Document:

AT THE MARKET OFFERING AGREEMENT

 

December 30, 2013

 

Ascendiant Capital Markets, LLC

18881 Von Karman, 16th Floor

Irvine, California 92612

 

Ladies and
Gentlemen:

 

MGT Capital Investments,
Inc., a corporation organized under the laws of Delaware (the “Company”), confirms its agreement (this “Agreement”)
with Ascendiant Capital Markets, LLC (the “Manager”) as follows:

 

1.           Definitions.
The terms that follow, when used in this Agreement and any Terms Agreement, shall have the meanings indicated.

 

“Accountants”
  shall have the meaning ascribed to such term in Section 4(m).

 

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

 

“Action”
shall have the meaning ascribed to such term in Section 3(q).

 

“Affiliate”
shall have the meaning ascribed to such term in Section 3(p).

 

“Applicable
Time” shall mean, with respect to any Shares, the time of sale of such Shares pursuant to this Agreement or any relevant
Terms Agreement.

 

“Base
Prospectus” shall mean the base prospectus contained in the Registration Statement at the Execution Time.

 

“Board”
shall have the meaning ascribed to such term in Section 2(b)(iii).

 

“Broker
Fee” shall have the meaning ascribed to such term in Section 2(b)(v).

 

“Business
Day” shall mean any day other than a Saturday, a Sunday or a legal holiday or a day on which banking institutions
or trust companies are authorized or obligated by law to close in New York City.

 

“Commission”
shall mean the Securities and Exchange Commission.

 

“Common
Stock” shall have the meaning ascribed to such term in Section 2.

 

    	 

    	 

    

 

“Common
Stock Equivalents” shall have the meaning ascribed to such term in Section 3(g).

 

“Company
Counsel” shall have the meaning ascribed to such term in Section 4(l).

 

“DTC”
shall have the meaning ascribed to such term in Section 2(b)(vii).

 

“Effective
Date” shall mean each date and time that the Registration Statement and any post-effective amendment or amendments thereto
became or becomes effective.

 

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

 

“Execution
Time” shall mean the date and time that this Agreement is executed and delivered by the parties hereto.

 

“Filing
Date” shall have the meaning ascribed to such term in Section 4(w).

 

“Free
Writing Prospectus” shall mean a free writing prospectus, as defined in Rule 405.

 

“GAAP”
shall have the meaning ascribed to such term in Section 3(n).

 

“Incorporated
Documents” shall mean the documents or portions thereof filed with the Commission on or before the Effective Date that
are incorporated by reference in the Registration Statement or the Prospectus and any documents or portions thereof filed with
the Commission after the Effective Date that are deemed to be incorporated by reference in the Registration Statement or the Prospectus.

 

“Intellectual
Property Rights” shall have the meaning ascribed to such term in Section 3(v).

 

“Issuer
Free Writing Prospectus” shall mean an issuer free writing prospectus, as defined in Rule 433.

 

“Losses”
shall have the meaning ascribed to such term in Section 7(d).

 

“Material
Adverse Effect” shall have the meaning ascribed to such term in Section 3(b).

 

    	2

    	 

    

 

“Material
Permits” shall have the meaning ascribed to such term in Section 3(t).

 

“Net
Proceeds” shall have the meaning ascribed to such term in Section 2(b)(v).

 

“Permitted
Free Writing Prospectus” shall have the meaning ascribed to such term in Section 4(g).

 

“Placement”
shall have the meaning ascribed to such term in Section 2(c).

 

“Proceeding”
shall have the meaning ascribed to such term in Section 3(b).

 

“Prospectus”
shall mean the Base Prospectus, as supplemented by the most recently filed Prospectus Supplement (if any).

 

“Prospectus
Supplement” shall mean the prospectus supplement relating to the Shares prepared and filed pursuant to Rule 424(b)
from time to time.

 

“Registration
Statement” shall mean the shelf registration statement (File Number 333-182298) on Form S-3, including exhibits
and financial statements and any prospectus supplement relating to the Shares that is filed with the Commission pursuant to Rule 424(b)
and deemed part of such registration statement pursuant to Rule 430B, as amended on each Effective Date and, in the event
any post-effective amendment thereto becomes effective, shall also mean such registration statement as so amended.

 

“Representation
Date” shall have the meaning ascribed to such term in Section 4(k).

 

“Required
Approvals” shall have the meaning ascribed to such term in Section 3(e).

 

“Rule 158”,
“Rule 163”, “Rule 164”, “Rule 172”, “Rule 173”,
“Rule 405”, “Rule 415”, “Rule 424”, “Rule 430B”
and “Rule 433” refer to such rules under the Act.

 

“Sales
Notice” shall have the meaning ascribed to such term in Section 2(b)(i).

 

“SEC
Reports” shall have the meaning ascribed to such term in Section 3(m).

 

“Settlement
Date” shall have the meaning ascribed to such term in Section 2(b)(vii).

 

    	3

    	 

    

 

“Subsidiary”
shall have the meaning ascribed to such term in Section 3(a).

 

“Terms
Agreement” shall have the meaning ascribed to such term in Section 2(a).

 

“Time
of Delivery” shall have the meaning ascribed to such term in Section 2(c).

 

“Trading
Market” means NYSE MKT.

 

2.           Sale
and Delivery of Shares. The Company proposes to issue and sell through or to the Manager, as sales agent and/or principal,
up to $8,500,000 of shares (the “Shares”) of the Company’s common stock, $0.001 par value (“Common
Stock”), from time to time during the term of this Agreement and on the terms set forth herein; provided, however,
that in no event shall the Company issue or sell through the Manager such number of Shares that (a) exceeds the number or dollar
amount of shares of Common Stock registered on the Registration Statement, pursuant to which the offering is being made, (b) exceeds
the number of authorized but unissued shares of Common Stock or (c) would cause the Company or the offering of the Shares to not
satisfy the eligibility and transaction requirements for use of Form S-3 (including, if applicable, General Instruction I.B.6 of
Registration Statement on Form S-3 (the lesser of (a), (b) and (c), the “Maximum Amount”)). Notwithstanding
anything to the contrary contained herein, the parties hereto agree that compliance with the limitations set forth in this Section
2 on the number and aggregate sales price of Shares issued and sold under this Agreement shall be the sole responsibility of the
Company and that Manager shall have no obligation in connection with such compliance.

 

(a)          Appointment
of Manager as Selling Agent; Terms Agreement. For purposes of selling the Shares through the Manager, the Company hereby appoints
the Manager as exclusive agent of the Company for the purpose of soliciting purchases of the Shares from the Company pursuant to
this Agreement and the Manager agrees to use its commercially reasonable efforts to sell the Shares on the terms and subject to
the conditions stated herein. The Company agrees that, whenever it determines to sell the Shares directly to the Manager as principal,
it will enter into a separate agreement (each, a “Terms Agreement”) in substantially the form of Annex I
hereto, relating to such sale in accordance with Section 2 of this Agreement.

 

(b)          Agent
Sales. Subject to the terms and conditions and in reliance upon the representations and warranties herein set forth, the Company
will issue and agrees to sell Shares from time to time through the Manager, acting as sales agent, and the Manager agrees to use
its commercially reasonable efforts to sell, as sales agent for the Company, on the following terms:

 

    	4

    	 

    

 

(i)          The
Shares are to be sold on a daily basis or otherwise as shall be agreed to by the Company and the Manager on any day that (A) is
a trading day for the Trading Market, (B) the Company has instructed the Manager by telephone (confirmed promptly by electronic
mail) to make such sales (“Sales Notice”) and (C) the Company has satisfied its obligations under Section 6
of this Agreement, provided that the deliveries required under Section 6 shall only be required to be made on the Execution Time
and on a Representation Date on which a material amendment to the Registration Statement or Prospectus is made or the Company files
its Annual Report on Form 10-K or a material amendment thereto under the Exchange Act. The Company will designate the maximum amount
of the Shares to be sold by the Manager daily (subject to the limitations set forth in Section 2(d)) and the minimum price per
Share at which such Shares may be sold which price per Share shall not be less than $2.50, subject to adjustment for reverse and
forward stock splits and the like. Subject to the terms and conditions hereof, the Manager shall use its commercially reasonable
efforts to sell on a particular day all of the Shares designated for the sale by the Company on such day. The gross sales price
of the Shares sold under this Section 2(b) shall be the market price for shares of the Company’s Common Stock sold by
the Manager under this Section 2(b) on the Trading Market at the time of sale of such Shares.

 

(ii)         The
Company acknowledges and agrees that (A) there can be no assurance that the Manager will be successful in selling the Shares,
(B) the Manager will incur no liability or obligation to the Company or any other person or entity if it does not sell the
Shares for any reason other than a failure by the Manager to use its commercially reasonable efforts consistent with its normal
trading and sales practices and applicable law and regulations to sell such Shares as required under this Agreement, and (C) the
Manager shall be under no obligation to purchase Shares on a principal basis pursuant to this Agreement, except as otherwise specifically
agreed by the Manager and the Company pursuant to a Terms Agreement.

 

(iii)        The
Company shall not authorize the issuance and sale of, and the Manager shall not be obligated to use its commercially reasonable
efforts to sell, any Share at a price lower than the minimum price therefor designated from time to time by the Company’s
Board of Directors (the “Board”), or a duly authorized committee thereof, or such duly authorized officers of
the Company, and notified to the Manager in writing. The Company or the Manager may, upon notice to the other party hereto by telephone
(confirmed promptly by electronic mail), suspend the offering of the Shares for any reason and at any time; provided, however,
that such suspension or termination shall not affect or impair the parties’ respective obligations with respect to the Shares
sold hereunder prior to the giving of such notice.

 

    	5

    	 

    

 

(iv)         The
Manager may sell Shares by any method permitted by law deemed to be an “at the market offering” as defined in Rule 415
under the Act, including without limitation sales made directly on the Trading Market, on any other existing trading market for
the Common Stock or to or through a market maker. The Manager may also sell Shares in privately negotiated transactions, provided
that the Manager receives the Company’s prior written approval for any sales in privately negotiated transactions.

 

(v)          The
compensation to the Manager for sales of the Shares under this Section 2(b) shall be a placement fee of 3% of the gross sales price
of the Shares sold pursuant to this Section 2(b) (“Broker Fee”). The foregoing rate of compensation shall not
apply when the Manager acts as principal, in which case the Company may sell Shares to the Manager as principal at a price agreed
upon at the relevant Applicable Time pursuant to a Terms Agreement. The remaining proceeds, after deduction of the Broker Fee and
deduction for any transaction fees imposed by any governmental or self-regulatory organization in respect of such sales, shall
constitute the net proceeds to the Company for such Shares (the “Net Proceeds”).

 

(vi)         The
Manager shall provide written confirmation (which may be by facsimile or electronic mail) to the Company following the close of
trading on the Trading Market each day in which the Shares are sold under this Section 2(b) setting forth the number of the Shares
sold on such day, the aggregate gross sales proceeds and the Net Proceeds to the Company, and the compensation payable by the Company
to the Manager with respect to such sales.

 

(vii)        Upon
delivery of a Sales Notice, the Company shall issue and deliver the maximum number of Shares to be sold pursuant to the Sales Notice
to the Manager’s account at The Depository Trust Company (“DTC”) via the DWAC system, which Shares shall
be deposited by the Manager in the Company’s account with the Manager. The Manager shall have no obligation to attempt to
sell the Shares until the Company has delivered the Shares to the Manager. Settlement for sales of the Shares pursuant to this
Section 2(b) will occur at 10:00 a.m. (New York City time), or at such time as the Company and the Manager may mutually agree,
on the third Business Day following delivery of the Shares issued pursuant to the Sale Notice (each such day, a “Settlement
Date”). On each Settlement Date, the Manager shall deliver the Net Proceeds from the sale of the Shares to the Company.
If on any Settlement Date not all Shares were sold as issued pursuant to the Sales Notice, then, at the election of and upon notice
from the Company, the Shares shall be applied to a future Settlement Date or returned to the Company.

 

    	6

    	 

    

 

(viii)      At
each Applicable Time, Settlement Date, Representation Date and Filing Date, the Company shall be deemed to have affirmed each representation
and warranty contained in this Agreement as if such representation and warranty were made as of such date, modified as necessary
to relate to the Registration Statement and the Prospectus as amended as of such date. Any obligation of the Manager to use its
commercially reasonable efforts to sell the Shares on behalf of the Company shall be subject to the continuing accuracy of the
representations and warranties of the Company herein, to the performance by the Company of its obligations hereunder and to the
continuing satisfaction of the additional conditions specified in Section 6 of this Agreement.

 

(c)          Term
Sales. If the Company wishes to sell the Shares pursuant to this Agreement but other than as set forth in Section 2(b) of this
Agreement (each, a “Placement”), it will notify the Manager of the proposed terms of such Placement. If the
Manager, acting as principal, wishes to accept such proposed terms (which it may decline to do for any reason in its sole discretion)
or, following discussions with the Company wishes to accept amended terms, the Manager and the Company will enter into a Terms
Agreement setting forth the terms of such Placement. The terms set forth in a Terms Agreement will not be binding on the Company
or the Manager unless and until the Company and the Manager have each executed such Terms Agreement accepting all of the terms
of such Terms Agreement. In the event of a conflict between the terms of this Agreement and the terms of a Terms Agreement, the
terms of such Terms Agreement will control. A Terms Agreement may also specify certain provisions relating to the reoffering of
such Shares by the Manager. The commitment of the Manager to purchase the Shares pursuant to any Terms Agreement shall be deemed
to have been made on the basis of the representations and warranties of the Company herein contained and shall be subject to the
terms and conditions herein set forth. Each Terms Agreement shall specify the number of the Shares to be purchased by the Manager
pursuant thereto, the price to be paid to the Company for such Shares, any provisions relating to rights of, and default by, underwriters
acting together with the Manager in the reoffering of the Shares, and the time and date (each such time and date being referred
to herein as a “Time of Delivery”) and place of delivery of and payment for such Shares. Such Terms Agreement
shall also specify any requirements for opinions of counsel, accountants’ letters and officers’ certificates pursuant
to Section 6 of this Agreement and any other information or documents required by the Manager.

 

    	7

    	 

    

 

(d)          Maximum
Number of Shares. Under no circumstances shall the Company cause or request the offer or sale of any Shares if, after giving
effect to the sale of such Shares, the aggregate amount of Shares sold pursuant to this Agreement would exceed the lesser of (A)
together with all sales of Shares under this Agreement, the Maximum Amount, (B) the amount available for offer and sale under the
currently effective Registration Statement and (C) the amount authorized from time to time to be issued and sold under this Agreement
by the Company’s board of directors, a duly authorized committee thereof or a duly authorized executive committee, and notified
to the Agent in writing. Under no circumstances shall the Company cause or request the offer or sale of any Placement Shares pursuant
to this Agreement at a price lower than the minimum price authorized from time to time by the Company’s board of directors,
a duly authorized committee thereof or a duly authorized executive committee, and notified to the Agent in writing. Further, under
no circumstances shall the Company cause or permit the aggregate offering amount of Placement Shares sold pursuant to this Agreement
to exceed the Maximum Amount.

 

(e)          Regulation
M Notice. Unless the exceptive provisions set forth in Rule 101(c)(1) of Regulation M under the Exchange Act are
satisfied with respect to the Shares, the Company shall give the Manager at least one Business Day’s prior notice of its
intent to sell any Shares in order to allow the Manager time to comply with Regulation M.

 

3.           Representations
and Warranties. The Company represents and warrants to, and agrees with, the Manager at the Execution Time and on each such
time the following representations and warranties are repeated or deemed to be made pursuant to this Agreement, as set forth below
or in the Registration Statement, the Prospectus or the Incorporated Documents.

 

(a)          Subsidiaries.
All of the direct and indirect subsidiaries (individually, a “Subsidiary”) of the Company are set forth on Exhibit
21.1 to the Company’s most recent Annual Report on Form 10-K filed with the Commission. The Company owns, directly or indirectly,
all of the capital stock or other equity interests of each Subsidiary free and clear of any “Liens” (which for
purposes of this Agreement shall mean a lien, charge, security interest, encumbrance, right of first refusal, preemptive right
or other restriction), and all the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are
fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities.

 

    	8

    	 

    

 

(b)          Organization
and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly
existing and in good standing under the laws of the jurisdiction of its incorporation or organization (as applicable), with the
requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither
the Company nor any Subsidiary is in violation or default of any of the provisions of its respective certificate or articles of
incorporation, bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified
to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of
the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified
or in good standing, as the case may be, could not reasonably be expected to result in (i) a material adverse effect on the legality,
validity or enforceability of this Agreement, (ii) a material adverse change in the results of operations, assets, business, prospects
or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, from that set forth in the Registration
Statement, the Base Prospectus, any Prospectus Supplement, the Prospectus or the Incorporated Documents, or (iii) a material adverse
effect on the Company’s ability to perform in any material respect on a timely basis its obligations under this Agreement
(any of (i), (ii) or (iii), a “Material Adverse Effect”) and no “Proceeding” (which for purposes
of this Agreement shall mean any action, claim, suit, investigation or proceeding (including, without limitation, an investigation
or partial proceeding, such as a deposition), whether commenced or threatened) has been instituted in any such jurisdiction revoking,
limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

 

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

 

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

 

    	9

    	 

    

 

(e)          Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other
“Person” (defined as an individual or corporation, partnership, trust, incorporated or unincorporated association,
joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity
of any kind, including the Trading Market) in connection with the execution, delivery and performance by the Company of this Agreement,
other than (i) the filings required by this Agreement, (ii) the filing with the Commission of the Prospectus Supplement, (iii)
the filing of application(s) to and approval by the Trading Market for the listing of the Shares for trading thereon in the time
and manner required thereby, and (iv) such filings as are required to be made under applicable state securities laws and the rules
and regulations of the Financial Industry Regulatory Authority, Inc. (“FINRA”) (collectively, the “Required
Approvals”).

 

(f)          Issuance
of Shares. The Shares are duly authorized and, when issued and paid for in accordance with this Agreement, will be duly and
validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company. The Company has reserved from
its duly authorized capital stock the maximum number of shares of Common Stock issuable pursuant to this Agreement. The issuance
by the Company of the Shares has been registered under the Act and all of the Shares are freely transferable and tradable by the
purchasers thereof without restriction (other than any restrictions arising solely from an act or omission of such a purchaser).
The Shares are being issued pursuant to the Registration Statement and the issuance of the Shares has been registered by the Company
under the Act. The “Plan of Distribution” section within the Registration Statement permits the issuance and
sale of the Shares as contemplated by this Agreement. Upon receipt of the Shares, the purchasers of such Shares will have good
and marketable title to such Shares and the Shares will be freely tradable on the Trading Market.

