Document:

SECURITIES PURCHASE AGREEMENT

 

This Securities Purchase
Agreement (this “Agreement”) is dated as of April ___, 2013, between Stevia First Corp., a Nevada corporation
(the “Company”), and each purchaser identified on the signature pages hereto (each, including its successors
and assigns, a “Purchaser” and collectively, the “Purchasers”).

 

WHEREAS, subject to
the terms and conditions set forth in this Agreement and pursuant to an effective registration statement under the Securities Act
of 1933, as amended (the “Securities Act”), the Company desires to issue and sell to each Purchaser, and each Purchaser,
severally and not jointly, desires to purchase from the Company, securities of the Company as more fully described in this Agreement.

 

NOW, THEREFORE, IN
CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and
adequacy of which are hereby acknowledged, the Company and each Purchaser agree as follows:

 

ARTICLE I.

DEFINITIONS

 

1.1Definitions.
In addition to the terms defined elsewhere in this Agreement, the following terms have the meanings set forth in this Section 1.1:

 

“Acquiring
Person” shall have the meaning ascribed to such term in Section 4.7.

 

“Action”
shall have the meaning ascribed to such term in Section 3.1(j).

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.

 

“Board
of Directors”means the board of directors of the Company.

 

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or
any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to
close.

 

“Closing”
means the closing of the purchase and sale of the Securities pursuant to Section 2.1.

 

“Closing
Date” means the Trading Day on which all of the Transaction Documents have been executed and delivered by the applicable
parties thereto, and all conditions precedent to (i) the Purchasers’ obligations to pay the Subscription Amount and (ii)
the Company’s obligations to deliver the Securities, in each case, have been satisfied or waived, but in no event later than
the third Trading Day following the date hereof.

 

    	 

    	 

    

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Common
Stock” means the common stock of the Company, par value $0.001 per share, and any other class of securities into which
such securities may hereafter be reclassified or changed.

 

“Common
Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to
acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument
that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common
Stock.

 

“Company
Counsel” means Morrison & Foerster LLP, with offices located at 12531 High Bluff Drive, San Diego, CA 92130.

 

“Disclosure
Schedules” shall have the meaning ascribed to such term in Section 3.1.

 

“EGS”
means Ellenoff Grossman & Schole LLP, with offices located at 150 East 42nd Street, New York, New York 10017.

 

“Evaluation
Date” shall have the meaning ascribed to such term in Section 3.1(r).

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Exempt
Issuance” means the issuance of (a) shares of Common Stock or options to employees, advisors, independent contractors,
officers or directors of the Company pursuant to any stock or option plan duly adopted for such purpose, by a majority of the non-employee
members of the Board of Directors or a majority of the members of a committee of non-employee directors established for such purpose,
(b) securities upon the exercise or exchange of or conversion of any Securities issued hereunder and/or other securities exercisable
or exchangeable for or convertible into shares of Common Stock issued and outstanding on the date of this Agreement, provided that
such securities have not been amended since the date of this Agreement to increase the number of such securities or to decrease
the exercise price, exchange price or conversion price of such securities and (c) securities issued pursuant to acquisitions, asset
purchases, licenses, collaboration agreements or strategic transactions approved by a majority of the disinterested directors of
the Company, provided that any such issuance shall only be to a Person (or to the equityholders of a Person) which is, itself or
through its subsidiaries, an operating company or an owner of an asset and shall provide to the Company additional benefits in
addition to the investment of funds, but shall not include a transaction in which the Company is issuing securities primarily for
the purpose of raising capital or to an entity whose primary business is investing in securities.

 

“FCPA”
means the Foreign Corrupt Practices Act of 1977, as amended.

 

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“GAAP”
shall have the meaning ascribed to such term in Section 3.1(h).

 

“Indebtedness”
shall have the meaning ascribed to such term in Section 3.1(aa).

 

“Intellectual
Property Rights” shall have the meaning ascribed to such term in Section 3.1(o).

 

“Liens”
means a material lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

“Material
Adverse Effect” shall have the meaning assigned to such term in Section 3.1(b).

 

“Material
Permits” shall have the meaning ascribed to such term in Section 3.1(m).

 

“Maximum
Rate” shall have the meaning ascribed to such term in Section 5.17.

 

“Participation
Maximum” shall have the meaning ascribed to such term in Section 4.12(a).

 

“Per
Share Purchase Price” equals $_______,
subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations and other similar transactions
of the Common Stock that occur after the date of this Agreement.

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Pre-Notice”
shall have the meaning ascribed to such term in Section 4.12(b).

 

“Pro
Rata Portion” shall have the meaning ascribed to such term in Section 4.12(e).

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial
proceeding, such as a deposition), whether commenced or threatened.

 

“Prospectus”
means the final prospectus filed for the Registration Statement.

“Prospectus
Supplement” means the supplement to the Prospectus complying with Rule 424(b) of the Securities Act that is filed with
the Commission and delivered by the Company to each Purchaser at the Closing.

 

“Purchaser
Party” shall have the meaning ascribed to such term in Section 4.10.

 

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“Registration
Statement” means the effective registration statement filed with Commission file No. 333-_______ which registers the
sale of the Shares, the Warrants and the Warrant Shares to the Purchasers.

 

“Required
Approvals” shall have the meaning ascribed to such term in Section 3.1(e).

“Required
Minimum” means, as of any date, the maximum aggregate number of shares of Common Stock then issued or potentially issuable
in the future pursuant to the Transaction Documents, including any Underlying Shares issuable upon exercise in full of all Warrants,
ignoring any conversion or exercise limits set forth therein, and assuming that the exercise price is at all times on and after
the date of determination 75% of the then exercise price on the Trading Day immediately prior to the date of determination.

 

“Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

“Rule
424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

“SEC
Reports” shall have the meaning ascribed to such term in Section 3.1(h).

 

“Securities”
means the Shares, the Warrants, the Warrant Shares and the Underlying Shares.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Short
Sales” means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall
not be deemed to include the location and/or reservation of borrowable shares of Common Stock).

 

“Subscription
Amount” shall mean, as to each Purchaser, the aggregate amount to be paid for the Shares and Warrants purchased hereunder
as specified below such Purchaser’s name on the signature page of this Agreement and next to the heading “Subscription
Amount,” in United States dollars and in immediately available funds.

 

“Subsequent
Financing” shall have the meaning ascribed to such term in Section 4.12(a).

 

“Subsequent
Financing Notice” shall have the meaning ascribed to such term in Section 4.12(b).

 

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“Subsidiary”
means any subsidiary of the Company as set forth on Schedule 3.1(a) and shall, where applicable, also include any direct
or indirect subsidiary of the Company formed or acquired after the date hereof.

 

“Trading
Day” means a day on which the principal Trading Market is open for trading.

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New
York Stock Exchange or the OTC Bulletin Board (or any successors to any of the foregoing).

 

“Transaction
Documents” means this Agreement, the Warrants, all exhibits and schedules thereto and hereto and any other documents
or agreements executed in connection with the transactions contemplated hereunder.

 

“Transfer
Agent” means _____________________, the current transfer agent of the Company, with a mailing address of ___________________
and a facsimile number of _______________, and any successor transfer agent of the Company.

 

“Underlying
Shares” means the Shares and the shares of Common Stock issued and issuable upon exercise of the Warrants.

 

“Variable
Rate Transaction” shall have the meaning ascribed to such term in Section 4.13(b).

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed
or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding
date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading
Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if the OTC Bulletin Board is not a Trading Market,
the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the OTC Bulletin Board,
(c) if the Common Stock is not then listed or quoted for trading on the OTC Bulletin Board and if prices for the Common Stock are
then reported in the “Pink Sheets” published by OTC Markets Group, Inc. (or a similar organization or agency succeeding
to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other
cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the
Purchasers of a majority in interest of the Securities then outstanding and reasonably acceptable to the Company, the fees and
expenses of which shall be paid by the Company.

 

“Warrants”
means, collectively, the Common Stock purchase warrants delivered to the Purchasers at the Closing in accordance with Section 2.2(a)
hereof, which Warrants shall be exercisable immediately and have a term of exercise equal to five years, in the form of Exhibit
C attached hereto.

 

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“Warrant
Shares” means the shares of Common Stock issuable upon exercise of the Warrants.

 

ARTICLE II.

PURCHASE AND SALE

 

2.1Closing.
On the Closing Date, upon the terms and subject to the conditions set forth herein, substantially concurrent with the execution
and delivery of this Agreement by the parties hereto, the Company agrees to sell, and the Purchasers, severally and not jointly,
agree to purchase, up to an aggregate of $___,000,000 of Shares and Warrants. Each Purchaser shall deliver to the Company, via
wire transfer or a certified check, immediately available funds equal to such Purchaser’s Subscription Amount as set forth
on the signature page hereto executed by such Purchaser and the Company shall deliver to each Purchaser its respective Shares and
a Warrant as determined pursuant to Section 2.2(a), and the Company and each Purchaser shall deliver the other items set forth
in Section 2.2 deliverable at the Closing. Upon satisfaction of the covenants and conditions set forth in Sections 2.2 and 2.3,
the Closing shall occur at the offices of EGS or such other location as the parties shall mutually agree.

 

2.2
Deliveries.

 

(a)On
or prior to the Closing Date, the Company shall deliver or cause to be delivered to each Purchaser the following:

 

(i)
this Agreement duly executed by the Company;

 

(ii)a legal
opinion of Company Counsel, substantially in the form of Exhibit B attached hereto;

 

(iii)a
copy of the irrevocable instructions to the Transfer Agent instructing the Transfer Agent to deliver on an expedited basis via
The Depository Trust Company Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant
in such system, otherwise by physical delivery, Shares equal to such Purchaser’s Subscription Amount divided by the Per Share
Purchase Price, registered in the name of such Purchaser;

 

(iv)a
Warrant registered in the name of such Purchaser to purchase up to a number of shares of Common Stock equal to ____% of such Purchaser’s
Shares, with an exercise price equal to $____, subject to adjustment therein (such Warrant
certificate may be delivered within three Trading Days of the Closing Date); and

 

(v)the
Prospectus and Prospectus Supplement (which may be delivered in accordance with Rule 172 under the Securities
Act).

 

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(b)On
or prior to the Closing Date, each Purchaser shall deliver or cause to be delivered to the Company the following:

 

(i)
this Agreement duly executed by such Purchaser; and

 

(ii)such
Purchaser’s Subscription Amount by wire transfer to the account specified in writing by the Company.

 

2.3
Closing Conditions.

 

(a)The
obligations of the Company hereunder in connection with the Closing are subject to the following conditions being met:

 

(i)the
accuracy in all material respects on the Closing Date of the representations and warranties of the Purchasers contained herein
(unless as of a specific date therein in which case they shall be accurate as of such date);

 

(ii)all
obligations, covenants and agreements of each Purchaser required to be performed at or prior to the Closing Date shall have been
performed; and

 

(iii)the
delivery by each Purchaser of the items set forth in Section 2.2(b) of this Agreement.

 

(b)The
respective obligations of the Purchasers hereunder in connection with the Closing are subject to the following conditions being
met:

 

(i)the
accuracy in all material respects when made and on the Closing Date of the representations and warranties of the Company contained
herein (unless as of a specific date therein);

 

(ii)all
obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date shall have been performed;

 

(iii)the
delivery by the Company of the items set forth in Section 2.2(a) of this Agreement;

 

(iv)there
shall have been no Material Adverse Effect with respect to the Company since the date hereof; and

 

(v)from
the date hereof to the Closing Date, trading in the Common Stock shall not have been suspended by the Commission or the Company’s
principal Trading Market and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg L.P.
shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are reported
by such service, or on any Trading Market, nor shall a banking moratorium have been declared either by the United States or New
York State authorities nor shall there have occurred any material outbreak or escalation of hostilities or other national or international
calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in each case, in the
reasonable judgment of such Purchaser, makes it impracticable or inadvisable to purchase the Securities at the Closing.

 

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ARTICLE III.

REPRESENTATIONS AND WARRANTIES

 

3.1Representations
and Warranties of the Company. Except as set forth in the Disclosure Schedules, which Disclosure Schedules shall be deemed
a part hereof and shall qualify any representation or otherwise made herein to the extent of the disclosure contained in the corresponding
section of the Disclosure Schedules, the Company hereby makes the following representations and warranties to each Purchaser:

 

(a)Subsidiaries.
All of the direct and indirect subsidiaries of the Company are set forth on Schedule 3.1(a). The Company owns, directly
or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any Liens, and all of the
issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free
of preemptive and similar rights to subscribe for or purchase securities. If the Company has no subsidiaries, all other references
to the Subsidiaries or any of them in the Transaction Documents shall be disregarded.

 

(b)Organization
and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly
existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power
and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company
nor any Subsidiary is in violation nor default of any of the provisions of its respective certificate or articles of incorporation,
bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business
and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted
or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as
the case may be, could not have or reasonably be expected to result in: (i) a material adverse effect on the legality, validity
or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business, prospects
or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse effect
on the Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction Document
(any of (i), (ii) or (iii), a “Material Adverse Effect”) and no Proceeding has been instituted in any such jurisdiction
revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

 

 

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(c)Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated
by this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations hereunder and thereunder.
The execution and delivery of this Agreement and each of the other Transaction Documents by the Company and the consummation by
it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Company
and no further action is required by the Company, the Board of Directors or the Company’s stockholders in connection herewith
or therewith other than in connection with the Required Approvals. This Agreement and each other Transaction Document to which
it is a party has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the
terms hereof and thereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance
with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium
and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating
to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification
and contribution provisions may be limited by applicable law.

