) promulgated under the 1933 Act) or other key employee of the Company or any of
its Subsidiaries has notified the Company or any such Subsidiary that such officer intends to leave the Company or any such Subsidiary
or otherwise terminate such officer’s employment with the Company or any such Subsidiary. No executive officer or other
key employee of the Company or any of its Subsidiaries is, or is now expected to be, 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 the continued employment of each such executive officer or other key employee
(as the case may be) does not subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing
matters. The Company and its Subsidiaries are in compliance with all federal, state, local and foreign laws and regulations respecting
labor, employment and employment practices and benefits, terms and conditions of employment and wages and hours, except where
failure to be in compliance would not, either individually or in the aggregate, reasonably be expected to result in a Material
Adverse Effect.

 

(w)          Title.
The Company and its Subsidiaries have good and marketable title in fee simple to all real property, and have good and
marketable title to all personal property, owned by them which is material to the business of the Company and its
Subsidiaries, in each case, free and clear of all liens, encumbrances and defects except such as do not materially affect the
value of such property and do not interfere with the use made and proposed to be made of such property by the Company and any
of its Subsidiaries. Any real property and facilities held under lease by the Company or any of its Subsidiaries 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 of its Subsidiaries.

 

    	12

    	 

    

 

(x)          Intellectual
Property Rights. The Company and its Subsidiaries own or possess adequate rights or licenses to use all trademarks, trade
names, service marks, service mark registrations, service names, patents, patent rights, copyrights, original works, inventions,
licenses, approvals, governmental authorizations, trade secrets and other intellectual property rights and all applications and
registrations therefor (“Intellectual Property Rights”) necessary to conduct their respective businesses as
now conducted and as presently proposed to be conducted. None of the Company’s or its Subsidiaries’ Intellectual Property
Rights (which are necessary to conduct their respective businesses as now conducted and as presently proposed to be conducted)
have expired, terminated or been abandoned, or are expected to expire, terminate or be abandoned, within three years from the
date of this Agreement. The Company has no knowledge of any infringement by the Company or any of its Subsidiaries of Intellectual
Property Rights of others. There is no claim, action or proceeding being made or brought, or to the knowledge of the Company or
any of its Subsidiaries, being threatened, against the Company or any of its Subsidiaries regarding their Intellectual Property
Rights. The Company is not aware of any facts or circumstances which might give rise to any of the foregoing infringements or
claims, actions or proceedings. The Company and each of its Subsidiaries have taken reasonable security measures to protect the
secrecy, confidentiality and value of all of their Intellectual Property Rights.

 

(y)          Environmental
Laws. The Company and its Subsidiaries (i) are in compliance with all Environmental Laws (as defined below), (ii) have received
all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses
and (iii) are in compliance with all terms and conditions of any such permit, license or approval where, in each of the foregoing
clauses (i), (ii) and (iii), the failure to so comply could be reasonably expected to have, individually or in the aggregate,
a Material Adverse Effect. “Environmental Laws” means all federal, state, local or foreign laws applicable
to the Company or any of its Subsidiaries 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.

 

(z)          Subsidiary
Rights. The Company or one of its Subsidiaries has the unrestricted right to vote, and (subject to limitations imposed by
applicable law) to receive dividends and distributions on, all capital securities of its Subsidiaries as owned by the Company
or such Subsidiary.

 

    	13

    	 

    

 

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

 

(bb)         Internal
Accounting and Disclosure Controls. Except disclosed in the SEC Documents, the Company and each of its Subsidiaries maintains
internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the 1934 Act) that is effective to
provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles, including that (i) transactions are executed in
accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation
of financial statements in conformity with generally accepted accounting principles and to maintain asset and liability accountability,
(iii) access to assets or incurrence of liabilities is permitted only in accordance with management’s general or specific
authorization and (iv) the recorded accountability for assets and liabilities is compared with the existing assets and liabilities
at reasonable intervals and appropriate action is taken with respect to any difference. Except as disclosed in the SEC Documents,
the Company maintains disclosure controls and procedures (as such term is defined in Rule 13a-15(e) under the 1934 Act) that are
effective in ensuring that information required to be disclosed by the Company in the reports that it files or submits under the
1934 Act is recorded, processed, summarized and reported, within the time periods specified in the rules and forms of the SEC,
including, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company
in the reports that it files or submits under the 1934 Act is accumulated and communicated to the Company’s management,
including its principal executive officer or officers and its principal financial officer or officers, as appropriate, to allow
timely decisions regarding required disclosure. Neither the Company nor any of its Subsidiaries has received any notice or correspondence
from any accountant or other Person relating to any potential material weakness or significant deficiency in any part of the internal
controls over financial reporting of the Company or any of its Subsidiaries.

 

(cc)         Off
Balance Sheet Arrangements. There is no transaction, arrangement, or other relationship between the Company or any of its
Subsidiaries and an unconsolidated or other off balance sheet entity that is required to be disclosed by the Company in its 1934
Act filings and is not so disclosed or that otherwise could be reasonably likely to have a Material Adverse Effect.

 

(dd)         Investment
Company Status. The Company is not, and upon consummation of the sale of the Securities will not be, an “investment
company,” an affiliate of an “investment company,” a company controlled by an “investment company”
or an “affiliated person” of, or “promoter” or “principal underwriter” for, an “investment
company” as such terms are defined in the Investment Company Act of 1940, as amended.

 

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(ee)         Acknowledgement
Regarding Buyers’ Trading Activity. It is understood and acknowledged by the Company that (i) following the public disclosure
of the transactions contemplated by the Transaction Documents in accordance with the terms thereof, none of the Buyers have been
asked by the Company or any of its Subsidiaries to agree, nor has any Buyer agreed with the Company or any of its Subsidiaries,
to desist from effecting any transactions in or with respect to (including, without limitation, purchasing or selling, long and/or
short) any securities of the Company, or “derivative” securities based on securities issued by the Company or to hold
any of the Securities for any specified term; (ii) any Buyer, and counterparties in “derivative” transactions to which
any such Buyer is a party, directly or indirectly, presently may have a “short” position in the Common Stock which
was established prior to such Buyer’s knowledge of the transactions contemplated by the Transaction Documents; and (iii)
each Buyer shall not be deemed to have any affiliation with or control over any arm’s length counterparty in any “derivative”
transaction. The Company further understands and acknowledges that following the public disclosure of the transactions contemplated
by the Transaction Documents pursuant to Section 4(i) one or more Buyers may engage in hedging and/or trading activities at various
times during the period that the Securities are outstanding, including, without limitation, during the periods that the value
and/or number of Warrant Shares deliverable with respect to the Securities are being determined and such hedging and/or trading
activities, if any, can reduce the value of the existing stockholders’ equity interest in the Company both at and after
the time the hedging and/or trading activities are being conducted. The Company acknowledges that such aforementioned hedging
and/or trading activities do not constitute a breach of this Agreement or any other Transaction Document or any of the documents
executed in connection herewith or therewith.

 

(ff)         Manipulation
of Price. Neither the Company nor any of its Subsidiaries has, and, to the knowledge of the Company, no Person acting on their
behalf has, directly or indirectly, (i) taken any action designed to cause or to result in the stabilization or manipulation of
the price of any security of the Company or any of its Subsidiaries to facilitate the sale or resale of any of the Securities,
(ii) sold, bid for, purchased, or paid any compensation for soliciting purchases of, any of the Securities (other than the Placement
Agent), or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities
of the Company or any of its Subsidiaries.

 

(gg)       U.S.
Real Property Holding Corporation. Neither the Company nor any of its Subsidiaries is, or has ever been, and so long as any
of the Securities are held by any of the Buyers, shall become, a U.S. real property holding corporation within the meaning of
Section 897 of the Code, and the Company and each Subsidiary shall so certify upon any Buyer’s request.

 

(hh)       Registration
Eligibility. The Company is eligible to register the issuance and sale of the Securities
to the Buyers using Form S-3 promulgated under the 1933 Act.

 

(ii)         Transfer
Taxes. On the Closing Date, all stock transfer or other taxes (other than income
or similar taxes) which are required to be paid in connection with the issuance, sale and/or transfer of the Securities to be
sold to each Buyer hereunder will be, or will have been, fully paid or provided for by the Company, and all laws imposing such
taxes will be or will have been complied with.

 

    	15

    	 

    

 

(jj)         Bank
Holding Company Act. Neither the Company nor any of its Subsidiaries is subject to
the Bank Holding Company Act of 1956, as amended (the “BHCA”) and to regulation by the Board of Governors of
the Federal Reserve System (the “Federal Reserve”). Neither the Company nor any of its Subsidiaries or affiliates
owns or controls, directly or indirectly, five percent (5%) or more of the outstanding shares of any class of voting securities
or twenty-five percent (25%) or more of the total equity of a bank or any equity that is subject to the BHCA and to regulation
by the Federal Reserve. Neither the Company nor any of its Subsidiaries or affiliates exercises a controlling influence over the
management or policies of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve.

 

(kk)       Shell
Company Status. The Company is not, and has never been, an issuer identified in, or
subject to, Rule 144(i).

 

(ll)         Public
Utility Holding Act. None of the Company nor any of its Subsidiaries is a “holding
company,” or an “affiliate” of a “holding company,” as such terms are defined in the Public Utility
Holding Act of 2005.

 

(mm)     Federal
Power Act. None of the Company nor any of its Subsidiaries is subject to regulation
as a “public utility” under the Federal Power Act, as amended.

 

(nn)       No
Additional Agreements. The Company does not have any agreement or understanding with
any Buyer with respect to the transactions contemplated by the Transaction Documents other than as specified in the Transaction
Documents.

 

(oo)       Real
Property. Each of the Company and its Subsidiaries holds good title to all real property,
leases in real property, or other interests in real property owned or held by the Company or any of its Subsidiaries (the “Real
Property”) owned by the Company or any of its Subsidiaries (as applicable). The Real Property is free and clear of all
mortgages, defects, claims, liens, pledges, charges, taxes, rights of first refusal, encumbrances, security interests and other
encumbrances (collectively “Encumbrances”) and is not subject to any rights of way, building use restrictions,
exceptions, variances, reservations, or limitations of any nature except for (a) liens for current taxes not yet due and (b) zoning
laws and other land use restrictions that do not impair the present or anticipated use of the property subject thereto.

 

(pp)       Fixtures
and Equipment. Each of the Company and its Subsidiaries (as applicable) has good title
to, or a valid leasehold interest in, the tangible personal property, equipment, improvements, fixtures, and other personal property
and appurtenances that are used by the Company or its Subsidiary in connection with the conduct of its business (the “Fixtures
and Equipment”). The Fixtures and Equipment are structurally sound, are in good operating condition and repair, are adequate
for the uses to which they are being put, are not in need of maintenance or repairs except for ordinary, routine maintenance and
repairs and are sufficient for the conduct of the Company’s and/or its Subsidiaries’ businesses (as applicable) in
the manner as conducted prior to the Closing. Each of the Company and its Subsidiaries owns all of its Fixtures and Equipment free
and clear of all Encumbrances except for (a) liens for current taxes not yet due and (b) zoning laws and other land use restrictions
that do not impair the present or anticipated use of the property subject thereto.

 

    	16

    	 

    

 

(qq)         Illegal
or Unauthorized Payments; Political Contributions. Neither the Company nor any of
its Subsidiaries nor, to the best of the Company’s knowledge (after reasonable inquiry of its officers and directors), any
of the officers, directors, employees, agents or other representatives of the Company or any of its Subsidiaries or any other business
entity or enterprise with which the Company or any Subsidiary is or has been affiliated or associated, has, directly or indirectly,
made or authorized any payment, contribution or gift of money, property, or services, whether or not in contravention of applicable
law, (a) as a kickback or bribe to any Person or (b) to any political organization, or the holder of or any aspirant to any elective
or appointive public office except for personal political contributions not involving the direct or indirect use of funds of the
Company or any of its Subsidiaries.

 

(rr)         Money
Laundering. The Company and its Subsidiaries are in compliance with, and have not
previously violated, the USA Patriot Act of 2001 and all other applicable U.S. and non-U.S. anti-money laundering laws and regulations,
including, without limitation, the laws, regulations and Executive Orders and sanctions programs administered by the U.S. Office
of Foreign Assets Control, including, without limitation, (i) Executive Order 13224 of September 23, 2001 entitled, “Blocking
Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism” (66 Fed. Reg. 49079
(2001)); and (ii) any regulations contained in 31 CFR, Subtitle B, Chapter V.

 

(ss)         Registration
Rights. No holder of securities of the Company has rights to the registration of any
securities of the Company because of the filing of the Registration Statement or the issuance of the Securities hereunder that
could expose the Company to material liability or any Buyer to any liability or that could impair the Company’s ability to
consummate the issuance and sale of the Securities in the manner, and at the times, contemplated hereby, which rights have not
been waived by the holder thereof as of the date hereof.