 

    	10

    	 

    

 

(g)          Capitalization.
The capitalization of the Company is as set forth in the Registration Statement, the Base Prospectus, the Prospectus Supplement
and the Prospectus. The Company has not issued any capital stock since its most recently filed periodic report under the Exchange
Act, other than pursuant to the exercise of employee stock options under the Company’s stock option plans, the issuance of
shares of Common Stock to employees pursuant to the Company’s employee stock purchase plan and pursuant to the conversion
or exercise of securities exercisable, exchangeable or convertible into Common Stock (“Common Stock Equivalents”).
No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the
transactions contemplated by this Agreement. Except (i) pursuant to the Company’s stock option plans, (ii) pursuant to agreements
or instruments filed as exhibits to Incorporated Documents or (iii) as disclosed in the SEC Reports, there are no outstanding options,
warrants, script rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or
obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire, any
shares of Common Stock, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or
may become bound to issue additional shares of Common Stock or Common Stock Equivalents. The issuance and sale of the Shares will
not obligate the Company to issue shares of Common Stock or other securities to any Person and will not result in a right of any
holder of Company securities to adjust the exercise, conversion, exchange or reset price under such securities. All of the outstanding
shares of capital stock of the Company are validly issued, fully paid and nonassessable, have been issued in compliance with all
federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar
rights to subscribe for or purchase securities. There are no stockholders agreements, voting agreements or other similar agreements
with respect to the Company’s capital stock to which the Company is a party or, to the knowledge of the Company, between
or among any of the Company’s stockholders.

 

(h)          Registration
Statement. The Company meets the requirements for use of Form S-3 under the Act and has prepared and filed with the Commission
the Registration Statement, including a related Base Prospectus, for registration under the Act of the offering and sale of the
Shares. Such Registration Statement is effective and available for the offer and sale of the Shares as of the date hereof. As filed,
the Base Prospectus contains all information required by the Act and the rules thereunder, and, except to the extent the Manager
shall agree in writing to a modification, shall be in all substantive respects in the form furnished to the Manager prior to the
Execution Time or prior to any such time this representation is repeated or deemed to be made. The Registration Statement, at the
Execution Time, each such time this representation is repeated or deemed to be made, and at all times during which a prospectus
is required by the Act to be delivered (whether physically or through compliance with Rule 172, 173 or any similar rule) in
connection with any offer or sale of the Shares, meets the requirements set forth in Rule 415(a)(1)(x). The initial Effective
Date of the Registration Statement was not earlier than the date three years before the Execution Time.

 

    	11

    	 

    

 

(i)          Accuracy
of Incorporated Documents. The Incorporated Documents, when they were filed with the Commission, conformed in all material
respects to the requirements of the Exchange Act and the rules thereunder, and none of the Incorporated Documents, when they were
filed with the Commission, contained any untrue statement of a material fact or omitted to state a material fact necessary to make
the statements therein, in light of the circumstances under which they were made not misleading; and any further documents so filed
and incorporated by reference in the Registration Statement, the Base Prospectus, the Prospectus Supplement or the Prospectus,
when such documents are filed with the Commission, will conform in all material respects to the requirements of the Exchange Act
and the rules thereunder, as applicable, and will not contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

 

(j)          Ineligible
Issuer. (i) At the earliest time after the filing of the Registration Statement that the Company or another offering participant
made a bona fide offer (within the meaning of Rule 164(h)(2)) of the Shares and (ii) as of the Execution Time and on
each such time this representation is repeated or deemed to be made (with such date being used as the determination date for purposes
of this clause (ii)), the Company was not and is not an Ineligible Issuer (as defined in Rule 405), without taking account
of any determination by the Commission pursuant to Rule 405 that it is not necessary that the Company be considered an Ineligible
Issuer.

 

(k)          [RESERVED]

 

(l)           Proceedings
Related to Registration Statement. The Registration Statement is not the subject of a pending proceeding or examination under
Section 8(d) or 8(e) of the Act, and the Company is not the subject of a pending proceeding under Section 8A of the Act
in connection with the offering of the Shares. The Company has not received any notice that the Commission has issued or intends
to issue a stop-order with respect to the Registration Statement or that the Commission otherwise has suspended or withdrawn the
effectiveness of the Registration Statement, either temporarily or permanently, or intends or has threatened in writing to do so.

 

(m)         SEC
Reports. The Company has complied in all material respects with requirements to file all reports, schedules, forms, statements
and other documents required to be filed by it under the Act and the Exchange Act, including pursuant to Section 13(a) or 15(d)
thereof, for the two years preceding the date hereof (or such shorter period as the Company was required by law to file such material)
(the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred
to herein as the “SEC Reports”) on a timely basis or has received a valid extension of such time of filing and
has filed any such SEC Reports prior to the expiration of any such extension.

 

    	12

    	 

    

 

(n)          Financial
Statements. The consolidated financial statements incorporated by reference in the Registration Statement, the Prospectus or
the Incorporated Documents and any amendments thereof or supplements thereto comply in all material respects with applicable accounting
requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing or as amended
or corrected in a subsequent filing. Such financial statements have been prepared in accordance with United States generally accepted
accounting principles applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise
specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all
footnotes required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated
subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject,
in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.

 

(o)         
Accountants. The Company’s accountants are Marcum LLP. To the knowledge of the Company, such accountants, who the
Company expects will express their opinion with respect to the financial statements to be included in the Company’s next
Annual Report on Form 10-K, are a registered public accounting firm as required by the Act.

 

(p)          Material
Adverse Events. Since the date of the latest audited financial statements included within the SEC Reports, except as specifically
disclosed in a subsequent SEC Report filed prior to the date hereof, (i) there has been no event, occurrence or development that
has had or that could reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any liabilities
(contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent
with past practice and (B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP
or required to be disclosed in filings made with the Commission, (iii) the Company has not altered its method of accounting, (iv)
the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed
or made any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued any equity securities
to any officer, director or “Affiliate” (defined as any Person that, directly or indirectly through one or more
intermediaries, controls or is controlled by or is under common control with a Person, as such terms are used in and construed
under Rule 144 under the Act), except pursuant to existing Company stock option plans. The Company does not have pending before
the Commission any request for confidential treatment of information. No event, liability or development has occurred or exists
with respect to the Company or its Subsidiaries or their respective business, properties, operations or financial condition, that
would be required to be disclosed by the Company under applicable securities laws at the time this representation is deemed made
that has not been publicly disclosed at least 1 Trading Day prior to the date that this representation is deemed made.

 

    	13

    	 

    

 

(q)          Litigation.
There is no action, suit, inquiry, notice of violation, Proceeding or investigation pending or, to the knowledge of the Company,
threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator,
governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”)
which (i) adversely affects or challenges the legality, validity or enforceability of this Agreement or the Shares or (ii) could,
if there were an unfavorable decision, reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any
Subsidiary, nor, to the knowledge of the Company, any director or officer thereof, is or has been the subject of any Action involving
a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty. There has not
been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission involving
the Company or any current or former director or officer of the Company. The Commission has not issued any stop order or other
order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange Act
or the Act. None of the Company’s or its Subsidiaries’ employees is a member of a union that relates to such employee’s
relationship with the Company, and neither the Company nor any of its Subsidiaries is a party to a collective bargaining agreement,
and the Company and its Subsidiaries believe that their relationships with their employees are good. No executive officer, to the
knowledge of the Company, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality,
disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive
covenant, and the continued employment of each such executive officer does not subject the Company or any of its Subsidiaries to
any liability with respect to any of the foregoing matters. The Company and its Subsidiaries are in compliance with all U.S. federal,
state, local and foreign laws and regulations relating to employment and employment practices, terms and conditions of employment
and wages and hours, except where the failure to be in compliance could not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect.

 

(r)          Labor
Relations. No material labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees
of the Company which could reasonably be expected to result in a Material Adverse Effect.

 

    	14

    	 

    

 

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

 

(t)          Regulatory
Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the Registration
Statement, the Base Prospectus, any Prospectus Supplement or the Prospectus, except where the failure to possess such permits could
not reasonably be expected to result in a Material Adverse Effect (“Material Permits”), and neither the Company
nor any Subsidiary has received any notice of proceedings relating to the revocation or modification of any Material Permit. For
clarity, the Company has not received the approval of any regulatory agency to market any of its product candidates.

 

(u)          Title
to Assets. The Company and the Subsidiaries have good and marketable title in fee simple to all real property owned by them
that is material to the business of the Company and the Subsidiaries and good and marketable title in all personal property owned
by them that is material to the business of the Company and the Subsidiaries, in each case free and clear of all Liens, except
for Liens as do not materially affect the value of such property and do not materially interfere with the use made and proposed
to be made of such property by the Company and the Subsidiaries and Liens for the payment of federal, state or other taxes, the
payment of which is neither delinquent nor subject to penalties. Any real property and facilities held under lease by the Company
and the Subsidiaries are held by them under valid, subsisting and enforceable leases of which the Company and the Subsidiaries
are in compliance, except where such non-compliance would not reasonably be expected to have a Material Adverse Effect.

 

(v)          Intellectual
Property. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark
applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other similar intellectual property
rights necessary or material for use in connection with their respective businesses as described in the Registration Statement,
the Base Prospectus, any Prospectus Supplement or the Prospectus and which the failure to so have could reasonably be expected
to have a Material Adverse Effect (collectively, the “Intellectual Property Rights”). Neither the Company nor
any Subsidiary has received, since the date of the latest audited financial statements included within the SEC Reports, a notice
(written or otherwise) that the Intellectual Property Rights violate or infringe upon the rights of any Person, except as would
not have a Material Adverse Effect. To the knowledge of the Company, all such Intellectual Property Rights are enforceable (other
than patent and trademark applications) and there is no existing infringement by another Person of any of the Intellectual Property
Rights. The Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value
of all of their Intellectual Property Rights, except where failure to do so could not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect.

 

    	15

    	 

    

 

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

 

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

 

(y)          Sarbanes
Oxley Compliance. Except as disclosed in the Registration Statement, the Base Prospectus, any Prospectus Supplement or the
Prospectus, the Company is in material compliance with all provisions of the Sarbanes-Oxley Act of 2002 which are applicable to
it as of the Effective Date.

 

    	16

    	 

    

 

(z)          Finder’s
Fees. Other than payments to be made to the Manager, no brokerage or finder’s fees or commissions are or will be payable
by the Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person
with respect to the transactions contemplated by this Agreement. The Manager shall have no obligation with respect to any fees
or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section that may be
due in connection with the transactions contemplated by this Agreement.

 

(aa)         No
Other Sales Agency Agreement. The Company has not entered into any other sales agency agreements or other similar arrangements
with any agent or any other representative in respect of at the market offerings of the Shares.

 

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

 

(cc)         Listing
and Maintenance Requirements. The issuance and sale of the Shares as contemplated in this Agreement does not contravene the
rules and regulations of the Trading Market. The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange
Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the
registration of the Common Stock under the Exchange Act nor has the Company received any notification that the Commission is contemplating
terminating such registration. Except as disclosed in the Registration Statement, the Base Prospectus, any Prospectus Supplement
or the Prospectus, the Company has not, in the 12 months preceding the date hereof, received notice from any Trading Market on
which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance with the listing or
maintenance requirements of such Trading Market.

 

(dd)         Application
of Takeover Protections. Except as set forth in the Registration Statement, the Base Prospectus, any Prospectus Supplement
or the Prospectus, the Company and its Board have taken all necessary action, if any, in order to render inapplicable any control
share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover
provision under the Company’s Certificate of Incorporation (or similar charter documents) or the laws of its state of incorporation
that is or could become applicable to the purchasers of the Shares.

 

    	17

    	 

    

 

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

 

(ff)         [RESERVED]

 

(gg)        Tax
Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a
Material Adverse Effect, the Company and each Subsidiary have filed all necessary federal, state and foreign income and franchise
tax returns and have paid or accrued all taxes shown as due thereon, and the Company has no knowledge of a tax deficiency which
has been asserted or threatened against the Company or any Subsidiary.

 

(hh)         Foreign
Corrupt Practices. Neither the Company, nor to the knowledge of the Company, any agent or other person acting on behalf of
the Company, has (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful
expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government officials
or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully
any contribution made by the Company (or made by any person acting on its behalf of which the Company is aware) which is in violation
of law, or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended.

 

(ii)         FINRA
Member Shareholders. To the knowledge of the Company, there are no affiliations with any FINRA member firm among the Company’s
officers, directors or any five percent (5%) or greater stockholder of the Company, except as set forth in the Registration Statement,
the Base Prospectus, any Prospectus Supplement or the Prospectus.

 

    	18

    	 

    

 

4.           Agreements.
The Company agrees with the Manager that:

 

(a)          Right
to Review Amendments and Supplements to Registration Statement and Prospectus. During any period when the delivery of a prospectus
relating to the Shares is required (including in circumstances where such requirement may be satisfied pursuant to Rule 172,
173 or any similar rule) to be delivered under the Act in connection with the offering or the sale of Shares, the Company will
not file any amendment to the Registration Statement or supplement (including any Prospectus Supplement) to the Base Prospectus
unless the Company has furnished to the Manager a copy for its review prior to filing and will not file any such proposed amendment
or supplement to which the Manager reasonably objects. The Company has properly completed the Prospectus, in a form approved by
the Manager, and filed such Prospectus, as amended at the Execution Time, with the Commission pursuant to the applicable paragraph
of Rule 424(b) by the Execution Time and will cause any supplement to the Prospectus to be properly completed, in a form approved
by the Manager, and will file such supplement with the Commission pursuant to the applicable paragraph of Rule 424(b) within
the time period prescribed thereby and will provide evidence reasonably satisfactory to the Manager of such timely filing. The
Company will promptly advise the Manager (i) when the Prospectus, and any supplement thereto, shall have been filed (if required)
with the Commission pursuant to Rule 424(b), (ii) when, during any period when the delivery of a prospectus (whether
physically or through compliance with Rule 172, 173 or any similar rule) is required under the Act in connection with the
offering or sale of the Shares, any amendment to the Registration Statement shall have been filed or become effective (other than
any annual report of the Company filed pursuant to Section 13(a) or 15(d) of the Exchange Act), (iii) of any request by the
Commission or its staff for any amendment of the Registration Statement, or any Rule 462(b) Registration Statement, or for
any supplement to the Prospectus or for any additional information, (iv) of the issuance by the Commission of any stop order
suspending the effectiveness of the Registration Statement or of any notice objecting to its use or the institution or threatening
of any proceeding for that purpose and (v) of the receipt by the Company of any notification with respect to the suspension
of the qualification of the Shares for sale in any jurisdiction or the institution or threatening of any proceeding for such purpose.
The Company will use its best efforts to prevent the issuance of any such stop order or the occurrence of any such suspension or
objection to the use of the Registration Statement and, upon such issuance, occurrence or notice of objection, to obtain as soon
as possible the withdrawal of such stop order or relief from such occurrence or objection, including, if necessary, by filing an
amendment to the Registration Statement or a new registration statement and using its best efforts to have such amendment or new
registration statement declared effective as soon as practicable.

 

(b)          Subsequent
Events. If, at any time on or after an Applicable Time but prior to the related Settlement Date, any event occurs as a result
of which the Registration Statement or Prospectus would include any untrue statement of a material fact or omit to state any material
fact necessary to make the statements therein in the light of the circumstances under which they were made or the circumstances
then prevailing not misleading, the Company will (i) notify promptly the Manager so that any use of the Registration Statement
or Prospectus may cease until such are amended or supplemented; (ii) amend or supplement the Registration Statement or Prospectus
to correct such statement or omission; and (iii) supply any amendment or supplement to the Manager in such quantities as the
Manager may reasonably request.

 

    	19

    	 

    

 

(c)          Notification
of Subsequent Filings. During any period when the delivery of a prospectus relating to the Shares is required (including in
circumstances where such requirement may be satisfied pursuant to Rule 172, 173 or any similar rule) to be delivered under
the Act, any event occurs as a result of which the Prospectus as then supplemented would include any untrue statement of a material
fact or omit to state any material fact necessary to make the statements therein in the light of the circumstances under which
they were made at such time not misleading, or if it shall be necessary to amend the Registration Statement, file a new registration
statement or supplement the Prospectus to comply with the Act or the Exchange Act or the respective rules thereunder, including
in connection with use or delivery of the Prospectus, the Company promptly will (i) notify the Manager of any such event,
(ii) subject to Section 4(a), prepare and file with the Commission an amendment or supplement or new registration statement
which will correct such statement or omission or effect such compliance, (iii) use its best efforts to have any amendment
to the Registration Statement or new registration statement declared effective as soon as practicable in order to avoid any disruption
in use of the Prospectus and (iv) supply any supplemented Prospectus to the Manager in such quantities as the Manager may
reasonably request.

 

(d)          Earnings
Statements. As soon as practicable, the Company will make generally available to its security holders and to the Manager an
earnings statement or statements of the Company and its Subsidiaries which will satisfy the provisions of Section 11(a) of
the Act and Rule 158.

 

(e)          Delivery
of Registration Statement. Upon the request of the Manager, the Company will furnish to the Manager and counsel for the Manager,
without charge, signed copies of the Registration Statement (including exhibits thereto) and, so long as delivery of a prospectus
by the Manager or dealer may be required by the Act (including in circumstances where such requirement may be satisfied pursuant
to Rule 172, 173 or any similar rule), as many copies of the Prospectus and each Issuer Free Writing Prospectus and any supplement
thereto as the Manager may reasonably request. The Company will pay the expenses of printing or other production of all documents
relating to the offering.

 

(f)          Qualification
of Shares. The Company will arrange, if necessary, for the qualification of the Shares for sale under the laws of such jurisdictions
as the Manager may designate and will maintain such qualifications in effect so long as required for the distribution of the Shares;
provided that in no event shall the Company be obligated to qualify to do business in any jurisdiction where it is not now so qualified
or to take any action that would subject it to service of process in suits, other than those arising out of the offering or sale
of the Shares, in any jurisdiction where it is not now so subject.

 

(g)          Free
Writing Prospectus. The Company agrees that, unless it has or shall have obtained the prior written consent of the Manager,
and the Manager agrees with the Company that, unless it has or shall have obtained, as the case may be, the prior written consent
of the Company, it has not made and will not make any offer relating to the Shares that would constitute an Issuer Free Writing
Prospectus or that would otherwise constitute a “free writing prospectus” (as defined in Rule 405) required to
be filed by the Company with the Commission or retained by the Company under Rule 433. Any such free writing prospectus consented
to by the Manager or the Company is hereinafter referred to as a “Permitted Free Writing Prospectus.” The Company
agrees that (i) it has treated and will treat, as the case may be, each Permitted Free Writing Prospectus as an Issuer Free
Writing Prospectus and (ii) it has complied and will comply, as the case may be, with the requirements of Rules 164 and
433 applicable to any Permitted Free Writing Prospectus, including in respect of timely filing with the Commission, legending and
record keeping.

 

    	20

    	 

    

 

(h)          Subsequent
Equity Issuances. Neither the Company nor any Subsidiary will offer, sell, issue, contract to sell, contract to issue or otherwise
dispose of, directly or indirectly, any other shares of Common Stock or any Common Stock Equivalents (other than the Shares) during
the term of this Agreement (i) without giving the Manager at least three Business Days’ prior written notice specifying
the nature of the proposed transaction and the date of such proposed transaction and (ii) unless the Manager suspends acting
under this Agreement for such period of time requested by the Company or as deemed appropriate by the Manager in light of the proposed
transaction; provided, however, that the Company may issue and sell Common Stock pursuant to any employee stock option
plan, stock ownership plan or dividend reinvestment plan of the Company in effect at the Execution Time and, with as much notice
as reasonably practicable, the Company may issue Common Stock issuable upon the conversion or exercise of Common Stock Equivalents
outstanding at the Execution Time.

