Document:

THIS CONVERTIBLE PROMISSORY NOTE
HAS NOT BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE. THIS
CONVERTIBLE PROMISSORY NOTE IS BEING OFFERED PURSUANT TO A SAFE HARBOR FROM REGISTRATION UNDER REGULATION D PROMULGATED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). THIS CONVERTIBLE PROMISSORY NOTE IS “RESTRICTED”
AND MAY NOT BE OFFERED OR SOLD UNLESS THIS PROMISSORY NOTE IS REGISTERED UNDER THE ACT, OR ELIGIBLE TO BE OFFERED OR SOLD PURSUANT
TO AVAILABLE EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND THE COMPANY WILL BE PROVIDED WITH OPINION OF COUNSEL
OR OTHER SUCH INFORMATION AS IT MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH EXEMPTIONS ARE AVAILABLE. FURTHER HEDGING TRANSACTIONS
INVOLVING THE SECURITIES MAY NOT BE MADE EXCEPT IN COMPLIANCE WITH THE ACT.

CONVERTIBLE PROMISSORY NOTE

	$689,620.19	Dated:  February 3, 2012

 

This convertible
promissory note (this “Note”) is being issued pursuant to the terms of that certain Purchase, Sale and Share
Exchange Agreement, dated February 3, 2012, by and among Global NuTech, Inc., a Nevada corporation (the “Company”
or “Maker”), Fishbone Solutions, Ltd., a Texas limited partnership (“FS”) and the Equity-Holders
of FS (the “Equity-Holders”) dated on even date with this Note.

FOR VALUE RECEIVED,
 the Company hereby promises to pay to the holder of this Note or his assigns (the "Holder"), the principal amount
of Six Hundred Eighty-Nine Thousand Six Hundred Twenty Dollars and 19/100 ($689,620.19) with interest accrued on the unpaid principal
balance at the rate of nineteen one hundreths percent (.19%) per annum, all of such principal and interest, or any portion thereof,
shall be payable in Common Stock of the Company according to Section 3. below, with any remaining outstanding principal balance
and accrued interest due on February 3, 2015..

Payments of principal
and interest hereon shall be made in Common Stock of the Company delivered to the latest address of record or at such other address
as the initial Holder or any subsequent Holder of this Note may designate in writing, without requiring any presentation or surrender
of this Note, except, if this Note is paid or prepaid in full, it shall be promptly surrendered to the Company for cancellation.

TERMS AND PROVISIONS:

1. TERMS OF PAYMENT. The Company
must make payment in the form of shares of common stock of the Company (“Common Stock”) to cancel all or part
of such principal amount of this Note or series of remainder Notes which may replace this Note. The Holder acknowledges
that the repayment of this Note will be made in the form of shares of Common Stock of the Company in lieu of cash payments
due, unless the Holder has specifically elected to exercise its optional conversion rights as set forth in Section 2 of
this Note. Any shares of Common Stock issued hereunder shall be subject to the provisions of Rule 144, as promulgated by the SEC
pursuant to the Securities Act of 1933, including exemptions from registration, restrictions on resale and rights of resale as
set forth in Rule 144.

    	 

    	 

    
 

2. PAYMENT
IN THE FORM OF SHARES. Upon the Company’s election to make payment or a series of payments on the Note in the form of
shares of Common Stock, the number of shares called for to be issued at any one time it to be determined by dividing the unpaid
principal amount, and accrued interest thereon, of the outstanding indebtedness, by a factor of 0.12, subject to limitations set
forth in Section 2.3, below.

3. OPTIONAL
CONVERSION OF NOTE BY HOLDER. This Note shall be convertible into shares of Common Stock at the option of the Holder, on the
terms and conditions set forth in this Section 3.

3.1 Conversion
Right. Subject to the provisions of Section 3.3, at any time, the Holder shall be entitled to convert any portion of
the outstanding and unpaid Conversion Amount (as defined below) into fully paid and non-assessable shares of Common Stock in accordance
with Section 3.2. The number of shares of Common Stock issuable upon conversion of any Conversion Amount pursuant to this
Section 3.1 shall be determined by dividing the unpaid principal amount, and accrued interest thereon, of the outstanding
indebtedness, by a factor of 0.12 (the “Conversion Price”). The Company shall not issue any fraction of a share of
Common Stock upon any conversion. If the issuance would result in the issuance of a fraction of a share of Common Stock, the Company
shall round such fraction of a share of Common Stock up to the nearest whole share. The Company shall pay any and all transfer,
stamp and similar taxes that may be payable with respect to the issuance and delivery of Common Stock upon conversion of any Conversion
Amount.

		(a)	“Conversion Amount” means the portion of the principal amount and accrued interest
to be converted or otherwise with respect to which this determination is being made.

3.2 Mechanics of Conversion.

		(a)	Optional Conversion. To convert any Conversion Amount into shares of Common Stock on any
date (a “Conversion Date”), the Holder shall (A) transmit by facsimile (or otherwise deliver), for receipt on
or prior to 11:59 p.m., Central Time, on such date, a copy of an executed notice of conversion in the form attached hereto as Exhibit
I (the “Conversion Notice”) to the Company and (B) if required by Section 3.2(b), surrender this
Note to a nationally recognized overnight delivery service for delivery to the Company (or an indemnification undertaking reasonably
satisfactory to the Company with respect to this Note in the case of its loss, theft or destruction). On or before the third business
day following the date of receipt of a Conversion Notice (the “Share Delivery Date”), the Company shall (X)
if legends are not required to be placed on certificates of Common Stock and provided that the Company’s transfer agent (the
“Transfer Agent”) is participating in the Depository Trust Company’s (“DTC”) Fast Automated
Securities Transfer Program, credit such aggregate number of shares of Common Stock to which the Holder shall be entitled to the
Holder’s or its designee’s balance account with DTC through its Deposit Withdrawal Agent Commission system or (Y) if
the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, issue and deliver to the address
as specified in the Conversion Notice, a certificate, registered in the name of the Holder or its designee, for the number of shares
of Common Stock to which the Holder shall be entitled which certificates shall not bear any restrictive legends unless required
by law. If this Note is physically surrendered for conversion and the outstanding principal amount of this Note is greater than
the principal portion of the Conversion Amount being converted, then the Company shall as soon as practicable and in no event later
than three (3) business days after receipt of this Note and at its own expense, issue and deliver to the Holder a new Note representing
the outstanding principal not converted. The person or persons entitled to receive the shares of Common Stock issuable upon a conversion
of this Note shall be treated for all purposes as the record holder or holders of such shares of Common Stock upon the transmission
of a Conversion Notice.

    	-2-

    	 

    

		(b)	Book-Entry. Notwithstanding anything to the contrary set forth herein, upon conversion of
any portion of this Note in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note
to the Company unless (A) the full Conversion Amount represented by this Note is being converted or (B) the Holder has provided
the Company with prior written notice (which notice may be included in a Conversion Notice) requesting reissuance of a new Note
upon physical surrender of this Note. The Holder and the Company shall maintain records showing the principal and interest converted
and the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder and the Company, so as
not to require physical surrender of this Note upon conversion.

3.3 Limitations
on Conversions.

		(a)	Beneficial Ownership. Until the third year anniversary and except in the event of default
or the occurrence of a Conversion Right under Section 4 hereof, the Company shall not effect any conversions of this Note and the
Holder shall not have the right to convert any portion of this Note or receive shares of Common Stock as payment hereunder to the
extent that after giving effect to such conversion or receipt of such interest payment, the Holder, together with any affiliate
thereof, would beneficially own (as determined in accordance with Section 13(d) of the Securities Exchange Act of 1934 and the
rules promulgated thereunder) in excess of 4.99% of the number of shares of Common Stock outstanding immediately after giving effect
to such conversion or receipt of shares as payment of interest. Since the Holder will not be obligated to report to the Company
the number of shares of Common Stock it may hold at the time of a conversion hereunder, unless the conversion at issue would result
in the issuance of shares of Common Stock in excess of 4.99% of the then outstanding shares of Common Stock without regard to any
other shares which may be beneficially owned by the Holder or an affiliate thereof, the Holder shall have the authority and obligation
to determine whether the restriction contained in this Section will limit any particular conversion hereunder and to the extent
that the Holder determines that the limitation contained in this Section applies, the determination of which portion of the principal
amount of this Note is convertible shall be the responsibility and obligation of the Holder. If the Holder has delivered a Conversion
Notice for a principal amount of this Note that, without regard to any other shares that the Holder or its affiliates may beneficially
own, would result in the issuance in excess of the permitted amount hereunder, the Company shall notify the Holder of this fact
and shall honor the conversion for the maximum principal amount permitted to be converted on such Conversion Date in accordance
with Section 3.1 and, any principal amount tendered for conversion in excess of the permitted amount hereunder shall remain
outstanding under this Note.

    	-3-

    	 

    

		(b)	For a period of three (3) years following the date and issuance of this Note, the Holder may convert
and sell, on an annual basis, no more than Fifteen percent (15%) of the original principal balance and accrued interest of this
Note. Specifically, Holder will be restricted from selling converted stock except as follows:

(a) zero percent
(0%) until the one year anniversary; (b) no more than fifteen percent (15%) of the principal amount and accrued interest of this
Note from the one year anniversary date until the day before the two year anniversary; (c) an additional fifteen percent (15%)
from the two year anniversary until the day before the three year anniversary of the Note; and (d) the entire remaining balance
of accrued interest and principal thereon will become due and all stock converted from the Note become unrestricted for sale on
the three year anniversary of the Note, at which time all such limitations on sale will be lifted. Notwithstanding, holder must
commence any conversion process of any remaining balance on the Notes no later than the third year anniversary. The Notes may also
become due and subject to rights of conversion in the event of a Liquidation Event, a change of control, or as otherwise described
in below.

Notwithstanding
anything herein to the contrary, Holder will be entitled to commence the conversion notification process at such time as may be
necessary in advance of the restricted time frames stated above to permit Holder to exercise its rights of sale of converted stock
as the above stated parameters are satisfied.

    	-4-

    	 

    
 

			Thereafter, the Holder may convert the remaining outstanding principal balance of this Note and
accrued interest, subject only to the provisions of Section 2.3(a), above.

4. Holder’s
Additional Conversion Rights and Default.

4.1 Conversion.
In addition to the rights of conversion stated above at the first second and third year anniversaries, at the option of the
Holder, the restriction upon conversion and sale will also be removed in the even of a “Liquidation Event” as described
below; or (ii) the change of control, or sale, of the Company. In such event, the dollar value of the Note shall be immediately
permitted for conversion into shares of Common Stock at the Conversion Price and unrestricted for immediate sale. For purposes
of this Note, “change of control” means the occurrence of any of the following events (whether or not approved
by the Board):

		(a)	any transaction or series of related transactions (including but not limited to a merger or reorganization)
which results in holders of the Company’s capital stock outstanding prior to such event owning less than 50% of either (x)
the total voting power of the then outstanding voting stock of the Company or (y) the total economic ownership of the then outstanding
Common Stock of the Company;

		(b)	the Company consolidates with or merges or sells, assigns, conveys, transfers, leases or otherwise
disposes of all or substantially all of its assets unless holders of the Company’s capital stock outstanding prior to such
event own at least 50% of the surviving or purchasing entity;

 

Notwithstanding the above,
in no event shall any future conversion of the Series A Convertible Preferred Shares be deemed a change of control.

 

Also for purposes of this
Note “sale of the company” means a sale of the Company pursuant to which the acquirer(s) acquire(s) (i) 50.1%
of the shares of capital stock of the Company (whether by merger, consolidation, sale or transfer or stock or otherwise), or (ii)
all or substantially all of the assets of the Company and its subsidiaries taken as a whole (by merger, consolidation, reorganization,
sale of assets, sale of stock or otherwise). The conversion and sale rights under the Note will at all time be subject to Rule
144 or similar rules of the SEC governing restricted securities.

 

4.2 Adjustments to Number
of Shares. The number of shares of Common Stock issuable upon conversion of each amount of Note value shall be adjusted
from time to time as follows:

 

If, after the date of the
Notes, the Company (a) pays a dividend or makes a distribution on its Common Stock in shares of its capital stock, (b) subdivides
its outstanding shares of Common Stock into a greater number of shares, (c) combines its outstanding shares of Common Stock into
a smaller number of shares, or (d) issues by reclassification of its shares of Common Stock any shares of capital stock of the
Company, then the number of shares of Common Stock issuable upon conversion of each dollar of Note value shall be adjusted so that
the holder of a Note, or part thereof, thereafter surrendered for conversion shall be entitled to receive the number and kind of
shares of capital stock that such holder would have owned immediately following such action had such Note amount been converted
immediately prior thereto and the Conversion Price shall be appropriately adjusted to reflect any such event. An adjustment made
pursuant to this Section 4.2 shall become effective immediately after the record date in the case of a dividend or distribution
and shall become effective immediately after the effective date in the case of a subdivision, combination, or reclassification.
Appropriate adjustment shall be made on a Certificate of Designation to give effect to each such change.

