Document:

EXHIBIT 10.05

 

LEASE AGREEMENT

 

THIS
LEASE AGREEMENT ("THE AGREEMENT") IS ENTERED BY AND BETWEEN "COPROPIEDAD ARTE Y DISENO", (THE "LESSOR")
REPRESENTED BY MR. FRANCISCO JAVIER MORENO SANCHEZ AND "GPI MEXICANA, S.A. DE C.V." (THE "LESSEE") REPRESENTED
BY MR. GREGORY SCOTT GRONAU, PURSUANT TO THE FOLLOWING RECITALS AND CLAUSES:

 

RECITALS

 

I The LESSOR represents:

 

a)     
That COPROPIEDAD ARTE Y DISENO is the name for commercial purposes used to identify the co- ownership over the land and
Building subject matter of this AGREEMENT. Such co-ownership is formed by Mr. Francisco Javier Moreno Sanchez jointly with his
wife Ms. Maria del Carmen Collado Bosch of Moreno; Ms. Gloria Maria Moreno Sanchez of Ruiz jointly with her husband Mr. Galo Ruiz
Moreno and Ms. Esperanza Bosch Tejeda widow of Collado.

 

b)     
That LESSOR holds title over the Industrial facility (The "BUILDING") which is the matter of this AGREEMENT and
identified as Building 1 located at Av. De fa Transformacion y Calle Samuel Ocaña Garcia Block # 2, Lot # 9,and Building
2 located Block # 2, in the Industrial Park in San Luis Rio Colorado Sonora., Mexico.

 

c)     
That the co-owners of COPROPIEDAD ARTE Y DISENO are duly registered before the Federal Registry of Taxpayers (RFC) MOSF
560128 797.

 

d)     
That Mr. Francisco Javier Moreno Sanchez has sufficient authority to execute this AGREEMENT on behalf of LESSOR as evidenced
in the Public Deed and whose authority has not been revoked or limited in any way.

 

e)     
That LESSOR has the intention to lease to LESSEE the BUILDING as identified in the recital I b), pursuant to the terms and
conditions contained in this AGREEMENT.

 

II The LESSEE represents:

 

a)     
That it is a Company duly organized and existing pursuant to the laws of Mexico as evidenced in Public Deed # 1,189 dated
October 23,1984, issued by Mr. Rafael Godoy Jaramillo Notary Public # 88, of San Luis Rio Colorado, Sonora, duly registered under
number 1052 Volume XVII, Section 5, of the Public Registry of Cominerce of San Luis Rio Colorado Sonora.

 

b)     
That its corporate purpose allows the execution of this AGREEMENT.

 

c)     
That it is duly registered before the Federal Registry of Taxpayers (RFC) with number GME841026H38.

 

d)     
That Mr Gregory Scott Gronau has sufficient authority to execute this AGREEMENT on behalf of LESS EE as evidenced in Public
deed number # 26183, dated August 27, 2009 passed before the faith of Notary Public # 54, Lic Silvia Cecilia Leyva Ramirez which
authority has not been revoked or limited in any way.

 

e)     
That LESSEE has the intention to lease from LESSOR the BUILDING, as identified in the recital I b) and in the Exhibits "A"
and "B" pursuant to the terms and conditions contained in this agreement.

 

     

     

    

 

THEREFORE, in consideration of their
mutual covenants and agreements, the parties agree to enter into this AGREEMENT, according to the terms and conditions, contained
in the following:

 

ARTICLES

 

ARTICLE 1. Definitions

 

1.1.           
LESSOR: "COPROPIEDAD ARTE Y DISEÑO" represented by Mr. Francisco Javier Moreno Sanchez.

 

1.2.           
LESSEE: "GPI MEXICANA, S.A. de C.V.", represented by its Sole Administrator Mr Gregory Scott Gronau.

 

1.3.           
The BULDING : The Industrial facility owned by LESSOR located Building # 1 at Av. De la Transformacion and Calle
Samuel Ocana Garcia Block # 2, Lot # 9,and Building # 2 is located at Block # 2, lot 10 in the Industrial Park in San Luis Rio
Colorado, Sonora, Mexico, which has been identified in the blue prints attached to this Agreement as Exhibit "A" and
described in the inventory attached to this Agreement as Exhibit "B".

 

1.4             
RENT: The amount that shall be paid by LESSEE to LESSOR in monthly installments during the term of this AGREEMENT
for the use and occupation of the BUILDING. The RENT was agreed by the parties in the fixed amount of USD $0.35 (thirty- five cents
of dollar legal currency of the United State of America) per square feet effectively used by LESSEE during the term of the AGREEMENT.
The RENT currently totals the amount of USD $28,140.00 (twenty-eight thousands one hundred forty dollars 00/100 legal currency
of the United States of America) based on the square fees of BUILDING that will be initially used by LESSEE.

 

1.5             
TERM.- The period in which the Lease AGREEMENT wil1 be in force. The term is 5 (five) years beginning as of
January 1, 2014 and ending on December 31, 2018. At the end of the TERtvl the LESEE will have the options set forth in Article
4.1 below.

 

ARTICLE 2. Purpose

 

2.1             
LESSOR agrees to lease to LESSEE who agrees to lease from LESSOR the BUILDING as of the beginning of the TERM of this AGREEMENT.

 

2.2             
The date of beginning of the TERM will be the date for commencement of the obligations under the AGREEMENT.

 

ARTICLE 3. Rent

 

3.1             
LESSEE shall pay the RENT
to LESSOR monthly and in advance during the first 11 (ten) natural days of each month at LESSEE's domicile located at Av.de l;a
Transformacion y Dr.Samuel Ocana, San Luis Rio Colorado Sonora Mexico.

 

3.2             
The RENT has been agreed by the Parties in the fixed amount of USD $0.35 (thirty-five cents of dollar legal currency of
the United States of America) per square feet of the BULDING effectively used by LESSEE for the TERM of the AGREEMENT. The RENT
currently totals the amount of USD $28,140.00 (twenty-eight thousands one hundred forty dollars 001\ 00 legal currency of
the United States of America) based on the 80,400 square fees of BUILDING that will be initially used by LESSEE. Such RENT shall
be paid at LESSOR's choice in US Dollars (legal currency of the United States of America) or in Mexican Pesos at the exchange rate
to comply with obligations published by Bank of Mexico on the date such RENT is paid plus the Value Added Tax (IV A).

 

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3.3             
LESSOR shall deliver the corresponding receipt to evidence payment of the RENT within the following 5 (five) days of receiving
such payment. Such receipt shall fulfill the requirements of the applicable tax laws and regulations in force on the date when
LESSEE makes such payment.

 

3.4             
If LESSOR occupies the BUILDING for a partial month the RENT shall be prorated.

 

ARTICLE 4. Term

 

4.1             
The TERM of this AGREEMENT is 5 (five) years. This AGREEMENT will begin its TERM on January 1,2014 and shall end
precisely on December 31, 2018. At the end of the TERM LESSEE shall have to its own discretion the following Options: (I) To renew
the AGREEMENT for I (one) year on the same terms and conditions having the right for terminating the AGREEMENT at any time giving
notice to LESSOR with 6 months in advance. (2) To reduce the space leased of the BUILDING and continuing with the AGREEMENT in
the same terms and conditions with the corresponding RENT reduction.

 

4.2             
LESSEE may exercise either Option set forth in 4.1 above by giving notice in writing to the LESSOR of its decision at least
30 (thirty) natural days in advance to the expiration of the TERM.

 

4.3             
If LESSEE continues occupying the BUILDING at the end of the TERM of the AGREEMENT, as determined in Article 4.1 without
having exercised any of the Options referred to in the above paragraph, LESSEE will pay to LESSOR the corresponding amount of RENT
during the TER1\1 it continues in possession of the leased BUILDING from the last day of the TERM of the AGREEMENT and until it
vacates the BUILDING, the payment referred to herein will not be consider an extension of the AGREEMENT.

 

ARTICLE 5. Building Use

 

5.1             
LESSEE will use the BUILDING to perform its main activities, which include without limitation, the manufacture of dice,
cards and chips, as well as any related activity.

 

5.2             
LESSEE agrees to use the BUILDING in accordance with this AGREEMENT and with any other law or regulation applicable to the
use of the BUILDING by LESSEE.

 

5.3             
LESSEE is allowed to introduce and store in the BUILDING those materials that are required or useful for the performance
of its manufacturing activities, even though they are classified as hazardous materials or residues, flammable materials or explosives.
LESSEE shall store and dispose them in accordance with industry standard procedures and local laws.

 

5.4             
LESSEE may only store trash temporarily within the BUILDING and shall arrange for regular pickup of trash at its expense.
LESSEE shall not burn any trash of any kind in or about the BUILDING.

 

ARTICLE 6. Insurance

 

6.1             
LESSEE shall obtain and maintain in force during the term of the AGREEMENT at its own expense a comprehensive insurance
policy (ies) from a recognized insurance company authorized to issue insurance in San Luis Rio Colorado Sonora.

 

6.2             
Such policy (ies) shall cover property damage of LESSOR and LESSEE. Civil liability (for injury to persons and property.
and for death of any person occurring in the leased BUILDING); for acts of God and for damages caused to the BUILDING or third
persons or Property for the storage of hazardous materials.

 

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6.2.1       
The Policy to cover property damage and civil liability shall insure LESSEE and LESSOR and such other agents and employees
of LESSOR, LESSOR's subsidiaries or affiliates or LESSOR'S assignees or any nominee of LESSOR holding any interest in the Leased
property, against liability for injury to persons and property and for death of any person occurring in or about the BUILDING.
The liability of such insurance shall be in the amount of no less than USDS400.000.00 (Four hundred thousand dollars legal currency
of the United States of America) or its equivalent in Mexican Currency at the exchange rate published by Bank of Mexico to comply
with obligations effective in the contracting date.