 

(i)          Market
Manipulation. Until the termination of this Agreement, the Company will not take, directly or indirectly, any action designed
to or that would constitute or that might reasonably be expected to cause or result in, under the Exchange Act or otherwise, stabilization
or manipulation in violation of the Act, Exchange Act or the rules and regulations thereunder of the price of any security of the
Company to facilitate the sale or resale of the Shares or otherwise violate any provision of Regulation M under the Exchange Act.

 

(j)          Notification
of Incorrect Certificate. The Company will, at any time during the term of this Agreement, as supplemented from time to time,
advise the Manager immediately after it shall have received notice or obtained knowledge thereof, of any information or fact that
would alter or affect any opinion, certificate, letter and other document provided to the Manager pursuant to Section 6 herein.

 

    	21

    	 

    

 

(k)          Certification
of Accuracy of Disclosure. Upon commencement of the offering of the Shares under this Agreement (and upon the recommencement
of the offering of the Shares under this Agreement following the termination of a suspension of sales hereunder lasting more than
30 trading days), and each time that (i) the Registration Statement or Prospectus shall be amended or supplemented, other than
by means of Incorporated Documents, (ii) the Company files its Annual Report on Form 10-K under the Exchange Act, (iii) the Company
files its quarterly reports on Form 10-Q under the Exchange Act, (iv) the Company files a Current Report on Form 8-K containing
amended financial information (other than information that is furnished and not filed), if the Manager reasonably determines that
the information in such Form 8-K is material, or (v) the Shares are delivered to the Manager as principal at the Time of Delivery
pursuant to a Terms Agreement (such commencement or recommencement date and each such date referred to in (i), (ii), (iii), (iv)
and (v) above, a “Representation Date”), unless waived by the Manager, the Company shall furnish or cause to
be furnished to the Manager forthwith a certificate dated and delivered on the Representation Date, in form reasonably satisfactory
to the Manager to the effect that the statements contained in the certificate referred to in Section 6 of this Agreement which
were last furnished to the Manager are true and correct at the Representation Date, as though made at and as of such date (except
that such statements shall be deemed to relate to the Registration Statement and the Prospectus as amended and supplemented to
such date) or, in lieu of such certificate, a certificate of the same tenor as the certificate referred to in said Section 6, modified
as necessary to relate to the Registration Statement and the Prospectus as amended and supplemented to the date of delivery of
such certificate.

 

(l)          Bring
Down Opinions; Negative Assurance. At each Representation Date, unless waived by the Manager, the Company shall furnish or
cause to be furnished forthwith to the Manager and to counsel to the Manager a written opinion of counsel to the Company (“Company
Counsel”) addressed to the Manager and dated and delivered on such Representation Date, in form and substance reasonably
satisfactory to the Manager, including a negative assurance representation.

 

(m)         Auditor
Bring Down “Comfort” Letter. At each Representation Date, unless waived by the Manager, the Company shall cause
(1) the Company’s auditors (the “Accountants”), or other independent accountants satisfactory to
the Manager forthwith to furnish the Manager a letter, and (2) the Chief Financial Officer of the Company forthwith to furnish
the Manager a certificate, in each case dated on such Representation Date, in form satisfactory to the Manager, of the same tenor
as the letters and certificate referred to in Section 6 of this Agreement but modified to relate to the Registration Statement
and the Prospectus, as amended and supplemented to the date of such letters and certificate; provided, however, that
the Company will not be required to cause the Accountants to furnish such letters to the Manager in connection with the filing
of a Current Report on Form 8-K unless (i) such Current Report on Form 8-K is filed at any time during which a prospectus
relating to the Shares is required to be delivered under the Act and (ii) the Manager has requested such letter based upon
the event or events reported in such Current Report on Form 8-K.

 

    	22

    	 

    

 

(n)          Due
Diligence Session. Upon commencement of the offering of the Shares under this Agreement (and upon the recommencement of the
offering of the Shares under this Agreement following the termination of a suspension of sales hereunder lasting more than 30 trading
days), and at each Representation Date, the Company will conduct a due diligence session, in form and substance, reasonably satisfactory
to the Manager, which shall include representatives of management and Accountants. The Company shall cooperate timely with any
reasonable due diligence request from or review conducted by the Manager or its agents from time to time in connection with the
transactions contemplated by this Agreement, including, without limitation, providing information and available documents and access
to appropriate corporate officers and the Company’s agents during regular business hours and at the Company’s principal
offices, and timely furnishing or causing to be furnished such certificates, letters and opinions from the Company, its officers
and its agents, as the Manager may reasonably request. The Company shall reimburse the Manager for Manager’s counsel’s
time in each such due diligence update session, up to a maximum of $5,000 per update, plus any incidental expense incurred by the
Manager in connection therewith.

 

(o)          Acknowledgment
of Trading. The Company consents to the Manager trading in the Common Stock for the Manager’s own account and for the
account of its clients at the same time as sales of the Shares occur pursuant to this Agreement or pursuant to a Terms Agreement.

 

(p)          Disclosure
of Shares Sold. The Company will disclose in its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q,
as applicable, the number of Shares sold through the Manager under this Agreement, the Net Proceeds to the Company and the compensation
paid by the Company with respect to sales of Shares pursuant to this Agreement during the relevant quarter.

 

(q)          Rescission
Right. If to the knowledge of the Company, the conditions set forth in Section 6 shall not have been satisfied as of the applicable
Settlement Date, the Company will offer to any person who has agreed to purchase Shares from the Company as the result of an offer
to purchase solicited by the Manager the right to refuse to purchase and pay for such Shares.

 

(r)          Bring
Down of Representations and Warranties. Each acceptance by the Company of an offer to purchase the Shares hereunder, and each
execution and delivery by the Company of a Terms Agreement, shall be deemed to be an affirmation to the Manager that the representations
and warranties of the Company contained in or made pursuant to this Agreement are true and correct as of the date of such acceptance
or of such Terms Agreement as though made at and as of such date, and an undertaking that such representations and warranties will
be true and correct as of the Settlement Date for the Shares relating to such acceptance or as of the Time of Delivery relating
to such sale, as the case may be, as though made at and as of such date (except that such representations and warranties shall
be deemed to relate to the Registration Statement and the Prospectus as amended and supplemented relating to such Shares).

 

    	23

    	 

    

 

(s)          Reservation
of Shares. The Company shall ensure that there are at all times sufficient shares of Common Stock to provide for the issuance,
free of any preemptive rights, out of its authorized but unissued shares of Common Stock or shares of Common Stock held in treasury,
of the maximum aggregate number of Shares authorized for issuance by the Board pursuant to the terms of this Agreement. The Company
will use its commercially reasonable efforts to cause the Shares to be listed for trading on the Trading Market and to maintain
such listing.

 

(t)          Obligation
Under Exchange Act. During any period when the delivery of a prospectus relating to the Shares is required (including in circumstances
where such requirement may be satisfied pursuant to Rule 172, 173 or any similar rule) to be delivered under the Act, the
Company will file all documents required to be filed with the Commission pursuant to the Exchange Act within the time periods required
by the Exchange Act and the regulations thereunder.

 

(u)          DTC
Facility. The Company shall cooperate with Manager and use its reasonable efforts to permit the Shares to be eligible for clearance
and settlement through the facilities of DTC.

 

(v)          Use
of Proceeds. The Company will apply the Net Proceeds from the sale of the Shares in the manner set forth in the Prospectus.

 

(w)         Filing
of Prospectus Supplement. On such dates as the Securities Act shall require disclosure of sales of Shares by the Manager pursuant
to Section 2(b) of this Agreement (each such date, a “Filing Date”), the Company will file a prospectus supplement
with the Commission under the applicable paragraph of Rule 424(b), which prospectus supplement will set forth, with regard
to such quarter, the number of the Shares sold through the Manager as agent pursuant to Section 2(b) of this Agreement, the Net
Proceeds to the Company and the compensation paid by the Company with respect to such sales of the Shares pursuant to Section 2(b)
of this Agreement and deliver such number of copies of each such prospectus supplement to the Trading Market as are required by
such exchange.

 

(x)          Additional
Registration Statement. To the extent that the Registration Statement is not available for the sales of the Shares as contemplated
by this Agreement (other than as a result of reaching the limitation set forth in General Instruction I.B.6. of Form S-3), the
Company shall file a new registration statement with respect to any additional shares of Common Stock necessary to complete such
sales of the Shares and shall cause such registration statement to become effective as promptly as practicable. After the effectiveness
of any such registration statement, all references to “Registration Statement” included in this Agreement shall
be deemed to include such new registration statement, including all documents incorporated by reference therein pursuant to Item 12
of Form S-3, and all references to “Base Prospectus” included in this Agreement shall be deemed to include the
final form of prospectus, including all documents incorporated therein by reference, included in any such registration statement
at the time such registration statement became effective.

 

    	24

    	 

    

 

5.           Payment
of Expenses. The Company agrees to pay the costs and expenses incident to the performance of its obligations under this Agreement,
whether or not the transactions contemplated hereby are consummated, including without limitation: (i) the preparation, printing
or reproduction and filing with the Commission of the Registration Statement (including financial statements and exhibits thereto),
the Prospectus and each Issuer Free Writing Prospectus, and each amendment or supplement to any of them; (ii) the printing
(or reproduction) and delivery (including postage, air freight charges and charges for counting and packaging) of such copies of
the Registration Statement, the Prospectus, and each Issuer Free Writing Prospectus, and all amendments or supplements to any of
them, as may, in each case, be reasonably requested for use in connection with the offering and sale of the Shares; (iii) the
preparation, printing, authentication, issuance and delivery of certificates for the Shares, including any stamp or transfer taxes
in connection with the original issuance and sale of the Shares; (iv) the printing (or reproduction) and delivery of this
Agreement, any blue sky memorandum and all other agreements or documents printed (or reproduced) and delivered in connection with
the offering of the Shares; (v) the registration of the Shares under the Exchange Act, if applicable, and the listing of the
Shares on the Trading Market; (vi) any registration or qualification of the Shares for offer and sale under the securities
or blue sky laws of the several states (including filing fees and the reasonable fees and expenses of counsel for the Manager relating
to such registration and qualification); (vii) the transportation and other expenses incurred by or on behalf of Company representatives
in connection with presentations to prospective purchasers of the Shares; (viii) the fees and expenses of the Company’s
accountants and the fees and expenses of counsel (including local and special counsel) for the Company; (ix) the filing fee under
FINRA Rule 5110; (x) the customary trading expenses, including, without limitation, the execution, ticket and clearing charges,
of the Manager in connection with the sale of the Shares hereunder; (xi) the reasonable fees and expenses of the Manager’s
counsel, not to exceed $25,000 (excluding any periodic due diligence fees provided for under Section 4(n)); (xii) initial non-accountable
due diligence fees of the Manager in the amount of $45,000; and (xiii) all other costs and expenses incident to the performance
by the Company of its obligations hereunder.

 

6.           Conditions
to the Obligations of the Manager. The obligations of the Manager under this Agreement and any Terms Agreement shall be subject
to (i) the accuracy of the representations and warranties on the part of the Company contained herein as of the Execution
Time, each Representation Date, and as of each Applicable Time, Settlement Date and Time of Delivery, (ii) to the performance
by the Company of its obligations hereunder and (iii) the following additional conditions:

 

    	25

    	 

    

 

(a)          Filing
of Prospectus Supplement. The Prospectus, and any supplement thereto, required by Rule 424 to be filed with the Commission
have been filed in the manner and within the time period required by Rule 424(b) with respect to any sale of Shares; each
Prospectus Supplement shall have been filed in the manner required by Rule 424(b) within the time period required hereunder
and under the Act; any other material required to be filed by the Company pursuant to Rule 433(d) under the Act, shall have
been filed with the Commission within the applicable time periods prescribed for such filings by Rule 433; and no stop order
suspending the effectiveness of the Registration Statement or any notice objecting to its use shall have been issued and no proceedings
for that purpose shall have been instituted or threatened.

 

(b)          Delivery
of Opinion. The Company shall have caused the Company Counsel to furnish to the Manager, requested by the Manager and upon
reasonable advance notice in connection with any offering of the Shares, its opinion and negative assurance statement, dated as
of such date and addressed to the Manager in form and substance acceptable to the Manager.

 

(c)          Delivery
of Officer’s Certificate. The Company shall have furnished or caused to be furnished to the Manager, to the extent requested
by the Manager and upon reasonable advance notice in connection with any offering of the Shares, a certificate of the Company signed
by the Chief Executive Officer or the President and the principal financial or accounting officer of the Company, dated as of such
date, to the effect that the signers of such certificate have carefully examined the Registration Statement, the Prospectus, any
Prospectus Supplement and any documents incorporated by reference therein and any supplements or amendments thereto and this Agreement
and that:

 

(i)          the
representations and warranties of the Company in this Agreement are true and correct on and as of such date with the same effect
as if made on such date and the Company has complied with all the agreements and satisfied all the conditions on its part to be
performed or satisfied at or prior to such date;

 

(ii)         no
stop order suspending the effectiveness of the Registration Statement or any notice objecting to its use has been issued and no
proceedings for that purpose have been instituted or, to the Company’s knowledge, threatened; and

 

(iii)        since
the date of the most recent financial statements included in the Registration Statement, the Prospectus and the Incorporated Documents,
there has been no Material Adverse Effect on the condition (financial or otherwise), earnings, business or properties of the Company
and its subsidiaries, taken as a whole, whether or not arising from transactions in the ordinary course of business, except as
set forth in or contemplated in the Registration Statement and the Prospectus.

 

    	26

    	 

    

 

(d)          Delivery
of Accountants’ “Comfort” Letter. The Company shall have requested and caused the Accountants to have furnished
to the Manager, to the extent requested by the Manager and upon reasonable advance notice in connection with any offering of the
Shares, letters (which may refer to letters previously delivered to the Manager), dated as of such date, in form and substance
satisfactory to the Manager, confirming that they are independent accountants within the meaning of the Act and the Exchange Act
and the respective applicable rules and regulations adopted by the Commission thereunder and that they have performed a review
of any unaudited interim financial information of the Company and included or incorporated by reference in the Registration Statement
and the Prospectus and provide customary “comfort” as to such review in form and substance satisfactory to the Manager.

 

(e)          No
Material Adverse Event. Since the respective dates as of which information is disclosed in the Registration Statement, the
Prospectus and the Incorporated Documents, except as otherwise stated therein, there shall not have been (i) any change or
decrease in previously reported results specified in the letter or letters referred to in paragraph (d) of this Section 6
or (ii) any change, or any development involving a prospective change, in or affecting the condition (financial or otherwise),
earnings, business or properties of the Company and its subsidiaries taken as a whole, whether or not arising from transactions
in the ordinary course of business, except as set forth in or contemplated in the Registration Statement, the Prospectus and the
Incorporated Documents (exclusive of any amendment or supplement thereto) the effect of which, in any case referred to in clause (i)
or (ii) above, is, in the sole judgment of the Manager, so material and adverse as to make it impractical or inadvisable to
proceed with the offering or delivery of the Shares as contemplated by the Registration Statement (exclusive of any amendment thereof),
the Incorporated Documents and the Prospectus (exclusive of any amendment or supplement thereto).

 

(f)          Payment
of All Fees. The Company shall have paid the required Commission filing fees relating to the Shares within the time period
required by Rule 456(b)(1)(i) of the Act without regard to the proviso therein and otherwise in accordance with Rules 456(b)
and 457(r) of the Act and, if applicable, shall have updated the “Calculation of Registration Fee” table in accordance
with Rule 456(b)(1)(ii) either in a post-effective amendment to the Registration Statement or on the cover page of a
prospectus filed pursuant to Rule 424(b).

 

(g)          No
FINRA Objections. FINRA shall not have raised any objection with respect to the fairness and reasonableness of the terms and
arrangements under this Agreement.

 

(h)          Shares
Listed on Trading Market. The Shares shall have been listed and admitted and authorized for trading on the Trading Market,
and satisfactory evidence of such actions shall have been provided to the Manager.

 

(i)          Other
Assurances. Prior to each Settlement Date and Time of Delivery, as applicable, the Company shall have furnished to the Manager
such further information, certificates and documents as the Manager may reasonably request.

 

    	27

    	 

    

 

If any of the conditions
specified in this Section 6 shall not have been fulfilled when and as provided in this Agreement, or if any of the opinions and
certificates mentioned above or elsewhere in this Agreement shall not be reasonably satisfactory in form and substance to the Manager
and counsel for the Manager, this Agreement and all obligations of the Manager hereunder may be canceled at, or at any time prior
to, any Settlement Date or Time of Delivery, as applicable, by the Manager. Notice of such cancellation shall be given to the Company
in writing or by telephone or facsimile confirmed in writing.

 

The documents required
to be delivered by this Section 6 shall be delivered at the office of Ellenoff Grossman & Schole LLP, counsel for the Manager,
at 1345 Avenue of the Americas, New York, New York 10105, on each such date as provided in this Agreement.

 

7.           Indemnification
and Contribution.

 

(a)          Indemnification
by Company. The Company agrees to indemnify and hold harmless the Manager, the directors, officers, employees and agents of
the Manager and each person who controls the Manager within the meaning of either the Act or the Exchange Act against any and all
losses, claims, damages or liabilities, joint or several, to which they or any of them may become subject under the Act, the Exchange
Act or other Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages
or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement
of a material fact contained in the Registration Statement for the registration of the Shares as originally filed or in any amendment
thereof, or in the Base Prospectus, any Prospectus Supplement, the Prospectus, any Issuer Free Writing Prospectus, or in any amendment
thereof or supplement thereto, 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 not misleading, and agrees to reimburse each such indemnified
party for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss,
claim, damage, liability or action; provided, however, that the Company will not be liable in any such case to the
extent that any such loss, claim, damage or liability arises out of or is based upon any such untrue statement or alleged untrue
statement or omission or alleged omission made therein in reliance upon and in conformity with written information furnished to
the Company by the Manager specifically for inclusion therein. This indemnity agreement will be in addition to any liability that
the Company may otherwise have.

 

    	28

    	 

    

 

(b)          Indemnification
by Manager. The Manager agrees to indemnify and hold harmless the Company, each of its directors, each of its officers who
signs the Registration Statement, and each person who controls the Company within the meaning of either the Act or the Exchange
Act, to the same extent as the foregoing indemnity from the Company to the Manager, but only with reference to written information
relating to the Manager furnished to the Company by the Manager specifically for inclusion in the documents referred to in the
foregoing indemnity; provided, however, that in no case shall the Manager be responsible for any amount in excess
of the Broker Fee applicable to the Shares and paid hereunder. This indemnity agreement will be in addition to any liability which
the Manager may otherwise have.