 

(d)No
Conflicts. The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents to
which it is a party, the issuance and sale of the Securities and the consummation by it of the transactions contemplated hereby
and thereby do not and will not: (i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate
or articles of incorporation, bylaws or other organizational or charter documents, (ii) conflict with, or constitute a default
(or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any
of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment, acceleration
or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing
a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which
any property or asset of the Company or any Subsidiary is bound or affected, or (iii) subject to the Required Approvals, conflict
with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court
or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations),
or by which any property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii)
and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.

 

(e)Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other
Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than: (i)
the filings required pursuant to Section 4.6 of this Agreement, (ii) the notice and/or application(s) to each applicable Trading
Market for the issuance and sale of the Securities and the listing of the Shares and Warrant Shares for trading thereon in the
time and manner required thereby and (iii) the filing of the Prospectus Supplement with the Commission and such filings as are
required to be made under applicable state securities laws (collectively, the “Required Approvals”).

 

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(f)Issuance
of the Securities; Registration. The Securities are duly authorized and, when issued and paid for in accordance with the applicable
Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the
Company. The Warrant Shares, when issued in accordance with the terms of the Warrants, will be validly issued, fully paid and nonassessable,
free and clear of all Liens imposed by the Company. The Company has reserved from its duly authorized capital stock the maximum
number of shares of Common Stock issuable pursuant to this Agreement and the Warrants. The Company has prepared and filed the Registration
Statement in conformity with the requirements of the Securities Act, which became effective on _____________ (the “Effective
Date”), including the Prospectus, and such amendments and supplements thereto as may have been required to the date of
this Agreement. The Registration Statement is effective under the Securities Act and no stop order preventing or suspending the
effectiveness of the Registration Statement or suspending or preventing the use of the Prospectus has been issued by the Commission
and no proceedings for that purpose have been instituted or, to the knowledge of the Company, are threatened by the Commission.
The Company, if required by the rules and regulations of the Commission, shall file the Prospectus with the Commission pursuant
to Rule 424(b). At the time the Registration Statement and any amendments thereto became effective, at the date of this Agreement
and at the Closing Date, the Registration Statement and any amendments thereto conformed and will conform in all material respects
to the requirements of the Securities 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; and the Prospectus
and any amendments or supplements thereto, at time the Prospectus or any amendment or supplement thereto was issued and at the
Closing Date, conformed and will conform in all material respects to the requirements of the Securities Act and did not and will
not contain an 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.

 

(g)Capitalization.
The capitalization of the Company is as set forth on Schedule 3.1(g), which Schedule 3.1(g) shall also include the
number of shares of Common Stock owned beneficially, and of record, by Affiliates of the Company as of the date hereof. The Company
has not issued any capital stock since its most recently filed current report or periodic report under the Exchange Act, other
than pursuant to the exercise of employee stock options under the Company’s stock option plans, the issuance of shares of
Common Stock to employees pursuant to the Company’s employee stock purchase plans and pursuant to the conversion and/or exercise
of Common Stock Equivalents outstanding as of the date of the most recently filed current report or periodic report under the Exchange
Act. Except as set forth in the Prospectus, no Person has any right of first refusal, preemptive right, right of participation,
or any similar right to participate in the transactions contemplated by the Transaction Documents. Except as a result of the purchase
and sale of the Securities, there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any
character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or
giving any Person any right to subscribe for or acquire any shares of Common Stock, or contracts, commitments, understandings or
arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock or Common
Stock Equivalents. The issuance and sale of the Securities will not obligate the Company to issue shares of Common Stock or other
securities to any Person (other than the Purchasers) and will not result in a right of any holder of Company securities to adjust
the exercise, conversion, exchange or reset price under any of such securities. All of the outstanding shares of capital stock
of the Company are duly authorized, validly issued, fully paid and nonassessable, have been issued in compliance with all federal
and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights
to subscribe for or purchase securities. No further approval or authorization of any stockholder, the Board of Directors or others
is required for the issuance and sale of the Securities. There are no stockholders agreements, voting agreements or other similar
agreements with respect to the Company’s capital stock to which the Company is a party or, to the knowledge of the Company,
between or among any of the Company’s stockholders.

 

 

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(h)SEC
Reports; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents required
to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof,
for the one year preceding the date hereof (or such shorter period as the Company was required by law or regulation to file such
material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, together with
the Prospectus and Prospectus Supplement being collectively referred to herein as the “SEC Reports”) on a timely
basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any
such extension. As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities
Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, 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. The financial statements of the Company included in
the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission
with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with United
States generally accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”),
except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements
may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company
and its consolidated Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods
then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.

 

(i)Material
Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial statements included
within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the date hereof: (i) there has
been no event, occurrence or development that has had or that could reasonably be expected to result in a Material Adverse Effect,
(ii) the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses
incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the
Company’s financial statements pursuant to GAAP or disclosed in filings made with the Commission, (iii) the Company has not
altered its method of accounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property
to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock and (v)
the Company has not issued any equity securities to any officer, director or Affiliate, except pursuant to existing Company stock
option plans. The Company does not have pending before the Commission any request for confidential treatment of information. Except
for the issuance of the Securities contemplated by this Agreement or as set forth on Schedule 3.1(i), no event, liability,
fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to
the Company or its Subsidiaries or their respective businesses, properties, operations, assets or financial condition, that would
be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made
that has not been publicly disclosed at least 1 Trading Day prior to the date that this representation is made.

 

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(j)Litigation.
There is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the Company,
threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator,
governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”)
which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the Securities
or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect. Neither
the Company nor any Subsidiary, nor any director or officer thereof, is or has been the subject of any Action involving a claim
of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty. There has not been,
and to the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission involving the Company
or any current or former director or officer of the Company. The Commission has not issued any stop order or other order suspending
the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the Securities
Act.

 

(k)Labor
Relations. No labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of
the Company, which could reasonably be expected to result in a Material Adverse Effect. None of the Company’s or its Subsidiaries’
employees is a member of a union that relates to such employee’s relationship with the Company or such Subsidiary, and neither
the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the Company and its Subsidiaries believe
that their relationships with their employees are good. To the knowledge of the Company, no executive officer of the Company or
any Subsidiary, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure
or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive covenant
in favor of any third party, and the continued employment of each such executive officer 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 U.S. federal, state, local and foreign laws and regulations relating to employment and employment practices, terms and
conditions of employment and wages and hours, except where the failure to be in compliance could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

 

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(l)Compliance.
Neither the Company nor any Subsidiary: (i) is in default under or in violation of (and no event has occurred that has not been
waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the
Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture,
loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is
bound (whether or not such default or violation has been waived), (ii) is in violation of any judgment, decree or order of any
court, arbitrator or other governmental authority or (iii) is or has been in violation of any statute, rule, ordinance or regulation
of any governmental authority, including without limitation all foreign, federal, state and local laws relating to taxes, environmental
protection, occupational health and safety, product quality and safety and employment and labor matters, except in each case as
could not have or reasonably be expected to result in a Material Adverse Effect.

 

(m)Regulatory
Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Reports,
except where the failure to possess such permits could not reasonably be expected to result in a Material Adverse Effect (“Material
Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation
or modification of any Material Permit.

 

(n)Title
to Assets. The Company and the Subsidiaries have good and marketable title in fee simple to all real property owned by them
and good and marketable title in all personal property owned by them that is material to the business of the Company and the Subsidiaries,
in each case free and clear of all Liens, except for (i) Liens as do not materially affect the value of such property and do not
materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries and (ii) Liens
for the payment of federal, state or other taxes, for which appropriate reserves have been made therefor in accordance with GAAP
and, the payment of which is neither delinquent nor subject to penalties. Any real property and facilities held under lease by
the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases with which the Company and the
Subsidiaries are in compliance.

 

(o)Intellectual
Property. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark
applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights
and similar rights as described in the SEC Reports as necessary or required for use in connection with their respective businesses
and which the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual Property Rights”).
None of, and neither the Company nor any Subsidiary has received a notice (written or otherwise) that any of, the Intellectual
Property Rights has expired, terminated or been abandoned, or is expected to expire or terminate or be abandoned, within two (2)
years from the date of this Agreement. Neither the Company nor any Subsidiary has received, since the date of the latest audited
financial statements included within the SEC Reports, a written notice of a claim or otherwise has any knowledge that the Intellectual
Property Rights violate or infringe upon the rights of any Person, except as could not have or reasonably be expected to not have
a Material Adverse Effect. To the knowledge of the Company, all such Intellectual Property Rights are enforceable and there is
no existing infringement by another Person of any of the Intellectual Property Rights. The Company and its Subsidiaries have taken
reasonable security measures to protect the secrecy, confidentiality and value of all of their intellectual properties, except
where failure to do so could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

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(p)Insurance.
The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and
in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged, including,
but not limited to, directors and officers insurance coverage at least equal to the aggregate Subscription Amount. Neither the
Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when
such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without
a significant increase in cost.

 

(q)Transactions
With Affiliates and Employees. Except as set forth in the SEC Reports, none of the officers or directors of the Company or
any Subsidiary and, to the knowledge of the Company, none of the employees of the Company or any Subsidiary is presently a party
to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including
any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or
personal property to or from, providing for the borrowing of money from or lending of money to or otherwise requiring payments
to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director,
or any such employee has a substantial interest or is an officer, director, trustee, stockholder, member or partner, in each case
in excess of $120,000 other than for: (i) payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses
incurred on behalf of the Company and (iii) other employee benefits, including stock option agreements under any stock option plan
of the Company.

 

(r)Sarbanes-Oxley;
Internal Accounting Controls. The Company and the Subsidiaries are in compliance with any and all applicable requirements of
the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and all applicable rules and regulations promulgated
by the Commission thereunder that are effective as of the date hereof and as of the Closing Date. The Company’s certifying
officers have evaluated the effectiveness of the disclosure controls and procedures of the Company and the Subsidiaries as of the
end of the period covered by the most recently filed periodic report under the Exchange Act (such date, the “Evaluation
Date”). The Company presented in its most recently filed periodic report under the Exchange Act the conclusions of the
certifying officers about the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation
Date. Since the Evaluation Date, there have been no changes in the internal control over financial reporting (as such term is defined
in the Exchange Act) of the Company and its Subsidiaries that have adversely materially affected, or is reasonably likely to adversely
materially affect, the internal control over financial reporting of the Company and its Subsidiaries.

 

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(s)Certain
Fees. Except for those fees that are payable to Dawson James Securities, Inc. in connection with the transactions contemplated
by this Agreement, no brokerage or finder’s fees or commissions are or will be payable by the Company or any Subsidiary to
any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the
transactions contemplated by the Transaction Documents. The Purchasers shall have no obligation with respect to any fees or with
respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section that may be due in
connection with the transactions contemplated by the Transaction Documents.

 

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

 

(u)Registration
Rights. Other than each of the Purchasers, no Person has any right to cause the Company to effect the registration under the
Securities Act of any securities of the Company or any Subsidiary.

 

(v)Listing
and Maintenance Requirements. The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the
Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration
of the Common Stock under the Exchange Act nor has the Company received any notification that the Commission is contemplating terminating
such registration. The Company has not, in the 12 months preceding the date hereof, received notice from any Trading Market on
which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance with the listing or
maintenance requirements of such Trading Market. The Company is, and has no reason to believe that it will not in the foreseeable
future continue to be, in compliance with all such listing and maintenance requirements.

 

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

 

(x)Disclosure.
Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company
confirms that neither it nor any other Person acting on its behalf has provided any of the Purchasers or their agents or counsel
with any information that it believes constitutes or might constitute material, non-public information. The Company understands
and confirms that the Purchasers will rely on the foregoing representation in effecting transactions in securities of the Company.
All of the disclosure furnished by or on behalf of the Company to the Purchasers regarding the Company and its Subsidiaries, their
respective businesses and the transactions contemplated hereby, including the Disclosure Schedules to this Agreement, 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 light of the circumstances under which they were made, not misleading. The press releases disseminated
by the Company during the twelve months preceding the date of this Agreement taken as a whole do not 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 light of the circumstances under which they were made and when made, not misleading. The Company acknowledges and agrees
that no Purchaser makes or has made any representations or warranties with respect to the transactions contemplated hereby other
than those specifically set forth in Section 3.2 hereof.

 

(y)No
Integrated Offering. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 3.2,
neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made
any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering
of the Securities to be integrated with prior offerings by the Company for purposes of any applicable shareholder approval provisions
of any Trading Market on which any of the securities of the Company are listed or designated. 