 

6.2.2       
The policy of insurance for fire, lighting, explosion, falling aircraft:, smoke windstorm eartquake, hail, vehicle damage,
volcanic eruption, strikes, civil commotion, vandalism, riots, malicious mischief, steam boiler or pressure object explosion if
applicable and flood insurance of the BUILDING shall be for a liability equivalent of USD $1'000,000.00 (One million dollars legal
currency of the United States of America) or its equivalent in Mexican Currency at the exchange rate published by Bank of Mexico
to comply with obligations effective in the contracting date.

 

6.3             
LESSEE shall obtain and maintain in force during the term of the AGREEMENT the insurance policy (ies) to cover the issues
mentioned in 6.2 above. Such Policy (ies) shall mention that it/they is/are not subject to cancellation or change until the termination
of the Lease AGREEMENT. The Policies together with copies or receipts for payment of the premiums thereof, shall be delivered to
LESSOR no more than (30) days following the execution of this AGREEMENT. All documents verifying the renewal of such policy (ies)
shall be delivered to LESSOR at least (30) days prior to the expiration of the term of such coverage. Prior to the commencement
date of the TERM each party shall procure and maintain the insurance covering its own liability and Property as each deems appropriate.

 

6.4             
Except for the Insurance upon LESSE's property, LESSOR and its beneficiaries shall be appointed irrevocably as beneficiaries
for any and all proceeds as their interest may appear.

 

ARTICLE 7. Installations & Tenant
Improvements

 

7.1             
LESSEE may at its expense, install on the leased BUILDING, such trade fixtures, equipment and furniture it may deem necessary,
provided that such items are installed and are removed without causing damage to the structural integrity of the BUILDING. Said
trade fixtures; equipment and furniture shall remain LESSEE'S property.

 

7.2             
LESSEE may perform improvements in the BUILDING considered, useful, necessary, or decorative, without prior written authorization
of LESSOR, provided that such improvements are installed and are removable without causing damage to the structure of the BUILDING.

 

7.3             
LESSEE shall repair any damage caused by the installation or removal of trade fixtures, equipment, furniture and improvements.

 

7.4             
LESSEE shall require LESSOR'S written consent, which LESSOR shall not unreasonably withhold, to make any structural modification
or alteration costing in excess of USD $100,000.00 (one hundred thousand dollars legal currency of the United States of
America) to the BUILDING. LESSOR may authorize changes necessary for the appropriate use of the BUILDING, which will be made at
LESSEE'S expense. LESSOR may at its election, directly or through a third party, perform, or authorize LESSEE to perform, the construction
including of any improvements that parties mutually agree are necessary for the appropriate use of the Premises, by a written authorization
of the blue prints detailing the improvements to be made. Concerning improvements LESSEE will have the rights conferred by Article
2717 and any other relevant articles of the Civil Code of the State of Sonora.

 

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ARTICLE 8. Maintenance and Repair

 

8.1             
After receipt of written notice from LESSEE, LESSOR at its own expense shall promptly and with minimum interference to the
operation of LESSEE proceed to repair defects which are necessary for the adequate functioning of the BUILDING e.g. structural
defects in the roof or exterior wall pursuant to Articles 2684 and 2685 of the Civil Code of the State of Sonora.

 

8.2             
The LESSEE shall be responsible for all minor repairs to the BUILDING.

 

ARTICLE 9. Subleasing and Assignment

 

9.1             
LESSEE will under no circumstances sublease all or part of the BUILDING; nor assign it to third parties, according to the
terms of Artic 2751 of the Civil Code of the State of Sonora, unless prior written authorization by LESSOR is given, which authorization
will not be unreasonably withheld; provided, however, that LESSEE may assign or sublease all or part of the BUILDING without LESSOR's
consent if LESSEE remains liable to LESSOR under this AGREEMENT.

 

9.2             
Nothwithstanding the above LESSEE may sublease or assign all or a part of the BUILDING to LESSEE's parent, subsidiary or
affiliates without having LESSOR's consent.

 

ARTICLE 10. Services

 

10.1         
LESSEE will have the right to
contract the utility services, which it considers necessary for the adequate operation of its facilities, such as telephone, electricity,
water, gas, which will be under its account.

 

10.           At AGREEMENT's termination and
before vacating the BUILDING, LESSEE shall provide evidence to the LESSOR that such services have been duly paid.

 

ARTICLE 11. Right of First Refusal,
Right of

Preference and Extent

 

11.1         
LESSEE has the right of first refusal referred to in Article 2717 of the Civil Code of the State of Sonora, in the event
LESSOR wishes to conveyor transfer any right it has over the BUILDING.

 

11.2         
LESSEE has the right of preference referred to in Article 2717 of the Civil Code of the State of Sonora, in the event that
the LESSEE is current with payment of the rent.

 

11.3         
LESSEE has the right to extend the AGREEMENT referred to in Article 2763 of the Civil Code of the State of Sonora.

 

ARTICLE 12. Damage or Destruction

 

12.1         
In the event that BUILDING are damaged by fire or other perils covered by insurance, LESSOR agrees to forthwith repair same
except as mentioned below and this AGREEMENT shall remain in fun force and effect except that LESSEE shall be entitled to a proportionate
reduction in the RENT from the date of damage and while such repairs are being made. Such proportionate reduction shall be based
upon the extent to which the damage and making of such repairs shall reasonably interfere with the business carried out by the
LESSEE in the BUILDING.

 

12.2         
In the event the BUILDING are damaged during the term of the AGREEMENT as a result of any other cause than the perils covered
by fife and extended coverage insurance, then LESSOR shall forthwith repair the same provided the extent of the destruction is
less than 25% of the full replacement cost of the BUILDING. In the event the destruction of the BUILDING is to an extent 25% or
more of the full replacement cost of the BUILDING then LESSOR shall have the option to:

 

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12.2.lTo repair or restore
such damage, this AGREEMENT continuing in full force and effect, but the RENT proportionately reduced as provided above or

 

12.2.2To give notice to LESSEE
at any time within (60) days after the damage, terminating this AGREEMENT as of the date specified in such notice, which .termination
date shall be no more than thirty (30) days after the giving of such notice. In this case the proportional RENT shall be paid up
to date of the termination. In the event of giving such notice, this AGREEMENT shall expire and all interest of LESEE in the BUILDING
shall terminate on the date so specified in such notice.

 

ARTICLE 13. Waiver and Indemnification

 

13.1         LESSOR is not responsible for thefts, accidents, fire, earthquake or acts of God, that may cause damage to the LESSEE, its
assets, employees, guests, the BUILDING, or third parties.

 

13.2         LESSEE will indemnify and hold harmless LESSOR for any damages caused to third parties on the BUILDING, and will defend
at LESSEE'S expense, any claim, lawsuit, or proceeding brought against LESSOR, because of its relationship as LESSOR & LESSEE,
unless those damages are caused by LESSOR.

 

ARTICLE 14. Taxes.

 

14.1         The parties are responsable to
pay their respective state, federal or municipal taxes, related with this AGREEMENT that according to the applicable legislation
correspond to them. To that effect LESSEE binds to pay each and everyone of the fiscal obligations of the Federation, State or
Municipality inherent to the industrial business or destiny given to the BUILDING, releasing the LESSOR from all obligation related
with the foregoing. The LESSOR on its part binds to cover all the federal, state or municipal taxes related with this AGREEMENT
to which it is bound in its capacity of owner of the BUILDING and LESSOR, releasing LESSEE from any obligation related with the
foregoing.

 

ARTICLE 15. Causes of Termination

 

15.1         The LESSOR can terminate this AGREEMENT, regardless of the causes established by the law, due to the causes established
in section 15.2 below; provided however in the event of default, the LESSOR shall notify LESSEE in writing that it is not complying
with an obligation of LESSEE under this AGREEMENT and LESSEE will have a term of 30 (thirty) calendar days as of the day in which
it received such notice to remedy such default.

 

15.2         Causes in which the LESSOR may terminate this AGREEMENT:

 

15.2.1   
Vacation or abandonment of the BUILDING.

 

15.2.2   
Consecutive non-payment of two monthly RENTS.

 

15.2.3   
Making modifications or tenant improvements in violation of this AGREEMENT.

 

15.2.4   
Subletting or assigning the BUILDING in violation of this AGREEMENT.

 

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15.3         Causes for which the LESSEE may terminate this AGREEMENT:

 

15.3.1   
In case that LESSOR does not allow LESSEE the use and enjoyment of the BUILDING.

 

15.3.2   
Due to the LESSOR's failure to make repairs.

 

15.3.2 For LESSOR's default
of any of its obligations under this AGREEMENT.

 

15.4         If the defaulting party does not cure its default during the period to Cure, the affected party may immediately terminate
this Agreement or claim specific performance:

 

15.5         This AGREEMENT may be terminated, at any time before the end of the TERM, by written consent of both parties.

 

ARTICLE 16. Dispute Resolution

 

16.1         For any conflict arising under this AGREEENT, or its interpretation, the parties will give written notice{9f the same to
the other party, thereafter, the parties will negotiate a resolution to the dispute in good faith. If after 15 days from the date
of receipt of such notice, Parties are unable to resolve the dispute, it will be submitted to arbitration as established in this
Article.

 

16.2         Any controversy or claim arising out of or relating to this AGREEMENT not resolved according to Clause 16.1 herein, shall
be submitted to the American Arbitration Association (AAA) to be resolved by arbitration in accordance with the rules of the AAA.

 

16.2.1   
There shall be one arbitrator appointed by mutual agreement of the parties. If the parties fail to agree on an arbitrator,
the arbitrator shall be appointed according to the procedures of the AAA.