 

(tt)         Management.
During the prior two (2) year period ending on the day immediately preceding the date hereof, to the knowledge of the Company,
no current officer or director of the Company has been the subject of:

 

(i)          a
petition under bankruptcy laws or any other insolvency or moratorium law or the appointment by a court of a receiver, fiscal agent
or similar officer for such Person, or any partnership in which such Person was a general partner at or within two years before
the filing of such petition or such appointment, or any corporation or business association of which such Person was an executive
officer at or within two years before the time of the filing of such petition or such appointment;

 

(ii)         a
conviction in a criminal proceeding or a named subject of a pending criminal proceeding (excluding traffic violations that do not
relate to driving while intoxicated or driving under the influence);

 

(iii)        any
order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently
or temporarily enjoining any such Person from, or otherwise limiting, the following activities:

 

(1)         acting
as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker, leverage
transaction merchant, any other Person regulated by the United States Commodity Futures Trading Commission or an associated Person
of any of the foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated Person,
director or employee of any investment company, bank, savings and loan association or insurance company, or engaging in or continuing
any conduct or practice in connection with such activity;

 

    	17

    	 

    

 

(2)         engaging
in any type of business practice; or

 

(3)         engaging
in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of securities
laws or commodities laws;

 

(iv)        any
order, judgment or decree, not subsequently reversed, suspended or vacated, of any authority barring, suspending or otherwise limiting
for more than sixty (60) days the right of any such Person to engage in any activity described in the preceding sub paragraph,
or to be associated with Persons engaged in any such activity;

 

(v)         a
finding by a court of competent jurisdiction in a civil action or by the SEC or other authority to have violated any securities
law, regulation or decree and the judgment in such civil action or finding by the SEC or any other authority has not been subsequently
reversed, suspended or vacated; or

 

(vi)        a
finding by a court of competent jurisdiction in a civil action or by the Commodity Futures Trading Commission to have violated
any federal commodities law, and the judgment in such civil action or finding has not been subsequently reversed, suspended or
vacated.

 

(uu)         Disclosure.
The Company confirms that neither it nor any other Person acting on its behalf has provided any of the Buyers or their agents or
counsel with any information that constitutes or could reasonably be expected to constitute material, non-public information regarding
the Company or any of its Subsidiaries, other than the existence of the transactions contemplated by this Agreement and the other
Transaction Documents. The Company understands and confirms that each of the Buyers will rely on the foregoing representations
in effecting transactions in securities of the Company. All disclosure provided to the Buyers regarding the Company and its Subsidiaries,
their businesses and the transactions contemplated hereby, including the schedules to this Agreement, furnished by or on behalf
of the Company or any of its Subsidiaries is true and correct and does 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 the light of the circumstances under which
they were made, not misleading. Each press release issued by the Company or any of its Subsidiaries during the twelve (12) months
preceding the date of this Agreement did not at the time of release contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances
under which they are made, not misleading. No event or circumstance has occurred or information exists with respect to the Company
or any of its Subsidiaries or its or their business, properties, liabilities, prospects, operations (including results thereof)
or conditions (financial or otherwise), which, under applicable law, rule or regulation, requires public disclosure at or before
the date hereof or announcement by the Company but which has not been so publicly disclosed. The Company acknowledges and agrees
that no Buyer makes or has made any representations or warranties with respect to the transactions contemplated hereby other than
those specifically set forth in Section 2.

 

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4.           COVENANTS.

 

(a)          Maintenance
of Registration Statement For so long as any of the Warrants remain outstanding, the Company shall use its best efforts
to maintain the effectiveness of the Registration Statement for the issuance thereunder of the Warrant Shares, provided that
if at any time while the Warrants are outstanding the Company shall be ineligible to utilize Form S-3 (or any successor form)
for the purpose of issuance of the Warrant Shares, the Company shall promptly amend the Registration Statement on such other
form as may be necessary to maintain the effectiveness of the Registration Statement for this purpose. If at any time
following the date hereof the Registration Statement is not effective or is not otherwise available for the issuance of the
Securities or any prospectus contained therein is not available for use, the Company shall immediately notify the holders of
the Securities in writing that the Registration Statement is not then effective or a prospectus contained therein is not
available for use and thereafter shall promptly notify such holders when the Registration Statement is effective again and
available for the issuance of the Securities or such prospectus is again available for use.

 

(b)          Prospectus
Supplement and Blue Sky. Immediately prior to execution of this Agreement, the Company
shall have delivered, and as soon as practicable after execution of this Agreement the Company shall file, the Prospectus Supplement
with respect to the Securities as required under, and in conformity with, the 1933 Act, including Rule 424(b) thereunder. If required,
the Company, on or before the Closing Date, shall take such action as the Company shall reasonably determine is necessary in order
to obtain an exemption for, or to, qualify the Securities for sale to the Buyers at the Closing pursuant to this Agreement under
applicable securities or “Blue Sky” laws of the states of the United States (or to obtain an exemption from such qualification),
and shall provide evidence of any such action so taken to the Buyers on or prior to the Closing Date. Without limiting any other
obligation of the Company under this Agreement, the Company shall timely make all filings and reports relating to the offer and
sale of the Securities required under all applicable securities laws (including, without limitation, all applicable federal securities
laws and all applicable “Blue Sky” laws), and the Company shall comply with all applicable foreign, federal, state
and local laws, statutes, rules, regulations and the like relating to the offering and sale of the Securities to the Buyers.

 

(c)          Reporting
Status. Until the date on which no Warrants are outstanding (the “Reporting Period”), the Company shall
timely file all reports required to be filed with the SEC pursuant to the 1934 Act, and the Company shall not terminate its status
as an issuer required to file reports under the 1934 Act even if the 1934 Act or the rules and regulations thereunder would no
longer require or otherwise permit such termination.

 

(d)          Use
of Proceeds. The Company shall use the net proceeds from the sale of the Securities hereunder solely for general working capital
purposes, including acquisition of complementary assets or businesses. Notwithstanding the foregoing, none of such proceeds shall
be used, directly or indirectly, (i) for the satisfaction of any debt of the Company or any of its Subsidiaries (other than (I)
payment of trade payables incurred after the date hereof in the ordinary course of business of the Company and its Subsidiaries
and consistent with prior practices and (II) the purchase of any of the Securities), (ii) for the redemption of any securities
of the Company or (iii) with respect to any litigation involving the Company or any of its Subsidiaries (including, without limitation,
(x) any settlement thereof or (y) the payment of any costs or expenses related thereto).

 

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(e)          Financial
Information. The Company agrees to send the following to each Buyer during the Reporting Period, unless the following are
filed with the SEC through EDGAR and are available to the public through the EDGAR system, (i) within one (1) Business Day after
the filing thereof with the SEC, a copy of its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, any interim reports
or any consolidated balance sheets, income statements, stockholders’ equity statements and/or cash flow statements for any
period other than annual, any Current Reports on Form 8-K and any registration statements (other than on Form S-8) or amendments
filed pursuant to the 1933 Act and (ii) copies of any notices and other information made available or given to the stockholders
of the Company generally, contemporaneously with the making available or giving thereof to the stockholders.

 

(f)          Listing.
The Company shall promptly secure the listing or designation for quotation (as the case may be) of all of the Common Shares and
Warrant Shares upon each national securities exchange and automated quotation system, if any, upon which the Common Stock is then
listed or designated for quotation (as the case may be) (subject to official notice of issuance) (but in no event later than the
Closing Date) and shall maintain such listing or designation for quotation (as the case may be) of all the shares of Common Stock
from time to time issuable under the terms of the Transaction Documents on such national securities exchange or automated quotation
system. The Company shall maintain the Common Stock’s listing or designation for quotation (as the case may be) on the Principal
Market, The New York Stock Exchange, the NYSE MKT, the Nasdaq Global Select Market or the Nasdaq Global Market (each, an “Eligible
Market”). Neither the Company nor any of its Subsidiaries shall take any action which could be reasonably expected to
result in the delisting or suspension of the Common Stock on an Eligible Market. The Company shall pay all fees and expenses in
connection with satisfying its obligations under this Section 4(f).

 

(g)          Fees.
The Company shall reimburse Cranshire Capital Master Fund, Ltd. (“Cranshire”) or its designee(s) for all costs
and expenses incurred by it or its affiliates in connection with the transactions contemplated by the Transaction Documents (including,
without limitation, all legal fees and disbursements in connection therewith, structuring, documentation and implementation of
the transactions contemplated by the Transaction Documents and due diligence and regulatory filings in connection therewith) in
a non-accountable amount equal to $40,000, which amount shall be withheld by Cranshire from its Purchase Price at the Closing
or paid by the Company on demand by Cranshire if Cranshire terminates its obligations under this Agreement in accordance with
Section 7 (as the case may be), less $20,000 which was previously advanced to Cranshire by the Company. The Company shall be responsible
for the payment of any placement agent’s fees, financial advisory fees, or broker’s commissions (other than for Persons
engaged by any Buyer) relating to or arising out of the transactions contemplated hereby (including, without limitation, any fees
payable to the Placement Agent, who is the Company’s sole placement agent in connection with the transactions contemplated
by this Agreement). The Company shall pay, and hold each Buyer harmless against, any liability, loss or expense (including, without
limitation, reasonable attorneys’ fees and out-of-pocket expenses) arising in connection with any claim relating to any
such payment. Except as otherwise set forth in the Transaction Documents, each party to this Agreement shall bear its own expenses
in connection with the sale of the Securities to the Buyers.

 

(h)          Pledge
of Securities. Notwithstanding anything to the contrary contained in this Agreement, the Company acknowledges and agrees
that the Securities may be pledged by a Buyer in connection with a bona fide margin agreement or other loan or financing
arrangement that is secured by the Securities. The pledge of Securities shall not be deemed to be a transfer, sale or
assignment of the Securities hereunder, and no Buyer effecting a pledge of Securities shall be required to provide the
Company with any notice thereof or otherwise make any delivery to the Company pursuant to this Agreement or any other
Transaction Document. The Company hereby agrees to execute and deliver such documentation as a pledgee of the Securities may
reasonably request in connection with a pledge of the Securities to such pledgee by a Buyer.

 

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(i)          Disclosure
of Transactions and Other Material Information. The Company shall, on or before 8:30 a.m., New York time, on the
date of this Agreement, (x) issue a press release (the “Press Release”) reasonably acceptable to the Buyers
disclosing all the material terms of the transactions contemplated by the Transaction Documents and (y) file a Current Report
on Form 8-K describing all the material terms of the transactions contemplated by the Transaction Documents in the form
required by the 1934 Act and attaching all the material Transaction Documents (including, without limitation, this Agreement
(and all schedules to this Agreement) and the form of Warrants) (including all attachments, the “8-K
Filing”). From and after the issuance of the Press Release, the Company shall have disclosed all material,
non-public information (if any) regarding the Company or any of its Subsidiaries delivered to any of the Buyers by the
Company or any of its Subsidiaries, or any of their respective officers, directors, employees or agents in connection with
the transactions contemplated by the Transaction Documents. The Company shall not, and the Company shall cause each of its
Subsidiaries and each of its and their respective officers, directors, employees and agents, not to, provide any Buyer with
any material, non-public information regarding the Company or any of its Subsidiaries from and after the issuance of the
Press Release without the express prior written consent of such Buyer (which may be granted or withheld in such Buyer’s
sole discretion). In the event of a breach of any of the foregoing covenants or any of the covenants contained in Section
4(n) by the Company, any of its Subsidiaries, or any of its or their respective officers, directors, employees and agents (as
determined in the reasonable good faith judgment of such Buyer), in addition to any other remedy provided herein or in the
Transaction Documents, such Buyer shall have the right to make a public disclosure, in the form of a press release, public
advertisement or otherwise, of such material, non-public information without the prior approval by the Company, any of its
Subsidiaries, or any of its or their respective officers, directors, employees or agents. No Buyer shall have any
liability to the Company, any of its Subsidiaries, or any of its or their respective officers, directors, employees,
stockholders or agents, for any such disclosure. Subject to the foregoing, neither the Company, its Subsidiaries nor any
Buyer shall issue any press releases or any other public statements with respect to the transactions contemplated hereby;
provided, however, the Company shall be entitled, without the prior approval of any Buyer, to make any press release or other
public disclosure with respect to such transactions (i) in substantial conformity with the 8-K Filing and contemporaneously
therewith and (ii) as is required by applicable law and regulations (provided that in the case of clause (i) each Buyer shall
be consulted by the Company in connection with any such press release or other public disclosure prior to its release).
Without the prior written consent of the applicable Buyer (which may be granted or withheld in such Buyer’s sole
discretion), the Company shall not (and shall cause each of its Subsidiaries and affiliates to not) disclose the name of such
Buyer in any filing (other than the 8-K Filing), announcement, release or otherwise. Notwithstanding anything contained in
this Agreement to the contrary and without implication that the contrary would otherwise be true, the Company expressly
acknowledges and agrees that no Buyer has had, and no Buyer shall have (unless expressly agreed to by a particular Buyer
after the date hereof in a written definitive and binding agreement executed by the Company and such particular Buyer (it
being understood and agreed that no Buyer may bind any other Buyer with respect thereto)), any duty of confidentiality with
respect to, or a duty not to trade on the basis of, any information regarding the Company or any of its Subsidiaries.

