Document:

Exhibit

Exhibit 4.4

[FORM OF 2047 FIXED RATE GLOBAL NOTE]

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITARY NAMED BELOW OR A NOMINEE OF THE DEPOSITARY, WHICH MAY BE TREATED BY THE COMPANY, THE TRUSTEE AND ANY AGENT THEREOF AS OWNER AND HOLDER OF THIS SECURITY FOR ALL PURPOSES. 
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (THE  “DEPOSITARY”) TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF THE DEPOSITARY, TO THE DEPOSITARY OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE. 

	
			
	 
	 
	 

	No. [ ]
	 
	$____________________

CUSIP:  [ ]
ISIN NUMBER:  [ ]
The Home Depot, Inc. 
Dated: ________ __, 2017
% Note due ________ __, 20__
The Home Depot, Inc., a Delaware corporation (the “Company”), for value received, hereby promises to pay to Cede & Co. or registered assigns, the principal sum of _____ MILLION DOLLARS ($_______) at the Company’s office or agency for said purpose in the City of New York, on ________ __, 20__ (the “Maturity Date”), in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts, and to pay interest, semiannually in arrears on _______ and _______ (each an “Interest Payment Date”) of each year, commencing on ________ __, 2017, on said principal sum in like coin or currency at the rate per annum set forth above at said office or agency from the most recent Interest Payment Date to which interest on the Securities of this series has been paid or duly provided for or, if no interest on the Securities of this series has been paid or duly provided for, from the date hereof. The interest so payable on any Interest Payment Date will, except as otherwise provided in the Indenture referred to on the reverse hereof, be paid to the person in whose name this Security is registered at the close of business on __ or __, as the case may be, immediately preceding the relevant Interest Payment Date (the “Regular Record Date”) whether or not such day is a Business Day, provided that interest may be paid, at the option of the Company, by mailing a check therefor payable to the registered holder entitled thereto at such holder’s last address as it appears on the Security Register or by wire transfer, in immediately available funds, to such bank or other entity in the continental United States as shall be designated in writing by such holder prior to the relevant Regular Record Date and shall have appropriate facilities for such purpose. If and for so long as all of the Securities of this series are represented by Securities in global form, the principal of, premium, if any, and interest on this Global Security shall be paid in same day funds to the Depositary, or to such name or entity as is requested by an authorized representative of the Depositary.
Reference is made to the further provisions set forth on the reverse hereof. Such further provisions shall for all purposes have the same effect as though fully set forth at this place. 

This Security shall not be valid or obligatory until the certificate of authentication hereon shall have been duly signed by the Trustee acting under the Indenture.  

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed. 
 
	
			
	 
	THE HOME DEPOT, INC.

	 
	 
	 

	 
	By:
	 

	 
	Name:
	Scott C. Bomar

	 
	Title:
	Vice President – Payments, Credit and Treasurer

TRUSTEE’S CERTIFICATE OF AUTHENTICATION
This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture. 

	
			
	 
	DEUTSCHE BANK TRUST COMPANY AMERICAS,
   as Trustee

	 
	 
	 

	 
	By:
	 

	 
	 
	Authorized Signatory

Date:  ____________ __, 2017

[Signature Page to Fixed Rate Global Security]

REVERSE OF SECURITY 
The Home Depot, Inc. 
Note due ____, 20__
This Security is one of a duly authorized issue of debt securities of the Company, issued or to be issued in one or more series pursuant to an indenture dated as of August 24, 2012 (the “Indenture”), duly executed and delivered by the Company to Deutsche Bank Trust Company Americas, as Trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture). Reference is hereby made to the Indenture and all indentures supplemental thereto for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Company and the holders (the words “holders” or “holder” meaning the registered holders or registered holder) of the Securities of this series. 
This Security will bear interest until the Maturity Date at the rate per annum shown above. If any Interest Payment Date, redemption date, Change of Control Payment Date, or the Maturity Date of this Security is not a Business Day, then payment of principal, premium, if any, and interest will be made on the next succeeding Business Day. No interest will accrue on the amount so payable for the period from such Interest Payment Date, redemption date, Change of Control Payment Date, or Maturity Date, as the case may be, to the date payment is made. Interest will be computed on the basis of a 360-day year consisting of 12 months of 30 days each. The Company will pay interest on overdue principal of, premium, if any, and to the extent lawful, interest on overdue installments of interest on this Security, at the same rate.  The Company hereby initially designates the Corporate Trust Office of the Trustee in the City of New York as the office or agency to be maintained by it where this Security may be presented for payment, registration of transfer, or exchange and where notices or demands to or upon the Company in respects of this Security or the Indenture may be served.  “Business Day” shall mean any Monday, Tuesday, Wednesday, Thursday or Friday that is not a day on which banking institutions in the City of New York are authorized or obligated by law or executive order to close.
In case an Event of Default, as defined in the Indenture, shall have occurred and be continuing with respect to this series of Securities, the principal of all the outstanding Securities of this series may be declared due and payable, in the manner and with the effect, and subject to the conditions, provided in the Indenture. The Indenture provides that in certain events such declaration and its consequences may be waived by the holders of a majority in aggregate principal amount of the Securities of this series then outstanding and that, prior to any such declaration, such holders may waive any past default under the Indenture and its consequences except a default in the payment of principal of, premium, if any, or interest on any of the Securities of this series. Any consent or waiver by the holder of this Security (unless revoked as provided in the Indenture) shall be conclusive and binding upon such holder and upon all future holders and owners of this Security and any Security of this series which may be issued in exchange or substitution herefor, whether or not any notation thereof is made upon this Security or such other Securities of this series. 

The Indenture permits, with certain exceptions as therein provided, the Company and the Trustee, with the consent of the holders of at least a majority in aggregate principal amount of the Securities at the time outstanding, evidenced as provided in the Indenture, to execute supplemental indentures adding any provisions to or changing in any manner or eliminating any of the provisions of the Indenture or of any supplemental indenture or modifying in any manner the rights of the holders of the Securities. 
Notwithstanding the foregoing, without the consent of any holder of Securities of this series, the Company and the Trustee may amend or supplement the Indenture or the Securities of this series to cure any ambiguity, defect or inconsistency, to provide for uncertificated Securities of this series in addition to or in place of certificated Securities of this series, to provide for the assumption of the Company’s obligations to holders of Securities of this series in the case of a transaction described in Section 10.01 of the Indenture, to evidence and provide for the acceptance of appointment by a successor trustee and to add to or change any of the provisions of the Indenture necessary to provide for or facilitate the administration of the trusts by more than one trustee, to make any change that would provide any additional rights or benefits to the holders of Securities of this series or that does not adversely affect the legal rights under the Indenture of any such holder, or to 

