Document:

EX-10.10

 Exhibit 10.10 

PURCHASE AND SALE AGREEMENT 

BETWEEN 

SG UPTOWN BUCKHEAD – ATLANTA, LLC 

AS SELLER 

AND 
 RRE
OPPORTUNITY OP II, LP 
 AS PURCHASER 

AS OF MARCH 19, 2015 

 PURCHASE AND SALE AGREEMENT

 THIS PURCHASE AND SALE AGREEMENT (this
“Agreement”) is made as of March 19, 2015 (the “Effective Date”), by and between SG Uptown Buckhead – Atlanta, LLC, (“Seller”), a Georgia limited liability company and RRE Opportunity OP
II, LP, a Delaware limited partnership (“Purchaser”). 
 WITNESSETH: 

In consideration of the Earnest Money (hereinafter defined) and the mutual promises, covenants and agreements hereinafter set forth, and for
other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Purchaser and Seller agree follows: 

ARTICLE 1 

PURCHASE AND SALE 

1.1 Agreement of Purchase and Sale. Subject to the terms and conditions hereinafter set forth, Seller agrees to sell and
convey to Purchaser and Purchaser agrees to purchase all of Seller’s right, title and interest in the following: 
 (a) that certain
tract or parcel of land situated in Atlanta, Fulton County, Georgia, more particularly described on Exhibit A, together with all the rights, privileges, interests, easements, hereditaments and appurtenances pertaining to such parcel of
land, including any right, title and interest of Seller in and to adjacent streets, alleys, gaps or gores, or rights-of-way, if any (the “Land”); 

(b) all the buildings, structures, fixtures and other improvements located on the Land, including specifically that certain apartment complex
known as “Uptown Buckhead” and having an address of 3707 Roswell Road NE, Atlanta, GA 30342 (the “Improvements”); 

(c) all tangible personal property upon the Land or within the Improvements, including specifically, without limitation, appliances,
furniture, carpeting, draperies and curtains, tools and supplies, and other items of personal property owned by Seller and used exclusively in connection with the operation of the Land and the Improvements (the “Personal Property”),
a description of common area personal property, including maintenance inventory, is listed and described on Exhibit N; 
 (d)
all agreements listed and described on Exhibit B (the “Lease Schedule”), pursuant to which any portion of the Land or Improvements is used or occupied by anyone other than Seller (the “Leases”)
together with all refundable deposits paid to Seller under the Leases; and 
 (e) (i) all assignable contracts and agreements listed
and described on Exhibit C (the “Service Contracts Schedule”), relating to the upkeep, repair, maintenance or operation of the Land, Improvements or Personal Property which will extend beyond the date of Closing (as
hereinafter defined) (collectively, the “Service Contracts”) and (ii) all rights, titles, interests and privileges owned by Seller, if any, and related to or used in connection with the ownership, use or operation of the Land
and Improvements, including, without limitation, all assignable warranties and guaranties (expressed or implied) existing with respect to the Improvements or the Personal Property, assignable telephone numbers, telefax numbers, trade names and
trademarks (including the name “Uptown Buckhead” and derivations thereof), the domain name: www.uptownbuckheadapts.com together with related URLs (collectively, the “Domains”), logos, licenses, permits, air rights,
certificates of occupancy, signs, social media accounts and the logo, photo, video and e-brochure files for Uptown Buckhead, telephone listings and numbers, engineering plans and studies, floor plans and landscape plans (collectively, the
“Intangibles”). 

 1.2 Property Defined. The Land, the Improvements, the Personal Property, the
Leases, the Service Contracts and the Intangibles are sometimes referred to collectively as the “Property.” 
 1.3
Permitted Exceptions. Seller will convey good and marketable title (title that a nationally recognized title issuer will insure, at standard promulgated title insurance premium rates) to the Property subject to the matters which
are, or are deemed to be, Permitted Exceptions pursuant to Article 3 hereof. 
 ARTICLE 2 

PURCHASE PRICE & EARNEST MONEY 

2.1 Purchase Price. The purchase price for the property is the sum of Thirty Two Million, Five Hundred Thousand Dollars
($32,500,000) (the “Purchase Price”). 
 2.2 Payment of Purchase Price. The Purchase Price is payable
in full at Closing, without reduction, adjustment or setoff (other than as expressly authorized with respect to the closing adjustments and prorations set forth in Article 9), in cash by federal wire transfer of immediately available funds to a bank
account designated by the Title Insurer in writing to Purchaser prior to Closing. 
 2.3 Earnest Money. Within three
(3) business days after the Effective Date, Purchaser must deposit with Trinity Title Insurance Agency, Inc. (the “Escrow Agent”), the sum of five hundred thousand Dollars ($500,000) (the “Deposit”) in good
funds, either by certified bank or cashier’s check or by federal wire transfer. The Deposit, together with any interest earned on such sums is also referred to herein as the “Earnest Money”. Escrow Agent will invest the Deposit
at a banking institution reasonably acceptable to Purchaser. Such account will have no penalty for early withdrawal, and Purchaser accepts all risks with regard to such account. In the event the Deposit is not actually received by the Escrow Agent
within the time period specified, this Agreement will become null and void and of no further force or effect whatsoever. 

ARTICLE 3 

TITLE AND SURVEY 

3.1 Seller’s Title and Survey Deliveries. 

(a) Prior to, or contemporaneously with, the receipt by Seller of a fully executed counterpart of this Agreement, Seller will deliver to
Purchaser: 
 (i) a copy of Seller’s existing owner’s policy of title insurance; and 

(ii) a copy of Seller’s most recent survey of the Property (the “Existing Survey”). 

(b) Not later than five business (5) days following receipt by Seller of a fully executed counterpart of this Agreement, Purchaser will
cause a nationally recognized title insurer (with Escrow Agent as title agent thereof) to deliver to Purchaser a current commitment for title insurance (the “Title Commitment”) issued by the title insurer, along with legible copies
of all documents of record referred to therein. 

  
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 3.2 Title Examination and Survey. Purchaser shall have the right to examine
Seller’s title to the Property, including, without limitation, matters of survey. In the event Purchaser is not satisfied with any matter (including without limitation as set forth in Section 1.3 hereof) of title disclosed by the Title
Commitment or any matter of survey, Purchaser shall give written notice thereof to Seller by 5:00 p.m. on March 25, 2015. Seller shall have the right, but not the obligation, to cure any such objections to Seller’s title at or prior to
Closing, except that Seller shall be obligated to discharge and remove all mortgage liens, judgment liens, tax liens, mechanics liens and other monetary type liens which can be discharged by the payment of a sum certain which results from or arises
from an act by Seller or as a result of work or materials furnished to the Property at the request of Seller (collectively, the “Monetary Liens”). Seller shall notify Purchaser within two business (2) days after receipt of
Purchaser’s notice raising title objections of whether Seller elects to cure the same, and a failure to notify shall be deemed an election not to cure. If Seller fails or elects not to cure any of Purchaser’s objections prior to Closing
(other than Monetary Liens) or in the event any matter of title or matter of survey which adversely affects the Property arises after the date of the Title Commitment and prior to Closing, Purchaser, at its election, may either (i) terminate
this Agreement, whereupon the Escrow Agent shall return the entire Earnest Money to Purchaser and neither party will have any further rights, duties or obligations hereunder (other than those which expressly survive a termination hereof), or
(ii) waive such objection and consummate the transactions contemplated hereby without reduction in the Purchase Price. For the purposes of this Agreement, the term “Permitted Exceptions” shall mean: (A) current taxes not
yet due and payable; (B) residential (and not commercial) tenants in possession (but only to the extent set forth on the Rent Roll or new leases entered into prior to Closing in accordance with the terms of this Agreement) under unrecorded
residential leases affecting the Property, as residential tenants only without any rights to purchase the Property; and (C) all items of record shown on the Title Commitment or the Existing Survey, or any updates thereto, and (i) not
subject to objection by Purchaser hereunder, (ii) not timely objected to by Purchaser or (iii) timely objected to by Purchaser, with a subsequent waiver or deemed waiver. At the Closing Seller shall convey to Purchaser, good and marketable
fee simple title to the Property, subject only to the Permitted Exceptions. 
 ARTICLE 4 

INFORMATION AND INSPECTION 

4.1 Seller’s Deliveries. Seller has or will promptly make available to Purchaser certain documentation pertaining to
the Property (the “Information Documents”) to the extent available and in the possession or control of Seller, Fogelman Management Group LLC (the “Manager”), which has been retained by Seller to manage the Property,
and/or Seller’s investment advisors retained to provide advice with respect to the ownership, operation, and sale of the Property. The Information Documents are listed and described on Exhibit M. 

4.2 Reliability of Information. Except as otherwise provided herein, the Information Documents and any additional
information requested by Purchaser are being furnished to Purchaser for information purposes only. Purchaser acknowledges and agrees that it is accepting the Information Documents and other documents with the understanding that the information
therein has been compiled by persons and entities other than Seller, and Seller has not verified and does not independently certify that the information contained therein is true, correct or complete in all respects. With respect to the third-party
reports, Purchaser further acknowledges and agrees that it understands and has been informed by Seller that Seller has not and does not adopt or ratify the findings of the third-party consultants who prepared the third-party reports, does not
represent that the third-party reports are accurate in all respects, and does not warrant or represent that the third-party reports can or should be relied upon by Purchaser in making its investment decisions concerning the Property. 

  
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 4.3 Inspection Period Defined. As used in this Agreement, the term
“Inspection Period” means the period commencing March 16, 2015 and ending at 5:00 p.m. Eastern Time on March 27, 2015; provided, however, Purchaser shall not be entitled to enter upon the Property until Purchaser has
complied with all of the obligations of Purchaser as set forth in Section 4.5 (pertaining to Purchaser’s obligation to provide Seller with certain insurance protection with respect to Purchaser’s inspection rights). 

4.4 Purchaser’s Right to Inspect. During the Inspection Period (as hereinafter defined), Purchaser shall have the
right to conduct its due diligence examination, review, inspection and investigation of the Property to determine the suitability of the Property as an investment by Purchaser, at its sole cost and expense. In addition to such other activities that
Purchaser may determine to be appropriate or desirable to carry out such due diligence, Purchaser may at its election undertake any or all of the following activities: (a) examine the books and records maintained by Seller and Manager with
respect to the Property; (b) interview Seller with respect to the operation and management of the Improvements; (c) examine the physical structures and components of the Improvements, including, without limitation, the life safety systems,
electrical, mechanical, and HVAC systems; (d) conduct studies to determine that the Property and the operation thereof complies with all requirements of all governmental agencies and authorities having jurisdiction with respect thereto,
including, without limitation matters of zoning, building code compliance, compliance with the Americans with Disabilities Act; (e) make such studies and investigations, conduct such tests and surveys and engage such independent contractors,
environmental engineers, environmental consultants, and experts as necessary to enable Purchaser to evaluate any and all environmental risks associated with the ownership and operation of the Property and its compliance with “Environmental
Laws” (as defined in Section 4.13); (f) conduct such investigation as is prudent with respect to the requirements of the USA Patriot Act of 2001, the Bank Secrecy Act, Executive Order 13324 (66 Fed. Reg. 49079) and other similar
governmental requirements; (g) investigate all matters relating to the zoning, use and compliance with other applicable laws which relate to the use and occupancy of the Property; and (h) otherwise CONDUCT
A COMPLETE AND THOROUGH INVESTIGATION AND EXAMINATION OF THE PROPERTY. Purchaser intends
to retain such consultants, independent contractors, agents, representatives and other professional advisors (collectively with Purchaser’s affiliates and its affiliates’ employees, “Purchaser Parties”) in connection with
Purchaser’s due diligence of the Property. From and after the Effective Date and until the earlier to occur of termination of this Agreement or Closing, Purchaser and Purchaser Parties will have the right during normal business hours, upon no
less than twenty-four (24) hours’ notice to Seller, to enter upon the Property for the purpose of examining, inspecting and testing the Property in accordance with this Section 4.4. Seller shall reasonably cooperate with Purchaser in
scheduling such inspections and investigations and Seller shall have the right, but not the obligation, to accompany Purchaser during such inspections and investigations. Purchaser and its agents and representatives will at all such times maintain
the insurance coverages required under this Section 4.5. In addition to providing such 24 hour notice, Purchaser will provide Seller with a general description of such inspections and any anticipated need to interview specified personnel.
Purchaser will not unreasonably disturb or interfere with the operation, management or use of the Property by Seller, Manager or the tenants under the Leases. Neither Purchaser nor any of its agents or contractors may conduct so-called invasive
and/or “Phase II” environmental testing on or about the Property without the prior written consent of Seller, which consent may be given or withheld at Seller’s reasonable discretion and may be further conditioned upon such adequate
bonds and additional security as Seller may reasonably require to protect itself and the Property from loss, damage or injury. 

  
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 4.5 Indemnity and Liability Insurance. Purchaser will be responsible for any
and all losses, damages, charges and other costs associated with its examinations, inspections, and other activities conducted as a part of its due diligence, and immediately after conducting any such activities, Purchaser must return the Property
to substantially the same condition as existed prior to such examinations, inspections and other activities. Purchaser must discharge any liens that attach against the Property as a result of its inspections by payment, bonding off or otherwise
removing such liens promptly on demand. Purchaser agrees to indemnify and hold harmless Seller from and against any and all claims, charges, actions, costs, suits, damages, injuries, or other liabilities which arise, either directly or indirectly,
from Purchaser’s or Purchaser Parties’ entry onto the Land and Improvements prior to Closing, provided such indemnification shall exclude any such claims, charges, actions, costs, suits, damages, injuries, or other liabilities arising from
(i) the mere discovery or disclosure of existing conditions that are not exacerbated by Purchaser or Purchaser Parties and (ii) the gross negligence or willful misconduct of Seller . In order further to protect Seller from any such loss,
damage, charge and other costs, Purchaser has provided Seller with evidence of liability insurance which complies with the requirements set forth on Exhibit D. Purchaser’s liability pursuant to this Section 4.5 will survive
any termination of this Agreement for any reason whatsoever. 
 4.6 Purchaser’s Right to Terminate. At any time
prior to the expiration of the Inspection Period, Purchaser has the right to elect to terminate this Agreement if Purchaser determines, in its sole discretion, not to proceed with the purchase of the Property. Any such election must be in writing,
and upon timely receipt thereof by Seller, $400,000 of the Deposit together with all interest accrued on the entire Deposit will be refunded in full to Purchaser and $100,000 of the Earnest Money will be paid in full to Seller unless Seller fails or
elects not to cure any of Purchaser’s title and survey objections prior to Closing and/or the Purchaser’s Phase I Environmental Assessment reflects evidence of potential environmental conditions or issues in connection with the Property,
in which case the $100,000 of Earnest Money will be paid in full to Purchaser; and thereupon this Agreement will be null and void and of no further force and effect whatsoever, except for the terms of this Agreement which expressly survive
termination by Purchaser. If Purchaser does not exercise the right to elect to terminate this Agreement, the Earnest Money will become non-refundable at 5:00 p.m. on March 27, 2015, except as otherwise provided herein, and such payment will
credited against the Purchase Price at Closing. 
 4.7 Continuing Agreement. If Purchaser does not elect to terminate
this Agreement prior to the expiration of the Inspection Period, then: (a) this Agreement will remain in full force and effect, and (b) PURCHASER WILL BE DEEMED
TO HAVE ACCEPTED THE PROPERTY ON AN “AS IS” BASIS, SUBJECT
ONLY TO THE TERMS OF THIS AGREEMENT AND THE TERMS AND CONDITIONS
SET FORTH IN THE DOCUMENTS EXECUTED AND DELIVERED BY SELLER AT
CLOSING (“SELLER’S CLOSING DOCUMENTS”), and (c) Purchaser will be deemed and agreed to accept title to the
Property subject to the Permitted Exceptions, subject to Purchaser’s right to object to matters of title and survey arising after the date of the Title Commitment in accordance with Section 3.2. In the event Purchaser does not elect to
terminate this Agreement, then Seller’s sole obligation with respect to the physical condition of the Property will be to deliver possession thereof to Purchaser in substantially the same physical condition, normal wear and tear excepted, as
existed as of the expiration of the Inspection Period, subject to the requirements set forth in Article 7. PURCHASER HAS AGREED TO ACCEPT POSSESSION
OF THE PROPERTY AT CLOSING ON AN “AS IS” BASIS. SELLER AND
PURCHASER AGREE THAT THE PROPERTY WILL BE SOLD “AS IS” AND
EXCEPT AS SET FORTH IN ARTICLE 5, SUCH SALE WILL BE WITHOUT
REPRESENTATION OR WARRANTY BY SELLER OF ANY KIND, EXPRESS OR IMPLIED
(INCLUDING, WITHOUT LIMITATION, WARRANTY OF INCOME POTENTIAL, OPERATING EXPENSES, USES,
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE), AND SELLER HEREBY DISCLAIMS
AND RENOUNCES ANY SUCH REPRESENTATION OR WARRANTY. 