 

(z)Solvency.
Based on the consolidated financial condition of the Company as of the Closing Date, after giving effect to the receipt by the
Company of the proceeds from the sale of the Securities hereunder: (i) the fair saleable value of the Company’s assets exceeds
the amount that will be required to be paid on or in respect of the Company’s existing debts and other liabilities (including
known contingent liabilities) as they mature, (ii) the Company’s assets do not constitute unreasonably small capital to carry
on its business as now conducted and as proposed to be conducted including its capital needs taking into account the particular
capital requirements of the business conducted by the Company, consolidated and projected capital requirements and capital availability
thereof, and (iii) the current cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate
all of its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in
respect of its liabilities when such amounts are required to be paid. The Company does not intend to incur debts beyond its ability
to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt).
The Company has no knowledge of any facts or circumstances which lead it to believe that it will file for reorganization or liquidation
under the bankruptcy or reorganization laws of any jurisdiction within one year from the Closing Date. Schedule 3.1(aa)
sets forth as of the date hereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which
the Company or any Subsidiary has commitments. For the purposes of this Agreement, “Indebtedness” means (x)
any liabilities for borrowed money or amounts owed in excess of $50,000 (other than trade accounts payable incurred in the ordinary
course of business), (y) all guaranties, endorsements and other contingent obligations in respect of indebtedness of others, whether
or not the same are or should be reflected in the Company’s consolidated balance sheet (or the notes thereto), except guaranties
by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business;
and (z) the present value of any lease payments in excess of $50,000 due under leases required to be capitalized in accordance
with GAAP. Neither the Company nor any Subsidiary is in default with respect to any Indebtedness.

 

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(aa)Tax
Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a
Material Adverse Effect, the Company and its Subsidiaries each (i) has made or filed all United States federal, state and local
income and all foreign income and franchise tax returns, reports and declarations required by any jurisdiction to which it is subject,
(ii) has 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 and (iii) has set aside on its books provision reasonably adequate for the payment of
all material 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 or
of any Subsidiary know of no basis for any such claim.

 

(bb)Foreign
Corrupt Practices. Neither the Company nor any Subsidiary, nor to the knowledge of the Company or any Subsidiary, any agent
or other person acting on behalf of the Company or any Subsidiary, has: (i) directly or indirectly, used any funds for unlawful
contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any
unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns
from corporate funds, (iii) failed to disclose fully any contribution made by the Company or any Subsidiary (or made by any person
acting on its behalf of which the Company is aware) which is in violation of law or (iv) violated in any material respect any provision
of FCPA.

 

 

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(cc)Accountants.
The Company’s accounting firm is set forth on Schedule 3.1(cc) of the Disclosure Schedules. To the knowledge and belief
of the Company, such accounting firm: (i) is a registered public accounting firm as required by the Exchange Act and (ii) shall
express its opinion with respect to the financial statements to be included in the Company’s Annual Report for the fiscal
year ending March 31, 2013.

 

(dd)No
Disagreements with Accountants and Lawyers. There are no disagreements of any kind presently existing, or reasonably anticipated
by the Company to arise, between the Company and the accountants and lawyers formerly or presently employed by the Company and
the Company is current with respect to any fees owed to its accountants and lawyers which could affect the Company’s ability
to perform any of its obligations under any of the Transaction Documents.

 

(ee)Acknowledgment
Regarding Purchasers’ Purchase of Securities. The Company acknowledges and agrees that each of the Purchasers is acting
solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated
thereby. The Company further acknowledges that no Purchaser is acting as a financial advisor or fiduciary of the Company (or in
any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby and any advice given
by any Purchaser or any of their respective representatives or agents in connection with the Transaction Documents and the transactions
contemplated thereby is merely incidental to the Purchasers’ purchase of the Securities. The Company further represents to
each Purchaser that the Company’s decision to enter into this Agreement and the other Transaction Documents has been based
solely on the independent evaluation of the transactions contemplated hereby by the Company and its representatives.

 

(ff)Acknowledgment
Regarding Purchaser’s Trading Activity. Anything in this Agreement or
elsewhere herein to the contrary notwithstanding (except for Sections 3.2(e) and 4.15 hereof), it is understood and acknowledged
by the Company that: (i) none of the Purchasers has been asked by the Company to agree, nor has any Purchaser agreed, to desist
from purchasing or selling, long and/or short, securities of the Company, or “derivative” securities based on securities
issued by the Company or to hold the Securities for any specified term, (ii) past or future open market or other transactions by
any Purchaser, specifically including, without limitation, Short Sales or “derivative” transactions, before or after
the closing of this or future private placement transactions, may negatively impact the market price of the Company’s publicly-traded
securities, (iii) any Purchaser, and counter-parties in “derivative” transactions to which any such Purchaser is a
party, directly or indirectly, may presently have a “short” position in the Common Stock and (iv) each Purchaser shall
not be deemed to have any affiliation with or control over any arm’s length counter-party in any “derivative”
transaction. The Company further understands and acknowledges that (y) one or more Purchasers may engage in hedging activities
at various times during the period that the Securities are outstanding, including, without limitation, during the periods that
the value of the Underlying Shares deliverable with respect to Securities are being determined, and (z) such hedging activities
(if any) could reduce the value of the existing stockholders’ equity interests in the Company at and after the time that
the hedging activities are being conducted. The Company acknowledges that such aforementioned hedging activities do not constitute
a breach of any of the Transaction Documents.

 

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(gg)Regulation
M Compliance. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly,
any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate
the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or paid any compensation for soliciting purchases of,
any of the Securities, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other
securities of the Company, other than, in the case of clauses (ii) and (iii), compensation paid to the Company’s placement
agent in connection with the placement of the Securities.

 

(hh)[RESERVED]

 

(ii)Stock
Option Plans. Each stock option granted by the Company under the Company’s stock option plan was granted in accordance
with the terms of the Company’s stock option plan. No stock option granted under the Company’s stock option plan has
been backdated. The Company has not knowingly granted, and there is no and has been no Company policy or practice to knowingly
grant, stock options prior to, or otherwise knowingly coordinate the grant of stock options with, the release or other public announcement
of material information regarding the Company or its Subsidiaries or their financial results or prospects. 

 

(jj)Office
of Foreign Assets Control. Neither the Company nor any Subsidiary nor, to the Company's knowledge, any director, officer, agent,
employee or affiliate of the Company or any Subsidiary is currently subject to any U.S. sanctions administered by the Office of
Foreign Assets Control of the U.S. Treasury Department (“OFAC”).

 

(kk)U.S.
Real Property Holding Corporation. The Company is not and has never been a U.S. real property holding corporation within the
meaning of Section 897 of the Internal Revenue Code of 1986, as amended, and the Company shall so certify upon Purchaser’s
request.

 

(ll)Bank
Holding Company Act. Neither the Company nor any of its Subsidiaries or Affiliates 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 or
more of the total equity of a bank or any entity 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.

 

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(mm)Money
Laundering. The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance with
applicable financial record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970,
as amended, applicable money laundering statutes and applicable rules and regulations thereunder (collectively, the “Money
Laundering Laws”), and no action, suit or proceeding by or before any court or governmental agency, authority or body
or any arbitrator involving the Company and any Subsidiary with respect to the Money Laundering Laws is pending or, to the knowledge
of the Company or any Subsidiary, threatened.

 

3.2Representations
and Warranties of the Purchasers. Each Purchaser, for itself and for no other Purchaser, hereby represents and warrants as
of the date hereof and as of the Closing Date to the Company as follows (unless as of a specific date therein):

 

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

 

(b)Understandings
or Arrangements. Such Purchaser is acquiring the Securities as principal for its own account and has no direct or indirect
arrangement or understandings with any other persons to distribute or regarding the distribution of such Securities (this representation
and warranty not limiting such Purchaser’s right to sell the Securities pursuant to the Registration Statement or otherwise
in compliance with applicable federal and state securities laws). Such Purchaser is acquiring the Securities hereunder in the ordinary
course of its business.

 

(c)Purchaser
Status. At the time such Purchaser was offered the Securities, it was, and as of the date hereof it is, and on each date on
which it exercises any Warrants, it will be either: (i) an “accredited investor” as defined in Rule 501(a)(1), (a)(2),
(a)(3), (a)(7) or (a)(8) under the Securities Act or (ii) a “qualified institutional buyer” as defined in Rule 144A(a)
under the Securities Act.

 

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(d)Experience
of Such Purchaser. Such Purchaser, either alone or together with its representatives, has such knowledge, sophistication and
experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment
in the Securities, and has so evaluated the merits and risks of such investment. Such Purchaser is able to bear the economic risk
of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.

 

(e)Certain
Transactions and Confidentiality. Other than consummating the transactions contemplated hereunder, such Purchaser has not directly
or indirectly, nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser, executed any purchases
or sales, including Short Sales, of the securities of the Company during the period commencing as of the time that such Purchaser
first received a term sheet (written or oral) from the Company or any other Person representing the Company setting forth the material
pricing terms of the transactions contemplated hereunder and ending immediately prior to the execution hereof. Notwithstanding
the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage
separate portions of such Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions
made by the portfolio managers managing other portions of such Purchaser’s assets, the representation set forth above shall
only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase
the Securities covered by this Agreement. Other than to other Persons party to this Agreement, such Purchaser has maintained the
confidentiality of all disclosures made to it in connection with this transaction (including the existence and terms of this transaction).
Notwithstanding the foregoing, for avoidance of doubt, nothing contained herein shall constitute a representation or warranty,
or preclude any actions, with respect to the identification of the availability of, or securing of, available shares to borrow
in order to effect Short Sales or similar transactions in the future.

 

The Company acknowledges and agrees that
the representations contained in Section 3.2 shall not modify, amend or affect such Purchaser’s right to rely on the Company’s
representations and warranties contained in this Agreement or any representations and warranties contained in any other Transaction
Document or any other document or instrument executed and/or delivered in connection with this Agreement or the consummation of
the transaction contemplated hereby.

 

ARTICLE IV.

OTHER AGREEMENTS OF THE PARTIES

 

4.1Warrant Shares.
If all or any portion of a Warrant is exercised at a time when there is an effective registration statement to cover the issuance
or resale of the Warrant Shares or if the Warrant is exercised via cashless exercise, the Warrant Shares issued pursuant to any
such exercise shall be issued free of all legends. If at any time following the date hereof the Registration Statement (or any
subsequent registration statement registering the sale or resale of the Warrant Shares) is not effective or is not otherwise available
for the sale or resale of the Warrant Shares, the Company shall immediately notify the holders of the Warrants in writing that
such registration statement is not then effective and thereafter shall promptly notify such holders when the registration statement
is effective again and available for the sale or resale of the Warrant Shares (it being understood and agreed that the foregoing
shall not limit the ability of the Company to issue, or any Purchaser to sell, any of the Warrant Shares in compliance with applicable
federal and state securities laws). The Company shall use best efforts to keep a registration statement (including the Registration
Statement) registering the issuance or resale of the Warrant Shares effective during the term of the Warrants.

 

 

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4.2Acknowledgment
of Dilution. The Company acknowledges that the issuance of the Securities may result in dilution of the outstanding shares
of Common Stock, which dilution may be substantial under certain market conditions. The Company further acknowledges that its obligations
under the Transaction Documents, including, without limitation, its obligation to issue the Underlying Shares pursuant to the Transaction
Documents, are unconditional and absolute and not subject to any right of set off, counterclaim, delay or reduction, regardless
of the effect of any such dilution or any claim the Company may have against any Purchaser and regardless of the dilutive effect
that such issuance may have on the ownership of the other stockholders of the Company.

 

4.3Furnishing
of Information.

 

(a) If
the Common Stock is not registered under Section 12(b) or 12(g) of the Exchange Act on the date hereof, the Company agrees to cause
the Common Stock to be registered under Section 12(g) of the Exchange Act on or before the 60th calendar day following
the date hereof. Until the earliest of the time that (i) no Purchaser owns Securities or (ii) the Warrants have expired, the Company
covenants to maintain the registration of the Common Stock under Section 12(b) or 12(g) of the Exchange Act and to timely file
(or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Company
after the date hereof pursuant to the Exchange Act even if the Company is not then subject to the reporting requirements of the
Exchange Act.

 

4.4Integration.
The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined
in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities for purposes of the rules
and regulations of any Trading Market such that it would require shareholder approval prior to the closing of such other transaction
unless shareholder approval is obtained before the closing of such subsequent transaction.

 

4.5Exercise
Procedures. The form of Notice of Exercise included in the Warrants set forth the totality of the procedures required of the
Purchasers in order to exercise the Warrants. No additional legal opinion, other information or instructions shall be required
of the Purchasers to exercise their Warrants. The Company shall honor exercises of the Warrants and shall deliver Underlying Shares
in accordance with the terms, conditions and time periods set forth in the Transaction Documents.

 

 

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4.6Securities
Laws Disclosure; Publicity. The Company shall, by 9:00 a.m. (New York City time) on the Trading Day immediately following the
date hereof, file a Current Report on Form 8-K and press release disclosing the material terms of the transactions contemplated
hereby, including the Transaction Documents as exhibits thereto. From and after the issuance of such press release, the Company
represents to the Purchasers that it shall have publicly disclosed all material, non-public information delivered to any of the
Purchasers 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 and each Purchaser shall consult with each other in
issuing any other press releases with respect to the transactions contemplated hereby, and neither the Company nor any Purchaser
shall issue any such press release nor otherwise make any such public statement without the prior consent of the Company, with
respect to any press release of any Purchaser, or without the prior consent of each Purchaser, with respect to any press release
of the Company, which consent shall not unreasonably be withheld or delayed, except if such disclosure is required by law, in which
case the disclosing party shall promptly provide the other party with prior notice of such public statement or communication. Notwithstanding
the foregoing, the Company shall not publicly disclose the name of any Purchaser, or include the name of any Purchaser in any filing
with the Commission or any regulatory agency or Trading Market, without the prior written consent of such Purchaser, except: (a)
as required by federal securities laws and (b) to the extent such disclosure is required by law or Trading Market regulations,
in which case the Company shall provide the Purchasers with prior notice of such disclosure permitted under this clause (b).