comply with requirements of the Commission in order to maintain the qualification of the Indenture under the Trust Indenture Act. 
No reference herein to the Indenture and no provision of this Security shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of, premium, if any, and interest on this Security at the place, times, and rate, and in the currency, herein prescribed. 
The Securities of this series are issuable only as registered Securities without coupons in denominations of $2,000 and any multiple of $1,000 in excess thereof. 
At the office or agency of the Company referred to on the face hereof and in the manner and subject to the limitations provided in the Indenture and this Security, Securities of this series may be exchanged for a like aggregate principal amount of Securities of this series of other authorized denominations. 
Upon due presentment for registration of transfer of this Security at the above-mentioned office or agency of the Company, a new Security or Securities of this series of authorized denominations, for a like aggregate principal amount, will be issued to the transferee as provided in the Indenture. No service charge shall be made for any such transfer, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto. 
Default in the performance, or breach, of the covenant set forth under “Offer to Repurchase Upon a Change of Control” will be an “Event of Default” under Section 5.01 of the Indenture, and the covenant set forth under such section will be subject to defeasance in accordance with Section 12.03 of the Indenture.
The Company, the Trustee, and any authorized agent of the Company or the Trustee, may deem and treat the registered holder hereof as the absolute owner of this Security (whether or not this Security shall be overdue and notwithstanding any notation of ownership or other writing hereon made by anyone other than the Company, the Trustee or any authorized agent of the Company or the Trustee), for the purpose of receiving payment of, or on account of, the principal hereof and premium, if any, and interest hereon and for all other purposes, and none of the Company, the Trustee nor any authorized agent of the Company or the Trustee shall be affected by any notice to the contrary. 
The Securities of this series are subject to defeasance as described in the Indenture. 
No recourse shall be had for the payment of the principal of, premium, if any, or the interest on this Security, for any claim based hereon, or otherwise in respect hereof, or based on or in respect of the Indenture or any Indenture supplemental thereto, against any incorporator, shareholder, officer or director, as such, past, present or future, of the Company or of any successor corporation, either directly or through the Company or any successor corporation, whether by virtue of any constitution, statute or rule of law or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as part of the consideration for the issue hereof, expressly waived and released. 
The Indenture is hereby incorporated by reference and, to the extent of any conflict between the provisions hereof and the Indenture, the Indenture shall control. Terms used but not defined herein have the meanings assigned to such terms in the Indenture. 
This Security shall be deemed to be a contract under the laws of the State of New York, and for all purposes shall be construed in accordance with the laws of said State, except as may otherwise be required by mandatory provisions of law. 
Optional Redemption
The Securities of this series are redeemable in whole or in part, at the option of the Company at any time and from time to time, on not less than 15 nor more than 45 days’ prior notice mailed to the holders of the Securities.  Prior to _______ __, 20__  (six months prior to the Maturity Date of the Securities of this series), the Securities of this series will be redeemable at a redemption price, plus accrued interest to the date of redemption, equal to the greater of (1) 100% of the principal amount of the Securities of this series to be 

redeemed or (2) the sum of the present values of the remaining scheduled payments of principal and interest on the Securities of this series to be redeemed that would be due if the Securities of this series matured on the Par Call Date (except that, if the redemption date is not an Interest Payment Date, the amount of the next succeeding scheduled interest payment will be reduced (solely for the purpose of this calculation) by the amount of interest accrued thereon to the redemption date), discounted to the redemption date (using the discount rate set forth below) on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months).  The discount rate for the Securities of this series will be the Treasury Rate plus __ basis points.
At any time on or after _______ __, 20__ (six months prior to the Maturity Date of the Securities of this series), the Securities of this series are redeemable, in whole or in part at any time and from time to time, at the Company’s option at a redemption price equal to 100% of the principal amount of the Securities of this series to be redeemed plus accrued interest thereon to the date of redemption.  
 “Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Securities of this series. “Independent Investment Banker” means one of the Reference Treasury Dealers appointed by the Company. 
“Comparable Treasury Price” means, with respect to any redemption date, (1) the average of the Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (2) if the Company obtains fewer than four such Reference Treasury Dealer Quotations, the average of all Reference Treasury Dealer Quotations obtained, or (3) if only one Reference Treasury Dealer Quotation is obtained, such Reference Treasury Dealer Quotation. 
“Par Call Date” means, the date that is ____ months prior to the Maturity Date of the Securities of this series.
 “Reference Treasury Dealer” means Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC,  and Merrill Lynch, Pierce, Fenner & Smith Incorporated and their successors and two other nationally recognized investment banking firms that are Primary Treasury Dealers specified from time to time by the Company, except that if any of the foregoing ceases to be a primary U.S. Government securities dealer in New York City (a “Primary Treasury Dealer”), the Company shall be required to designate as a substitute another nationally recognized investment banking firm that is a Primary Treasury Dealer.  
“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Company, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Company by such Reference Treasury Dealer as of 3:30 p.m., New York City time, on the third Business Day preceding such redemption date. 
“Treasury Rate” means, with respect to any redemption date, the rate per annum equal to the semiannual equivalent yield to maturity (computed as of the second Business Day immediately preceding such redemption date) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date. 
Prior to any redemption date, the Company shall be required to deposit with a paying agent money sufficient to pay the redemption price of, and accrued interest on, the Securities of this series to be redeemed on such date. If the Company is redeeming less than all the Securities of this series, the Trustee must select the Securities to be redeemed, either pro rata, by lot or by such other method as the Trustee deems fair and appropriate, provided, that so long as the Securities of this series are represented by one or more Global Securities, interests in such Securities will be selected for redemption by the Depositary in accordance with its standard procedures therefor.  Subject to payment by the Company of a sum sufficient to pay the amount due on redemption, interest on this Security (or portion hereof if this Security is redeemed in part) shall cease to accrue upon the date duly fixed for redemption of this Security (or portion hereof if this Security is redeemed in part).  In the event of redemption of this Security in part only, a new Security or Securities of this series for 

the unredeemed portion hereof will be issued in the name of the holder hereof upon the cancellation hereof.  On the redemption date, the Company shall deliver to the Trustee an Officers’ Certificate stating the redemption price.  The Trustee shall have no responsibility for determining the redemption price.  Notwithstanding Section 11.02 of the Indenture, the notice of such redemption need not set forth the redemption price but only the manner of calculation thereof if such redemption price is not then ascertainable.
Offer to Repurchase Upon a Change of Control
If a Change of Control Triggering Event (as defined below) occurs, unless the Company has exercised its right to redeem the Securities of this series as described above, holders of the Securities of this series will have the right to require the Company to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of their Securities pursuant to the offer described below (the “Change of Control Offer”). In the Change of Control Offer, the Company will be required to offer payment in cash equal to 101% of the aggregate principal amount of Securities of this series repurchased plus accrued and unpaid interest, if any, on the Securities of this series repurchased, to the date of purchase (the “Change of Control Payment”). Within 30 days following any Change of Control Triggering Event, the Company will be required to mail a notice to holders of the Securities of this series describing the transaction or transactions that constitute the Change of Control Triggering Event and offering to repurchase such Securities on the date specified in the notice, which date will be no earlier than 30 days and no later than 60 days from the date such notice is mailed (the “Change of Control Payment Date”), pursuant to the procedures described herein and in such notice. The Company must comply with the requirements of Rule 14e-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and any other securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with the repurchase of the Securities of this series as a result of a Change of Control Triggering Event. To the extent that the provisions of any securities laws or regulations conflict with the Change of Control provisions herein, the Company will be required to comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under the Change of Control provisions herein by virtue of such conflicts. 
On the Change of Control Payment Date, the Company will be required, to the extent lawful, to (i) accept for payment all Securities of this series or portions of such Securities properly tendered pursuant to the Change of Control Offer; (ii) deposit with the paying agent an amount equal to the Change of Control Payment in respect of all Securities of this series or portions of such Securities properly tendered; and (iii) deliver or cause to be delivered to the Trustee the Securities of this series properly accepted together with an Officers’ Certificate stating the aggregate principal amount of Securities of this series or portions of such Securities being purchased. 
“Below Investment Grade Rating Event” means the Securities of this series are rated below an Investment Grade Rating by each of the Rating Agencies (as defined below) on any date from the date of the public notice of an arrangement that could result in a Change of Control until the end of the 60-day period following public notice of the occurrence of the Change of Control (which 60-day period shall be extended so long as the rating of the Securities of this series is under publicly announced consideration for possible downgrade by any of the Rating Agencies). 
“Change of Control” means the occurrence of any of the following: (i) the direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the properties or assets of the Company and its Subsidiaries taken as a whole to any Person other than the Company or one of its Subsidiaries; or (ii) the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any Person becomes the beneficial owner, directly or indirectly, of more than 50% of the total voting power of the Company’s voting stock.
“Change of Control Triggering Event” means the occurrence of both a Change of Control and a Below Investment Grade Rating Event.

“Fitch” means Fitch Ratings.

“Investment Grade Rating” means a rating equal to or higher than BBB- (or the equivalent) by Fitch, Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P. 
“Moody’s” means Moody’s Investors Service, Inc. 
“Person” means any individual, partnership, corporation, limited liability company, joint stock company, business trust, trust, unincorporated association, joint venture or other entity, or a government or political subdivision or agency thereof. 