 

(c)          Indemnification
Procedures. Promptly after receipt by an indemnified party under this Section 7 of notice of the commencement of any action,
such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 7,
notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will
not relieve it from liability under paragraph (a) or (b) above unless and to the extent it did not otherwise learn of
such action and such failure results in the forfeiture by the indemnifying party of substantial rights and defenses and (ii) will
not, in any event, relieve the indemnifying party from any obligations to any indemnified party other than the indemnification
obligation provided in paragraph (a) or (b) above. The indemnifying party shall be entitled to appoint counsel of the
indemnifying party’s choice at the indemnifying party’s expense to represent the indemnified party in any action for
which indemnification is sought (in which case the indemnifying party shall not thereafter be responsible for the fees and expenses
of any separate counsel retained by the indemnified party or parties except as set forth below); provided, however,
that such counsel shall be reasonably satisfactory to the indemnified party. Notwithstanding the indemnifying party’s election
to appoint counsel to represent the indemnified party in an action, the indemnified party shall have the right to employ separate
counsel (including local counsel), and the indemnifying party shall bear the reasonable fees, costs and expenses of such separate
counsel if (i) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel
with a conflict of interest, (ii) the actual or potential defendants in, or targets of, any such action include both the indemnified
party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be legal defenses available
to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party, (iii) the
indemnifying party shall not have employed counsel reasonably satisfactory to the indemnified party to represent the indemnified
party within a reasonable time after notice of the institution of such action or (iv) the indemnifying party shall authorize
the indemnified party to employ separate counsel at the expense of the indemnifying party. An indemnifying party will not, without
the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect
to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought
hereunder (whether or not the indemnified parties are actual or potential parties to such claim or action) unless such settlement,
compromise or consent includes an unconditional release of each indemnified party from all liability arising out of such claim,
action, suit or proceeding.

 

    	29

    	 

    

 

(d)          Contribution.
In the event that the indemnity provided in paragraph (a), (b) or (c) of this Section 7 is unavailable to or
insufficient to hold harmless an indemnified party for any reason, the Company and the Manager agree to contribute to the aggregate
losses, claims, damages and liabilities (including legal or other expenses reasonably incurred in connection with investigating
or defending the same) (collectively “Losses”) to which the Company and the Manager may be subject in such proportion
as is appropriate to reflect the relative benefits received by the Company on the one hand and by the Manager on the other from
the offering of the Shares; provided, however, that in no case shall the Manager be responsible for any amount in
excess of the Broker Fee applicable to the Shares and paid hereunder. If the allocation provided by the immediately preceding sentence
is unavailable for any reason, the Company and the Manager severally shall contribute in such proportion as is appropriate to reflect
not only such relative benefits but also the relative fault of the Company on the one hand and of the Manager on the other in connection
with the statements or omissions which resulted in such Losses as well as any other relevant equitable considerations. Benefits
received by the Company shall be deemed to be equal to the total net proceeds from the offering (before deducting expenses) received
by it, and benefits received by the Manager shall be deemed to be equal to the Broker Fee applicable to the Shares and paid hereunder
as determined by this Agreement. Relative fault shall be determined by reference to, among other things, whether any untrue or
any alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information
provided by the Company on the one hand or the Manager on the other, the intent of the parties and their relative knowledge, access
to information and opportunity to correct or prevent such untrue statement or omission. The Company and the Manager agree that
it would not be just and equitable if contribution were determined by pro rata allocation or any other method of allocation which
does not take account of the equitable considerations referred to above. Notwithstanding the provisions of this paragraph (d),
no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution
from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 7, each person who controls
the Manager within the meaning of either the Act or the Exchange Act and each director, officer, employee and agent of the Manager
shall have the same rights to contribution as the Manager, and each person who controls the Company within the meaning of either
the Act or the Exchange Act, each officer of the Company who shall have signed the Registration Statement and each director of
the Company shall have the same rights to contribution as the Company, subject in each case to the applicable terms and conditions
of this paragraph (d).

 

    	30

    	 

    

 

8.           Termination.

 

(a)          The
Company shall have the right, by giving written notice as hereinafter specified, to terminate the provisions of this Agreement
relating to the solicitation of offers to purchase the Shares in its sole discretion at any time upon one (1) Business Day’s
prior written notice. Any such termination shall be without liability of any party to any other party except that (i) with
respect to any pending sale, through the Manager for the Company, the obligations of the Company, including in respect of compensation
of the Manager, shall remain in full force and effect notwithstanding the termination and (ii) the provisions of Sections 5,
6, 7, 8, 9, 10, 12 and 14 of this Agreement shall remain in full force and effect notwithstanding such termination.

 

(b)          The
Manager shall have the right, by giving written notice as hereinafter specified, to terminate the provisions of this Agreement
relating to the solicitation of offers to purchase the Shares in its sole discretion at any time. Any such termination shall be
without liability of any party to any other party except that the provisions of Sections 5, 6, 7, 8, 9, 10, 12 and 14 of this
Agreement shall remain in full force and effect notwithstanding such termination.

 

(c)          This
Agreement shall remain in full force and effect until the later of August 31, 2015 and such date that this Agreement is terminated
pursuant to Sections 8(a) or (b) above or otherwise by mutual agreement of the parties; provided that any such
termination by mutual agreement shall in all cases be deemed to provide that Sections 5, 6, 7, 8, 9, 10, 12 and 14 shall remain
in full force and effect.

 

(d)          Any
termination of this Agreement shall be effective on the date specified in such notice of termination; provided that such
termination shall not be effective until the close of business on the date of receipt of such notice by the Manager or the Company,
as the case may be. If such termination shall occur prior to the Settlement Date or Time of Delivery for any sale of the Shares,
such sale shall settle in accordance with the provisions of Section 2(b) of this Agreement.

 

(e)          In
the case of any purchase of Shares by the Manager pursuant to a Terms Agreement, the obligations of the Manager pursuant to such
Terms Agreement shall be subject to termination, in the absolute discretion of the Manager, by prompt oral notice given to the
Company prior to the Time of Delivery relating to such Shares, if any, and confirmed promptly by facsimile or electronic mail,
if since the time of execution of the Terms Agreement and prior to such delivery and payment, (i) trading in the Company’s
Common Stock shall have been suspended by the Commission or the Trading Market or trading in securities generally on the Trading
Market shall have been suspended or limited or minimum prices shall have been established on such exchange, (ii) a banking
moratorium shall have been declared either by Federal or New York State authorities or (iii) there shall have occurred any
outbreak or escalation of hostilities, declaration by the United States of a national emergency or war, or other calamity or crisis
the effect of which on financial markets is such as to make it, in the sole judgment of the Manager, impractical or inadvisable
to proceed with the offering or delivery of the Shares as contemplated by the Prospectus (exclusive of any amendment or supplement
thereto).

 

    	31

    	 

    

 

9.           Representations
and Indemnities to Survive. The respective agreements, representations, warranties, indemnities and other statements of the
Company or its officers and of the Manager set forth in or made pursuant to this Agreement will remain in full force and effect,
regardless of any investigation made by the Manager or the Company or any of the officers, directors, employees, agents or controlling
persons referred to in Section 7, and will survive delivery of and payment for the Shares.

 

10.         Notices.
All communications hereunder will be in writing and effective only on receipt, and, if sent to the Manager, will be mailed, delivered
or facsimiled to the address set forth on the signature page hereto. An electronic communication (“Electronic Notice”)
shall be deemed written notice for purposes of this Section if the Electronic Notice is delivered to the electronic mail address
specified by the receiving party under separate cover. Electronic Notice shall be deemed to have been received at the time the
party sending Electronic Notice receives verification of receipt by the receiving party. Any party receiving Electronic Notice
may request and shall be entitled to receive the Electronic Notice on paper, in a nonelectronic form (“Nonelectronic Notice”),
which shall be sent to the requesting party within ten (10) days of receipt of the written request for Nonelectronic Notice.

 

11.         Successors.
This Agreement will inure to the benefit of and be binding upon the parties hereto and their respective successors and the officers,
directors, employees, agents and controlling persons referred to in Section 7, and no other person will have any right or
obligation hereunder. Nothing in this Agreement, express or implied, is intended to confer upon any party, other than the parties
hereto or their respective successors and permitted assigns, any rights, remedies, obligations or liabilities under or by reason
or obligations under this Agreement without the prior written consent of the parties hereto.

 

12.         No
Fiduciary Duty. The Company hereby acknowledges that (a) the purchase and sale of the Shares pursuant to this Agreement
is an arm’s-length commercial transaction between the Company, on the one hand, and the Manager and any affiliate through
which it may be acting, on the other, (b) the Manager is acting solely as sales agent and/or principal in connection with
the purchase and sale of the Company’s securities and not as a fiduciary of the Company and (c) the Company’s
engagement of the Manager in connection with the offering and the process leading up to the offering is as independent contractors
and not in any other capacity. Furthermore, the Company agrees that it is solely responsible for making its own judgments in connection
with the offering (irrespective of whether the Manager has advised or is currently advising the Company on related or other matters).
The Company agrees that it will not claim that the Manager has rendered advisory services of any nature or respect, or owe an agency,
fiduciary or similar duty to the Company, in connection with such transaction or the process leading thereto.

 

    	32

    	 

    

 

13.         Integration.
This Agreement (including all schedules and exhibits hereto and Sales Notices issued pursuant hereto) and any Terms Agreement supersede
all prior agreements and understandings (whether written or oral) between the Company and the Manager with respect to the subject
matter hereof.

 

14.         Applicable
Law. This Agreement and any Terms Agreement will be governed by and construed in accordance with the laws of the State of New
York applicable to contracts made and to be performed within the State of New York.

 

15.         Waiver
of Jury Trial. The Company hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right
to trial by jury in any legal proceeding arising out of or relating to this Agreement, any Terms Agreement or the transactions
contemplated hereby or thereby. 

 

16.         Counterparts.
This Agreement and any Terms Agreement may be signed in one or more counterparts, each of which shall constitute an original and
all of which together shall constitute one and the same agreement, which may be delivered by facsimile or in .pdf file via e-mail.

 

17.         Use
of Information. The Manager may not provide any information gained in connection with this Agreement and the transactions contemplated
by this Agreement, including due diligence, to any third party other than its legal counsel advising it on this Agreement unless
expressly approved by the Company in writing; provided, however, that the Manager may disclose such information pursuant
to any governmental, judicial or administrative order, subpoena or discovery request or request or inquiry of a regulatory or self-regulatory
body.

 

18.         Amendment.
Neither this Agreement nor any term hereof may be amended other than pursuant to a writing executed by the Company and the Manager.

 

***************************

 

    	33

    	 

    

 

19.         Headings.
The section headings used in this Agreement and any Terms Agreement are for convenience only and shall not affect the construction
hereof.

 

If the foregoing is
in accordance with your understanding of our agreement, please sign and return to us the enclosed duplicate hereof, whereupon this
letter and your acceptance shall represent a binding agreement among the Company and the Manager.

 

Very truly yours,

 

Mgt capital investments,
inc.

 

	By:	/s/ Robert B. Ladd	 
	Name:     Robert B. Ladd
	Title:       President and Chief Executive Officer

 

The foregoing Agreement is hereby confirmed and accepted as
of the date first written above.

 

ASCENDIANT CAPITAL MARKETS, LLC

 

	By:	/s/ Mark Bergendahl	 
	Name:     Mark Bergendahl
	Title:       Managing Partner

 

Address for Notice:

 

    	34

    	 

    

 

Form of Terms Agreement

ANNEX I 

TERMS AGREEMENT

 

Dear Sirs:

 

MGT Capital
Investments, Inc. (the “Company”) proposes, subject to the terms and conditions stated herein and in the At
The Market Offering Agreement, dated December 30, 2013 (the “At The Market Offering Agreement”), between the
Company and Ascendiant Capital Markets, LLC (“Agent”), to issue and sell to Agent the securities specified in
the Schedule I hereto (the “Purchased Shares”).

 

Each of the
provisions of the At The Market Offering Agreement not specifically related to the solicitation by Ascendiant Capital Markets,
LLC, as agent of the Company, of offers to purchase securities is incorporated herein by reference in its entirety, and shall be
deemed to be part of this Terms Agreement to the same extent as if such provisions had been set forth in full herein. Each of the
representations and warranties set forth therein shall be deemed to have been made at and as of the date of this Terms Agreement
and the Time of Delivery, except that each representation and warranty in Section 3 of the At The Market Offering Agreement
which makes reference to the Prospectus (as therein defined) shall be deemed to be a representation and warranty as of the date
of the At The Market Offering Agreement in relation to the Prospectus, and also a representation and warranty as of the date of
this Terms Agreement and the Time of Delivery in relation to the Prospectus as amended and supplemented to relate to the Purchased
Shares.

 

An amendment
to the Registration Statement (as defined in the At The Market Offering Agreement), or a supplement to the Prospectus, as the case
may be, relating to the Purchased Shares, in the form heretofore delivered to the Manager is now proposed to be filed with the
Securities and Exchange Commission.

 

Subject to
the terms and conditions set forth herein and in the At The Market Offering Agreement which are incorporated herein by reference,
the Company agrees to issue and sell to Agent and the latter agrees to purchase from the Company the number of shares of the Purchased
Shares at the time and place and at the purchase price set forth in the Schedule I hereto.

 

    	35

    	 

    

 

If
the foregoing is in accordance with your understanding, please sign and return to us a counterpart hereof, whereupon this Terms
Agreement, including those provisions of the At The Market Offering Agreement incorporated herein by reference, shall constitute
a binding agreement between the Manager and the Company. 

 

	MGT CAPITAL INVESTMENTS, INC.
	 	 
	By:	/s/ Robert B. Ladd	 
	 	Name: Robert B. Ladd
	 	Title: President and Chief Executive Officer

 

ACCEPTED as of the date first written above.

 

	ASCENDIANT CAPITAL MARKETS, LLC
	 	 	 
	By:	/s/ Mark Bergendahl	 
	 	Name: Mark Bergendahl	 
	 	Title: Managing Partner	 

 

    	36SHARE EXCHANGE AGREEMENT

 

This SHARE EXCHANGE
AGREEMENT (this “Agreement”), dated as of December 30th, 2013, is by and among UCP Holdings, Inc.,
a Nevada corporation (“UCP”), Kapital Yonetim Hizmet Ve Gayrimenkul Yatirim Sanayi Ticaret Ltd. Sirketi, a
Turkish limited liability company (“Kapital”), and the shareholder of Kapital identified on Annex A
hereto (the “Shareholder”). Each of the parties to this Agreement is individually referred to herein as a “Party”
and collectively, as the “Parties.” Capitalized terms used herein that are not otherwise defined herein shall
have the meanings ascribed to them in Annex B hereto.

 

BACKGROUND

 

Kapital has 4,000,000,000
common shares (the “Kapital Stock”) outstanding, 2,040,000,000 of which the Shareholder holds and has agreed
to sell subject to the terms and conditions of this Agreement, which constitutes 51% of the issued and outstanding capital stock
of Kapital. The Shareholder has agreed to transfer these 2,040,000,000 shares ofKapital Stock in exchange for an aggregate of
36,500,000 newly issued shares of the Common Stock, par value $0.0001 per share, of UCP (the “UCP Stock”),
which will constitute approximately 48% of the issued and outstanding capital stock of UCP as of and immediately after the Closing.The
number of shares of UCP Stock to be received by the Shareholder is listed opposite the Shareholder’s name on Annex A
and is referred to herein as the “Shares.”

 

The Board of Directors
of each of UCP and Kapital has determined that it is desirable to effect this share exchange.

 

AGREEMENT

 

NOW, THEREFORE, in
consideration of the foregoing and the respective representations, warranties, covenants and agreements set forth herein, and
intending to be legally bound hereby, the Parties agree as follows:

 

ARTICLE I

Exchange of Shares

 

1.1.          Exchange
by the Shareholder. At the Closing, the Shareholder shall sell, transfer, convey, assign and deliver to UCP their Kapital
Stock in the amounts set forth on Annex A free and clear of all Liens in exchange for the UCP Stock listed on Annex
A opposite the Shareholder’s name.

 

1.2.          Closing. The
closing (the “Closing”) of the transactions contemplated hereby (the “Transactions”) shall
take place at the offices of Kapital commencing at 9:00 a.m. local time on the second business day following the satisfaction
or waiver of all conditions to the obligations of the Parties to consummate the Transactions (other than conditions with respect
to actions that the respective parties will take at Closing),or such other date and time as the Parties may mutually determine
(the “Closing Date”).

 

    	-1-

    	 

    

 

ARTICLE II

Representations and Warranties of Shareholder

 

The Shareholder hereby
represent and warrant to UCP as follows:

 

2.1.          Good
Title. The Shareholder are the record and beneficial owners, and have and shall transfer at the Closing good and marketable
title to theirKapital Stock shown as owned of record by Shareholder on Annex A hereto, with the right and authority to
sell and deliver such Kapital Stock. Upon delivery of any certificate or certificates duly assigned, representing the same as
herein contemplated and/or upon registering of UCP as the new owner of such Kapital Stock, UCP will receive good title to such
Kapital Stock, free and clear of all Liens.

 

2.2.          Pre-emptive
Rights. The Shareholder have no pre-emptive rights or any other rights to acquire any Kapital Stock that have not been
waived or exercised.

 

2.3.          Residency. The
Shareholder areindividuals resident in Turkey.

 

2.4.          Power
and Authority. The Shareholder have the legal power and authority to execute and deliver this Agreement and to perform
their obligations hereunder. All acts required to be taken by the Shareholder to enter into this Agreement and to carry out the
Transactions have been properly taken. This Agreement constitutes a legal, valid and binding obligation of the Shareholder, enforceable
against the Shareholder in accordance with the terms hereof.

 

2.5.          No
Conflicts. The execution and delivery of this Agreement by the Shareholder and the performance by the Shareholder of
their obligations hereunder in accordance with the terms hereof: (a) will not require the consent of any third party or Governmental
Entity under any Laws; (b) will not violate any Laws applicable to the Shareholder and (c) will not violate or breach any contractual
obligation to which the Shareholder are a party.

 

2.6.          Litigation. There
is no pending proceeding against such Shareholder that involves the Shares or that challenges, or may have the effect of preventing,
delaying or making illegal, or otherwise interfering with, any of the transactions contemplated by this Agreement and, to the
knowledge of the Shareholder, no such proceeding has been threatened, and no event or circumstance exists that is reasonably likely
to give rise to or serve as a basis for the commencement of any such proceeding.

 

2.7.          No
Finder’s Fee. The Shareholder have not created any obligation for any finder’s, investment banker’s
or broker’s fee in connection with the Transactions.

 

2.8.          Purchase
Entirely for Own Account. The UCP Stock proposed to be acquired by the Shareholder hereunder will be acquired for investment
for its own account, and not with a view to the resale or distribution of any part thereof, and the Shareholder have no present
intention of selling or otherwise distributing the UCP Stock, except in compliance with applicable securities laws.