 

16.2.2   
The place of arbitration shall be Las Vegas Nevada, United States of America.

 

16.2.3   
The language of the arbitration shall be English.

 

16.2.4   
The arbitration panel or the single arbitrator will apply the laws of the State of Sonora, Mexico.

 

16.2.5   
The prevailing party will be entitled to attorney's fees and arbitration costs from the losing party .

 

ARTICLE 17. Miscellaneous

 

17.1         
Entire Agreement. This AGREE_NT constitutes the entire agreement with respect to the matters described herein, and
supersedes any other oral or written agreement between the parties.

 

17.2         
Amendments The terms of this AGREE_NT may only be amended or modified by written agreement signed by the parties
or its authorized representatives.

 

17.3         
Consent.- Whenever the prior consent of a party, written or otherwise is required as a condition for any act by the
other party under this AGREE_NT, such party agrees not to arbitrarily withhold such consent.

 

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17.4         
Quiet Enjoyment.- LESSOR agrees that LESSEEE upon paying the RENT and all other charges provided for herein and upon
complying with all of the terms and provisions of the AGREEMENT shall lawfully and quietly occupy and enjoy the BUILDING during
the.TERM.

 

17.5         
Access to the BUILDING.- LESSOR or its authorized representative has the right to inspect the leased BUILDING at
any time during the normal business hours of LESSEE with 72 hours prior written notice and in emergencies at all times. For a period
commencing 90 days prior to the termination of this AGREEMENT, LESSOR shall have prior appointment access to the BUILDINGS for
the purpose of exhibiting it to prospect clients and may post announcements for sale or lease on the BUILDINGS.

 

17.6         
Controlling Language. This Agreement has been prepared in English. Any party can request its legal translation into
Spanish at its own expense.

 

17.7         
Applicable Law: It is agreed by the parties hereto that this Agreement shall be interpreted in accordance with the
laws of Mexico specially to the regulations of the Sonora State, Civil Code.

 

17.8         
Severability : In the event that any provision of this Agreement is held by a court of competent jurisdiction to
be unenforceable because it is invalid or in conflict with any law of any relevant jurisdiction, the validity of the remaining
provision shall not be affected, and the rights and obligations of the parties shall be construed and enforced as if the Agreement
did not contain the particular provision held to be unenforceable.

 

17.9         
Headings It is agreed by the parties hereto that the headings of the clauses herein have been included for convenience
only and do not form any part of the Agreement

 

17.10     
Notices: Any notice, communication, waiver, or consent, required or permitted to be given under this Agreement, or
the change of address which is being notified, shall be in Writing and delivered by prepaid first class mail, facsimile or by personal
delivery to the address of the relevant Party, and any notice so delivered shall be deemed to have been received. Notice of any
change of address shall be made to the other party as soon as such new address becomes effective. All such notices and communications
shall be effective: a) went sent by an overnight courier service of recognized standing, on the second business day following the
deposit with such service b)when delivered by hand, upon delivery; c)when faxed, upon confirmation of receipt; or d) by any other
means, upon receipt.

 

	LESSOR:	
        Attn.: Francisco Javier Moreno Sanchez

        Copropiedad Arte y Diseño.

        San Luis Rio Colorado, Sonora México

         

	LESSEE:	
        Attn: Gregory Scott Gronau

        GPI Mexicana, S.A. de C.Y.

        Av. de la Transformaci6n y calle Samuel Ocaña

        Parque Industrial, CP 83455

        San Luis Rio Colorado, Sonora Mexico

         

	With Copy to:	
        Chief Legal Officer

        Gaming Partners International Corporation

        1700 Industrial Road

        Las Vegas Nevada, 89102

        United States of America

         

 

 

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	LESSOR	 	LESSEE
	 	 	 
	 	 	 
	Copropiedad Arte y Diseño	 	GPI Mexicana S.A. de C.V.
	 	 	 
	Represented by: Francisco Javier Moreno Sánchez	 	Represented by Gregory Scott Gronau
	 	 	 
	WITNESS	 	WITNESS
	 	 	 
	 	 	 

  

Exhibit A

 

Drawing of leased portion building.

 

Exhibit B

 

Legal description.

 

    9EXHIBIT 10.31

 

PURCHASE
AGREEMENT

 

PURCHASE
AGREEMENT (the “Agreement”), dated as of March 22, 2016, by and between SOLIGENIX, INC., a Delaware
corporation (the “Company”), and LINCOLN PARK CAPITAL FUND, LLC, an Illinois limited liability company
(the “Investor”).

 

WHEREAS:

 

Subject
to the terms and conditions set forth in this Agreement, the Company wishes to sell to the Investor, and the Investor wishes to
buy from the Company, up to Twelve Million Dollars ($12,000,000) of the Company's common stock, par value $0.001 per share (the
"Common Stock"). The shares of Common Stock to be purchased hereunder are referred to herein as the "Purchase
Shares."

 

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

 

1.CERTAIN
DEFINITIONS. 

 

For
purposes of this Agreement, the following terms shall have the following meanings:

 

(a)“Accelerated
Purchase Share Amount” means, with respect to any Accelerated Purchase made pursuant to Section 2(b) hereof,
the number of Purchase Shares directed by the Company to be purchased by the Investor on an Accelerated Purchase Notice, which
number of Purchase Shares shall not exceed the lesser of (i) 300% of the number of Purchase Shares directed by the Company to
be purchased by the Investor pursuant to the corresponding Regular Purchase Notice for the corresponding Regular Purchase referred
to in Section 2(b) hereof (subject to the Purchase Share limitations contained in Section 2(a) hereof) and (ii)
the Accelerated Purchase Share Percentage multiplied by the trading volume of the Common Stock on the Principal Market during
normal trading hours on the Accelerated Purchase Date.

 

(b)“Accelerated
Purchase Date” means, with respect to any Accelerated Purchase made pursuant to Section 2(b) hereof, the Business
Day immediately following the applicable Purchase Date with respect to the corresponding Regular Purchase referred to in Section
2(b) hereof.

 

(c)“Accelerated
Purchase Notice” means, with respect to any Accelerated Purchase made pursuant to Section 2(b) hereof, an irrevocable
written notice from the Company to the Investor directing the Investor to buy a specified Accelerated Purchase Share Amount on
the applicable Accelerated Purchase Date pursuant to Section 2(b) hereof at the applicable Accelerated Purchase Price.

 

(d)“Accelerated
Purchase Share Percentage” means, with respect to any Accelerated Purchase made pursuant to Section 2(b) hereof,
0.30.

 

(e)“Accelerated
Purchase Price” means, with respect to any particular Accelerated Purchase made pursuant to Section 2(b) hereof, the
lower of (i) ninety-five percent (95%) of the VWAP during (A) the entire trading day on the Accelerated Purchase Date, if the
volume of shares of Common Stock traded on the Principal Market on the Accelerated Purchase Date has not exceeded the Accelerated
Purchase Share Volume Maximum, or (B) the portion of the trading day of the Accelerated Purchase Date (calculated starting at
the beginning of normal trading hours) until such time at which the volume of shares of Common Stock traded on the Principal Market
has exceeded the Accelerated Purchase Share Volume Maximum or (ii) the Closing Sale Price on the Accelerated Purchase Date (to
be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other
similar transaction).

 

     

     

    

 

(f)“Accelerated
Purchase Share Volume Maximum” means the number of shares of Common Stock traded on the Principal Market during normal
trading hours on the Accelerated Purchase Date equal to (i) the amount of shares of Common Stock properly directed by the Company
to be purchased on the Accelerated Purchase Notice, divided by (ii) the Accelerated Purchase Share Percentage (to be appropriately
adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction).

 

(g)
 “Available Amount” means, initially, Twelve Million Dollars ($12,000,000) in the aggregate, which amount
shall be reduced by the Purchase Amount each time the Investor purchases shares of Common Stock pursuant to Section 2 hereof.

 

(h)“Bankruptcy
Law” means Title 11, U.S. Code, or any similar federal or state law for the relief of debtors.

 

(i)“Business
Day” means any day on which the Principal Market is open for trading, including any day on which the Principal Market
is open for trading for a period of time less than the customary time.

 

(j)“Closing
Sale Price” means, for any security as of any date, the last closing sale price for such security on the Principal Market
as reported by the Principal Market.

 

(k)“Confidential
Information” means any information disclosed by either party to the other party, either directly or indirectly, in writing,
orally or by inspection of tangible objects (including, without limitation, documents, prototypes, samples, plant and equipment),
which is designated as "Confidential," "Proprietary" or some similar designation. Information communicated
orally shall be considered Confidential Information if such information is confirmed in writing as being Confidential Information
within ten (10) Business Days after the initial disclosure. Confidential Information may also include information disclosed to
a disclosing party by third parties. Confidential Information shall not, however, include any information which (i) was publicly
known and made generally available in the public domain prior to the time of disclosure by the disclosing party; (ii) becomes
publicly known and made generally available after disclosure by the disclosing party to the receiving party through no action
or inaction of the receiving party; (iii) is already in the possession of the receiving party at the time of disclosure by the
disclosing party as shown by the receiving party’s files and records immediately prior to the time of disclosure; (iv) is
obtained by the receiving party from a third party without a breach of such third party’s obligations of confidentiality;
(v) is independently developed by the receiving party without use of or reference to the disclosing party’s Confidential
Information, as shown by documents and other competent evidence in the receiving party’s possession; or (vi) is required
by law to be disclosed by the receiving party, provided that the receiving party gives the disclosing party prompt written notice
of such requirement prior to such disclosure and assistance in obtaining an order protecting the information from public disclosure.

 

(l)“Custodian”
means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

(m)“DTC”
means The Depository Trust Company, or any successor performing substantially the same function for the Company.