“Rating Agencies” means (i) each of Fitch, Moody’s and S&P; and (ii) if any of Fitch, Moody’s or S&P ceases to rate the notes or fails to make a rating of the notes publicly available for reasons outside of the Company’s control, a “nationally recognized statistical rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act, selected by the Company (as certified by a Board Resolution) as a replacement agency for Fitch, Moody’s or S&P, or all of them, as the case may be. 
“S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. 

FORM OF TRANSFER NOTICE 
FOR VALUE RECEIVED the undersigned registered holder hereby sell(s), assign(s) and transfer(s) unto 
Insert Taxpayer Identification No.:   
Please print or typewrite name and address including zip code of assignee of the within Security: 
and all rights thereunder, hereby irrevocably constituting and appointing _____________________ to transfer said Security on the books of the Company with full power of substitution in the premises. 

____________________________
By:
Date:

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY 
The following increases or decreases in this Global Security have been made: 
	
					
	Date of Increase
or Decrease
	Amount of
decrease 
in Principal 
Amount
of the Global
Security
	Amount of
increase
in Principal 
Amount
of this Global
Security
	Principal Amount
of 
this Global
Security
following such decrease or
increase
	Signature of
authorized
signatory of
Trustee or
Securities
CustodianSECURITIES
PURCHASE AGREEMENT

 

This
Securities Purchase Agreement (“Agreement”) is made as of the date last indicated below on the acceptance page
hereof, by and between FOOTHILLS EXPLORATION, INC., a Delaware corporation (the “Company”) and WILSHIRE
ENERGY PARTNERS, LLC, (“Wilshire” or “Purchaser”).

 

R
E C I T A L S

 

A.
The Purchaser desires to purchase from the Company and the Company desires to sell to the Purchaser 200,000 units (individually
a “Unit” and in the plural, the “Units”) each consisting of one share of the common stock
of the Company (“Share”) and one warrant to purchase a share of common stock of the Company at a strike price
of $1.50 per share for a term of 36 months from the Closing (individually a “Warrant” and in the plural, “Warrants”).
The shares underlying the Warrants are hereinafter referred to as the “Warrant Shares”).

 

C.
The purchase price for the Units shall be $1 for each Unit (the “Unit Price”) or an aggregate purchase price of
USD$200,000 (the “Purchase Price”).

 

AGREEMENT

 

It
is agreed as follows:

 

1.
  PURCHASE AND SALE OF UNITS.

 

1.1
Purchase and Sale. Subject to the terms and conditions set forth herein, at Closing, Purchaser shall purchase, and the
Company shall sell to Purchaser 200,000 Units at one dollar ($1.00) per Unit for a total purchase price of $200,000.

 

2.
  CLOSING.

 

2.1
Date and Time. The sale of Units shall take place in one closing (“Closing”), at which Purchaser shall
wire the Purchase Price to the Company and the Company promptly thereafter shall deliver or caused to be delivered to the Purchaser
(i) a certificate or certificates representing 200,000 Shares and (ii) warrants to purchase 200,000 Shares, substantially in the
form as the Warrants attached hereto as Exhibit A (the “Warrants”).

 

3.
  REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

 

As
a material inducement to the Purchaser to purchase the Units the Company represents and warrants that the following statements
are true and correct in all material respects as of the date hereof and will be true and correct in all material respects at Closing,
except as expressly qualified or modified herein. All references in this Section 3 to the Shares, Warrants or Warrant Shares shall
be collectively referred to as the “Securities” unless the context requires otherwise.

 

3.1
Organization and Good Standing. The Company is a corporation duly organized, validly existing, and in good standing under
the laws of the State of Delaware and has full corporate power and authority to enter into and perform its obligations under this
Agreement, and to own its properties and to carry on its business in all jurisdictions as presently conducted and as proposed
to be conducted. The Company and its subsidiaries have all government and other licenses and permits and authorizations to do
business in all jurisdictions where their activities require such license, permits and authorizations, except where failure to
obtain any such license, permit or authorization will not have a Material Adverse Effect, as defined herein.

 

    	1

    	 

    

 

3.2
Authorization and Enforcement. This Agreement, including any instrument or instruments which evidence the Warrants and
any other agreements delivered together with this Agreement or in connection herewith (collectively “Transaction Documents”)
have been duly authorized, executed and delivered by the Company and are valid and binding agreements of the Company enforceable
in accordance with their terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar
laws of general applicability relating to or affecting creditors’ rights generally and to general principles of equity.
The Company has full corporate power and authority necessary to enter into and deliver the Transaction Documents and to perform
its obligations thereunder.

 

3.3
Reservation and Valid Issuance of Securities. The Warrants have been duly and validly authorized and delivered and are
fully enforceable as against the Company. The Company has reserved 1.5 times (150%) of the number of shares for which the Warrants
are initially exercisable (i.e. the Warrant Shares), and shall increase the number of shares reserved for issuance in the event
of any adjustment required to satisfy Warrant exercise terms from time to time. The Company will, at closing, have notified its
transfer agent to reflect and maintain such reservation of shares in its books and records. The Warrant Shares issuable upon exercise
of the Warrants have been duly and validly authorized and, upon issuance upon due exercise of the Warrants, will be validly issued,
fully paid and non-assessable. The Warrant Shares, upon issuance in accordance with the Warrants will be, free and clear of any
security interests, liens, claims or other encumbrances, other than restrictions upon transfer under federal and state securities
laws. The Company’s Subsidiaries (wholly or partially owned) are as listed on Schedule 3.3 annexed hereto. The shares
of each Subsidiary are duly authorized, validly issued, fully paid and non-assessable and held by the Company which has sole,
and unencumbered marketable title and is the sole owner.

 

3.4
No Conflict, Breach, Violation or Default; Third Party Consents. The
execution, delivery and performance of the Transaction Documents by the Company and the issuance and sale of the Securities
will not conflict with or result in a breach or violation of any of the terms and provisions of, or constitute a default under
(i) the Company’s Certificate of Incorporation or Certificates of Designation or the Company’s Bylaws , each as in
effect on the date hereof (collectively, the “Company Documents”), or (ii) any statute, rule, regulation or
order of any governmental agency, self-regulatory agency, securities regulatory or insurance regulatory agency or body or any
court, domestic or foreign, having jurisdiction over the Company or any of its assets or properties, or (iii) any material agreement
among shareholders of which the Company is aware or any agreement or instrument to which the Company is a party or by which the
Company is bound or to which any of its assets or properties is subject; except in the case of each of clauses (ii) and (iii),
such as could not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect. No
approval of or filing with any governmental authority is required for the Company to enter into, execute or perform this Agreement
or any Transaction Document.

 

3.5
SEC Reports and Financial Statements.

 

3.5.1
The Company has made available to Purchaser through the SEC’s EDGAR system accurate and complete copies (excluding copies
of exhibits) of each report, registration statement, and definitive proxy statement filed by the Company with the United States
Securities and Exchange Commission (“SEC”) since December 31, 2014 (collectively, the “SEC Reports”).
All statements, reports, schedules, forms and other documents required to have been filed by the Company with the SEC have been
so filed. As of the time it was filed with the SEC (or, if amended or superseded by a filing prior to the date of this Agreement,
then on the date of such filing): (i) each of the SEC Reports complied in all material respects with the applicable requirements
of the Securities Act, or the Securities Exchange Act of 1934 (the “1934 Act”), as amended; and (ii) none of
the SEC Reports contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein
or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.

 

    	2

    	 

    

 

3.6
Securities Law Compliance. Assuming the accuracy of the representations and warranties of Purchaser set forth in Section
4 of this Agreement, the offer and sale of the Securities comprising the Units constitutes an exempted transaction under the Securities
Act, and registration of the Warrants or Warrant Shares under the Securities Act for issuance herein is not required. The Company
shall make such filings as may be necessary to comply with the federal securities laws and the “blue sky” laws of
any state in connection with the offer and sale of the Securities, which filings will be made in a timely manner.