  
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 4.8 “AS IS” Defined. As used in this Agreement, the term
“AS IS” means, as and where the Property presently exists as of the expiration of the Inspection Period, including, without limitation, all faults, defects, claims,
liens, and other conditions of every kind or description with respect to (a) the physical and environmental condition of the Property, including defects seen and unseen and conditions natural and artificial, (b) the Permitted Exceptions,
(c) the Service Contracts, (d) the financial operation and condition of the Property, (e) compliance with all laws, ordinances, rules and regulations to which the Property is subject, (f) all claims, demands, actions or causes of
action that relate in any way to the property or the ownership and operation thereof, whether known or unknown, and (g) all other matters related in any way to the ownership and operation of the Property, whether known or unknown, subject to,
however, and without limitation of any express terms and provisions of this Agreement. 
 4.9 Confidential Information.
Purchaser acknowledges and agrees that Seller, Manager and certain of their affiliates may have the following confidential information concerning the Property: internal evaluations and appraisals, loan files pertaining to mortgage financing
obtained or considered for the Property by Seller or its agents, advisors, and contractors, personnel files related to present and past employees of Seller (if any) and Manager and their affiliates, and privileged attorney-client communications.
Purchaser hereby disclaims any interest in examining any such confidential information and agrees that such information does not constitute a part of the Information Documents and that the withholding of such information is not in violation of any
duty or obligation owed to Purchaser under this Agreement or otherwise, regardless of the content thereof. 
 4.10
Intentionally Omitted. 
 4.11 Hazardous Materials. Except as expressly set forth in
Section 5.5, Seller makes no representation whatsoever regarding: (a) compliance with “Environmental Laws” as that term is hereinafter defined and (b) the presence, location or scope of any materials, waste, contaminates,
pollutants, mold, fungus, bacteria or other substances or conditions which are toxic, dangerous, radioactive, disease causing, carcinogenic, infectious, caustic, or contain petroleum products or by-products, asbestos, heavy metals, or are defined as
toxic, dangerous to health or otherwise hazardous by reference to any Environmental Laws. As used in this Agreement, “Environmental Laws” means collectively Comprehensive Environmental Response, Compensation and Liability Act of
1980 (commonly known as “CERCLA”), as amended, the Superfund Amendments and Reauthorization Act (commonly known as “SARA”), the Resource Conservation and Recovery Act (commonly known as “RCRA”), and
any other federal, state or local environmental legislation or ordinances applicable to the Property. 
 4.12 Availability of
Information. Purchaser acknowledges that it understands that the Information Documents and other information concerning the Property may be located in more than one location. PURCHASER ASSUMES
THE RESPONSIBILITY TO NOTIFY SELLER OF THE FILES AND DOCUMENTS PURCHASER
WISHES TO INSPECT. ALL SUCH FILES AND DOCUMENTS (OTHER THAN CONFIDENTIAL
INFORMATION AS DESCRIBED IN SECTION 4.9) WILL BE MADE AVAILABLE FOR
PURCHASER’S INSPECTION, REVIEW AND COPYING, AND TO THE EXTENT POSSIBLE
TO DO SO WITHOUT UNDUE BURDEN OR EXPENSE, SELLER WILL USE REASONABLE
EFFORTS TO COLLECT SUCH DOCUMENTS AND FILES FOR SUCH INSPECTION, REVIEW
AND COPYING AT THE PROPERTY. 

  
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 4.13 Information From Agents. In making its investment decisions with
respect to the Property, including its decision to elect or not elect to terminate this Agreement during the Inspection Period, Purchaser may interview Manager, the other parties to the Service Contracts, and Seller’s employees, agents,
contractors, and investment advisors. Although Seller is willing to cooperate with Purchaser in connection with its due diligence activities and will instruct Manager and Seller’s employees (if any), agents, contractors, and investment advisors
to cooperate with Purchaser and its agents, contractors and consultants, Seller is unwilling to sell the Property to Purchaser unless there is a clear understanding between the parties that Seller will not have any liability with respect to any
opinions, statements, warranties, representations, or other information furnished to Purchaser by such employees, agents, contractors, and investment advisors, unless expressly incorporated in this Agreement as Seller’s representations.
Accordingly, Purchaser releases and discharges Seller from any and all damage, injury, or loss suffered by Purchaser as a result of: (a) any and all such statements, information, opinions and other matters furnished by such employees, agents,
contractors, and investment advisors of Seller, except to the extent expressly incorporated in this Agreement as a representation of Seller, and (b) any omission to disclose information or withholding of information by any such employees,
agents, contractors, and investment advisors of Seller, unless done at the express direction of an officer of Seller and Purchaser was not aware of such omission or withholding. 

ARTICLE 5 

SELLER’S WARRANTIES & REPRESENTATIONS 

5.1 Seller’s Authority, Etc. Seller has been duly organized and is validly existing and in good standing under the
laws of the State of Georgia. Seller is duly qualified to do business and is in good standing in the State of Georgia. Seller has the full right and authority to enter into this Agreement and to transfer all of the Property to be conveyed by Seller
and to consummate or cause to be consummated the transactions contemplated herein in accordance with the terms hereof. The person signing this Agreement on behalf of Seller is authorized to do so and may bind the Seller without the joinder or
co-signature of any other person. 
 5.2 No Litigation. There is no action, suit, arbitration, unsatisfied order or
judgment, governmental investigation or proceeding pending or, to Seller’s actual knowledge, threatened against or involving the Property, Seller or the transaction contemplated by this Agreement. 

5.3 The Leases. Seller is the lessor or landlord or the successor lessor or landlord under the Leases. Except as set
forth in the Lease Schedule, there are no leases or occupancy agreements to which Seller is a party affecting the Property. There are no lease brokerage agreements, leasing commission agreements, or other agreements providing for payments of any
amounts for leasing activities or procuring tenants with respect to the Property other than as disclosed in Exhibit C (Seller to pay all commissions, due, payable or owing, with respect to Leases entered into or options to renew
exercised prior to Closing, where the tenant has taken occupancy). All of the information set forth in the Lease Schedule is true, accurate, and complete in all material respects and true and correct copies of the Leases have been provided or made
available to Purchaser. All the Leases are in full force and effect and, to Seller’s knowledge, free from material defaults. No tenant has been given free rent, any concession in the payment of rent or any abatement of rent (except as set forth
in the Lease Schedules). No tenant under any Lease is entitled to any leasehold improvement allowance, or work to be performed by the landlord thereunder which has not been performed or payment against its obligation to pay rent; and no Lease grants
and no tenant or other occupant has any right of first refusal or option to purchase the Property or any portion thereof. There are no commercial tenants of the Property, all tenancies being residential in nature. The remaining term of any
tenant’s lease does not exceed thirteen (13) months in the aggregate. 

  
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 5.4 Notices of Violations or Actions. Seller has not received any written
notification from any governmental or public authority (a) that the Property is in violation of any applicable fire, health, building, use, occupancy or zoning laws where such violation remains outstanding, or (b) that any work is required
to be done upon or in connection with the Property, where such work remains outstanding. Seller has not received any written notification from any governmental or public authority that the Property is the subject of any pending or threatened
condemnation proceedings. 
 5.5 Environmental Notices. Except as set forth in any environmental assessment reports in
Seller’s possession and disclosed to Purchaser or as otherwise disclosed to Purchaser, to Seller’s knowledge, Seller has received no written notification that any governmental or quasi-governmental authority has determined that there is
any violation of any Environmental Laws. 
 5.6 Service Contracts. The Service Contracts Schedule (Exhibit
C) is a true, correct, and complete list of the Service Contracts in effect with respect to the Property as of the Effective Date of this Agreement and true and complete copies of all Service Contracts have been provided to Purchaser. Except
for the Service Contracts listed on the Service Contract Schedule, there are no service, management, maintenance or other similar type agreements or contracts relating to the operation, management or maintenance of the Property which shall survive
the Closing or for which Purchaser shall have any liability or obligation. All of the Service Contracts are in full force and effect and, to Seller’s knowledge, free from material default. The Service Contracts will be assigned to Purchaser at
Closing. 
 5.7 No Insurance Notice. Seller has not received any written notice from any insurance company or bonding
company of any defects or inadequacies in the Property or any part thereof, which would adversely affect the insurability of the same or cause the imposition of extraordinary premiums or charges therefor or of any termination or threatened
termination of any policy of insurance or bond. 
 5.8 No Underground Tank. To Seller’s actual knowledge, there
are no underground storage tanks in, on or under the Property. 
 5.9 No Personality Liens. None of the Personal
Property is subject to any lease or title retention agreement, except any equipment leases listed on the Exhibit C. 
 5.10
Bankruptcy. Seller has not (i) made a general assignment for the benefit of creditors, (ii) filed any voluntary petition in bankruptcy or suffered the filing of any involuntary petition by Seller’s creditors,
(iii) suffered the appointment of a receiver to take possession of all, or substantially all, of Seller’s assets, which remains pending as of the Effective Date, (iv) suffered the attachment or other judicial seizure of all, or
substantially all, of Seller’s assets, which remains pending as of the Effective Date, or (v) made an offer of settlement, extension or composition to its creditors generally. 

5.11 Domains. To Seller’s actual knowledge, the Domains are in good standing and not expired and Seller has
unencumbered rights in the Domains and authority to transfer the Domains to Purchaser at the Closing. To Seller’s actual knowledge neither Seller nor Seller’s Representatives have registered or control any domain names that incorporate
“Uptown Buckhead” and any symbol or design related thereto other than the Domains. 

  
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 5.12 Financial Information. Seller represents and warrants to Seller’s
knowledge, the Information Documents prepared by Seller that provide financial information and income and expense data with respect to the Property are accurate and complete in all material respects. 

5.13 Survival of Seller’s Representations and Warranties. The representations and warranties of Seller set forth in
this Article 5 will survive Closing for a period of one hundred eighty (180) days. No claim for a breach of any representation or warranty of Seller will be actionable or payable (a) if the breach in question results from or is based on a
condition, state of facts or other matter which was known to Purchaser prior to Closing, (b) unless the valid claims for all such breaches collectively aggregate more than $25,000, in which event the full amount of such valid claims will be
actionable, up to but not exceeding the amount of the Liability Cap (as defined below), and (c) unless written notice containing a description of the specific nature of such breach will have been given by Purchaser to Seller prior to the
expiration of said one hundred eighty (180) day period and an action has been filed in a court of competent jurisdiction by Purchaser against Seller within one (1) year of Closing. As used herein, the term “Liability Cap”
will mean the total aggregate amount of five hundred thousand dollars ($500,000). In no event will Seller’s aggregate liability to Purchaser for breach of any representation or warranty of Seller in this Agreement exceed the amount of the
Liability Cap. The Liability Cap does not include reasonable attorney’s fees and costs of litigation. 
 5.11 Knowledge
Defined. References to the “knowledge” of Seller shall refer only to the actual knowledge of Robin Riecke and Emily-May Richards, and shall not be construed, by imputation or otherwise, to refer to the knowledge of Seller, or any
affiliate of Seller, to Manager, or to any other officer agent, manager, representative, advisor, or employee of Seller or Manager, or an affiliate thereof or to impose upon such designated employee any duty to investigate the matter to which such
actual knowledge, or the absence thereof, pertains. 
 ARTICLE 6 

PURCHASER’S WARRANTIES & REPRESENTATIONS 

6.1 Purchaser’s Authority, Etc. Purchaser has the full right, power and authority to purchase the Property as
provided in this Agreement and to carry out Purchaser’s obligations hereunder, and all requisite action necessary to authorize Purchaser to enter into this Agreement and to carry out its obligations hereunder have been, or by the Closing will
have been, taken. The person signing this Agreement on behalf of Purchaser is authorized to do so and may bind the Purchaser without the joinder or co-signature of any other person. 

6.2 No Litigation. There is no action, suit, arbitration, unsatisfied order or judgment, government investigation or
proceeding pending against Purchaser which, if adversely determined, could individually or in the aggregate interfere with the consummation of the transaction contemplated by this Agreement. 

6.3 Sophisticated Investor. Purchaser is a sophisticated Purchaser that specializes in the investment in and ownership
and operation of income producing commercial real estate in geographically diverse markets. As such, it is a sophisticated real estate owner, investor, and manager with particular experience in the acquisition, ownership, and operations of
properties similar to the Property. Purchaser further warrants and represents that it has the ability through its own employees, or through agents, independent contractors, consultants or other experts with whom it has a relationship, to evaluate
fully the investment characteristics of the Property and to assess fully all issues pertaining to title to the Property, the assumption by Purchaser of the Leases and the Service Contracts, the value of the Property,

  
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the ability of Purchaser to obtain financing, the physical and environmental condition of the Property, and the compliance of the Property and the operation thereof with all applicable laws,
rules, and regulations of any and all governmental agencies having jurisdiction with respect thereto, and the past and future economic performance of the Property. Accordingly, Purchaser warrants and represents that except for the express warranties
and representations made by Seller in Article 5 hereof and as contained in the documents and instruments executed and delivered by Seller at Closing, Purchaser has not relied and will not rely upon any warranty, representation, statement of fact, or
other information made by or furnished on behalf of Seller or any of its employees, affiliates, agents, Manager, investment advisor, consultants, contractors, or others, but is relying solely upon its own investigations, assessments, evaluations,
and those of its own employees, agents, independent contractors, consultants, investment advisors and other experts with whom it is dealing in connection with the transactions contemplated by this Agreement. 

6.5 OFAC Regulations. 

(a) Neither Purchaser nor the owner of any controlling interest in Purchaser: 

 

	 	(1)	is listed on the Specially Designated Nationals and Blocked Persons List maintained by the office of Foreign Assets Control, Department of the Treasury (“OFAC”) pursuant to the Executive Order
No. 13224, 66 Fed. Reg. 49079 (Sept. 25, 2001) (the “Order”) and/or on any other list of terrorists or terrorist organizations maintained pursuant to any of the rules and regulations of OFAC or pursuant to the Order and any
other applicable rules, regulations, legislation or orders (such lists are collectively referred to as the “Lists”); 

  

	 	(2)	will transfer or permit the transfer of any controlling interest in Purchaser to any person or entity who is, or any of whose beneficial owners are, listed on the Lists. 

(b) Purchaser hereby covenants and agrees that if Purchaser obtains knowledge that Purchaser or any owner of any controlling interest in
Purchaser becomes listed on the Lists or is indicted, arraigned, or custodially detained on charges involving money laundering or predicate crimes to money laundering, Purchaser will immediately notify Seller in writing, and in such event, Seller
will have the right to terminate this Agreement without penalty or liability to Seller immediately upon delivery of written notice thereof to Purchaser, in which event the Earnest Money will promptly be returned to Purchaser and neither party will
have any further rights or obligations under this Agreement, except for such as specifically survive termination. 
 6.6
Survival of Purchaser’s Representations and Warranties. The representations and warranties of Purchaser set forth this Agreement will survive Closing and will be a continuing representation and warranty for a period of one
hundred eighty (180) days. No claim for a breach of any representation or warranty of Purchaser will be actionable or payable (a) if the breach in question results from or is based on a condition, state of facts or other matter which was
known to Seller prior to Closing and (b) unless written notice containing a description of the specific nature of such breach will have been given by Seller to Purchaser prior to the expiration of said one hundred eighty (180) day period
and an action has been filed in a court of competent jurisdiction by Seller against Purchaser within one (1) year of Closing. 

  
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 ARTICLE 7 

COVENANTS AND EXECUTORY AGREEMENTS 

PENDING CLOSING 

7.1 Intentionally Deleted. 

7.2 Operations Pending Closing. From and after the Effective Date and continuing through Closing, Seller will operate and
maintain the Property in the ordinary course of business substantially in accordance with Seller’s practices as of the Effective Date, including, without limitation, perform when due all of Seller’s obligations under all applicable laws.

 7.3 New Leases. At any time during the term of this Agreement, Manager, on behalf of Seller, may enter into new
Leases or renewals of existing Leases without the consent or approval of Purchaser provided that such new Lease or renewal (i) is made upon the current (meaning during the prior ninety (90) day period) economic terms offered by Manager to
new or renewal tenants, including, without limitation, any free rent or other tenant inducements currently offered by Manager, (ii) is made on the standard Lease form employed by the Manager at the Property, and (iii) is for a term,
including options to renew, not in the aggregate in excess of thirteen (13) months. 
 7.4 Intentionally Deleted.