 

    	 	-2-	 

     

    

 

(n)“DWAC
Shares” means shares of Common Stock that are (i) issued in electronic form, (ii) freely tradable and transferable and
without restriction on resale and (iii) timely credited by the Company to the Investor’s or its designee’s specified
Deposit/Withdrawal at Custodian (DWAC) account with DTC under its Fast Automated Securities Transfer (FAST) Program, or any similar
program hereafter adopted by DTC performing substantially the same function.

 

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

 

(p)“Material
Adverse Effect” means any material adverse effect on (i) the enforceability of any Transaction Document, (ii) the
results of operations, assets, business or financial condition of the Company and its Subsidiaries, taken as a whole, other than
any material adverse effect that resulted exclusively from (A) any change in the United States or foreign economies or securities
or financial markets in general that does not have a disproportionate effect on the Company and its Subsidiaries, taken as a whole,
(B) any change that generally affects the industry in which the Company and its Subsidiaries operate that does not have a
disproportionate effect on the Company and its Subsidiaries, taken as a whole, (C) any change arising in connection with
earthquakes, hostilities, acts of war, sabotage or terrorism or military actions or any escalation or material worsening of any
such hostilities, acts of war, sabotage or terrorism or military actions existing as of the date hereof, (D) any action taken
by the Investor, its affiliates or its or their successors and assigns with respect to the transactions contemplated by this Agreement,
(E) the effect of any change in applicable laws or accounting rules that does not have a disproportionate effect on the Company
and its Subsidiaries, taken as a whole, or (F) any change resulting from compliance with terms of this Agreement or the consummation
of the transactions contemplated by this Agreement, or (iii) the Company’s ability to perform in any material respect
on a timely basis its obligations under any Transaction Document to be performed as of the date of determination.

 

(q)“Maturity
Date” means the first day of the month immediately following the thirty-six (36) month anniversary of the Commencement
Date.

 

(r)“PEA
Period” means the period commencing at 9:30 a.m., Eastern time, on the twentieth (20th) Business Day immediately
prior to the filing of any post-effective amendment to the Registration Statement (as defined herein) or New Registration Statement
(as such term is defined in the Registration Rights Agreement), and ending at 9:30 a.m., Eastern time, on the Business Day immediately
following, the effective date of any post-effective amendment to the Registration Statement (as defined herein) or New Registration
Statement (as such term is defined in the Registration Rights Agreement).

 

(s)“Person”
means an individual or entity including but not limited to any limited liability company, a partnership, a joint venture, a corporation,
a trust, an unincorporated organization and a government or any department or agency thereof.

 

(t)“Principal
Market” means the OTCQB operated by the OTC Markets Group, Inc. (or any nationally recognized successor thereto); provided,
however, that in the event the Company’s Common Stock is ever listed or traded on The NASDAQ Capital Market, The NASDAQ
Global Market, The NASDAQ Global Select Market, the New York Stock Exchange, the NYSE MKT, the NYSE Arca, the OTC Bulletin Board
or the OTCQX operated by the OTC Markets Group, Inc. (or any nationally recognized successor to any of the foregoing), then the
“Principal Market” shall mean such other market or exchange on which the Company’s Common Stock is then listed
or traded.

 

    	 	-3-	 

     

    

 

(u)“Purchase
Amount” means, with respect to any Regular Purchase or any Accelerated Purchase made hereunder, the portion of the Available
Amount to be purchased by the Investor pursuant to Section 2 hereof.

 

(v)“Purchase
Date” means, with respect to any Regular Purchase made pursuant to Section 2(a) hereof, the Business Day on which
the Investor receives by 5:00 p.m., Eastern time, of such Business Day a valid Regular Purchase Notice that the Investor is to
buy Purchase Shares pursuant to Section 2(a) hereof.

 

(w)“Purchase
Price” means, with respect to any Regular Purchase made pursuant to Section 2(a) hereof, the lower of: (i) the
lowest Sale Price on the applicable Purchase Date and (ii) the arithmetic average of the three (3) lowest Closing Sale Prices
for the Common Stock during the twelve (12) consecutive Business Days ending on the Business Day immediately preceding such Purchase
Date (in each case, to be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split or other
similar transaction that occurs on or after the date of this Agreement).

 

(x)“Regular
Purchase Notice” means, with respect to any Regular Purchase pursuant to Section 2(a) hereof, an irrevocable
written notice from the Company to the Investor directing the Investor to buy such applicable amount of Purchase Shares at the
applicable Purchase Price as specified by the Company therein on the Purchase Date.

 

(y)“Sale
Price” means any trade price for the shares of Common Stock on the Principal Market as reported by the Principal Market.

 

(z)“SEC”
means the U.S. Securities and Exchange Commission.

 

(aa)“Securities”
means, collectively, the Purchase Shares and the Commitment Shares.

 

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

 

(cc)“Subsidiary”
means any Person the Company wholly-owns or controls, or in which the Company, directly or indirectly, owns a majority of the
voting stock or similar voting interest, in each case that would be disclosable pursuant to Item 601(b)(21) of Regulation S-K
promulgated under the Securities Act.

 

(dd)“Transaction
Documents” means, collectively, this Agreement and the schedules and exhibits hereto, the Registration Rights Agreement
and the schedules and exhibits thereto, and each of the other agreements, documents, certificates and instruments entered into
or furnished by the parties hereto in connection with the transactions contemplated hereby and thereby.

 

(ee)
“Transfer Agent” means American Stock Transfer & Trust Co., or such other Person who is then serving as
the transfer agent for the Company in respect of the Common Stock.

 

(ff)“VWAP”
means in respect of an applicable Accelerated Purchase Date, the volume weighted average price of the Common Stock on the Principal
Market, as reported on the Principal Market.

 

    	 	-4-	 

     

    

 

2.
PURCHASE OF COMMON STOCK. 

 

Subject
to the terms and conditions set forth in this Agreement, the Company has the right to sell to the Investor, and the Investor has
the obligation to purchase from the Company, Purchase Shares as follows:

 

(a)Commencement
of Regular Sales of Common Stock. Upon the satisfaction of the conditions set forth in Sections 7 and 8 hereof
(the “Commencement” and the date of satisfaction of such conditions the “Commencement Date”)
and thereafter, the Company shall have the right, but not the obligation, to direct the Investor, by its delivery to the Investor
of a Regular Purchase Notice from time to time, to purchase up to One Hundred Thousand (100,000) Purchase Shares (each such purchase
a “Regular Purchase”), at the Purchase Price on the Purchase Date; provided, however, that (i)
the Regular Purchase may be increased to up to One Hundred Fifty Thousand (150,000) Purchase Shares, provided that the Closing
Sale Price of the Common Stock is not below $1.00 on the Purchase Date, (ii) the Regular Purchase may be increased to up to Two
Hundred Thousand (200,000) Purchase Shares, provided that the Closing Sale Price of the Common Stock is not below $1.50 on the
Purchase Date, and (iii) the Regular Purchase may be increased to up to Two Hundred Fifty Thousand (250,000) Purchase Shares,
provided that the Closing Sale Price of the Common Stock is not below $2.00 on the Purchase Date (all of which share and dollar
amounts shall be appropriately adjusted for any reorganization, recapitalization, non-cash dividend (excluding dividends of rights
and shares of capital stock issuable upon exercise of such rights), stock split or other similar transaction); provided,
further, however, that the Investor’s committed obligation under any single Regular Purchase shall not exceed
Seven Hundred Fifty Thousand Dollars ($750,000). If the Company delivers any Regular Purchase Notice for a Purchase Amount in
excess of the limitations contained in the immediately preceding sentence, such Regular Purchase Notice shall be void ab initio
to the extent of the amount by which the amount of Purchase Shares set forth in such Regular Purchase Notice exceeds the amount
of Purchase Shares which the Company is permitted to include in such Purchase Notice in accordance herewith, and the Investor
shall have no obligation to purchase such excess Purchase Shares in respect of such Regular Purchase Notice; provided that the
Investor shall remain obligated to purchase the amount of Purchase Shares which the Company is permitted to include in such Regular
Purchase Notice. The Company may deliver multiple Regular Purchase Notices to the Investor so long as at least one (1) Business
Day has passed since the most recent Regular Purchase was completed. Notwithstanding the foregoing, the Company shall not deliver
any Regular Purchase Notices during the PEA Period.

 

(b)Accelerated
Purchases. Subject to the terms and conditions of this Agreement, in addition to purchases of Purchase Shares as described
in Section 2(a) above, the Company shall also have the right, but not the obligation, to direct the Investor by the Company’s
delivery to the Investor of an Accelerated Purchase Notice from time to time, and the Investor thereupon shall have the obligation,
to buy Purchase Shares at the Accelerated Purchase Price on the Accelerated Purchase Date in an amount equal to the Accelerated
Purchase Share Amount (each such purchase, an “Accelerated Purchase”). The Company may deliver an Accelerated
Purchase Notice to the Investor only on a Purchase Date on which the Company also properly submitted a Regular Purchase Notice
for a Regular Purchase and the Closing Sale Price is not below $0.75 (to be appropriately adjusted for any reorganization, recapitalization,
non-cash dividend, stock split or other similar transaction and, effective upon the consummation of any such reorganization, recapitalization,
non-cash dividend, stock split or other similar transaction, the Closing Sale Price is not below the lower of (i) the adjusted
price and (ii) $0.75). If the Company delivers any Accelerated Purchase Notice for an Accelerated Purchase Share Amount in excess
of the limitations contained in the definition of Accelerated Purchase Share Amount, such Accelerated Purchase Notice shall be
void ab initio to the extent of the amount by which the number of Purchase Shares set forth in such Accelerated Purchase
Notice exceeds the Accelerated Purchase Share Amount which the Company is permitted to include in such Accelerated Purchase Notice
in accordance herewith (which shall be confirmed in an Accelerated Purchase Confirmation (defined below)), and the Investor shall
have no obligation to purchase such excess Purchase Shares in respect of such Accelerated Purchase Notice; provided that the Investor
shall remain obligated to purchase the Accelerated Purchase Share Amount which the Company is permitted to include in such Accelerated
Purchase Notice. Upon completion of each Accelerated Purchase Date, the Accelerated Purchase Share Amount and the applicable Accelerated
Purchase Price shall be set forth on a confirmation of the Accelerated Purchase to be provided to the Company by the Investor
(an “Accelerated Purchase Confirmation”).