 

4.7Shareholder
Rights Plan. No claim will be made or enforced by the Company or, with the consent of the Company, any other Person, that any
Purchaser is an “Acquiring Person” under any control share acquisition, business combination, poison pill (including
any distribution under a rights agreement) or similar anti-takeover plan or arrangement in effect or hereafter adopted by the Company,
or that any Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue of receiving Securities
under the Transaction Documents or under any other agreement between the Company and the Purchasers.

 

4.8 Non-Public
Information. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents,
the Company covenants and agrees that neither it, nor any other Person acting on its behalf, will provide any Purchaser or its
agents or counsel with any information that the Company believes constitutes material non-public information, unless prior thereto
such Purchaser shall have entered into a written agreement with the Company regarding the confidentiality and use of such information.
The Company understands and confirms that each Purchaser shall be relying on the foregoing covenant in effecting transactions in
securities of the Company.

 

4.9Use of Proceeds.
The Company shall use the net proceeds from the sale of the Securities hereunder for working capital purposes and shall not use
such proceeds: (a) for the satisfaction of any portion of the Company’s debt (other than payment of trade payables in the
ordinary course of the Company’s business and prior practices), (b) for the redemption of any Common Stock or Common Stock
Equivalents, (c) for the settlement of any outstanding litigation or (d) in violation of FCPA or OFAC regulations.

 

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4.10Indemnification
of Purchasers. Subject to the provisions of this Section 4.10, the Company will indemnify and hold each Purchaser and its directors,
officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent role of a
Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser (within
the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders,
agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles
notwithstanding a lack of such title or any other title) of such controlling persons (each, a “Purchaser Party”)
harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments,
amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such Purchaser
Party may suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants or
agreements made by the Company in this Agreement or in the other Transaction Documents or (b) any action instituted against the
Purchaser Parties in any capacity, or any of them or their respective Affiliates, by any stockholder of the Company who is not
an Affiliate of such Purchaser Party, with respect to any of the transactions contemplated by the Transaction Documents (unless
such action is based upon a breach of such Purchaser Party’s representations, warranties or covenants under the Transaction
Documents or any agreements or understandings such Purchaser Party may have with any such stockholder or any violations by such
Purchaser Party of state or federal securities laws or any conduct by such Purchaser Party which constitutes fraud, gross negligence,
willful misconduct or malfeasance). If any action shall be brought against any Purchaser Party in respect of which indemnity may
be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the Company in writing, and the Company shall
have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable to the Purchaser Party. Any
Purchaser Party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but
the fees and expenses of such counsel shall be at the expense of such Purchaser Party except to the extent that (i) the employment
thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time
to assume such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion of counsel, a material
conflict on any material issue between the position of the Company and the position of such Purchaser Party, in which case the
Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel. The Company will not
be liable to any Purchaser Party under this Agreement (y) for any settlement by a Purchaser Party effected without the Company’s
prior written consent, which shall not be unreasonably withheld or delayed; or (z) to the extent, but only to the extent that a
loss, claim, damage or liability is attributable to any Purchaser Party’s breach of any of the representations, warranties,
covenants or agreements made by such Purchaser Party in this Agreement or in the other Transaction Documents. The indemnification
required by this Section 4.10 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 are incurred. The indemnity agreements contained herein shall be in addition to any
cause of action or similar right of any Purchaser Party against the Company or others and any liabilities the Company may be subject
to pursuant to law.

 

4.11Reservation
and Listing of Securities.

 

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(a)The
Company shall maintain a reserve from its duly authorized shares of Common Stock for issuance pursuant to the Transaction Documents
in such amount as may then be required to fulfill its obligations in full under the Transaction Documents.

 

(b)If,
on any date, the number of authorized but unissued (and otherwise unreserved) shares of Common Stock is less than 110% of (i) the
Required Minimum on such date, minus (ii) the number of shares of Common Stock previously issued pursuant to the Transaction Documents,
then the Board of Directors shall use commercially reasonable efforts to amend the Company’s certificate or articles of incorporation
to increase the number of authorized but unissued shares of Common Stock to at least the Required Minimum at such time (minus the
number of shares of Common Stock previously issued pursuant to the Transaction Documents), as soon as possible and in any event
not later than the 75th day after such date; provided that the Company will not be required at any time to authorize
a number of shares of Common Stock greater than the maximum remaining number of shares of Common Stock that could possibly be issued
after such time pursuant to the Transaction Documents.

 

(c)The
Company shall, if applicable: (i) in the time and manner required by the principal Trading Market, prepare and file with such Trading
Market an additional shares listing application covering a number of shares of Common Stock at least equal to the Required Minimum
on the date of such application, (ii) take all steps necessary to cause such shares of Common Stock to be approved for listing
or quotation on such Trading Market as soon as possible thereafter, (iii) provide to the Purchasers evidence of such listing or
quotation and (iv) maintain the listing or quotation of such Common Stock on any date at least equal to the Required Minimum on
such date on such Trading Market or another Trading Market.

 

4.12Participation
in Future Financing.

 

(a)From
the date hereof until the date that is the 12 month anniversary of the Closing Date, upon any issuance by the Company or any of
its Subsidiaries of Common Stock, Common Stock Equivalents for cash consideration, Indebtedness or a combination of units thereof
(a “Subsequent Financing”), each Purchaser shall have the right to participate in up to an amount of the Subsequent
Financing equal to such Purchaser’s Subscription Amount hereunder on the same terms, conditions and price provided for in
the Subsequent Financing, provided that the aggregate participation for all Purchasers shall not exceed 50% of the Subsequent Financing
(the “Participation Maximum”).

 

(b)At
least three (3) Trading Days prior to the closing of the Subsequent Financing, the Company shall deliver to each Purchaser a written
notice of its intention to effect a Subsequent Financing (“Pre-Notice”), which Pre-Notice shall ask such Purchaser
if it wants to review the details of such financing (such additional notice, a “Subsequent Financing Notice”).
Upon the request of a Purchaser, and only upon a request by such Purchaser, for a Subsequent Financing Notice, the Company shall
promptly, but no later than one (1) Trading Day after such request, deliver a Subsequent Financing Notice to such Purchaser. The
Subsequent Financing Notice shall describe in reasonable detail the proposed terms of such Subsequent Financing, the amount of
proceeds intended to be raised thereunder and, solely to the extent the Company has been authorized to disclose the identity of
such Person or Persons, the Person or Persons through or with whom such Subsequent Financing is proposed to be effected and shall
include a term sheet or similar document relating thereto as an attachment.

 

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(c)Any
Purchaser desiring to participate in such Subsequent Financing must provide written notice to the Company by not later than 5:30
p.m. (New York City time) on the third (3rd) Trading Day after all of the Purchasers have received the Pre-Notice that such Purchaser
is willing to participate in the Subsequent Financing, the amount of such Purchaser’s participation, and representing and
warranting that such Purchaser has such funds ready, willing, and available for investment on the terms set forth in the Subsequent
Financing Notice. If the Company receives no such notice from a Purchaser as of such third (3rd) Trading Day, such Purchaser shall
be deemed to have notified the Company that it does not elect to participate.

 

(d)If
by 5:30 p.m. (New York City time) on the third (3rd) Trading Day after all of the Purchasers have received the Pre-Notice, notifications
by the Purchasers of their willingness to participate in the Subsequent Financing (or to cause their designees to participate)
is, in the aggregate, less than the Participation Maximum, then the Company may effect the remaining portion of such Subsequent
Financing on the terms set forth in the Subsequent Financing Notice.

 

(e)If
by 5:30 p.m. (New York City time) on the third (3rd) Trading Day after all of the Purchasers have received the Pre-Notice, the
Company receives responses to a Subsequent Financing Notice from Purchasers seeking to purchase more than the aggregate amount
of the Participation Maximum, each such Purchaser shall have the right to purchase its Pro Rata Portion (as defined below) of the
Participation Maximum. “Pro Rata Portion” means the ratio of (x) the Subscription Amount of Securities purchased
on the Closing Date by a Purchaser participating under this Section 4.12 and (y) the sum of the aggregate Subscription Amounts
of Securities purchased on the Closing Date by all Purchasers participating under this Section 4.12.

 

(f)The
Company must provide the Purchasers with a second Subsequent Financing Notice, and the Purchasers will again have the right of
participation set forth above in this Section 4.12, if the Subsequent Financing subject to the initial Subsequent Financing Notice
is not consummated for any reason on the terms set forth in such Subsequent Financing Notice within thirty (30) Trading Days after
the date of the initial Subsequent Financing Notice.

 

(g)The
Company and each Purchaser agree that if any Purchaser elects to participate in the Subsequent Financing, the transaction documents
related to the Subsequent Financing shall not include any term or provision whereby such Purchaser shall be required to agree to
any restrictions on trading as to any of the Securities purchased hereunder 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, this Agreement, without the prior written consent of
such Purchaser.

 

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(h)Notwithstanding
anything to the contrary in this Section 4.12 and unless otherwise agreed to by such Purchaser, the Company shall either confirm
in writing to such Purchaser that the transaction with respect to the Subsequent Financing has been abandoned or shall publicly
disclose its intention to issue the securities in the Subsequent Financing, in either case in such a manner such that such Purchaser
will not be in possession of any material, non-public information, by the tenth (10th) Business Day following delivery of the Subsequent
Financing Notice. If by such tenth (10th) Business Day, no public disclosure regarding a transaction with respect to the Subsequent
Financing has been made, and no notice regarding the abandonment of such transaction has been received by such Purchaser, such
transaction shall be deemed to have been abandoned and such Purchaser shall not be deemed to be in possession of any material,
non-public information with respect to the Company or any of its Subsidiaries. 

 

(i)Notwithstanding
the foregoing, this Section 4.12 shall not apply in respect of an Exempt Issuance.

 

4.13Subsequent
Equity Sales.

 

(a)From
the date hereof until thirty (30) days after the Closing Date, neither the Company nor any Subsidiary shall issue, enter into any
agreement to issue or announce the issuance or proposed issuance of any shares of Common Stock or Common Stock Equivalents.

 

(b)From
the date hereof until six (6 months) after the Closing Date, the Company shall be prohibited from effecting or entering into an
agreement to effect any issuance by the Company or any of its Subsidiaries of Common Stock or Common Stock Equivalents for cash
consideration (or a combination of units thereof) involving a Variable Rate Transaction. “Variable Rate Transaction”
means a transaction in which the Company (i) issues or sells any debt or equity securities that are convertible into, exchangeable
or exercisable for, or include the right to receive, additional shares of Common Stock either (A) at a conversion price, exercise
price 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 debt or equity 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 debt or equity security 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 or (ii) enters into any agreement, including, but not limited to, an equity line of credit, whereby the Company
may sell securities at a future determined price. Any Purchaser shall be entitled to obtain injunctive relief against the Company
to preclude any such issuance, which remedy shall be in addition to any right to collect damages.

 

(c)Notwithstanding
the foregoing, this Section 4.13 shall not apply in respect of an Exempt Issuance, except that no Variable Rate Transaction shall
be an Exempt Issuance.

 

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4.14Equal Treatment
of Purchasers. No consideration (including any modification of any Transaction Document) 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
is also offered to all of the parties to the Transaction Documents. For clarification purposes, this provision constitutes a separate
right granted to each Purchaser by the Company and negotiated separately by each Purchaser, and is intended for the Company to
treat the Purchasers as a class and shall not in any way be construed as the Purchasers acting in concert or as a group with respect
to the purchase, disposition or voting of Securities or otherwise.

 

4.15Certain
Transactions and Confidentiality. Each Purchaser, severally and not jointly with the other Purchasers, covenants that neither
it, nor any Affiliate acting on its behalf or pursuant to any understanding with it, will execute any purchases or sales, including
Short Sales, of any of the Company’s securities during the period commencing with the execution of this Agreement and ending
at such time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release
as described in Section 4.6. Each Purchaser, severally and not
jointly with the other Purchasers, covenants that until such time as the transactions contemplated by this Agreement are publicly
disclosed by the Company pursuant to the initial press release as described in Section 4.6, such Purchaser will maintain the confidentiality
of the existence and terms of this transaction and the information included in the Transaction Documents and the Disclosure Schedules.
Notwithstanding the foregoing, and notwithstanding anything contained
in this Agreement to the contrary, the Company expressly acknowledges and agrees that (i) no Purchaser makes any representation,
warranty or covenant hereby that it will not engage in effecting transactions in any securities of the Company after the time that
the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release as described
in Section 4.6, (ii) no Purchaser shall be restricted or prohibited from effecting any transactions in any securities of
the Company in accordance with applicable securities laws from and after the time that the transactions contemplated by this Agreement
are first publicly announced pursuant to the initial press release as described in Section 4.6 and (iii) no Purchaser shall have
any duty of confidentiality to the Company or its Subsidiaries after the issuance of the initial press release as described in
Section 4.6. Notwithstanding the foregoing, in the case of a Purchaser
that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such Purchaser’s
assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing
other portions of such Purchaser’s assets, the covenant set forth above shall only apply with respect to the portion of assets
managed by the portfolio manager that made the investment decision to purchase the Securities covered by this Agreement.