 

    	-5-

    	 

    
 

 

4.3 Liquidating Event.
Upon any liquidation, dissolution, or winding up of the Company (a “Liquidation Event”), the entire remaining principal
balance and accrued but unpaid interest on this Note may, at the option of the Holder, become immediately due and payable and be
immediately convertible by Holder into shares of stock without notice of any kind from the Holder. Each such indebtedness to a
Note Holder must be paid in stock before the Company may distribute any amounts or property to any Shareholders of the Company.

 

5. MANDATORY CONVERSION.
On the third (3rd) anniversary date and issuance of this Note, the entire remaining outstanding balance of principal
and interest shall be converted into shares of the Company's common stock in the same manner as provided for in Section 2, above.

 

6. RESERVATION OF TREASURY
SHARES. In order to secure the payment and performance in full of all of the Company’s obligations under this Note, the
Company covenants and agrees to at all times maintain, reserve and keep available out of its authorized Common Stock the full number
of shares of Common Stock of the Company issuable upon the conversion of all outstanding Notes of the Equity Holders or their assigns,
and shall keep the Company’s financial statements current at all times in order to comply with any requirements under Rule
144 for the issuance of free trading shares upon conversion. In the event that the Company does not have a sufficient number of
shares of authorized but unissued Common Stock necessary to satisfy the full conversion of the Notes, then such failure will constitute
an event of default under this Note and entitle Seller to exercise all remedies specified therein, including without limitation
seeking recovery for any difference in value in the Stock that may result from a delay in the issue of converted shares. In the
event of such failure to have a sufficient number of shares available, the holder of such Note will be entitled, without waiving
any remedy for losses arising as a result of such breach, to require the Company to call and hold a meeting of the shareholders
within 60 days of such occurrence for the sole purpose of increasing the number of authorized shares of Common Stock. The Holder
shall have the right to vote at any shareholder meeting or issue arising requiring consent of his shares on an as converted basis.
The Company’s Board of Directors shall recommend to shareholders a vote in favor of such proposal and shall vote all shares
held by them, in proxy or otherwise, in favor of such proposal. This remedy is not intended to limit the remedies available to
the Holder of this Note, but is intended to be in addition to any other remedies, whether in contract, at law or in equity.

 

7. SUCCESSORS AND ASSIGNS.
This Note shall inure to the benefit of and be binding upon the successors and assigns of the Holder of this Note. The provisions
hereof are intended to be for the benefit of all Holders, from time to time, of this Note, and shall be enforceable by any such
Holder, whether or not an express assignment to such Holder of rights hereunder shall have been made by the Holder or any successor
or assign. the Company may not assign it's obligation to perform according to the terms of this Note without the prior written
consent of the Holder of this Note.

    	-6-

    	 

    
 

8. EXPENSES.
The Company agrees to pay all reasonable out-of-pocket expenses incurred by the Holder of this Note, including the reasonable fees,
charges and disbursement of legal counsel for such Holder, in connection with any amendment, waiver, supplement or modification
to, or enforcement or protection of such Holder’s rights under this Note.

			9. NO WAIVER; RIGHTS AND REMEDIES CUMULATIVE. No failure or delay on the part of the Holder
in exercising any right, power or privilege hereunder and no course of dealing between the Company and the Holder shall operate
as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or
further exercise thereof or hereunder or the exercise of any other right, power or privilege hereunder. The rights, powers and
remedies herein expressly provided are cumulative and not exclusive of any rights, powers or remedies which the Holder of this
Note would otherwise have. No notice to or demand on the Company in any case shall entitle the Company to any other, or further,
notice or demand in similar or other circumstances or constitute a waiver of the rights of the Holder to any other or further action
in any circumstances without notice or demand.

10. WAIVER OF USURY. Notwithstanding
any provisions herein to the contrary, Maker acknowledges and agrees that the total liability for payments in the nature of interest
shall not exceed the limits now imposed by the usury laws of the State of Texas, and no Holder shall ever be entitled to receive,
collect or apply, as interest on the indebtedness, any amount in excess of the maximum legal rate of interest permitted to be charged
by applicable law, and, in the event any Holder ever receives, collects or applies, as interest, any such excess, such amount which
would be excessive interest shall be applied to the reduction of the unpaid principal balance of the indebtedness, and if the unpaid
principal balance of the indebtedness is paid in full, any remaining excess shall be forthwith paid to the Maker, and Holder shall,
to the extent permitted by applicable law: (a) characterize any non-principal payments as an expense, fee or premium rather than
as interest; (b) exclude voluntary prepayments and the effect thereof; and (c) “spread” the total amount of interest
throughout the entire term of the Note. In no event shall Maker have a claim for usury against Lender and any such claim is hereby
waived and released.

 

11. Remedies. The protections given
to the Holder under this Note, protect the Holder from possible losses which might result if Maker does not keep the promises made
in this Note. In the event of default of any provision of this Note, the Note may be accelerated and all amounts of stock become
due and payable immediately, in addition to any other remedies that may be provided herein. Maker’s covenants hereunder may
be enforced by specific performance in addition to any other remedy available at law or in equity, including without limitation,
recovery of damages that may be incurred in connection with failure to maintain reserves as otherwise provided in Section 6. of
this Note as well as damages incurred as a result of any other default hereunder.

 

12. GOVERNING LAW. This Note shall be
construed in accordance with and governed by the laws of the State of Texas (without regard to principles of conflicts of law).

 

13.
WAIVER OF TRIAL BY JURY. TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE COMPANY HEREBY IRREVOCABLY WAIVES ALL RIGHT OF TRIAL
BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY MATTER ARISING HEREUNDER.

 

    	-7-

    	 

    
 

 

IN
WITNESS WHEREOF, the parties hereto have executed this Convertible Promissory Note effective on the 3rd day of February 2012.

 

	 	 	 	GLOBAL NUTECH, INC.
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	By:  	 /s/ David Mathews
	 	 	 	 	Name:  David Mathews
	 	 	 	 	Title: Chief Executive Officer
	 	 	 	 	 
	ACCEPTED AND AGREED TO:	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	By:	/s/ William S. Cain	 	 	 
	 	William S. Cain	 	 	 

 

    	-8-

    	 

    

EXHIBIT I

CONVERSION NOTICE

(To be executed by the Holder in order
to Convert the Note)

 

	TO:

 

The undersigned
hereby irrevocably elects to convert $______ of the principal amount of the Convertible Promissory Note dated ____________,
2012 into shares of Common Stock of GLOBAL NUTECH, INC., according to the conditions stated therein, as of the Conversion
Date written below.

	Conversion Date:	                                                                                               
	Conversion Amount to be converted:	$______________________________________
	 	 
	Number of shares of Common Stock to be issued:	                                                                                               
	Amount of Note Unconverted:	$                                                                                               
	 	 
	 	 
	Please issue the shares of Common Stock in the following name and to the following address:
	Issue to:	
         

         

         

         

        

	 	 
	Authorized Signature:	                                                                                               
	Name:	                                                                                               
	Title:	                                                                                               
	Broker DTC Participant Code:	           
	Account Number:	           

 

 

    	-9-DRAWDOWN EQUITY FINANCING AGREEMENT

 

THIS
AGREEMENT, dated as of January 31, 2012 (this “Agreement”), between Auctus
Private Equity Fund, LLC a Massachusetts corporation (the “Investor”),
and Exergetic Energy, Inc. a corporation organized and existing
under the laws of the State of Michigan (the “Company”).

 

WHEREAS, the parties desire that,
upon the terms and subject to the conditions and limitations contained herein, the Company shall issue and sell to the Investor,
from time to time as provided herein, and the Investor shall purchase from the Company up to Ten Million Dollars ($10,000,000)
of the Company’s common stock, par value $0.0001 per share (the “Common Stock”);

 

WHEREAS, such investments will
be made in reliance upon the provisions of Regulation D (“Regulation D”) of the Securities Act of 1933, as amended,
and the regulations promulgated thereunder (the “Securities Act”), and or upon such other exemption from the
registration requirements of the Securities Act as may be available with respect to any or all of the investments to be made hereunder;
and

 

WHEREAS, contemporaneously with
the execution and delivery of this Agreement, the parties hereto are executing and delivering a Registration Rights Agreement,
substantially in the form attached hereto (the "Registration Rights Agreement"), pursuant to which the Company has agreed
to provide certain registration rights under the Securities Act, and the rules and regulations promulgated thereunder, and applicable
state securities laws.

 

NOW, THEREFORE, the parties
hereto agree as follows:

 

ARTICLE
I.

Certain Definitions

 

Section 1.1           
“Advance Request” shall mean the portion of the Commitment Amount requested by the Company in the Drawdown Notice.

 

Section 1.2           "Advance
Shares" shall mean all shares of Common Stock that may be issued or are issuable pursuant to an Advance Request that has
been exercised or may be exercised in accordance with the terms and conditions of this Agreement.

 

Section 1.3           “Advance
Shares True-Up Date” shall mean the first (1st) Trading Day after expiration of the applicable Pricing Period
for an Advance Request.

 

Section 1.4           “Bid
Price” shall mean, on any date, the closing best bid price (as reported by a direct feed service) of the Common Stock
on the Principal Market or, if the Common Stock is not traded on a Principal Market, the highest reported bid price for the Common
Stock, as furnished by FINRA. 

 

Section 1.5           “Clearing
Date” shall be the date on which the Estimated Advance Shares (as defined in Section 2.2(b)) have been deposited into
the Investor’s brokerage account and the Investor’s broker has confirmed with the Investor that the Investor may execute
trades of such Estimated Advance Shares.

 

	Exergetic Energy, Inc. XNGR.OB DEFA	1	2/10/2012

 

 

    	 

    	 

    

 

 

Section 1.6           “Closing”
shall mean each of the closings of a purchase and sale of Common Stock pursuant to Section 2.3.

 

Section 1.7           “Closing
Date” shall have the meaning specified in Section 2.3.

 

Section 1.8           “Commitment
Amount” shall mean the aggregate amount of up to Ten Million Dollars ($10,000,000) which the Investor has agreed to provide
to the Company in order to purchase the Company’s Common Stock pursuant to the terms and conditions of this Agreement.

 

Section 1.9           “Commitment
Period” shall mean the period commencing on the earlier to occur of (i) the Effective Date, or (ii) such earlier date
as the Company and the Investor may mutually agree in writing, and expiring on the earliest to occur of (x) the date on which the
Investor shall have made payment of Advance Requests pursuant to this Agreement in the aggregate amount of the Commitment Amount,
(y) the date this Agreement is terminated pursuant to Section 10.2, or (z) the date occurring thirty-six (36) months after the
Effective Date

 

Section  1.10         
“Common Stock” shall mean the Company’s Common Stock, par value $0.0001 per share. No Drawdown Notice
shall be made if the Company’s Common Stock is trading at or below its par value.

 

Section 1.11         “Condition
Satisfaction Date” shall have the meaning set forth in Section 7.2.

 

Section 1.12         “Damages”
shall mean any loss, claim, damage, liability, reasonable costs and expenses (including, without limitation, reasonable attorney’s
fees and disbursements and reasonable costs and expenses of expert witnesses and investigation).

 

Section 1.13          “Discounted Floor
Price” shall be set at Ninety-Three (93%) percent of the Floor Price of the Common Stock during the Pricing Period, in
accordance with the terms and conditions of this Agreement.

 

Section 1.14         “Drawdown
Notice” shall mean a written notice, in the form of Exhibit A attached hereto, to the Investor executed by an
officer of the Company and setting forth the Advance Request amount that the Company requests from the Investor.

 

Section 1.15         “Drawdown
Notice Date” shall mean any Trading Day during the Commitment Period that the Company provides (in accordance with and
deemed delivered pursuant to Section 2.2(d) of this Agreement) to the Investor a Drawdown Notice requiring the Investor to advance
funds to the Company subject to the terms of this Agreement. 

 

Section 1.16         “DTC”
shall have the meaning specified in Section 2.3.

 

Section 1.17         “DWAC”
shall have the meaning specified in Section 2.3.

 

	Exergetic Energy, Inc. XNGR.OB DEFA	2	2/10/2012

  

    	 

    	 

    

 

 

Section 1.18         “Effective
Date” shall mean the date on which the SEC first declares effective a Registration Statement registering the resale of
the Registrable Securities as set forth in Section 7.2(a).