  

    	-2-

    	 

    

  

2.9.          Available
Information. The Shareholder have such knowledge and experience in financial and business matters that it is capable
of evaluating the merits and risks of investment in UCP and has had full access to all the information it considers necessary
or appropriate to make an informed investment decision with respect to the UCP Stock.

 

2.10.         Non-Registration. The
Shareholder understand that the UCP Stock has not been registered under the Securities Act and, if issued in accordance with the
provisions of this Agreement, will be issued by reason of a specific exemption from the registration provisions of the Securities
Act which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of the Shareholder’
representations as expressed herein. The non-registration shall have no prejudice with respect to any rights, interests, benefits
and entitlements attached to the UCP Stock in accordance with UCP’s charter documents or the laws of its jurisdiction of
incorporation.

 

2.11.         Restricted
Securities. The Shareholder understand that the UCP Stock is characterized as “restricted securities” under
the Securities Act inasmuch as this Agreement contemplates that, if acquired by the Shareholder pursuant hereto, the UCP Stock
would be acquired in a transaction not involving a public offering. The Shareholder further acknowledge that if the UCP Stock
is issued to the Shareholder in accordance with the provisions of this Agreement, such UCP Stock may not be resold without registration
under the Securities Act or the existence of an exemption therefrom. The Shareholder represent that they are familiar with Rule
144 promulgated under the Securities Act, as presently in effect, and understands the resale limitations imposed thereby and by
the Securities Act.

 

2.12.         Accredited
Investor. The Shareholder are “accredited investors” within the meaning of Rule 501 under the Securities
Act and the Shareholder were not organized for the specific purpose of acquiring the UCP Stock.

 

2.13.         Regulation
S. No offer to enter into this Agreement has been made by UCP to the Shareholder in the United States. Neither the Shareholder
nor any of their respective affiliate or any person acting on their behalf or on behalf of any such affiliate, has engaged or
will engage in any activity undertaken for the purpose of, or that reasonably could be expected to have the effect of, conditioning
the markets in the United States for the UCP Stock, including, but not limited to, effecting any sale or short sale of securities,
prior to the expiration of any restricted period contained in Regulation S promulgated under the Securities Act (any such activity
being defined herein as a “Directed Selling Effort”). To the best knowledge of the Shareholder, this Agreement
and the transactions contemplated herein are not part of a plan or scheme to evade the registration provisions of the Securities
Act, and the UCP Stock is being acquired for investment purposes by the Shareholder. The Shareholder agree that all offers and
sales of the UCP Stock from the date hereof and through the expiration of any restricted period set forth in Rule 903 of Regulation
S (as the same may be amended from time to time hereafter) shall not be made to U.S. Persons (within the meaning of Regulation
S) or for the account or benefit of U.S. Persons and shall otherwise be made in compliance with the provisions of Regulation S
and any other applicable provisions of the Securities Act. Neither the Shareholder or any of their representatives has conducted
any Directed Selling Effort as that term is used and defined in Rule 902 of Regulation S and neither of them nor any of their
respective representatives will engage in any such Directed Selling Effort within the United States through the expiration of
any restricted period set forth in Rule 903 of Regulation S.

  

    	-3-

    	 

    

  

2.14.         Legends. It
is understood that the UCP Stock will bear the following legend or one that is substantially similar to the following legend:

 

NEITHER THESE SECURITIES NOR
THE SECURITIES ISSUABLE UPON CONVERSION OF THESE SECURITIES HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR
THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE
TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THESE SECURITIES AND THE SECURITIES
ISSUABLE UPON CONVERSION OF THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED BY SUCH SECURITIES.

 

Additionally, the UCP Stock will bear
any legend required by the “blue sky” laws of any state to the extent such laws are applicable to the securities represented
by the certificate so legended.

 

2.15.         Opinion. The
Shareholder shall not transfer any or all of the UCP Stock pursuant to Regulation S or absent an effective registration statement
under the Securities Act and applicable state securities law covering the disposition of Shareholder’s UCP Stock, without
first providing UCP with an opinion of counsel (which counsel and opinion are reasonably satisfactory to UCP) to the effect that
such transfer will be made in compliance with Regulation S or will be exempt from the registration and the prospectus delivery
requirements of the Securities Act and the registration or qualification requirements of any applicable U.S. state securities
laws.

 

2.16.         Consent. Shareholder
understand and acknowledge that UCP may refuse to transfer the UCP Stock, unless Shareholder comply with this Section 2.17 and
any other restrictions on transferability set forth in Annexes C and D. The Shareholder consent to UCP making a notation on its
records or giving instructions to any transfer agent of UCP’s common stock in order to implement the restrictions on transfer
or transfer upon conversion of the UCP Stock.

 

2.17.         Disclosure. This
Agreement, the schedules hereto and any certificate attached hereto or delivered in accordance with the terms hereof by or on
behalf of the Shareholder in connection with the transactions contemplated by this Agreement, when taken together, do not contain
any untrue statement of a material fact or omit any material fact necessary in order to make the statements contained herein and/or
therein not misleading.

 

ARTICLE III

Representations and Warranties of Kapital

 

Subject to the exceptions
set forth in the Kapital Disclosure Letter (regardless of whether or not the Kapital Disclosure Letter is referenced below with
respect to any particular representation or warranty), Kapitalrepresents and warrants as follows to UCP.

 

    	-4-

    	 

    

 

3.1.          Organization,
Standing and Power. Kapital is duly organized, validly existing and in good standing under the laws of the jurisdiction
in which it is organized and has the corporate power and authority and possesses all governmental franchises, licenses, permits,
authorizations and approvals necessary to enable it to own, lease or otherwise hold its properties and assets and to conduct its
businesses as presently conducted, other than such franchises, licenses, permits, authorizations and approvals the lack of which,
individually or in the aggregate, has not had and would not reasonably be expected to have a material adverse effect on Kapital,
a material adverse effect on the ability of Kapitalto perform its obligations under this Agreement or on the ability of Kapitalto
consummate the Transactions (a “Kapital Material Adverse Effect”). Kapitalis duly qualified to do business
in each jurisdiction where the nature of its business or its ownership or leasing of its properties make such qualification necessary
except where the failure to so qualify would not reasonably be expected to have a Kapital Material Adverse Effect. Kapital has
delivered to UCP true and complete copies of the Kapital Constituent Instruments, and the comparable charter, organizational documents
and other constituent instruments of each of its subsidiaries, in each case as amended through the date of this Agreement.

 

3.2.          Kapital
Subsidiaries; Equity Interests.

 

(a)          Except
as set forth on Schedule 3.2, Kapital does not as of the date of this Agreement own, directly or indirectly, any capital stock
or other securities of, or have any beneficial ownership interest in, or hold any equity or similar interest, or have any investment
in any corporation, limited liability company, partnership, limited partnership, joint venture or other company, person or other
entity.

 

3.3           Capital
Structure. The issued and outstanding capital stock of Kapital consists of 1,220,842,287common shares. Except as set
forth above, no shares of capital stock or other voting securities of Kapital are issued, reserved for issuance or outstanding.
Kapital is the sole record and beneficial owner of all of the issued and outstanding capital stock of each of its subsidiaries.All
outstanding shares of the capital stock of Kapital and each of its subsidiaries are validly issued, fully paid and nonassessable
and not subject to or issued in violation of any purchase option, call option, right of first refusal, preemptive right, subscription
right or any similar right under any provision of the applicable corporate laws of Turkey, the Kapital Constituent Instruments
or any Contract to which Kapital is a party or otherwise bound. There are not any bonds, debentures, notes or other indebtedness
of Kapitalor any of its subsidiaries having the right to vote (or convertible into, or exchangeable for, securities having the
right to vote) on any matters on which holders of Kapital Stock or the capital stock of any of its subsidiaries may vote (“Voting
Kapital Debt”). As of the date of this Agreement, there are not any options, warrants, rights, convertible or exchangeable
securities, “phantom” stock rights, stock appreciation rights, stock-based performance units, commitments, Contracts,
arrangements or undertakings of any kind to which Kapitalor any of its subsidiaries is a party or by which any of them is bound
(a) obligating Kapitalor any of its subsidiaries to issue, deliver or sell, or cause to be issued, delivered or sold, additional
shares of capital stock or other equity interests in, or any security convertible or exercisable for or exchangeable into any
capital stock of or other equity interest in, Kapitalor any of its subsidiaries or any Voting Kapital Debt, (b) obligating Kapitalor
any of its subsidiaries to issue, grant, extend or enter into any such option, warrant, call, right, security, commitment, Contract,
arrangement or undertaking or (c) that give any person the right to receive any economic benefit or right similar to or derived
from the economic benefits and rights occurring to holders of the capital stock of Kapital or of any of its subsidiaries. As of
the date of this Agreement, there are not any outstanding contractual obligations of Kapital to repurchase, redeem or otherwise
acquire any shares of capital stock of Kapital.

  

    	-5-

    	 

    

  

3.4.          Authority;
Execution and Delivery; Enforceability. Kapitalhas all requisite corporate power and authority to execute and deliver
this Agreement and to consummate the Transactions. The execution and delivery by Kapitalof this Agreement and the consummation
by Kapitalof the Transactions have been duly authorized and approved by the Board of Directors of Kapitaland no other corporate
proceedings on the part of Kapitalare necessary to authorize this Agreement and the Transactions. When executed and delivered,
this Agreement will be enforceable against Kapitalin accordance with its terms.

 

3.5.          No
Conflicts; Consents.

  

(a)          The
execution and delivery by Kapitalof this Agreement does not, and the consummation of the Transactions and compliance with the
terms hereof will not, conflict with, or result in any violation of or default (with or without notice or lapse of time, or both)
under, or give rise to a right of termination, cancellation or acceleration of any obligation or to loss of a material benefit
under, or result in the creation of any Lien upon any of the properties or assets of Kapitalunder, any provision of (i) the Kapital
Constituent Instruments or the comparable charter or organizational documents of any of its subsidiaries, (ii) any Contract to
which Kapitalis a party or by which any of its properties or assets is bound or (iii) subject to the filings and other matters
referred to in Section 3.5(b), any material judgment, order or decree or material Law applicable to Kapitalor its properties or
assets, including without limitation, the Kapital Stock, other than, in the case of clauses (ii) and (iii) above, any such items
that, individually or in the aggregate, have not had and would not reasonably be expected to have a Kapital Material Adverse Effect.

 

(b)          Except
as set forth in the Kapital Disclosure Letter and for required filings with the SEC and applicable “Blue Sky” or state
securities commissions, no Consent of, or registration, declaration or filing with, or permit from, any Governmental Entity is
required to be obtained or made by or with respect to Kapitalin connection with the execution, delivery and performance of this
Agreement or the consummation of the Transactions.

 

3.6.          Taxes.

  

(a)          Kapitalhas
timely filed, or has caused to be timely filed on its behalf, all Tax Returns required to be filed by it, and all such Tax Returns
are true, complete and accurate, except to the extent any failure to file or any inaccuracies in any filed Tax Returns, individually
or in the aggregate, have not had and would not reasonably be expected to have a Kapital Material Adverse Effect. All Taxes shown
to be due on such Tax Returns, or otherwise owed, have been timely paid, except to the extent that any failure to pay, individually
or in the aggregate, has not had and would not reasonably be expected to have a Kapital Material Adverse Effect. There are no
unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of Kapitalknow
of no basis for any such claim.

 

    	-6-

    	 

    

 

(b)          The
Kapital Financial Statements reflect an adequate reserve for all Taxes payable by Kapital(in addition to any reserve for deferred
Taxes to reflect timing differences between book and Tax items) for all Taxable periods and portions thereof through the date
of such financial statements. No deficiency with respect to any Taxes has been proposed, asserted or assessed against Kapitalor
any of its subsidiaries, and no requests for waivers of the time to assess any such Taxes are pending, except to the extent any
such deficiency or request for waiver, individually or in the aggregate, has not had and would not reasonably be expected to have
a Kapital Material Adverse Effect.

 

3.7.          Benefit
Plans.

  

(a)          Except
as set forth in the Kapital Disclosure Letter, Kapitaldoes not have or maintain any collective bargaining agreement or any bonus,
pension, profit sharing, deferred compensation, incentive compensation, stock ownership, stock purchase, stock option, phantom
stock, retirement, vacation, severance, disability, death benefit, hospitalization, medical or other plan, arrangement or understanding
(whether or not legally binding) providing benefits to any current or former employee, officer or director of Kapital(collectively,
“Kapital Benefit Plans”). As of the date of this Agreement there are not any severance or termination agreements
or arrangements between Kapitaland any current or former employee, officer or director of Kapital, nor doesKapitalhave any general
severance plan or policy.

 

(b)          Since
December 31, 2012, there has not been any adoption or amendment in any material respect by Kapitalof any Kapital Benefit Plan.

 

(c)          Neither
the consummation of the transactions contemplated hereby alone, nor in combination with another event, with respect to each director,
officer, employee and consultant of Kapital, will result in (a) any payment (including, without limitation, severance, unemployment
compensation or bonus payments) becoming due from Kapital, (b) any increase in the amount of compensation or benefits payable
to any such individual or (c) any acceleration of the vesting or timing of payment of compensation payable to any such individual.
No agreement, arrangement or other contract of Kapitalprovides benefits or payments contingent upon, triggered by, or increased
as a result of a change in the ownership or effective control of Kapital.

 

3.8.          Litigation. There
is no Action against or affecting Kapitalor any of its properties which (a) adversely affects or challenges the legality, validity
or enforceability of any of this Agreement or the Shares or (b) could, if there were an unfavorable decision, individually or
in the aggregate, have or reasonably be expected to result in a Kapital Material Adverse Effect. Neither Kapital, nor any director
or officer thereof (in his or her capacity as such), is or has been the subject of any Action involving a claim or violation of
or liability under central or provincial securities laws or a claim of breach of fiduciary duty.

  

    	-7-

    	 

    

 

 

3.9.          Compliance
with Applicable Laws. Except as would not have a Kapital Material Adverse Effect, the business and operations of Kapitalhas
been and is being conducted in accordance with all applicable foreign, federal, state and local laws, rules and regulations and
all applicable orders, injunctions, decrees, writs, judgments, determinations and awards of all courts and governmental agencies
and instrumentalities. Except as would not have a Kapital Material Adverse Effect, Kapitalis not, and is not alleged to be, in
violation of, or (with or without notice or lapse of time or both) in default under, or in breach of, any term or provision of
the Kapital Companies’ charter documents or of any indenture, loan or credit agreement, note, deed of trust, mortgage, security
agreement or other material agreement, lease, license or other instrument, commitment, obligation or arrangement to which Kapitalis
a party or by which Kapital’s properties, assets or rights are bound or affected. To the best knowledge of Kapital, no other
party to any material contract, agreement, lease, license, commitment, instrument or other obligation to which Kapitalis a party
are (with or without notice or lapse of time or both) in default thereunder or in breach of any term thereof. Kapitalis not subject
to any obligation or restriction of any kind or character, nor are there, to the knowledge of Kapital, any event or circumstance
relating to Kapitalthat materially and adversely affects in any way its business, properties, assets or prospects or that would
prevent or make burdensome their performance of or compliance with all or any part of this Agreement or the consummation of the
transactions contemplated hereby or thereby. This Section 3.9 does not relate to matters with respect to Taxes, which are the
subject of Section 3.6.

 

3.10.         Brokers;
Schedule of Fees and Expenses. Except as disclosed in the Kapital Disclosure Letter, no broker, investment banker, financial
advisor or other person is entitled to any broker’s, finder’s, financial advisor’s or other similar fee or commission
in connection with the Transactions based upon arrangements made by or on behalf of Kapital.

 

3.11.         Contracts. Except
as disclosed in the Kapital Disclosure Letter, there are no Contracts that are material to the business, properties, assets, condition
(financial or otherwise), results of operations or prospects of Kapitaltaken as a whole. Kapitalis not in violation of or in default
under (nor does there exist any condition which upon the passage of time or the giving of notice would cause such a violation
of or default under) any Contract to which it is a party or by which it or any of its properties or assets are bound, except for
violations or defaults that would not, individually or in the aggregate, reasonably be expected to result in a Kapital Material
Adverse Effect.

 

3.12.         Title
to Properties. Except as set forth in the Kapital Disclosure Letter, Kapitaldoes not own any real property. Kapitalhas
sufficient title to, or valid leasehold interests in, all of its properties and assets used in the conduct of its businesses.
All such assets and properties, other than assets and properties in which Kapitalhas leasehold interests, are free and clear of
all Liens, except for Liens that, in the aggregate, do not and will not materially interfere with the ability of Kapitalto conduct
business as currently conducted.

 

3.13.         Intellectual
Property. Kapitalowns, or is validly licensed or otherwise has the right to use, all Intellectual Property Rights which
are material to the conduct of the business of Kapitaltaken as a whole. The Kapital Disclosure Letter sets forth a description
of all Intellectual Property Rights which are material to the conduct of the businesses of Kapitaltaken as a whole. There are
no claims pending or, to the knowledge of any of Kapital, threatened that Kapitalis infringing or otherwise adversely affecting
the rights of any person with regard to any Intellectual Property Right. To the best knowledge of Kapital, no person is infringing
the rights of Kapitalwith respect to any Intellectual Property Right.

  

3.14.         Labor
Matters. There are no collective bargaining or other labor union agreements to which any of Kapitalis a party or by which
it is bound. No material labor dispute exists or, to the best knowledge of Kapital, is imminent with respect to any of the employees
of Kapital.

  

    	-8-

    	 

    

  

3.15.         Financial
Statements. Kapital has delivered to UCP its unaudited financial statements for the fiscal years ended December 31, 2012
and 2011 and its unaudited financial statements for the six months ended June 30, 2013 (collectively, the “Kapital Financial
Statements”). The Kapital Financial Statements have been prepared in accordance with [generally accepted accounting
principles] applied on a consistent basis throughout the periods indicated. The Kapital Financial Statements fairly present in
all material respects the financial condition and operating results of Kapital, as of the dates, and for the periods, indicated
therein. Kapital does not have any material liabilities or obligations, contingent or otherwise, other than (a) liabilities incurred
in the ordinary course of business subsequent to June 30, 2013, and (b) obligations under contracts and commitments incurred in
the ordinary course of business and not required under generally accepted accounting principles to be reflected in the Kapital
Financial Statements, which, in both cases, individually and in the aggregate, would not be reasonably expected to result in a
Kapital Material Adverse Effect.

 

3.16.         Insurance. Except
as set forth in the Kapital Disclosure Letter, Kapitalare insured by insurers of recognized financial responsibility against such
losses and risks and in such amounts as are prudent and customary in the businesses in which Kapitalis engaged and in the geographic
areas where it engages in such businesses. Kapitalhas no 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 on terms consistent with market for Kapitalrespective lines of business.

 

3.17.         Transactions
with Affiliates and Employees. Except as set forth in the Kapital Disclosure Letter, no officer, director or stockholder
of any of Kapitalor any affiliate or “associate” (as such term are defined in Rule 405 of the SEC under the Securities
Act) of any such person, have or have had, either directly or indirectly, (1) an interest in any person which (a) furnishes or
sells services or products which are furnished or sold or are proposed to be furnished or sold by Kapital, or (b) purchases from
or sells or furnishes to, or proposes to purchase from, sell to or furnish Kapital any goods or services; or (2) a beneficial
interest in any contract or agreement to which Kapitalis a party or by which they may be bound or affected.