 

4.16Capital
Changes. Until the one year anniversary of the Closing Date, the Company shall not undertake a reverse or forward stock split
or reclassification of the Common Stock without the prior written consent of the Purchasers holding a majority in interest of the
Securities then outstanding; provided, however, that the Company may undertake a reverse split of the Common Stock at any time
in order to satisfy the minimum market price requirement of a national securities market or exchange on which it intends to pursue
listing.

 

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ARTICLE V.

MISCELLANEOUS

 

5.1Termination.
This Agreement may be terminated by any Purchaser, as to such Purchaser’s obligations hereunder only and without any effect
whatsoever on the obligations between the Company and the other Purchasers, by written notice to the other parties, if the Closing
has not been consummated on or before ___ ___, 2013; provided, however, that such termination will not affect the
right of any party to sue for any breach by any other party (or parties).

 

5.2Fees and
Expenses. Except as expressly set forth in the Transaction Documents to the contrary, each party shall pay the fees and expenses
of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the
negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all Transfer Agent fees
(including, without limitation, any fees required for same-day processing of any instruction letter delivered by the Company and
any exercise notice delivered by a Purchaser), stamp taxes and other taxes and duties levied in connection with the delivery of
any Securities to the Purchasers.

 

5.3Entire Agreement.
The Transaction Documents, together with the exhibits and schedules thereto and the Prospectus and Prospectus Supplement, contain
the entire understanding of the parties with respect to the subject matter hereof and thereof and supersede all prior agreements
and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents,
exhibits and schedules.

 

5.4Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and
shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered
via facsimile or email at the facsimile number or email address set forth on the signature pages attached hereto at or prior to
5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication
is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto on a day that is not a Trading
Day or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the second (2nd) Trading Day following the
date of mailing, if sent by U.S. nationally recognized overnight courier service or (d) upon actual receipt by the party to whom
such notice is required to be given. The address for such notices and communications shall be as set forth on the signature pages
attached hereto.

 

5.5Amendments;
Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed,
in the case of an amendment, by the Company and the Purchasers holding at least a majority in interest of the Securities then outstanding
or, in the case of a waiver, by the party against whom enforcement of any such waived provision is sought. No waiver of any default
with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future
or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay
or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right.

 

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5.6Headings.
The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect
any of the provisions hereof.

 

5.7Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted
assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of
each Purchaser (other than by merger). Any Purchaser may assign any or all of its rights under this Agreement to any Person to
whom such Purchaser assigns or transfers any Securities, provided that such transferee agrees in writing to be bound, with respect
to the transferred Securities, by the provisions of the Transaction Documents that apply to the “Purchasers.”

 

5.8No Third-Party
Beneficiaries. The Placement Agent shall be a third party beneficiary with respect to the representations and warranties of
the Purchasers in Section 3.2 hereof. This Agreement is intended for the benefit of the parties hereto and their respective successors
and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise
set forth in Section 4.10 and this Section 5.8.

 

5.9Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall
be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the
principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party
hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced
exclusively in the state and federal courts sitting in the City of New York. Each party hereby irrevocably submits to the exclusive
jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication of any
dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect
to the enforcement of any of the Transaction Documents), 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 improper or is an inconvenient venue for such proceeding. 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 via registered or certified mail
or overnight delivery (with evidence of delivery) to such party at the address in effect for 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 be deemed to limit in any way any right to serve process in any other manner permitted by law. If either party shall commence
an action, suit or proceeding to enforce any provisions of the Transaction Documents, then, in addition to the obligations of the
Company under Section 4.10, the prevailing party in such action, suit or proceeding shall be reimbursed by the other party for
its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution
of such action or proceeding.

 

5.10Survival.
The representations and warranties contained herein shall survive the Closing and the delivery of the Securities.

 

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5.11Execution.
This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each party and delivered to each other party, it being
understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission
or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the
party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof.

 

5.12Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full
force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially
reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated
by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that
they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

 

5.13Rescission
and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of)
any of the other Transaction Documents, whenever any Purchaser 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 Purchaser
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; provided, however, that in the
case of a rescission of an exercise of a Warrant, the applicable Purchaser shall be required to return any shares of Common Stock
subject to any such rescinded exercise notice concurrently with the return to such Purchaser of the aggregate exercise price paid
to the Company for such shares and the restoration of such Purchaser’s right to acquire such shares pursuant to such Purchaser’s
Warrant (including, issuance of a replacement warrant certificate evidencing such restored right).

 

5.14Replacement
of Securities. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company
shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation), or
in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory
to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances shall
also pay any reasonable third-party costs (including customary indemnity) associated with the issuance of such replacement Securities.

 

5.15Remedies.
In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of
the Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that
monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the
Transaction Documents and hereby agree to waive and not to assert in any action for specific performance of any such obligation
the defense that a remedy at law would be adequate.

 

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5.16Payment
Set Aside. To the extent that the Company makes a payment or payments to any Purchaser pursuant to any Transaction Document
or a Purchaser enforces or exercises its rights 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, 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.

 

5.17Independent
Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction Document are several
and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance
or non-performance of the obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any
other Transaction Document, and no action taken by any Purchaser pursuant hereto or thereto, shall be deemed to constitute the
Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers
are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction
Documents. Each Purchaser shall be entitled to independently protect and enforce its rights, including, without limitation, the
rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser
to be joined as an additional party in any proceeding for such purpose. Each Purchaser has been represented by its own separate
legal counsel in its review and negotiation of the Transaction Documents. For reasons of administrative convenience only, each
Purchaser and its respective counsel have chosen to communicate with the Company through EGS. EGS does not represent any of the
Purchasers and only represents Dawson James Securities, Inc. (the “Placement Agent”). The Company has elected
to provide all Purchasers with the same terms and Transaction Documents for the convenience of the Company and not because it was
required or requested to do so by any of the Purchasers.

 

5.18Liquidated
Damages. The Company’s obligations to pay any partial liquidated damages or other amounts owing under the Transaction
Documents is a continuing obligation of the Company and shall not terminate until all unpaid partial liquidated damages and other
amounts have been paid notwithstanding the fact that the instrument or security pursuant to which such partial liquidated damages
or other amounts are due and payable shall have been canceled.

 

5.19Saturdays,
Sundays, Holidays, etc.If the last or appointed day for the taking of any action or the expiration of any right required
or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding
Business Day.

 

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5.20Construction.
The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the Transaction
Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting
party shall not be employed in the interpretation of the Transaction Documents or any amendments thereto. In addition, each and
every reference to share prices and shares of Common Stock in any Transaction Document shall be subject to adjustment for reverse
and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after
the date of this Agreement.

 

5.21WAIVER
OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES
EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY
AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY. 

 

 

 

(Signature Pages Follow)

 

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IN WITNESS WHEREOF,
the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories
as of the date first indicated above.

 

 

	
        STEVIA FIRST CORP.

         
	
        Address for Notice:

         

         

	
        By:__________________________________________

        Name:

        Title:

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

         

         
	 

 

 

 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOR PURCHASER FOLLOWS]

 

    	34

    	 

    

 

 

[PURCHASER SIGNATURE PAGES TO STVF
SECURITIES PURCHASE AGREEMENT]

 

IN WITNESS WHEREOF,
the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as
of the date first indicated above.

 

 

Name of Purchaser: ____________________________________________________

 

Signature of Authorized Signatory of Purchaser: __________________________

 

Name of Authorized Signatory: ____________________________________

 

Title of Authorized Signatory: _____________________________________

 

Email Address of Authorized Signatory: ___________________________________________

 

Facsimile Number of Authorized Signatory: _________________________________________

 

Address for Notice to Purchaser:

 

 

Address for Delivery of Securities to Purchaser (if not same
as address for notice):

 

 

Subscription Amount: $____________

Shares: ________________

Warrant Shares:________________

EIN Number: _______________________

 

 

o
Notwithstanding anything contained in this Agreement to the contrary, by checking this box (i) the obligations of the above-signed
to purchase the securities set forth in this Agreement to be purchased from the Company by the above-signed, and the obligations
of the Company to sell such securities to the above-signed, shall be unconditional and all conditions to Closing shall be disregarded,
(ii) the Closing shall occur on the third (3rd) Trading Day following the date of this Agreement and (iii) any condition
to Closing contemplated by this Agreement (but prior to being disregarded by clause (i) above) that required delivery by the Company
or the above-signed of any agreement, instrument, certificate or the like or purchase price (as applicable) shall no longer be
a condition and shall instead be an unconditional obligation of the Company or the above-signed (as applicable) to deliver such
agreement, instrument, certificate or the like or purchase price (as applicable) to such other party on the Closing Date.

 

[SIGNATURE PAGES CONTINUE]

 

    	35Morria Biopharmaceuticals
Plc

 

a Company under the laws
of england and wales

 

SUBSCRIPTION AGREEMENT

AND INVESTMENT REPRESENTATION

 

		1.	SUBSCRIPTION.

 

		1.1.	Subscription. The undersigned, intending to be legally bound, hereby subscribes for and
agrees to purchase seventeen thousand five hundred (17,500) ordinary shares of £GBP0.01 (the “Shares”) of Morria
Biopharmaceuticals PLC., a public company under the laws of England and Wales with company number 05252842 whose registered office
is at Thames House, Portsmouth Road, Esher, Surrey, KT10 9AD, UK (the “Company”), and eight thousand seven hundred
and fifty (8,750) warrants to purchase ordinary shares (in the form attached hereto as Exhibit A, the “Warrants”; the
Shares and the Warrants to be issued along with the Shares in the ratio of half a Warrant for each one Share purchased, hereinafter,
the “Units”) in a transaction exempt from the registration requirements of the US Securities Act of 1933, as amended
(the “Securities Act”). The purchase price to be remitted to the Company in exchange for the Units shall be an aggregate
of US$35,000 (thirty five thousand US Dollars) (the “Aggregate Subscription”) or US$2.00 (two US Dollars) per Unit
(the “Purchase Price Per Unit”). The exercise price of the Warrant shall be US$2.00 (two US Dollars) per share.

 

		1.2.	Delivery. All Shares or American Depositary Shares ("ADSs") representing the Ordinary
Shares, to be issued or held on behalf of the Undersigned hereunder shall be delivered to undersigned or its designated trustee
or beneficiary.

 

		1.3.	Most Favored Nation. From the Closing (as defined hereunder) until the earlier of (i) the
six (6) month anniversary of the Effective Date (as defined below) or (ii) the date immediately following the 20 (twenty) consecutive
trading days wherein the trading volume for the Ordinary Shares or American Depositary Shares ("ADSs") on the principal
market exceeds USD$100,000 per Trading Day, which 20 consecutive Trading Day period shall have commenced only after the Effective
Date, each investor may elect to exchange all of its Shares and Warrants for any such additional securities issued by the Company
in a subsequent financing, on the same financial terms and conditions as such subsequent financing, based on the per share purchase
price multiplied by the number of Shares being exchanged.

 

		1.4.	Acceptance or Rejection.

 

		(a)	The undersigned understands and agrees that the Company reserves the right to reject this subscription
for the Units if, in its reasonable judgment, it deems such action in the best interest of the Company, at any time prior to the
Closing, notwithstanding prior receipt by the undersigned of notice of acceptance of the undersigned's subscription.

 

		(b)	The undersigned understands and agrees that its subscription for the Units is irrevocable.

 

    	 

    	 

    

 

		1.5.	Registration Rights. The Company will file with the SEC a "resale registration statement"
on Form F-1 covering the resale of the Ordinary Shares issued at the Closing and the Ordinary Shares issuable upon exercise of
the Warrants (the "Registration Statement"), no later than the 30th (thirty) calendar day after January 28,
2013 (the "Filing Date"), and use its commercially reasonable efforts to cause the Registration Statement to be declared
effective within 90 (ninety) calendar days after the Filing Date, or within 135 (one hundred and thirty five) calendar days after
the Filing Date in the event the Registration Statement is reviewed by the US Securities and Exchange Commission ("SEC")
(the "Effective Date"), provided that if the Company is required to include audited financial statements for fiscal year
2012 in such Registration Statement, then the Filing Date shall be 60 (sixty) calendar days and Effective Date shall be 165 (one
hundred and sixty five) calendar days if the Registration Statement is reviewed by the SEC.

 

		2.	CLOSING. The closing (the "Closing") of the purchase and sale of the Units, shall
occur simultaneously with 1) the acceptance by the Company (i) of the undersigned's subscription, as evidenced by the Company's
execution of this Subscription Agreement (ii) the Company's Board of Directors' approval of this Agreement, and 2) receipt of the
full Aggregate Subscription.