 

    	 	-5-	 

     

    

 

(c)
Payment for Purchase Shares. For each Regular Purchase, the Investor shall pay to the Company an amount equal to the Purchase
Amount with respect to such Regular Purchase as full payment for such Purchase Shares via wire transfer of immediately available
funds on the same Business Day that the Investor receives such Purchase Shares, if such Purchase Shares are received by the Investor
before 1:00 p.m., Eastern time, or, if such Purchase Shares are received by the Investor after 1:00 p.m., Eastern time, the next
Business Day. For each Accelerated Purchase, the Investor shall pay to the Company an amount equal to the Purchase Amount with
respect to such Accelerated Purchase as full payment for such Purchase Shares via wire transfer of immediately available funds
on the third Business Day following the date that the Investor receives such Purchase Shares. If the Company or the Transfer Agent
shall fail for any reason or for no reason to electronically transfer any Purchase Shares as DWAC Shares in respect of a Regular
Purchase or Accelerated Purchase (as applicable) within five (5) Business Days following the receipt by the Company of the Purchase
Price or Accelerated Purchase Price, respectively, therefor in compliance with this Section 2(c), and if on or after such
Business Day the Investor purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction
of a sale by the Investor of such Purchase Shares that the Investor anticipated receiving from the Company in respect of such
Regular Purchase or Accelerated Purchase (as applicable), then the Company shall, within five (5) Business Days after the Investor’s
request, either (i) pay cash to the Investor in an amount equal to the Investor’s total purchase price (including brokerage
commissions, if any) for the shares of Common Stock so purchased (the “Cover Price”), at which point the Company’s
obligation to deliver such Purchase Shares as DWAC Shares shall terminate, or (ii) promptly honor its obligation to deliver to
the Investor such Purchase Shares as DWAC Shares and pay cash to the Investor in an amount equal to the excess (if any) of the
Cover Price over the total Purchase Price for such Regular Purchase plus the total Accelerated Purchase Price for such Accelerated
Purchase (as applicable). The Company shall not issue any fraction of a share of Common Stock upon any Regular Purchase or Accelerated
Purchase. If the issuance would result in the issuance of a fraction of a share of Common Stock, the Company shall round such
fraction of a share of Common Stock up or down to the nearest whole share. All payments made under this Agreement shall be made
in lawful money of the United States of America or wire transfer of immediately available funds to such account as the Company
may from time to time designate by written notice in accordance with the provisions of this Agreement. Whenever any amount expressed
to be due by the terms of this Agreement is due on any day that is not a Business Day, the same shall instead be due on the next
succeeding day that is a Business Day.

 

(d)Beneficial
Ownership Limitation. Notwithstanding anything to the contrary contained in this Agreement, the Company shall not issue
or sell, and the Investor shall not purchase or acquire, any shares of Common Stock under this Agreement which, when
aggregated with all other shares of Common Stock then beneficially owned by the Investor and its affiliates (as calculated pursuant
to Section 13(d) of the Exchange Act and Rule 13d-3 promulgated thereunder), would result in the beneficial ownership by the Investor
and its affiliates of more than 4.99% of the then issued and outstanding shares of Common Stock (the “Beneficial
Ownership Limitation”). Upon the written or oral request of the Investor, the Company shall promptly (but not later
than 24 hours) confirm orally or in writing to the Investor the number of shares of Common Stock then outstanding. The Investor
and the Company shall each cooperate in good faith in the determinations required hereby and the application hereof. The Investor’s
written certification to the Company of the applicability of the Beneficial Ownership Limitation, and the resulting effect thereof
hereunder at any time, shall be conclusive with respect to the applicability thereof and such result absent manifest error.

 

    	 	-6-	 

     

    

 

3.INVESTOR'S
REPRESENTATIONS AND WARRANTIES.

 

The
Investor represents and warrants to the Company that as of the date hereof and as of the Commencement Date:

 

(a)Investment
Purpose.  The Investor is acquiring the Securities as principal for its own account and not with a view to or for distributing
or reselling such Securities or any part thereof in violation of the Securities Act or any applicable state securities law, will
not distribute any of such Securities in violation of the Securities Act or any applicable state securities law and has no direct
or indirect arrangement or understandings with any other Persons to distribute or regarding the distribution of such Securities
in violation of the Securities Act or any applicable state securities law (this representation and warranty not limiting the Investor’s
right to sell the Securities at any time pursuant to the Registration Statement described herein or otherwise in compliance with
applicable federal and state securities laws).  The Investor is acquiring the Securities hereunder in the ordinary course
of its business.

 

(b)Accredited
Investor Status. The Investor is an "accredited investor" as that term is defined in Rule 501(a)(3) of Regulation
D promulgated under the Securities Act.

 

(c)Reliance
on Exemptions. The Investor understands that the Securities may be offered and sold to it in reliance on specific exemptions
from the registration requirements of United States federal and state securities laws and that the Company is relying in part
upon the truth and accuracy of, and the Investor's compliance with, the representations, warranties, agreements, acknowledgments
and understandings of the Investor set forth herein in order to determine the availability of such exemptions and the eligibility
of the Investor to acquire the Securities.

 

(d)Information.
The Investor understands that its investment in the Securities involves a high degree of risk. The Investor (i) is able to bear
the economic risk of an investment in the Securities including a total loss thereof, (ii) has such knowledge and experience in
financial and business matters that it is capable of evaluating the merits and risks of the proposed investment in the Securities
and (iii) has had an opportunity to ask questions of and receive answers from the officers of the Company concerning the financial
condition and business of the Company and others matters related to an investment in the Securities. Neither such inquiries nor
any other due diligence investigations conducted by the Investor or its representatives shall modify, amend or affect the Investor's
right to rely on the Company's representations and warranties contained in Section 4 below. The Investor has sought such accounting,
legal and tax advice as it has considered necessary to make an informed investment decision with respect to its acquisition of
the Securities.

 

(e)No
Governmental Review. The Investor understands that no U.S. federal or state agency or any other government or governmental
agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of an investment
in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

 

(f)Transfer
or Sale. The Investor understands that (i) the Securities may not be offered for sale, sold, assigned or transferred unless
(A) registered pursuant to the Securities Act or (B) an exemption exists permitting such Securities to be sold, assigned or transferred
without such registration; (ii) any sale of the Securities made in reliance on Rule 144 may be made only in accordance with the
terms of Rule 144 and further, if Rule 144 is not applicable, any resale of the Securities under circumstances in which the seller
(or the Person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the Securities Act)
may require compliance with some other exemption under the Securities Act or the rules and regulations of the SEC thereunder.

 

    	 	-7-	 

     

    

 

(g)Validity;
Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of the Investor and is
a valid and binding agreement of the Investor enforceable against the Investor in accordance with its terms, subject as to enforceability
to general principles of equity and to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar
laws relating to, or affecting generally, the enforcement of applicable creditors' rights and remedies.

 

(h)Residency.
The Investor is a resident of the State of Illinois.

 

(i)No
Short Selling. The Investor represents and warrants to the Company that at no time prior to the date of this Agreement has
any of the Investor, its agents, representatives or affiliates engaged in or effected, in any manner whatsoever, directly or indirectly,
any (i) "short sale" (as such term is defined in Rule 200 of Regulation SHO of the Exchange Act) of the Common Stock
or (ii) hedging transaction, which establishes a net short position with respect to the Common Stock.

 

4.REPRESENTATIONS
AND WARRANTIES OF THE COMPANY.

 

The
Company represents and warrants to the Investor that as of the date hereof and as of the Commencement Date:

 

(a)Organization
and Qualification. The Company and each of its Subsidiaries is an entity duly incorporated or otherwise organized, validly
existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite corporate
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 of its Subsidiaries 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 its Subsidiaries is
duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which
the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be
so qualified or in good standing, as the case may be, could not have or reasonably be expected to result in a Material Adverse
Effect and no proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit
or curtail such power and authority or qualification. The Company has no Subsidiaries except as set forth on Schedule 4(a)
hereof.

 

(b)Authorization;
Enforcement; Validity. (i) The Company has the requisite corporate power and authority to enter into and perform its obligations
under this Agreement, the Registration Rights Agreement and each of the other Transaction Documents, and to issue the Securities
in accordance with the terms hereof and thereof, (ii) the execution and delivery of the Transaction Documents by the Company and
the consummation by it of the transactions contemplated hereby and thereby, including without limitation, the issuance of the
Commitment Shares (as defined below in Section 5(e)) and the reservation for issuance and the issuance of the Purchase
Shares issuable under this Agreement, have been duly authorized by the Company's Board of Directors and no further consent or
authorization is required by the Company, its Board of Directors or its stockholders, (iii) this Agreement has been, and each
other Transaction Document shall be on the Commencement Date, duly executed and delivered by the Company and (iv) this Agreement
constitutes, and each other Transaction Document upon its execution on behalf of the Company, shall constitute, the valid and
binding obligations of the Company enforceable against the Company in accordance with their terms, except as such enforceability
may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or
similar laws relating to, or affecting generally, the enforcement of creditors' rights and remedies. The Board of Directors of
the Company has approved the resolutions (the “Signing Resolutions”) substantially in the form as set forth
as Exhibit C attached hereto to authorize this Agreement and the transactions contemplated hereby. The Signing Resolutions
are valid, in full force and effect and have not been modified or supplemented in any respect. The Company has delivered to the
Investor a true and correct copy of a unanimous written consent adopting the Signing Resolutions executed by all of the members
of the Board of Directors of the Company. Except as set forth in this Agreement, no other approvals or consents of the Company’s
Board of Directors, any authorized committee thereof, and/or stockholders is necessary under applicable laws and the Company’s
Restated Certificate of Incorporation and/or Bylaws to authorize the execution and delivery of this Agreement or any of the transactions
contemplated hereby, including, but not limited to, the issuance of the Commitment Shares and the issuance of the Purchase Shares.