 

Section 1.19         “Estimated
Advance Shares” shall have the meaning specified in Section 2.2(b).

 

Section 1.20         “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

Section 1.21         “Exchange
Cap” shall have the meaning specified in Section 2.2(e).

 

Section 1.22         “FINRA”
shall mean the Financial Industry Regulatory Authority.

 

Section 1.23         “Floor
Day” shall have the meaning specified in Section 2.2(c).

 

Section 1.24         “Floor
Price” shall mean, with respect to any Trading Day in a Pricing Period, the lowest price per share of Common Stock provided
by the Company in the applicable Drawdown Notice at which the Investor may sell shares of Common Stock in connection with an Advance
Request provided however that the Floor Price is equal to or less than the Bid Price of the Common Stock one Trading Day immediately
preceding the Drawdown Notice Date. If the Company does not specify a Floor Price in the applicable Drawdown Notice, then the “Floor
Price” shall be deemed to equal Seventy-Five (75%) of the average Bid Price over the ten (10) trading days immediately preceding
the Drawdown Notice Date. In all circumstances the specified Floor Price must be above par value.

 

Section
1.25         “Material Adverse Effect” shall mean 
(i) any condition, occurrence, state of facts or event having, or insofar
as reasonably can be foreseen would likely have, any material adverse effect on the legality, validity or enforceability of the
Transaction Documents or the transactions contemplated thereby, (ii) any condition, occurrence, state of facts or event having,
or insofar as reasonably can be foreseen would likely have, any effect on the business, operations, properties, financial
condition or prospects of the Company that is material and adverse to the Company and its Subsidiaries, taken as a whole,
and/or (iii) any condition, occurrence, state of facts or event that would, or insofar as reasonably can be foreseen would likely,
prohibit or otherwise materially interfere with or delay the ability of the Company to perform any of its obligations under any
of the Transaction Documents to which it is a party.

 

Section 1.26         “Market
Price” shall mean the lowest Bid Price of the Common Stock during the Pricing Period.

 

Section 1.27         “Maximum
Advance Amount” shall not exceed the lesser of (a) Two Hundred Thousand Dollars ($200,000) or (b) two hundred
(200%) percent of the average daily volume of the Common Stock for the three (3) Trading Days immediately preceding the applicable
Drawdown Notice Date, multiplied by the average of the Bid Prices for the three (3) Trading Days immediately preceding the applicable
Drawdown Notice Date.  

 

	Exergetic Energy, Inc. XNGR.OB DEFA	3	2/10/2012

 

 

    	 

    	 

    

 

 

Section 1.28         “Ownership
Limitation” shall have the meaning specified in Section 2.2(f).

  

Section 1.29         “Par
Value Payment” shall have the meaning specified in Section 2.2(b).

 

Section 1.30 “Person”
shall mean an individual, a corporation, a partnership, an association, a trust or other entity or organization, including a government
or political subdivision or an agency or instrumentality thereof.

 

Section 1.31         “Pricing
Period” shall mean the five (5) consecutive Trading Days immediately following the Clearing Date associated with the
applicable Drawdown Notice and during which the Purchase Price of the Common Stock is valued.

 

Section 1.32         “Principal
Market” shall mean the Nasdaq Global Select Market, the Nasdaq Global Market, the Nasdaq Capital Market, the American
Stock Exchange, the OTC Bulletin Board, OTC Pink Sheets or the New York Stock Exchange, whichever is at the time the principal
trading exchange or market for the Common Stock.

 

Section 1.33         “Purchase
Price” shall be set at Ninety-Three (93%) percent of the Market Price of the Common Stock during the Pricing Period,
in accordance with the terms and conditions of this Agreement.

 

Section
1.34         “Registrable Securities” shall mean the shares of
Common Stock, to be issued hereunder (i) in respect of
which the Registration Statement has not been declared effective by the SEC, (ii) which have not been sold under circumstances
meeting all of the applicable conditions of Rule 144 (or any similar provision then in force) under the Securities Act (“Rule
144”) or (iii) which have not been otherwise transferred to a holder who may trade such shares without restriction under
the Securities Act, and the Company has delivered a new certificate or other evidence of ownership for such securities not bearing
a restrictive legend.

Section 1.35         
“Registration Limitation” shall have the meaning specified in Section 2.2(a).

 

Section 1.36         
“Registration Rights Agreement” shall mean the Registration Rights Agreement, dated the date hereof, regarding
the filing of the Registration Statement for the resale of the Registrable Securities, entered into between the Company and the
Investor.

 

	Exergetic Energy, Inc. XNGR.OB DEFA	4	2/10/2012

   

    	 

    	 

    

Section 1.37         “Registration
Statement” shall mean a registration statement on Form S-1 or Form S-3 (if use of such form is then available to
the Company pursuant to the rules of the SEC and, if not, on such other form promulgated by the SEC for which the Company then
qualifies and which counsel for the Company shall deem appropriate, and which form shall be available for the resale of the Registrable
Securities to be registered thereunder in accordance with the provisions of this Agreement and the Registration Rights Agreement,
and in accordance with the intended method of distribution of such securities), for the registration of the resale by the Investor
of the Registrable Securities under the Securities Act.

 

Section 1.38         “Registration
Statement Eligibility Cap” shall have the meaning specified in Section 2.2(e).

 

Section 1.39         “Regulation
D” shall have the meaning set forth in the recitals of this Agreement.

 

Section 1.40         
“SEC” shall mean the United States Securities and Exchange Commission.

 

Section 1.41         “Securities
Act” shall have the meaning set forth in the recitals of this Agreement.

 

Section
1.42         “SEC Documents” shall mean Annual Reports on Form
10-K, Quarterly Reports on Form 10-Q, and Current Reports
on Form 8-K and Proxy Statements of the Company as supplemented to the date hereof, filed by the Company for a period of at least
twelve (12) months immediately preceding the date hereof, until such time as the Company no longer has an obligation to maintain
the effectiveness of a Registration Statement as set forth in the Registration Rights Agreement.

 

Section 1.43         “Trading
Day” shall mean any day during which the New York Stock Exchange shall be open for business.

 

Section 1.44         
“Transaction Documents” shall mean, collectively, the Registration Rights Agreement and the Drawdown Equity
Financing Agreement entered into by the parties on the Effective Date.

 

ARTICLE
II

Advance Requests

 

Section 2.1           Advance
Requests. Subject to the terms, conditions and limitations of this Agreement (including, without limitation, the provisions
of Article VII hereof), the Company may, at its sole and exclusive option, issue and sell to the Investor from time to time during
the Commitment Period, and, except for conditions outside of the Investor’s control, the Investor shall purchase from the
Company, shares of the Company’s Common Stock by the delivery, in the Company’s sole discretion, of Drawdown Notices
in accordance with Section 2.2. Subject to the terms, conditions and limitations of this Agreement (including, without limitation,
the provisions of Article VII hereof), the number of Advance Shares that the Investor shall purchase pursuant to a Drawdown Notice
shall be determined by dividing the applicable Advance Request, as such Advance Request may be reduced pursuant to Section 2.2(c),
by the Purchase Price with respect to such Drawdown Notice, together with such additional shares of Common Stock that may be purchased
pursuant to Section 2.2(c).

 

	Exergetic Energy, Inc. XNGR.OB DEFA	5	2/10/2012

   

    	 

    	 

    

 

Section 2.2           Mechanics.

 

(a)          Drawdown
Notice. Subject to the terms, conditions and limitations of this Agreement (including, without limitation, the provisions of
Article VII hereof), the Company may, at its sole and exclusive option from time to time during the Commitment Period, deliver
a Drawdown Notice to the Investor setting forth the Advance Request that the Company requests from the Investor on the applicable
Closing Date. Notwithstanding anything herein to the contrary, in no event shall (i) any Advance Request designated by the Company
in any Drawdown Notice exceed the Maximum Advance Amount, (ii) the aggregate amount of all Advance Requests pursuant to this Agreement
exceed the Commitment Amount, (iii) the number of shares of Common Stock issuable to the Investor pursuant to a Drawdown Notice
cause the aggregate number of shares of Common Stock beneficially owned (as calculated pursuant to Section 13(d) of the Exchange
Act and Rule 13d-3 promulgated thereunder) by the Investor and its affiliates to exceed the Ownership Limitation, (iv) if the Common
Stock is listed or quoted on The Nasdaq Stock Market or any other U.S. national securities exchange during the Commitment Period,
the number of shares of Common Stock issuable to the Investor pursuant to a Drawdown Notice cause the aggregate number of shares
of Common Stock that would be issued pursuant to this Agreement, together with all shares of Common Stock issued pursuant to any
transactions that may be aggregated with the transactions contemplated by this Agreement under applicable rules of The Nasdaq Stock
Market or any other Principal Market on which the Common Stock may be listed or quoted, to exceed the Exchange Cap, and (v) the
number of shares of Common Stock issuable to the Investor pursuant to a Drawdown Notice exceed the number of shares of Common Stock
then available for resale by the Investor under the Registration Statement (the “Registration Limitation”).
In connection with each Drawdown Notice delivered by the Company, if any portion of the applicable Advance Request would result
in any of the limitations set forth in this Section 2.2(a) to be exceeded, such portion of such Advance Request shall be void ab
initio. Unless the parties agree in writing otherwise, there shall be a minimum of five
(5) Trading Days between an Advance Shares True-Up Date and a subsequent Drawdown Notice Delivery Date.

 

(b)          Delivery
of Estimated Advance Shares. On a Drawdown Notice Date, the Company shall deliver to the Investor’s brokerage account
an estimated number of shares of Common Stock equal to the Advance Request indicated in the applicable Drawdown Notice divided
by the Bid Price on the Trading Day immediately preceding the Drawdown Notice Date, multiplied by one
hundred fifty percent (150%) (the “Estimated Advance Shares”). On the Trading Day immediately following
the applicable Clearing Date, the Investor shall deliver payment to the Company, by check or wire transfer of immediately available
funds to an account designated in writing by the Company on or prior to the Clearing Date, an amount equal to the par value of
the Estimated Advance Shares (“Par Value Payment”). The Company acknowledges and agrees that the Investor may
sell shares of the Company’s Common Stock relating to a particular Drawdown Notice, including, without limitation, all of
the Estimated Advance Shares delivered on the Clearing Date with respect to such Drawdown Notice, at any time after the Drawdown
Notice is received by the Investor.

 

	Exergetic Energy, Inc. XNGR.OB DEFA	6	2/10/2012

   

    	 

    	 

    

   

(c)          Maximum
Advance Amount, Floor Price.  In relation to each Drawdown Notice, the Company may, in its sole discretion,
designate a Floor Price. Any Floor Price designated by the Company in a Drawdown Notice may not be changed by the Company once
the Drawdown Notice is submitted to the Investor. The amount of the Advance Request set forth in a Drawdown Notice shall automatically
be reduced by one-fifth (20%) for each Trading Day during the Pricing Period that any one or more of the following occur: (i) the
price of the Common Stock falls below the Floor Price at any time during the Trading Day (each such day, a “Floor Day”),
(ii) trading in the Common Stock is suspended for any reason during trading hours on the Principal Market on the Trading Day,(iii)
the price of the Common Stock falls below its par value at any time during the Trading Day, or (iv) there is a public holiday
or no trading volume in the Common Stock on the Principal Market on the Trading Day. The Investor shall immediately cease selling
any shares of Common Stock with respect to the Drawdown Notice if the price of the Common Stock falls below the Floor Price; provided,
however, that the Investor may reinitiate selling shares of Common Stock on any Floor Day if the price of the Common Stock exceeds
the Floor Price. The number of Advance Shares to be issued and delivered to the Investor at the Closing (in accordance with Section
2.3 of this Agreement) with respect to a Drawdown Notice that includes one or more Floor Days shall be determined based on the
applicable Advance Request, as it may be reduced pursuant to this Section 2.2(c), provided however, that the Company shall be obligated
to sell, and the Investor shall be obligated to purchase, at a price equal to the Floor Price multiplied by 93%
(“The Discounted Floor Price”), any shares of Common Stock corresponding to such Drawdown Notice that have been sold
by the Investor on any Floor Day (all of which shares shall be deemed Advance Shares).  The Investor shall provide the
Company with notice of the number of shares of Common Stock sold by the Investor on any Floor Day prior to the applicable Closing.