 

		3.	REPRESENTATIONS AND WARRANTIES.

 

		3.1.	Investor Representations and Warranties. The undersigned hereby acknowledges, represents
and warrants to, and agrees with, the Company and its affiliates as follows:

 

		(a)	Investment Purposes. The undersigned is acquiring the Units for his own account as principal,
not as a nominee or agent, for investment purposes only, and not with a view to, or for, resale, distribution or fractionalization
thereof in whole or in part and no other person has a direct or indirect beneficial interest in such Units or the Shares or Warrants
included therein or any portion thereof. Further, the undersigned does not have any contract, undertaking, agreement or arrangement
with any person to sell, transfer or grant participations to such person or to any third person, with respect to the Units for
which the undersigned is subscribing or any part of the Units or the Shares or Warrants included therein.

 

		(b)	Authority. The undersigned has full power and authority to enter into this Agreement, the
execution and delivery of this Agreement has been duly authorized, if applicable, and this Agreement constitutes a valid and legally
binding obligation of the undersigned.

 

		(c)	No General Solicitation. The undersigned is not subscribing for the Units as a result of
or subsequent to any advertisement, article, notice or other communication published in any newspaper, magazine or similar media
or broadcast over television or radio, or presented at any seminar or meeting, or any solicitation of a subscription by person
previously not known to the undersigned in connection with investment securities generally.

 

		(d)	Investment Experience. The undersigned is (i) experienced in making investments of the kind
described in this Agreement, (ii) able, by reason of the business and financial experience of its officers (if an entity) and professional
advisors (who are not affiliated with or compensated in any way by the Company or any of its affiliates or selling agents), to
protect its own interests in connection with the transactions described in this Agreement, and (iii) able to afford the entire
loss of its investment in the Units or the Shares or Warrants included therein.

 

		(e)	Exemption from Registration. The undersigned acknowledges his understanding that the offering
and sale of the Units or the Shares or Warrants included therein is intended to be exempt from registration under the Securities
Act. In furtherance thereof, in addition to the other representations and warranties of the undersigned made herein, the undersigned
further represents and warrants to and agrees with the Company and its affiliates as follows:

 

		(i)	The undersigned realizes that the basis for the exemption may not be present if, notwithstanding
such representations, the undersigned has in mind merely acquiring the Units or the Shares or Warrants included therein for a fixed
or determinable period in the future, or for a market rise, or for sale if the market does not rise. The undersigned does not have
any such intention;

 

    	- 2 -

    	 

    

 

		(ii)	The undersigned has the financial ability to bear the economic risk of his investment, has adequate
means for providing for his current needs and personal contingencies and has no need for liquidity with respect to his investment
in the Company;

 

		(iii)	The undersigned has such knowledge and experience in financial and business matters as to be capable
of evaluating the merits and risks of the prospective investment in the Units. The undersigned also represents it has not been
organized for the purpose of acquiring the Units; and

 

		(iv)	The undersigned has been provided an opportunity for a reasonable period of time prior to the date
hereof to obtain additional information concerning the offering of the Units, the Company and all other information to the extent
the Company possesses such information or can acquire it without unreasonable effort or expense.

 

		(f)	Economic Considerations. The undersigned is not relying on the Company, or its affiliates
or agents with respect to economic considerations involved in this investment. The undersigned has relied solely on its own advisors.

 

		(g)	No Other Company Representations. No representations or warranties have been made to the
undersigned by the Company, or any officer, employee, agent, affiliate or subsidiary of the Company, other than the representations
of the Company contained herein, and in subscribing for Units, the undersigned is not relying upon any representations other than
those contained herein.

 

		(h)	Restrictive Legends. Each certificate representing the Shares, and each Warrant agreement
provided to the undersigned shall be endorsed with the following legend, in addition to any other legend required to be placed
thereon by applicable country, federal or state securities laws:

 

“THESE SECURITIES HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY OTHER JURISDICTION. THEY MAY NOT
BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES
UNDER SUCH ANY OF SUCH ACTS OR LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED
OR UNLESS TRANSFERRED PURSUANT TO ANY VALID EXEMPTION FROM REGISTRATION AVAILABLE UNDER SUCH ACT OR ANY OTHER LAWS.”

 

The undersigned consents to the
Company making a notation on its records or giving instructions to any transfer agent of the Company in order to implement the
restrictions on transfer of the Shares and Warrants set forth in this Section.

 

		(i)	Accredited Investor. The undersigned is an “accredited investor” as that term
is defined in Rule 501 of the General Rules and Regulations under the Securities Act by reason of Rule 501(a)(3).

 

		(j)	Potential Loss of Investment; Risk Factors. The undersigned understands that an investment
in the Units is a speculative investment which involves a high degree of risk and the potential loss of his entire investment.
The undersigned understands that the following factors, among others, could cause the loss of any or all of his investment.

 

    	- 3 -

    	 

    

 

		(i)	The Company is a development stage company with no operating history for the undersigned to evaluate
its business. The Company was established under the laws of England and Wales in 2004, and has never earned revenue from the sale
of products or services. Because the Company has no operating history and no products ready to be marketed, either now or in the
foreseeable future, it is difficult to evaluate when the Company will reach profitability, if ever. The undersigned has also considered
the uncertainties and difficulties frequently encountered by companies, such as the Company, in similar stages of product development.
The Company is now and for the foreseeable future completely reliant on investment capital for its continued operations. Unavailability
of such investment may jeopardize the Company’s existence resulting in a total of the undersigned’s investment.

 

		(ii)	The Company currently does not have enough working capital to satisfy its capital needs for its
development programs. The Company is dependent upon its management team to fund its ongoing operations, and cannot be certain that
future financing will be available to it on acceptable terms when it needs it. The Company can give no assurances that it will
be able to sell any portion of this offering or that management will continue to fund its ongoing operations. This, along with
the possibility of other factors and circumstances the Company cannot predict, may require it to seek additional financing faster
than anticipated. If the Company is unable to obtain financing to meet its needs, the undersigned may lose of his investment.

 

		(iii)	Management has no track record of success in the industry in which the Company intends to operate.
This lack of experience may result in the Company’s needing to employ outside experts that have such experience. The additional
cost could result in a net operating loss and, ultimately, could result in the Company's failure. Management's inexperience may
limit the Company’s ability to generate revenues. The Company may never achieve successful operations, and the undersigned
may lose his entire investment.

 

		(iv)	The Company is incorporated under the law of England and Wales. As such the rights and obligations
of shareholders may be different from those rights to which the undersigned is accustomed. The undersigned understands that enforcing
or benefiting from such rights may impose additional costs upon the undersigned.

 

		(k)	Investment Commitment. The undersigned's overall commitment to investments which are not
readily marketable is not disproportionate to the undersigned's net worth, and an investment in the Units will not cause such overall
commitment to become excessive.

 

		(l)	Receipt of Information. The undersigned has received all documents, records, books and other
information pertaining to the undersigned’s investment in the Company that has been requested by the undersigned.

 

		(m)	Investor Questionnaire. The undersigned represents and warrants to the Company that all
information that the undersigned has provided to the Company, including, without limitation, the information in the Investor Questionnaire
attached hereto or previously provided to the Company (the “Investor Questionnaire”), is correct and complete
as of the date hereof.

 

		(n)	No Reliance. Other than as set forth herein, the undersigned is not relying upon any other
information, representation or warranty by the Company or any officer, director, stockholder, agent or representative of the Company
in determining to invest in the Shares. The undersigned has consulted, to the extent deemed appropriate by the undersigned, with
the undersigned’s own advisers as to the financial, tax, legal and related matters concerning an investment in the Units
and on that basis believes that his or its investment in the Units is suitable and appropriate for the undersigned.

 

    	- 4 -

    	 

    

 

		(o)	No Governmental Review. The undersigned is aware that no federal or state agency of the
United States or any other jurisdiction has (i) made any finding or determination as to the fairness of this investment, (ii) made
any recommendation or endorsement of the Units or the Company, or (iii) guaranteed or insured any investment in the Units or any
investment made by the Company.

 

		(p)	Price of Units. The undersigned understands that the price of the Units offered hereby bear
no relation to the assets, book value or net worth of the Company and were determined arbitrarily by the Company. The undersigned
further understands that there is a substantial risk of further dilution on his or its investment in the Company.

 

		3.2.	Company’s Representations and Warranties. The Company represents and warrants to the
undersigned as follows:

 

		(a)	Organization of the Company. The Company is a corporation duly organized and validly existing
and in good standing under the laws of England and Wales.

 

		(b)	Authority. (i) The Company has the requisite corporate power and authority to enter into
and perform its obligations under this Agreement and to issue the Shares and the Warrants in accordance with the terms hereof;
(ii) the execution and delivery of this Agreement by the Company and the consummation by it of the transactions contemplated hereby
have been duly authorized by all necessary corporate action and no further consent or authorization of the Company or its Board
of Directors or stockholders is required; and (iii) this Agreement has been duly executed and delivered by the Company and constitutes
a valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as such enforceability
may be limited by applicable bankruptcy, insolvency, or similar laws relating to, or affecting generally the enforcement of, creditors'
rights and remedies or by other equitable principles of general application.

 

		(c)	Exemption from Registration; Valid Issuances. The sale and issuance of the Units and the
Shares and Warrants included therein, in accordance with the terms and on the bases of the representations and warranties of the
undersigned set forth herein, may and shall be properly issued by the Company to the undersigned, pursuant to the laws of the United
Kingdom and the Articles of Association of the Company. When issued and paid for as herein provided, the Shares shall be duly and
validly issued, fully paid, and nonassessable. Neither the sales of the Shares and Warrants pursuant to, nor the Company's performance
of its obligations under, this Agreement shall (i) result in the creation or imposition of any liens, charges, claims or other
encumbrances upon the Shares or any of the assets of the Company, or (ii) entitle the other holders of the Shares of the Company
to preemptive or other rights to subscribe to or acquire the Ordinary Shares or other securities of the Company. The Shares shall
not subject the undersigned to personal liability by reason of the ownership thereof.

 

		(d)	Currently, the Ordinary Shares are not trading. The Company expects that American Depositary Shares
("ADSs") representing the Ordinary Shares will be quoted on the Over-the-Counter Bulletin Board or other over-the-counter
market following the closing of this Offering. If the Company's ADSs are quoted for trading, the Company's depositary will deliver
ADSs to a holder of Ordinary Shares or the holder's broker that deposits unrestricted Ordinary Shares or evidence of rights to
receive unrestricted Ordinary Shares with the custodian. Upon payment of its fees and expenses and of any taxes or charges, such
as stamp taxes or stock transfer taxes or fees, the depositary will register the appropriate number of ADSs in the names requested
by such holder of Ordinary Shares and will deliver the ADSs to or upon the order of the person or persons entitled thereto.

 

    	- 5 -

    	 

    

 

		(e)	No General Solicitation or Advertising in Regard to this Transaction. Neither the Company
nor any of its affiliates nor any person acting on its or their behalf (i) has conducted or will conduct any general solicitation
(as that term is used in Rule 502(c) of Regulation D) or general advertising with respect to any of the Units, or (ii) made any
offers or sales of any security or solicited any offers to buy any security under any circumstances that would require registration
of the Ordinary Shares under the Securities Act.

 

		4.	INDEMNITY. The undersigned agrees to indemnify and hold harmless the Company, its officers and
directors, employees and its affiliates and their respective successors and assigns and each other person, if any, who controls
any thereof, against any loss, liability, claim, damage and expense whatsoever (including, but not limited to, any and all expenses
whatsoever reasonably incurred in investigating, preparing or defending against any litigation commenced or threatened or any claim
whatsoever) arising out of or based upon any false representation or warranty or breach or failure by the undersigned to comply
with any covenant or agreement made by the undersigned herein or in any other document furnished by the undersigned to any of the
foregoing in connection with this transaction.

 

		5.	GENERAL.

 

		5.1.	Modification. Neither this Agreement nor any provisions hereof shall be modified, discharged
or terminated except by an instrument in writing signed by the party against whom any waiver, change, discharge or termination
is sought.

 

		5.2.	Notices. Any notice, demand or other communication which any party hereto may be required,
or may elect, to give to anyone interested hereunder shall be sufficiently given if (a) deposited, postage prepaid, in a United
States mail letter box, registered or certified mail, return receipt requested, addressed to such address as may be given herein,
or (b) delivered personally at such address.

 

		5.3.	Counterparts. This Agreement may be executed through the use of separate signature pages
or in any number of counterparts and by facsimile, and each of such counterparts shall, for all purposes, constitute one agreement
binding on all parties, notwithstanding that all parties are not signatories to the same counterpart. Signatures may be facsimiles.

 

		5.4.	Binding Effect. Except as otherwise provided herein, this Agreement shall be binding upon
and inure to the benefit of the parties and their heirs, executors, administrators, successors, legal representatives and assigns.
If the undersigned is more than one person, the obligation of the undersigned shall be joint and several and the agreements, representations,
warranties and acknowledgments herein contained shall be deemed to be made by and be binding upon each such person and his heirs,
executors, administrators and successors.

 

		5.5.	Entire Agreement. This Agreement and the documents referenced herein contain the entire
agreement of the parties and there are no representations, covenants or other agreements except as stated or referred to herein
and therein.

 

		5.6.	Assignability. This Agreement is not transferable or assignable by the undersigned.

 

		5.7.	Applicable Law. This Agreement shall be governed by and construed in accordance with the
laws of the United Kingdom, without giving effect to conflicts of law principles.