 7.5 Intentionally Deleted. 

7.6 No 3rd Property Grant. Other than expressly provided for
in this Agreement, it will not, without the prior written consent of Purchaser, grant any rights or other privileges or in with respect to the Property or any portion thereof or grant, or consent to or waive the right to object to, any easements,
covenants or restrictions affecting all or any portion of the Property. 
 7.7 Retention of Personality. No
Personal Property shall be removed from the Property unless the same is replaced with similar items of at least equal quality prior to the Closing. 

7.8 Consistent Action. Seller will not, by reason of any action or omission of Seller, cause
or permit any representation or warranty to become not true, incorrect or inaccurate. 
 7.9 Continuing
Undertaking. Seller will promptly notify Purchaser it if discovers, determines or is notified that any warranty or representation made by Seller hereunder is not (or is no longer) true (each, a “R&W Breach”). To the
extent that any such R&W Breach would have a material adverse effect on the Property or the transaction contemplated by this Agreement, as determined by Purchaser in its sole and absolute discretion, Purchaser shall have the right to terminate
this Agreement in accordance with Section 10.2. 
 7.10 Zoning. Seller shall not initiate, consent to, approve
or otherwise take any action with respect to the zoning, or any other governmental rule or regulation presently applicable to all or any part of the Property. 

7.11 No Marketing. During the term of this Agreement, Seller shall not market the Property to third parties nor
enter into any agreement to sell or option the Property or any portion thereof to any third party. 

  
 10 

 7.12 Service Agreements. Seller shall not enter into any contract, commitment or
agreement affecting Property without Purchaser’s consent. Seller will terminate, at Seller’s sole cost and expense, its management agreement with the Manager. 

7.13 Post-Closing Covenants. After the Closing, Seller agrees that it will take such actions and properly execute and deliver to
Purchaser such further instruments of assignment, conveyance and transfer as may be necessary to assure, complete and evidence the full and effective transfer and conveyance of Property, including, without limitation, taking any actions or executing
any documents required to transfer the Domains to Purchaser and required by vendors under the Service Contracts after receipt of the Vendor Notices described in Section 9.2(g) below.  

ARTICLE 8 

CONDITIONS TO CLOSING 

8.1 Conditions to Purchaser’s Obligations. Purchaser’s obligation to close the purchase and sale of the
Property is conditioned upon each and every one of the foregoing conditions precedent: 
 (a) Seller has performed and observed in all
material respects all covenants and agreements to be performed by Seller; 
 (b) All of the representations and warranties of Seller
contained in this Agreement are true and correct in all material respects as of the date of Closing, as evidenced by the delivery of the certification described in Section 9.2(n); and 

(c) Seller’s title to the Property is good, marketable and insurable as set forth in Sections 1.3 and 3.2 hereof. 

8.2 Conditions to Seller’s Obligations. Seller’s obligation to close the purchase and sale of the Property is
conditioned upon each and every one of the foregoing conditions precedent: 
 (a) Purchaser has performed and observed in all material
respects all covenants and agreements to be performed by Purchaser under this Agreement; and 
 (b) All of the representations and
warranties of Purchaser contained in this Agreement are true and correct in all material respects as of the date of Closing, as evidenced by the delivery of the certification described in Section 9.3(d). 

ARTICLE 9 

CLOSING 

9.1 Time and Place. The consummation of the transaction contemplated hereby (“Closing”) will be held via
the mails, internet e-mail, and the use of electronic transfer of funds, with the Escrow Agent acting as closing agent, at 12:30 p.m. Eastern Time on March 30, 2015 (the “Closing Date”), provided, however, if the funds are not
disbursed by the Escrow Agent by 2:00 p.m. Eastern Time on March 30, 2015, the Closing Date shall automatically be extended until March 31, 2015. At Closing, Seller and Purchaser must perform their respective obligations set forth in this
Article 9 and elsewhere in this Agreement (to the extent not previously performed), and the performance by each of them will be a concurrent condition of the performance of the obligations of the other. 

  
 11 

 9.2 Seller’s Obligations at Closing. At Closing, Seller will: 

(a) Execute and deliver to Purchaser, in recordable form, a Limited Warranty Deed in the form of Exhibit E (the
“Deed”), conveying the Land and Improvements, subject only to the Permitted Exceptions; 
 (b) execute and deliver to
Purchaser the Bill of Sale in the form of Exhibit F (the “Bill of Sale”), conveying the Personal Property without warranty of title (except for Seller’s acts) or use and without warranty, expressed or implied, as
to merchantability and fitness for any purpose; 
 (c) execute and deliver to Purchaser the Assignment and Assumption of Leases in the form
attached hereto as Exhibit G, pursuant to which Seller will transfer and assign its interest in the Leases to Purchaser and Purchaser will assume all obligations of Seller with respect thereto first arising after Closing; 

(d) execute and deliver the Assignment and Assumption of Service Contracts in the form attached hereto as Exhibit H pursuant to
which Seller will assign (to the extent its interests are assignable) its interest in the Service Contracts to Purchaser, and Purchaser will assume all Seller’s obligations with respect thereto first arising after Closing; 

(e) execute and deliver the General Assignment of Intangibles in the form attached hereto as Exhibit I pursuant to which Seller
will assign its interest in the Intangibles to Purchaser; 
 (f) join with Purchaser in the execution of a Tenant Notice in the form of
Exhibit J which Seller covenants and agrees to send to each tenant on the Property (collectively, the “Tenants”) listed on the Lease Schedule delivered to Purchaser at Closing informing such Tenant of the sale of the
Property and of the assignment to Purchaser of Seller’s interest in, and obligations under, the Leases (including, if applicable, any refundable deposits) and directing that all rent and other sums payable after the Closing under each such
Lease will be paid as set forth in the notice; 
 (g) execute and send a Vendor Notice in the form of Exhibit K to each of the
parties providing services to the Property pursuant to the Service Contracts; 
 (h) deliver to the Escrow Agent such evidence as the Escrow
Agent acting as title agent for the title insurer may reasonably require as to Seller’s authority to sell the Property and the authority of the person or persons executing documents on behalf of Seller; 

(i) deliver to Purchaser a Certificate of Non-Foreign Status in the form of Exhibit L, duly executed by Seller stating that
Seller is not a “foreign person” as defined in the Federal Foreign Investment in Real Property Tax Act of 1980 and the 1984 Tax Reform Act; 

(j) cause the delivery, at the Property, of the Leases, Service Contracts and licenses and permits, if any, in the possession of Seller or
Seller’s agents, together with such leasing and property files and records which are material in connection with the continued operation, leasing and maintenance of the Property; 

  
 12 

 (k) deliver to Purchaser possession and occupancy of the Property, subject to the Permitted
Exceptions; 
 (l) execute and deliver a closing statement (the “Closing Statement”) for the purchase and sale of the
Property, in form and substance reasonably acceptable to Purchaser and Seller; 
 (m) deliver to the Escrow Agent any customary forms or
documents of assurance required by the title insurer to issue to the Purchaser an Owner Policy of Title Insurance subject to the Permitted Exceptions with all endorsements requested by Purchaser, as applicable, (i) PT-61 (transfer tax form to
be filed with deed); (ii) G-2RP (Georgia withholding form); (iii) either (A) Affidavit of Seller’s Gain or (B) Affidavit of Seller’s Residence; and (iv) an Affidavit Regarding Commercial Real Estate Brokers
(“Broker Affidavit”) and a Lien Waiver Affidavit from the Broker sufficient to cause the Escrow Agent. 
 (n) execute and
deliver a certificate reaffirming that the representations and warranties of Seller contained in this Agreement are true and correct in all material respects as of the Closing Date and attaching thereto an updated Lease Schedule certified by Seller
to be true and correct in all material respect as of the Closing Date; and 
 (o) deliver such additional documents as are reasonably
required to consummate the transaction contemplated by this Agreement, provided such additional documents do not impose upon Seller any additional obligations or expenses not otherwise provided for hereunder. 

9.3 Purchaser’s Obligations at Closing. At Closing, Purchaser will: 

(a) pay to Seller the full amount of the Purchase Price in the manner and subject to the adjustments and credits described in Article 2 and
Section 9.4; 
 (b) join Seller in execution of the instruments described in subsections 9.2(c), (d), (e), (f), (g), (l) and (m);

 (c) deliver to Seller such evidence as Seller’s counsel and/or the title insurer may reasonably require as to the authority of the
person or persons executing documents on behalf of Purchaser; 
 (d) execute and deliver a certificate reaffirming that the representations
and warranties of Purchaser contained in this Agreement are true and correct in all material respects as of the Closing Date; and 
 (e)
deliver such additional documents as are reasonably required to consummate the transaction contemplated by this Agreement, provided such additional documents do not impose upon Purchaser any additional obligations or expenses not otherwise provided
for hereunder. 
 9.4 Credits and Prorations. 

(a) The following will be apportioned with respect to the Property as of 12:01 a.m. (local time at the Property), on the day of Closing, as if
Purchaser were vested with title to the Property during the entire day upon which Closing occurs: 

  
 13 

 (i) rents and other collected revenues and reimbursements under the Leases, as and when
collected (the term “rents” as used in this Agreement includes all payments due and payable by Tenants under the Leases); 

(ii) taxes (including personal property taxes on the Personal Property) and assessments levied against the Property; 

(iii) amounts due under the Service Contracts; 

(iv) gas, water, electricity and other utility charges for which Seller is liable, if any, such charges to be apportioned at Closing on the
basis of the last invoices preceding Closing and adjusted post-Closing to true-up the prorations and adjustments based on the amounts shown on the invoices subsequently received; 

(v) any other operating expenses, pre-paid expenses, or other items pertaining to the Property which are customarily prorated between a
purchaser and a seller in the area in which the Property is located; and 
 (vi) any other income (including but not limited to any
up-front signing bonuses and other prepayments that would be considered deferred revenue under generally accepted accounting principles). 

(b) Notwithstanding anything contained in the foregoing provisions: 

(i) At Closing, Seller will credit to the account of Purchaser the amount of any and all refundable deposits actually held by Seller pursuant
to the Leases (to the extent such deposits are not applied against delinquent rents, damage or otherwise prior to Closing). Seller will be entitled to receive and retain such refundable cash and deposits posted with utility companies serving the
Property; 
 (ii) If taxes and assessments for the year of Closing are not known or cannot be reasonably estimated, taxes and assessments
will be prorated as of Closing based on taxes and assessments for the year prior to Closing. Any additional taxes and assessments relating to the year of Closing or prior years arising out of a change in the use of the Land or the Improvements by
Purchaser or a change in ownership will be assumed by Purchaser effective as of Closing and paid by Purchaser when due and payable, and Purchaser will indemnify, defend, and hold Seller harmless for, from, and against any and all such taxes, which
indemnification obligation will survive the Closing. When the amount of the taxes and assessments for the year of Closing is finally ascertained, the parties shall true-up the amounts apportioned at Closing and make all necessary adjustments by
appropriate payments between the parties within thirty (30) days of receipt of the tax bill for such period; 
 (iii) Seller will
receive a prorata portion of all available discounts for the payment of property taxes for the year of Closing; 
 (iv) Seller shall
receive a credit at Closing for tenant reimbursements due and payable by tenants after Closing with respect to costs incurred by Seller prior to Closing for the provision of water and sewer to the Property. Such credit will be based on the average
collections for said items over the period beginning March 1, 2014 and ending February 28, 2015; 
 (v) The Personal Property is
included in this sale, without further charge; provided, however, Purchaser will be solely responsible for all sales and use taxes; and 

  
 14 

 (vi) Unpaid and delinquent rent collected by Seller and Purchaser after the date of Closing will
be delivered as follows: (a) if Seller collects any unpaid or delinquent rent for the Property, Seller will, within fifteen (15) days after the receipt thereof, deliver to Purchaser any such rent which Purchaser is entitled to hereunder
relating to the date of Closing and any period thereafter, and (b) if Purchaser collects any unpaid or delinquent rent from the Property, Purchaser will, within fifteen (15) days after the receipt thereof, deliver to Seller any such rent
which Seller is entitled to hereunder relating to the period prior to the date of Closing. Seller and Purchaser agree that all rent received by Seller or Purchaser will be applied first to rents that were due and payable in the month of Closing;
second, to those rents that are due and payable after Closing; and third, to those rents that are due and payable prior to the month of Closing. Purchaser will use commercially reasonable efforts after Closing to collect all rents in the usual
course of Purchaser’s operation of the Property for a period of three (3) months, but Purchaser will not be obligated to institute any lawsuit or other collection procedures to collect delinquent rents. In the event that there shall be any
rents or other charges under any Leases which, although relating to a period prior to Closing, do not become due and payable until after Closing or are paid prior to Closing but are subject to adjustment after Closing, then any rents or charges of
such type received by Purchaser or its agents or Seller or its agents subsequent to Closing will, to the extent applicable to a period extending through the Closing, be prorated between Seller and Purchaser as of Closing and Seller’s portion
thereof will be remitted promptly to Seller by Purchaser without reduction for any costs of collection or processing; and 
 (vii) If final
prorations cannot be made at Closing for any item being prorated, then Purchaser and Seller agree to allocate such items on a fair and equitable basis as soon as invoices or payment information is available, with final adjustment to be made as soon
as reasonably possible after the Closing but in no event later than ninety (90) days after Closing, to the effect that income and expenses are received and paid by the parties on an accrual basis with respect to their period of ownership.
Payments in connection with the final adjustment shall be due within 30 days of written notice, which notice shall contain in reasonable detail a calculation evidencing such adjustment. Purchaser or Seller, as applicable, shall have reasonable
access to, and the right to inspect such other party’s books to confirm the final prorations. Notwithstanding the foregoing, in the event the property taxes and assessments for the year of Closing is not available until after such 90-day
period, the parties shall make a final adjustment for the property taxes within thirty (30) days of receipt of the tax bill for such period. 

(c) In connection with the prorations described in this Section 9.4, Seller shall prepare a closing statement with the prorations and
adjustments required by this Agreement and submit the same to Purchaser for review and approval by 2:00 p.m. on March 26, 2015. 
 (d)
The provisions of this Section 9.4 will survive the Closing. 
 9.5 Closing Costs. Purchaser will be responsible
for the cost of (i) preparation of the Title Commitment and the ALTA Owner Policy of Title Insurance issued by the title insurer to Purchaser at Closing (the “Title Policy”) and of any endorsements to the Title Policy which
Purchaser may elect to obtain from the title insurer, (ii) any update of the Existing Survey or any new survey, (iii) any financing, including without limitation any mortgage taxes and any Loan Policy of Title Insurance and
(iv) one-half ( 1⁄2) of all escrow fees. Seller shall pay (i) the cost of any prepayment penalties on any existing mortgages, (ii) preparation
and recording of any corrective instruments as to Seller’s title to the Property, including, all instruments required to discharge all Monetary Liens, (iii) transfer tax and (iv) one-half
( 1⁄2) of all escrow fees. Seller and Purchaser will each pay the costs of their respective attorneys’ fees. 

  
 15 

 ARTICLE 10 

DEFAULT 

10.1 Default by Purchaser. If Purchaser shall default in the performance of its obligations under this Agreement or
otherwise fail to consummate this Agreement for any reason other than Seller’s default or the permitted termination of this Agreement by either Seller or Purchaser as herein expressly provided, Seller will be immediately entitled, as its sole
and exclusive remedy, to terminate this Agreement and to receive the Earnest Money, which shall constitute and be deemed to be the agreed and liquidated damages of Seller. Nothing contained in this Section 10.1, however, will limit, restrict or
impair the liability of Purchaser under the indemnity provided in Section 4.5. 
 10.2 Default by Seller. If
Seller shall default in the performance of its obligations under this Agreement or otherwise fail to consummate this Agreement for any reason other than Purchaser’s default or the permitted termination of this Agreement by Seller or Purchaser
as herein expressly provided, Purchaser’s sole and exclusive remedy will be either (i) to receive the return of the entire Earnest Money or (ii) seek specific performance of this Agreement; provided that any suit for specific
performance brought by Purchaser must be filed within one hundred eighty (180) days after Seller’s default and to the extent permitted by law. Purchaser covenants that it shall not file a lis pendens or other similar notice against the
Property except in connection with and after the proper and timely filing of a suit for specific performance. In the event the transaction contemplated hereby is not closed as a result of a default by Seller under this Section 10.2, Seller
shall reimburse Purchaser for all of Purchaser’s reasonable and actual third party expenses incurred in connection with this Agreement and Purchaser’s inspection and investigation of the Property not to exceed $50,000. 