 

(d)          Date
of Delivery of Drawdown Notice.  A Drawdown Notice shall be deemed delivered on: (i) the Trading Day it is received by
email or fax if such notice is received prior to 5:00 pm Eastern Time; or (ii) the immediately succeeding Trading Day if the Drawdown
Notice is received by facsimile or otherwise after 5:00 pm Eastern Time on a Trading Day or at any time on a day which is not a
Trading Day.  No Drawdown Notice may be deemed delivered on a day that is not a Trading Day or if positive receipt is not
acknowledged by Auctus.

  

	Exergetic Energy, Inc. XNGR.OB DEFA	7	2/10/2012

   

    	 

    	 

    

    

(e)          Exchange
Cap. The Company shall not issue or sell any shares of Common Stock pursuant to this Agreement, and the Investor shall
not purchase or acquire any shares of Common Stock pursuant to this Agreement, to the extent that after giving effect
thereto, the aggregate number of all shares of Common Stock that would be issued pursuant to this Agreement, together with
all shares of Common Stock issued pursuant to any transactions that may be aggregated with the transactions contemplated by
this Agreement under applicable rules of The Nasdaq Stock Market or any other Principal Market on which the Common Stock may
be listed or quoted, would exceed the maximum number of shares of Common Stock that the Company may issue pursuant to this
Agreement and the transactions contemplated hereby without (1) breaching the Company’s obligations under the applicable
rules of The Nasdaq Stock Market or any other Principal Market on which the Common Stock may be listed or quoted or (2)
obtaining stockholder approval under the applicable rules of The Nasdaq Stock Market or any other Principal Market on which
the Common Stock may be listed or quoted (the “Exchange Cap”), unless and until the Company elects to
solicit stockholder approval of the transactions contemplated by this Agreement and the stockholders of the Company have in
fact approved the transactions contemplated by this Agreement in accordance with the applicable rules and regulations of The
Nasdaq Stock Market, any other Principal Market on which the Common Stock may be listed or quoted, and the Certificate of
Incorporation and Bylaws of the Company

 

(f)          Ownership
Limitation. The Company shall not issue or sell, and the Investor shall not purchase or acquire, any shares of Common
Stock under this Agreement which, when aggregated with all other shares of Common Stock then beneficially owned by the Investor
and its affiliates (as calculated pursuant to Section 13(d) of the Exchange Act and Rule 13d-3 promulgated thereunder), would result
in the beneficial ownership by the Investor and its affiliates of more than 4.99% of the then issued and outstanding
shares of Common Stock (the “Ownership Limitation”). Upon the written or oral request of the Investor, the Company
shall confirm orally or in writing to the Investor within two (2) Business Days of such request the number of shares of Common
Stock then outstanding. The Investor and the Company shall each cooperate in good faith in the determinations required hereby and
the application hereof.

   

	Exergetic Energy, Inc. XNGR.OB DEFA	8	2/10/2012

 

 

    	 

    	 

    

 

Section
2.3           Closings.  Subject to the terms,conditions,
and limitations of this Agreement, the Investor promptly shall notify the Company in writing of the occurrence of the
Clearing Date associated with a Drawdown Notice. The Pricing Period with respect to such Drawdown Notice shall begin on the
first (1st) Trading Day immediately following the applicable Clearing Date.  At the end of the Pricing
Period, the Purchase Price and the amount of the Advance Request (taking into account adjustments and/or reductions) shall be
established and the number of Advance Shares shall be determined for a particular Advance Request (which shall include any
shares of Common Stock sold by the Investor on any Floor Day). If the number of Estimated Advance Shares initially
delivered to the Investor pursuant to Section 2.2(b) is greater than the aggregate number of Advance Shares to be purchased
by the Investor pursuant to such Advance Request, then, on the Advance Shares True-Up Date, the Investor shall deliver to
Company any excess Estimated Advance Shares associated with such Advance Request unless the parties mutually agree for the
Investor to retain such excess Common Shares to apply to the next Advance Request.  If the number of Estimated Advance
Shares initially delivered to the Investor pursuant to Section 2.2(b) is less than the aggregate number of Advance Shares to
be purchased by the Investor pursuant to such Advance Request, then, on the Advance Shares True-Up Date, the Company shall
deliver to the Investor the difference between the Estimated Advance Shares and the Advance Shares issuable pursuant to such
Advance Request.  The Closing of an Advance Request shall occur upon the date (the “Closing Date”) on
which the settlement of trades of the Advance Shares that occurred during the applicable Pricing Period and after the
applicable Advance Shares True-Up Date associated with such Drawdown Notice in the Investor’s brokerage account has
been completed, whereby the Investor shall deliver to the Company, by wire transfer of immediately available funds to an
account designated in writing by the Company, (i) the Advance Request specified in the Drawdown Notice, as reduced pursuant
to Section 2.2(c) (as applicable), plus (ii) an amount equal to the number of shares of Common Stock corresponding to
such Drawdown Notice that have been sold by the Investor on any Floor Day during the applicable Pricing Period multiplied by
the Discounted Floor Price, less (iii) the Par Value Payment. In the event that the Investor is no longer able, due to
time constraints beyond its control, to perform a wire on any particular Trading Day, then the wire will be promptly executed
on the next following Trading Day. In lieu of delivering physical certificates representing the Common Stock issuable in
accordance with this Section 2.3, and provided that the Company’s transfer agent is then participating in the
Depository Trust Company ("DTC") Fast Automated Securities Transfer (FAST) program, upon request of
the Investor, the Company shall cause the Company’s transfer agent to electronically transmit the applicable Advance
Shares by crediting the account of the Investor's prime broker with DTC through its Deposit Withdrawal Agent Commission
("DWAC") system, and provide proof satisfactory to the Investor of such delivery. In addition, on or prior
to the Closing Date, each of the Company and the Investor shall deliver to the other all documents, instruments and writings
required to be delivered by either of them pursuant to this Agreement in order to implement and effect the transactions
contemplated herein.  To the extent the Company has not paid the fees, expenses, and disbursements to the Investor in
accordance with Sections 2.4 and 12.4, then the amount of such fees, expenses, and disbursements may be withheld by the
Investor (and shall be paid to the relevant party) from the wire transfer pursuant to that particular Drawdown Notice. If in
the event that at Closing the Advance Request has been reduced to a dollar amount that does not exceed the initial Par Value
Payment made by the Investor, then that difference, up to the full Par Value Payment, not including any associated fees, will
be required to be returned to the Investor by the Company on the next following Trading Day via wire transfer.

   

	Exergetic Energy, Inc. XNGR.OB DEFA	9	2/10/2012

  

    	 

    	 

    

  

(a)          Company’s
Obligations Upon Closing. 

 

(i)          The
Company shall use all reasonable efforts to become DTC eligible within a reasonable time of the date of this Agreement.  Upon
approval of DTC eligibility, and provided that the Company’s transfer agent then is participating in the DTC Fast Automated
Securities Transfer (FAST) program, upon request of the Investor, the Company shall cause the Company’s transfer agent to
electronically transmit all shares of Common Stock issuable in accordance with this Section 2.3 by crediting the account of the
Investor's prime broker with DTC through its DWAC system, and provide proof satisfactory to the Investor of such delivery, all
of which shares of Common Stock shall be freely tradable and transferable and without restriction on resale pursuant to the Registration
Statement (and no stop-transfer order shall be placed against transfer thereof), and the Company shall not take any action or give
any instructions to any transfer agent of the Company otherwise. All physical certificates representing the Common Stock issuable
in accordance with this Section 2.3 shall be free of restrictive legends, and all of such shares of Common Stock shall be freely
tradable and transferable and without restriction on resale pursuant to the Registration Statement (and no stop-transfer order
shall be placed against transfer thereof), and the Company shall not take any action or give any instructions to any transfer agent
of the Company otherwise.

 

(ii)         The
Registration Statement covering the resale by the Investor of the Registrable Securities shall have been declared effective under
the Securities Act by the SEC and shall remain effective, and the Investor shall be permitted to utilize the prospectus therein
to resell (a) all of the Advance Shares issued pursuant to all prior Drawdown Notices and (b) all of the Advance Shares issuable
pursuant to the applicable Drawdown Notice.

 

(iii)        The
Company shall have obtained all material permits and qualifications required by any applicable state for the offer and sale of
the Registrable Securities, or shall have the availability of exemptions therefrom.  The sale and issuance of the Registrable
Securities shall be legally permitted by all laws and regulations to which the Company is subject.

 

(iv)         The
Company shall file with the SEC in a timely manner all reports, notices and other documents required of a “reporting company”
under the Exchange Act and applicable Commission regulations.

 

(v)          The
fees as set forth in Section 12.4 below shall have been paid or can be withheld as provided in Section 2.3.

 

(vi)         The
Company’s transfer agent shall be DWAC eligible.

 

(b)          Investor’s
Obligations Upon Closing. Subject to the terms and conditions of this Agreement, upon receipt of the shares referenced in Section
2.3(a)(i) above and provided the Company is in compliance with its obligations in Section 2.3, the Investor shall deliver to the
Company the amount of the Advance Request specified in the Drawdown Notice by wire transfer of immediately available funds.

 

 

	Exergetic Energy, Inc. XNGR.OB DEFA	10	2/10/2012

 

    	 

    	 

    

Section 2.4           
Hardship.  In the event the Investor sells shares of the Company’s Common Stock after receipt of a Drawdown Notice
and the Company fails to perform its obligations as mandated in Section 2.3, and specifically the Company fails to deliver to the
Investor the shares of Common Stock corresponding to the applicable Drawdown Notice pursuant to Section 2.3 and no later than on
the Advance Share True-Up Date, the Company acknowledges that the Investor shall suffer financial hardship and therefore shall
be liable for any and all losses, commissions, fees, interest, legal fees or any other financial hardship caused to the Investor.

 

The Company understands that a delay
in the delivery of the securities in the form required pursuant to this registration statement beyond the Closing could result
in economic loss to the Investor.  After the Effective Date, as compensation to the Investor for late issuance of such shares
(delivery of securities after the applicable closing), the Company agrees to make payments to the Investor in accordance with the
schedule below where the number of days overdue is defined as the number of business days beyond the close with amount due being
cumulative. 

 

The Company shall pay any payments incurred
under this Section in immediately available funds upon demand.  Nothing herein shall limit the right of the Investor to pursue
damages for the Company’s failure to comply with the issuance and delivery of securities to the Investor.

  

	Payments for Each Number of Days Overdue	For each $10,000 Worth of Common Stock
	 	 
	1	$100
	2	$200
	3	$300
	4	$400
	5	$500
	6	$600
	7	$700
	8	$800
	9	$900
	10	$1000
	Over 10	
        $1000 + $200 for each Business
Day beyond the tenth day 

 

ARTICLE
III

Representations and Warranties of Investor

 

Investor hereby represents and warrants
to, and agrees with, the Company that the following are true and correct as of the date hereof and as of each Advance Request Date:

 

	Exergetic Energy, Inc. XNGR.OB DEFA	11	2/10/2012

 

 

    	 

    	 

    

Section 3.1           Organization
and Authorization.  The Investor is duly incorporated or organized and validly existing in the jurisdiction of its incorporation
or organization and has all requisite power and authority to purchase and hold the securities issuable hereunder.  The decision
to invest and the execution and delivery of this Agreement by such Investor, the performance by such Investor of its obligations
hereunder and the consummation by such Investor of the transactions contemplated hereby have been duly authorized and requires
no other proceedings on the part of the Investor.  The undersigned has the right, power and authority to execute and deliver
this Agreement and all other instruments (including, without limitations, the Registration Rights Agreement), on behalf of the
Investor.  This Agreement has been duly executed and delivered by the Investor and, assuming the execution and delivery hereof
and acceptance thereof by the Company, will constitute the legal, valid and binding obligations of the Investor, enforceable against
the Investor in accordance with its terms.

 

Section 3.1.1           Evaluation
of Risks.  The Investor has such knowledge and experience in financial, tax and business matters as to be capable of evaluating
the merits and risks of, and bearing the economic risks entailed by, an investment in the Company and of protecting its interests
in connection with this transaction.  It recognizes that its investment in the Company involves a high degree of risk.

 

Section 3.2           No
Legal Advice From the Company.  The Investor acknowledges that it had the opportunity to review this Agreement and the
transactions contemplated by this Agreement with his or its own legal counsel and investment and tax advisors.  The Investor
is relying solely on such counsel and advisors and not on any statements or representations of the Company or any of its representatives
or agents for legal, tax or investment advice with respect to this investment, the transactions contemplated by this Agreement
or the securities laws of any jurisdiction.