 

		5.8.	Pronouns. The use herein of the masculine pronouns "him" or "his" or
similar terms shall be deemed to include the feminine and neuter genders as well and the use herein of the singular pronoun shall
be deemed to include the plural as well.

 

		5.9.	Further Assurances. Upon request from time to time, the undersigned shall execute and deliver
all documents, take all rightful oaths and do all other acts that may be necessary or desirable, in the reasonable opinion of the
Company or its counsel, to effect the subscription for the Shares in accordance herewith.

 

    	- 6 -

    	 

    

 

		5.10.	Company wire-transfer details: The Aggregate Subscription shall be transferred to the bank
account details as follows:

 

	Morria Biopharmaceuticals PLC	 	Chase Morria PLC USA
	 	 	11 West 51st street, New York, 10019, NY. USA
	1500 Broadway	 	Routing - 021000021
	New York, NY 10036	 	Checking  - 453746518
	 	 	SWIFT: CHASUS33XXX

 

[Remainder of page intentionally left
blank]

 

    	- 7 -

    	 

    

 

IN WITNESS WHEREOF, the undersigned has
executed this Agreement on the 30 day of December, 2012.

 

Amount of Investment: US $35,000

 

INDIVIDUAL INVESTOR:

 

	Signature:  	/s/ Mark S. Cohen	 

Name: Mark S. Cohen

Address:

PEARL COHEN ZEDEK LATZER

5 Shenkar Street

P.O. Box 12704

Herzlia 46733 Israel

 

PARTNERSHIP, CORPORATION, TRUST,

CUSTODIAL ACCOUNT, OTHER INVESTOR

 

______________________________

(Name of Entity)

By: __________________________

Name: ________________________

Title: _________________________

Address: ______________________

 

ACCEPTANCE OF SUBSCRIPTION

 

(to be filed out only by the Company)

 

The Company hereby accepts the above application
for subscription for Units on behalf of the Company.

 

Dated: December 30, 2012

 

	       /s/ Yuval Cohen	 
	Yuval Cohen, President	 

 

    	- 8 -

    	 

    

 

INVESTOR QUESTIONNAIRE

 

A. General Information

 

1.  Print Full Name of Investor:

- Individual:

 

Mark S. Cohen

First, Middle, Last

 

- Partnership, Corporation, Trust, Custodial
Account, Other:

_______________________________

Name of Entity

 

2.  Address for Notices:

PEARL COHEN ZEDEK LATZER

5 Shenkar Street

P.O. Box 12704

Herzlia 46733 Israel

 

3.  Name of Primary Contact Person: Mark
Cohen

Title: ____________________________________________

 

4.  Telephone Number: ______________________________

 

5.  E-Mail Address: _________________________________

 

6.  Facsimile Number: _______________________________

 

7.  Permanent Address:

(if different from Address for Notices
above)

 

______________________________

 

______________________________

 

______________________________

 

______________________________

 

______________________________

 

8.  Authorized Signatory: __________________________________

 

Title: ________________________________________________

 

Telephone Number: ____________________________________

 

Facsimile Number: ____________________________________

 

    	- 9 -

    	 

    

 

B. Accredited Investor Status

 

The Investor represents and warrants that
the Investor is an “accredited investor” within the meaning of Rule 501 of Regulation D under the Securities Act of
1933, as amended (the “Securities Act”), and has checked the box or boxes below which are next to the categories under
which the Investor qualifies as an accredited investor:

 

FOR INDIVIDUALS:

 

		_____	A natural person with individual net worth (or joint net worth with spouse) in excess of $1 million.
For purposes of this item, “net worth” means the excess of total assets at fair market value, over total liabilities,
except that the fair market value of the principal residence owned by a natural person shall be excluded for purposes of determining
such natural person’s net worth. Notwithstanding the foregoing, the related amount of indebtedness secured by the primary
residence up to the fair market value of such residence may be excluded from the calculation of net worth, but indebtedness secured
by the primary residence in excess of the fair market value of such residence should be considered a liability and deducted from
the natural person’s net worth. The principal residence owned by a natural person shall be valued either (a) at cost, including
the cost of improvements, net of current encumbrances upon the property, or (b) at the appraised value of the residence as determined
upon a written appraisal used by an institutional lender making a loan to the individual secured by the property, including the
cost of subsequent improvements, net of current encumbrances upon the property. As used in the preceding sentence, “institutional
lender” means a bank, savings and loan company, industrial loan company, credit union or personal property broker or a company
whose principal business is as a lender of loans secured by real property and which has such loans receivable in the amount of
$2,000,000 of more.

 

		_____	A natural person with individual income (without including any income of the Investor’s spouse)
in excess of $200,000, or joint income with spouse of $300,000, in each of the two most recent years and who reasonably expects
to reach the same income level in the current year.

 

FOR ENTITIES:

 

		_____	A bank as defined in Section 3(a)(2) of the Securities Act or any savings and loan association
or other institution as defined in Section 3(a)(5)(A) of the Securities Act, whether acting in its individual or fiduciary capacity.

 

		_____	An insurance company as defined in Section 2(13) of the Securities Act.

 

_____   A broker-dealer registered pursuant
to Section 15 of the Securities Exchange Act of 1934.

 

		_____	An investment company registered under the Investment Company Act of 1940, as amended (the “Investment
Company Act”).

 

		_____	A business development company as defined in Section 2(a)(48) of the Investment Company Act.

 

		_____	A small business investment company licensed by the Small Business Administration under Section
301(c) or (d) of the Small Business Investment Act of 1958.

 

		_____	A private business development company as defined in Section 202(a)(22) of the Investment Advisers
Act of 1940. If an Investor has checked this box, please contact Mark Cohen, Esq. at 646-878-0800 for additional information that
will be required.

 

    	- 10 -

    	 

    

 

		_____	An organization described in Section 501(c)(3) of the Internal Revenue Code, a corporation, Massachusetts
or similar business trust, or partnership, not formed for the specific purpose of acquiring the Units, with total assets in excess
of $5 million.

 

		_____	A trust with total assets in excess of $5 million not formed for the specific purpose of acquiring
the Units, whose purchase is directed by a person with such knowledge and experience in financial and business matters as to be
capable of evaluating the merits and risks of an investment in the Company and the purchase of the Units and the Shares and Warrant
included therein.

 

		_____	An employee benefit plan within the meaning of ERISA if the decision to invest in the Units is
made by a plan fiduciary, as defined in Section 3(21) of ERISA, which is either a bank, savings and loan association, insurance
company, or registered investment adviser, or if the employee benefit plan has total assets in excess of $5 million or, if a self-directed
plan, with investment decisions made solely by persons that are accredited investors.

 

		_____	A plan established and maintained by a state, its political subdivisions, or any agency or instrumentality
of a state or its political subdivisions, for the benefit of its employees, if the plan has total assets in excess of $5 million.

 

		_____	An entity, including a grantor trust, in which all of the equity owners are accredited investors
as determined under any of the foregoing paragraphs (for this purpose, a beneficiary of a trust is not an equity owner, but the
grantor of a grantor trust is an equity owner).

 

The Investor understands that the foregoing
information will be relied upon by the Company for the purpose of determining the eligibility of the Investor to purchase the Units.
The Investor agrees to notify the Company immediately if any representation or warranty contained in this Subscription Agreement,
including this Investor Questionnaire, becomes untrue at any time. The Investor agrees to provide, if requested, any additional
information that may reasonably be required to substantiate the Investor’s status as an accredited investor or to otherwise
determine the eligibility of the Investor to purchase the Units. The Investor agrees to indemnify and hold harmless the Company
and each officer, director, shareholder, agent and representative of the Company and their respective affiliates and successors
and assigns from and against any loss, damage or liability due to or arising out of a breach of any representation, warranty or
agreement of the Investor contained herein.

 

INDIVIDUAL:

 

___________________________

(Signature)

 

Mark S. Cohen

(Name)

 

PARTNERSHIP, CORPORATION, TRUST, CUSTODIAL
ACCOUNT, OTHER:

 

____________________________________

(Name of Entity)

 

By: ________________________________

(Signature)

____________________________________

(Print Name and Title)

 

    	- 11 -

    	 

    

 

Exhibit A

Form of Warrant

 

THIS WARRANT AND THE ORDINARY SHARES ISSUED
UPON ANY EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"),
OR ANY APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED TO ANY PERSON, INCLUDING A PLEDGEE, UNLESS
(1) EITHER (A) A REGISTRATION STATEMENT WITH RESPECT THERETO SHALL BE EFFECTIVE UNDER THE SECURITIES ACT, OR (B) THE COMPANY SHALL
HAVE RECEIVED AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT IS
AVAILABLE, AND (2) THERE SHALL HAVE BEEN COMPLIANCE WITH ALL APPLICABLE STATE SECURITIES OR "BLUE SKY" LAWS.

 

	No. ___	For the Purchase
	Issue Date: _________________	of 8,750 Ordinary Shares

 

WARRANT TO PURCHASE

ORDINARY SHARES

OF

MORRIA BIOPHARMACEUTICALS PLC

 

(A UNITED KINGDOM COMPANY)

 

MORRIA BIOPHARMACEUTICALS PLC.,
a company registered pursuant to the laws of the United Kingdom (the “Company”), for value received, hereby certifies
that Mark S. Cohen (the “Holder”), is entitled, subject to the terms set forth below, to purchase from the Company,
at any time or from time to time at or before the earlier of 5:00 p.m. (EST) on that date which is five (5) years from the Issue
Date first written above (the “Expiration Date”) and the termination of this Warrant as provided in Section 6 hereof,
eight thousand seven hundred and fifty (8,750) ordinary shares of the Company (the “Ordinary Shares”), at an exercise
price per Ordinary Share equal to US $2.00 (two US Dollars) per share (the “Base Price”), as may be adjusted upon the
occurrence of certain events as set forth in Section 2 of this Warrant. The Ordinary Shares issuable upon exercise of this Warrant,
and the purchase price per share, are hereinafter referred to as the “Warrant Shares” and the “Purchase Price,”
respectively.

 

1.          Exercise.

 

1.1          Manner of Exercise: Cash and
Cashless. At the Option of the Holder, the Warrant may be exercised on a cash or cashless basis as follows:

 

(a)          Payment in
Cash. This Warrant may be exercised by the Holder, in whole or in part, by surrendering this Warrant, with the purchase form
appended hereto as Exhibit A duly executed by the Holder, at the principal office of the Company, or at such other place
as the Company may designate, accompanied by payment in full of the Purchase Price payable in respect of the number of Warrant
Shares purchased upon such exercise. Payment of the Purchase Price shall be in cash or by certified or official bank check payable
to the order of the Company.

 

    	- 12 -

    	 

    

 

(b)          Cashless
Exercise. The Holder may, at its option, exchange this Warrant on a cashless basis, in whole or in part (a "Warrant
Exchange"), into the number of Warrant Shares determined in accordance with this Section 1.1(b), by surrendering this
Warrant at the Company’s office, accompanied by an irrevocable notice stating such Holder's intent to effect such exchange,
the number of Warrant Shares to be exchanged and the date of the notice of such intent to exchange (the "Notice of Exchange").
The Warrant Exchange shall take place on the date the Notice of Exchange and this Warrant are received by the Company (the "Exchange
Date"). Certificates for the shares issuable upon such Warrant Exchange and, if applicable, a new warrant of like tenor
evidencing the balance of the shares remaining subject to such Warrant, shall be issued as of the Exchange Date and delivered to
the Holder as soon as is reasonably practicable following the Exchange Date. In connection with any Warrant Exchange, a Warrant
shall represent the right to subscribe for and acquire the number of Warrant Shares (rounded to the next highest integer) equal
to (i) the number of Warrant Shares specified by the Holder in its Notice of Exchange (the "Total Number") less
(ii) the number of Warrant Shares equal to the quotient obtained by dividing (A) the product of the Total Number and the existing
Purchase Price by (B) the current market value of an Ordinary Share. Current market value, for purposes hereof, shall mean (i)
if the Ordinary Shares are then traded or quoted on a securities exchange or an over-the-counter market, the average price on such
exchange or market for the ten business days immediately preceding the date of the Notice of Exchange, and (ii) if the Ordinary
Shares are not then traded or quoted on a securities exchange or an over-the-counter market, the current market value on such date
shall be the fair market value as mutually determined by the Company and the Holder.

 

1.2          Effectiveness.
Each exercise of this Warrant shall be deemed to have been effected immediately prior to the close of business on the day on which
this Warrant shall have been surrendered to the Company as provided in Section 1.1 above. At such time, the person or persons
in whose name or names any certificates for Warrant Shares shall be issuable upon such exercise as provided in Section 1.3 below
shall be deemed to have become the holder or holders of record of the Warrant Shares represented by such certificates.

 

1.3.          Delivery of Certificates. As
soon as practicable after the exercise of this Warrant in full or in part, and in any event within ten (10) business days thereafter,
the Company at its sole expense will cause to be issued in the name of, and delivered to, the Holder, or, subject to the terms
and conditions hereof, as such Holder (upon payment by such Holder of any applicable transfer taxes) may direct:

 

(a)          A certificate or
certificates for the number of full shares of Warrant Shares to which such Holder shall be entitled upon such exercise plus, in
lieu of any fractional share to which such Holder would otherwise be entitled, cash in an amount determined pursuant to Section
1.4 hereof, and

 

(b)          In
case such exercise is in part only, a new warrant or warrants (dated the date hereof) of like tenor, setting forth on the face
or faces thereof the number of shares of Warrant Shares (without giving effect to any adjustment therein) equal to the number of
such shares called for on the face of this Warrant minus the number of such shares purchased by the Holder upon such exercise as
provided in Section 1.1 above.