 

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(j)          Additional
Issuance of Securities. The Company agrees that for the period commencing on the date hereof and ending on the sixty
first (61st) Trading Day immediately following the Closing Date (provided that such period shall be extended by
the number of days during such period and any extension thereof contemplated by this proviso on which the Registration
Statement is not effective or any prospectus contained therein is not available for use) (the “Restricted Period”),
neither the Company nor any of its Subsidiaries shall directly or indirectly issue, offer, sell, grant any option or right to
purchase, or otherwise dispose of (or announce any issuance, offer, sale, grant of any option or right to purchase or other
disposition of) any equity security or any equity-linked or related security (including, without limitation, any
“equity security” (as that term is defined under Rule 405 promulgated under the 1933 Act)), any Convertible
Securities, any debt, any preferred stock or any purchase rights (any such issuance, offer, sale, grant, disposition or
announcement (whether occurring during the Restricted Period or at any time thereafter) is referred to as a
“Subsequent Placement”). Notwithstanding the foregoing, this Section 4(j) shall not apply in respect of
the issuance of (A) shares of Common Stock or standard options to purchase Common Stock to directors, officers or employees
of the Company in their capacity as such pursuant to an Approved Share Plan (as defined below), provided that (1) all such
issuances (taking into account the shares of Common Stock issuable upon exercise of such options) after the date hereof
pursuant to this clause (A) do not, in the aggregate, exceed more than 200,000 shares of Common Stock (as adjusted for stock
splits, stock combinations and other similar transactions occurring after the date of this Agreement) and (2) the exercise
price of any such options is not lowered, none of such options are amended to increase the number of shares issuable
thereunder and none of the terms or conditions of any such options are otherwise materially changed in any manner
that adversely affects any of the Buyers; (B) shares of Common Stock issued upon the conversion or exercise of, or otherwise
on account of, Convertible Securities (other than standard options to purchase Common Stock issued pursuant to an Approved
Share Plan that are covered by clause (A) above) issued prior to the date hereof, provided that the conversion, exercise or
other method of issuance (as the case may be) of any such Convertible Security is made solely pursuant to the conversion,
exercise or other method of issuance (as the case may be) provisions of such Convertible Security that were in effect on the
date immediately prior to the date of this Agreement, the conversion, exercise or issuance price of any such Convertible
Securities (other than standard options to purchase Common Stock issued pursuant to an Approved Share Plan that are covered
by clause (A) above) is not lowered, none of such Convertible Securities are (other than standard options to purchase Common
Stock issued pursuant to an Approved Share Plan that are covered by clause (A) above) (nor is any provision of any such
Convertible Securities) amended or waived in any manner (whether by the Company or the holder thereof) to increase, or which
results in an increase in, the number of shares issuable thereunder and none of the terms or conditions of any such
Convertible Securities (other than standard options to purchase Common Stock issued pursuant to an Approved Share Plan that
are covered by clause (A) above) are otherwise materially changed or waived (whether by the Company or the holder thereof) in
any manner that adversely affects any of the Buyers; (C) shares of Common Stock issued in connection with strategic mergers
and acquisitions, provided that (I) the primary purpose of such issuance is not to raise capital, (II) the acquirer of such
shares of Common Stock in such issuance solely consists of either (1) the actual owners of such assets or securities acquired
in such merger or acquisition or (2) the stockholders, partners or members of the foregoing Persons, (III) the number or
amount (as the case may be) of such shares of Common Stock issued to each such Person by the Company is not disproportionate
to such Person’s actual ownership of such assets or securities to be acquired by the Company (as applicable) and (IV)
all such issuances of Common Stock after the date hereof pursuant to this clause (C) do not, in the aggregate, exceed more
than 1,000,000 shares of Common Stock (adjusted for stock splits, stock combinations and other similar transactions occurring
after the date of this Agreement); (D) 54,650 shares of Common Stock issuable upon exercise of a warrant issued to
the Placement Agent pursuant to an agreement between the Company and the Placement Agent dated October 18, 2013, (E) the
Common Shares and (F) the Warrant Shares (each of the foregoing in clauses (A) through (F), collectively the
“Excluded Securities”). “Approved Share Plan” means any employee benefit plan which has
been approved by the board of directors of the Company prior to the date hereof pursuant to which shares of Common Stock and
standard options to purchase Common Stock may be issued to any employee, officer or director for services provided to the
Company in their capacity as such. “Convertible Securities” means any capital stock, note, debenture or
other security of the Company or any of its Subsidiaries that is, or may become, at any time and under any circumstances
directly or indirectly convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to
acquire, any capital stock, note, debenture or other security of the Company (including, without limitation, Common Stock) or
any of its Subsidiaries.

 

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(k)          Reservation
of Shares. So long as any of the Warrants remain outstanding, the Company shall take all action necessary to at all times
have authorized, and reserved for the purpose of issuance, no less than the maximum number of shares of Common Stock issuable
upon exercise of all the Warrants (without regard to any limitations on the exercise of the Warrants set forth therein).

 

(l)          Conduct
of Business. The business of the Company and its Subsidiaries shall not be conducted in violation of any law, ordinance or
regulation of any governmental entity, except where such violations would not result, either individually or in the aggregate,
in a Material Adverse Effect.

 

(m)          Variable
Rate Transaction. Until none of the Warrants are outstanding, the Company and each
Subsidiary shall be prohibited from effecting or entering into an agreement to effect any Subsequent Placement involving a Variable
Rate Transaction. “Variable Rate Transaction” means a transaction in which the Company or any Subsidiary (i)
issues or sells any Convertible Securities either (A) at a conversion, exercise or exchange rate or other price that is based upon
and/or varies with the trading prices of, or quotations for, the shares of Common Stock at any time after the initial issuance
of such Convertible Securities, or (B) with a conversion, exercise or exchange price that is subject to being reset at some future
date after the initial issuance of such Convertible Securities or upon the occurrence of specified or contingent events directly
or indirectly related to the business of the Company or the market for the Common Stock, other than pursuant to a customary “weighted
average” anti-dilution provision or (ii) enters into any agreement (including, without limitation, an “equity line
of credit” or an “at-the-market offering”) whereby the Company or any Subsidiary may sell securities at a future
determined price (other than standard and customary “preemptive” or “participation” rights). Each Buyer
shall be entitled to obtain injunctive relief against the Company and its Subsidiaries to preclude any such issuance, which remedy
shall be in addition to any right to collect damages.

 

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(n)          Participation
Right. From the date hereof through the twelve (12) month anniversary of the Closing
Date, neither the Company nor any of its Subsidiaries shall, directly or indirectly, effect any Subsequent Placement unless the
Company shall have first complied with this Section 4(n). The Company acknowledges
and agrees that the right set forth in this Section 4(n) is a right granted
by the Company, separately, to each Buyer.

 

(i)          At
least three (3) Trading Days prior to any proposed or intended Subsequent Placement, the Company shall deliver to each Buyer a
written notice of its proposal or intention to effect a Subsequent Placement (each such notice, a “Pre-Notice”),
which Pre-Notice shall not contain any information (including, without limitation, material, non-public information regarding the
Company or any of its Subsidiaries) other than: (i) a statement that the Company proposes or intends to effect a Subsequent Placement,
(ii) a statement that the statement in clause (i) above does not constitute material, non-public information and (iii) a statement
informing such Buyer that it is entitled to receive an Offer Notice (as defined below) with respect to such Subsequent Placement
upon its written request. Upon the written request of a Buyer within two (2) Trading Days after the Company’s delivery
to such Buyer of such Pre-Notice, and only upon a written request by such Buyer, the Company shall promptly, but no later than
one (1) Trading Day after such request, deliver to such Buyer an irrevocable written notice (the “Offer Notice”)
of any proposed or intended issuance or sale or exchange (the “Offer”) of the securities being offered (the
“Offered Securities”) in a Subsequent Placement, which Offer Notice shall (w) identify and describe the Offered
Securities, (x) describe the price and other terms upon which they are to be issued, sold or exchanged, and the number or amount
of the Offered Securities to be issued, sold or exchanged, (y) identify the Persons (if known) to which or with which the Offered
Securities are to be offered, issued, sold or exchanged and (z) offer to issue and sell to or exchange with such Buyer in accordance
with the terms of the Offer 50% of the Offered Securities, provided that the number of Offered Securities which such Buyer shall
have the right to subscribe for under this Section 4(n) shall be (a) based on such Buyer’s pro rata portion of the aggregate
number of Common Shares purchased hereunder by all Buyers (the “Basic Amount”), and (b) with respect to each
Buyer that elects to purchase its Basic Amount, any additional portion of the Offered Securities attributable to the Basic Amounts
of other Buyers as such Buyer shall indicate it will purchase or acquire should the other Buyers subscribe for less than their
Basic Amounts (the “Undersubscription Amount”).

 

(ii)         To
accept an Offer, in whole or in part, such Buyer must deliver a written notice to the Company prior to the end of the third (3rd)
Business Day after such Buyer’s receipt of the Offer Notice (the “Offer Period”), setting forth the portion
of such Buyer’s Basic Amount that such Buyer elects to purchase and, if such Buyer shall elect to purchase all of its Basic
Amount, the Undersubscription Amount, if any, that such Buyer elects to purchase (in either case, the “Notice of Acceptance”).
If the Basic Amounts subscribed for by all Buyers are less than the total of all of the Basic Amounts, then such Buyer who has
set forth an Undersubscription Amount in its Notice of Acceptance shall be entitled to purchase, in addition to the Basic Amounts
subscribed for, the Undersubscription Amount it has subscribed for; provided, however, if the Undersubscription Amounts subscribed
for exceed the difference between the total of all the Basic Amounts and the Basic Amounts subscribed for (the “Available
Undersubscription Amount”), such Buyer who has subscribed for any Undersubscription Amount shall be entitled to purchase
only that portion of the Available Undersubscription Amount as the Basic Amount of such Buyer bears to the total Basic Amounts
of all Buyers that have subscribed for Undersubscription Amounts, subject to rounding by the Company to the extent it deems reasonably
necessary. Notwithstanding the foregoing, if the Company desires to modify or amend the terms and conditions of the Offer prior
to the expiration of the Offer Period, the Company may deliver to each Buyer a new Offer Notice and the Offer Period shall expire
on the third (3rd) Business Day after such Buyer’s receipt of such new Offer Notice.

 

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(iii)        The
Company shall have five (5) days from the expiration of the Offer Period above (i) to offer, issue, sell or exchange all or any
part of such Offered Securities as to which a Notice of Acceptance has not been given by a Buyer (the “Refused Securities”)
pursuant to a definitive agreement(s) (the “Subsequent Placement Agreement”), but only to the offerees described
in the Offer Notice (if so described therein) and only upon terms and conditions (including, without limitation, unit prices and
interest rates) that are not more favorable to the acquiring Person or Persons or less favorable to the Company than those set
forth in the Offer Notice and (ii) to publicly announce (a) the execution of such Subsequent Placement Agreement, and (b) either
(x) the consummation of the transactions contemplated by such Subsequent Placement Agreement or (y) the termination of such Subsequent
Placement Agreement, which shall be filed with the SEC on a Current Report on Form 8-K with such Subsequent Placement Agreement
and any documents contemplated therein filed as exhibits thereto.

 

(iv)        In
the event the Company shall propose to sell less than all the Refused Securities (any such sale to be in the manner and on the
terms specified in Section 4(n)(iii) above), then such Buyer may, at its sole option and in its sole discretion, reduce the number
or amount of the Offered Securities specified in its Notice of Acceptance to an amount that shall be not less than the number or
amount of the Offered Securities that such Buyer elected to purchase pursuant to Section 4(n)(ii) above multiplied by a fraction,
(i) the numerator of which shall be the number or amount of Offered Securities the Company actually proposes to issue, sell or
exchange (including Offered Securities to be issued or sold to Buyers pursuant to this Section 4(n) prior to such reduction) and
(ii) the denominator of which shall be the original amount of the Offered Securities. In the event that any Buyer so elects to
reduce the number or amount of Offered Securities specified in its Notice of Acceptance, the Company may not issue, sell or exchange
more than the reduced number or amount of the Offered Securities unless and until such securities have again been offered to the
Buyers in accordance with Section 4(n)(i) above.