 

Section 3.3           Investment
Purpose. The securities are being purchased by the Investor for its own account, and for investment purposes.  The Investor
agrees not to assign or in any way transfer the Investor’s rights to the securities or any interest therein and acknowledges
that the Company will not recognize any purported assignment or transfer except in accordance with applicable Federal and state
securities laws.  No other person has or will have a direct or indirect beneficial interest in the securities.  The Investor
agrees not to sell, hypothecate or otherwise transfer the Investor’s securities unless the securities are registered under
Federal and applicable state securities laws or unless, in the opinion of counsel satisfactory to the Company, an exemption from
such laws is available.

 

Section 3.4           Accredited
Investor.  The Investor is an “Accredited Investor” as that term is defined in Rule 501(a)(3) of Regulation
D of the Securities Act.

 

	Exergetic Energy, Inc. XNGR.OB DEFA	12	2/10/2012

 

 

    	 

    	 

    

Section 3.5           Information. 
The Investor and its advisors (and its counsel), if any, have been furnished with all materials relating to the business, finances
and operations of the Company and information it deemed material to making an informed investment decision.  The Investor
and its advisors, if any, have been afforded the opportunity to ask questions of the Company and its management.  Neither
such inquiries nor any other due diligence investigations conducted by such Investor or its advisors, if any, or its representatives
shall modify, amend or affect the Investor’s right to rely on the Company’s representations and warranties contained
in this Agreement.  The Investor understands that its investment involves a high degree of risk.  The Investor is in
a position regarding the Company, which, based upon employment, family relationship or economic bargaining power, enabled and enables
such Investor to obtain information from the Company in order to evaluate the merits and risks of this investment.  The Investor
has sought such accounting, legal and tax advice, as it has considered necessary to make an informed investment decision with respect
to this transaction.

 

Section 3.6           Receipt
of Documents. The Investor and its counsel have received and read in their entirety:  (i) this Agreement and the Exhibits
annexed hereto; (ii) all due diligence and other information necessary to verify the accuracy and completeness of such representations,
warranties and covenants; and (iii) answers to all questions the Investor submitted to the Company regarding an investment in the
Company; and the Investor has relied on the information contained therein and has not been furnished any other documents, literature,
memorandum or prospectus. 

 

Section 3.7           Registration
Rights Agreement.  The parties have entered into the Registration Rights Agreement dated the date hereof.

 

Section 3.8           No
General Solicitation.  Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf, has
engaged in any form of general solicitation or general advertising (within the meaning of Regulation D under the Securities Act)
in connection with the offer or sale of the shares of Common Stock offered hereby.

 

Section 3.9           Not
an Affiliate.  The Investor is not an officer, director or a person that directly, or indirectly, through one or more
intermediaries, controls or is controlled by, or is under common control with the Company or any “Affiliate”
of the Company (as that term is defined in Rule 405 of the Securities Act).

 

Section
3.10         Trading Activities.  The Investor’s
trading activities with respect to the Company’s Common Stock shall be in compliance with all applicable federal and state
securities laws, rules and regulations and the rules and regulations of the Principal Market on which the Company’s Common
Stock is listed or traded and Investor will comply with any requests that the SEC makes in connection with the filing of the Registration
Agreement to ensure such compliance. Neither the
Investor nor its affiliates has an open short position in the Common Stock of the Company, the Investor agrees that it shall not,
and that it will cause its affiliates not to, engage in any short sales of or hedging transactions with respect to the Common Stock,
provided that the Company acknowledges and agrees that upon receipt of a Drawdown Notice the Investor has the right to sell the
shares to be issued to the Investor pursuant to the Drawdown Notice, during the applicable Pricing Period.

 

Section
3.11         No Registration as a Dealer.
The Investor is not and will not be required to be registered as a "dealer"
under the 1934 Act, either as a result of its execution and performance of its obligations under this Agreement or otherwise.

 

	Exergetic Energy, Inc. XNGR.OB DEFA	13	2/10/2012

 

 

    	 

    	 

    

   

Section 3.12         Good
Standing. The Investor is a limited liability company, duly organized, validly existing and in good standing under the laws
of its state of formation and any jurisdiction in which it is conducting business.

 

ARTICLE
IV.

Representations and Warranties of the Company

 

Except as stated below, on the disclosure
schedules attached hereto or in the SEC Documents (as defined herein), the Company hereby represents and warrants to, and covenants
with, the Investor that the following are true and correct as of the date hereof:

 

Section 4.1           Organization
and Qualification.  The Company is duly incorporated or organized and validly existing in the jurisdiction of its incorporation
or organization and has all requisite corporate power to own its properties and to carry on its business as now being conducted. 
Each of the Company and its subsidiaries is duly qualified as a foreign corporation to do business and is in good standing in every
jurisdiction in which the nature of the business conducted by it makes such qualification necessary, except to the extent that
the failure to be so qualified or be in good standing would not have a Material Adverse Effect on the Company and its subsidiaries
taken as a whole.

 

Section
4.2           Authorization, Enforcement, Compliance with Other Instruments. 
(i) The Company has the requisite corporate power and authority to enter into and perform this Agreement, the Registration Rights
Agreement and any related agreements, in accordance with
the terms hereof and thereof, (ii) the execution and delivery of this Agreement, the Registration Rights Agreement and any related
agreements by the Company and the consummation by it of the transactions contemplated hereby and thereby, have been duly authorized
by the Company’s Board of Directors and no further consent or authorization is required by the Company, its Board of Directors
or its stockholders, (iii) this Agreement, the Registration Rights Agreement and any related agreements have been duly executed
and delivered by the Company, (iv) this Agreement, the Registration Rights Agreement and any related agreements constitute the
valid and binding obligations of the Company enforceable against the Company in accordance with their terms, except as such enforceability
may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or
similar laws relating to, or affecting generally, the enforcement of creditors’ rights and remedies.

 

	Exergetic Energy, Inc. XNGR.OB DEFA	14	2/10/2012

 

 

    	 

    	 

    

Section 4.3           Capitalization. 
The authorized capital stock of the Company consists of 100,000,000 shares of Common Stock $0.0001 par value per share of which
approximately 15,549,115 shares of Common Stock are issued and outstanding, respectively. All of such outstanding shares have been
validly issued and are fully paid and nonassessable.  Except as disclosed in the SEC Documents, no shares of Common Stock
are subject to preemptive rights or any other similar rights or any liens or encumbrances suffered or permitted by the Company. 
Except as disclosed in the SEC Documents, as of the date hereof, (i) there are no outstanding options, warrants, scrip,
rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into,
any shares of capital stock of the Company or any of its subsidiaries, or contracts, commitments, understandings or arrangements
by which the Company or any of its subsidiaries is or may become bound to issue additional shares of capital stock of the Company
or any of its subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever
relating to, or securities or rights convertible into, any shares of capital stock of the Company or any of its subsidiaries, (ii)
there are no outstanding debt securities (iii) there are no outstanding registration statements, other than on Form S-1and
(iv) there are no agreements or arrangements under which the Company or any of its subsidiaries is obligated to register the sale
of any of their securities under the Securities Act (except pursuant to the Registration Rights Agreement).  There are no
securities or instruments containing anti-dilution or similar provisions that will be triggered by this Agreement or any related
agreement or the consummation of the transactions described herein or therein.  This section shall not prevent the Company,
after the date hereof, from obtaining other funding or other means of financing.

 

The Company has furnished to the Investor
via the SEC's live EDGAR filing service true and correct copies of the Company’s Certificate of Incorporation, as amended
and as in effect on the date hereof (the “Certificate of Incorporation”), and the Company’s By-laws, as
in effect on the date hereof (the “By-laws”), and via conference call the terms of all securities convertible
into or exercisable for Common Stock and the material rights of the holders thereof in respect thereto.

 

Section 4.4           No
Conflict.  The execution, delivery and performance of this Agreement by the Company and the consummation by the Company
of the transactions contemplated hereby will not (i) result in a violation of the Certificate of Incorporation, any certificate
of designations of any outstanding series of preferred stock of the Company or By-laws or (ii) conflict with or constitute a default
(or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company or any of its subsidiaries
is a party, or result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities
laws and regulations and the rules and regulations of the Principal Market on which the Common Stock is quoted) applicable to the
Company or any of its subsidiaries or by which any material property or asset of the Company or any of its subsidiaries is bound
or affected and which would cause a Material Adverse Effect.  Except as disclosed in the SEC Documents, neither the Company
nor its subsidiaries is in violation of any term of or in default under its Articles of Incorporation or By-laws or their organizational
charter or by-laws, respectively, or any material contract, agreement, mortgage, indebtedness, indenture, instrument, judgment,
decree or order or any statute, rule or regulation applicable to the Company or its subsidiaries.  The business of the Company
and its subsidiaries is not being conducted in violation of any material law, ordinance, or regulation of any governmental entity. 
Except as specifically contemplated by this Agreement and as required under the Securities Act and any applicable state securities
laws, the Company is not required to obtain any consent, authorization or order of, or make any filing or registration with, any
court or governmental agency in order for it to execute, deliver or perform any of its obligations under or contemplated by this
Agreement or the Registration Rights Agreement in accordance with the terms hereof or thereof.  All consents, authorizations,
orders, filings and registrations which the Company is required to obtain pursuant to the preceding sentence have been obtained
or effected on or prior to the date hereof.  The Company and its subsidiaries are unaware of any fact or circumstance which
might give rise to any of the foregoing.

 

	Exergetic Energy, Inc. XNGR.OB DEFA	15	2/10/2012

 

 

    	 

    	 

    

 

 

Section
4.5           SEC Documents; Financial Statements.  As
of the date hereof, the Company has filed all reports, schedules, forms, statements and other documents required to be filed by
it with the SEC pursuant to the reporting requirements of the 1934 Act.  
As of their respective dates, to the Company’s knowledge, the financial statements of the Company disclosed in the SEC Documents
(the “Financial Statements”) complied as to form in all material respects with applicable accounting requirements
and the published rules and regulations of the SEC with respect thereto.  Such financial statements have been prepared in
accordance with generally accepted accounting principles, consistently applied, during the periods involved (except (i) as may
be otherwise indicated in such financial statements or the notes thereto, or (ii) in the case of unaudited interim statements,
to the extent they may exclude footnotes or may be condensed or summary statements) and, fairly present in all material respects
the financial position of the Company as of the dates thereof and the results of its operations and cash flows for the periods
then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments).  No other information provided
by or on behalf of the Company to the Investor, which is not included in the SEC Documents, contains any untrue statement of a
material fact or omits to state any material fact necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading.

 

Section 4.6           No
Default.  Except as disclosed in Exhibit 4.6, the Company is not in default in the performance or observance of any material
obligation, agreement, covenant or condition contained in any indenture, mortgage, deed of trust or other material instrument or
agreement to which it is a party or by which it is or its property is bound and neither the execution, nor the delivery by the
Company, nor the performance by the Company of its obligations under this Agreement or any of the exhibits or attachments hereto
will conflict with or result in the breach or violation of any of the terms or provisions of, or constitute a default or result
in the creation or imposition of any lien or charge on any assets or properties of the Company under its Certificate of Incorporation,
By-Laws, any material indenture, mortgage, deed of trust or other material agreement applicable to the Company or instrument to
which the Company is a party or by which it is bound, or any statute, or any decree, judgment, order, rules or regulation of any
court or governmental agency or body having jurisdiction over the Company or its properties, in each case which default, lien or
charge is likely to cause a Material Adverse Effect on the Company’s business or financial condition.

 

	Exergetic Energy, Inc. XNGR.OB DEFA	16	2/10/2012

   

    	 

    	 

    

 

 

Section 4.7           Absence
of Events of Default.  Except for matters described in Exhibit 4.7 and/or this Agreement, no Event of Default, as defined
in the respective agreements to which the Company is a party, and no event which, with the giving of notice or the passage of time
or both, would become an Event of Default (as so defined), has occurred and is continuing, which would have a Material Adverse
Effect on the Company’s business, properties, prospects, financial condition or results of operations.

 

Section 4.8           Intellectual
Property Rights.  The Company and its subsidiaries own or possess adequate rights or licenses to use all material trademarks,
trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights, inventions, licenses,
approvals, governmental authorizations, trade secrets and rights necessary to conduct their respective businesses as now conducted.  
The Company and its subsidiaries do not have any knowledge of any infringement by the Company or its subsidiaries of trademark,
trade name rights, patents, patent rights, copyrights, inventions, licenses, service names, service marks, service mark registrations,
trade secret or other similar rights of others, and, to the knowledge of the Company, there is no claim, action or proceeding being
made or brought against, or to the Company’s knowledge, being threatened against, the Company or its subsidiaries regarding
trademark, trade name, patents, patent rights, invention, copyright, license, service names, service marks, service mark registrations,
trade secret or other infringement; and the Company and its subsidiaries are unaware of any facts or circumstances which might
give rise to any of the foregoing. 