 

    	 	-8-	 

     

    

 

(c)Capitalization.
As of the date hereof, the authorized capital stock of the Company is set forth in Schedule 4(c) hereof. Except as disclosed
in the SEC Documents (as defined below), (i) no shares of the Company's capital stock are subject to preemptive rights or any
other similar rights or any liens or encumbrances suffered or permitted by the Company, (ii) there are no outstanding debt securities,
(iii) there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever
relating to, or securities or rights convertible into, any shares of capital stock of the Company or any of its Subsidiaries,
or contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound
to issue additional shares of capital stock of the Company or any of its Subsidiaries or options, warrants, scrip, rights to subscribe
to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, any shares of capital
stock of the Company or any of its Subsidiaries, (iv) there are no agreements or arrangements under which the Company or any of
its Subsidiaries is obligated to register the sale of any of their securities under the Securities Act (except the Registration
Rights Agreement), (v) there are no outstanding securities or instruments of the Company or any of its Subsidiaries which contain
any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company
or any of its Subsidiaries is or may become bound to redeem a security of the Company or any of its Subsidiaries, (vi) there are
no securities or instruments containing anti-dilution or similar provisions that will be triggered by the issuance of the Securities
as described in this Agreement and (vii) the Company does not have any stock appreciation rights or "phantom stock"
plans or agreements or any similar plan or agreement. The Company has furnished to the Investor true and correct copies of the
Company's Restated Certificate of Incorporation, as amended and as in effect on the date hereof (the "Certificate of Incorporation"),
and the Company's Bylaws, as amended and as in effect on the date hereof (the "Bylaws"), and summaries of the
terms of all securities convertible into or exercisable for Common Stock, if any, and copies of any documents containing the material
rights of the holders thereof in respect thereto.

 

(d)Issuance
of Securities. Upon issuance and payment therefor in accordance with the terms and conditions of this Agreement, the Purchase
Shares shall be validly issued, fully paid and nonassessable and free from all taxes, liens, charges, restrictions, rights of
first refusal and preemptive rights with respect to the issue thereof, with the holders being entitled to all rights accorded
to a holder of Common Stock. Upon issuance in accordance with the terms and conditions of this Agreement, the Commitment Shares
(as defined below in Section 5(e)) shall be validly issued, fully paid and nonassessable and free from all taxes, liens,
charges, restrictions, rights of first refusal and preemptive rights with respect to the issue thereof, with the holders being
entitled to all rights accorded to a holder of Common Stock. 5,000,000 shares of Common Stock have been duly authorized and reserved
for issuance upon purchase under this Agreement as Purchase Shares. 500,000 shares of Common Stock (subject to equitable adjustment
for any reorganization, recapitalization, non-cash dividend, stock split or other similar transaction) have been duly authorized
and reserved for issuance as Additional Commitment Shares in accordance with this Agreement.

 

    	 	-9-	 

     

    

 

(e)No
Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the consummation by the
Company of the transactions contemplated hereby and thereby (including, without limitation, the reservation for issuance and issuance
of the Purchase Shares and the Commitment Shares) will not (i) result in a violation of the Certificate of Incorporation, any
Certificate of Designations, Preferences and Rights of any outstanding series of preferred stock of the Company or the Bylaws
or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default)
under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument
to which the Company or any of its Subsidiaries is a party, or result in a violation of any law, rule, regulation, order, judgment
or decree (including federal and state securities laws and regulations and the rules and regulations of the Principal Market applicable
to the Company or any of its Subsidiaries) or by which any property or asset of the Company or any of its Subsidiaries is bound
or affected, except in the case of conflicts, defaults, terminations, amendments, accelerations, cancellations and violations
under clause (ii), which could not reasonably be expected to result in a Material Adverse Effect. Neither the Company nor its
Subsidiaries is in violation of any term of or in default under its Certificate of Incorporation, any Certificate of Designation,
Preferences and Rights of any outstanding series of preferred stock of the Company or Bylaws or their organizational charter or
bylaws, respectively. Neither the Company nor any of its Subsidiaries is in violation of any term of or is in default under any
material contract, agreement, mortgage, indebtedness, indenture, instrument, judgment, decree or order or any statute, rule or
regulation applicable to the Company or its Subsidiaries, except for possible conflicts, defaults, terminations or amendments
that could not reasonably be expected to have a Material Adverse Effect. The business of the Company and its Subsidiaries is not
being conducted, and shall not be conducted, in violation of any law, ordinance, regulation of any governmental entity, except
for possible violations, the sanctions for which either individually or in the aggregate could not reasonably be expected to have
a Material Adverse Effect. Except as specifically contemplated by this Agreement and as required under the Securities Act or applicable
state securities laws and the rules and regulations of the Principal Market, the Company is not required to obtain any consent,
authorization or order of, or make any filing or registration with, any court or governmental agency or any regulatory or self-regulatory
agency in order for it to execute, deliver or perform any of its obligations under or contemplated by the Transaction Documents
in accordance with the terms hereof or thereof. Except as set forth elsewhere in this Agreement, all consents, authorizations,
orders, filings and registrations which the Company is required to obtain pursuant to the preceding sentence shall be obtained
or effected on or prior to the Commencement Date. Since one year prior to the date hereof, the Company has not received nor delivered
any notices or correspondence from or to the Principal Market. The Principal Market has not commenced any delisting proceedings
against the Company.

 

(f)SEC
Documents; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents required
to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof,
for the twelve months preceding the date hereof (or such shorter period as the Company was required by law or regulation to file
such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, being
collectively referred to herein as the “SEC Documents”) on a timely basis or has received a valid extension
of such time of filing and has filed any such SEC Documents prior to the expiration of any such extension.  As of their
respective dates and to the best of the Company’s knowledge, the SEC Documents complied in all material respects with the
requirements of the Securities Act and the Exchange Act, as applicable. None of the SEC Documents, when filed, contained any untrue
statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading. The financial statements of
the Company included in the SEC Documents comply in all material respects with applicable accounting requirements and the rules
and regulations of the SEC with respect thereto as in effect at the time of filing.  Such financial statements have
been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during the
periods involved (“GAAP”), except as may be otherwise specified in such financial statements or the notes thereto
and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material
respects the financial position of the Company and its consolidated Subsidiaries as of and for the dates thereof and the results
of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial,
year-end audit adjustments. Except as set forth in the SEC Documents, the Company has received no notices or correspondence from
the SEC for the one year preceding the date hereof. The SEC has not commenced any enforcement proceedings against the Company
or any of its Subsidiaries.

 

    	 	-10-	 

     

    

 

(g)Absence
of Certain Changes. Except as disclosed in the SEC Documents, since December 31, 2014, there has been no material adverse
change in the business, properties, operations, financial condition or results of operations of the Company or its Subsidiaries.
The Company has not taken any steps, and does not currently expect to take any steps, to seek protection pursuant to any Bankruptcy
Law nor does the Company or any of its Subsidiaries have any knowledge or reason to believe that its creditors intend to initiate
involuntary bankruptcy or insolvency proceedings. The Company is financially solvent and is generally able to pay its debts
as they become due.

 

(h)Absence
of Litigation. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government
agency, self-regulatory organization or body pending or, to the knowledge of the Company or any of its Subsidiaries, threatened
against or affecting the Company, the Common Stock or any of the Company's or its Subsidiaries' officers or directors in their
capacities as such, which could reasonably be expected to have a Material Adverse Effect.

 

(i)Acknowledgment
Regarding Investor's Status. The Company acknowledges and agrees that the Investor is acting solely in the capacity of arm's
length purchaser with respect to the Transaction Documents and the transactions contemplated hereby and thereby. The Company further
acknowledges that the Investor is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with
respect to the Transaction Documents and the transactions contemplated hereby and thereby and any advice given by the Investor
or any of its representatives or agents in connection with the Transaction Documents and the transactions contemplated hereby
and thereby is merely incidental to the Investor's purchase of the Securities. The Company further represents to the Investor
that the Company's decision to enter into the Transaction Documents has been based solely on the independent evaluation by the
Company and its representatives and advisors.

 

(j)No
General Solicitation; No Integrated Offering. Neither the Company, nor any of its affiliates, nor any Person acting on its
or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D under
the Securities Act) in connection with the offer or sale of the Securities. Neither the Company, nor or any of its affiliates,
nor any Person acting on their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers
to buy any security, under circumstances that would require registration of the offer and sale of any of the Securities under
the Securities Act, whether through integration with prior offerings or otherwise, or cause this offering of the Securities to
be integrated with prior offerings by the Company in a manner that would require stockholder approval pursuant to the rules of
the Principal Market on which any of the securities of the Company are listed or designated. The issuance and sale of the Securities
hereunder does not contravene the rules and regulations of the Principal Market.