 

3.7
Title to Properties. Except as disclosed in the SEC Reports, the Company has good and marketable title to all real properties
and all other properties and assets owned by it, in each case free from liens, encumbrances and defects that would materially
affect the value thereof or materially interfere with the use made or currently planned to be made thereof by them; and except
as disclosed in the SEC Reports, the Company holds any leased real or personal property under valid and enforceable leases with
no exceptions that would materially interfere with the use made or currently planned to be made thereof by them.

 

3.8
Environmental Matters. To the Company’s Knowledge, except as disclosed in the SEC Reports, the Company (i) is not
in violation of any statute, rule, regulation, decision or order of any governmental agency or body or any court, domestic or
foreign, relating to the use, disposal or release of hazardous or toxic substances or relating to the protection or restoration
of the environment or human exposure to hazardous or toxic substances (collectively, “Environmental Laws”),
(ii) does not own or operate any real property contaminated with any substance that is subject to any Environmental Laws, (iii)
is not liable for any off-site disposal or contamination pursuant to any Environmental Laws, or (iv) is not subject to any claim
relating to any Environmental Laws, which violation, contamination, liability or claim has had or could reasonably be expected
to have a Material Adverse Effect, individually or in the aggregate; and there is no pending or, to the Company’s Knowledge,
threatened investigation that might lead to such a claim.

 

3.9
Litigation. Except as disclosed in Schedule 3.9 or in the SEC Reports, there are no pending material actions, suits
or proceedings against or affecting the Company, or any of its properties; and to the Company’s Knowledge, no such actions,
suits or proceedings are threatened or contemplated against the Company.

 

3.10
No Directed Selling Efforts or General Solicitation. Neither the Company nor any Person, as defined below, acting on its
behalf has conducted any general solicitation or general advertising (as those terms are used in Regulation D) in connection with
the offer or sale of any of the Securities. “Person” means any individual, corporation, company, limited liability
company, partnership, limited liability partnership, trust, estate, proprietorship, joint venture, association, organization or
entity.

 

3.11
No Integrated Offering. Neither the Company nor any of its Affiliates, nor any Person acting on its or their behalf has,
directly or indirectly, made any offers or sales of any Company security or solicited any offers to buy any security, under circumstances
that would adversely affect reliance by the Company on Section 4(a)(2) for the exemption from registration for the transactions
contemplated hereby or would require registration of the Securities under the Securities Act. For purposes of this Agreement,
“Affiliate” means, with respect to any Person, any other Person which directly or indirectly through one or
more intermediaries Controls, is controlled by, or is under common control with, such Person.

 

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3.12
Disclosures. Except as otherwise disclosed in the Schedules annexed hereto, neither the Company nor any Person acting on
any of their behalf has provided the Purchaser or its agents or counsel with any information that constitutes or might constitute
material, non-public information. To the knowledge of the Company, the written materials delivered to the Purchaser in connection
with the transactions contemplated by the Transaction Documents do not contain any untrue statement of a material fact or omit
to state a material fact necessary in order to make the statements contained therein, in light of the circumstances under which
they were made, not misleading.

 

4.
  REPRESENTATIONS AND WARRANTIES OF PURCHASER.

 

Purchaser
hereby represents warrants and covenants with the Company as follows:

 

4.1
Legal Power. Purchaser has the requisite individual, corporate, partnership, limited liability company, trust, or fiduciary
power, as appropriate, and is authorized, to enter into this Agreement, to purchase the Units hereunder, and to carry out and
perform its obligations under the terms of this Agreement or any other Transaction Documents to which it is a party.

 

4.2
Due Execution. The execution and performance of the terms under this Agreement and Purchaser Signature Page hereto, have
been duly authorized, executed and delivered by Purchaser, and, upon due execution and delivery by the Company, this Agreement
will be a valid and binding agreement of Purchaser.

 

4.3
Access to Information. Purchaser understands that an investment in the Securities involves a high degree of risk and long-term
illiquidity, including, risk of loss of its entire investment. Purchaser further understands that the Company has limited capital
and is not profitable and will require substantial revenues or additional financing in order to be able to repay existing
obligations and complete pending or contemplated transactions. Purchaser represents that it has received and reviewed copies of
the SEC Reports as well as each Schedule annexed hereto, including, specifically, Schedule 4.3, which discloses the Company’s
current capitalization structure, inclusive of, warrants and options currently issued and outstanding. Purchaser represents that
it has been afforded the opportunity to ask questions of the officers of the Company regarding its business prospects and regarding
the Securities, all as such Purchaser deems necessary or appropriate to make an informed investment decision regarding purchase
and acquisition of the Securities

 

4.4
 Restricted Securities.

 

4.4.1
Purchaser has been advised that none of the Securities have been registered under the Securities Act or any other applicable securities
laws and that the Units are being offered and sold pursuant to Section 4(a)(2) of the Securities Act and/or Rule 506 of Regulation
D and/or Regulation S thereunder, and that the Company’s reliance upon Section 4(a)(2) and/or Rule 506 of Regulation D.
Purchaser acknowledges that the Securities when issued will be “restricted securities” as defined by Rule 144 promulgated
pursuant to the Securities Act. None of the Securities may be resold in the absence of either an effective registration thereof
under the Securities Act or an exemption from such registration requirements. Notwithstanding the foregoing, the Company shall
not have any right to approve, reject or prevent any transfer or opinion.

 

    	4

    	 

    

 

4.4.2
Purchaser represents that it is acquiring the Units for Purchaser’s own account, and not as nominee or agent, for investment
purposes only and not with a view to, or for sale in connection with, a distribution, as that term is used in Section 2(11) of
the Securities Act, in a manner which would require registration under the Securities Act or any state securities laws.

 

4.4.3
Purchaser understands and acknowledges that the certificates representing the Shares, Warrants and, if issued, the Warrant Shares,
will bear substantially the following legend:

 

“THE
SECURTIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT PURPOSES ONLY AND MAY NOT BE TRANSFERRED UNTIL (i)
A REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) SHALL HAVE BECOME EFFECTIVE WITH
RESPECT THERETO OR (ii) AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES
MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES
AND ANY TRANSFER OF THIS CERTIFICATE NEED NOT REQUIRE NOTICE TO OR CONSENT OF THE ISSUER.”

 

4.5
Purchaser Sophistication and Ability to Bear Risk of Loss. Purchaser acknowledges that it is able to protect its
interests in connection with the acquisition of the Securities and can bear the economic risk of investment in such securities
without producing a material adverse change in such Purchaser’s financial condition. Purchaser, either alone or with Purchaser’s
representative(s), otherwise has such knowledge and experience in financial or business matters that such Purchaser is capable
of evaluating the merits and risks of the investment in the Securities.

 

4.6
Independent Investigation. Purchaser in making his decision to purchase the Units herein, has relied solely upon an independent
investigation made by him and his legal, tax and/or financial advisors and, is not relying upon any oral representations of the
Company.

 

4.7
No Advertising. Purchaser has not received any general solicitation or advertising regarding the offer of the Units or
any of the Securities.

 

4.8
Certain Trading Activities. Each Purchaser covenants that neither it nor any person acting on its behalf or pursuant to
any understanding with it will engage in any transactions in the securities of the Company (including short sales) prior to the
time that the transactions contemplated by this Agreement are publicly disclosed

 

4.9
Public Statements. The Purchaser agrees not to issue any public statement with respect to its investment in the Company
without the Company’s prior written consent, except such disclosures as may be required under applicable law.

 

5.
  COVENANTS OF THE COMPANY RELATING TO WARRANTS. 

 

5.1
Reservation of Shares. The Company hereby covenants to maintain at all times while the Warrants are outstanding, reserved
and authorizved for issuance upon exercise of the Warrants, such number of Warrant Shares as equals 150% of the number of shares
that such Warrants are convertible into or exchangeable for at any time and from time to time. The Company hereby further agrees
to take all further acts, including, without limitation, providing written notification of the foregoing limitation to its transfer
agent with instructions not to issue shares that would result in violation by the Company of the foregoing provision, as well
as amending its charter or amending any filing with any exchange or quotation service in order to effectuate the foregoing.