 

Section 4.9           Employee
Relations.  Neither the Company nor any of its subsidiaries is involved in any labor dispute nor, to the knowledge of
the Company or any of its subsidiaries, is any such dispute threatened.  None of the Company’s or its subsidiaries’
employees is a member of a union and the Company and its subsidiaries believe that their relations with their employees are good.

 

Section 4.10         Environmental
Laws.  The Company and its subsidiaries are (i) in compliance with any and all applicable material foreign, federal, state
and local laws and regulations relating to the protection of human health and safety, the environment or hazardous or toxic substances
or wastes, pollutants or contaminants (“Environmental Laws”), (ii) have received all permits, licenses or other
approvals required of them under applicable Environmental Laws to conduct their respective businesses and (iii) are in compliance
with all terms and conditions of any such permit, license or approval.

 

Section 4.11         Title. 
Except as set forth in Exhibit 4.11, the Company has good and marketable title to its properties and material assets owned by it,
free and clear of any pledge, lien, security interest, encumbrance, claim or equitable interest other than such as are not material
to the business of the Company.  Any real property and facilities held under lease by the Company and its subsidiaries are
held by them under valid, subsisting and enforceable leases with such exceptions as are not material and do not interfere with
the use made and proposed to be made of such property and buildings by the Company and its subsidiaries.

 

	Exergetic Energy, Inc. XNGR.OB DEFA	17	2/10/2012

 

    	 

    	 

    
Section 4.12         Insurance.
Except as set forth in Exhibit 4.12, the Company and each of its subsidiaries are insured by insurers of recognized financial responsibility
against such losses and risks and in such amounts as management of the Company believes to be prudent and customary in the businesses
in which the Company and its subsidiaries are engaged.  Neither the Company nor any such subsidiary has been refused any insurance
coverage sought or applied for and neither the Company nor any such subsidiary has any reason to believe that it will not be able
to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers
as may be necessary to continue its business at a cost that would not materially and adversely affect the condition, financial
or otherwise, or the earnings, business or operations of the Company and its subsidiaries, taken as a whole.

 

Section 4.13         Regulatory
Permits.  The Company and its subsidiaries possess all material certificates, authorizations and permits issued by the
appropriate federal, state or foreign regulatory authorities necessary to conduct their respective businesses, and neither the
Company nor any such subsidiary has received any notice of proceedings relating to the revocation or modification of any such certificate,
authorization or permit.

 

Section 4.14         Internal
Accounting Controls.  Except as disclosed in the SEC documents, the Company and each of its 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 generally accepted accounting principles 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.
Representation by the Company relating to internal controls will be made at such time the registration filing has been approved.

 

Section 4.15         No
Material Adverse Breaches, etc.  Except as set forth in Exhibit 4.15, neither the Company nor any of its subsidiaries
is subject to any charter, corporate or other legal restriction, or any judgment, decree, order, rule or regulation which, in the
judgment of the Company’s officers, has or is expected in the future to have a Material Adverse Effect on the business, properties,
operations, financial condition, results of operations or prospects of the Company or its subsidiaries.  Except as set forth
in the SEC Documents, neither the Company nor any of its subsidiaries is in breach of any contract or agreement which breach, in
the judgment of the Company’s officers, has or is expected to have a Material Adverse Effect on the business, properties,
operations, financial condition, results of operations or prospects of the Company or its subsidiaries.

 

	Exergetic Energy, Inc. XNGR.OB DEFA	18	2/10/2012

 

    	 

    	 

    
Section 4.16         Absence
of Litigation.  Except as set forth in Exhibit 4.16, there is no action, suit, proceeding, inquiry or investigation before
or by any court, public board, government agency, self-regulatory organization or body pending against or affecting the Company,
the Common Stock or any of the Company’s subsidiaries, wherein an unfavorable decision, ruling or finding would (i) have
a Material Adverse Effect on the transactions contemplated hereby (ii) adversely affect the validity or enforceability of, or the
authority or ability of the Company to perform its obligations under, this Agreement or any of the documents contemplated herein,
or (iii) except as expressly disclosed in the SEC Documents, have a Material Adverse Effect on the business, operations, properties,
financial condition or results of operation of the Company and its subsidiaries taken as a whole.

 

Section 4.17         Subsidiaries. 
Except as disclosed in Exhibit 4.17, the Company does not presently own or control, directly or indirectly, any interest in any
other corporation, partnership, association or other business entity.

 

Section 4.18         Tax
Status.  Except as disclosed in Exhibit 4.18, the Company and each of its subsidiaries has made or filed all federal and
state income and all other tax returns, reports and declarations required by any jurisdiction to which it is subject and (unless
and only to the extent that the Company and each of its subsidiaries has set aside on its books provisions reasonably adequate
for the payment of all unpaid and unreported taxes) 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, except those being contested in good
faith and has set aside on its books provision reasonably adequate for the payment of all taxes for periods subsequent to the periods
to which such returns, reports or declarations apply.  There are no unpaid taxes in any material amount claimed to be due
by the taxing authority of any jurisdiction, and the officers of the Company know of no basis for any such claim.

 

Section 4.19         Certain
Transactions.  Except as set forth in Exhibit 4.19 none of the officers, directors, or employees of the Company is presently
a party to any transaction with the Company (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, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company,
any corporation, partnership, trust or other entity in which any officer, director, or any such employee has a substantial interest
or is an officer, director, trustee or partner.

 

Section 4.20         Fees
and Rights of First Refusal.  The Company is not obligated to offer the securities offered hereunder on a right of first
refusal basis or otherwise to any third parties including, but not limited to, current or former shareholders of the Company, underwriters,
brokers, agents or other third parties.

 

	Exergetic Energy, Inc. XNGR.OB DEFA	19	2/10/2012

 

    	 

    	 

    
Section 4.21         Use
of Proceeds.  The Company shall use the net proceeds from this offering for general corporate purposes, including, without
limitation, the payment of loans incurred by the Company.  However, in no event shall the Company use the net proceeds from
this offering for the payment (or loan to any such person for the payment) of any judgment, or other liability, incurred by any
executive officer, officer, director or employee of the Company, except for any liability owed to such person for services rendered,
or if any judgment or other liability is incurred by such person originating from services rendered to the Company, or the Company
has indemnified such person from liability.

 

Section 4.22         Further
Representation and Warranties of the Company.  For so long as any securities issuable hereunder held by the Investor remain
outstanding, the Company acknowledges, represents, warrants and agrees that it will maintain the listing of its Common Stock on
the Principal Market.

 

Section
4.23         Opinion of Counsel.  Investor shall receive an opinion letter
from counsel to the Company on the date hereof. The Company
will obtain for the Investor, at the Company’s expense, any and all opinions of counsel which may be reasonably required
in order to sell the securities issuable hereunder without restriction.

 

Section 4.24         Dilution. 
The Company is aware and acknowledges that issuance of shares of the Company’s Common Stock could cause dilution to existing
shareholders and could significantly increase the outstanding number of shares of Common Stock.

 

Section 4.25         Acknowledgement
of Terms. The Company acknowledges, represents, and warrants to the Investor that (i) it has had independent legal counsel
of its own choosing review, advise, and represent on this Agreement, (ii) it has had sufficient time to review, and has carefully
reviewed and fully understands, all the provisions of this Agreement, (iii) the terms of this Agreement are reasonable and fair
to the Company, (iv) it is entering knowingly and voluntarily into this Agreement of its own freewill, and (v) it is entering into
this Agreement not out of economic duress. Each party and counsel for each party (where such exist) has reviewed this Agreement,
and thus agree that 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 this Agreement.

 

	Exergetic Energy, Inc. XNGR.OB DEFA	20	2/10/2012

 

    	 

    	 

    
ARTICLE
V.

Indemnification

 

The Investor and the Company represent
to the other the following with respect to itself:

 

Section 5.1           Indemnification.

 

(a)          In
consideration of the Investor’s execution and delivery of this Agreement, and in addition to all of the Company’s other
obligations under this Agreement, the Company shall defend, protect, indemnify and hold harmless the Investor, and all of its officers,
directors, partners, employees and agents (including, without limitation, those retained in connection with the transactions contemplated
by this Agreement) (collectively, the “Investor Indemnitees”) from and against any and all actions, causes of
action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection therewith (irrespective
of whether any such Investor Indemnitee is a party to the action for which indemnification hereunder is sought), and including
reasonable attorneys’ fees and disbursements (the “Indemnified Liabilities”), incurred by the Investor
Indemnitees or any of them as a result of, or arising out of, or relating to (a) any misrepresentation or breach of any representation
or warranty made by the Company in this Agreement or the Registration Rights Agreement or any other certificate, instrument or
document contemplated hereby or thereby, (b) any breach of any covenant, agreement or obligation of the Company contained in this
Agreement or the Registration Rights Agreement or any other certificate, instrument or document contemplated hereby or thereby,
or (c) any cause of action, suit or claim brought or made against such Investor Indemnitee not arising out of any action or inaction
of an Investor Indemnitee, and arising out of or resulting from the execution, delivery, performance or enforcement of this Agreement
or any other instrument, document or agreement executed pursuant hereto by any of the Investor Indemnitees.  To the extent
that the foregoing undertaking by the Company may be unenforceable for any reason, the Company shall make the maximum contribution
to the payment and satisfaction of each of the Indemnified Liabilities, which is permissible under applicable law.

 

(b)          In
consideration of the Company’s execution and delivery of this Agreement, and in addition to all of the Investor’s other
obligations under this Agreement, the Investor shall defend, protect, indemnify and hold harmless the Company and all of its officers,
directors, shareholders, employees and agents (including, without limitation, those retained in connection with the transactions
contemplated by this Agreement) (collectively, the “Company Indemnitees”) from and against any and all Indemnified
Liabilities incurred by the Company Indemnitees or any of them as a result of, or arising out of, or relating to (a) any misrepresentation
or breach of any representation or warranty made by the Investor in this Agreement, the Registration Rights Agreement, or any instrument
or document contemplated hereby or thereby executed by the Investor, (b) any breach of any covenant, agreement or obligation of
the Investor(s) contained in this Agreement,  the Registration Rights Agreement or any other certificate, instrument or document
contemplated hereby or thereby executed by the Investor, or (c) any cause of action, suit or claim brought or made against such
Company Indemnitee based on misrepresentations or due to a  breach by the Investor and arising out of or resulting from
the execution, delivery, performance or enforcement of this Agreement or any other instrument, document or agreement executed pursuant
hereto by any of the Company Indemnitees.  To the extent that the foregoing undertaking by the Investor may be unenforceable
for any reason, the Investor shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities,
which is permissible under applicable law.

 

	Exergetic Energy, Inc. XNGR.OB DEFA	21	2/10/2012

 

    	 

    	 

    
(c)          The
obligations of the parties to indemnify or make contribution under this Section 5.1 shall survive termination.

 

ARTICLE
VI.

Covenants of the Company

 

Section 6.1           Registration
Rights.  The Company shall cause the Registration Rights Agreement to remain in full force and effect and the Company
shall comply in all material respects with the terms thereof. During the Commitment Period, the Company shall notify the Investor
promptly if (i) the Registration Statement shall cease to be effective under the Securities Act, (ii) the Common Stock shall cease
to be authorized for listing on the Principal Market, (iii) the Common Stock ceases to be registered under Section 12(g) of the
Exchange Act or (iv) the Company fails to file in a timely manner all reports and other documents required of it as a reporting
company under the Exchange Act.

 

Section 6.2           Listing
of Common Stock.  The Company shall maintain the Common Stock’s authorization for quotation on the Principal Market. 

 

Section 6.3           Exchange
Act Registration.  The Company will cause its Common Stock to continue to be registered under Section 12(g) of the Exchange
Act, will file in a timely manner all reports and other documents required of it as a reporting company under the Exchange Act
and will not take any action or file any document (whether or not permitted by Exchange Act or the rules thereunder) to terminate
or suspend such registration or to terminate or suspend its reporting and filing obligations under said Exchange Act.

 

Section 6.4           Transfer
Agent Instructions.  Upon effectiveness of the Registration Statement the Company shall deliver instructions to its transfer
agent to issue shares of Common Stock to the Investor free of restrictive legends on or before each Advance Request Date.

 

Section 6.5           Corporate
Existence.  The Company will take all steps necessary to preserve and continue the corporate existence of the Company.