 

    	 	-11-	 

     

    

 

(k)Intellectual
Property Rights. The Company and its Subsidiaries own or possess adequate rights or licenses to use all material trademarks,
trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights, inventions, licenses,
approvals, governmental authorizations, trade secrets and rights necessary to conduct their respective businesses as now conducted.
None of the Company's material trademarks, trade names, service marks, service mark registrations, service names, patents, patent
rights, copyrights, inventions, licenses, approvals, government authorizations, trade secrets or other intellectual property rights
have expired or terminated, or, by the terms and conditions thereof, could expire or terminate within two years from the date
of this Agreement. The Company and its Subsidiaries do not have any knowledge of any infringement by the Company or its Subsidiaries
of any material trademark, trade name rights, patents, patent rights, copyrights, inventions, licenses, service names, service
marks, service mark registrations, trade secret or other similar rights of others, or of any such development of similar or identical
trade secrets or technical information by others, and there is no claim, action or proceeding being made or brought against, or
to the Company's knowledge, being threatened against, the Company or its Subsidiaries regarding trademark, trade name, patents,
patent rights, invention, copyright, license, service names, service marks, service mark registrations, trade secret or other
infringement, which could reasonably be expected to have a Material Adverse Effect.

 

(l)Environmental
Laws. The Company and its Subsidiaries (i) are in compliance with any and all applicable foreign, federal, state and local
laws and regulations relating to the protection of human health and safety, the environment or hazardous or toxic substances or
wastes, pollutants or contaminants (“Environmental Laws”), (ii) have received all permits, licenses or other
approvals required of them under applicable Environmental Laws to conduct their respective businesses and (iii) are in compliance
with all terms and conditions of any such permit, license or approval, except where, in each of the three foregoing clauses, the
failure to so comply could not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

(m)Title.
The Company and its Subsidiaries have good and marketable title in fee simple to all real property owned by them and good and
marketable title in all personal property owned by them that is material to the business of the Company and its Subsidiaries,
in each case free and clear of all liens, encumbrances and defects (“Liens”) and, 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 its 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
its Subsidiaries are held by them under valid, subsisting and enforceable leases with which the Company and its Subsidiaries are
in compliance with such exceptions as are not material and do not interfere with the use made and proposed to be made of such
property and buildings by the Company and its Subsidiaries.

 

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

 

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

 

    	 	-12-	 

     

    

 

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

 

(q)Transactions
With Affiliates.  Except as set forth in the SEC Documents, 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 for (i) payment of salary or consulting fees for services rendered, (ii) reimbursement for
expenses incurred on behalf of the Company and (iii) other employee benefits, including stock option agreements under any stock
option plan of the Company.

 

(r)Application
of Takeover Protections. The Company and its board of directors have taken or will take prior to the Commencement Date 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 Certificate of Incorporation or
the laws of the state of its incorporation which is or could become applicable to the Investor as a result of the transactions
contemplated by this Agreement, including, without limitation, the Company's issuance of the Securities and the Investor's ownership
of the Securities.

 

(s) Disclosure.  Except
with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents that will be timely
publicly disclosed by the Company, the Company confirms that neither it nor any other Person acting on its behalf has provided
the Investor or its agents or counsel with any information that it believes constitutes or might constitute material, non-public
information which is not otherwise disclosed in the Registration Statement or the SEC Documents.   The Company
understands and confirms that the Investor will rely on the foregoing representation in effecting purchases and sales of securities
of the Company.  All of the disclosure furnished by or on behalf of the Company to the Investor regarding the Company,
its business and the transactions contemplated hereby, including the disclosure schedules to this Agreement, is true and correct
and does not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the
statements made therein, in light of the circumstances under which they were made, not misleading. The press releases disseminated
by the Company during the twelve months preceding the date of this Agreement taken as a whole do not contain any untrue statement
of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made and when made, not misleading.  The Company acknowledges
and agrees that the Investor neither makes nor has made any representations or warranties with respect to the transactions contemplated
hereby other than those specifically set forth in Section 3 hereof.

 

    	 	-13-	 

     

    

 

(t)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.

 

(u)DTC
Eligibility. The Company, through the Transfer Agent, currently participates in the DTC Fast Automated Securities Transfer
(FAST) Program and the Common Stock can be transferred electronically to third parties via the DTC Fast Automated Securities Transfer
(FAST) Program.

 

(v)Sarbanes-Oxley.
The Company is in compliance with all provisions of the Sarbanes-Oxley Act of 2002, as amended, which are applicable to it as
of the date hereof, except where the failure to be in compliance is not reasonably likely to result in a Material Adverse Effect.

 

(w)Certain
Fees. Except as disclosed on Schedule 4(w), 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 the Transaction Documents. Except as disclosed on Schedule 4(w), the Investor
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 4(w) that may be due in connection with the transactions contemplated by the Transaction
Documents.

 

(x)Investment
Company. The Company is not, and immediately after receipt of payment for the Securities will not be, an “investment
company” within the meaning of the Investment Company Act of 1940, as amended.

 

(y)Listing
and Maintenance Requirements. The Common Stock is registered pursuant to Section 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 pursuant to the Exchange Act nor has the Company received any notification that the SEC is currently contemplating
terminating such registration. The Company has not, in the twelve (12) months preceding the date hereof, received any notice from
any Person to the effect that the Company is not in compliance with the listing or maintenance requirements of the Principal Market.
The Company is, and has no reason to believe that it will not in the foreseeable future continue to be, in compliance with all
such listing and maintenance requirements.

 

(z)Accountants.
The Company’s accountants are set forth in the SEC Documents and, to the knowledge of the Company, such accountants are
an independent registered public accounting firm as required by the Securities Act.

 

(aa)No
Market Manipulation. The Company has not, and to its knowledge no Person acting on its behalf has, (i) taken, directly
or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of
the Company to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or, paid any compensation
for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay to any Person any compensation for soliciting
another to purchase any other securities of the Company.

 

(bb)Shell
Company Status. The Company is not currently, and has never been, an issuer identified in Rule 144(i)(1) under the Securities
Act.

 

    	 	-14-	 

     

    

 

(cc)No
Disqualification Events. None of the Company, any of its predecessors, any affiliated issuer, any director, executive officer,
other officer of the Company participating in the offering contemplated hereby, any beneficial owner of 20% or more of the Company's
outstanding voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule
405 under the Securities Act) connected with the Company in any capacity at the time of sale (each, an “Issuer Covered
Person”) is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii)
under the Securities Act (a “Disqualification Event”), except for a Disqualification Event covered by Rule
506(d)(2) or (d)(3) under the Securities Act. The Company has exercised reasonable care to determine whether any Issuer Covered
Person is subject to a Disqualification Event.

 

5.COVENANTS.

 

(a)Filing
of Current Report and Registration Statement. The Company agrees that it shall, within the time required under the Exchange
Act, file with the SEC a report on Form 8-K relating to the transactions contemplated by, and describing the material terms and
conditions of, the Transaction Documents (the “Current Report”). The Company shall also file with the SEC,
within thirty (30) calendar days from the date hereof, a new registration statement (the “Registration Statement”)
covering only the resale of the Purchase Shares and the Commitment Shares in accordance with the terms of the Registration Rights
Agreement between the Company and the Investor, dated as of the date hereof (the “Registration Rights Agreement”).
The Company shall permit the Investor to review and comment upon the final pre-filing draft version of the Current Report at least
two (2) Business Days prior to its filing with the SEC, and the Company shall give due consideration to all such comments. The
Investor shall use its reasonable best efforts to comment upon the final pre-filing draft version of the Current Report within
one (1) Business Day from the date the Investor receives it from the Company.

 

(b)Blue
Sky. The Company shall take all such action, if any, as is reasonably necessary in order to obtain an exemption for or to
register or qualify (i) the issuance of the Commitment Shares and the sale of the Purchase Shares to the Investor under this Agreement
and (ii) any subsequent resale of all Commitment Shares and all Purchase Shares by the Investor, in each case, under applicable
securities or “Blue Sky” laws of the states of the United States in such states as is reasonably requested by the
Investor from time to time, and shall provide evidence of any such action so taken to the Investor.

 

(c)Listing/DTC.
The Company shall promptly secure the listing of all of the Purchase Shares and Commitment Shares to be issued to the Investor
hereunder on the Principal Market (subject to official notice of issuance) and upon each other national securities exchange or
automated quotation system, if any, upon which the Common Stock is then listed, and shall use reasonable best efforts to maintain,
so long as any shares of Common Stock shall be so listed, such listing of all such Securities from time to time issuable hereunder.
The Company shall use reasonable best efforts to maintain the listing of the Common Stock on the Principal Market and shall comply
in all respects with the Company’s reporting, filing and other obligations under the bylaws or rules and regulations of
the Principal Market. Neither the Company nor any of its Subsidiaries shall take any action that would reasonably be expected
to result in the delisting or suspension of the Common Stock on the Principal Market. The Company shall promptly, and in no event
later than the following Business Day, provide to the Investor copies of any notices it receives from the Principal Market regarding
the continued eligibility of the Common Stock for listing on the Principal Market; provided, however, that the Company shall not
be required to provide the Investor copies of any such notice that the Company reasonably believes constitutes material non-public
information and the Company would not be required to publicly disclose such notice in any report or statement filed with the SEC
under the Exchange Act (including on Form 8-K) or the Securities Act. The Company shall pay all fees and expenses in connection
with satisfying its obligations under this Section 5(c). The Company shall take all action necessary to ensure that its
Common Stock can be transferred electronically as DWAC Shares.

 

    	 	-15-	 

     

    

 

(d)Prohibition
of Short Sales and Hedging Transactions. The Investor agrees that beginning on the date of this Agreement and ending on the
date of termination of this Agreement as provided in Section 11, the Investor and its agents, representatives and affiliates shall
not in any manner whatsoever enter into or effect, directly or indirectly, any (i) “short sale” (as such term is defined
in Rule 200 of Regulation SHO of the Exchange Act) of the Common Stock or (ii) hedging transaction, which establishes a net short
position with respect to the Common Stock.