 

    	5

    	 

    

 

6.
  ADDITIONAL COVENANTS OF THE COMPANY

 

6.1
Piggy Back Registration Rights. At any time following the date hereof that the Shares,
Warrants or Warrant Shares, Rights (as defined below in paragraph 6.3) together shares issuable on exercise of Rights (collectively,
the “Registerable Securities”) are owned by the Purchaser (which shall include its transferees, assignees or
other successors in interest) and there is not an effective registration statement covering all of the Registerable Securities,
and if the Company shall determine to prepare and file with the SEC a registration statement relating to an offering for its own
account or the account of others under the Act, of any of its equity securities, other than on Form S-4 or Form S-8 (each as promulgated
under the Act) or their then equivalents (the “Registration Statement”) relating to equity securities to be
issued solely in connection with any acquisition of any entity or business or equity securities issuable in connection with the
Company’s stock option or other employee benefit plans, then the Company shall deliver to each Purchaser a written notice
of such determination and automatically, and without any further request from the holder of Registerable Securities include in
such registration statement all of such Registerable Securities unless and to the extent that, such Holder requests otherwise
in writing; provided, however, that Registerable Securities may be reduced on a pro rata basis with such other securities
being registered on the applicable registration statement if and to the extent that the underwriter(s) associated with the offering
which is the subject of the Registration Statement believes, in good faith, that the inclusion of such Registerable Securities
will have an adverse effect on the sale of the securities for which such registration statement was filed. The Company shall not
be required to register any Registerable Securities pursuant to this Section 6.1 that are eligible for resale pursuant
to Rule 144 promulgated by the SEC pursuant to the Act or that are the subject of a then effective registration statement; provided,
that the Company’s counsel renders an opinion letter as such in favor of the Purchaser at Company’s expense. If any
SEC guidance or FINRA regulation sets forth a limitation on the number of securities permitted to be registered on a particular
registration statement (and notwithstanding that the Company used diligent efforts to advocate with the SEC or such other applicable
regulatory authority for the registration of all or a greater portion of Registerable Securities), the number of Registerable
Securities to be registered on such registration statement will be reduced on a pro rata basis with such other securities being
registered on the applicable registration statement.

 

6.1.1
Registration Process. In connection with the registration of the Registerable Securities pursuant to Section 6.1, the Company
shall:

 

(a)
Prepare and file with the SEC the Registration Statement and such amendments (including post effective amendments) to the Registration
Statement and supplements to the prospectus included therein (a “Prospectus”) as the Company may deem necessary
or appropriate and take all lawful action such that the Registration Statement and any amendment thereto does not, when it becomes
effective, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein, not misleading and that the Prospectus forming part of the Registration Statement, and any amendment
or supplement thereto, does not at any time during the period commencing on the effective date of the Registration Statement and
ending on the date on which all of the Registerable Securities may be sold to the public without registration under the Securities
Act in reliance on Rule 144 (the “Registration Period”) include an untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading;

 

    	6

    	 

    

 

(b)
Comply with the provisions of the Securities Act with respect to the Registerable Securities covered by the Registration Statement
until the earlier of (i) such time as all of such Registerable Securities have been disposed of in accordance with the intended
methods of disposition by each Purchaser as set forth in the Prospectus forming part of the Registration Statement or (ii)
the date on which the Registration Statement is withdrawn;

 

(c)
Furnish to each Purchaser and its legal counsel identified to the Company (i) promptly after the same is prepared and publicly
distributed, filed with the SEC, or received by the Company, one copy of the Registration Statement, each Prospectus, and each
amendment or supplement thereto, and (ii) such number of copies of the Prospectus and all amendments and supplements thereto and
such other documents, as the Purchaser may reasonably request in order to facilitate the disposition of the Registerable Securities.
Such documents may be made available to each Purchaser through the SEC’s EDGAR system;

 

(d)
Register or qualify the Registerable Securities covered by the Registration Statement under such securities or “blue sky”
laws of such jurisdictions as the Purchaser reasonably request, (ii) prepare and file in such jurisdictions such amendments (including
post effective amendments) and supplements to such registrations and qualifications as may be necessary to maintain the effectiveness
thereof at all times during the Registration Period, (iii) take all such other lawful actions as may be necessary to maintain
such registrations and qualifications in effect at all times during the Registration Period, and (iv) take all such other lawful
actions reasonably necessary or advisable to qualify the Registerable Securities for sale in such jurisdictions; provided,
however, that the Company shall not be required in connection therewith or as a condition thereto to (A) qualify to do business
in any jurisdiction where it would not otherwise be required to qualify, (B) subject itself to general taxation in any such jurisdiction
or (C) file a general consent to service of process in any such jurisdiction;

 

(e)
As promptly as practicable after becoming aware of such event, notify each Purchaser of the occurrence of any event, as a result
of which the Prospectus included in the Registration Statement, as then in effect, includes an untrue statement of a material
fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading, and promptly prepare an amendment to the Registration Statement
and supplement to the Prospectus to correct such untrue statement or omission, and deliver a number of copies of such supplement
and amendment to each Purchaser as such Purchaser may reasonably request;

 

(f)
As promptly as practicable after becoming aware of such event, notify each Purchaser (or, in the event of an underwritten offering,
the managing underwriters) of the issuance by the SEC of any stop order or other suspension of the effectiveness of the Registration
Statement and take all lawful action to effect the withdrawal, rescission or removal of such stop order or other suspension;

 

(g)
Take all such other lawful actions reasonably necessary to expedite and facilitate the disposition by the Purchaser of its Registerable
Securities in accordance with the intended methods therefore provided in the Prospectus which are customary under the circumstances;
and

 

(h)
Cooperate with the Purchaser to facilitate the timely preparation and delivery of certificates representing Registerable Securities
to be sold pursuant to the Registration Statement, which certificates shall, if required under the terms of this Agreement, be
free of all restrictive legends, and to enable such Registerable Securities to be in such denominations and registered in such
names as any Purchaser may request and maintain a transfer agent for the Common Stock.

 

    	7

    	 

    

 

6.1.2
Obligations and Acknowledgements of the Purchaser. In connection with the registration of the Registerable Securities,
Purchaser shall have the following obligations and hereby make the following acknowledgements:

 

(a)
It shall be a condition precedent to the obligations of the Company to include the Registerable Securities in the Registration
Statement that Purchaser wishing to participate in the Registration Statement (i) promptly shall furnish to the Company such information
regarding itself, the Registerable Securities held by it and the intended method of disposition of the Registerable Securities
held by it as shall be reasonably required to effect the registration of such Registerable Securities and (ii) promptly shall
execute such documents in connection with such registration as the Company may reasonably request. Prior to the first anticipated
filing date of a Registration Statement, the Company shall notify each Purchaser of the information the Company requires from
such Purchaser (the “Requested Information”) if such Purchaser elects to have any of its Registerable Securities
included in the Registration Statement. If Purchaser notifies the Company and provides the Company the information required hereby
at least three business days before the Company files Amendment No.1 to the Registration Statement, the Company will include such
information within an amendment to the Registration Statement that includes the Registerable Securities of such Purchaser provided,
however, that the Company shall not be required to file such amendment to the Registration Statement at any time less than
five (5) business days prior to the effective date or if the Company has been informed by the Commission of a “no review”
comment on the Registration Statement as originally filed by the Company.