10.3 Notice and Cure. Seller will not be deemed to be in default hereunder until and unless Seller has been given written
notice of its failure to comply with the terms hereof and thereafter does not cure such failure within ten (10) business days after receipt of such notice. 

ARTICLE 11 

RISK OF LOSS 

11.1 Minor Damage. In the event of loss or damage to the Property or any portion thereof which is not
“major” (as hereinafter defined), this Agreement will remain in full force and effect provided Seller performs any necessary repairs or, at Seller’s option, assigns to Purchaser all of Seller’s right, title and interest to any
claims and proceeds Seller may have with respect to any casualty insurance policies or condemnation awards relating to the Property in question. In the event that Seller elects to perform repairs upon the Property, Seller shall proceed diligently to
complete such repairs by the date of Closing. If Seller elects to assign a casualty claim to Purchaser (and all proceeds related thereto), the Purchase Price will be reduced by an amount equal to the deductible amount under Seller’s insurance
policy, and the amount of any uninsured damage. Upon Closing, full risk of loss with respect to the Property will pass to Purchaser. 

11.2 Major Damage. In the event of a “major” loss or damage, Purchaser may terminate this Agreement by written
notice to Seller, in which event the Earnest Money will be returned to Purchaser. If Purchaser does not elect to terminate this Agreement within ten (10) days after Seller sends Purchaser written notice of the occurrence of major loss or
damage, then Purchaser will be deemed to have elected to proceed with Closing, in which event Seller will, at Seller’s option, either (a) perform any necessary repairs, or (b) assign to Purchaser all of Seller’s right, title and
interest to any claims and proceeds Seller 

  
 16 

 
may have with respect to any casualty insurance policies or condemnation awards relating to the portion of the Property in question. In the event that Seller elects to perform repairs upon the
Property, Seller shall proceed diligently to complete such repairs promptly by the date of Closing. If Seller elects to assign a casualty claim to Purchaser (and all proceeds related thereto), the Purchase Price will be reduced by an amount equal to
the deductible amount under Seller’s insurance policy and the amount of any uninsured loss, as determined by a contractor selected by Seller and reasonably approved by Purchaser in accordance with Section 11.3 below, equal to or greater
than $500,000.00. Upon Closing, full risk of loss with respect to the Property will pass to Purchaser. 
 11.3 Definition of
“Major” Loss or Damage. For purposes of Sections 11.1 and 11.2, “major” loss or damage refers to the following: (i) loss or damage to the Property or any portion thereof such that the cost of repairing or
restoring the portion of the Property in question to a condition substantially similar to that of the Property in question prior to the event of such loss or damage would be, in the opinion of a contractor selected by Seller and reasonably approved
by Purchaser, equal to or greater than $500,000.00, and (ii) any loss due to a condemnation. If Purchaser does not give notice to Seller of Purchaser’s reasons for disapproving a contractor within five (5) business days after receipt
of notice of the proposed contractor, Purchaser will be deemed to have approved the contractor selected by Seller. Seller shall not settle or adjust any insurance or condemnation claim without the consent of Purchaser, which shall not be
unreasonably withheld. 
 ARTICLE 12 

BROKERAGE COMMISSIONS 

Seller agrees to pay to Jones Lang LaSalle Americas, Inc. (the “Broker”) a brokerage commission pursuant to a separate
written agreement between Seller and Broker. Each party agrees that should any claim be made for brokerage commissions or finder’s fees by any broker or finder other than the Broker by, through or on account of any acts of said party or its
representatives, said party will be responsible for and reimburse the other party for any and all loss, liability, cost, damage and expense in connection therewith (including reasonable attorneys’ fees). The provisions of this Article 12 will
survive Closing. 
 ARTICLE 13 

ESCROW 

13.1 Escrow Agent. Escrow Agent has agreed to act as escrow agent for the convenience of the parties without fee or other
charges for such services as escrow agent. The Escrow Agent will not be liable: (i) to any of the parties for any act or omission to act except for its own gross negligence, bad faith or willful misconduct; (ii) for any legal effect,
insufficiency, or undesirability of any instrument deposited with or delivered by the Escrow Agent or exchanged by the parties hereunder, whether or not Escrow Agent prepared such instrument (except for the title commitment and title policy);
(iii) for any loss or impairment of funds that have been deposited in escrow in accordance with this Agreement while those funds are in the course of collection, or while those funds are on deposit in a financial institution, if such loss or
impairment results from the failure, insolvency or suspension of a financial institution, unless the Escrow Agent fails to move such funds to another financial institution in accordance with joint written instructions from Seller and Purchaser to
the Escrow Agent, (iv) for the expiration of any time limit or other consequence of delay, unless a properly executed written instruction has instructed the Escrow Agent to comply with such time limit; or (v) for the default, error, action
or omission of either Seller or Purchaser to the escrow. Escrow Agent will be entitled to rely, in good faith, on any document or paper received by it, believed by the Escrow Agent, in good faith, to be bona fide and genuine. 

  
 17 

 13.2 Interpleader Action. In the event of any dispute as to the disposition
of the Earnest Money or any other monies held in escrow, the Escrow Agent will give written notice to all parties advising same that, in the absence of written instructions signed by both Purchaser and Seller received within ten (10) days of
the date of such notice, the Escrow Agent may interplead the Earnest Money by filing an interpleader action in the Circuit Court of Fulton County, Georgia (to the jurisdiction of which both parties hereby consent) or may continue to hold the Earnest
Money and take no action until the Escrow Agent receives such joint written instructions or an order of a court as to the disposition of same. If the Escrow Agent receives the aforesaid written instructions, it will continue to hold the Earnest
Money pursuant to such written instructions. If the Escrow Agent does not receive the aforesaid written instructions, it may pay into the registry of the court the Earnest Money and any other monies held in escrow or may continue to hold the Earnest
Money and take no action until the Escrow Agent receives such joint written instructions or an order of a court as to the disposition of same, whereupon the Escrow Agent will be relieved and released from any further liability as escrow agent
hereunder. The Escrow Agent will not be liable for the Escrow Agent’s compliance with any legal process, subpoena, writs, orders, judgments and decree of any court, whether issued with or without jurisdiction, and whether or not subsequently
vacated, modified, set aside or reversed. 
 ARTICLE 14 

MISCELLANEOUS 

14.1 Confidentiality. Purchaser and its representatives will hold in strictest confidence all data and information
obtained with respect to Seller, its business or the Property that is not otherwise available to the public, whether obtained before or after the execution and delivery of this Agreement, and will not disclose the same to others; provided, however,
that it is understood and agreed that Purchaser may disclose such data and information to Purchaser’s Lender, Purchaser’s affiliates and to Purchaser’s or its affiliates’ employees, consultants, accountants, contractors,
investors, partners, attorneys, agents and representatives. In the event this Agreement is terminated or Purchaser fails to perform hereunder, Purchaser will promptly return to Seller or destroy any statements, documents, schedules, exhibits or
other written information obtained from Seller, its advisors and/or the Manager in connection with this Agreement or the transaction contemplated herein. In the event of a breach or threatened breach by Purchaser or its agents or representatives of
this Section 14.1, Seller will be entitled to an injunction restraining Purchaser or its agents or representatives from disclosing, in whole or in part, such confidential information. Nothing herein will be construed as prohibiting Seller from
pursuing any other available remedy at law or in equity for such breach or threatened breach. The provisions of this Section 14.1 are subject to, and the parties will comply with, all applicable law and any order of a competent court. This
Section 14.1 will survive Closing. 
 14.2 Public Disclosure. Either party shall be permitted to make a release to
the public of information with respect to the sale contemplated herein or any matters set forth in this Agreement; provided, however, such party’s release shall not disclose the Purchase Price or the identity of the beneficial owner or owners
of the other party without such other party’s consent, which shall not be unreasonably withheld, conditioned or delayed. To the extent a party issues a release in accordance with this Section 14.2, such party shall deliver a copy thereof
to the other party. Notwithstanding the foregoing, both Seller and Purchaser shall be permitted to make filings and disclosures related to the transactions contemplated by this Agreement as may, in such party’s reasonable judgment, be required
by applicable law, including, without limitation, disclosures required to be made to the Securities and Exchange Commission. Seller shall request that the Broker comply with this Section 14.2 with respect to the issuance of any press release.
This Section 14.2 shall survive Closing. 

  
 18 

 14.3 Discharge of Obligations. The acceptance of the Deed by Purchaser will
be deemed to be a full performance and discharge of every representation and warranty made by Seller herein and every agreement and obligation on the part of Seller to be performed pursuant to the provisions of this Agreement, except those which are
herein specifically stated to survive Closing. 
 14.4 Assignment. Purchaser may assign its rights under this Agreement
only as set forth in this Section 14.4 upon the following conditions: (i) the assignee of Purchaser must be an affiliate of Purchaser or an entity controlling, controlled by, or under common control with Purchaser or with any of its
principals, (ii) all of the Earnest Money must have been delivered in accordance herewith, (iii) the assignee of Purchaser must assume all obligations of Purchaser hereunder, but Purchaser will remain primarily liable for the performance
of Purchaser’s obligations, and (iv) a copy of the fully executed written assignment and assumption agreement will be delivered to Seller by 5:00 p.m. on March 25, 2015. Any transfer, directly or indirectly, of any stock, partnership
interest or other ownership interest in Purchaser to any person or entity that would not be qualified to be a permitted assignee of Purchaser’s interest hereunder without Sellers written approval, which approval may be given or withheld in
Seller’s sole discretion, will constitute a default by Purchaser under this Agreement. Any assignment or attempted assignment by Purchaser of this Agreement or any rights hereunder which does not satisfy the conditions of the first sentence of
this Section 14.4 will be void ab initio, of no force or effect and Purchaser will remain fully liable for the performance of its obligations under this Agreement. 

14.5 Notices. Any notice pursuant to this Agreement must be given in writing by (a) personal delivery, or
(b) reputable overnight delivery service with proof of delivery, or (c) United States Mail, postage prepaid, registered or certified mail, return receipt requested, or (d) legible facsimile transmission or email sent to the intended
addressee at the address set forth below, or to such other address or to the attention of such other person as the addressee will have designated by written notice sent in accordance herewith, and will be deemed to have been given either at the time
of personal delivery, or, in the case of expedited delivery service or mail, as of the date of first attempted delivery at the address and in the manner provided herein, or, in the case of facsimile transmission, as of the date of the facsimile
transmission (or next business day if transmitted on a day other than a business day) provided that an original of such facsimile or such email is also sent to the intended addressee by means described in clauses (a), (b) or (c) above.
Unless changed in accordance with the preceding sentence, the addresses for notices given pursuant to this Agreement will be as follows: 
  

			
	If to Seller:		Emily-May Richards
			The Shoptaw Group
			Two Buckhead Plaza, Suite 460
			3050 Peachtree St. NW
			Atlanta, GA 30305
			Fax No: (678) 538-1055
			Email: erichards@SGATL.com
		
	with a copy to:		Sutherland Asbill & Brennan LLP
			999 Peachtree Street, NE
			Atlanta, Georgia 30309-3996
			Attention: H. Edward Hales, Jr., Esq.
			Fax No.: (404) 853-8806

  
 19 

			
	If to Purchaser:		Pamela Arms
			Resource Real Estate, Inc.
			1845 Walnut Street, 18th Floor
			Philadelphia, PA 19103
			Fax No.: (215) 761-0491
			Email: parms@resourcerei.com
		
	with a copy to:		Aldie Jennings Loubier, Esq.
			Resource Real Estate, Inc.
			1845 Walnut Street, 18th Floor
			Philadelphia, PA 19103
			Fax No.: (215) 553-8426
			Email: aloubier@resourcerei.com

 14.6 Modifications. This Agreement cannot be changed orally, and no executory agreement
will be effective to waive, change, modify or discharge it in whole or in part unless such executory agreement is in writing and is signed by the parties against whom enforcement of any waiver, change, modification or discharge is sought. 

14.7 Calculation of Time Periods. Unless otherwise specified, in computing any period of time described in this
Agreement, the day of the act or event after which the designated period of time begins to run is not to be included and the last day of the period so computed is to be included, unless such last day is a Saturday, Sunday or legal holiday under the
laws of the State in which the Property is located, in which event the period will run until the end of the next day which is neither a Saturday, Sunday or legal holiday. The final day of any such period will be deemed to end at 5 p.m., Eastern
time. 
 14.8 Successors and Assigns. The terms and provisions of this Agreement are to apply to and bind the permitted
successors and assigns of the parties hereto. 
 14.9 Entire Agreement. This Agreement, including the Exhibits,
contains the entire agreement between the parties pertaining to the subject matter hereof and fully supersedes all prior written or oral agreements and understandings between the parties pertaining to such subject matter. 

14.10 Further Assurances. Each party agrees that it will without further consideration execute and deliver such other
documents and take such other action, whether prior or subsequent to Closing, as may be reasonably requested by the other party to consummate more effectively the purposes or subject matter of this Agreement. Without limiting the generality of the
foregoing, Purchaser will, if requested by Seller, execute acknowledgments of receipt with respect to any materials delivered by Seller to Purchaser with respect to the Property. The provisions of this Section 14.10 will survive Closing. 

14.11 Counterparts; Facsimile Signatures. This Agreement may be executed in identical counterparts, and all such executed
counterparts will constitute the same agreement. It will be necessary to account for only one such counterpart in proving this Agreement. Signatures to this Agreement transmitted by telecopy, facsimile or electronic mail will be valid and effective
to bind the party so signing. Each party agrees to promptly deliver any execution original to this Agreement with its actual signature to the other party, but a failure to do so will not affect the enforceability of this Agreement, it being
expressly agreed that each party to this Agreement will be bound by its own signature sent by telecopy, facsimile or electronic mail and will accept the signature of the other party so transmitted. 

  
 20 

 14.12 Severability. If any provision of this Agreement is determined by a
court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement will nonetheless remain in full force and effect. 

14.13 Applicable Law. The Seller is a limited liability company formed under the laws of the State of Georgia and its
principal place of business is located in the State of Georgia and the Property is located in Fulton County, Georgia. Except to the extent expressly provided in the following sentence, Seller and Purchaser hereby irrevocably (i) agree that any
suit under this Agreement will in all respects be governed by and construed in accordance with the laws of the State of Georgia and, as applicable, the substantive federal laws of the United States, and (ii) submit to the jurisdiction of any
state or federal court sitting in Fulton County, Georgia in any action or proceeding arising out of or relating to this Agreement and hereby irrevocably agree that all claims in respect of such action or proceeding will be heard and determined in a
state or federal court sitting in Fulton County, Georgia. Purchaser and Seller agree that the provisions of this Section 14.13 will survive the Closing. 

14.14 No Third-Party Beneficiary. The provisions of this Agreement and of the documents to be executed and delivered at
Closing are and will be for the benefit of Seller and Purchaser and its permitted assigns only and are not for the benefit of any third party, and accordingly, no third party will have the right to enforce the provisions of this Agreement or of the
documents to be executed and delivered at Closing. 
 14.15 Captions. The section headings appearing in this Agreement
are for convenience of reference only and are not intended, to any extent and for any purpose, to limit or define the text of any section or any subsection hereof. 

14.16 Construction. The parties acknowledge that the parties and their counsel have reviewed and revised this
Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party will not be employed in the interpretation of this Agreement or any exhibits or amendments hereto. 

14.17 Termination of Agreement. If either Purchaser or Seller terminates this Agreement pursuant to a right of
termination granted hereunder, such termination will operate to relieve Seller and Purchaser from all obligations under this Agreement, except for such obligations as are specifically stated herein to survive the termination of this Agreement. 

14.18 Exculpation of Seller and Related Parties. Notwithstanding anything to the contrary contained in this Agreement or
in any exhibits attached hereto or in any documents executed in connection herewith, it is expressly understood and agreed by and between the parties hereto that: (a) the recourse of Purchaser or its successors or assigns against Seller in
connection with this Agreement, including, without limitation, with respect to any alleged act or omission of Seller or any representative of Seller, any misrepresentation (whether allegedly intentional or unintentional) by or on behalf of Seller,
or any breach by or on the part of Seller of any representation, warranty, covenant, undertaking, indemnity or agreement contained in this Agreement or in any of the Seller’s Closing Documents (collectively, “Seller’s
Undertakings”) will not exceed the Liability Cap and in any event will not survive Closing for more than one hundred eighty (180) days unless written notice containing a description of the specific nature of such breach will have been
given by Purchaser to Seller prior to the expiration of said one hundred eighty (180) day period and an action has been filed by Purchaser against Seller in a court of competent jurisdiction for said breach within one (1) year of Closing,
and (b) no personal liability or personal responsibility of any sort with respect to any of Seller’s Undertakings or any alleged breach 

  
 21 

 
thereof is assumed by, or will at any time be asserted or enforceable against, Seller or its affiliates, or against any of their respective shareholders, directors, officers, employees, agents,
advisors, constituent partners, members, beneficiaries, trustees or representatives. Notwithstanding the foregoing, there shall be no limit on liability or limit on time to commence an action with respect to Seller’s indemnification obligations
under Article 12 hereof. 
 14.19 Time of the Essence. Time is of the essence in this Agreement. 