 

(v)         Upon
the closing of the issuance, sale or exchange of all or less than all of the Refused Securities, such Buyer shall acquire from
the Company, and the Company shall issue to such Buyer, the number or amount of Offered Securities specified in its Notice of Acceptance.
The purchase by such Buyer of any Offered Securities is subject in all cases to the preparation, execution and delivery by the
Company and such Buyer of a separate purchase agreement relating to such Offered Securities reasonably satisfactory in form and
substance to such Buyer and its counsel.

 

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(vi)        Any
Offered Securities not acquired by a Buyer or other Persons in accordance with this Section 4(n) may not be issued, sold or exchanged
until they are again offered to such Buyer under the procedures specified in this Agreement.

 

(vii)       The
Company and each Buyer agree that if any Buyer elects to participate in the Offer, neither the Subsequent Placement Agreement with
respect to such Offer nor any other transaction documents related thereto (collectively, the “Subsequent Placement Documents”)
shall include any term or provision whereby such Buyer shall be required to agree to any restrictions on trading as to any securities
of the Company or be required to consent to any amendment to or termination of, or grant any waiver, release or the like under
or in connection with, any agreement previously entered into with the Company or any instrument received from the Company.

 

(viii)      Notwithstanding
anything to the contrary in this Section 4(n) and unless otherwise agreed to by such Buyer, the Company shall either confirm in
writing to such Buyer that the transaction with respect to the Subsequent Placement has been abandoned or shall publicly disclose
its intention to issue the Offered Securities, in either case in such a manner such that such Buyer will not be in possession of
any material, non-public information regarding the Company or any of its Subsidiaries, by the fifth (5th) Business Day
following delivery of the Offer Notice. If by such fifth (5th) Business Day, no public disclosure regarding a transaction
with respect to the Offered Securities has been made, and no notice regarding the abandonment of such transaction has been received
by such Buyer, such transaction shall be deemed to have been abandoned and such Buyer shall not be in possession of any material,
non-public information regarding the Company or any of its Subsidiaries. Should the Company decide to pursue such transaction with
respect to the Offered Securities, the Company shall provide such Buyer with another Offer Notice in accordance with, and subject
to, the terms of this Section 4(n) and such Buyer will again have the right of participation set forth in this Section 4(n). The
Company shall not be permitted to deliver more than one Offer Notice to such Buyer in any sixty (60) day period, except as expressly
contemplated by the last sentence of Section 4(n)(ii).

 

(ix)         The
restrictions contained in this Section 4(n) shall not apply in connection with the issuance of any Excluded Securities. The Company
shall not circumvent the provisions of this Section 4(n) by providing terms or conditions to one Buyer that are not provided to
all Buyers.

 

(o)          Passive
Foreign Investment Company. The Company shall conduct its business, and shall cause
its Subsidiaries to conduct their respective businesses, in such a manner as will ensure that the Company will not be deemed to
constitute a passive foreign investment company within the meaning of Section 1297 of the Code.

 

(p)          Corporate
Existence. So long as any Buyer owns any Warrants, the Company shall not be party to any Fundamental Transaction (as defined
in the Warrants) unless the Company is in compliance with the applicable provisions governing Fundamental Transactions set forth
in the Warrants.

 

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5.           REGISTER;
TRANSFER AGENT INSTRUCTIONS; LEGEND.

 

(a)          Register.
The Company shall maintain at its principal executive offices (or such other office or agency of the Company as it may designate
by notice to each holder of Securities), a register for the Common Shares and the Warrants in which the Company shall record the
name and address of the Person in whose name the Common Shares and the Warrants have been issued (including the name and
address of each transferee), the number of Common Shares held by such Person and the number of Warrant Shares issuable upon exercise
of the Warrants held by such Person. The Company shall keep the register open and available at all times during business hours
for inspection of any Buyer or its legal representatives.

 

(b)          Transfer
Agent Instructions. The Company shall issue irrevocable instructions to the Transfer Agent in the form previously provided
to the Company (the “Irrevocable Transfer Agent Instructions”) to issue certificates or credit shares to the
applicable balance accounts at DTC, registered in the name of each Buyer or its respective nominee(s), for the Common Shares and
the Warrant Shares in such amounts as specified from time to time by each Buyer to the Company upon delivery of the Common Shares
or the exercise of the Warrants (as the case may be). The Company represents and warrants that no instruction other than the Irrevocable
Transfer Agent Instructions referred to in this Section 5(b) will be given by the Company to the Transfer Agent with respect to
the Securities, and that the Securities shall otherwise be freely transferable on the books and records of the Company. If a Buyer
effects a sale, assignment or transfer of the Securities, the Company shall permit the transfer and shall promptly instruct the
Transfer Agent to issue one or more certificates or credit shares to the applicable balance accounts at DTC in such name and in
such denominations as specified by such Buyer to effect such sale, transfer or assignment. The Company acknowledges that a breach
by it of its obligations hereunder will cause irreparable harm to each Buyer. Accordingly, the Company acknowledges that the remedy
at law for a breach of its obligations under this Section 5(b) will be inadequate and agrees, in the event of a breach or threatened
breach by the Company of the provisions of this Section 5(b), that each Buyer shall be entitled, in addition to all other available
remedies, to an order and/or injunction restraining any breach and requiring immediate issuance and transfer, without the necessity
of showing economic loss and without any bond or other security being required.

 

(c)          Legends.
Certificates and any other instruments evidencing the Securities shall not bear any restrictive or other legend.

 

6.           ADDITIONAL
CLOSING DELIVERIES OF THE COMPANY.

 

(a)          Deliveries.
The Company shall deliver to each Buyer on the Closing Date each of the following:

 

(i)          The
opinions of Ellenoff Grossman & Schole LLP and Campbells, who are each the Company’s counsel, dated as of the Closing
Date, in the form previously provided to the Company.

 

(ii)         A
copy of the Irrevocable Transfer Agent Instructions, in the form previously provided to the Company, that have been delivered to
and acknowledged in writing by the Transfer Agent.

 

(iii)        A
certificate evidencing the formation and good standing of the Company and each of its Subsidiaries in each such entity’s
jurisdiction of formation issued by the Secretary of State (or comparable office) of such jurisdiction of formation as of a date
within ten (10) days of the Closing Date.

 

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(iv)        A
certificate evidencing the Company’s qualification as a foreign corporation and good standing issued by the Secretary of
State (or comparable office) of each jurisdiction in which the Company conducts business and is required to so qualify, as of a
date within ten (10) days of the Closing Date.

 

(v)         A
certified copy of the Charter as certified by the Secretary of State of the Company’s jurisdiction of formation within ten
(10) days of the Closing Date.

 

(vi)        A
certificate, in the form previously provided to the Company, executed by the Secretary of the Company and dated as of the Closing
Date, as to (i) the resolutions consistent with Section 3(b) as adopted by the Company’s board of directors in a form reasonably
acceptable to such Buyer, (ii) the Charter and (iii) the Bylaws, each as in effect at the Closing.

 

(vii)       A
letter from the Transfer Agent certifying the number of shares of Common Stock outstanding on the Closing Date immediately prior
to the Closing.

 

(viii)      Such
other documents, instruments or certificates relating to the transactions contemplated by this Agreement as such Buyer or its counsel
may reasonably request.

 

7.           TERMINATION.

 

In the event that the
Closing shall not have occurred with respect to a Buyer within five (5) days after the date hereof, then such Buyer shall have
the right to terminate its obligations under this Agreement with respect to itself at any time on or after the close of business
on such date without liability of such Buyer to any other party; provided, however, (i) the right of a party to terminate its obligations
under this Agreement pursuant to this Section 7 shall not be available to such Buyer if the failure of the transactions contemplated
by this Agreement to have been consummated by such date is the result of such Buyer’s breach of this Agreement and (ii) the
abandonment of the sale and purchase of the Common Shares and the Warrants shall be applicable only to such Buyer providing such
written notice, provided further that no such termination shall affect any obligation of the Company under this Agreement to reimburse
such Buyer for the expenses described in Section 4(g) above. Nothing contained in this Section 7 shall be deemed to release any
party from any liability for any breach by such party of the terms and provisions of this Agreement or the other Transaction Documents
or to impair the right of any party to compel specific performance by any other party of its obligations under this Agreement or
the other Transaction Documents.

 

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8.           MISCELLANEOUS.

 

(a)          Governing
Law; Jurisdiction; Jury Trial. The parties hereby agree that pursuant to 735 Illinois Compiled Statutes 105/5-5 they have
chosen that all questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed
by the internal laws of the State of Illinois, without giving effect to any choice of law or conflict of law provision or rule
(whether of the State of Illinois or any other jurisdictions) that would cause the application of the laws of any jurisdictions
other than the State of Illinois. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal
courts sitting in Chicago, Illinois, for the adjudication of any dispute hereunder or under any of the other Transaction Documents
or in connection herewith or with any transaction contemplated hereby or thereby or discussed herein or therein, and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction
of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action
or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served
in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this
Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained
herein shall (i) limit, or be deemed to limit, in any way any right to serve process in any manner permitted by law, (ii) operate,
or shall be deemed to operate, to preclude any Buyer from bringing suit or taking other legal action against the Company in any
other jurisdiction to collect on the Company’s obligations to such Buyer or to enforce a judgment or other court ruling
in favor of such Buyer or (iii) limit, or be deemed to limit, any provision of Section 13 of the Warrants. EACH PARTY HEREBY
IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER
OR UNDER ANY OTHER TRANSACTION DOCUMENT OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT, ANY OTHER TRANSACTION DOCUMENT
OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY.

 

(b)          Counterparts.
This Agreement may be executed in two or more counterparts, all of which shall be considered one and the same agreement and shall
become effective when counterparts have been signed by each party and delivered to the other party. In the event that any signature
is delivered by facsimile transmission or by an e-mail which contains a portable document format (.pdf) file of an executed signature
page, such signature page 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 signature page were an original thereof.

 

(c)          Headings;
Gender. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation
of, this Agreement. Unless the context clearly indicates otherwise, each pronoun herein shall be deemed to include the masculine,
feminine, neuter, singular and plural forms thereof. The terms “including,” “includes,” “include”
and words of like import shall be construed broadly as if followed by the words “without limitation.” The terms “herein,”
“hereunder,” “hereof” and words of like import refer to this entire Agreement instead of just the provision
in which they are found.

 

(d)          Severability.
If any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable by a court of
competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to
apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision
shall not affect the validity of the remaining provisions of this Agreement so long as this Agreement as so modified
continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the
prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the
respective expectations or reciprocal obligations of the parties or the practical realization of the benefits that would
otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited,
invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of
the prohibited, invalid or unenforceable provision(s).

 

    	29

    	 

    

 

(e)          Entire
Agreement; Amendments. This Agreement, the other Transaction Documents and the schedules and exhibits attached hereto and
thereto and the instruments referenced herein and therein supersede all other prior oral or written agreements between the
Buyers, the Company, their affiliates and Persons acting on their behalf solely with respect to the matters contained herein
and therein, and this Agreement, the other Transaction Documents, the schedules and exhibits attached hereto and thereto and
the instruments referenced herein and therein contain the entire understanding of the parties solely with respect to the
matters covered herein and therein; provided, however, nothing contained in this Agreement or any other Transaction Document
shall (or shall be deemed to) (i) have any effect on any agreements any Buyer or any of its affiliates has entered into with,
or any instruments any Buyer or any of its affiliates has received from, the Company or any of its Subsidiaries prior to the
date hereof with respect to any prior investment made by such Buyer or any of its affiliates in the Company or (ii) waive,
alter, modify or amend in any respect any obligations of the Company or any of its Subsidiaries, or any rights of or benefits
to any Buyer or any of its affiliates or any other Person, in any agreement entered into prior to the date hereof between or
among the Company and/or any of its Subsidiaries and any Buyer or any of its affiliates, or any instruments any Buyer or any
of its affiliates has received from the Company and/or any of its Subsidiaries prior to the date hereof, and all such
agreements and instruments shall continue in full force and effect. Except as specifically set forth herein or therein,
neither the Company nor any Buyer makes any representation, warranty, covenant or undertaking with respect to such matters.
For clarification purposes, the Recitals are part of this Agreement. No provision of this Agreement may be amended other than
by an instrument in writing signed by the Company and each of the Buyers. No waiver shall be effective unless it is in
writing and signed by an authorized representative of the waiving party. No consideration shall be offered or paid to any
Person to amend or consent to a waiver or modification of any provision of any of the Transaction Documents unless the same
consideration also is offered to all of the parties to the Transaction Documents, all holders of Common Shares or all holders
of the Warrants (as the case may be). The Company has not, directly or indirectly, made any agreements with any Buyers
relating to the terms or conditions of the transactions contemplated by the Transaction Documents except as set forth in the
Transaction Documents. Without limiting the foregoing, the Company confirms that, except as set forth in this Agreement,
no Buyer has made any commitment or promise or has any other obligation to provide any financing to the Company, any
Subsidiary or otherwise. As a material inducement for each Buyer to enter into this Agreement, the Company expressly
acknowledges and agrees that (i) no due diligence or other investigation or inquiry conducted by a Buyer, any of its advisors
or any of its representatives shall affect such Buyer’s right to rely on, or shall modify or qualify in any manner or
be an exception to any of, the Company’s representations and warranties contained in this Agreement or any other
Transaction Document, (ii) nothing contained in the Registration Statement, the Prospectus or the Prospectus Supplement shall
affect such Buyer’s right to rely on, or shall modify or qualify in any manner or be an exception to any of, the
Company’s representations and warranties contained in this Agreement or any other Transaction Document and (iii) unless
a provision of this Agreement or any other Transaction Document is expressly preceded by the phrase “except as
disclosed in the SEC Documents,” nothing contained in any of the SEC Documents shall affect such Buyer’s right to
rely on, or shall modify or qualify in any manner or be an exception to any of, the Company’s representations and
warranties contained in this Agreement or any other Transaction Document.