 

(b)
Purchaser agrees promptly and timely to cooperate with the Company in connection with the preparation and filing of a Registration
Statement hereunder, unless such Purchaser has notified the Company in writing of its election to exclude all of its Registerable
Securities from such Registration Statement;

 

(c)
Purchaser agrees that, upon receipt of any notice from the Company of the occurrence of any event of the kind described in Section
6.1.1(e) or 6.1.1(f), such Purchaser shall immediately discontinue its disposition of Registerable Securities pursuant to the
Registration Statement covering such Registerable Securities until the Purchaser’s receipt of the copies of the supplemented
or amended Prospectus contemplated by Section 6.1.1(e) and, if so directed by the Company, the Purchaser shall deliver to the
Company (at the expense of the Company) or destroy (and deliver to the Company a certificate of destruction) all copies in the
Purchaser’s possession, of the Prospectus covering such Registerable Securities current at the time of receipt of such notice;
and

 

(d)
Purchaser acknowledges that it may be deemed to be a statutory underwriter within the meaning of the Securities Act with respect
to the Registerable Securities being registered for resale by it, and if a Purchaser includes Registerable Securities for offer
and sale within a Registration Statement such Purchaser hereby consents to the inclusion in such Registration Statement of a disclosure
to such effect.

 

6.1.3
Expenses of Registration. All expenses (other than underwriting discounts and commissions and the fees and expenses of
Purchaser’s counsel) incurred in connection with registrations, filings or qualifications pursuant to this Section 6.1,
including, without limitation, all registration, listing, and qualifications fees, printing and engraving fees, accounting fees,
and the fees and disbursements of counsel for the Company, shall be borne by the Company.

 

    	8

    	 

    

 

6.1.4
Indemnification and Contribution.

 

(a)
Indemnification by the Company. The Company shall indemnify and hold harmless each Purchaser and each underwriter, if any,
which facilitates the disposition of Registerable Securities, and each of their respective officers and directors and each Person
who controls such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such
Person being sometimes hereinafter referred to as an “Indemnified Person”) from and against any losses, claims,
damages or liabilities, joint or several, to which such Indemnified Person may become subject under the Securities Act or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon an untrue
statement or alleged untrue statement of a material fact contained in any Registration Statement or an omission or alleged omission
to state therein a material fact required to be stated therein or necessary to make the statements therein, not misleading, or
arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any Prospectus
or an omission or alleged omission to state therein a 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 the Company hereby agrees to reimburse
such Indemnified Person for all reasonable legal and other expenses incurred by them in connection with investigating or defending
any such action or claim as and when such expenses are incurred; provided, however, that the Company shall not be liable to any
such Indemnified Person in any such case to the extent that any such loss, claim, damage or liability arises out of or is based
upon (i) an untrue statement or alleged untrue statement made in, or an omission or alleged omission from, such Registration Statement
or Prospectus in reliance upon and in conformity with written information furnished to the Company by such Indemnified Person
expressly for use therein or (ii) in the case of the occurrence of an event of the type specified in Section 6.1.1(e), the use
by the Indemnified Person of an outdated or defective Prospectus after the Company has provided to such Indemnified Person an
updated Prospectus correcting the untrue statement or alleged untrue statement or omission or alleged omission giving rise to
such loss, claim, damage or liability, provided, however, that Company shall not be liable under this Section 6.1.4(a) for any
amount in excess of 120% of the amount invested by such Purchaser inclusive of amount received in respect of Registerable Securities
sold by it.

 

(b)
Indemnification by the Purchaser and Underwriter. Purchaser agrees, as a consequence of the inclusion of any of its Registerable
Securities in a Registration Statement, and each underwriter, if any, which facilitates the disposition of Registerable Securities
shall agree, severally and not jointly, as a consequence of facilitating such disposition of Registerable Securities promptly
to (i) indemnify and hold harmless the Company, its directors (including any person who, with his or her consent, is named in
the Registration Statement as a director nominee of the Company), its officers who sign any Registration Statement and each Person,
if any, who controls the Company within the meaning of either Section 15 of the Securities Act or Section 20 of the 1934 Act,
against any losses, claims, damages or liabilities to which the Company or such other persons may become subject, under the Securities
Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based
upon an untrue statement or alleged untrue statement of a material fact contained in such Registration Statement or Prospectus
or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein (in light of the circumstances under which they were made, in the case of the Prospectus),
not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or
omission or alleged omission was made in reliance upon and in conformity with written information furnished to the Company by
the Purchaser or underwriter expressly for use therein, and (ii) promptly to reimburse the Company for any legal or other expenses
incurred by the Company in connection with investigating or defending any such action or claim as such expenses are incurred;
provided, however, that Purchaser shall not be liable under this Section 6.1.4(b) for any amount in excess of the
net proceeds paid to such Purchaser in respect of Registerable Securities sold by it.

 

    	9

    	 

    

 

(c)
Notice of Claims, etc. Promptly after receipt by a Person seeking indemnification pursuant to this Section 6.1.4 (an “Indemnified
Party”) of written notice of any investigation, claim, proceeding or other action in respect of which indemnification
is being sought (each, a “Claim”), the Indemnified Party promptly shall notify the Person against whom indemnification
pursuant to this Section 6.1.4 is being sought (the “Indemnifying Party”) of the commencement thereof; but
the omission to so notify the Indemnifying Party shall not relieve it from any liability that it otherwise may have to the Indemnified
Party, except to the extent that the Indemnifying Party is materially prejudiced and forfeits substantive rights and defenses
by reason of such failure. In connection with any Claim as to which both the Indemnifying Party and the Indemnified Party are
parties, the Indemnifying Party shall be entitled to assume the defense thereof. Notwithstanding the assumption of the defense
of any Claim by the Indemnifying Party, the Indemnified Party shall have the right to employ separate legal counsel and to participate
in the defense of such Claim, and the Indemnifying Party shall bear the reasonable fees, out of pocket costs and expenses of such
separate legal counsel to the Indemnified Party if (and only if): (i) the Indemnifying Party shall have agreed to pay such fees,
costs and expenses, (ii) the Indemnified Party shall reasonably have concluded that representation of the Indemnified Party by
the Indemnifying Party by the same legal counsel would not be appropriate due to actual or, as reasonably determined by legal
counsel to the Indemnified Party, potentially differing interests between such parties in the conduct of the defense of such Claim,
or if there may be legal defenses available to the Indemnified Party that are in addition to or disparate from those available
to the Indemnifying Party, or (iii) the Indemnifying Party shall have failed to employ legal counsel reasonably satisfactory to
the Indemnified Party within a reasonable period of time after notice of the commencement of such Claim. If the Indemnified Party
employs separate legal counsel in circumstances other than as described in the preceding sentence, the fees, costs and expenses
of such legal counsel shall be borne exclusively by the Indemnified Party. Except as provided above, the Indemnifying Party shall
not, in connection with any Claim in the same jurisdiction, be liable for the fees and expenses of more than one firm of counsel
for the Indemnified Party (together with appropriate local counsel). The Indemnified Party shall not, without the prior written
consent of the Indemnifying Party (which consent shall not unreasonably be withheld), settle or compromise any Claim or consent
to the entry of any judgment that does not include an unconditional release of the Indemnifying Party from all liabilities with
respect to such Claim or judgment or contain any admission of wrongdoing.

 

(d)
Contribution. If the indemnification provided for in this Section 6.1.4 is unavailable to or insufficient to hold harmless
an Indemnified Party in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein,
then each Indemnifying Party shall contribute to the amount paid or payable by such Indemnified Party as a result of such losses,
claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative fault
of the Indemnifying Party and the Indemnified Party in connection with the statements or omissions or alleged statements or omissions
which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable
considerations. The relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material
fact relates to information supplied by such Indemnifying Party or by such Indemnified Party, and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The parties hereto
agree that it would not be just and equitable if contribution pursuant to this Section 6.1.4(d) were determined by pro rata allocation
(even if the Purchaser or any underwriters were treated as one entity for such purpose) or by any other method of allocation which
does not take account of the equitable considerations referred to in this Section 6.1.4(d). The amount paid or payable by an Indemnified
Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above shall be deemed
to include any legal or other fees or expenses reasonably incurred by such Indemnified Party in connection with investigating
or defending any such action or claim. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.