 

Section 6.6           Notice
of Certain Events Affecting Registration; Suspension of Right to Make an Advance Request.  The Company will immediately
notify the Investor as soon as practible, upon its becoming aware of the occurrence of any of the following events in respect of
the Registration Statement or related prospectus relating to an offering of Registrable Securities: (i) receipt of any request
for additional information by the SEC or any other Federal or state governmental authority during the period of effectiveness of
the Registration Statement for amendments or supplements to the registration statement or related prospectus; (ii) the issuance
by the SEC or any other Federal or state governmental authority of  any stop order suspending the effectiveness of the Registration
Statement or the initiation of any proceedings for that purpose; (iii) receipt of any notification with respect to the suspension
of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction or the initiation
or threatening of any proceeding for such purpose; (iv) the happening of any event that makes any statement made in the Registration
Statement or related prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material
respect or that requires the making of any changes in the Registration Statement, related prospectus or documents so that, in the
case of the Registration Statement, it will not contain any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein not misleading, and that in the case of the related prospectus,
it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; and (v)
the Company’s reasonable determination that a post-effective amendment to the Registration Statement would be appropriate;
and the Company will promptly make available to the Investor any such supplement or amendment to the related prospectus. 
The Company shall not deliver to the Investor any Drawdown Notice during the continuation of any of the foregoing events.

 

	Exergetic Energy, Inc. XNGR.OB DEFA	22	2/10/2012

 

    	 

    	 

    

 

Section 6.7           Restriction
on Sale of Capital Stock.  During the Commitment Period, the Company shall not, without 10 days written notice to the
Investor (i) issue or sell any Common Stock or Preferred Stock without consideration or for a consideration per share less than
the Bid Price of the Common Stock determined immediately prior to its issuance, (ii) issue or sell any Preferred Stock warrant,
option, right, contract, call, or other security or instrument granting the holder thereof the right to acquire Common Stock without
consideration or for a consideration per share less than the Bid Price of the Common Stock determined immediately prior to its
issuance, or (iii) file any registration statement on Form S-8.

 

Section 6.8           Consolidation;
Merger.  The Company shall not, at any time after the date hereof, effect any merger or consolidation of the Company with
or into, or a transfer of all or substantially all the assets of the Company to another entity (a “Consolidation Event”)
unless the resulting successor or acquiring entity (if not the Company) assumes by written instrument the obligation to deliver
to the Investor such shares of stock and/or securities as the Investor is entitled to receive pursuant to this Agreement prior
to the closing date of any merger.

 

Section 6.9           Issuance
of the Company’s Common Stock.  The sale of the shares of Common Stock shall be made in accordance with the provisions
and requirements of Regulation D and any applicable state securities law.

 

Section 6.10         Review
of Public Disclosures.  All SEC filings (including, without limitation, all filings required under the Exchange Act, which
include Forms 10-Q, 10-K, 8-K, etc) and other public disclosures made by the Company, including, without limitation, all press
releases, investor relations materials, and scripts of analysts meetings and calls, shall be reviewed and approved for release
by the Company’s attorneys and, if containing financial information, the Company’s independent certified public accountants.
All press releases referencing the Investor shall first be approved by Investor prior to release.

 

	Exergetic Energy, Inc. XNGR.OB DEFA	23	2/10/2012

 

    	 

    	 

    
Section 6.11         Market
Activities. The Company will not, directly or indirectly, (i) take any action designed to cause or result in, or that constitutes
or might reasonably be expected to constitute, the stabilization or manipulation of the price of any security of the Company to
facilitate the sale or resale of the Common Stock or (ii) sell, bid for or purchase the Common Stock, or pay anyone any compensation
for soliciting purchases of the Common Stock.

 

ARTICLE
VII.

Conditions for Advance and Conditions to Closing

 

Section 7.1           Conditions
Precedent to the Obligations of the Company.  The obligation hereunder of the Company to issue and sell the shares of
Common Stock to the Investor incident to each Closing is subject to the satisfaction, or waiver by the Company, at or before each
such Closing, of each of the conditions set forth below.

 

(a)          Accuracy
of the Investor’s Representations and Warranties.  The representations and warranties of the Investor contained
in this Agreement shall be true and correct in all material respects.

 

(b)          Performance
by the Investor.  The Investor shall have performed, satisfied and complied in all respects with all covenants, agreements
and conditions required by this Agreement and the Registration Rights Agreement to be performed, satisfied or complied with by
the Investor at or prior to such Closing.

 

Section 7.2           Conditions
Precedent to the Right of the Company to Deliver a Drawdown Notice.  The right of the Company to deliver a Drawdown Notice
to the Investor is subject to the fulfillment by the Company on each Drawdown Notice Date, and the right of the Company to receive
an Advance Request from the Investor is subject to the fulfillment by the Company on each Closing Date (each such date, a “Condition
Satisfaction Date”), of each of the following conditions:

 

(a)          Registration
of the Common Stock with the SEC.  The Company shall have filed with the SEC a Registration Statement with respect to
the resale of the Registrable Securities in accordance with the terms of the Registration Rights Agreement.  As set forth
in the Registration Rights Agreement, the Registration Statement shall have previously become effective and shall remain effective
on each Condition Satisfaction Date and (i) neither the Company nor the Investor shall have received notice that the SEC has issued
or intends to issue a stop order with respect to the Registration Statement or that the SEC otherwise has suspended or withdrawn
the effectiveness of the Registration Statement, either temporarily or permanently, or intends or has threatened to do so, and
(ii) no other suspension of the use or withdrawal of the effectiveness of the Registration Statement or related prospectus shall
exist.  The Registration Statement must have been declared effective by the SEC prior to the first Drawdown Notice Date.

 

	Exergetic Energy, Inc. XNGR.OB DEFA	24	2/10/2012

 

    	 

    	 

    
(b)          Authority. 
The Company shall have obtained all permits and qualifications required by any applicable state in accordance with the Registration
Rights Agreement for the offer and sale of the shares of Common Stock, or shall have the availability of exemptions therefrom. 
The sale and issuance of the shares of Common Stock shall be legally permitted by all laws and regulations to which the Company
is subject.

 

(c)          Fundamental
Changes. There shall not exist any fundamental changes to the information set forth in the Registration Statement, which would
require the Company to file a post-effective amendment to the Registration Statement. 

 

(d)          Accuracy
of the Company’s Representations and Warranties. The representations and warranties of the Company contained in
this Agreement (a) that are not qualified by “materiality” or “Material Adverse Effect” shall be true and
correct in all material respects when made and shall be true and correct in all material respects as of the applicable Condition
Satisfaction Date with the same force and effect as if made on such dates, except to the extent such representations and warranties
are as of another date, in which case, such representations and warranties shall be true and correct in all material respects as
of such other date and (b) that are qualified by “materiality” or “Material Adverse Effect” shall
have been true and correct when made and shall be true and correct as of the applicable Condition Satisfaction Date with the same
force and effect as if made on such dates, except to the extent such representations and warranties are as of another date, in
which case, such representations and warranties shall be true and correct as of such other date.

 

(e)          Performance
by the Company.  The Company shall have performed, satisfied and complied in all material respects with all covenants,
agreements and conditions required by this Agreement and the Registration Rights Agreement to be performed, satisfied or complied
with by the Company at or prior to each Condition Satisfaction Date.

 

(f)  
        No Injunction.  No statute, rule, regulation, executive order,
decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority
of competent jurisdiction that prohibits or directly and adversely affects any of the transactions contemplated by this
Agreement, and no proceeding shall have been commenced that may have the effect of prohibiting or adversely affecting any of
the transactions contemplated by this Agreement.

 

(g)          No
Suspension of Trading in or Delisting of Common Stock.  The trading of the Common Stock is not suspended by the SEC or
the Principal Market (if the Common Stock is traded on a Principal Market).  The issuance of shares of Common Stock with respect
to the applicable Closing shall not violate the shareholder approval requirements, if any, of the Principal Market (if the Common
Stock is traded on a Principal Market).  The Company shall not have received any notice threatening the continued listing
of the Common Stock on the Principal Market (if the Common Stock is traded on a Principal Market). If the Company receives any
such notice from a Principal Market regarding the continued eligibility of the continued listing of the Common Stock on such automated
quotation system or exchange, then the Company shall promptly, and in no event later than the following Business Day, provide to
the Investor a copy of any such notice.

 

	Exergetic Energy, Inc. XNGR.OB DEFA	25	2/10/2012

 

    	 

    	 

    
(h)          Maximum
Advance Amount.  The amount of an Advance Request made by the Company shall not exceed the limitations set forth in Section
2.2.

 

(i)    
      No Knowledge.  The Company has no knowledge of any event which would be more
likely than not to have the effect of causing such Registration Statement to be suspended or otherwise ineffective.

 

(j)           Executed Drawdown Notice.  The Investor shall have received the Drawdown Notice executed by
an officer of the Company and the representations contained in such Drawdown Notice shall be true and correct as of each Condition
Satisfaction Date.

 

(k)          Compliance
with Laws.  The Company shall have complied with all applicable federal, state and local governmental laws, rules, regulations
and ordinances in connection with the execution, delivery and performance of this Agreement and the other Transaction Documents
to which it is a party and the consummation of the transactions contemplated hereby and thereby, including, without limitation,
the Company shall have obtained all permits and qualifications required by any applicable state securities or “blue sky”
laws for the offer and sale of the Securities by the Company to the Investor and the subsequent resale of the Registrable Securities
by the Investor (or shall have the availability of exemptions therefrom).

(l)    No Bankruptcy
Proceedings.  The Company shall not have filed for and/or be subject to any bankruptcy, insolvency, reorganization
or liquidation proceedings or other proceedings for relief under any bankruptcy law or any law for the relief of debtors instituted
by or against the Company or any subsidiary of the Company, or instituted involuntarily against the Company.

 

(m)    At Least
Two Independent Board Members. The Company shall have at least two (2) independent (as “independent” is defined
under the New York Stock Exchange’s listing standards) members on its board of directors prior to initiating each Drawdown
Notice, and shall represent so to the Investor in writing.

 

(n)     
  Consecutive Drawdown Notices.
Except with respect to the first Drawdown Notice, the Company shall have delivered all Shares relating to all prior Advance Requests.

 

(o)          Advance
Shares DTC Eligible.  The Advance Shares delivered to the Investor are DTC eligible, can be immediately converted
into electronic form, and there is no DTC “chill” or equivalent on the Company’s Common Stock.

 

	Exergetic Energy, Inc. XNGR.OB DEFA	26	2/10/2012

 

    	 

    	 

    
ARTICLE
VIII.

Due Diligence Review; Non-Disclosure of Non-Public Information

 

Section 8.1           Non-Disclosure
of Non-Public Information.

 

(a)          The
Company covenants and agrees that it shall refrain from disclosing, and shall cause its officers, directors, employees and agents
to refrain from disclosing, any material non-public information to the Investor without also disseminating such information to
the public, unless prior to disclosure of such information the Company identifies such information as being material non-public
information and provides the Investor with the opportunity to accept or refuse to accept such material non-public information for
review.

 

(b)          Nothing
herein shall require the Company to disclose non-public information to the Investor or its advisors or representatives, and the
Company represents that it does not disseminate non-public information to any investors who purchase stock in the Company in a
public offering, to money managers or to securities analysts, provided, however, that notwithstanding anything herein to the contrary,
the Company will, as hereinabove provided, promptly notify the advisors and representatives of the Investor and, if any, underwriters,
of any event or the existence of any circumstance (without any obligation to disclose the specific event or circumstance) of which
it becomes aware, constituting non-public information (whether or not requested of the Company specifically or generally during
the course of due diligence by such persons or entities), which, if not disclosed in the prospectus included in the Registration
Statement would cause such prospectus to include a material misstatement or to omit a material fact required to be stated therein
in order to make the statements, therein, in light of the circumstances in which they were made, not misleading.  Nothing
contained in this Section 8.1 shall be construed to mean that such persons or entities other than the Investor (without the written
consent of the Investor prior to disclosure of such information) may not obtain non-public information in the course of conducting
due diligence in accordance with the terms of this Agreement and nothing herein shall prevent any such persons or entities from
notifying the Company of their opinion that based on such due diligence by such persons or entities, that the Registration Statement
contains an untrue statement of material fact or omits a material fact required to be stated in the Registration Statement or necessary
to make the statements contained therein, in light of the circumstances in which they were made, not misleading.

 

ARTICLE
XI.

Choice of Law/Jurisdiction

 

Section 9.1           Governing Law.  This
Agreement shall be governed by and interpreted in accordance with the laws of the Commonwealth of Massachusetts without regard
to the principles of conflict of laws.  The parties further agree that any action between them shall be heard in Boston, MA.
for the adjudication of any civil action asserted pursuant to this Agreement.