 

    	30

    	 

    

 

(f)          Notices.
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must
be in writing and will be deemed to have been delivered: (i) upon receipt, if delivered personally; (ii) when sent, if sent by
facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party);
(iii) when sent, if sent by e-mail (provided that such sent e-mail is kept on file (whether electronically or otherwise) by the
sending party and the sending party does not receive an automatically generated message from the recipient’s e-mail server
that such e-mail could not be delivered to such recipient) and (iv) if sent by overnight courier service, one (1) Business Day
after deposit with an overnight courier service with next day delivery specified, in each case, properly addressed to the party
to receive the same. The addresses, facsimile numbers and e-mail addresses for such communications shall be:

 

If to the Company:

 

1902 Building C, King Long International
Mansion

9 Fulin Road

Beijing 100107 China

Facsimile: 0086 010 8494 5792

Attention: Liu Jia

E-mail address: info@recon.cn

 

With a copy (for informational
purposes only) to:

 

Ellenoff Grossman & Schole LLP

1345 Avenue of the Americas

New York, NY 10105

Facsimile:  (212) 370-7889

Attention: Barry Grossman

E-mail address: bigrossman@egsllp.com

 

If to the Transfer Agent:

 

Computershare

350 Indiana Street, Suite 750,

Golden, Colorado 80401

Facsimile: (303) 262-0610

Attention: Christine Abbey

E-mail address: essential.registry@computershare.com

 

If to a Buyer, to its address, facsimile
number and/or e-mail address set forth on the Schedule of Buyers, with copies to such Buyer’s representatives as set forth
on the Schedule of Buyers,

 

with a copy (for informational
purposes only) to:

 

Greenberg Traurig, LLP

77 W. Wacker Drive, Suite 3100

Chicago, Illinois 60601

Facsimile: (312) 456-8435

Attention: Peter H. Lieberman, Esq.

   Todd A. Mazur,
Esq.

E-mail address: liebermanp@gtlaw.com

     mazurt@gtlaw.com

  

    	31

    	 

    

 

or to such other address, facsimile number
or e-mail address and/or to the attention of such other Person as the recipient party has specified by written notice given to
each other party five (5) days prior to the effectiveness of such change, provided that Greenberg Traurig, LLP shall only be provided
copies of notices sent to Cranshire. Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver
or other communication, (B) mechanically or electronically generated by the sender’s facsimile machine containing the time,
date and recipient facsimile number or (C) provided by an overnight courier service shall be rebuttable evidence of personal service,
receipt by facsimile or receipt from an overnight courier service in accordance with clause (i), (ii) or (iv) above, respectively.
A copy of the e-mail transmission containing the time, date and recipient e-mail address shall be rebuttable evidence of receipt
by e-mail in accordance with clause (iii) above.

 

(g)          Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors
and assigns, including, as contemplated below, any assignee or transferee of any of the Securities. The Company shall not assign
this Agreement or any rights or obligations hereunder without the prior written consent of each of the Buyers (which may be granted
or withheld in each Buyer’s sole discretion), including, without limitation, by way of a Fundamental Transaction (as defined
in the Warrants) (unless the Company is in compliance with the applicable provisions governing Fundamental Transactions set forth
in the Warrants). A Buyer may assign some or all of its rights hereunder in connection with any assignment or transfer of any
of its Securities without the consent of the Company, in which event such assignee or transferee (as the case may be) shall be
deemed to be a Buyer hereunder with respect to such assigned rights.

 

(h)          No
Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, other than
the Indemnitees referred to in Section 8(k).

 

(i)          Survival.
The representations, warranties, agreements and covenants shall survive the Closing. Each Buyer shall be responsible only for
its own representations, warranties, agreements and covenants hereunder.

 

(j)          Further
Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall
execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request
in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated
hereby.

 

    	32

    	 

    

 

(k)          Indemnification.

 

(i)          In
consideration of each Buyer’s execution and delivery of the Transaction Documents and acquiring the Securities thereunder
and in addition to all of the Company’s other obligations under the Transaction Documents, the Company shall defend, protect,
indemnify and hold harmless each Buyer and each holder of any Securities and all of their stockholders, partners, members, officers,
directors, employees and direct or indirect investors and any of the foregoing Persons’ agents or other representatives (including,
without limitation, those retained in connection with the transactions contemplated by this Agreement) (collectively, the “Indemnitees”)
from and against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages,
and expenses in connection therewith (irrespective of whether any such Indemnitee is a party to the action for which indemnification
hereunder is sought), and including reasonable attorneys’ fees and disbursements (the “Indemnified Liabilities”),
incurred by any Indemnitee as a result of, or arising out of, or relating to (a) any misrepresentation or breach of any representation
or warranty made by the Company in any of the Transaction Documents, (b) any breach of any covenant, agreement or obligation of
the Company contained in any of the Transaction Documents or (c) any cause of action, suit, proceeding or claim brought or made
against such Indemnitee by a third party (including, without limitation, for these purposes a derivative action brought on behalf
of the Company or any Subsidiary) or which otherwise involves such Indemnitee that arises out of, relates to or results from (i)
the execution, delivery, performance or enforcement of any of the Transaction Documents, (ii) any transaction financed or to be
financed in whole or in part, directly or indirectly, with the proceeds of the issuance of the Securities, (iii) any disclosure
properly made by such Buyer pursuant to Section 4(i), or (iv) the status of such Buyer or holder of the Securities either as an
investor in the Company pursuant to the transactions contemplated by the Transaction Documents or as a party to this Agreement
(including, without limitation, as a party in interest or otherwise in any action or proceeding for injunctive or other equitable
relief). To the extent that the foregoing undertaking by the Company may be unenforceable for any reason, the Company shall make
the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities which is permissible under applicable
law.

 

    	33

    	 

    

 

(ii)         Promptly
after receipt by an Indemnitee under this Section 8(k) of notice of the commencement of any action or proceeding (including any
governmental action or proceeding) involving an Indemnified Liability, such Indemnitee shall, if a claim in respect thereof is
to be made against the Company under this Section 8(k), deliver to the Company a written notice of the commencement thereof, and
the Company shall have the right to participate in, and, to the extent the Company so desires, to assume control of the defense
thereof with counsel mutually satisfactory to the Company and the Indemnitee; provided, however, that an Indemnitee shall have
the right to retain its own counsel with the fees and expenses of such counsel to be paid by the Company if: (i) the Company has
agreed in writing to pay such fees and expenses; (ii) the Company shall have failed promptly to assume the defense of such Indemnified
Liability and to employ counsel reasonably satisfactory to such Indemnitee in any such Indemnified Liability; or (iii) the named
parties to any such Indemnified Liability (including any impleaded parties) include both such Indemnitee and the Company, and such
Indemnitee shall have been advised by counsel that a conflict of interest is likely to exist if the same counsel were to represent
such Indemnitee and the Company (in which case, if such Indemnitee notifies the Company in writing that it elects to employ separate
counsel at the expense of the Company, then the Company shall not have the right to assume the defense thereof and such counsel
shall be at the expense of the Company), provided further, that in the case of clause (iii) above the Company shall not be responsible
for the reasonable fees and expenses of more than one (1) separate legal counsel for such Indemnitee. The Indemnitee shall reasonably
cooperate with the Company in connection with any negotiation or defense of any such action or Indemnified Liability by the Company
and shall furnish to the Company all information reasonably available to the Indemnitee which relates to such action or Indemnified
Liability. The Company shall keep the Indemnitee reasonably apprised at all times as to the status of the defense or any settlement
negotiations with respect thereto. The Company shall not be liable for any settlement of any action, claim or proceeding effected
without its prior written consent, provided, however, that the Company shall not unreasonably withhold, delay or condition its
consent. The Company shall not, without the prior written consent of the Indemnitee, consent to entry of any judgment or enter
into any settlement or other compromise which does not include as an unconditional term thereof the giving by the claimant or plaintiff
to such Indemnitee of a release from all liability in respect to such Indemnified Liability or litigation, and such settlement
shall not include any admission as to fault on the part of the Indemnitee. Following indemnification as provided for hereunder,
the Company shall be subrogated to all rights of the Indemnitee with respect to all third parties, firms or corporations relating
to the matter for which indemnification has been made. The failure to deliver written notice to the Company within a reasonable
time of the commencement of any such action shall not relieve the Company of any liability to the Indemnitee under this Section
8(k), except to the extent that the Company is materially and adversely prejudiced in its ability to defend such action.

 

(iii)        The
indemnification required by this Section 8(k) shall be made by periodic payments of the amount thereof during the course of the
investigation or defense, as and when bills are received or Indemnified Liabilities are incurred.

 

(iv)        The
indemnity agreement contained herein shall be in addition to (A) any cause of action or similar right of the Indemnitee against
the Company or others, and (B) any liabilities the Company may be subject to pursuant to the law.

 

(l)          Construction.
The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and
no rules of strict construction will be applied against any party. No specific representation or warranty shall limit the generality
or applicability of a more general representation or warranty. Each and every reference to share prices, shares of Common Stock
and any other numbers in this Agreement that relate to the Common Stock shall be automatically adjusted for stock splits, stock
combinations and other similar transactions that occur with respect to the Common Stock after the date of this Agreement. It is
expressly understood and agreed that for all purposes of this Agreement, and without implication that the contrary would otherwise
be true, neither transactions nor purchases nor sales shall include the location and/or reservation
of borrowable shares of Common Stock. Unless expressly indicated otherwise, all section references are to sections of this
Agreement.

 

    	34

    	 

    

 

(m)          Remedies.
Each Buyer and each holder of any Securities shall have all rights and remedies set forth in the Transaction Documents and all
rights and remedies which such holders have been granted at any time under any other agreement or contract and all of the rights
which such holders have under any law. Any Person having any rights under any provision of this Agreement shall be entitled to
enforce such rights specifically (without posting a bond or other security), to recover damages by reason of any breach of any
provision of this Agreement and to exercise all other rights granted by law. Furthermore, the Company recognizes that in the event
that it fails to perform, observe, or discharge any or all of its obligations under the Transaction Documents, any remedy at law
may prove to be inadequate relief to the Buyers. The Company therefore agrees that the Buyers shall be entitled to seek specific
performance and/or temporary, preliminary and permanent injunctive or other equitable relief from any court of competent jurisdiction
in any such case without the necessity of proving actual damages and without posting a bond or other security. The remedies provided
in this Agreement and the other Transaction Documents shall be cumulative and in addition to all other remedies available under
this Agreement and the other Transaction Documents, at law or in equity (including, without limitation, a decree of specific performance
and/or other injunctive relief).

 

(n)          Withdrawal
Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of) the Transaction
Documents, whenever any Buyer exercises a right, election, demand or option under a Transaction Document and the Company does
not timely perform its related obligations within the periods therein provided, then such Buyer may rescind or withdraw, in its
sole discretion from time to time upon written notice to the Company, any relevant notice, demand or election in whole or in part
without prejudice to its future actions and rights.

 

(o)          Payment
Set Aside; Currency. To the extent that the Company makes a payment or payments to any Buyer hereunder or pursuant to any
of the other Transaction Documents or any of the Buyers enforce or exercise their rights hereunder or thereunder, and such payment
or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent
or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company,
a trustee, receiver or any other Person under any law (including, without limitation, any bankruptcy law, foreign, state or federal
law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally
intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such
enforcement or setoff had not occurred. Until none of the Warrants are outstanding, the Company shall not effect any stock combination,
reverse stock split or other similar transaction (or make any public announcement or disclosure with respect to any of the foregoing)
without the prior written consent of each of the Buyers (which may be granted or withheld in each Buyer’s sole discretion).
Unless otherwise expressly indicated, all dollar amounts referred to in this Agreement and the other Transaction Documents are
in United States Dollars (“U.S. Dollars”), and all amounts owing under this Agreement and all other Transaction
Documents shall be paid in U.S. Dollars. All amounts denominated in other currencies (if any) shall be converted into the U.S.
Dollar equivalent amount in accordance with the Exchange Rate on the date of calculation. “Exchange Rate”
means, in relation to any amount of currency to be converted into U.S. Dollars pursuant to this Agreement, the U.S. Dollar
exchange rate as published in the Wall Street Journal on the relevant date of calculation.