 

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(e)
Limitation on Purchaser’s and Underwriters’ Obligations. Notwithstanding any other provision of this Section
6.1.4, in no event shall (i) Purchaser have any liability under this Section 6.1.4 for any amounts in excess of the dollar amount
of the proceeds actually received by Purchaser from the sale of Registerable Securities (after deducting any fees, discounts and
commissions applicable thereto) pursuant to any Registration Statement under which such Registerable Securities are registered
under the Securities Act and (ii) any underwriter be required to undertake liability to any Person hereunder for any amounts in
excess of the aggregate discount, commission or other compensation payable to such underwriter with respect to the Registerable
Securities underwritten by it and distributed pursuant to the Registration Statement.

 

6.1.5
Rule 144. With a view to making available to the Purchaser the benefits of Rule 144, the Company agrees to use reasonable
commercial efforts to:

 

(a)
comply with the provisions of paragraph (c)(1) or (2) of Rule 144; and

 

(b)
file with the SEC in a timely manner all reports and other documents required to be filed by the Company pursuant to Section 13
or 15(d) under the Exchange Act; and, if at any time it is not required to file such reports but in the past, had been required
to or did file such reports, it will, upon the request of Purchaser, make available other information as required by, and so long
as necessary to permit sales of, its Registerable Securities pursuant to Rule 144.

 

6.1.6
Common Stock Issued Upon Stock Split, etc. The provisions of this Section 6.1 shall apply to any shares of Common
Stock or any other securities issued as a dividend or distribution in respect of the Warrant Shares, or otherwise issued in exchange
for the Common Stock generally (e.g. such as a reorganization, spinoff, merger, etc.).

 

6.1.7
Termination of Registration Rights. The piggy back registration rights granted in this Section 6.1 shall terminate with
respect to a Security upon the date such Security is first eligible to be resold pursuant to Rule 144 of the Securities Act.

 

6.2
Filing of Reports. Company shall file on a timely basis, any and all reports or amendments thereto, as it is required to
file in order to remain fully current with all of its reporting obligations under the 1934 Act so as to enable sales without resale
limitations one (1) year from the date of final Closing, pursuant to Rule 144, as amended. The Company shall pay for all opinions
or similar letters to its transfer agent, as well as pay for all transfer agent costs, relating to the removal of the Rule 144
restrictive legend on share certificates representing the Conversion Shares or Warrant Shares. For avoidance of doubt, all references
herein to filings to be made on a “timely basis” shall include and mean, any extension periods permissible under Rule
12b-25 of the Exchange Act, provided that the Company has complied with such rule, but not beyond said extension date.

 

6.3
Anti-Dilution. If the Company during the 150 days following the Closing (the “Anti-Dilution Period”) issues
any additional securities (a “New Issuance”) (including, but not limited to, any class of shares, preferred stock,
warrants, rights to subscribe for shares, convertible debt or other securities convertible into any share class) for a consideration
per share, after giving effect to commissions, fees and other expenses (collectively “offering costs”), that is less,
or which on conversion or exercise of the underlying security is less, than the Unit Price (as adjusted for any change of resulting
from any forward or reverse share splits, stock dividends and similar events) (a “Down Round Price”), the Company
shall issue additional Securities to Purchaser in an amount that it would have received at the Down Round Price, rounded up to
the next whole share, on a full ratchet basis at no additional consideration (“Purchaser’s Down Round Issuances”).
In the event that a New Issuance is made at a Down Round Price and includes both equity securities and rights to acquire additional
securities (whether in the form of warrants, options or other rights) (the “Rights”), then as part of any full ratchet
adjustment the Company shall also include, within the Purchaser’s Down Round Issuances, that number of Rights which Purchaser
would have acquired had it participated in the New Issuance. By way of illustration: If within the Anti-Dilution Period the Company
issues convertible debt that may at the option of the holder be converted into common stock, giving effect to offering costs,
at a Down Round Price of $0.90 per share, the Company thereupon shall (i) promptly deliver to Purchaser an additional 22,223 shares
of common stock, (ii) promptly deliver to Purchaser warrants to purchase an additional 22,223 shares of common stock and (iii)
adjust the strike price of all Warrants to $1.35 per share. If, by way of further example, the foregoing illustration included
Rights which permitted a new purchaser investing $100,000 to receive Rights to purchase 100,000 shares of common stock at a strike
price of $1.00 per share, then (x) the strike price of the Warrants shall be adjusted to $1.00 per share and (y) the Company additionally
shall deliver to the Purchaser Rights to acquire 200,000 shares of common stock on the same terms that Purchaser would have received
had it participated in the New Issuance.

 

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7.
  CONDITIONS

 

7.1
Conditions Precedent to the Obligation of the Company to Close and to Sell the Securities. The obligation hereunder of
the Company to close and issue and sell the Securities to the Purchaser at a Closing is subject to the satisfaction or waiver,
at or before such Closing of the conditions set forth below. These conditions are for the Company’s sole benefit and may
be waived in writing by the Company at any time in its sole discretion.

 

7.1.1
Accuracy of the Purchaser’s Representations and Warranties. The representations and warranties of Purchaser (including,
for avoidance of doubt, those relating to the Questionnaire) shall be true and correct in all material respects as of the date
when made and as of such Closing as though made at that time, except for representations and warranties that are expressly made
as of a particular date, which shall be true and correct in all material respects as of such date.

 

7.1.2
Performance by the Purchaser. Purchaser shall have performed, satisfied, and complied in all material respects with all
covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Purchaser at
or prior to the Closing.

 

7.1.3
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 which prohibits the consummation of any
of the transactions contemplated by this Agreement.

 

7.1.4
Delivery of Purchase Price. The Purchase Price for the Units shall be available in cleared funds and remitted in accordance
with the terms hereof.

 

7.1.5
Delivery of Transaction Documents. The Transaction Documents shall have been duly executed and delivered by the Purchaser
to the Company.

 

7.1.6
Delivery of Notice to Transfer Agent. Delivery of written irrevocable notice to the Company’s transfer agent, in
form reasonably satisfactory to Purchaser, that the Shares and Warrants have been issued and requiring that the transfer agent
reserve 150% of the number of Warrant Shares outstanding at all times, until all such Warrant Shares are issued.

 

    	12

    	 

    

 

7.1.7
Acceptance of Securities Purchase Agreement. The Company shall have duly executed and delivered a copy of the acceptance
page to the Securities Purchase Agreement for the Purchaser.

 

7.2
Conditions Precedent to the Obligation of the Purchaser to Close and to Purchase the Units. The obligation hereunder of
the Purchaser to purchase the Units and consummate the transactions contemplated by this Agreement is subject to the satisfaction
or waiver, at or before Closing, of each of the conditions set forth below. These conditions are for the Purchaser’s sole
benefit and may be waived in writing by the Purchaser at any time in its sole discretion.

 

7.2.1
Accuracy of the Company’s Representations and Warranties. Each of the representations and warranties of the Company
in this Agreement and the other Transaction Documents shall be true and correct in all material respects as of such Closing, except
for representations and warranties that speak as of a particular date, which shall be true and correct in all material respects
as of such date.

 

7.2.2
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 to be performed, satisfied or complied with by the Company at
or prior to such Closing.

 

7.2.3
No Suspension, Etc. Trading in the Common Stock of the Company shall not have been suspended by the SEC or a Trading Market
(except for any suspension of trading of limited duration agreed to by the Company, which suspension shall be terminated prior
to the Closing). For the purposes of this Agreement, “Trading Market” means any of the following markets or exchanges
on which the Common Stock is listed or quoted for trading on the date in question: the NYSE MKT, the New York Stock Exchange,
any market operated by the NASDAQ Capital Market, NASDAQ Global Market or NASDAQ Global Select Market, or the OTC Markets (or
any successors to any of the foregoing).

 

7.2.4
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 which prohibits the consummation of any
of the transactions contemplated by this Agreement.