 

EACH PARTY HEREBY IRREVOCABLY WAIVES
ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH
OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

	Exergetic Energy, Inc. XNGR.OB DEFA	27	2/10/2012

 

    	 

    	 

    
ARTICLE
X.

Assignment; Termination

 

Section 10.1         Assignment. 
Neither this Agreement nor any rights of the Company hereunder may be assigned to any other Person. 

 

Section 10.2         Termination. 

 

(a)          Unless
terminated earlier as herein provided, the obligations of the Investor to make Advance Requests under Article II hereof shall terminate
thirty six (36) months after the Effective Date.

 

(b)          The
obligation of the Investor to make an Advance to the Company pursuant to this Agreement shall terminate permanently (including
with respect to an Advance Request Date that has not yet occurred) in the event that (i) there shall occur any stop order or suspension
of the effectiveness of the Registration Statement for an aggregate of fifty (50) Trading Days, other than due to the acts of the
Investor, during the Commitment Period, or (ii) the Company shall at any time fail materially to comply with the requirements of
Article VI and such failure is not cured within thirty (30) days after receipt of written notice from the Investor, provided,
however, that this termination provision shall not apply to any period commencing upon the filing of a post-effective amendment
to such Registration Statement and ending upon the date on which such post effective amendment is declared effective by the SEC.

 

(c)          The obligations
and rights of each of the Company and the Investor are terminable by the Company at any time upon written notice to the Investor
subject at all times to the terms, conditions and obligations that the Company may have to the Investor, including and without
limit to any fees, charges and obligations described herein. Prior to issuing any press release, or making any public statement
or announcement, with respect to such termination, the Company shall consult with the Investor and shall obtain the Investor’s
consent to the form and substance of such press release or other disclosure, which consent shall not be unreasonably delayed or
withheld. Any and all shares, or penalties, if any, due under this Agreement shall be immediately payable and due upon termination
of this Agreement.

 

(d)          The
obligation of the Investor to make an Advance to the Company pursuant to this Agreement shall terminate permanently if pursuant
to or within the meaning of any Bankruptcy Law, the Company commences a voluntary case or any Person commences a proceeding against
the Company, a Custodian is appointed for the Company or for all or substantially all of its property, or the Company makes a general
assignment for the benefit of its creditors, this Agreement shall automatically terminate without any liability or payment to the
Company without further action or notice by any Person.  No such termination of this Agreement under this Section 10.2(d)
shall affect the Company's or the Investor's obligations under this Agreement with respect to pending purchases and the Company
and the Investor shall complete their respective obligations with respect to any pending purchases under this Agreement.

 

	Exergetic Energy, Inc. XNGR.OB DEFA	28	2/10/2012

 

    	 

    	 

    
ARTICLE
XI.

Notices

 

Section 11.1         Notices. 
Any notices, consents, waivers, or other communications required or permitted to be given under the terms of this Agreement must
be in writing and will be deemed to have been delivered (i) upon receipt, when delivered personally; (ii) upon receipt, when sent
by facsimile, provided a copy is mailed by U.S. certified mail, return receipt requested; (iii) three (3) days after being sent
by U.S. certified mail, return receipt requested, or (iv) one (1) day after deposit with a nationally recognized overnight delivery
service, in each case properly addressed to the party to receive the same.  The addresses and facsimile numbers for such communications
shall be:

 

	If to the Company, to:	 
	 	 
	 	
        Exergetic Energy, Inc.

        440 Burroughs, Suite 386

        Detroit, MI 48202

        Telephone:    313-309-4169

        Facsimile:      313-216-1777

	 	 
	If to the Investor, to:	
        Auctus Private Equity Fund, LLC

        101 Arch Street, Suite 2010

        Boston, MA 02110

        ATTN: Lou Posner

        Telephone: 617-532-6408

        Facsimile: 617-532-6420

 

Each party shall provide five (5) days’
prior written notice to the other party of any change in address or facsimile number.

 

ARTICLE
XII.

Miscellaneous

 

Section 12.1         Counterparts. 
This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each party and delivered to the other party.  In the event
any signature page is delivered by facsimile transmission, the party using such means of delivery shall cause four (4) additional
original executed signature pages to be physically delivered to the other party within five (5) days of the execution and delivery
hereof, though failure to deliver such copies shall not affect the validity of this Agreement.

 

	Exergetic Energy, Inc. XNGR.OB DEFA	29	2/10/2012

 

    	 

    	 

    
Section 12.2         Entire
Agreement; Amendments.  This Agreement supersedes all other prior oral or written agreements between the Investor, the
Company, their affiliates and persons acting on their behalf with respect to the matters discussed herein, and this Agreement and
the instruments referenced herein contain the entire understanding of the parties with respect to the matters covered herein and
therein and, except as specifically set forth herein or therein, neither the Company nor the Investor makes any representation,
warranty, covenant or undertaking with respect to such matters.  No provision of this Agreement may be waived or amended other
than by an instrument in writing signed by the party to be charged with enforcement.

 

Section 12.3         Reporting
Entity for the Common Stock.  The reporting entity relied upon for the determination of the trading price or trading volume
of the Common Stock on any given Trading Day for the purposes of this Agreement shall be reported by a direct feed service. 
The written mutual consent of the Investor and the Company shall be required to employ any other reporting entity.

 

Section 12.4         Fees
and Expenses.  The Company hereby agrees to pay the following fees:

 

(a)          Fees. 
Each of the parties shall pay its own fees and expenses (including the fees of any attorneys, accountants, appraisers or others
engaged by such party) in connection with this Agreement and the transactions contemplated hereby. However,
the Company shall pay an amount not to exceed four percent (4%) of the amount specified in each Drawdown Notice on its applicable
Closing Date to cover costs associated with, but not limited to: DWAC charges, commissions, legal review fees, and wire fees.

 

(b)          Origination
Fee. The Company is obligated to pay the Investor a non-refundable origination fee equal to Fifteen Thousand Dollars ($15,000)
in cash which will be paid as follows: a) Five Thousand Dollars ($5,000) in cash immediately upon execution of the term sheet
and b) Ten Thousand Dollars ($10,000) in cash to be taken out of the proceeds from the first and any subsequent Advance Requests
until that amount is paid in full.

 

Section 12.5         Confidentiality. 
If for any reason the transactions contemplated by this Agreement are not consummated, each of the parties hereto shall keep confidential
any information obtained from any other party (except information publicly available or in such party’s domain prior to the
date hereof, and except as required by court order) and shall promptly return to the other parties all schedules, documents, instruments,
work papers or other written information without retaining copies thereof, previously furnished by it as a result of this Agreement
or in connection herein.

 

Section 12.6         
Remedies, Other Obligations, Breaches and Injunctive Relief.  The Investor’s remedies provided in this Agreement
shall be cumulative and in addition to all other remedies available to the Investor under this Agreement, at law or in equity (including
a decree of specific performance and/or other injunctive relief), no remedy of the Investor contained herein shall be deemed a
waiver of compliance with the provisions giving rise to such remedy and nothing herein shall limit the Investor's right to pursue
actual damages for any failure by the Company to comply with the terms of this Agreement.  The Company acknowledges that
a breach by it of its obligations hereunder will cause irreparable harm to the Investor and that the remedy at law for any such
breach may be inadequate.  The Company therefore agrees that, in the event of any such breach or threatened breach, the
Investor shall be entitled, in addition to all other available remedies, to an injunction restraining any breach, without the necessity
of showing economic loss and without any bond or other security being required.

 

	Exergetic Energy, Inc. XNGR.OB DEFA	30	2/10/2012

 

    	 

    	 

    
Section 12.7         
Counterparts.  This Agreement may be executed in two or more identical counterparts, all of which shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other
party; provided that a facsimile signature or signature delivered by e-mail in a “.pdf” format data file shall be considered
due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original,
not a facsimile signature or a signature in a “.pdf” format data file.

 

Section 12.8         
No Third Party Beneficiaries.  This Agreement is intended for the benefit of the parties hereto and their respective
permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

Section 12.9         
Further Assurances.  Each party shall do and perform, or cause to be done and performed, all such further acts
and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party
may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby.

 

Section 12.10       
Publicity. The
Investor shall have the right to pre-approve any press release, SEC filing (including, without limitation, all filings required
under the Exchange Act, which include Forms 10-Q, 10-K, 8-K, etc), or any other public disclosure made by or on behalf of the Company
whatsoever relating to the Investor, its purchases hereunder or any aspect of this Agreement or the transaction contemplated hereby;
provided, however, that the Company shall be entitled, without the prior approval of the Investor, to make any press release or
other public disclosure (including any SEC filings) with respect thereto as is required by applicable law and regulations so long
as prior to releasing any such press release or any other public disclosure, the Company and its counsel shall have provided the
Investor and its counsel with a reasonable opportunity to review and comment upon, and shall have consulted with the Investor and
its counsel on the form and substance of such press release or other disclosure. Notwithstanding the foregoing, the Company shall
not publicly disclose the name of the Investor without prior consent from the Investor, except to the extent required by law. The
Company agrees and acknowledges that its failure to fully comply with this provision constitutes a material adverse affect on its
ability to perform its obligations under this Agreement.

 

	Exergetic Energy, Inc. XNGR.OB DEFA	31	2/10/2012

 

    	 

    	 

    
IN WITNESS WHEREOF, the parties
hereto have caused this Drawdown Equity Financing Agreement to be executed by the undersigned, thereunto duly authorized, as of
the date first set forth above.

 

	 	COMPANY:
	 	Exergetic Energy, Inc.
	 	 
	 	By:	/s/ C.B. McCollum
	 	Name: C.B. McCollum
	 	Title: CEO
	 	 
	 	INVESTOR:
	 	Auctus Private Equity Fund, LLC
	 	 
	 	By: 	/s/ Lou Posner
	 	Name: Lou Posner
	 	Title: Managing Director

 

	Exergetic Energy, Inc. XNGR.OB DEFA	32	2/10/2012

 

    	 

    	 

    
EXHIBIT A

 

DRAWDOWN NOTICE 

 

Exergetic Energy, Inc.

 

The undersigned, _______________________
hereby certifies, with respect to the sale of shares of Common Stock of Exergetic Energy, Inc. (the “Company”)
issuable in connection with this Drawdown Notice, delivered pursuant to the Drawdown Equity Financing Agreement (the “Agreement”),
as follows:

 

1.          The
undersigned is the duly elected ______________ of the Company.

 

2.          There
are no fundamental changes to the information set forth in the Registration Statement which would require the Company to file a
post effective amendment to the Registration Statement.

 

3.          The
Company has performed in all material respects all covenants and agreements to be performed by the Company and has complied in
all material respects with all obligations and conditions contained in the Agreement on or prior to the Drawdown Notice Date, and
shall continue to perform in all material respects all covenants and agreements to be performed by the Company through the applicable
Advance Request Date.  All conditions to the delivery of this Drawdown Notice are satisfied as of the date hereof and
all of the Company’s conditions to Closing set forth in Section 7.2 of the Agreement have been satisfied as of the Condition
Satisfaction Date.

 

4.          The
Company hereby represents, warrants and covenants that it has made all filings (“SEC Filings”) required to be
made by it pursuant to applicable securities laws (including, without limitation, all filings required under the Securities Exchange
Act of 1934, which include Forms 10-Q, 10-K, 8-K, etc.).  All SEC Filings and other public disclosures made by the Company,
including, without limitation, all press releases, analysts meetings and calls, etc. (collectively, the “Public Disclosures”),
have been reviewed and approved for release by the Company’s attorneys and, if containing financial information, the Company’s
independent certified public accountants.  None of the Company’s Public Disclosures contain any untrue statement of
a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in
the light of the circumstances under which they were made, not misleading.5.          The
Advance Request will be in the amount of $_____________________ in Advance Shares.

 

The current number of shares issued and outstanding
is                             and
4.99% of that amount would be_____________.

 

The number of shares currently available for
resale pursuant to the Registration Statement on Form S-1 for the Drawdown Equity Financing Facility is                            
.

 

6.          The
“Floor Price” for this Drawdown Notice shall be: (Please check one):

 

____               $______
per share

 

____               Seventy-Five
(75%) of the average Bid Price over the preceding ten (10) trading days prior to the Drawdown Notice Date.

 

The undersigned has executed this Certificate
this ____ day of _________________.

 

	 	Exergetic Energy, Inc.
	 	 
	 	By: 	 
	 	 
	 	Name: C.B. McCollum
	 	 
	 	Title: CEO 

 

	Exergetic Energy, Inc. XNGR.OB DEFA	33	2/10/2012

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00199-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00199-of-00352.parquet"}]]