 

3.18.         Internal
Accounting Controls. Kapitalmaintains a system of internal accounting controls sufficient to provide reasonable assurance
that (a) transactions are executed in accordance with management’s general or specific authorizations, (b) transactions
are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles
and to maintain asset accountability, (c) access to assets is permitted only in accordance with management’s general or
specific authorization, and (d) the recorded accountability for assets is compared with the existing assets at reasonable intervals
and appropriate action is taken with respect to any differences. Kapitalhas established disclosure controls and procedures for
its company and designed such disclosure controls and procedures to ensure that material information relating to Kapitalis made
known to the officers by others withinKapital. The officers of Kapitalhave evaluated the effectiveness of the Kapital Companies’
controls and procedures. Since June 30, 2013, there have been no significant changes in the Kapital Companies’ internal
controls or, to Kapital’s best knowledge, in other factors that could significantly affect Kapital’s internal controls.

  

    	-9-

    	 

    

  

3.19.         Governmental
Inquiries. Kapitalhas provided to UCP a copy of each material written inspection report, questionnaire, inquiry, demand
or request for information received by Kapitalfrom any Governmental Entity, and Kapital’s response thereto, and each material
written statement, report or other document filed by Kapitalwith any Governmental Entity.

 

3.20.         Solvency. Based
on the financial condition of Kapital as of the Closing Date (and assuming that the Closing shall have occurred), (a) Kapital’s
fair saleable value of its assets exceeds the amount that will be required to be paid on or in respect of Kapital’s existing
debts and other liabilities (including known contingent liabilities) as they mature, (b) Kapital’s assets do not constitute
unreasonably small capital to carry on its business for the current fiscal year as now conducted and as proposed to be conducted
including its capital needs taking into account the particular capital requirements of the business conducted by Kapital, and
projected capital requirements and capital availability thereof, and (c) the current cash flow of Kapital, together with the proceeds
Kapital would receive, were it to liquidate all of its assets, after taking into account all anticipated uses of the cash, would
be sufficient to pay all amounts on or in respect of its debt when such amounts are required to be paid. Kapital does not intend
to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be payable
on or in respect of its debt).

 

3.21.         Application
of Takeover Protections. Kapital has taken all necessary action, if any, in order to render inapplicable any control
share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover
provision under the Kapital Constituent Instruments or the laws of its jurisdiction of organization that is or could become applicable
to the Shareholder as a result of the Shareholder and Kapital fulfilling their obligations or exercising their rights under this
Agreement, including, without limitation, the issuance of the Shares and the Shareholder’ ownership of the Shares.

 

3.22.         No
Additional Agreements. Kapital does not have any agreement or understanding with the Shareholder with respect to the
Transactions other than as specified in this Agreement.

 

3.23.         Investment
Company. Kapital is not an affiliate of, and immediately following the Closing will not have become, an “investment
company” within the meaning of the Investment Company Act of 1940, as amended.

 

3.24.         Disclosure. Kapitalconfirms
that neither it nor any person acting on its behalf has provided the Shareholder or their agents or counsel with any information
that it believes constitutes material, non-public information except insofar as the existence and terms of the proposed transactions
hereunder may constitute such information and except for information that will be disclosed by UCP under a current report on Form
8-K filed within four business days after the Closing. Kapital understands and confirms that the Shareholder will rely on the
foregoing representations and covenants in effecting transactions in securities of Kapital. All disclosure provided to UCP regarding
Kapital, its business and the Transactions, furnished by or on behalf of Kapital(including Kapital’s representations and
warranties set forth in this Agreement) is true and correct and does not contain any untrue statement of a material fact or omit
to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they
were made, not misleading.

 

3.25.         Information
Supplied. None of the information supplied or to be supplied by Kapital for inclusion or incorporation by reference in
the Form 8-K filing contains any untrue statement of a material fact or omits to state any material fact required to be stated
therein or necessary in order to make the statements therein, in light of the circumstances under which they are made, not misleading.

  

    	-10-

    	 

    

  

3.26.         Absence
of Certain Changes or Events. Except as disclosed in the Kapital Financial Statements or in the Kapital Disclosure Letter,
from June 30, 2013 to the date of this Agreement, Kapital have conducted its business only in the ordinary course, and during
such period there has not been:

 

(a)          any
change in the assets, liabilities, financial condition or operating results of Kapital, except changes in the ordinary course
of business that have not caused, in the aggregate, a Kapital Material Adverse Effect;

 

(b)          any
damage, destruction or loss, whether or not covered by insurance, that would have a Kapital Material Adverse Effect;

 

(c)          any
waiver or compromise by Kapital of a valuable right or of a material debt owed to it;

 

(d)          any
satisfaction or discharge of any lien, claim, or encumbrance or payment of any obligation by Kapital, except in the ordinary course
of business and the satisfaction or discharge of which would not have a Kapital Material Adverse Effect;

 

(e)          any
material change to a material Contract by which Kapitalor any of its assets is bound or subject;

 

(f)          any
mortgage, pledge, transfer of a security interest in, or lien, created by Kapital, with respect to any of its material properties
or assets, except liens for taxes not yet due or payable and liens that arise in the ordinary course of business and do not materially
impair Kapital’s ownership or use of such property or assets;

 

(g)          any
loans or guarantees made by Kapitalto or for the benefit of its employees, officers or directors, or any members of their immediate
families, or any loans or advances to any persons, corporations, business trusts, associations, companies, partnerships, limited
liability companies, joint ventures and other entities, governments, agencies and political subdivision other than travel advances
and other advances made in the ordinary course of its business;

 

(h)          any
alteration of Kapital’s method of accounting or the identity of its auditors;

 

(i)          any
declaration or payment of dividend or distribution of cash or other property to the Shareholder or any purchase, redemption or
agreements to purchase or redeem any Kapital Stock;

 

(j)          any
issuance, sale, disposition or encumbrance of equity securities to any officer, director or affiliate, except pursuant to existing
Kapital stock option plans, or any change in its outstanding shares of capital stock or its capitalization, whether by reason
of reclassification, recapitalization, stock split, combination, exchange or readjustment of shares, stock dividend or otherwise;
or

  

    	-11-

    	 

    

 

(k)          any
arrangement or commitment by Kapitalto do any of the things described in this Section 3.26.

 

3.27.      No
Undisclosed Events, Liabilities, Developments or Circumstances. No event, liability, development or circumstance has
occurred or exists, or is contemplated to occur with respect to Kapital, or its business, properties, prospects, operations or
financial condition, that would be required to be disclosed by Kapital under applicable securities laws on a registration statement
on Form S-1 filed with the SEC relating to an issuance and sale by Kapital of its Kapital Stock and which has not been publicly
announced. All debts, obligations or liabilities with respect to directors and officers of Kapitalwill be cancelled prior to the
Closing.

 

3.28.      Foreign
Corrupt Practices. Neither Kapital, nor, to the Kapital’s best knowledge, any director, officer, agent, employee
or other person acting on behalf of Kapitalhas, in the course of its actions for, or on behalf of, Kapital(a) used any corporate
funds for any unlawful contribution, gift, entertainment or other unlawful expenses relating to political activity; (b) made any
direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds; (c) violated
or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended; or (d) made any unlawful bribe,
rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or domestic government official or employee.

 

3.29.      Environmental
and Safety Matters. Except as set forth in the Kapital Disclosure Letter and except as would not have a Kapital Material
Adverse Effect:

 

(a)          Kapitalhas
at all time been and are in compliance with all Environmental Laws applicable to Kapital.

 

(b)          There
are no Actions pending or threatened against Kapitalalleging the violation of any Environmental Law or environmental permit applicable
to Kapitalor alleging that Kapitalis potentially responsible parties for any environmental site contamination.

 

(c)          Neither
this Agreement nor the consummation of the transactions contemplated by this Agreement shall impose any obligations to notify
or obtain the consent of any Governmental Entity or third parties under any Law or other requirement relating to the environment,
natural resources, or public or employee health and safety (“Environmental Laws”) applicable to Kapital.

 

ARTICLE IV

Representations and Warranties of UCP

 

Subject to the exceptions
set forth in the UCP Disclosure Letter or the SEC Reports (regardless of whether or not the UCP Disclosure Letter or the SEC Reportsare
referenced below with respect to any particular representation or warranty) or the SEC Reports, UCP represents and warrants as
follows to the Shareholder and Kapital.

 

    	-12-

    	 

    

 

4.1.          Organization,
Standing and Power. UCP is duly organized, validly existing and in good standing under the laws of the State of Nevada
and has full corporate power and authority and possesses all governmental franchises, licenses, permits, authorizations and approvals
necessary to enable it to own, lease or otherwise hold its properties and assets and to conduct its businesses as presently conducted,
other than such franchises, licenses, permits, authorizations and approvals the lack of which, individually or in the aggregate,
has not had and would not reasonably be expected to have a material adverse effect on UCP, a material adverse effect on the ability
of UCP to perform its obligations under this Agreement or on the ability of UCP to consummate the Transactions (a “UCP
Material Adverse Effect”). UCP is duly qualified to do business in each jurisdiction where the nature of its business
or its ownership or leasing of its properties makes such qualification necessary and where the failure to so qualify would reasonably
be expected to have a UCP Material Adverse Effect. UCP has delivered to Kapital true and complete copies of the UCP Charter and
the UCP Bylaws.

 

4.2.          Subsidiaries;
Equity Interests.Except as set forth in the UCP Disclosure Letter or the SEC Reports,
UCP does not own, directly or indirectly, any capital stock, membership interest, partnership interest, joint venture interest
or other equity interest in any person.

 

4.3.          Capital
Structure. The authorized capital stock of UCP consists of 800,000,000 shares of common stock, par value $0.0001 per share,
and 200,000,000shares of preferred stock, par value $0.0001 per share. There are 39,500,000 shares of UCP’s common stock
and 0 shares of UCP’spreferred stock issued and outstanding. No shares
of UCP’s common stock or preferred stock are held by UCP in its treasury. Except as set forth in
the UCP Disclosure Letter or the SEC Reports, no other shares of capital stock or other voting securities of UCP were issued,
reserved for issuance or outstanding. All outstanding shares of the capital stock of UCP are, and all such shares that may be
issued prior to the date hereof will be when issued, duly authorized, validly issued, fully paid and nonassessable and not subject
to or issued in violation of any purchase option, call option, right of first refusal, preemptive right, subscription right or
any similar right under any provision of the Nevada Revised Statutes, the UCP Charter, the UCP Bylaws or any Contract to which
UCP is a party or otherwise bound. There are not any bonds, debentures, notes or other indebtedness of UCP having the right to
vote (or convertible into, or exchangeable for, securities having the right to vote) on any matters on which holders of UCP’s
common stock may vote (“Voting UCP Debt”). Except as set forth in the UCP
Disclosure Letter, there are not any options, warrants, rights, convertible or exchangeable securities, “phantom”
stock rights, stock appreciation rights, stock-based performance units, commitments, Contracts, arrangements or undertakings of
any kind to which UCP is a party or by which it is bound (a) obligating UCP to issue, deliver or sell, or cause to be issued,
delivered or sold, additional shares of capital stock or other equity interests in, or any security convertible or exercisable
for or exchangeable into any capital stock of or other equity interest in, UCP or any Voting UCP Debt, (b) obligating UCP to issue,
grant, extend or enter into any such option, warrant, call, right, security, commitment, Contract, arrangement or undertaking
or (c) that give any person the right to receive any economic benefit or right similar to or derived from the economic benefits
and rights occurring to holders of the capital stock of UCP. As of the date of this Agreement, there are not any outstanding contractual
obligations of UCP to repurchase, redeem or otherwise acquire any shares of capital stock of UCP. Except as set forth in the UCP
Disclosure Letter, UCP is not a party to any agreement granting any securityholder of UCP the right to cause UCP to register shares
of the capital stock or other securities of UCP held by such securityholder under the Securities Act. The stockholder list provided
to Kapital is a current stockholder list generated by its stock transfer agent, and such list accurately reflects all of the issued
and outstanding shares of the UCP’s common stock.

  

    	-13-

    	 

    

  

4.4.          Authority;
Execution and Delivery; Enforceability. The execution and delivery by UCP of this Agreement and the consummation by UCP of
the Transactions have been duly authorized and approved by the Board of Directors of UCP and no other corporate proceedings on
the part of UCP are necessary to authorize this Agreement and the Transactions. This Agreement constitutes a legal, valid and
binding obligation of UCP, enforceable against UCP in accordance with the terms hereof.

 

4.5.          No
Conflicts; Consents.

 

(a)          The
execution and delivery by UCP of this Agreement does not, and the consummation of Transactions and compliance with the terms hereof
will not, conflict with or result in any violation of or default (with or without notice or lapse of time, or both) under, or
give rise to a right of termination, cancellation or acceleration of any obligation or to loss of a material benefit under, or
to increased, additional, accelerated or guaranteed rights or entitlements of any person under, or result in the creation of any
Lien upon any of the properties or assets of UCP under, any provision of (i) the UCP Charter or UCP Bylaws, (ii) any material
Contract to which UCP is a party or by which any of its properties or assets is bound or (iii) subject to the filings and other
matters referred to in Section 4.5(b), any material judgment, order or decree or material Law applicable to UCP or its properties
or assets, other than, in the case of clauses (ii) and (iii) above, any such items that, individually or in the aggregate, have
not had and would not reasonably be expected to have a UCP Material Adverse Effect.

 

(b)          No
Consent of, or registration, declaration or filing with, or permit from, any Governmental Entity is required to be obtained or
made by or with respect to UCP in connection with the execution, delivery and performance of this Agreement or the consummation
of the Transactions, other than the filings with the SEC and filings under state “blue sky” laws, as may be required
in connection with this Agreement and the Transactions.

 

4.6.          SEC
Documents; Undisclosed Liabilities.

  

(a)          UCP
has filed all reports, schedules, forms, statements and other documents required to be filed by it with the SEC since September
12, 2012 pursuant to Sections 13(a), 14(a) and 15(d) of the Exchange Act (the “SEC Reports”).

 

(b)          As
of its respective filing date, each SEC Report complied in all material respects with the requirements of the Exchange Act and
the rules and regulations of the SEC promulgated thereunder applicable to such SEC Report, and did not contain any untrue statement
of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made, not misleading. Except to the extent that information contained
in any SEC Report has been revised or superseded by a later SEC Report, none of the SEC Reports contains any untrue statement
of a material fact or omits to state any material fact required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made, not misleading. The consolidated financial statements of UCP
included in the SEC Reports comply as to form in all material respects with applicable accounting requirements and the published
rules and regulations of the SEC with respect thereto, have been prepared in accordance with the U.S. generally accepted accounting
principles (except, in the case of unaudited statements, as permitted by the rules and regulations of the SEC) applied on a consistent
basis during the periods involved (except as may be indicated in the notes thereto) and fairly present the consolidated financial
position of UCP and its consolidated subsidiaries as of the dates thereof and the consolidated results of their operations and
cash flows for the periods shown (subject, in the case of unaudited statements, to normal year-end audit adjustments).

  

    	-14-

    	 

    

 

4.7.          Absence
of Certain Changes or Events. Except as set forth in the UCP Disclosure Letter or the
SEC Reports, from the date of the most recent audited financial statements of UCP (the “UCP Financial Statements”)
to the date of this Agreement, UCP has conducted its business only in the ordinary course, and during such period there has not
been:

 

(a)          any
change in the assets, liabilities, financial condition or operating results of UCP from that reflected in the UCP Financial Statements,
except changes in the ordinary course of business that have not caused, in the aggregate, a UCP Material Adverse Effect;

 

(b)          any
damage, destruction or loss, whether or not covered by insurance, that would have a UCP Material Adverse Effect;

 

(c)          any
waiver or compromise by UCP of a valuable right or of a material debt owed to it;

 

(d)          any
satisfaction or discharge of any lien, claim, or encumbrance or payment of any obligation by UCP, except in the ordinary course
of business and the satisfaction or discharge of which would not have a UCP Material Adverse Effect;

 

(e)          any
material change to a material Contract by which UCP or any of its assets is bound or subject;

 

(f)          any
material change in any compensation arrangement or agreement with any employee, officer, director or stockholder;

 

(g)          any
resignation or termination of employment of any officer of UCP;

 

(h)          any
mortgage, pledge, transfer of a security interest in or lien created by UCP with respect to any of its material properties or
assets, except liens for taxes not yet due or payable and liens that arise in the ordinary course of business and that do not
materially impair UCP’s ownership or use of such property or assets;

 

(i)          any
loans or guarantees made by UCP to or for the benefit of its employees, officers or directors, or any members of their immediate
families, other than travel advances and other advances made in the ordinary course of its business;

 

(j)          any
declaration, setting aside or payment or other distribution in respect of any of UCP’s capital stock, or any direct or indirect
redemption, purchase, or other acquisition of any of such stock by UCP;

 

(k)          any
alteration of UCP’s method of accounting or the identity of its auditors;

 

 

    	-15-

    	 

    

 

(l)          any
issuance of equity securities to any officer, director or affiliate, except pursuant to existing UCP stock option plans; or

 

(m)          any
arrangement or commitment by UCP to do any of the things described in this Section 4.8.

 

4.8.          Taxes.

 

(a)          Except
as set forth in the UCP Disclosure Letter, UCP has timely filed, or has caused to be timely filed on its behalf, all Tax
Returns required to be filed by it, and all such Tax Returns are true, complete and accurate, except to the extent any failure
to file, any delinquency in filing or any inaccuracies in any filed Tax Returns, individually or in the aggregate, have not had
and would not reasonably be expected to have a UCP Material Adverse Effect. All Taxes shown to be due on such Tax Returns, or
otherwise owed, have been timely paid, except to the extent that any failure to pay, individually or in the aggregate, has not
had and would not reasonably be expected to have a UCP Material Adverse Effect.

 

(b)          The
UCP Financial Statements reflect an adequate reserve for all Taxes payable by UCP (in addition to any reserve for deferred Taxes
to reflect timing differences between book and Tax items) for all Taxable periods and portions thereof through the date of such
financial statements. No deficiency with respect to any Taxes has been proposed, asserted or assessed against UCP, and no requests
for waivers of the time to assess any such Taxes are pending, except to the extent any such deficiency or request for waiver,
individually or in the aggregate, has not had and would not reasonably be expected to have a UCP Material Adverse Effect.

 

(c)          There
are no Liens for Taxes (other than for current Taxes not yet due and payable) on the assets of UCP. UCP is not bound by any agreement
or Lien under which UCP could become liable for a tax liability of any person other thanUCP.