 

7.2.5
No Proceedings or Litigation. No action, suit or proceeding before any arbitrator or any governmental authority shall have
been commenced, and no investigation by any governmental authority shall have been initiated, against the Company, or any of the
officers, directors or affiliates of the Company seeking to restrain, prevent or change the transactions contemplated by this
Agreement, or seeking damages in connection with such transactions.

 

7.2.6
Shares and Warrants. At the Closing, the Company shall have delivered to the Purchaser Shares and Warrants along with all
appropriate board resolutions or other necessary documentation in order to issue the Shares in such denominations as Purchaser
may request. The Company shall have paid any commitment or similar fees to Purchaser and its Management at or prior to the first
Closing. The Company hereby confirms that it shall pay for all costs for any and all Rule 144 opinions or legend removal letters
for the benefit of Purchaser. The Company shall also deliver this Agreement, duly executed by the Company.

 

    	13

    	 

    

 

7.2.7
Secretary’s Certificate. The Company shall deliver to the Purchaser, a secretary’s certificate, dated as of
the each Closing Date, as to (i) the resolutions adopted by the Board of Directors approving the transactions contemplated hereby,
(ii) the Company’s Articles of Incorporation, (iii) the Bylaws, each as in effect at such Closing, and (iv) the authority
and incumbency of the officers of the Company executing the Transaction Documents and any other documents required to be executed
or delivered in connection therewith.

 

7.2.8
Material Adverse Effect. No Material Adverse Effect shall have occurred at or before such Closing Date. 

 

8.
  MISCELLANEOUS.

 

8.1
Indemnification. Purchaser agrees to defend, indemnify and hold the Company harmless against any liability, costs or expenses
arising as a result of any dissemination of any of the Securities by Purchaser in violation of the Securities Act or applicable
state securities law.

 

8.2
Governing Law. The validity and interpretation of this Agreement shall be governed by, and construed and enforced exclusively
in accordance with, the laws of the State of California. Each of the parties hereto and their assigns hereby consents to the exclusive
jurisdiction and venue of the Courts of the State of California, in the County of Los Angeles (or any federal courts having jurisdiction
of such area) with respect to any matter relating to this Agreement and performance of the parties’ obligations hereunder,
the documents and instruments executed and delivered concurrently herewith or pursuant hereto and performance of the parties’
obligations thereunder and each of the parties hereto hereby consents to the personal jurisdiction of such courts and shall subject
itself to such personal jurisdiction. Any action, suit or proceeding relating to such matters shall be commenced, pursued, defended
and resolved only in such courts and any appropriate appellate court having jurisdiction to hear an appeal from any judgment entered
in such courts. The parties irrevocably waive the defense of an inconvenient forum to the maintenance of such suit or proceeding.
Service of process in any action, suit or proceeding relating to such matters may be made and served within or outside the State
of California by registered or certified mail to the parties and their representatives at their respective addresses specified
in Section 8.7, provided that a reasonable time, not less than thirty (30) days, is allowed for response. THE ASSERTION OF ANY
REMEDY BY PURCHASER OR ITS ASSIGNS DOES NOT CONSTITUTE A WAIVER OF ANY OTHER REMEDY AVAILABLE TO IT OR A “SELECTION OF REMEDIES”
BY PURCHASER OR HOLDER. Service of process may also be made in such other manner as may be permissible under the applicable court
rules. THE PARTIES HERETO WAIVE TRIAL BY JURY. 

 

8.3
Successors and Assigns. Except as otherwise expressly provided herein, the provisions hereof shall inure to the benefit
of, and be binding upon, the successors, assigns, heirs, executors, and administrators of the parties hereto.

 

8.4
Entire Agreement. This Agreement and the Exhibits hereto and thereto inclusive of the Transaction Documents, and the other
documents delivered pursuant hereto and thereto, constitute the full and entire understanding and agreement among the parties
with regard to the subjects hereof and no party shall be liable or bound to any other party in any manner by any representations,
warranties, covenants, or agreements except as specifically set forth herein or therein. Nothing in this Agreement, express or
implied, is intended to confer upon any party, other than the parties hereto and their respective successors and assigns, any
rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided herein.

 

    	14

    	 

    

 

8.5
Severability. In case any provision of this Agreement shall be invalid, illegal, or unenforceable, it shall to the extent
practicable, be modified so as to make it valid, legal and enforceable and to retain as nearly as practicable the intent of the
parties, and the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired
thereby.

 

8.6
Amendment and Waiver. Except as otherwise provided herein, any term of this Agreement may be amended, and the observance
of any term of this Agreement may be waived (either generally or in a particular instance, either retroactively or prospectively,
and either for a specified period of time or indefinitely), with the written consent of the Company and of the Purchaser, or,
to the extent such amendment affects only one Purchaser, by the Company and such Purchaser. Any amendment or waiver effected in
accordance with this Section shall be binding upon each future holder of any security purchased under this Agreement (including
securities into which such securities have been converted) and the Company.

 

8.7
Notices. All notices and other communications required or permitted hereunder shall be in writing and shall be effective
when delivered personally, or sent by facsimile or email (with receipt confirmed), provided that a copy is mailed by registered
mail, return receipt requested, or when received by the addressee, if sent by Express Mail, Federal Express or other express delivery
service (receipt requested) in each case to the appropriate address set forth below:

 

If
to the Company:

 

Foothills
Exploration, Inc.

633
17th Street, Suite 1700-A

Denver,
Colorado 80202

Attn:
B.P. Allaire, CEO

Facsimile:
720-449-7479

Email:
bpallaire@foothillspetro.com

 

If
to the Purchaser:

 

Wilshire
Energy Partners LLC

22287
Mulholland Hwy, #350

Calabasas,
CA 91307

Attn:
Kevin Sylla, Director

Phone:
(818) 835-9707

Email:
ksylla@wilshire.energy

 

8.8
Faxes, Electronic Mail and Counterparts. This Agreement may be executed in one or more counterparts. Delivery of an executed
counterpart of the Agreement or any exhibit attached hereto by facsimile transmission or electronic mail (any such delivery, an
“Electronic Delivery”), shall be treated in all manner and respects as an original agreement or instrument
and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person.
At the request of any party hereto, each other party hereto shall re-execute original forms hereof and deliver them in person
to all other parties. No party hereto shall raise the use of Electronic Delivery to deliver a signature or the fact that any signature
or agreement or instrument was transmitted or communicated through the use of Electronic Delivery as a defense to the formation
of a contract, and each such party forever waives any such defense, except to the extent such defense related to lack of authenticity.

 

    	15

    	 

    

 

8.9
Titles and Subtitles. The titles of the paragraphs and subparagraphs of this Agreement are for convenience of reference
only and are not to be considered in construing this Agreement.

 

8.10
Further Assurances. At any time and from time to time after the Closing, upon reasonable request of the other, each party
shall do, execute, acknowledge and deliver such further acts, assignments, transfers, conveyances and assurances as may be reasonably
required for the more complete consummation of the transactions contemplated herein.

 

8.11
Legal Fees. In the event any suit or other legal proceeding is brought for the enforcement of any of the provisions of
this Agreement, the parties hereto agree that the prevailing party or parties shall be entitled to recover from the other party
or parties upon final judgment on the merits reasonable attorneys’ fees, including attorneys’ fees for any appeal,
and costs incurred in bringing such suit or proceeding.

 

[Signature
page follows]

 

    	16

    	 

    

 

[Counterpart
Signature Page to Securities Purchase Agreement of

Foothill
Exploration, Inc.]

 

IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date set forth on the Purchase Signature Page hereto.

 

PURCHASER:

 

	By:	 	 
	 	 	 
	Name:	 	 
	 	 	 
	Title:	 	 
	 	 	 
	Dated:	 	 

 

COMPANY:

 

	By:	 	 
	 	 	 
	Name:	 	 
	 	 	 
	Title:	 	 
	 	 	 
	Dated:	 	 

 

    	17

    	 

    

 

Exhibit
A

 

Form
of Common Stock Purchase Warrant

 

    	18

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