 

    	35

    	 

    

 

(p)          Independent
Nature of Buyers’ Obligations and Rights. The obligations of each Buyer under the Transaction Documents are several
and not joint with the obligations of any other Buyer, and no Buyer shall be responsible in any way for the performance of the
obligations of any other Buyer under any Transaction Document. Nothing contained herein or in any other Transaction Document,
and no action taken by any Buyer pursuant hereto or thereto, shall be deemed to constitute the Buyers as, and the Company acknowledges
that the Buyers do not so constitute, a partnership, an association, a joint venture or any other kind of group or entity, or
create a presumption that the Buyers are in any way acting in concert or as a group or entity with respect to such obligations
or the transactions contemplated by the Transaction Documents or any matters, and the Company acknowledges that the Buyers are
not acting in concert or as a group, and the Company shall not assert any such claim, with respect to such obligations or the
transactions contemplated by the Transaction Documents. The decision of each Buyer to purchase Securities pursuant to the Transaction
Documents has been made by such Buyer independently of any other Buyer. Each Buyer acknowledges that no other Buyer has acted
as agent for such Buyer in connection with such Buyer making its investment hereunder and that no other Buyer will be acting as
agent of such Buyer in connection with monitoring such Buyer’s investment in the Securities or enforcing its rights under
the Transaction Documents. The Company and each Buyer confirms that each Buyer has independently participated with the Company
in the negotiation of the transaction contemplated hereby with the advice of its own counsel and advisors. Each Buyer shall be
entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this Agreement
or out of any other Transaction Documents, and it shall not be necessary for any other Buyer to be joined as an additional party
in any proceeding for such purpose. The use of a single agreement to effectuate the purchase and sale of the Securities contemplated
hereby was solely in the control of the Company, not the action or decision of any Buyer, and was done solely for the convenience
of the Company and not because it was required or requested to do so by any Buyer. It is expressly understood and agreed that
each provision contained in this Agreement and in each other Transaction Document is between the Company and a Buyer, solely,
and not between the Company and the Buyers collectively and not between and among the Buyers.

 

(q)          Judgment
Currency.

 

(i)          If
for the purpose of obtaining or enforcing judgment against the Company in any court in any jurisdiction it becomes necessary to
convert into any other currency (such other currency being hereinafter in this Section 8(q) referred to as the “Judgment
Currency”) an amount due in U.S. Dollars under this Agreement or any other Transaction Document, the conversion shall
be made at the Exchange Rate prevailing on the Trading Day immediately preceding: (1) the date actual payment of the amount due,
in the case of any proceeding in the courts of Illinois or in the courts of any other jurisdiction that will give effect to such
conversion being made on such date or (2) the date on which the foreign court determines, in the case of any proceeding in the
courts of any other jurisdiction (the date as of which such conversion is made pursuant to this Section 8(q)(i) being hereinafter
referred to as the “Judgment Conversion Date”).

 

(ii)         If
in the case of any proceeding in the court of any jurisdiction referred to in Section 8(q)(i) above, there is a change in the Exchange
Rate prevailing between the Judgment Conversion Date and the date of actual payment of the amount due, the applicable party shall
pay such adjusted amount as may be necessary to ensure that the amount paid in the Judgment Currency, when converted at the Exchange
Rate prevailing on the date of payment, will produce the amount of U.S. Dollars which could have been purchased with the amount
of Judgment Currency stipulated in the judgment or judicial order at the Exchange Rate prevailing on the Judgment Conversion Date.

 

    	36

    	 

    

 

(iii)        Any
amount due from the Company under this provision shall be due as a separate debt and shall not be affected by judgment being obtained
for any other amounts due under or in respect of this Agreement or any other Transaction Document.

 

(r)          Taxes.

 

(i)          Without
limiting any other provision of this Agreement, any and all payments by the Company hereunder shall be made free and clear of and
without deduction for any and all present or future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities
with respect thereto (collectively referred to as “Taxes”) unless the Company is required to withhold or deduct
any amounts for, or on account of Taxes pursuant to any applicable law. If the Company shall be required to deduct any Taxes from
or in respect of any sum payable hereunder to any Buyer, (1) the sum payable shall be increased by the amount by which the sum
payable would otherwise have to be increased (the “make-whole amount”) to ensure that after making all required
deductions (including deductions applicable to the make-whole amount) such Buyer would receive an amount equal to the sum it would
have received had no such deductions been made, (2) the Company shall make such deductions and (3) the Company shall pay the full
amount withheld or deducted to the relevant governmental authority within the time required. Upon the request of the Company, such
Buyer shall provide the Company with such duly completed and executed forms or certificates prescribed by law as a basis for claiming
an exemption from, or a reduction of, any Taxes imposed on payments made hereunder.

 

(ii)         In
addition, the Company agrees to pay to the relevant governmental authority in accordance with applicable law any present or future
stamp or documentary taxes or any other excise or property taxes, charges or similar levies that arise from any payment made hereunder
or in connection with the execution, delivery, registration or performance of, or otherwise with respect to, this Agreement (“Other
Taxes”).

 

(iii)        The
Company shall deliver to each Buyer official receipts, if any, in respect of any Taxes and Other Taxes payable hereunder promptly
after payment of such Taxes and Other Taxes or other evidence of payment reasonably acceptable to each such Buyer.

 

(iv)        If
the Company fails to pay any amounts in accordance with this Section 8(r), the Company shall indemnify each Buyer within ten (10)
calendar days after written demand therefor, for the full amount of any Taxes or Other Taxes, plus any related interest or penalties,
that are paid by the applicable Buyer to the relevant governmental authority or other relevant governmental authority as a result
of such failure.

 

(v)         The
obligations of the Company under this Section 8(r) shall survive the termination of this Agreement and the payment of all amounts
payable hereunder.

 

[signature
pages follow]

 

    	37

    	 

    

 

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

 

	 	COMPANY:	 
	 	 	 	 	 
	 	RECON TECHNOLOGY, LTD.	 
	 	 	 
	 	By:	/s/ Yin Shen Ping	 
	 	 	Name:	Yin Shen Ping	 
	 	 	Title:  	CEO	 

 

    	 

    	 

    

 

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

 

	 	BUYER:	 
	 	 	 	 
	 	CRANSHIRE CAPITAL MASTER FUND, LTD.	 
	 	 	 	 
	 	By:	Cranshire Capital Advisors, LLC	 
	 	Its:	Investment Manager	 
	 	 	 	 
	 	 	/s/
    Keith Goodman	 
	 	By:	Keith Goodman	 
	 	Its:	Authorized Signatory	 

 

    	 

    	 

    

 

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

 

	 	BUYER:	 
	 	 	 	 
	 	EQUITEC SPECIALISTS, LLC	 
	 	 	 	 
	 	By:	Cranshire Capital Advisors, LLC	 
	 	Its:	Investment Manager	 
	 	 	 	 
	 	 	/s/ Keith Goodman	 
	 	By:	Keith Goodman	 
	 	Its:	Authorized Signatory	 

 

    	 

    	 

    

 

SCHEDULE OF BUYERS

 

	(1)	 	(2)	 	(3)	 	(4)	 	(5)	 	(6)
	 	 	 	 	 	 	 	 	 	 	 	 
	Buyer	 	Address, Facsimile Number

    and E-mail Address	 	Number of

    Common

    Shares	 	Number of

    Warrant

    Shares	 	Purchase Price	 	Legal Representative’s

    Address and Facsimile Number
	 	 	 	 	 	 	 	 	 	 	 	 
	Cranshire Capital Master Fund,
    Ltd.	 	c/o Cranshire Capital Advisors, LLC

    3100 Dundee Road, Suite 703

    Northbrook, Illinois 60062

    Attn:  Mitchell P. Kopin

    Facsimile: (847) 562-9031

    E-mail: notices@cranshirecapital.com	 	136,625	 	40,987	 	$	657,166.25 	 	Greenberg Traurig, LLP

    77 W. Wacker Drive, Suite 3100

    Chicago, Illinois 60601

    Attention:  Peter H. Lieberman

                       Todd A.
    Mazur

    Facsimile: (312) 456-8435

    E-Mail: liebermanp@gtlaw.com

                  mazurt@gtlaw.com
	 	 	 	 	 	 	 	 	 	 	 	 
	Equitec Specialists, LLC	 	c/o Cranshire Capital Advisors, LLC

    3100 Dundee Road, Suite 703

    Northbrook, Illinois 60062

    Attn:  Mitchell P. Kopin

    Facsimile: (847) 562-9031

    E-mail: notices@cranshirecapital.com	 	45,542	 	13,663	 	$	219,057.02	 	Greenberg Traurig, LLP

    77 W. Wacker Drive, Suite 3100

    Chicago, Illinois 60601

    Attention:  Peter H. Lieberman

                       Todd A.
    Mazur

    Facsimile: (312) 456-8435

    E-Mail: liebermanp@gtlaw.com

                  mazurt@gtlaw.com
	 	 	 	 	 	 	 	 	 	 	 	 
	Hudson Bay Master

 Fund, Ltd.	 	c/o Hudson Bay Capital Management LP

    777 Third Avenue, 30th Floor

    New York, New York 10017

    Attn: Nitish Gangwal

    Facsimile: (212) 571-1279

    E-mail: investments@hudsonbaycapital.com	 	182,167	 	54,650	 	$	876,223.27	 	Elected Not To Provide
	 	 	 	 	 	 	 	 	 	 	 	 
	Tenor Opportunity Master Fund,
    Ltd.	 	1180 Ave. of Americas, Ste. 1940

    New York, New York 10036

    Attn: Waqas Khatri

    Facsimile: (212) 918-5301

    E-mail: wkhatri@tenorcapital.com	 	182,166	 	54,650	 	$	876,218.46	 	Elected Not To ProvideSERVICE CENTER & INSTALLATION AGREEMENT

between

ECHO AUTOMOTIVE

and

DICKINSON FLEET SERVICES LLC

 

THIS SERVICE CENTER AGREEMENT, dated as of June 26, 2012, 2012
(this "Agreement"), is by and between ECHO Automotive, a corporation organized and existing under the laws of the State
of Arizona with its principal place of business at 2701 Enterprise Drive, Suite 122, Anderson, Indiana 46013 ("ECHO"),
and Dickinson Fleet Services LLC, a limited liability company organized and existing under the laws of the State of Delaware with
its principal place of business at 4709 West 96th Street, Indianapolis, Indiana 46268 ("Servicer").

 

Preliminary Statement

This Agreement governs the performance by Servicer of service,
inspection, installation and repairs of the ECHO Drive system developed by ECHO Automotive (ECHO Drive Kit), and the sale by Servicer
of related replacement parts and accessories, in the service area designated by ECHO from time to time (the “Service Area”).
Servicer’s current service coverage is described in Exhibit A. Replacement parts and accessories for ECHO Drive Kit will
hereinafter be referred to as "Products."

 

The parties hereto agree as follows:

Section 1. Appointment and Term

(a) ECHO hereby appoints Servicer as a servicer for ECHO Drive
kits in the Service Area. ECHO may, in its sole discretion, appoint additional servicers in the Service Area on a nonexclusive
basis.

(b) Servicer’s performance of service, inspection, installation
and repairs of ECHO Drive Kit and the sale of Products in the Service Area will commence with the launch of commercial distribution
of the ECHO Drive Kit, which will be advised to Servicer by ECHO.

(c) Unless earlier terminated pursuant to Section 9
hereof, this Agreement will remain in force and effect for the period commencing on the date of this Agreement and ending
December 31, 2016. Such term shall be automatically extended for successive one year terms unless either party provides
written notice to the other party not later than ninety days before the end of the then current term stating the notifying
party does not wish to extend the term of this Agreement, in which case the term of this Agreement will expire at the end of
the then current term.

 

Section 2. Capital, Facilities, Personnel and Training

(a) Servicer will maintain adequate working capital, offices
and service facilities which meet ECHO standards, including, but not limited to, fixed and mobile service capacity, vehicle and
parts storage areas, and emergency roadside assistance and accident management capability.

(b) Servicer will employ experienced clerical and sales personnel
and trained technicians for the service, inspection and repair of ECHO Drive Kit in the Service Area and will assure the active
participation of key individuals in the management of its service center operations.