14.20 Attorneys’ Fees. In the event either party files a lawsuit in connection with this Agreement or any
provisions contained herein, then the party that prevails in such action shall be entitled to recover from the non-prevailing party, in addition to all other remedies or damages, as limited herein, reasonable
attorneys’ fees and costs of court incurred in such lawsuit. This covenant shall survive the Closing or termination of this Agreement. 

14.21 Intentionally Deleted 

14.22 Additional Covenants of Seller. In addition to the obligations imposed and covenants made by Seller in this
Agreement, Seller covenants and agrees that: 
 (a) Seller shall not withdraw, settle or otherwise compromise any protest or reduction
proceeding affecting real estate taxes assessed against the Property for any fiscal period in which the Closing is to occur or any subsequent fiscal period, without the prior consent of Purchaser; 

(b) at the time of Closing, Seller shall cause all apartment units in the Property which have been vacant for five (5) days or more to be
in a market rent-ready condition (i.e., as necessary, painted, cleaned, carpeted, with all appliances in working condition). In connection with this rent ready covenant, on March 26, 2015, Purchaser will be permitted to inspect such
vacant units at the Property with a representative of Seller to confirm that such units are in rent ready condition; 
 (c) it will promptly
give notice to Purchaser of every threatened or actual litigation, suit, arbitration, unsatisfied order or judgment, governmental investigation or proceeding concerning or affecting the Property (including, without limitation, the sale thereof to
Purchaser) or any portion thereof between the date of this Agreement and the Closing; 
 (d) it will promptly give notice to Purchaser of
all written notices received by Seller asserting any breach or default under any of the Leases or the Service Contracts or any violation of any licenses and permits or any covenants, conditions, restrictions, laws, statutes, rules, regulations or
ordinates applicable to the Property; and 
 (e) it shall maintain in full force and effect all insurance which it presently maintains with
respect to the Property through Closing. 
 14.23 Rule 3-14 Compliance. Seller shall provide to Purchaser (at
Purchaser’s expense) copies of, or shall provide Purchaser reasonable access to, such factual information as may be reasonably requested by Purchaser, and in the possession or control of Seller, or its property manager or accountants, necessary
to enable Purchaser’s auditor to conduct an audit, in accordance with Rule 3-14 of Securities and Exchange Commission Regulation S-X, of the income statements of the Property for the year to date of the year in which Closing occurs plus the one
(1) immediately preceding calendar year. Purchaser shall be responsible for all out-of-pocket costs associated with this audit. Seller shall reasonably 

  
 22 

 
cooperate (at no cost to Seller) with Purchaser’s auditor in the conduct of such audit, which will include verbal requests for information regarding internal controls and follow-up questions
on the financial information provided to the Purchaser. In addition, Seller agrees to provide to Purchaser or any affiliate of Purchaser, if requested by such auditor, historical financial statements for the Property, including (without
limitation) income and balance sheet data for the Property, whether required before or after Closing. Without limiting the foregoing, (i) Purchaser or its designated independent or other auditor may audit Seller’s operating statements
of the Property, at Purchaser’s expense, and Seller shall provide such documentation as Purchaser or its auditor may reasonably request in order to complete such audit, and (ii) Seller shall furnish to Purchaser such financial and other
information as may be reasonably required by Purchaser or any affiliate of Purchaser to make any required filings with the Securities and Exchange Commission or other governmental authority. Seller’s obligation to maintain its records for
use under this Section 14.23 shall be an on-going condition to Closing for Purchaser’s benefit until Closing. Seller shall maintain its records for use under this Section 14.23 for a period of not less than two
(2) years after the Closing Date. The provisions of this Section shall survive Closing for a period of two (2) years. After Closing, the Escrow Agent shall hold $5,000 of the Purchase Price in escrow pending the filing of the Rule
3-14 audit with the Securities and Exchange Commission Regulation. The Escrow Agent shall release such $5,000 to Seller promptly after receiving written notice of such filing, but in no event later than eighty (80) days after the Closing Date.

  
 23 

 IN WITNESS WHEREOF, the
parties hereto have duly executed this Agreement as of the Effective Date. 
  

			
	SELLER:
	
	 SG Uptown Buckhead – Atlanta, LLC,

a Georgia limited liability company

		
	By:		TSG 12, LLC, its manager,
		
	By:		 /s/ Emily-May Richards

	Name:  		Emily- May Richards
	Its:		COO & CFO
	
	PURCHASER:
	
	 RRE Opportunity OP II, LP
 a
Delaware limited partnership

		
	By:		 Resource Real Estate Opportunity REIT II, Inc.,

a Maryland corporation,
 its general partner

		
	By:		 /s/ Alan F. Feldman

	 Name:
 Its:
		 Alan F. Feldman
 Chief Executive
Officer

  
 24 

 Escrow Agent Joinder 

By its execution below, Escrow Agent acknowledges its receipt of a copy of this Agreement and of the Deposit in the amount of
$            , and agrees to hold and disburse the Earnest Money in accordance with the terms and conditions of this Agreement. 

 

			
	Trinity Title Insurance Agency, Inc.
		
	By:		  

	Name:		  

	Title:		  

  
 25 

 SCHEDULE OF EXHIBITS: 

 

			
	 Exhibit A
		Legal Description of the Land
	 Exhibit B
		Lease Schedule
	 Exhibit C
		Service Contracts Schedule
	 Exhibit D
		Schedule of Insurance Coverage Requirements
	 Exhibit E
		Form of Deed
	 Exhibit F
		Form of Bill of Sale
	 Exhibit G
		Form of Assignment ad Assumption of Leases
	 Exhibit H
		Form of Assignment and Assumption of service contracts
	 Exhibit I
		General Assignment of Intangibles
	 Exhibit J
		Form of Tenant Notice
	 Exhibit K
		Form Vendor Notice Letter
	 Exhibit L
		Form of certificate of non-foreign status
	 Exhibit M
		Information Documents
	 Exhibit N
		PERSONAL PROPERTY

  
 i 

 EXHIBIT A 

LEGAL DESCRIPTION OF THE LAND 

  
 A-1 

 EXHIBIT B 

LEASE SCHEDULE 

  
 B-1 

 EXHIBIT C 

SERVICE CONTRACTS SCHEDULE 

Service Contracts - Exhibit C 
  

									
	 Type of Contract
	 	 Contractor
	 	 Effective
Date
	 	 Term
	 	 Cancellation

	Landscape Maintenance	 	Town Scapes	 	8/1/2013	 	1 year	 	30 day written
					
	Termite - Annual Contract	 	Lawrenceville Pest Control	 	11/11/2013	 	1 year	 	30 days written
					
	Extermination	 	Lawrenceville Pest Control	 	11/11/2013	 	1 year	 	30 days written
					
	Cable- Revenue Share	 	Comcast Cable Communications	 	5/10/2010	 	7 years	 	60 days prior to expiration
					
	Trash Removal	 	Waste Management	 	10/1/2013	 	3 years	 	90 days written
					
	Copier	 	Milner- DeLage Landen Financial Services, Inc.	 	6/28/2011	 	4 years	 	60 days written
					
	Key System	 	Key Trac	 	6/4/2007	 	5 years	 	45 day written notice
					
	Emergency Phone	 	Kings III	 	9/29/2000	 	MTM	 	30 days written
					
	Social Media-Facebook, Blog, Twitter, Google+	 	ResPage/4Walls Inc.	 	10/1/2013	 	3 months	 	30 days written
					
	Office Phones	 	AT&T	 	1/21/2008	 	2 years	 	60 days written
					
	Advertising	 	Capture the Market	 	1/27/2011	 	1 year	 	30 days written
					
	Fitness Equipment	 	Fitness Equipment Sales Inc.	 	8/2/2007	 	MTM	 	30 days written
					
	Street Pole Lighting Contract	 	Georgia Power	 	11/16/2007	 	2 years	 	30 days written
					
	Water Billing	 	Conservice	 	12/22/2014	 	1 year	 	60 days written
					
	Collections	 	Carter Young	 	9/26/2013	 	1 year	 	30 days written

  
 C-1 

 EXHIBIT D 

SCHEDULE OF INSURANCE COVERAGE REQUIREMENTS 

Purchaser and its agents and consultants will have in effect commercial general liability insurance naming Seller as an additional insured party, with
(i) limits of not less than $1,000,000.00 per occurrence for personal injury, including bodily injury and death, and property damage, and (ii) waiver of subrogation. Prior to entering the Property, Purchaser must deliver to Seller
certificates of insurance evidencing such coverage. 

  
 D-1 

 EXHIBIT E 

FORM OF DEED 

This instrument prepared by, 
 and after recording
return to: 
  

                          
                       

                          
                       

                          
                       

                          
                       

LIMITED WARRANTY DEED 

THIS INDENTURE made this     day of March, 2015, between SG Uptown Buckhead – Atlanta, LLC, a Georgia limited
liability company (hereinafter referred to as “Grantor”), and                     , a
                    (hereinafter referred to as “Grantee”). 

WITNESSETH: 
 WITNESSETH:
That Grantor, for and in consideration of the sum of Ten Dollars ($10.00) and other good and valuable consideration, in hand paid at and before the sealing and delivery of these presents, the receipt and sufficiency of which is hereby acknowledged,
has granted, bargained, sold and conveyed unto Grantee all that tract or parcel of land described on Exhibit A attached hereto and made a part hereof. 

TO HAVE AND TO HOLD the said bargained premise, together with all and singular the rights, members and appurtenances thereof, to the same
being, belonging or in any wise appertaining to the only proper use, benefit and behoof of Grantee, forever, IN FEE SIMPLE. 
 Grantor will
warrant and forever defend the right and title to the above described property unto Grantee against the claims of all persons owning, holding, or claiming by, through or under Grantor and not otherwise, subject only to those Permitted Title
Exceptions listed on Exhibit “B” attached hereto and made a part hereof. 
 The words “Grantor” and “Grantee”
include all genders, plural and singular, and their respective heirs, successors and assigns where the context requires or permits. 

  
 E-1 

 IN WITNESS WHEREOF, Grantor has signed and sealed this deed as of the day and year first above written. 

 

			
	 Signed, sealed and delivered in the presence of:
  

                          
                                         
                         

WITNESS
 (Printed
Name)                                        
                                

 

                          
                                         
                         

NOTARY PUBLIC
 (Printed
Name)                                        
                                

 
 My Commission expires:

 

                          
                                         
                         
  

(NOTARY SEAL)
		 GRANTOR:
  

SG Uptown Buckhead – Atlanta, LLC, a Georgia limited liability company
  

By: TSG 12, a Georgia limited liability company, its Manager
  

By:
                                         
                                       

Name:
                                         
                                   

Title:
                                         
                                   

  
 E-2 

 EXHIBIT F 

FORM OF BILL OF SALE 

For good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, SG Uptown Buckhead – Atlanta, LLC
(“Seller”), hereby conveys to                     (“Purchaser”), all of Sellers right, title and interest in and to those certain
items of personal property described on Exhibit A attached hereto and made a part hereof and all other furniture, fixtures, appliances, office equipment, window treatments and equipment (the “Personal Property”) relating to and used
exclusively in connection with the operation of certain real property located at 3707 Roswell Rd. NE, Atlanta, GA 30342, commonly known as Uptown Buckhead Apartments. 

Seller represents and warrants to Purchaser that Seller has not previously conveyed, assigned or encumbered title to the Personal Property;
however, Seller specifically does not make any other express or implied warranty or representation with respect to the Personal Property, including, but not limited to, fitness for any particular purpose; the design or condition of the Personal
Property; the quality or capacity of the Personal Property; workmanship or compliance of the Personal Property with the requirements of any law, rule, specification or contract relating thereto; patent infringement; or latent defect. Except as
expressly stated herein, Purchaser accepts the Personal Property on an “as is, where is” basis. 
 This Bill of Sale is subject to
Sections [5.10 and 14.18] of that certain Purchase and Sale Agreement dated as of March    , 2015 by and between Seller and Purchaser. 

IN WITNESS WHEREOF, Seller has caused this instrument to be executed and delivered as of this     day of
            , 2015. 
  

			
	SELLER:
	
	SG Uptown Buckhead – Atlanta, LLC, a Georgia limited liability company
		
	By:		TSG 12, a Georgia limited liability company, its Manager
		
	By:		  

	Name:		  

	Title:		  

  
 F-1 

 EXHIBIT G 

FORM OF ASSIGNMENT AND ASSUMPTION OF
LEASES 
 For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, SG
Uptown Buckhead – Atlanta, LLC (“Assignor”), hereby sells, transfers, assigns and sets over unto
                                        
(“Assignee”), its legal representatives, successors and assigns, all of Assignors right, title and interest in, to and under (a) those certain leases referred to on Exhibit A attached hereto and made a part hereof (the
“Leases”) affecting the real estate legally described in the Agreement (as hereinafter defined) and commonly known as Uptown Buckhead Apartments (the “Property”), (b) the rent therein referred except, however, that portion
of said rent attributable to periods of time prior to the Closing Date (as defined in that certain Agreement of Purchase and Sale by and between Assignor and Assignee, dated as of March    , 2015 (the “Agreement”) and
(c) the refundable deposits actually held by Assignor pursuant to the Leases (to the extent such deposits are not applied against delinquent rents, damage or otherwise prior to Closing). 

Assignee does hereby accept the foregoing Assignment and Assumption of Leases subject to the terms and conditions herein and in the Leases,
and does hereby assume, without exculpation, as of the date hereof, and become responsible for and agree to perform, discharge, fulfill and observe all of the obligations, terms, covenants, provisions and conditions under the Leases first arising
from and after the Closing Date and Assignee agrees to be liable for the observance and performance thereof as fully as though Assignee was the original landlord or lessor thereunder. 

Assignor agrees to protect, defend, indemnify and hold harmless Assignee, its legal representatives, successors and assigns from any and all
losses, damages, expenses, fees (including, without limitation, reasonable attorneys’ fees), court costs, suits, judgments, liability, claims and demands whatsoever in law or in equity, incurred or suffered by Assignee, its legal
representatives, successors and assigns or any of them arising out of or in connection with the Leases as to events, acts, omissions or occurrences occurring prior to the Closing Date. 

Assignee agrees to protect, defend, indemnify and hold harmless Assignor, its legal representatives, successors and assigns from any and all
losses, damages, expenses, fees (including, without limitation, reasonable attorneys’ fees), court costs, suits, judgments, liability, claims and demands whatsoever in law or in equity, incurred or suffered by Assignor, its legal
representatives, successors and assigns or any of them arising out of or in connection with the Leases as to events, acts, omissions or occurrences occurring from and after the Closing Date. 

Notwithstanding anything to the contrary contained in this Assignment and Assumption of Leases, it is expressly understood and agreed by and
between the parties hereto that any liability of Assignor hereunder will be limited as set forth in Sections 5.10 and 14.18 of the Agreement. 

This Assignment and Assumption of Leases will be binding upon and will inure to the benefit of Assignor and Assignee and their respective
beneficiaries, legal representatives, heirs, successors and assigns. 
 This Assignment and Assumption of Leases may be executed and
delivered in any number of counterparts, each of which so executed and delivered will be deemed to be an original and all of which will constitute one and the same agreement. 

  
 G-1 

 IN WITNESS WHEREOF, the parties hereto have executed this Assignment and Assumption of Leases
this      day of March, 2015. 
  