 

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1.4.          Fractional Shares. The Company
shall not be required upon the exercise of this Warrant to issue any fractional shares, but shall make an adjustment therefor
either (i) in cash on the basis of the fair market value of the Warrant Shares reasonably determined by The Board of Directors
of the Company, or (ii) by rounding up the number of shares to the nearest whole number.

 

2.          Certain Adjustments. The Purchase
Price and the number of shares of Warrant Shares deliverable upon exercise of the Warrant shall be subject to adjustment from
time to time as follows:

 

2.1          Subdivision, Consolidation, Reclassification
or Change in Ordinary Shares or Warrant Shares. In the event of any consolidation, reclassification or change of the Ordinary
Shares or Warrant Shares into a lesser number or different class or classes of stock, the number of shares of Warrant Shares deliverable
upon exercise of this Warrant shall be proportionally decreased and the Purchase Price for such Warrant Shares shall be proportionately
increased. In the event of any subdivision, reclassification or change of the Ordinary Shares or Warrant Shares into a greater
number or different class or classes of stock, the number of shares of Warrant Shares deliverable upon exercise of this Warrant
shall be proportionally increased and the Purchase Price for such Warrant Shares shall be proportionately reduced.

 

2.2          Dividends or Other Distributions.
In the event that the Company issues additional Ordinary Shares as a dividend or other distribution with respect to the Ordinary
Shares, the number of shares of Warrant Shares deliverable upon exercise of this Warrant shall be determined in accordance with
the terms of the Certificate of Incorporation, and the Purchase Price for such Warrant Shares shall be proportionately reduced.

 

2.3          Reorganizations. If there shall
occur any capital reorganization of the Ordinary Shares or the Warrant Shares (excluding mergers and consolidations covered under
Section 2.4 hereto and other than a subdivision, combination, reclassification or change in par value), then, as part of any such
reorganization, lawful provision shall be made so that the Holder shall have the right thereafter to receive upon the exercise
of this Warrant the kind and amount of shares of stock or other securities or property which such Holder would have been entitled
to receive if, immediately prior to any such reorganization, such Holder had held the number of Ordinary Shares which were then
purchasable upon the exercise of this Warrant. In any such case, appropriate adjustment (as reasonably determined by the Board
of Directors of the Company) shall be made in the application of the provisions set forth herein with respect to the rights and
interests thereafter of the Holder such that the provisions set forth in this Section 2 (including provisions with respect to
adjustment of the Purchase Price) shall thereafter be applicable, as nearly as is reasonably practicable, in relation to any shares
of stock or other securities or property thereafter deliverable upon the exercise of this Warrant.

 

2.4          Merger, Consolidation or Sale of
Assets. Subject to the provisions of Section 6, if there shall be a merger or consolidation of the Company with or into another
corporation (other than a merger or reorganization involving only a change in the state of incorporation of the Company or the
acquisition by the Company of other businesses where the Company survives as a going concern), or the sale of all or substantially
all of the Company’s capital stock or assets to any other person, then as a part of such transaction, provision shall be
made so that the Holder shall thereafter be entitled to receive the number of shares of stock or other securities or property
of the Company, or of the successor corporation resulting from the merger, consolidation or sale, to which the Holder would have
been entitled if the Holder had exercised its rights pursuant to this Warrant in full immediately prior thereto. In any such case,
appropriate adjustment shall be made in the application of the provisions of this Section 2 to the end that the provisions of
this Section 2 shall be applicable after that event in as nearly equivalent a manner as may be practicable.

 

    	- 14 -

    	 

    

 

2.5          Certificate of Adjustment. When
any adjustment is required to be made in the Purchase Price, the Company shall promptly mail to the Holder a certificate setting
forth the Purchase Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment. Delivery
of such certificate shall be deemed to be a final and binding determination with respect to such adjustment unless challenged
by the Holder within ten (10) days of receipt thereof. Such certificate shall also set forth the kind and amount of stock or other
securities or property into which this Warrant shall be exercisable following the occurrence of any of the events specified in
this Section 2.

 

3.          Compliance with Securities Act.

 

3.1          Unregistered Securities. The
Holder acknowledges that this Warrant and the Warrant Shares have not been registered under the Securities Act of 1933, as amended,
and the rules and regulations thereunder, or any successor legislation (the “Securities Act”), and agrees not to sell,
pledge, distribute, offer for sale, transfer or otherwise dispose of this Warrant or any Warrant Shares in the absence of (i)
an effective registration statement under the Securities Act covering this Warrant or such Warrant Shares and registration or
qualification of this Warrant or such Warrant Shares under any applicable “blue sky” or state securities law then
in effect, or (ii) an opinion of counsel, satisfactory to the Company, that such registration and qualification are not required.
The Company may delay issuance of the Warrant Shares until completion of any action or obtaining of any consent, which the Company
deems necessary under any applicable law (including without limitation state securities or “blue sky” laws).

 

3.2          Investment Letter. Without limiting
the generality of Section 3.1, unless the offer and sale of any shares of Warrant Shares shall have been effectively registered
under the Securities Act, the Company shall be under no obligation to issue the Warrant Shares unless and until the Holder shall
have executed an investment letter in form and substance satisfactory to the Company, including a warranty at the time of such
exercise that the Holder is acquiring such shares for its own account, for investment and not with a view to, or for sale in connection
with, the distribution of any such shares, and that the Holder is an “accredited investor” as defined in the rules
promulgated under the Securities Act.

 

3.3          Legend. Certificates delivered
to the Holder pursuant to Section 1.3 shall bear the following legend or a legend in substantially similar form:

 

	 	 	“THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN TAKEN FOR INVESTMENT AND THEY MAY NOT BE SOLD OR OTHERWISE TRANSFERRED BY ANY PERSON, INCLUDING A PLEDGEE, IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SHARES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY, THAT AN EXEMPTION FROM REGISTRATION IS THEN AVAILABLE.”

 

4.          Reservation of Stock. The Company
agrees that, prior to the expiration of this Warrant, the Company will at all times have authorized and in reserve, and will keep
available, solely for issuance or delivery upon the exercise of this Warrant, the Ordinary Shares and other securities and properties
as from time to time shall be receivable upon the exercise of this Warrant, free and clear of all restrictions on sale or transfer
and free and clear of all preemptive rights and rights of first refusal.

 

    	- 15 -

    	 

    

 

5.          Replacement of Warrants. Upon
receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and (in
the case of loss, theft or destruction) upon delivery of an indemnity agreement (with surety if reasonably required) in an amount
reasonably satisfactory to the Company, or (in the case of mutilation) upon surrender and cancellation of this Warrant, the Company
will issue, in lieu thereof, a new Warrant of like tenor.

 

6.          Termination Upon Certain Events.
If there shall be a merger or consolidation of the Company with or into another corporation (other than a merger or reorganization
involving only a change in the state of incorporation of the Company or the acquisition by the Company of other businesses where
the Company survives as a going concern), or the sale of all or substantially all of the Company’s capital stock (other
than a reverse merger transaction) or assets to any other person, or the liquidation or dissolution of the Company, then as a
part of such transaction, provisions shall be made so that the Holder shall thereafter be entitled to receive the number of shares
of stock or other securities or property of the Company, or of the successor corporation resulting from the merger, consolidation
or sale, to which the Holder would have been entitled if the Holder had exercised its rights pursuant to this Warrant immediately
prior thereto (and, in such case, appropriate adjustment shall be made in the application of the provisions of this Section 6
to the end that the provisions of Section 3 shall be applicable after that event in as nearly equivalent a manner as may be practicable).

 

7.          Transferability. Without the
prior written consent of the Company, this Warrant shall not be assigned, pledged or hypothecated in any way (whether by operation
of law or otherwise) and shall not be subject to execution, attachment or similar process. Any attempted transfer, assignment,
pledge, hypothecation or other disposition of this Warrant or of any rights granted hereunder contrary to the provisions of this
Section 7, or the levy of any attachment or similar process upon this Warrant or such rights, shall be null and void.

 

8.          No Rights as Stockholder. Until
the exercise of this Warrant, the Holder shall not have or exercise any rights by virtue hereof as a stockholder of the Company.

 

9.          Notices. All notices, requests
and other communications hereunder shall be in writing, shall be either (i) delivered by hand, (ii) made by telex, telecopy or
facsimile transmission, (iii) sent by overnight courier, or (iv) sent by registered mail, postage prepaid, return receipt requested.
In the case of notices from the Company to the Holder, they shall be sent to the address furnished to the Company in writing by
the last Holder who shall have furnished an address to the Company in writing. All notices from the Holder to the Company shall
be delivered to the Company at 53 Davies Street Mayfair, London W1K5JH, England, Attn: President, or such other address as the
Company shall so notify the Holder. All notices, requests and other communications hereunder shall be deemed to have been given
(i) by hand, at the time of the delivery thereof to the receiving party at the address of such party described above, (ii) if
made by telex, telecopy or facsimile transmission, at the time that receipt thereof has been acknowledged by electronic confirmation
or otherwise, (iii) if sent by overnight courier, on the next business day following the day such notices are delivered to the
courier service, or (iv) if sent by registered mail, on the fifth business day following the day such mailing is made.

 

    	- 16 -

    	 

    

 

10.          Amendment, Modification and Waiver.
The Warrants may not be amended or modified, and any provision hereof and thereof may not be waived, without the written consent
of the Holder.

 

11.          Headings. The headings in this
Warrant are for convenience of reference only and shall in no way modify or affect the meaning or construction of any of the terms
or provisions of this Warrant.

 

12.          Governing Law. This Warrant
will be governed by and construed in accordance with and governed by the law of the State of New York, without giving effect to
the conflict of law principles thereof.

 

IN WITNESS WHEREOF, the Company has caused
this Warrant to be duly executed by its authorized officer as of the date first indicated above.

 

	 	MORRIA BIOPHARMACEUTICALS PLC.
	 	 	 
	 	By:	 
	 	Name:	Yuval Cohen
	 	Title:	President

 

    	- 17 -

    	 

    

 

EXHIBIT A

 

PURCHASE FORM

 

To: MORRIA
BIOPHARMACEUTICALS PLC

 

The undersigned pursuant to the provisions
set forth in the attached Warrant (No. W-____), hereby irrevocably elects to purchase _____________________________________ (_____________)
ordinary shares (the “Ordinary Shares”) of MORRIA BIOPHARMACEUTICALS PLC, covered by such Warrant and herewith makes
payment of US $_____________, representing the full purchase price for such shares at the price per share provided for in such
Warrant. The Ordinary Shares for which the Warrant may be exercised or converted shall be known herein as the “Warrant Shares.”

 

The undersigned is aware that the Warrant
Shares have not been and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”)
or any state securities laws. The undersigned understands that reliance by the Company on exemptions under the Securities Act is
predicated in part upon the truth and accuracy of the statements of the undersigned in this Purchase Form.

 

The undersigned represents and warrants
that it is an “accredited investor” as defined in the rules promulgated under the Securities Act.

 

The undersigned represents and warrants
that (1) it has been furnished with all information which it deems necessary to evaluate the merits and risks of the purchase of
the Warrant Shares, (2) it has had the opportunity to ask questions concerning the Warrant Shares and the Company and all questions
posed have been answered to its satisfaction, (3) it has been given the opportunity to obtain any additional information it deems
necessary to verify the accuracy of any information obtained concerning the Warrant Shares and the Company and (4) it has such
knowledge and experience in financial and business matters that it is able to evaluate the merits and risks of purchasing the Warrant
Shares and to make an informed investment decision relating thereto.

 

The undersigned hereby represents and warrant
that it is purchasing the Warrant Shares for its own account for investment and not with a view to the sale or distribution of
all or any part of the Warrant Shares.

 

The undersigned understands that because
the Warrant Shares has not been registered under the Securities Act, it must continue to bear the economic risk of the investment
for an indefinite period of time and the Warrant Shares cannot be sold unless it is subsequently registered under applicable federal
and state securities laws or an exemption from such registration is available.

 

The undersigned agrees that it will in
no event sell or distribute or otherwise dispose of all or any part of the Warrant Shares unless (1) there is an effective registration
statement under the Securities Act and applicable state securities laws covering any such transaction involving the Warrant Shares,
or (2) the Company receives an opinion satisfactory to the Company of the undersigned’s legal counsel stating that such transaction
is exempt from registration. The undersigned consents to the placing of a legend on its certificate for the Warrant Shares stating
that the Warrant Shares has not been registered and setting forth the restriction on transfer contemplated hereby and to the placing
of a stop transfer order on the books of the Company and with any transfer agents against the Warrant Shares until the Warrant
Shares may be legally resold or distributed without restriction.

 

    	- 18 -

    	 

    

 

The undersigned has considered the federal
and state income tax implications of the exercise of the Warrant and the purchase and subsequent sale of the Warrant Shares.

 

By: ______________________________

Dated: ____________________________

 

    	- 19 -

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