 

    	 

    	 

    

 

(c) Servicer and ECHO will jointly develop an implementation
plan for service center locations to ensure effective alignment of service center locations with fleet customer operating geography
and anticipated growth of the ECHO vehicle fleet. ECHO will provide a centralized call center to support Servicer on service, parts
and warranty fulfillment matters. Servicer will assure service coverage for a minimum number of ECHO Drive Kit which may be adjusted
by reasonable notice to reflect anticipated service requirements. If requested by ECHO, Servicer will establish additional service
centers or subcontract for services in order to provide geographic coverage on a nationwide basis.

(d) Servicer will equip its technicians with all basic tools,
special tools, and equipment required to service and repair ECHO Drive Kit. In addition, Servicer must maintain an organized library
of ECHO Technical Service Publications, including, but not limited to, Service Manuals, Diagnostic Manuals, Technical Service
Bulletins, Recall Bulletins, and the applicable Labor Time Schedules for all Vehicle model years.

(e) ECHO will provide technical support to Servicer on Vehicle
specific service training and documentation. Servicer must participate in service training courses ECHO offers or organizes in
the Service Area or elsewhere. All technicians who work on ECHO Drive Kit must attend such ECHO technical training sessions as
deemed necessary by ECHO to maintain sufficient knowledge to competently perform service and installation on the ECHO Drive Kit.
Servicer must pay the direct and indirect costs associated with the training.

(f) Servicer will log all Vehicle information into
Servicer’s database when a Vehicle is initially serviced and will update this information each time such Vehicle is
serviced. ECHO will have online access to reports of the preventative maintenance history of each Vehicle serviced. ECHO will
also have access to Vehicle service records including date, mileage, and repair cost by operation code. Servicer will also
maintain capacity for its scheduling staff to advise Vehicle owners and operators of those services required before each
inspection based on ECHO’s predetermined service interval.

(g) Servicer will maintain insurance, including without limitation
general liability insurance and workers compensation coverage, in form, amount and with insurers acceptable to ECHO, and will to
provide proof of such coverage to ECHO upon request.

 

Section 3. Service Center Marketing

(a) Servicer will market its ECHO service center capacity in
a manner consistent with ECHO’s marketing strategy to promote the positive awareness and image of ECHO and the ECHO Drive
Kit.

(b) If ECHO appoints additional servicers in the Service Area,
Servicer will be the first servicer identified in any listings of servicers in ECHO’s website, brochures and other marketing
materials.

 

Section 4. Service Center Services

(a) Service, Repairs, Installation and Inspections. Servicer
will provide warranty and non-warranty service, repairs, installation and inspections to all owners or operators of ECHO Drive
Kit in the Service Area. Servicer will perform such service, repairs, installation and inspections at locations and facilities
staffed by trained technicians and equipped with service, repair and inspection tools and equipment required for the service, repair
and inspection of ECHO Drive Kit. Servicer will perform such services, repairs, installation and inspections in a prompt, efficient
and courteous manner. Servicer must use only genuine ECHO parts and accessories supplied under this Agreement for warranty and
non-warranty service and repair of ECHO Drive Kit.

 

    	 

    	 

    

 

(b) Warranty Work. Any service, repair or inspection
covered by an ECHO warranty will be performed in accordance with the policies and procedures set forth in ECHO's Warranty and
Policy Procedure Manual, and any revisions or amendments thereto, furnished by ECHO to Servicer, and in accordance with
bulletins and documents relating to warranty service which ECHO may from time to time furnish to Servicer, all of which are
incorporated herein by reference and form an integral part of this Agreement.

(c) Responsibility for Claims. Servicer will assume responsibility
for, and will assume, protect, defend and hold ECHO harmless from, all claims and lawsuits (including administrative proceedings)
arising out of or in connection with the performance of warranty or other service, including, but not limited to, claims resulting
from the negligence or willful acts or omissions of Servicer.

(d) Warranty Reimbursement. Servicer will be reimbursed for
all warranty service at the rates and time allowances established by ECHO from time to time. ECHO reserves the right to adopt from
time to time such programs and procedures as it deems advisable with respect to approval, verification and quality control of the
performance of warranty service and the preparation of warranty claims. In order to carry out the above, Servicer will grant to
ECHO reasonable access to its places of business to observe the performance and administration of such warranty service. Servicer
will maintain complete and accurate lists of the names and addresses of all purchasers of Products for purposes of notifying them
of all applicable service or recall campaigns.

(e) Non-Warranty Pricing. Servicer’s charges for service,
repairs, installation and inspections that are not covered by warranty will be fair and reasonable and in any event related labor
charges will not exceed, where applicable, those provided for in the Real Time Truck and Van Labor Time Guide. In addition to any
other legal requirements, Servicer will provide Vehicle owners or operators with a written estimate of the cost of all non-warranty
service, repairs and inspection and will obtain prior approval if actual cost exceeds the estimate by ten percent or more.

(f) Servicer Warranty. Servicer hereby warrants all
repairs against defects in workmanship for the lesser of ninety (90) days or fifteen thousand (15,000) miles from date of
completion of repair, whichever comes first. This warranty will cover the labor hours resulting from failures that are caused
solely as a result of the workmanship of Servicer employees. Warranty for parts will be limited to the warranty extended to
Servicer by the manufacturer of the failed part. Under circumstances where ECHO provides parts for the repair, and a part is
determined to be the cause of the failure, Servicer will have no liability for any cost of the repairs. All warranties under
this Agreement will be limited to the actual cost of the original repair. Warranty will not cover any additional losses, loss
of use, cost of rental units, or any other claims for loss.

 

Section 5. Claims, Books, Records and Reports

(a) Servicer will submit complete and accurate claims for
reimbursement of warranty and other services performed on ECHO Drive Kit on special forms provided or approved by ECHO.
Servicer will retain all parts that it replaces while performing warranty service for inspection by ECHO.

(b) Servicer will maintain throughout the term of this Agreement
and for at least two years thereafter complete and accurate books and records, separate from Servicer's other books and records,
covering all services performed pursuant to this Agreement, reimbursement claims submitted to ECHO, sales of Products, Servicer’s
warranty and other transactions contemplated by this Agreement.

 

    	 

    	 

    

 

(c) It is agreed and understood that representatives of ECHO
may inspect such books and records of Servicer at any time during business hours for purpose of verification and audit, and may
make copies of and abstracts from such books and records. All payments to Servicer are made subject to verification and possible
adjustment by audit.

(d) Servicer will submit to ECHO such periodic financial reports
and operating statements and the business management reports as ECHO may reasonably request from time to time.

 

Section 6. Supply of Products

(a) Inventory, Orders and Terms of Purchase. Servicer
will maintain an adequate and balanced inventory of Products for service of ECHO Drive Kit. Servicer will submit to ECHO, via
computerized communication equipment linked to ECHO's offices or such other method approved by ECHO, firm orders for
Products. All orders are subject to acceptance or rejection by ECHO in whole or part. ECHO will use commercially reasonable
efforts to fill accepted orders for Products. All accepted orders will be subject to delay or change occurring in
manufacture, shipment or delivery. The terms of purchase applicable to any purchase of Products by Servicer will be those set
forth in the related ECHO order forms and those set forth in this Agreement. In the event of discrepancy, the terms contained
in this Agreement will prevail, unless ECHO otherwise agrees in writing.

(b) Prices, Charges and Taxes. ECHO will notify Servicer from
time to time of the prices and charges (including, but not limited to, packing, handling and delivery charges) relating to Products
sold under this Agreement. Changes in such prices and charges will not become effective sooner than sixty (60) days after notice
to Servicer. ECHO reserves the right to change such prices and charges at any time, and will invoice Servicer at the prices and
charges in effect as of the date Products are shipped to Servicer. Servicer will bear all costs and expenses incurred by ECHO in
effecting the sale and delivery to Servicer of Products, including, but not limited to, collection charges, boxing, decking, transporting,
loading and unloading, demurrage, storage, cartage, lighterage, heavy lift, consular fees, and freight. Servicer also agrees to
pay sales, excise and other taxes (other than income taxes) due with respect to the sale, shipment, ownership or use of Products
sold to Servicer, whether or not such taxes are levied on ECHO.

(c) Payment. Servicer must pay ECHO for Products at the time
and on such terms as specified by ECHO from time to time (subject to ECHO’s obligation to provide Servicer at least sixty
(60) days’ notice prior to effectiveness of changes in prices and charges pursuant to Section 6(b)). ECHO may charge Servicer,
and Servicer will pay interest at the U.S. prime rate plus 2% on any late payments by Servicer.

(d) Delivery and Title. Products sold to Servicer under this
Agreement will be shipped for the account of Servicer by carriers selected by ECHO. Regardless of to whom Products are consigned,
how they are shipped or paid for, or where or when shipping documents are endorsed or delivered, the property, control, beneficial
ownership, risk of loss or damage and legal title in and to all Products sold by ECHO will pass to Servicer Ex Works at ECHO’s
shipment location (as such term is defined in Incoterms 2010 published by the International Chamber of Commerce). Notwithstanding
the foregoing, ECHO retains a purchase money security interest in all Products sold to Servicer to secure payment for Products
sold until payment in full for all Products has been received by ECHO. Servicer authorizes ECHO to file appropriate financing statements
to perfect such security interest.

 

    	 

    	 

    

 

(e) Claims Regarding Shipments of Products. Claims for
any alleged shortage, defect, damage or error in shipments of Products must be made by Servicer to ECHO in writing in
accordance with ECHO's written instructions within thirty (30) days after the bill of lading date. ECHO reserves the right to
disallow, in whole or in part, any claim which is submitted after such period or not adequately substantiated. Upon ECHO's
request, Servicer will submit for inspection by ECHO or its insurance agents any Products alleged to be damaged or
defective.

(f) Collection of Indebtedness. ECHO may apply
towards the payment of any amount due from Servicer to ECHO, or to any of its subsidiaries, associated or controlled
companies, any credit owing to Servicer, and ECHO at its option may collect any sums owing by Servicer to ECHO by drawing on
any credits or amount which may be owed to Servicer by ECHO or by any of said companies. All collection charges involved in
the drawing of such credits will be for the account of Servicer. In no event will Servicer have the right to retain any
properties or monies belonging to or owed to ECHO, or to set off against any amounts owing to ECHO, for whatever reason, any
amounts claimed to be owed by ECHO to Servicer.

(g) Warranty. No warranties express or implied, including
but not limited to any implied warranty of merchantability or fitness for a particular purpose, are made or will be deemed to have
been made by ECHO except the warranty by ECHO to Servicer set forth in the applicable ECHO or manufacturer's warranty policy manual,
bulletin or other publication in effect at the time ECHO sells the Products in question to Servicer.

 

Section 7. Use of ECHO Trade Name and Trademarks

(a) With respect to any trademarks, service marks, devices or
emblems, logos, trade dress or trade names owned or used by ECHO or any of its affiliated companies (hereinafter called "ECHO
Marks"), Servicer hereby expressly undertakes that it will not, and will not permit any other person or entity over whom it
exercises control, directly or indirectly:

(i) to commit any act or take any action at any time which would
in any way impair the rights of ECHO, or its affiliated companies, to ECHO Marks; or

(ii) to claim, acquire, register or attempt at any time to claim,
acquire or register any rights to ECHO Marks by virtue of this Agreement, or through Servicer's use of ECHO Marks; or

(iii) to use any ECHO Mark at any time as part of any company
name or commercial designation without the express prior written consent of ECHO, or its affiliated companies, whichever may be
appropriate; or

(iv) use any ECHO Mark at any time on any item, or on the packaging,
display or advertising of any item, without the express prior written consent of ECHO, or its affiliated companies, whichever may
be appropriate.

(b) Upon the written request of ECHO and upon the
termination or expiration of this Agreement, Servicer will cease using any ECHO Mark on any item, or in any commercial
designation, signs, stationery, advertising and the like, as well as any work, mark, symbol, design, emblem, name, trade
dress or logo which, in the sole opinion of ECHO, so nearly resembles any ECHO Mark as to lead to confusion or uncertainty or
to mislead the public.

 

    	 

    	 

    

 

Section 8. Relationship and Status of Servicer

(a) Servicer will service ECHO Drive Kit as an
independent business enterprise for its own account and at its own expense. Except for warranty reimbursement provided for in
Section 4(d), ECHO shall have no obligation or liability to pay or reimburse any costs or expenses of Servicer in connection
with this Agreement. Servicer shall have no authority to represent ECHO as agent or otherwise in the Service Area or
elsewhere or to do business in ECHO's name, nor to bind ECHO by any contract, representation, understanding, act or deed
concerning ECHO or any Products covered by this Agreement. Neither the making of this Agreement nor the performance of any
part of the provisions hereof shall be construed to constitute Servicer or any of its agents, representatives or employees as
an agent, representative or employee of ECHO for any purpose, nor shall this Agreement be deemed to establish a joint venture
or partnership.