			
	Assignor:
	
	SG Uptown Buckhead – Atlanta, LLC,
a Georgia limited liability company
		
	By:		TSG 12, LLC, its manager
		
	By:		  

	Name:		  

	Its:		  

	
	Assignee:
	
	  

	a
                                         
                                         

		
	By:		  

	Name:		  

	Its:		  

  
 G-2 

 EXHIBIT A 

TO 

ASSIGNMENT AND ASSUMPTION OF LEASES 

LEASES 

  
 G-3 

 EXHIBIT H 

FORM OF ASSIGNMENT AND ASSUMPTION OF
SERVICE CONTRACTS 
 For valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, SG Uptown Buckhead – Atlanta, LLC (“Assignor”), hereby sells, transfers, assigns and sets over to
                    (the “Assignee”), and Assignee hereby assumes and accepts the assignment and delegation of all of Assignor’s
right, title and interest in and to the contracts described on Exhibit A attached hereto relating to certain real property located at 3707 Roswell Rd., NE, Atlanta, GA 30342, and Assignee hereby accepts such assignment and hereby
assumes the performance of all of the terms, covenants and conditions imposed upon Assignor under said contracts first accruing or arising on or after the date of this Assignment. 

Assignor hereby covenants that Assignor will, upon written request, execute and deliver to Assignee or Assignee’s successors, nominees or
assigns (collectively, “Assignee’s Successors”), any instruments as Assignee or Assignee’s Successors may reasonably request in order to fully assign to Assignee or Assignee’s Successors all Assignor’s right, title, and
interest in and to the contracts listed on Exhibit A hereto. 
 Assignor will be responsible for and Assignee will not be liable for
any and all costs (including reasonable attorneys’ fees and costs), damages, liabilities, claims, losses and causes of action incurred by or asserted against Assignee as a result of any failure to perform any obligation of Assignor under said
contracts which accrued prior to the date of this Assignment. 
 Assignee will be responsible for and Assignor will not be liable for any
and all costs (including reasonable attorneys’ fees and costs), damages, liabilities, claims, losses, and causes of action incurred by or asserted against Assignor as a result of any breach by Assignee, from and after the date of this
Assignment, of any of Assignees obligations under the contracts listed on Exhibit A hereto. 
 Notwithstanding anything to the
contrary contained in this Assignment and Assumption of Service Contracts, it is expressly understood and agreed by and between the parties hereto that any liability of Assignor hereunder will be limited as set forth in Sections [5.10 and 14.18] of
that certain Agreement of Purchase and Sale by and between Assignor and Assignee, dated as of March    , 2015. 
 This
Assignment and Assumption of Service Contracts will be binding upon and will inure to the benefit of Assignor and Assignee and their respective beneficiaries, legal representatives, heirs, successors and assigns. 

This Agreement may be executed and delivered in any number of counterparts, each of which so executed and delivered will be deemed to be an
original and all of which will constitute one and the same instrument. 

  
 H-1 

 IN WITNESS WHEREOF, Assignor and Assignee have executed this Assignment effective as of the date
set forth below. 
 Executed as of this     day of
            , 20    . 
  

			
	Assignor:
	
	SG Uptown Buckhead – Atlanta, LLC,
a Georgia limited liability company
		
	By:		TSG 12, LLC, its manager
		
	By:		  

	Name:  		  

	Its:		  

	
	Assignee:
	
	  

	a
                                         
                                         

		
	By:		  

	Name:		  

	Its:		  

  
 H-2 

 EXHIBIT “A” 

TO 

ASSIGNMENT AND ASSUMPTION OF CONTRACTS 

SCHEDULE OF CONTRACTS 

(See Attached) 

  
 H-3 

 EXHIBIT I 

GENERAL ASSIGNMENT OF INTANGIBLES 

For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, SG Uptown Buckhead – Atlanta, LLC,
(“Assignor”), hereby sells, transfers, assigns and sets over unto
                                    (“Assignee”), its legal
representatives, successors and assigns, all of Assignors right, title and interest in and to, (i) all assignable existing warranties and guaranties (express or implied) issued to or inuring to the benefit of Assignor in connection with the
Property; (ii) all assignable licenses, permits, certificates of occupancy, approvals, dedications, subdivision maps or plats, land sale registrations, property reports, conditional use permits, special use permits, declarations of
non-significance, environmental impact statements and entitlements issued, approved or granted to or for the benefit of Seller or Sellers predecessors in interest by applicable governmental authorities or otherwise in effect and which relate to the
Property, and including (without limitation) all assignable development rights and other intangible rights, titles, interests, privileges and appurtenances owned by Seller or Sellers predecessors-in-interest as owner of the Property and in any way
related to or used in connection with the Property, (iii) all assignable telephone numbers, telefax numbers, trade names, logos, marks, trademarks, service marks, symbols and items of identification relative to the Property which are owned by
Seller, or in which Seller has a property interest, including, without limitation, the name “Uptown Buckhead” and derivations thereof, the domain name: www.uptownbuckheadapts.com together with related URLs, social media accounts and
the logo, photo, video and e-brochure files for Uptown Buckhead, (iv) all assignable licenses, consents, easements, rights of way and approvals required to make use of utilities and to ensure vehicular and pedestrian ingress and egress to the
Property, (v) plans, drawings, specifications, surveys, engineering reports, and other technical descriptions, if any, relating to the Property in Assignors possession, and (vi) all other items of intangible personal property owned by
Assignor or in which Seller has property interest that relate in any way to the ownership, use, leasing, maintenance, service or operation of the Property (collectively, the Intangibles). 

This General Assignment of Intangibles will be binding upon and will inure to the benefit of Assignor and Assignee and their respective
beneficiaries, legal representatives, heirs, successors and assigns. 
 This General Assignment of Intangibles may be executed and delivered
in any number of counterparts, each of which so executed and delivered will be deemed to be an original and all of which will constitute one and the same agreement. 

Notwithstanding anything to the contrary contained in this General Assignment of Intangibles, it is expressly understood and agreed by and
between the parties hereto that any liability of Assignor hereunder will be limited as set forth in Sections [5.10 and 14.18] of that certain Agreement of Purchase and Sale by and between Assignor and Assignee, dated as of March
    , 2015. 
 All capitalized terms used herein unless otherwise defined herein have the same meaning as set forth in
the Agreement. 
 [Signatures on following page] 

  
 I-1 

 IN WITNESS WHEREOF, the parties hereto have executed this General Assignment of Intangibles this
    day of March, 2015. 
  

			
	Assignor:
	
	 SG Uptown Buckhead – Atlanta, LLC,

a Georgia limited liability company

		
	By:		TSG 12, LLC, its manager
		
	By:		  

	Name:		  

	Its:		  

	
	Assignee:
	
	  

	a                                    
                                         
     
		
	By:		  

	Name:		  

	Its:		  

  
 I-2 

 EXHIBIT J 

FORM OF TENANT NOTICE 

March     , 2015 
 Uptown Buckhead 

3707 Roswell Road 
 Atlanta, Georgia 30342 

 

	 	Re:	NOTIFICATION REGARDING CHANGE OF OWNERSHIP 

 Dear Resident, 

We are pleased to announce that effective Tuesday, March 31, 2015, SG Uptown Buckhead-Atlanta, LLC (“Seller”) sold Uptown Buckhead to
                    (“Purchaser”). Along with a new ownership,
                    has assumed the management responsibilities from Fogelman Management Group. 

The refundable deposit and/or refundable pet deposit that you paid in conjunction with your leased apartment has been transferred to the new ownership for
distribution in accordance to the terms and conditions set forth in your lease agreement. All future rental payments with respect to your apartment lease agreement should continue to be paid on the
1st of each month directly to the onsite leasing office. Your current lease and terms remain in full force with this change in ownership. 

We look forward to serving you. If you have any questions please feel free to contact the office at (404) 233-4353. 

Thank you, 
 The Management Team 

  
 J-1 

 EXHIBIT K 

FORM OF VENDOR NOTICE LETTER 

CHANGE OF OWNERSHIP AND 

ASSUMPTION OF EXISTING CONTRACT NOTIFICATION 

March     , 2015 
 Vendor Name

 Address 
  

	Re:	Uptown Buckhead 

 3707 Roswell Road 

Atlanta, Georgia 30342 
 Account
#                                         

 To Whom It May Concern: 
 Effective
            , March     , 2015, SG Uptown Buckhead-Atlanta, LLC d/b/a Uptown Buckhead apartments has been sold to
                    . The new owners are responsible to establish new accounts for services in regarding to the above named account and/or service
contract currently in place at Uptown Buckhead. 
 Any service rendered after the ownership change effective March     , 2015
will be the sole responsibility of                             . 

Any services rendered prior to the ownership change on March     , 2015 whereby your records indicate that an unpaid balance exist,
you should forward the documentation for review and processing to: 
 SG Uptown Buckhead-Atlanta, LLC 

C/O The Shoptaw Group 
 Two Buckhead
Plaza 
 3050 Peachtree Rd. NW, Suite 460 

Atlanta, GA 30305 
 Attn: Paige
Perritt 
 Thank you in advance for your assistance with this matter. If you have any questions, please don’t hesitate to contact me at
(618) 538-1051 or via email at pperritt@sgatl.com. 
 Sincerely, 
  

 
 Asset Management Associate 

  
 K-1 

 EXHIBIT L 

FORM OF CERTIFICATE OF NON-FOREIGN
STATUS 
 Section 1445 of the Internal Revenue Code provides that a transferee of a U.S. real property interest
must withhold tax if the transferor is a foreign person. To inform the transferee that withholding of tax is not required upon the disposition of a U.S. real property interest by
            , a             (“Seller”), the undersigned hereby certifies the following on behalf of the Seller: 

 

	 	1.	Seller is not a foreign             (as this term is defined in the Internal Revenue Code and Income Tax Regulations); 

 

	 	2.	Seller is not a disregarded entity as defined in §1.1445-2(b)(2)(iii); 

  

	 	2.	Seller’s U.S. employer identification number is             ; and 

  

	 	3.	Seller’s address is             . 

Seller understands that this certification may be disclosed to the Internal Revenue Service by the transferee and that any false statement
contained herein could be punished by fine, imprisonment, or both. 
 Under penalties of perjury the undersigned declares that it has
examined this certification and to the best of its knowledge and believe it is true, correct and complete, and it further declares that it has authority to sign this document on behalf of Seller. 

Dated:             , 20     

 

			
	Seller:
	
	                                    
                                         
       ,
	a
                                         
                                         

		
	By:		  

	Name:		  

	Its:		  

  
 L-1 

 EXHIBIT M 

INFORMATION DOCUMENTS 
  

	1.	Security deposit audit report; 

  

	2.	A detailed Rent Roll report reflecting all resident names, charges, credits and concessions allocated to the units (from December 2013 through month of sale); 

 

	3.	List of any capital expenditures during the period of Seller’s ownership; 

  

	4.	List of personal property; 

  

	5.	Zoning letter; 

  

	6.	Real estate tax bills for 2013 and 2014 as well as any assessments or tax bills for 2015; 

  

	7.	Owner’s title insurance policy; 

  

	8.	Business license and required permits; 

  

	9.	Monthly income statements beginning December 2013 through date of sale; 

  

	10.	Insurance ACORDS and claims history for past 5 years together; 

  

	11.	Termite agreement and inspection report; 

  

	12.	Certificates of Occupancy; 

  

	13.	ALTA/ACSM survey; 

  

	14.	Engineering reports; 

  

	15.	Environmental phase I; 

  

	16.	Service contracts; 

  

	17.	Non-Revenue Units, Employee Discounted Units and Payroll; 

  

	18.	Copy of Common Area Utility Bills for past 12 months; 

  

	19.	Copy of Lease and Paperwork; 

  

	20.	Resident Utility Billing Reports (RUBS) for past 12 months; 

  

	21.	Monthly Occupancy and Turnover for 2013, 2014, and 2015; 

  

	22.	Monthly bank statements beginning December 2013 and through date of sale and reconciliations to aforementioned bank statements; 

  

	23.	Trial balances for years ended 2013, 2014 and the two month period ended 2/18/15; 

  

	24.	Balance sheet at 12/31/13, 12/31/2014, and 2/28/15; 

  

	25.	Account payable and account receivable detail listing/aging reports at 12/31/13, 12/31/14 and date of sale; 

  

	26.	Check registers and payable registers for January 2014, February 2014, January 2015, and February 2015; 

  

	27.	General Ledger for 2013 and 2014; and 

  

	28.	First page, signature page and page with management fee provision of the management agreement. 

  
 M-1 

 EXHIBIT N 

PERSONAL PROPERTY LIST 

  
 N-1dirv_ex101.htm

Exhibit 10.1

 

SECURITIES PURCHASE AGREEMENT

 

This Securities Purchase Agreement (this “Agreement”) is dated as of April 8, 2015 between DirectView Holdings, Inc., a Nevada corporation (the “Company”), and the purchaser identified on the signature pages hereto (including its successors and assigns, the “Purchaser”).

 

WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Rule 506 promulgated thereunder, the Company desires to issue and sell to the Purchaser, and the Purchaser 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 the Purchaser agree as follows:

 

ARTICLE I.

DEFINITIONS

 

1.1 Definitions.  In addition to the terms defined elsewhere in this Agreement: (a) capitalized terms that are not otherwise defined herein have the meanings given to such terms in the Note (as defined herein), and (b) 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 Dates” means the Trading Day(s) on which all of the Transaction Documents have been executed and delivered by the applicable parties thereto in connection with a Closing, and all conditions precedent to (i) the Purchasers’ obligations to pay the Subscription Amount as to such Closing and (ii) the Company’s obligations to deliver the Securities as to such Closing, in each case, have been satisfied or waived.

 

“Closing(s)” means the one or more closings of the purchase and sale of the Securities pursuant to Section 2.2.

 

  

  

  

 

“Closing Statement” means the Closing Statement in the form on Annex A attached hereto.

 

“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 Lucosky Brookman, with offices located at 101 Wood Avenue South, 5th Floor, Woodbridge, New Jersey  08830.

 

“Conversion Price” shall have the meaning ascribed to such term in the Note.

 

“Conversion Shares” shall have the meaning ascribed to such term in the Note.

 

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

 

“Effective Date” means the earliest of the date that (a) all of the Registrable Securities have been sold pursuant to Rule 144 or may be sold pursuant to Rule 144 without the requirement for the Company to be in compliance with the current public information required under Rule 144 and without volume or manner-of-sale restrictions or (b) following the one year anniversary of the Closing Date provided that a holder of Registrable Securities is not an Affiliate of the Company, all of the Registrable Securities may be sold pursuant to an exemption from registration under Section 4(1) of the Securities Act without volume or manner-of-sale restrictions and Company counsel has delivered to such holders a standing written unqualified opinion that resales may then be made by such holders of the Registrable Securities pursuant to such exemption which opinion shall be in form and substance reasonably acceptable to such holders.

 

“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, 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 of 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, (c) shares issued pursuant to any equipment loan or leasing arrangement, reap property leasing arrangement or debt financing from a bank or similar institution approved by a majority of the disinterested directors of the Company, (d) securities issued pursuant to acquisitions or strategic transactions approved by a majority of the disinterested directors of the Company, and (e) shares with respect to which the holders of a majority of the outstanding Note waive their anti-dilution rights, 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 in a business synergistic with the business of the Company 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.

 

  

2

  

 

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

 

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

 

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

 

“Guaranty and Pledge Agreement” the Guaranty and Pledge Agreement, dated the date hereof, among the Company, Roger Ralston, and the Purchaser, in the form of Exhibit F attached hereto

 

“Holder” or “Holders” means the holder or holders, as the case may be, from time to time of Registrable Securities.

 

 “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).

 

“Legend Removal Date” shall have the meaning ascribed to such term in Section 4.1(c).

 

“Liens” means a 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).

 

  

3

  

 

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

 

“Note” means the 5% Original Issue Discount Senior Secured Convertible Promissory Note due, subject to the terms therein, 12 months from their date of issuance, issued by the Company to the Purchaser hereunder, in the form of Exhibit A attached hereto.

 

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

 

“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).

 

“Principal Amount” means, as to the  Purchaser, the amounts set forth below such Purchaser’s signature block on the signature pages hereto next to the heading “Principal Amount,” in United States Dollars, which shall equal such Purchaser’s Subscription Amount as to the Closing multiplied by 1.1.

 

“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.

 

“Public Information Failure” shall have the meaning ascribed to such term in Section 4.3(b).

 

“Public Information Failure Payments” shall have the meaning ascribed to such term in Section 4.3(b).