 

4.9.          Absence
of Changes in Benefit Plans. From the date of the UCP Financial Statements to the date of this Agreement, there has not been
any adoption or amendment in any material respect by UCP of any collective bargaining agreement or any bonus, pension, profit
sharing, deferred compensation, incentive compensation, stock ownership, stock purchase, stock option, phantom stock, retirement,
vacation, severance, disability, death benefit, hospitalization, medical or other plan, arrangement or understanding (whether
or not legally binding) providing benefits to any current or former employee, officer or director of UCP (collectively, “UCP
Benefit Plans”). As of the date of this Agreement, there are not any employment, consulting, indemnification, severance
or termination agreements or arrangements between UCP and any current or former employee, officer or director of UCP, nor does
UCP have any general severance plan or policy.

 

4.10.         ERISA
Compliance; Excess Parachute Payments. UCP does not, and since its inception never has, maintained or contributed to any “employee
pension benefit plans” (as defined in Section 3(2) of ERISA), “employee welfare benefit plans” (as defined in
Section 3(1) of ERISA) or any other UCP Benefit Plan for the benefit of any current or former employees, consultants, officers
or directors of UCP.

  

    	-16-

    	 

    

  

4.11.         Litigation. There
is no Action against or affecting UCP or any subsidiary or any of their respective properties pending or, to the best knowledge
of UCP, currently threatened, which (a) adversely affects or challenges the legality, validity or enforceability of either of
this Agreement or the Shares or (b) could, if there were an unfavorable decision, individually or in the aggregate, have or reasonably
be expected to result in a UCP Material Adverse Effect. Neither UCP nor any subsidiary, nor any director or officer thereof (in
his or her capacity as such), is or has been the subject of any Action involving a claim or violation of or liability under federal
or state securities laws or a claim of breach of fiduciary duty.

 

4.12.         Compliance
with Applicable Laws. UCP is in compliance with all applicable Laws, including those relating to occupational health and safety,
the environment, export controls, trade sanctions and embargoes, except for instances of noncompliance that, individually and
in the aggregate, have not had and would not reasonably be expected to have a UCP Material Adverse Effect. UCP has not received
any written communication during the past two years from a Governmental Entity that alleges that UCP is not in compliance in any
material respect with any applicable Law. UCP is in compliance with all effective requirements of the Sarbanes-Oxley Act of 2002,
as amended, and the rules and regulations thereunder, that are applicable to it, except where such noncompliance could not have
or reasonably be expected to result in a UCP Material Adverse Effect. This Section 4.13 does not relate to matters with respect
to Taxes, which are the subject of Section 4.9.

 

4.13.         Contracts. Except
as set forth in the SEC Reports, there are no Contracts that are material to the business, properties, assets, condition (financial
or otherwise), results of operations or prospects of UCP taken as a whole. UCP is not in violation of or in default under (nor
does there exist any condition which upon the passage of time or the giving of notice would cause such a violation of or default
under) any Contract to which it is a party or by which it or any of its properties or assets is bound, except for violations or
defaults that would not, individually or in the aggregate, reasonably be expected to result in a UCP Material Adverse Effect.

 

4.14.         Title
to Properties. UCP has good title to, or valid leasehold interests in, all of its properties and assets used in the conduct
of its businesses. All such assets and properties, other than assets and properties in which UCP has leasehold interests, are
free and clear of all Liens, except for Liens that, in the aggregate, do not and will not materially interfere with the ability
of UCP to conduct business as currently conducted. UCP has complied in all material respects with the terms of all material leases
to which it is a party and under which it is in occupancy, and all such leases are in full force and effect. UCP enjoys peaceful
and undisturbed possession under all such material leases.

 

4.15.         Intellectual
Property. UCP does not own, nor is validly licensed nor otherwise has the right to use, any Intellectual Property Rights. No
claims are pending or, to the knowledge of UCP, threatened that UCP is infringing or otherwise adversely affecting the rights
of any person with regard to any Intellectual Property Right.

 

4.16.         Labor
Matters. There are no collective bargaining or other labor union agreements to which UCP is a party or by which it is bound.
No material labor dispute exists or, to the knowledge of UCP, is imminent with respect to any of the employees of UCP.

  

    	-17-

    	 

    

  

4.17.         Transactions
With Affiliates and Employees. Except as set forth in the SEC Reports, none of the officers or directors of UCP and, to the
knowledge of UCP, none of the employees of UCP is presently a party to any transaction with UCP or any subsidiary (other than
for services as employees, officers and directors), including any Contract 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 UCP, any entity in which any officer, director, or any such employee
has a substantial interest or is an officer, director, trustee or partner.

 

4.18.         Internal
Accounting Controls. UCP maintains a system of internal accounting controls sufficient to provide reasonable assurance that
(a) transactions are executed in accordance with management’s general or specific authorizations, (b) transactions are recorded
as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to
maintain asset accountability, (c) access to assets is permitted only in accordance with management’s general or specific
authorization, and (d) the recorded accountability for assets is compared with the existing assets at reasonable intervals and
appropriate action is taken with respect to any differences. UCP has established disclosure controls and procedures for UCP and
designed such disclosure controls and procedures to ensure that material information relating to UCP is made known to the officers
by others within those entities. UCP’s officers have evaluated the effectiveness of UCP’s controls and procedures.
Since May31, 2013, there have been no significant changes in UCP’s internal
controls or, to UCP’s knowledge, in other factors that could significantly affect UCP’s internal controls.

 

4.19.         Solvency. Based
on the financial condition of UCP as of the Closing Date (and assuming that the Closing shall have occurred), (a) UCP’s
fair saleable value of its assets exceeds the amount that will be required to be paid on or in respect of UCP’s existing
debts and other liabilities (including known contingent liabilities) as they mature, (b) UCP’s assets do not constitute
unreasonably small capital to carry on its business for the current fiscal year as now conducted and as proposed to be conducted,
including its capital needs, taking into account the particular capital requirements of the business conducted by UCP, and projected
capital requirements and capital availability thereof, and (c) the current cash flow of UCP, together with the proceeds UCP would
receive, were it to liquidate all of its assets, after taking into account all anticipated uses of the cash, would be sufficient
to pay all amounts on or in respect of its debt when such amounts are required to be paid. UCP does not intend to incur debts
beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on or in
respect of its debt).

 

4.20.         Application
of Takeover Protections. UCP has taken all necessary action, if any, in order to render inapplicable any control share acquisition,
business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover provision
under the UCP’s charter documents or the laws of its state of incorporation that is or could become applicable to the Shareholder
as a result of the Shareholder and UCP fulfilling their obligations or exercising their rights under this Agreement, including,
without limitation, the issuance of the Shares and the Shareholder’s ownership of the Shares.

 

4.21.         No
Additional Agreements. UCP does not have any agreement or understanding with the Shareholder with respect to the Transactions
other than as specified in this Agreement.

  

    	-18-

    	 

    

  

4.22.         Reserved.

  

4.23.         Disclosure. UCP
confirms that neither it nor any person acting on its behalf has provided the Shareholder or their agents or counsel with any
information that UCP believes constitutes material, non-public information except insofar as the existence and terms of the proposed
transactions hereunder may constitute such information and except for information that will be disclosed by UCP under a current
report on Form 8-K filed within four business days after the Closing. UCP understands and confirms that the Shareholder will rely
on the foregoing representations and covenants in effecting transactions in securities of UCP. All disclosure provided to the
Shareholder regarding UCP, its business and the Transactions, furnished by or on behalf of UCP (including UCP’s representations
and warranties set forth in this Agreement) is true and correct and does not contain any untrue statement of a material fact or
omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which
they were made, not misleading.

 

4.24.         Certain
Registration Matters. Except as set forth in the UCP Disclosure Letter, UCP has not granted or agreed to grant to any person
any rights (including “piggy-back” registration rights) to have any securities of UCP registered with the SEC or any
other governmental authority that have not been satisfied.

 

4.25.         Listing
and Maintenance Requirements. UCP is, and has no reason to believe that it will not in the foreseeable future continue to be,
in compliance with the listing and maintenance requirements for continued listing of the UCP Stock on the trading market on which
the UCP Stock are currently listed or quoted. The issuance and sale of the UCP Stock under this Agreement does not contravene
the rules and regulations of the trading market on which the UCP Stock are currently listed or quoted, and no approval of the
stockholders of UCP is required for UCP to issue and deliver to the Shareholder the UCP Stock contemplated by this Agreement.

 

4.26.         No
Undisclosed Events, Liabilities, Developments or Circumstances. Except as set forth in the UCP Disclosure Letter, no event,
liability, development or circumstance has occurred or exists, or is contemplated to occur with respect to UCP, its subsidiaries
or their respective businesses, properties, prospects, operations or financial condition, that would be required to be disclosed
by UCP under applicable securities laws on a registration statement on Form S-1 filed with the SEC relating to an issuance and
sale by UCP of its common stock and which has not been publicly announced.

 

4.27.         Foreign
Corrupt Practices. Neither UCP, nor to UCP’s knowledge, any director, officer, agent, employee or other person acting
on behalf of UCP has, in the course of its actions for, or on behalf of, UCP (a) used any corporate funds for any unlawful contribution,
gift, entertainment or other unlawful expenses relating to political activity; (b) made any direct or indirect unlawful payment
to any foreign or domestic government official or employee from corporate funds; (c) violated or is in violation of any provision
of the U.S. Foreign Corrupt Practices Act of 1977, as amended; or (d) made any unlawful bribe, rebate, payoff, influence payment,
kickback or other unlawful payment to any foreign or domestic government official or employee.

  

    	-19-

    	 

    

  

ARTICLE V

Deliveries

 

5.1.          Deliveries
of the Shareholder.

  

(a)          Concurrently
herewith the Shareholder are delivering to UCP and Kapital this Agreement executed by the Shareholder.

 

(b)          At
or prior to the Closing, the Shareholder shall deliver to UCP:

 

(i)          certificate(s)
representing the Kapital Stock in the amounts set forth on Annex A; and

 

(ii)         a
duly executed instrument of transfer for transfer by the Shareholder of the Kapital Stock in the amounts set forth on Annex A
to UCP.

 

5.2.          Deliveries
of UCP.

  

(a)          Concurrently
herewith, UCP is delivering Kapital and to the Shareholder, a copy of this Agreement executed by UCP.

 

(b)          At
or prior to the Closing, UCP shall deliver to Kapital:

 

(i)          a
certificate from UCP, signed by its Secretary or Assistant Secretary, certifying that the attached copies of the UCP Charter,
UCP Bylaws and resolutions of the Board of Directors of UCP approving this Agreement and the Transactions are all true, complete
and correct and remain in full force and effect;

 

(ii)         a
certificate of good standing of UCP dated within five (5) business days of Closing issued by the Secretary of State of Nevada;

 

(c)          Within
5 business days following the Closing, UCP shall deliver to the Shareholder certificate representing the Shares issued to the
Shareholder as set forth on Annex A.

 

5.3.          Deliveries
of the Kapital Companies.

  

(a)          Concurrently
herewith, Kapital is delivering to UCP and the Shareholder this Agreement executed by the Kapital Companies.

 

(b)          At
or prior to the Closing, Kapital shall deliver to UCP a certificate from Kapital, signed by its authorized officer certifying
that the attached copies of the Kapital Constituent Instruments and resolutions of the Board of Directors of Kapital approving
this Agreement and the Transactions are all true, complete and correct and remain in full force and effect.

 

(c)          At
Closing, Kapital shall deliver to UCP a legal opinion from Kapital’s legal counsel in Turkey, as required by Section 6.2(i)
below.

  

    	-20-

    	 

    

 

ARTICLE VI

Conditions to Closing

 

6.1.          UCP
Conditions Precedent. The obligations of the Shareholder and Kapital to enter into and complete the Closing are subject,
at the option of the Shareholder and the Kapital , to the fulfillment on or prior to the Closing Date of the following
conditions, any one or more of which may be waived by the Shareholder and Kapital in writing.

 

(a)          Representations
and Covenants. The representations and warranties of UCP contained in this Agreement shall be true in all material respects
on and as of the Closing Date with the same force and effect as though made on and as of the Closing Date. UCP shall have performed
and complied in all material respects with all covenants and agreements required by this Agreement to be performed or complied
with by UCP on or prior to the Closing Date. UCP shall have delivered to the Shareholder and Kapital a certificate, dated the
Closing Date, to the foregoing effect.

 

(b)          Litigation.
No action, suit or proceeding shall have been instituted before any court or governmental or regulatory body or instituted or
threatened by any governmental or regulatory body to restrain, modify or prevent the carrying out of the Transactions or to seek
damages or a discovery order in connection with such Transactions, or which has or may have, in the reasonable opinion of Kapital
or the Shareholder, a materially adverse effect on the assets, properties, business, operations or condition (financial or otherwise)
of UCP.

 

(c)          No
Material Adverse Change. There shall not have been any occurrence, event, incident, action, failure to act, or transaction
since May 31, 2013 which has had or is reasonably likely to cause a UCP Material Adverse Effect.

 

(d)          Post-Closing
Capitalization. At, and immediately after, the Closing, the authorized capitalization, and the number of issued and outstanding
shares of the capital stock of UCP shall be as indicated on a schedule to be delivered by the Parties at or prior to the Closing.

 

(e)          SEC
Reports. UCP shall have filed all reports and other documents required to be filed by it under the U.S. federal securities
laws through the Closing Date.

 

(f)          OTCQB
Quotation.UCP shall have maintained its status as a company whose common stock is quoted on the OTCQB and no reason shall
exist as to why such status shall not continue immediately following the Closing.

 

(g)          No
Suspensions of Trading in UCP Stock; Listing. Trading in the UCP Stock shall not have been suspended by the SEC or any trading
market (except for any suspensions of trading of not more than one trading day solely to permit dissemination of material information
regarding UCP) at any time since the date of execution of this Agreement, and the UCP Stock shall have been at all times since
such date listed for trading on a trading market.

 

(h)          Satisfactory
Completion of Due Diligence. Kapital and the Shareholder shall have completed their legal, accounting and business due diligence
of UCP and the results thereof shall be satisfactory to Kapital and the Shareholder in their sole and absolute discretion.

  

    	-21-

    	 

    

 

(i)          Deliveries.
The deliveries specified in Section 5.2 shall have been made by UCP.

 

6.2.          Shareholder
and Kapital Conditions Precedent.

 

The obligations of
UCP to enter into and complete the Closing is subject, at the option of UCP, to the fulfillment on or prior to the Closing Date
of the following conditions, any one or more of which may be waived by UCP in writing.

 

(a)          Representations
and Covenants. The representations and warranties of the Shareholder and Kapitalcontained in this Agreement shall be true
in all material respects on and as of the Closing Date with the same force and effect as though made on and as of the Closing
Date. The Shareholder and Kapital shall have performed and complied in all material respects with all covenants and agreements
required by this Agreement to be performed or complied with by the Shareholder and Kapitalon or prior to the Closing Date. The
Shareholder and Kapital shall have each delivered to UCP a certificate, dated the Closing Date, to the foregoing effect.

 

(b)          Litigation.
No action, suit or proceeding shall have been instituted before any court or governmental or regulatory body or instituted or
threatened by any governmental or regulatory body to restrain, modify or prevent the carrying out of the Transactions or to seek
damages or a discovery order in connection with such Transactions, or which has or may have, in the reasonable opinion of UCP,
a materially adverse effect on the assets, properties, business, operations or condition (financial or otherwise) of the Kapital
Companies.

 

(c)          No
Material Adverse Change. There shall not have been any occurrence, event, incident, action, failure to act, or transaction
since June 30, 2013 which has had or is reasonably likely to cause a Kapital Material Adverse Effect.

 

(d)          Post-Closing
Capitalization. At, and immediately after, the Closing, the authorized capitalization, and the number of issued and outstanding
shares of the capital stock of UCP shall be as indicated on a schedule to be delivered by the Parties at or prior to the Closing.

 

(e)          Satisfactory
Completion of Due Diligence.UCP shall have completed its legal, accounting and business due diligence of Kapitaland the Shareholder
and the results thereof shall be satisfactory to UCP in its sole and absolute discretion.

 

(f)          Deliveries.
The deliveries specified in Section 5.1 and Section 5.3 shall have been made by the Shareholder and the Kapital Companies, respectively.

 

(g)          Delivery
of Audit Report and Financial Statements. Kapital shall have completed and delivered to UCP the Kapital Financial Statements
and shall have received an audit report from an independent audit firm. The form and substance of the Kapital Financial Statements
shall be satisfactory to UCP in its sole and absolute discretion.

 

(h)          Audited
Financial Statements and Form 10 Disclosure. Kapital shall have provided UCP and the Shareholder with reasonable assurances
that UCP will be able to comply with its obligation to file a current report on Form 8-K within four (75) business days following
the Closing containing the requisite financial statements of Kapital.

  

    	-22-

    	 

    

 

ARTICLE VII

Covenants

 

7.1.          Preparation
of SEC Filings. UCP shall file, within four (75) business days of the Closing Date, a current report on Form 8-K and attach
as exhibits all relevant agreements with the SEC disclosing the terms of this Agreement and other requisite disclosure regarding
the Transactions and including the requisite audited consolidated financial statements of Kapital and the requisite disclosure
regarding Kapital.

 

7.2.          Public
Announcements. UCP and Kapital will consult with each other before issuing, and provide each other the opportunity to review
and comment upon, any press releases or other public statements with respect to this Agreement and the Transactions and shall
not issue any such press release or make any such public statement prior to such consultation, except as may be required by applicable
Law, court process or by obligations pursuant to any listing agreement with any national securities exchanges.

 

7.3.          Fees
and Expenses. All fees and expenses incurred in connection with this Agreement shall be paid by the Party incurring such fees
or expenses, whether or not this Agreement is consummated.

 

7.4.          Continued
Efforts. Each Party shall use commercially reasonable efforts to (a) take all action reasonably necessary to consummate the
Transactions, and (b) take such steps and do such acts as may be necessary to keep all of its representations and warranties true
and correct as of the Closing Date with the same effect as if the same had been made, and this Agreement had been dated, as of
the Closing Date.

 

7.5.          Exclusivity. Kapital
and the Shareholder shall not (a) solicit, initiate, or encourage the submission of any proposal or offer from any person relating
to the acquisition of any capital stock or other voting securities of Kapital, or any assets of Kapital(including any acquisition
structured as a merger, consolidation, share exchange or other business combination), (b) participate in any discussions or negotiations
regarding, furnish any information with respect to, assist or participate in, or facilitate in any other manner any effort or
attempt by any person to do or seek any of the foregoing, or (c) take any other action that is inconsistent with the Transactions
and that has the effect of avoiding the Closing contemplated hereby. Kapital and the Shareholder shall notify UCP immediately
if any person makes any proposal, offer, inquiry, or contact with respect to any of the foregoing.

 

7.6.          Furnishing
of Information. As long as the Shareholder own the Shares, UCP covenants to timely file (or obtain extensions in respect thereof
and file within the applicable grace period) all reports required to be filed by UCP after the date hereof pursuant to the Exchange
Act. As long as the Shareholder own the Shares, if UCP is not required to file reports pursuant to such laws, it will prepare
and furnish to the Shareholder and make publicly available in accordance with Rule 144(c) promulgated by the SEC pursuant to the
Securities Act, such information as is required for the Shareholder to sell Shares under Rule 144. UCP further covenants that
it will take such further action as the Shareholder or any subsequent holder of Shares may reasonably request, all to the extent
required from time to time to enable such person to sell Shares without registration under the Securities Act within the limitation
of the exemptions provided by Rule 144.