(b) Servicer represents and warrants to ECHO that it possesses,
and will maintain during the term of this Agreement, all licenses, permits and other authorizations required on its part to act
as Servicer under this Agreement throughout the Service Area and, upon request, shall provide evidence to ECHO of Servicer’s
ongoing compliance with applicable legal and regulatory requirements.

(c) Servicer will be solely responsible for compliance with
any laws, decrees, regulations or orders affecting the agents, representatives, employees or workers of Servicer, and will hold
ECHO harmless from any claims whatsoever arising in connection therewith.

 

Section 9. Termination

(a) ECHO or Servicer may terminate this Agreement upon thirty
(30) days prior written notice to the other party if the other party fails to fully perform its obligations hereunder, and such
failure has not been fully cured within sixty (60) days following written notice to such party specifying the failure of performance.

(b) ECHO may terminate this Agreement with immediate effect
upon written notice to Servicer in the event of:

(i) any sale, transfer, assignment or relinquishment, whether
voluntary or involuntary, by operation of law or otherwise, of the direct or indirect controlling ownership interest in Servicer,
unless ECHO has approved such sale, transfer, assignment or relinquishment;

(ii) any attempt by Servicer to assign this Agreement or any
right or obligation hereunder without ECHO's express written consent; or

(ii) the substantial discontinuance of Servicer's service and
repair activities for ECHO Drive Kit.

(c) Notwithstanding the foregoing, ECHO may terminate this Agreement
at any time at its discretion and for its sole convenience, upon six (6) months’ prior written notice to Servicer.

(d) Notwithstanding any other provision in this Agreement
to the contrary, this Agreement will automatically terminate without notice if Servicer becomes insolvent and is unable to
pay its obligations when due, or shall make any assignment for the benefit of creditors, or shall become the subject of any
bankruptcy, insolvency or similar proceeding, whether voluntary or involuntary, or shall be adjudicated bankrupt or
insolvent, or if a receiver is appointed for any substantial portion of its business or property, or if Servicer is
dissolved.

(e) In the event of the expiration or termination of this Agreement,
neither of the parties hereto shall be liable to the other for loss of profits or damages of any kind whatsoever or for any kind
of severance benefits or compensation on account of or arising directly or indirectly from the expiration or termination of, or
refusal to extend or renew, this agreement, or for any expenditures, investments or commitments made by the other party. The expiration
or termination of this Agreement shall not, however, affect the right of either party to recover (i) damages sustained by reason
of the breach of this Agreement by the other party or (ii) any payments owing under the terms of this Agreement or under any invoice
or other instrument.

(f) The expiration and termination of this Agreement will operate
to cancel all unfilled orders for Products placed by Servicer. If, however, after expiration or termination of this Agreement,
ECHO should transact any business with Servicer relative to the servicing of ECHO Drive Kit or sale of Products therefor, such
transactions will be governed by the same terms and conditions as those set forth in this Agreement, insofar as pertinent, but
shall not be construed as a waiver of the expiration or termination or as a renewal of this Agreement.

 

    	 

    	 

    

 

Section 10. Force Majeure

(a) The failure or delay of either party in performing any
of its obligations under this Agreement will not be deemed a breach of this Agreement to the extent that such failure or delay
is directly due to any of the following circumstances: (i) any war, riot, insurrection or other civil commotion, (ii) any strike,
lockout or other labor dispute, (iii) any fire, flood or other act of God, (iv) any labor, material, transportation or utility
shortage or curtailment, or (v) any governmental order, decree or regulation, or (vi) any other similar circumstances beyond the
affected party's reasonable control that it could not avoid by exercising due care.

(b) The affected party must (i) promptly notify the other party
of the circumstances and their effect, (ii) consult with the other party concerning suitable interim arrangements and exercise
due diligence to eliminate or remedy the cause of failure or delay, and (iii) continue performance as soon as reasonably possible
after such cause of failure or delay is removed. Under no circumstances is any party excused from performing its obligations due
to adverse economic conditions or general financial or operational constraints. Under no circumstances will the occurrence of such
an event release either party from any payment obligations hereunder.

 

Section 11. Governing Law; Dispute Resolution

(a) This agreement is a contract made under, and shall be governed
by and construed in accordance with, the law of the State of Indiana applicable to contracts made and to be performed entirely
within such State and without giving effect to choice of law principles of such State.

(b) Any dispute, controversy or claim arising out of or relating
to this Agreement, or the breach, termination or invalidity thereof, that is not resolved amicably by the parties shall be finally
determined and settled by arbitration conducted by a sole arbitrator administered by the American Arbitration Association in accordance
with its Commercial Arbitration Rules. The arbitration shall be conducted in the English language in Indianapolis, Indiana. Each
party shall bear its own costs and expenses. Judgment upon the award made by the arbitrator may be entered by any court having
jurisdiction. Notwithstanding the foregoing, nothing in this Section 11(b) shall be construed to prevent either party from seeking
injunctive or other interim relief or remedies in any court or other tribunal as such party deems appropriate pending arbitration,
which shall not be deemed incompatible with the agreement to arbitrate or a waiver of the right to arbitrate.

 

Section 12. Assignment or Transfer Prohibited; Etc.

Neither this Agreement nor any of the rights or obligations
of Servicer hereunder may be assigned or transferred, in whole or in part, without the prior written consent of ECHO. Any purported
assignment or transfer by Servicer without compliance with the foregoing shall be void and ineffective. ECHO may assign this Agreement
or its rights hereunder or may delegate its performance hereunder, in whole or in part, to any affiliated company or to any successor
in interest or transferee of any portion of ECHO’s business relating to this Agreement.

 

    	 

    	 

    

 

Section 13. Notices.

Any notice required or permitted to be given hereunder by any
of the parties hereto shall be given in writing. Such notice shall be personally delivered or shall be sent to the address specified
below (a) by mail, (b) by commercial courier service, or (c) by electronic facsimile. Notices will be deemed effectively given
(x) in the case of notices given by electronic facsimile, on the day the notice is sent, and (y) in all other cases, on the date
of actual delivery. Any party hereto may change its address or facsimile number for notice purposes at any time and from time
to time by giving written notice of such change to the other party in the manner specified in this paragraph. Until so changed,
notices shall be sent (i) to ECHO, at 2701 Enterprise Drive, Suite 122, Anderson, Indiana 46013, Attention: Chief Executive Officer,
and (ii) to Servicer, at 4709 West 96th Street, Indianapolis, Indiana 46268, Attention: Bob Dickinson, Fax: (317) 875-7409.

 

Section 14. Entire Agreement, Etc.

(a) This Agreement sets forth the entire agreement and understanding
between the parties on the subject matter hereof, and merges all prior discussions, negotiations and agreements between them. Neither
of the parties shall be bound by any conditions, definitions, representations or warranties with respect to the subject matter
of this Agreement other than as expressly provided herein or as duly set forth subsequent to the date hereof in a writing signed
by a duly authorized representative of the party to be bound thereby.

(b) This Agreement may be executed in any number of counterparts,
all of which taken together shall constitute one and the same instrument and any of the parties hereto may execute this Agreement
by signing any such counterpart. The headings of the various subdivisions hereof are for the convenience of reference only and
shall in no way modify any of the terms or provisions hereof.

(c) In case any one or more of the rights or obligations under
this Agreement shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the
remaining rights and obligations shall not in any way be affected or impaired thereby, and such invalidity, illegality or unenforceability
in one jurisdiction shall not affect the validity, legality or enforceability of such rights and obligations under this Agreement
in any other jurisdiction.

 

Section 15. Amendments; Waivers

Any provision of this Agreement may be amended or waived if,
and only if, such amendment or waiver is in writing and signed, in the case of an amendment, by all of the parties (with the prior
written consent of the U.S. Department of Energy), or in the case of a waiver, by the party against whom the waiver is to be effective.
No failure or delay by any party in exercising any right, power or privilege under this Agreement, nor any course of dealing in
connection therewith, will operate as a waiver thereof nor will any single or partial exercise thereof preclude any other or further
exercise thereof or the exercise of any other right, power or privilege.

 

    	 

    	 

    

 

	ECHO AUTOMOTIVE	 
	 	 	 
	By:	 	 
	 	 	 
	Name:	 	 
	 	 	 
	Title:	 	 
	 	 	 
	DICKINSON FLEET SERVICES, LLC	 
	 	 	 
	By:	 	 
	 	 	 
	Name:	 	 
	 	 	 
	Title:	 	 

  

    	 

    	 

    

  

Exhibit A

 

	Servicer’s Current 	Pembroke Pines	Merrillville	Rochester
	Service Coverage	Ocala	Lafayette	Mankato
	State City	Daytona Beach	South Bend	St. Cloud
	Birmingham	Richmond Hill	Indiana	Burnsville
	Alabama 	Loganville	Fishers	Maple Grove
	Huntsville	Macon	Topeka	Vadnais Heights
	Montgomery	Ellenwood	Kansas Shawnee	Minnesota
	Arkansas Rogers	Austell	Wichita	Minnetonka
	Little Rock	Cumming	Louisville	Joplin
	San Diego	Suwanee	Kentucky 	St. Peters
	Concord	Georgia	Lexington	Fenton
	Irwindale	Acworth	Florence	Kansas City
	Milpitas	Cedar Falls	Middleton	Springfield
	Sacramento	Council Bluffs	Plymouth	Missouri
	Riverside	Dubuque	Chicopee	Columbia
	California	Cedar Rapids	Franklin	Mississippi 
	Anaheim	Davenport	Massachusets	Jackson
	Grand Junction	Iowa	North Andover	Jacksonville
	Littleton	Ankeny	Hagerstown	Cary
	Loveland	Chubbuck	Upper Marlboro	Greenville
	Wheat Ridge	Kimberly	Gaithersburg	Mooresville
	Colorado	Burlington	Baltimore	Fayetteville
	Colorado Springs	Idaho	Maryland	Greensboro
	Connecticut 	Meridian	Baltimore	Morrisville
	Danbury	Rochelle	Maine Westbrook	North
	Rocky Hill	Collinsville	Marysville	Carolina
	Delaware 	Lake Forest	Oscoda	Charlotte
	Harrington	Park Ridge	Wixom	Nebraska Omaha
	Newport	Hickory Hills	Shelfy Township	Lincoln
	Ft. Walton Beach	Plainfield	Taylor	New
	Lake Wales	Illinois	Michigan	Hamshire 
	Pensacola	Rockford	Rochester Hills	Londonderry
	Orlando	15	Flint	16
	Hudson	Carpentersville	Ypsilanti	Thorofare
	Plant City	Glenarm	Wixom	Randolph
	Melbourne	Peoria	Waterford	Upper Saddle
	Ft. Myers	Champaign	Macomb	River
	Jacksonville	Crestwood	Township	South Plainfield
	Florida	West Chicago	Grand Haven	New Jersey
	Orlando	Chesterfield	Portage	Farmingdale
	Oldsmar	Indianapolis	Grandville	New Mexico 
	Fruitland Park	Evansville	Williamsburg	Albuquerque
	Sarasota	Ft. Wayne	Lansing	Endicott
	Vero Beach	Fishers	Freeland	Rochester

 

 

    	 

    	 

    

  

	Syracuse	Oregon Lake 	Murfreesboro	Charlottesville
	Orchard Park	Oswego	Alcoa	Sterling
	Yaphank	Pennsylvania 	Memphis	Virginia Beach
	Albany	York	Tennessee	LortonSalem
	New York	Johnstown	Nashville	Virginia
	Marlboro	Pittsburgh	Abilene	Richmond
	Brillant	Erie	Tyler	Vermont South
	Hilliard	Clarion	Lewisville	Burlington
	Lima	Allison Park	Corpus Christie	Pasco
	Lexington	Lamar	League City	Redmond
	Elyria	Allentown	Amarillo	Puyallup
	Youngstown	Warminster	El Paso	Washington
	W. Carrollton	Lititz	Odessa	Spokane
	Groveport	Harrisburg	Plano	Stevens Point
	Springboro	Malvern	Dallas	Waukesha
	Vandalia	Wilkes-Barre	Richland Hills	Madison
	Fairfield	Rhode Island 	Texas	Wisconsin
	Mentor	Warwick	Houston	Appleton
	Walton Hills	Irmo	17	West
	Brunswick	North Charleston	Houston	Virginia Scott 
	Lewis Center	North Augusta	Sugarland	Depot
	Ohio	Greenville	Grand Prairie	Wyoming 
	Canton	South	San Antonio	Cheyenne
	Enid	Carolina	Round Rock	 
	Stillwater	Myrtle Beach	Utah Clearfield	 
	Lawton	South	Salt Lake City	 
	Bartlesville	Dakota Sioux 	Fredricksburg	 
	Oklahoma City	Falls	Vienna	 
	Oklahoma	Kingsport	Sterling	 
	Broken Arrow	Chattanooga	Newport News

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00224-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00224-of-00352.parquet"}]]