 

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

 

“Registrable Securities” means, as of any date of determination, (a) all of the shares of Common Stock then issued and issuable upon conversion in full of the Note (assuming on such date the Note are converted in full without regard to any conversion limitations therein), (b) all shares of Common Stock issued and issuable as interest or principal on the Note assuming all permissible interest and principal payments are made in shares of Common Stock and the Note is held until maturity, (c) any additional shares of Common Stock issued and issuable in connection with any anti-dilution provisions in the Note (in each case, without giving effect to any limitations on conversion set forth in the Note) and (d) any securities issued or then issuable upon any stock split, dividend or other distribution,  recapitalization or similar event with respect to the foregoing; provided, however, that any such Registrable Securities shall cease to be Registrable Securities for so long as (a) a registration statement with respect to the sale of such Registrable Securities is declared effective by the Commission under the Securities Act and such Registrable Securities have been disposed of by the Holder in accordance with such effective registration statement, (b) such Registrable Securities have been previously sold in accordance with Rule 144, or (c) such securities become eligible for resale without volume or manner-of-sale restrictions and without current public information pursuant to Rule 144 as set forth in a written opinion letter to such effect, addressed, delivered and acceptable to the Transfer Agent and the affected Holders (assuming that such securities and any securities issuable upon exercise, conversion or exchange of which, or as a dividend upon which, such securities were issued or are issuable, were at no time held by any Affiliate of the Company), as reasonably determined by the Company, upon the advice of counsel to the Company.

 

  

4

  

 

 “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 conversion in full of all Note (including Underlying Shares issuable as payment of interest on the Note), ignoring any conversion limits set forth therein, and assuming that the Conversion Price is at all times on and after the date of determination 75% of the then Conversion Price on the Trading Day immediately prior to the date of determination.

 

“Robinson Brog” means Robinson Brog Leinwand Greene Genovese & Gluck P.C., with offices located at 875 Third Avenue, 9th Floor, New York, New York 10022.

 

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

 

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

 

“Security Agreement” means the Security Agreement, dated the date hereof, among the Company and the Purchasers, in the form of Exhibit D attached hereto.

“Security Documents” shall mean the Security Agreement, the Subsidiary Guarantee, and any other documents and filing required thereunder in order to grant the Purchasers a first priority security interest in the assets of the Company and the Subsidiaries as provided in the Security Agreement, including all UCC-1 filing receipts.

 

  

5

  

 

 “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” means, as to the Purchaser, the aggregate amount to be paid for the Note 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).

 

“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.

 

“Subsidiary Guarantee” means the Subsidiary Guarantee, dated the date hereof, by each Subsidiary in favor of the Purchasers, in the form of Exhibit E attached hereto.

 

 “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 Note, the Security Agreement, the Subsidiary Guarantee, the Guaranty and Pledge Agreement, all exhibits and schedules thereto and hereto and any other documents or agreements executed in connection with the transactions contemplated hereunder.

 

“Transfer Agent” means Standard Registrar & Transfer Company, Inc., the current transfer agent of the Company, with a mailing address of 2528 South 1840 East, Draper, Utah 84020 and a facsimile number of (801) 571-2551, and any successor transfer agent of the Company.

 

“Transfer Agent Instruction Letter” means the letter from the Company to the Transfer Agent which instructs the Transfer Agent to issue Underlying Shares pursuant to the Transaction Documents, in the form of Exhibit C attached hereto.

 

  

6

  

 

“Underlying Shares” means the shares of Common Stock issued and issuable upon conversion or redemption of the Note and issued and issuable in lieu of the cash payment of interest on the Note in accordance with the terms of the Note.

 

“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 Pink OTC Markets, 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.

 

ARTICLE II.

PURCHASE AND SALE

 

2.1 Purchase.  The Purchaser will purchase an aggregate of up to $47,500.00 in Subscription Amount corresponding to an aggregate of up to $50,000.00 in Principal Amount of Notes. The purchase will occur in up to two (2) tranches (each a “Tranche,” and collectively the “Tranches”), with the first Tranche of $25,000 being closed on upon execution of this Agreement (the “First Closing”). The second Tranche will be for $25,000 and will occur on or before the sixty (60) day anniversary of the First Closing.  The Purchaser shall not be required to fund the second Tranche, and may do so at its sole discretion.

 

2.2 Closing.  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 Purchaser agrees to purchase, such Purchaser’s Closing Subscription Amount as set forth on the signature page hereto executed by such Purchaser (an aggregate of up to $50,000.00 in Subscription Amount in connection with the Principal Amount of the Note).  At the Closing, the 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 the Purchaser its Note, as determined pursuant to Section 2.3(a), and the Company and the Purchaser shall deliver the other items set forth in Section 2.3 deliverable at the Closing.  Upon satisfaction of the covenants and conditions set forth in Sections 2.3 and 2.4 for the Closing, the Closing shall occur at the offices of Robinson Brog or such other location as the parties shall mutually agree.

 

  

7

  

 

2.3 Deliveries.

 

(a) On or prior to the Closing Date (except as noted), the Company shall deliver or cause to be delivered to the 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) the Transfer Agent Instruction Letter duly executed by the Company and the Transfer Agent;

 

(iv) a Note with a principal amount equal to such Purchaser’s Principal Amount as to the Closing, registered in the name of such Purchaser; and

 

(v) the Security Agreement, duly executed by the Company and each Subsidiary, along with all of the Security Documents, including the Subsidiary Guarantee, duly executed by the parties thereto; and

 

(vi)           the Guaranty and Pledge Agreement duly executed by the Company and Roger Ralston.

 

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

 

	
(i)  

	
this Agreement duly executed by the Purchaser;

 

(ii) the Purchaser’s Subscription Amount as to the Closing by wire transfer to the account specified in writing by the Company;

 

(iii) the Security Agreement duly executed by such Purchaser; and

 

(iv) the Guaranty and Pledge Agreement duly executed by the Purchaser.

2.4 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 the Purchaser required to be performed at or prior to the Closing Date shall have been performed;

 

  

8

  

 

(iii) the delivery by the Purchaser of the items set forth in Section 2.3(b) of this Agreement; and

 

(iv) the Company must be have complied with SEC Reports and filings as described in Section 3.1(h).

(b) The respective obligations of the Purchaser 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 2.3(a) of this Agreement;

 

(iv) there is no existing Event of Default (as defined in the Note) and no existing event which, with the passage of time or the giving of notice, would constitute an Event of Default;

 

(v) the Company shall be fully current on all SEC filings and reports and there shall be no adverse proceeding initiated, ongoing, or threatened by any governmental or regulatory body.

 

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

 

(vii) 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.

 

  

9

  

 

 

ARTICLE III.

REPRESENTATIONS AND WARRANTIES

 

3.1 Representations 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 the 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.

 

(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.

 

  

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(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 Conversion Shares for trading thereon in the time and manner required thereby and (iii) the filing of Form D with the Commission and such filings as are required to be made under applicable state securities laws (collectively, the “Required Approvals”).

 

(f) Issuance of the Securities.  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 other than restrictions on transfer provided for in the Transaction Documents.  The Underlying Shares, when issued in accordance with the terms of the Transaction Documents, will be validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company other than restrictions on transfer provided for in the Transaction Documents.  The Company has reserved from its duly authorized capital stock a number of shares of Common Stock for issuance of the Underlying Shares at least equal to 300% of the Required Minimum on the date hereof.

 

  

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(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 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 periodic report under the Exchange Act.  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.

 

(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 two years 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, 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 Company has never been an issuer subject to Rule 144(i) under the Securities Act. 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.

 

  

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(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.

 

(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.

 

  

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(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.

 

(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.

 

  

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(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.

 

(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.

 

  

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(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 and the Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that: (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general or specific authorization, and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The Company and the Subsidiaries have established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and the Subsidiaries and designed such disclosure controls and procedures to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms.  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) that have materially affected, or is reasonably likely to materially affect, the internal control over financial reporting of the Company and its Subsidiaries.

 

(s) Certain Fees.  Other than as set forth on Schedule 3.1(s), no brokerage or finder’s fees or commissions are or will be payable by the Company or any Subsidiaries 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.

 

  

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(t) Private Placement.  Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 3.2, no registration under the Securities Act is required for the offer and sale of the Securities by the Company to the Purchasers as contemplated hereby. The issuance and sale of the Securities hereunder does not contravene the rules and regulations of the Trading Market.

 

(u) 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.

 

(v) Registration Rights.  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 Subsidiaries.

 

(w) 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.

 

(x) Application of Takeover Protections.  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.

 

  

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(y) 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.

 

(z) 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 (i) the Securities Act which would require the registration of any such securities under the Securities Act, or (ii) any applicable shareholder approval provisions of any Trading Market on which any of the securities of the Company are listed or designated.

 

(aa) 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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(bb) 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.

 

(cc) No General Solicitation. Neither the Company nor any person acting on behalf of the Company has offered or sold any of the Securities by any form of general solicitation or general advertising.  The Company has offered the Securities for sale only to the Purchasers and certain other “accredited investors” within the meaning of Rule 501 under the Securities Act.

 

(dd) 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.

 

(ee) Accountants.  The Company’s accounting firm is set forth on Schedule 3.1(ee) 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 December 31, 2014.

 

  

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(ff) Seniority.  As of the Closing Date, no Indebtedness or other claim against the Company is senior to the Note in right of payment, whether with respect to interest or upon liquidation or dissolution, or otherwise, other than indebtedness secured by purchase money security interests (which is senior only as to underlying assets covered thereby) and capital lease obligations (which is senior only as to the property covered thereby).

 

(gg) 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.

 

(hh) Acknowledgment Regarding Purchasers’ Purchase of Securities.  The Company acknowledges and agrees that the Purchaser 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 the 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.

 

(ii) Acknowledgment Regarding Purchaser’s Trading Activity.  Anything in this Agreement or elsewhere herein to the contrary notwithstanding (except for Sections 3.2(f) and 4.15 hereof), it is understood and acknowledged by the Company that: (i) the Purchaser has not been asked by the Company to agree, nor has the 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 the 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) the 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) the 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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(jj) 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.

 

(kk) Stock Option Plans. Each stock option granted by the Company under the Company’s stock option plan was granted (i) in accordance with the terms of the Company’s stock option plan and (ii) with an exercise price at least equal to the fair market value of the Common Stock on the date such stock option would be considered granted under GAAP and applicable law. 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.

 

(ll) 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”).

 

(mm) 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.

 

(nn) 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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(oo) 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 or any Subsidiary with respect to the Money Laundering Laws is pending or, to the knowledge of the Company or any Subsidiary, threatened.

 

3.2 Representations and Warranties of the Purchaser.    The 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) Own Account.  Such Purchaser understands that the Securities are “restricted securities” and have not been registered under the Securities Act or any applicable state securities law and is acquiring the Securities as principal for its own account and not with a view to or for distributing or reselling such Securities or any part thereof in violation of the Securities Act or any applicable state securities law, has no present intention of distributing any of such Securities in violation of the Securities Act or any applicable state securities law and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such Securities in violation of the Securities Act or any applicable state securities law (this representation and warranty not limiting such Purchaser’s right to sell the Securities in compliance with applicable federal and state securities laws).  Such Purchaser is acquiring the Securities hereunder in the ordinary course of its business.

 

  

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(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 converts the Note it will be an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act.

 

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

 

(f) 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 terms of the transactions contemplated hereunder and ending immediately prior to the execution hereof.  Notwithstanding the foregoing, in the case the 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.

 

  

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ARTICLE IV.

OTHER AGREEMENTS OF THE PARTIES

 

4.1 Transfer Restrictions.

 

(a) The Securities may only be disposed of in compliance with state and federal securities laws.  In connection with any transfer of Securities other than pursuant to an effective registration statement or Rule 144, to the Company or to an Affiliate of the Purchaser or in connection with a pledge as contemplated in Section 4.1(b), the Company may require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of such transferred Securities under the Securities Act.  As a condition of transfer, any such transferee shall agree in writing to be bound by the terms of this Agreement and shall have the rights and obligations of the Purchaser under this Agreement.

 

(b) The Purchasers agree to the imprinting, so long as is required by this Section 4.1, of a legend on any of the Securities in the following form:

 

[NEITHER] THIS SECURITY [NOR THE SECURITIES INTO WHICH THIS SECURITY IS [EXERCISABLE] [CONVERTIBLE]] HAS [NOT] BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.  THIS SECURITY [AND THE SECURITIES ISSUABLE UPON [EXERCISE] [CONVERSION] OF THIS SECURITY] MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

The Company acknowledges and agrees that the Purchaser may from time to time pledge pursuant to a bona fide margin agreement with a registered broker-dealer or grant a security interest in some or all of the Securities to a financial institution that is an “accredited investor” as defined in Rule 501(a) under the Securities Act and who agrees to be bound by the provisions of this Agreement and, if required under the terms of such arrangement, such Purchaser may transfer pledged or secured Securities to the pledgees or secured parties.  Such a pledge or transfer would not be subject to approval of the Company and no legal opinion of legal counsel of the pledgee, secured party or pledgor shall be required in connection therewith.  Further, no notice shall be required of such pledge.  At the appropriate Purchaser’s expense, the Company will execute and deliver such reasonable documentation as a pledgee or secured party of Securities may reasonably request in connection with a pledge or transfer of the Securities.

 

  

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(c) Certificates evidencing the Underlying Shares shall not contain any legend (including the legend set forth in Section 4.1(b) hereof): (i) while a registration statement covering the resale of such security is effective under the Securities Act, (ii) following any sale of such Underlying Shares pursuant to Rule 144, (iii) if such Underlying Shares are eligible for sale under Rule 144 or (iv) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the Commission). The Company shall cause its counsel to issue a legal opinion to the Transfer Agent promptly after any of the events described in (i)-(iv) in the preceding sentence if required by the Transfer Agent to effect the removal of the legend hereunder (with a copy to the applicable Purchaser and its broker).  If all or any portion of a Note is converted at a time when there is an effective registration statement to cover the resale of the Underlying Shares, or if such Underlying Shares may be sold under Rule 144 or if such legend is not otherwise required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the Commission) then such Underlying Shares shall be issued free of all legends.  The Company agrees that following the Effective Date or at such time as such legend is no longer required under this Section 4.1(c), it will, no later than three (3) Trading Days following the delivery by the Purchaser to the Company or the Transfer Agent of a certificate representing Underlying Shares, as applicable, issued with a restrictive legend (such third Trading Day, the “Legend Removal Date”), deliver or cause to be delivered to such Purchaser a certificate representing such shares that is free from all restrictive and other legends.  The Company may not make any notation on its records or give instructions to the Transfer Agent that enlarge the restrictions on transfer set forth in this Section 4.  Certificates for Underlying Shares subject to legend removal hereunder shall be transmitted by the Transfer Agent to the Purchaser by crediting the account of the Purchaser’s prime broker with the Depository Trust Company System as directed by such Purchaser.

(d) In addition to such Purchaser’s other available remedies, the Company shall pay to the Purchaser, in cash, as partial liquidated damages and not as a penalty, for each $1,000 of Underlying Shares (based on the VWAP of the Common Stock on the date such Securities are submitted to the Transfer Agent) delivered for removal of the restrictive legend and subject to Section 4.1(c), $10 per Trading Day (increasing to $20 per Trading Day five (5) Trading Days after such damages have begun to accrue) for each Trading Day after the Legend Removal Date until such certificate is delivered without a legend.  Nothing herein shall limit such Purchaser’s right to pursue actual damages for the Company’s failure to deliver certificates representing any Securities as required by the Transaction Documents, and such Purchaser shall have the right to pursue all remedies available to it at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief.

 

  

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4.2 Acknowledgment 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. In the event of an issuance of stock involving tranches or other multiple closings, the anti-dilution adjustment shall be calculated as if all stock was issued at the Closing.

 

4.3 Furnishing of Information; Public 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 no Purchaser owns Securities, 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.

 

(b)           At any time during the period commencing from the six (6) month anniversary of the date hereof and ending at such time that all of the Securities may be sold without the requirement for the Company to be in compliance with Rule 144(c)(1) and otherwise without restriction or limitation pursuant to Rule 144, if the Company shall fail for any reason to satisfy the current public information requirement under Rule 144(c) (a “Public Information Failure”) then, in addition to such Purchaser’s other available remedies, the Company shall pay to the Purchaser, in cash, as partial liquidated damages and not as a penalty, by reason of any such delay in or reduction of its ability to sell the Securities, an amount in cash equal to two percent (2.0%) of the aggregate Subscription Amount of such Purchaser’s Securities on the day of a Public Information Failure and on every thirtieth (30th) day (pro rated for periods totaling less than thirty days) thereafter until the earlier of (a) the date such Public Information Failure is cured and (b) such time that such public information is no longer required  for the Purchasers to transfer the Underlying Shares pursuant to Rule 144.  The payments to which the Purchaser shall be entitled pursuant to this Section 4.3(b) are referred to herein as “Public Information Failure Payments.”  Public Information Failure Payments shall be paid on the earlier of (i) the last day of the calendar month during which such Public Information Failure Payments are incurred and (ii) the third (3rd) Business Day after the event or failure giving rise to the Public Information Failure Payments is cured.  In the event the Company fails to make Public Information Failure Payments in a timely manner, such Public Information Failure Payments shall bear interest at the rate of 1.5% per month (prorated for partial months) until paid in full. Nothing herein shall limit such Purchaser’s right to pursue actual damages for the Public Information Failure, and such Purchaser shall have the right to pursue all remedies available to it at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief.