  

    	-23-

    	 

    

  

7.7.          Access. From
the date of this Agreement until the Closing Date, each Party shall permit representatives of any other Party to have full access
to all premises, properties, personnel, books, records (including Tax records), contracts, and documents of or pertaining to such
Party.

 

7.8.          Preservation
of Business. From the date of this Agreement until the Closing Date, each of Kapital and UCP shall operate only in the ordinary
and usual course of business consistent with its past practices, and shall use reasonable commercial efforts to (a) preserve intact
its business organization, (b) preserve the good will and advantageous relationships with customers, suppliers, independent contractors,
employees and other Persons material to the operation of its business, and (c) not permit any action or omission that would cause
any of its representations or warranties contained herein to become inaccurate or any of its covenants to be breached in any material
respect.

 

ARTICLE VIII

Miscellaneous

 

8.1.          Notices. All
notices, requests, claims, demands and other communications under this Agreement shall be in writing and shall be deemed given
upon receipt by the Parties at the following addresses (or at such other address for a Party as shall be specified by like notice):

 

If to UCP, to:

 

14 Wall Street, 20th
Floor

New York, NY 10005

Attention: Siva Pillarisetty,
CFO/Secretary

Facsimile:
212-618-1705

 

With a copy to:

 

Centarus Legal Services, PC

1821 Walden Office Square, Suite
400, Schaumburg, IL 60173

Attention: Louis Amatucci Esq.

Facsimile: 847-232-3370

 

If to Kapital, to:

 

Kapital Yonetim Hizmet Ve Gayr.
Yat. San. Tic. Ltd. Sirketi

 

Dereboyu Caddesi, Uphill Towers

A Block, 17th Floor,
Suite:107, Atasehir, 34758, Istanbul-Turkey

Attention:
Erdogan Cetin

Facsimile: +90-216-688-0435

 

    	-24-

    	 

    

 

If to the Shareholder at the addresses
set forth in Annex A hereto.

 

8.2.          Amendments;
Waivers; No Additional Consideration. No provision of this Agreement may be waived or amended except in a written instrument
signed by Kapital, UCP and the Shareholder. No waiver of any default with respect to any provision, condition or requirement of
this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any
other provision, condition or requirement hereof, nor shall any delay or omission of any Party to exercise any right hereunder
in any manner impair the exercise of any such right. No consideration shall be offered or paid to the Shareholder to amend or
consent to a waiver or modification of any provision of any Transaction Document unless the same consideration is also offered
to all Shareholder who then hold any of the Shares.

 

8.3.          Replacement
of Securities. If any certificate or instrument evidencing any Shares is mutilated, lost, stolen or destroyed, UCP shall issue
or cause to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution therefor,
a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to UCP of such loss, theft or destruction
and customary and reasonable indemnity, if requested. The applicants for a new certificate or instrument under such circumstances
shall also pay any reasonable third-party costs associated with the issuance of such replacement Shares. If a replacement certificate
or instrument evidencing any Shares is requested due to a mutilation thereof, UCP may require delivery of such mutilated certificate
or instrument as a condition precedent to any issuance of a replacement.

 

8.4.          Remedies. In
addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, the Shareholder,
UCP and Kapitalwill be entitled to specific performance under this Agreement. The Parties agree that monetary damages may not
be adequate compensation for any loss incurred by reason of any breach of obligations described in the foregoing sentence and
hereby agrees to waive in any action for specific performance of any such obligation the defense that a remedy at law would be
adequate.

 

8.5.          Limitation
of Liability. Notwithstanding anything herein to the contrary, each of UCP and Kapitalacknowledges and agrees that the liability
of the Shareholder arising directly or indirectly, under any Transaction Document of any and every nature whatsoever shall be
satisfied solely out of the assets of the Shareholder, and that no trustee, officer, other investment vehicle or any other affiliate
of the Shareholder or any investor, shareholder or holder of shares of beneficial interest of the Shareholder shall be personally
liable for any liabilities of the Shareholder.

 

8.6.          Interpretation. When
a reference is made in this Agreement to a Section, such reference shall be to a Section of this Agreement unless otherwise indicated.
Whenever the words “include”, “includes” or “including” are used in this Agreement, they shall
be deemed to be followed by the words “without limitation”.

 

8.7.          Severability. If
any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule or Law, or public
policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the
economic or legal substance of the Transactions is not affected in any manner materially adverse to any Party. Upon such determination
that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith
to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to
the end that the Transactions are fulfilled to the extent possible.

  

    	-25-

    	 

    

  

8.8.          Counterparts;
Facsimile Execution. This Agreement may be executed in one or more counterparts, all of which shall be considered one and the
same agreement and shall become effective when one or more counterparts have been signed by each of the Parties and delivered
to the other Parties. Facsimile execution and delivery of this Agreement is legal, valid and binding for all purposes.

 

8.9.          Entire
Agreement; Third Party Beneficiaries. This Agreement, taken together with the Kapital
Disclosure Letter and UCP Disclosure Letter, (a) constitute the entire agreement and supersede all prior agreements and
understandings, both written and oral, among the Parties with respect to the Transactions and (b) are not intended to confer upon
any person other than the Parties any rights or remedies.

 

8.10.         Governing
Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York, regardless of
the laws that might otherwise govern under applicable principles of conflicts of laws thereof, except to the extent the laws of
Nevada are mandatorily applicable to the Transactions.

 

8.11.         Survival. Each
of the representations and warranties made herein by UCP, Kapitaland the Shareholder shall survive the Closing for a period terminating
twenty-four months after the date of the Closing.

 

8.12.         Assignment. Neither
this Agreement nor any of the rights, interests or obligations under this Agreement shall be assigned, in whole or in part, by
operation of law or otherwise by any of the Parties without the prior written consent of each of the other Parties. Any purported
assignment without such consent shall be void. Subject to the preceding sentences, this Agreement will be binding upon, inure
to the benefit of, and be enforceable by, the Parties and their respective successors and assigns.

  

[Signature Page Follows]

 

    	-26-

    	 

    

 

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

 

	 	UCP HOLDINGS, INC.
	 	 
	 	By:	 
	 	Name: Siva Pillarisetty
	 	Title: CFO/Secretary/Director
	 	 
	 	KAPITAL Yonetim Hizmet Ve Gayrimenkul Yatirim Sanayi Ticaret Ltd. Sirketi
    
	 	 
	 	By:	 
	 	Name: Erdogan Cetin   
	 	Title: President
	 	Address: Dereboyu Caddesi, Uphill Towers, A Block, 17th Floor, Suite:107,
    34758, Atasehir, Istanbul-Turkey
	 	 
	 	SHAREHOLDER:
	 	 
	 	 
	 	Name: Erdogan Cetin  
	 	Address: 14 Wall Street, 20th Floor, Suite:2060,New York, 10005, NY

 

    	 

    	 

    

 

ANNEX A

 

Shareholder of Kapital

  

	Name and Address of Shareholder	 	Number of
 Shares of
 Kapital Stock
 Exchanged	 	 	Percentage of
 Total Shares of
 Kapital Stock	 	 	Number of
 Shares of
 UCP Stock
 Received	 
	 	 	 	 	 	 	 	 	 	 
	Erdogan Cetin
 14 Wall Street, 20th Floor, Suite:2060, New 

York, 10005, NY-US
	 	 	2,040,000,000	 	 	 	51	%	 	 	36,500,000	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL	 	 	 	 	 	 	51	%	 	 	 	 

 

    	 

    	 

    

 

ANNEX B

 

Definitions

 

“Action”
means any action, suit, inquiry, notice of violation, proceeding (including any partial proceeding such as a deposition) or investigation
pending or threatened in writing before or by any court, arbitrator, governmental or administrative agency, regulatory authority
(federal, state, county, local or foreign), stock market, stock exchange or trading facility.

 

“Agreement”
has the meaning set forth in the Preamble of this Agreement.

 

“Closing”
has the meaning set forth in Section 1.2 of this Agreement.

 

“Closing
Date” has the meaning set forth in Section 1.2 of this Agreement.

 

“Consent”
means any material consent, approval, license, permit, order or authorization.         

 

“Contract”
means any contract, lease, license, indenture, note, bond, agreement, permit, concession, franchise or other instrument.

 

“Kapital”
has the meaning set forth in the Preamble of this Agreement.

 

“Directed
Selling Effort” has the meaning set forth in Section 2.14 of this Agreement.

 

“Environmental
Laws” has the meaning set forth in Section 3.29(c) of this Agreement.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

“Governmental
Entity” means any federal, state, local or foreign government or any court of competent jurisdiction, administrative
agency or commission or other governmental authority or instrumentality, domestic or foreign.

 

“Kapital”
has the meaning set forth in the Preamble of this Agreement.

 

“Kapital
Benefit Plans” has the meaning set forth in Section 3.7 of this Agreement.

 

“Kapital
Constituent Instruments” means the Certificate of Incorporation and Memorandum and Articles of Association of Kapital
and such other constituent instruments of Kapital as may exist, each as amended to the date of this Agreement.

 

“Kapital
Disclosure Letter” means the letter delivered from Kapital to UCP concurrently herewith.

 

“Kapital
Financial Statements” has the meaning set forth in the Section 3.15 of this Agreement.

 

    	 

    	 

    

 

“Kapital
Material Adverse Effect” has the meaning set forth in Section 3.1 of this Agreement.

 

“Kapital
Stock” has the meaning set forth in the Background Section of this Agreement.

 

“Intellectual
Property Right” means any patent, patent right, trademark, trademark right, trade name, trade name right, service mark,
service mark right, copyright and other proprietary intellectual property right and computer program.

 

“Law”
means any statute, law, ordinance, rule, regulation, order, writ, injunction, judgment, or decree.

 

“Lien”
means any lien, security interest, pledge, equity and claim of any kind, voting trust, stockholder agreement, restrictions on
transfer, adverse claims of any nature, or other encumbrance.

 

 

“Party”
has the meaning set forth in the Preamble of this Agreement.

 

“SEC”
means the Securities and Exchange Commission.

 

“SEC Reports”
has the meaning set forth in Section 4.6(a) of this Agreement.

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

“Shareholder”
has the meaning set forth in the Preamble of this Agreement.

 

“Shares”
has the meaning set forth in the Background Section of this Agreement.

 

“Taxes”
means all forms of taxation, whenever created or imposed, and whether of the United States or elsewhere, and whether imposed by
a local, municipal, governmental, state, foreign, federal or other Governmental Entity, or in connection with any agreement with
respect to Taxes, including all interest, penalties and additions imposed with respect to such amounts.

 

“Tax Return”
means all federal, state, local, provincial and foreign Tax returns, declarations, statements, reports, schedules, forms and information
returns and any amended Tax return relating to Taxes.

 

“Transactions”
has the meaning set forth in Section 1.2 of this Agreement.

 

“Transaction
Documents” means this Agreement and any other documents or agreements executed in connection with the Transactions.

 

“UCP”
has the meaning set forth in the Preamble of this Agreement.

 

    	 

    	 

    

 

“UCP Benefit
Plans” has the meaning set forth in the Section 4.10 of this Agreement.

 

“UCP Bylaws”
means the Bylaws of UCP, as amended to the date of this Agreement.

 

“UCP Charter”
means the Articles of Incorporation of UCP, as amended to the date of this Agreement.

 

“UCP Disclosure
Letter” means the letter delivered from UCP to Kapital concurrently herewith.

 

“UCP Financial
Statements” has the meaning set forth in the Section 4.8 of this Agreement.

 

“UCP Material
Adverse Effect” has the meaning set forth in the Section 4.1 of this Agreement.

 

“UCP Stock”
has the meaning set forth in the Background Section of this Agreement.

 

    	 

    	 

    

 

ANNEX C

 

Accredited Investor Representations

 

Shareholder, indicating that it is an
“accredited investor” within the meaning of Rule 501 under the Securities Act (“Accredited Investor”),
further represents and warrants to UCP as follows:

 

		1.	Such person or entity
has sufficient knowledge and experience in finance, securities, investments and other business matters to be able to protect Shareholder’s
interests in connection with the transactions contemplated by this Agreement.

 

		2.	Such person or entity
has consulted, to the extent that it has deemed necessary, with its tax, legal, accounting and financial advisors concerning its
investment in the UCP Stock.

 

		3.	Such person or entity
understands the various risks of an investment in the UCP Stock and can afford to bear such risks for an indefinite period of
time, including, without limitation, the risk of losing its entire investment in the UCP Stock.

 

		4.	Such person or entity
has had access to UCP’s publicly filed reports with the SEC.

 

		5.	Such person or entity
has been furnished during the course of the transactions contemplated by this Agreement with all other public information regarding
UCP that such person or entity has requested and all such public information is sufficient for such person or entity to evaluate
the risks of investing in the UCP Stock.

 

		6.	Such person or entity
has been afforded the opportunity to ask questions of and receive answers concerning UCP and the terms and conditions of the issuance
of the UCP Stock.

 

		7.	Such person or entity
is not relying on any representations and warranties concerning UCP made by UCP or any officer, employee or agent of UCP, other
than those contained in this Agreement.

 

		8.	Such person or entity
is acquiring the UCP Stock for such person’s or entity’s, as the case may be, own account, for investment and not
for distribution or resale to others.

 

		9.	Such person or entity
will not sell or otherwise transfer the UCP Stock, unless either (a) the transfer of such securities is registered under the Securities
Act or (b) an exemption from registration of such securities is available.

 

		10.	Such person or entity
understands and acknowledges that UCP is under no obligation to register the UCP Stock for sale under the Securities Act.

 

		11.	Such person or entity
consents to the placement of a legend on any certificate or other document evidencing the UCP Stock substantially in the form
set forth in Section 2.14.

 

		12.	Such person or entity
represents that the address furnished on its signature page to this Agreement and in Annex A is the principal residence
if he is an individual or its principal business address if it is a corporation or other entity.

 

    	 

    	 

    

 

		13.	Such person or entity
understands and acknowledges that the UCP Stock has not been recommended by any federal or state securities commission or regulatory
authority, that the foregoing authorities have not confirmed the accuracy or determined the adequacy of any information concerning
UCP that has been supplied to such person or entity and that any representation to the contrary is a criminal offense.

 

		14.	Such person or entity
acknowledges that the representations, warranties and agreements made by such person or entity herein shall survive the execution
and delivery of this Agreement and the purchase of the UCP Stock.

 

    	 

    	 

    

 

ANNEX D

 

Non-U.S. Person Representations

 

Shareholder, indicating that it is not
a U.S. person, further represents and warrants to UCP as follows:

 

		1.	At the time of (a) the
offer by UCP and (b) the acceptance of the offer by such person or entity, of the UCP Stock, such person or entity was outside
the United States.

 

		2.	No offer to acquire
the UCP Stock or otherwise to participate in the transactions contemplated by this Agreement was made to such person or entity
or its representatives inside the United States.

 

		3.	Such person or entity
is not purchasing the UCP Stock for the account or benefit of any U.S. person, or with a view towards distribution to any U.S.
person, in violation of the registration requirements of the Securities Act.

 

		4.	Such person or entity
will make all subsequent offers and sales of the UCP Stock either (x) outside of the United States in compliance with Regulation
S; (y) pursuant to a registration under the Securities Act; or (z) pursuant to an available exemption from registration under
the Securities Act. Specifically, such person or entity will not resell the UCP Stock to any U.S. person or within the United
States prior to the expiration of a period commencing on the Closing Date and ending on the date that is one year thereafter (the
“Distribution Compliance Period”), except pursuant to registration under the Securities Act or an exemption from registration
under the Securities Act.

 

		5.	Such person or entity
is acquiring the UCP Stock for Shareholder’s own account, for investment and not for distribution or resale to others.

 

		6.	Such person or entity
has no present plan or intention to sell the UCP Stock in the United States or to a U.S. person at any predetermined time, has
made no predetermined arrangements to sell the UCP Stock and is not acting as an underwriter, dealer or other person who participates,
pursuant to a contractual arrangement, in the distribution of the securities offered or sold in reliance on Regulation S.

 

		7.	Neither such person
or entity, its affiliates nor any person acting on behalf of such person or entity, has entered into, has the intention of entering
into, or will enter into any put option, short position or other similar instrument or position in the U.S. with respect to the
UCP Stock at any time after the Closing Date through the Distribution Compliance Period except in compliance with the Securities
Act.

 

		8.	Such person or entity
consents to the placement of a legend on any certificate or other document evidencing the UCP substantially in the form set forth
in Section 2.14.

 

		9.	Such person or entity
is not acquiring the UCP Stock in a transaction (or an element of a series of transactions) that is part of any plan or scheme
to evade the registration provisions of the Securities Act.

 

    	 

    	 

    

 

		10.	Such person or entity
has sufficient knowledge and experience in finance, securities, investments and other business matters to be able to protect such
person’s or entity’s interests in connection with the transactions contemplated by this Agreement.

		 	 

		11.	Such person or entity
has consulted, to the extent that it has deemed necessary, with its tax, legal, accounting and financial advisors concerning its
investment in the UCP Stock.

		 	 

		12.	Such person or entity
understands the various risks of an investment in the UCP Stock and can afford to bear such risks for an indefinite period of
time, including, without limitation, the risk of losing its entire investment in the UCP Stock.

		 	 

		13.	Such person or entity
has had access to UCP’s publicly filed reports with the SEC.

		 	 

		14.	Such person or entity
has been furnished during the course of the transactions contemplated by this Agreement with all other public information regarding
UCP that such person or entity has requested and all such public information is sufficient for such person or entity to evaluate
the risks of investing in the UCP Stock.

		 	 

		15.	Such person or entity
has been afforded the opportunity to ask questions of and receive answers concerning UCP and the terms and conditions of the issuance
of the UCP Stock.

		 	 

		16.	Such person or entity
is not relying on any representations and warranties concerning UCP made by UCP or any officer, employee or agent of UCP, other
than those contained in this Agreement.

		 	 

		17.	Such person or entity
will not sell or otherwise transfer the UCP Stock, unless either (A) the transfer of such securities is registered under the Securities
Act or (B) an exemption from registration of such securities is available.

		 	 

		18.	Such person or entity
understands and acknowledges that UCP is under no obligation to register the UCP Stock for sale under the Securities Act.

		 	 

		19.	Such person or entity
represents that the address furnished on its signature page to this Agreement and in Annex A is the principal residence
if he is an individual or its principal business address if it is a corporation or other entity.

		 	 

		20.	Such person or entity
understands and acknowledges that the UCP Stock have not been recommended by any federal or state securities commission or regulatory
authority, that the foregoing authorities have not confirmed the accuracy or determined the adequacy of any information concerning
UCP that has been supplied to such person or entity and that any representation to the contrary is a criminal offense.

		 	 

		21.	Such person or entity
acknowledges that the representations, warranties and agreements made by such person or entity herein shall survive the execution
and delivery of this Agreement and the purchase of the UCP Stock.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00225-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00225-of-00352.parquet"}]]