 

  

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4.4 Integration.  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 in a manner that would require the registration under the Securities Act of the sale of the Securities or 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.

 

4.5 Conversion and Exercise Procedures.  The form of Notice of Conversion included in the Note set forth the totality of the procedures required of the Purchasers in order to convert the Note.  Without limiting the preceding sentences, no ink-original Notice of Exercise or Notice of Conversion shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Conversion form be required in order to convert the Note.  No additional legal opinion, other information or instructions shall be required of the Purchasers to convert its Note.  The Company shall honor conversions of the Note and shall deliver Underlying Shares in accordance with the terms, conditions and time periods set forth in the Transaction Documents.

 

4.6 Securities Laws Disclosure; Publicity.  The Company shall (a) by 9:30 a.m. (New York City time) on the Trading Day immediately following the date hereof, issue a press release disclosing the material terms of the transactions contemplated hereby, and (b) file a Current Report on Form 8-K, including the Transaction Documents as exhibits thereto, with the Commission within the time required by the Exchange Act.  From and after the issuance of such press release, the Company represents to the Purchaser that it shall have publicly disclosed all material, non-public information delivered to the Purchaser 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 the 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 the  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 law in connection with any registration statement 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).

 

  

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4.7 Shareholder 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 the Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company.

 

4.9 Use of Proceeds.  The Company shall use the net proceeds hereunder as set forth on Schedule 4.9 attached hereto, 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.

 

4.10 Indemnification of Purchaser.   Subject to the provisions of this Section 4.10, the Company will indemnify and hold the Purchaser and its directors, officers, shareholders, members, managers, 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, managers, 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 the 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.

 

  

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4.11 Reservation and Listing of Securities.

 

(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. On a monthly basis, the Company will adjust the reserve as necessary to make sure that 300% of the Required Minimum is available. However, at no point should the reserve be adjusted downwards.

 

(b) If, on any date, the number of authorized but unissued (and otherwise unreserved) shares of Common Stock is less than 300% of the Required Minimum on such date, 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 300% of the Required Minimum at such time, as soon as possible and in any event not later than the 75th day after such date.

 

(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.

 

  

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4.12 Participation in Future Financing.

 

(a) From the date hereof until the date that is the 12-month anniversary of the last Closing, upon any issuance by the Company or any of its Subsidiaries of Common Stock, Common Stock Equivalents or debt for cash consideration, Indebtedness, assignment, or a combination of units hereof (a “Subsequent Financing”), the Purchaser shall have the right to participate in up to an amount of the Subsequent Financing equal to 100% of the Subsequent Financing (the “Participation Maximum”) on the same terms, conditions and price provided for in the Subsequent Financing.

 

(b) At least five (5) Trading Days prior to the closing of the Subsequent Financing, the Company shall deliver to the 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 the 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 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.

 

(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 fifth (5th) Trading Day after the Purchaser has 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 the Purchaser as of such fifth (5th) 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 fifth (5th ) Trading Day after the Purchaser has received the Pre-Notice, notifications by the Purchaser of its willingness to participate in the Subsequent Financing (or to cause their designees to participate) is, in the aggregate, less than the total amount of the Subsequent Financing, then the Company may effect the remaining portion of such Subsequent Financing on the terms and with the Persons set forth in the Subsequent Financing Notice.

 

(e) If by 5:30 p.m. (New York City time) on the fifth (5th) Trading Day after the Purchaser has received the Pre-Notice, the Company receives responses to a Subsequent Financing Notice from the Purchaser seeking to purchase more than the aggregate amount of the Participation Maximum, the 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 by the Purchaser participating under this Section 4.12 and (y) the sum of the aggregate Subscription Amounts of Securities purchased by all Purchasers participating under this Section 4.12.

 

  

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(f) The Company must provide the Purchaser with a second Subsequent Financing Notice, and the Purchaser will again have the right of participation set forth above in this Section 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 the 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.

 

(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.

 

4.13 Subsequent Equity Sales.

 

(a) From the date hereof until such time that the Purchaser no longer holds the Note, in the event the Company or any of its Subsidiaries has received and wishes to accept a bona fide offer from a Person(s) other than the Purchaser (the “Third-Party Offer”), to effect or enter into an agreement to effect any issuance by the Company or any of its Subsidiaries of Common Stock or Common Stock Equivalents (or a combination of units thereof) involving a Variable Rate Transaction (the “Offered Securities”), the Company shall give notice thereof to, which notice shall include a description of the material economic terms and conditions of such Third-Party Offer in connection with the Offered Securities (the “Sale Notice”).  “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 issue securities at a future determined price.   In the event the Company or any of its Subsidiaries does not follow the provisions of this Section 4.13, then the 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.

 

  

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(b) The Purchaser shall have the option for a period of two (2) days from the giving of the Sale Notice (the “Two-Day Period”) to elect to purchase the Offered Securities at the same price and subject to the same material terms and conditions as described in the Sales Notice.  The Purchaser may exercise such right by notifying the Company in writing, before expiration of the Two-Day Period.

(c) Notwithstanding the foregoing, if the Purchaser has not elected to purchase the Offered Securities within the Two-Day Period, the Purchaser shall be deemed to have forfeited any right to purchase the Offered Securities, and the Company or the Subsidiary shall be free to sell all, but not less than all, of the Offered Securities on terms and conditions substantially similar to (and in no event more favorable to the Person(s) identified in the Sale Notice) the terms and conditions set forth in the Sale Notice, provided that such sale is consummated within ninety (90) days after receipt of the Sale Notice (if such sale is not consummated within such ninety (90) day period, such sale again becoming subject to the provisions of this Section 4.13).

(d) Section 4.13 shall not apply in respect of an Exempt Issuance, except that no Variable Rate Transaction shall be an Exempt Issuance.

4.14 Equal 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 this Agreement unless the same consideration is also offered to all of the parties to this Agreement. Further, the Company shall not make any payment of principal or interest on the Note in amounts which are disproportionate to the principal amount outstanding on the Note at any applicable time.  For clarification purposes, this provision constitutes a separate right granted to the Purchaser by the Company and negotiated separately by the 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.

 

4.15 Certain Transactions and Confidentiality. The Purchaser covenants that neither it, nor any Affiliate acting on its behalf or pursuant to any understanding with it will (i) execute any 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 and (ii) execute any Short Sales of the Common Stock from the date hereof until the earlier of (x) 5 month anniversary of the date hereof and (y) the date that the Note is no longer outstanding (provided that this provision shall not prohibit any sales made where a corresponding Notice of Conversion or Notice of Exercise is tendered to the Company and the shares received upon such conversion or exercise are used to close out such sale) (a “Prohibited Short Sale”).  The Purchaser 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) except for a Prohibited Short Sale, 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 the 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.

 

  

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4.16 Form D; Blue Sky Filings.  The Company agrees to timely file a Form D with respect to the Securities as required under Regulation D and to provide a copy thereof, promptly upon request of any Purchaser. The Company shall take such action as the Company shall reasonably determine is necessary in order to obtain an exemption for, or to qualify the Securities for, sale to the Purchasers at the Closing under applicable securities or “Blue Sky” laws of the states of the United States, and shall provide evidence of such actions promptly upon request of any Purchaser.

 

4.17           Piggy-Back Registrations.  If at any time prior to the conversion of the Note, the Company shall determine to prepare and file with the Commission a registration statement relating to an offering for its own account or the account of others under the Securities Act of any of its equity securities (a “Registration Statement”), other than on Form S-4 or Form S-8 (each as promulgated under the Securities Act) or their then equivalents relating to equity securities to be issued solely in connection with any acquisition of any entity or business or equity securities issuable in connection with the Company’s stock option or other employee benefit plans, then the Company shall deliver to each Holder a written notice of such determination and, if within fifteen days after the date of the delivery of such notice, any such Holder shall so request in writing, the Company shall include in such registration statement all or any part of such Registrable Securities such Holder requests to be registered; provided, however, that the Company shall not be required to register any Registrable Securities pursuant to this Section 6(e) that are eligible for resale pursuant to Rule 144 (without volume restrictions or current public information requirements) promulgated by the Commission pursuant to the Securities Act or that are the subject of a then effective Registration Statement

 

  

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ARTICLE V.

MISCELLANEOUS

 

5.1 Termination.  This Agreement may be terminated by the Purchaser, as to such Purchaser’s obligations hereunder, by written notice to the other parties, if the Closing has not been consummated on or before April 8, 2015; provided, however, that such termination will not affect the right of any party to sue for any breach by any other party (or parties).

 

5.2 Fees and Expenses.  At the Closings, the Company has agreed to reimburse The Purchaser the sum of $5,000 for expenses associated with due diligence, and its legal fees, which shall be paid at the Closing. The Company shall deliver to the Purchaser, prior to the Closing, a completed and executed copy of the Closing Statement, attached hereto as Annex A.  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 conversion or exercise notice delivered by the Purchaser), stamp taxes and other taxes and duties levied in connection with the delivery of any Securities to the Purchasers.

 

5.3 Entire Agreement.  The Transaction Documents, together with the exhibits and schedules thereto, 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.

 

5.4 Notices.  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 at the facsimile number 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.

 

5.5 Amendments; 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 67% 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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5.6 Headings.  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.

 

5.7 Successors 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 the Purchaser (other than by merger).  The 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 “Purchaser.”

 

5.8 No Third-Party Beneficiaries.  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.

 

5.9 Governing 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.

 

  

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

 

5.11 Execution.  This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to 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.

 

5.12 Severability. 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.

 

5.13 Rescission 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 a conversion of a Note, the applicable Purchaser shall be required to return any shares of Common Stock subject to any such rescinded conversion 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.

 

5.14 Replacement 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.

 

  

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5.15 Remedies.  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.

 

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

 

5.17 Usury.  To the extent it may lawfully do so, the Company hereby agrees not to insist upon or plead or in any manner whatsoever claim, and will resist any and all efforts to be compelled to take the benefit or advantage of, usury laws wherever enacted, now or at any time hereafter in force, in connection with any claim, action or proceeding that may be brought by any Purchaser in order to enforce any right or remedy under any Transaction Document.  Notwithstanding any provision to the contrary contained in any Transaction Document, it is expressly agreed and provided that the total liability of the Company under the Transaction Documents for payments in the nature of interest shall not exceed the maximum lawful rate authorized under applicable law (the “Maximum Rate”), and, without limiting the foregoing, in no event shall any rate of interest or default interest, or both of them, when aggregated with any other sums in the nature of interest that the Company may be obligated to pay under the Transaction Documents exceed such Maximum Rate.  It is agreed that if the maximum contract rate of interest allowed by law and applicable to the Transaction Documents is increased or decreased by statute or any official governmental action subsequent to the date hereof, the new maximum contract rate of interest allowed by law will be the Maximum Rate applicable to the Transaction Documents from the effective date thereof forward, unless such application is precluded by applicable law.  If under any circumstances whatsoever, interest in excess of the Maximum Rate is paid by the Company to any Purchaser with respect to indebtedness evidenced by the Transaction Documents, such excess shall be applied by such Purchaser to the unpaid principal balance of any such indebtedness or be refunded to the Company, the manner of handling such excess to be at such Purchaser’s election.

 

5.18 Liquidated 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.

 

  

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5.19 Saturdays, 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.

 

5.20 Construction. 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.

 

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

 

(Signature Pages Follow)

 

  

38

  

 

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.

 

	
DIRECTVIEW HOLDINGS, INC.

 

 

	
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]

 

  

39

  

 

[PURCHASER SIGNATURE PAGES TO 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):

Closing Subscription Amount: _____________

Closing Principal Amount: _____________

EIN Number: _______________________

 

 

  

40

  

Annex A

CLOSING STATEMENT

Pursuant to the attached Securities Purchase Agreement, dated as of the date hereto, the purchasers shall purchase Note from DirectView Holdings, Inc. (the “Company”).  All funds will be wired into an account maintained by the Company.  All funds will be disbursed in accordance with this Closing Statement.

	
Disbursement Date:

	
April 8, 2015

	
I.   PURCHASE PRICE

 

	  
	  	
Gross Proceeds to be Received

	
$25,000

	  	  
	
II.      DISBURSEMENTS

 

	  
	  	
Purchaser Legal Fees

	
$5,000

	  	
 

	
$

	  	  	
$

	  	  	
$

	  	  	
$

	  	  
	
Total Amount Disbursed:

	
$5,000

	  	  
	
WIRE INSTRUCTIONS:

 

Bank Name:  Capital One Bank

            Trump Park Ave Branch

            502 Park Ave

            New York NY 10022

           (212) 980-3840

 

Routing Number: 021407912

 

	

 

 

Account Number: 752 764 6515

 

Beneficiary: Directview Holding, Inc.

 

Beneficiary Address: 21218 ST Andrews Blvd., SUITE 323, Boca Raton, FL 33433

 

	
Duly executed this 8th day of April, 2015:

 

DirectView Holdings, Inc.

 

By: ___________________

Name:

Title:

	  

 

  

41

  

Schedule 3.1(a)

Subsidiaries

DirectView Video Technologies, Inc.

DirectView Security Systems, Inc.

Ralston Communication Services, Inc.

Meeting Technologies, Inc.

 

  

42

  

Schedule 3.1(b)

Organization and Qualification

The Company was incorporated in the State of Delaware on October 2, 2006.  On July 6, 2012 the Company attempted to change its domicile from Delaware and incorporated in the state of Nevada. However, back in July of 2012, Company never filed Articles of Conversion with the State of Nevada, and failed to file Articles of Conversion with the State of Delaware to complete the conversion process. In addition, the Company did not obtain a majority consent to effectuate the redomicle as required by law.  As such, the Company remedied these errors and has obtained a majority consent and filed a Schedule 14C with the SEC on April 18, 2014.  Following that filing, and in accordance with the Rules of the Exchange Act, the Company filed Articles of Conversion with the State of Nevada and the State Delaware to complete the redomicle.

 

  

43

  

Schedule 3.1(g)

Capitalization

500,000,000 common shares authorized

309,000,000 issued and additional 25,000,000 to be issued in connection with the redemption of certain convertible notes on 4/7/14

5,000,000 preferred authorized

0 preferred issued

There are no options

Affiliate Shares

Roger Ralston has ___87,100,000_Shares

Michele Ralston has _250,000_Shares

Convertible debentures and notes outstanding (non-affiliate)

Sharon Standowski $44,246.00 aggregate principal amount convertible at par and redeemable by the company at 120% of face value + interest issued in 2008

Ascendant Partners $15,246.00 aggregate principal amount convertible at par and redeemable by the company at 120% of face value + interest issued in 2008

Ascendant Partners $10,000.00 principal amount convertible at .00075 and redeemable by the company at 120% of face value + interest  issued 10/13

Ascendant Partners $25,000.00 principal amount convertible at a 50% VWAP discount due in December 2014 – issued 12/13

 

Plantation Partners $8,000.00 principal amount convertible at par and redeemable by the company at 120% of face value + interest  issued 8/13

Blulife $25,000.00 which converts at a 50% disc due in January 2015 issued 1/14

$150,000.00 in non convertible debt @ 6% interest issued 3/14

There is an aggregate amount of notes scheduled for redemption on 4/7/2014 for which the company has paid approximately $45,000.00 in principal and interest as of that date to complete the redemption.

 

  

44

  

 $10,843. Note

$193,065. Loan

$481,786. Note

$8,119. Loan

8% Original Issue Discount Senior Secured Convertible Promissory Note, dated April 11, 2014, in the principal amount of $367,753.62.

 

  

45

  

Schedule 3.1(i)

Material Changes; Undisclosed Events, Liabilities or Developments

See Schedule 3.1(b)

 

  

46

  

Schedule 3.1(s)

Certain Fees

Not Applicable

 

  

47

  

Schedule 3.1(aa)

Solvency

See EDGAR filings on www.sec.gov

 

  

48

  

Schedule 3.1(cc)

Accountants

D’ARELLI PURZANZKY, PA

MITCHEL PURZANZKY

 

7280 West Palmetto Park Road, Suite 308-N

Boca Raton, FL  33433

Phone: (561)756-9250

info@darellipruzansky.com

 

  

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Schedule 4.9

Use of Proceeds

____

50

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