 

(e)Issuance
of Commitment Shares. In consideration for the Investor’s execution and delivery of this Agreement, the Company shall
cause to be issued to the Investor a total of 100,000 shares of Common Stock (the “Initial Commitment Shares”)
immediately upon the execution of this Agreement and shall deliver to the Transfer Agent the Irrevocable Transfer Agent Instructions
with respect to the issuance of such Initial Commitment Shares. The Company shall cause to be issued to the Investor up to 500,000
shares of Common Stock (the “Additional Commitment Shares” and, collectively with the Initial Commitment Shares,
the “Commitment Shares”), as follows: in connection with each purchase of Purchase Shares hereunder, the Company
shall issue to the Investor a number of shares of Common Stock equal to the product of (i) 500,000 and (y) the Purchase Amount
Fraction. The “Purchase Amount Fraction” shall mean a fraction, the numerator of which is the Purchase Amount
purchased by the Investor with respect to such purchase of Purchase Shares and the denominator of which is Twelve Million Dollars
($12,000,000). The Additional Commitment Shares shall be equitably adjusted for any reorganization, recapitalization, non-cash
dividend, stock split or other similar transaction. For the avoidance of doubt, (1) all of the Initial Commitment Shares shall
be fully earned as of the date of this Agreement, whether or not the Commencement shall occur or any Purchase Shares are purchased
by the Investor under this Agreement and irrespective of any subsequent termination of this Agreement and (2) the Additional Commitment
Shares shall be fully earned as of the date of their issuance pursuant to this Agreement, irrespective of any subsequent termination
of this Agreement.

 

(f)Due
Diligence; Non-Public Information. The Investor shall have the right, from time to time as the Investor may reasonably deem
appropriate, to perform reasonable due diligence on the Company during normal business hours. The Company and its officers and
employees shall provide information and reasonably cooperate with the Investor in connection with any reasonable request by the
Investor related to the Investor's due diligence of the Company. Each party hereto agrees not to disclose any Confidential Information
of the other party to any third party and shall not use the Confidential Information for any purpose other than in connection
with, or in furtherance of, the transactions contemplated hereby. Each party hereto acknowledges that the Confidential Information
shall remain the property of the disclosing party and agrees that it shall take all reasonable measures to protect the secrecy
of any Confidential Information disclosed by the other party. The Company confirms that neither it nor any other Person acting
on its behalf shall provide the Investor or its agents or counsel with any information that constitutes or might constitute material,
non-public information, unless a simultaneous public announcement thereof is made by the Company in the manner contemplated by
Regulation FD. In the event of a breach of the foregoing covenant by the Company or any Person acting on its behalf (as determined
in the reasonable good faith judgment of the Investor), in addition to any other remedy provided herein or in the other Transaction
Documents, the Investor shall have the right to make a public disclosure, in the form of a press release, public advertisement
or otherwise, of such material, non-public information without the prior approval by the Company; provided the Investor shall
have first provided notice to the Company that it believes it has received information that constitutes material, non-public information,
the Company shall have at least 24 hours to respond to such notice, and thereafter the Investor shall have provided a draft final
version of such press release, public advertisement or otherwise at least 24 hours prior to the Investor’s intended public
disclosure, and the Investor shall have incorporated any reasonable comments made by the Company on such draft press release,
and the Company shall have failed to publicly disclose such material, non-public information prior to such disclosure by the Investor.
The Investor shall not have any liability to the Company, any of its Subsidiaries, or any of their respective directors, officers,
employees, stockholders or agents, for any such disclosure. The Company understands and confirms that the Investor shall be relying
on the foregoing covenants in effecting transactions in securities of the Company.

 

    	 	-16-	 

     

    

 

(g)
Purchase Records. The Investor and the Company shall each maintain records showing the remaining Available Amount at
any given time and the dates and Purchase Amounts for each Regular Purchase and Accelerated Purchase or shall use such other method,
reasonably satisfactory to the Investor and the Company.

 

(h)
Taxes.  The Company shall pay any and all transfer, stamp or similar taxes that may be payable with respect to the
issuance and delivery of any shares of Common Stock to the Investor made under this Agreement. 

 

(i)Use
of Proceeds. The Company will use the net proceeds from the offering as described in the Registration Statement or the SEC
Documents.

 

(j)Other
Transactions. The Company shall not enter into, announce or recommend to its stockholders any agreement, plan, arrangement
or transaction in or of which the terms thereof would restrict, materially delay, conflict with or impair the ability or right
of the Company to perform its obligations under the Transaction Documents, including, without limitation, the obligation of the
Company to deliver the Purchase Shares and the Commitment Shares to the Investor in accordance with the terms of the Transaction
Documents.

 

(k)Integration.
From and after the date of this Agreement, neither the Company, nor or any of its affiliates will, and the Company shall use its
reasonable best efforts to ensure that no Person acting on their behalf will, directly or indirectly, make any offers or sales
of any security or solicit any offers to buy any security, under circumstances that would require registration of the offer and
sale of any of the Securities under the Securities Act.

 

    	 	-17-	 

     

    

 

(l)Limitation
on Variable Rate Transactions and Continuous Offerings. From and after the date of this Agreement until the earlier of (i)
the six-month anniversary of the date of this Agreement (irrespective of any earlier termination of this Agreement) and (ii) a
Change-in-Control, the Company shall be prohibited from effecting or entering into an agreement to effect any issuance by the
Company or any of its Subsidiaries of Common Stock or Common Stock Equivalents (or a combination of units thereof) involving a
Variable Rate Transaction, other than in connection with an Exempt Issuance. From and after the date of this Agreement until the
earlier of (i) the 24-month anniversary of the date of this Agreement (irrespective of any earlier termination of this Agreement)
and (ii) a Change-in-Control, the Company shall be prohibited from effecting or entering into an agreement to effect any issuance
by the Company or any of its Subsidiaries of Common Stock or Common Stock Equivalents (or a combination of units thereof) in a
Continuous Offering, other than in connection with an Exempt Issuance. “Common Stock Equivalents” means any
securities of the Company or its Subsidiaries which entitle the holder thereof to acquire at any time Common Stock, including,
without limitation, any debt, preferred stock, rights, options, warrants or other instrument that is at any time convertible into
or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock. “Variable Rate
Transaction” means a transaction in which the Company issues or sells any debt or equity securities that are convertible
into, exchangeable or exercisable for, or include the right to receive additional shares of Common Stock or Common Stock Equivalents
either (i) at a conversion price, exercise price or exchange rate or other price that is based upon and/or varies with the trading
prices of or quotations for the Common Stock at any time after the initial issuance of such debt or equity securities, or (ii)
with a conversion, exercise or exchange price that is subject to being reset at some future date after the initial issuance of
such debt or equity security or upon the occurrence of specified or contingent events directly or indirectly related to the business
of the Company or the market for the Common Stock (including, without limitation, any “full ratchet” or “weighted
average” anti-dilution provisions). A “Continuous Offering” means a transaction in which the Company
enters into any agreement, including, but not limited to, an “equity line of credit”, “at-the-market offering”
or other continuous offering or similar offering of Common Stock or Common Stock Equivalents, whereby the Company may sell Common
Stock or Common Stock Equivalents at a future determined price. “Exempt Issuance” means the issuance of (a)
Common Stock or options to employees, officers, directors or vendors of the Company pursuant to any stock or option plan duly
adopted for such purpose, by the Board of Directors or a majority of the members of a committee of directors established for such
purpose, (b) securities upon the exercise or exchange of or conversion of any Securities issued hereunder and/or other securities
exercisable or exchangeable for or convertible into Common Stock issued and outstanding on the date of this Agreement, provided
that such securities have not been amended since the date of this Agreement to increase the number of such securities or to decrease
the exercise price, exchange price or conversion price of such securities, (c) securities issued pursuant to acquisitions or strategic
transactions approved by the Board of Directors or a majority of the members of a committee of directors established for such
purpose, which acquisitions or strategic transactions can have a Variable Rate Transaction component, provided that any such issuance
shall only be to a Person (or to the equity holders of a Person) which is, itself or through its subsidiaries, an operating company
or an asset in a business synergistic with the business of the Company and shall provide to the Company additional benefits in
addition to the investment of funds, but shall not include a transaction in which the Company is issuing securities primarily
for the purpose of raising capital or to an entity whose primary business is investing in securities; and (d) Common Stock issued
and sold pursuant to an “at-the-market offering” of Common Stock through a registered broker-dealer. “Change-in-Control”
means any one or more of the following: (i) the Company shall, directly or indirectly, in one or more related transactions, (1)
consolidate or merge with or into (whether or not the Company is the surviving corporation) another Person, with the result that
the holders of the Company’s capital stock immediately prior to such consolidation or merger together beneficially own less
than 50% of the outstanding voting power of the surviving or resulting corporation, or (2) sell, lease, license, assign, transfer,
convey or otherwise dispose of all or substantially all of the properties or assets of the Company to another Person, or (3) consummate
a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization,
spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than 50% of the outstanding shares
of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated
or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination)
or (ii) the consummation of any purchase, tender or exchange offer by any Person or “group” (as such term is used
for purposes of Sections 13(d) and 14(d) of the Exchange Act), whereby such Person or group is or shall become the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 50% of the aggregate ordinary voting
power represented by issued and outstanding Common Stock (not including any shares of Common Stock held by the Person or Persons
making or party to, or associated or affiliated with the Persons making or party to, such purchase, tender or exchange offer).

 

    	 	-18-	 

     

    

 

6.TRANSFER
AGENT INSTRUCTIONS.

 

(a)
On the date of this Agreement, the Company shall issue irrevocable instructions to the Transfer Agent substantially in the
form attached hereto as Exhibit E to issue the Initial Commitment Shares in accordance with the terms of this
Agreement (the “Irrevocable Transfer Agent Instructions”). The certificate(s) representing the Initial
Commitment Shares, except as set forth below, shall bear the following restrictive legend (the “Restrictive
Legend”):

 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE
STATE SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR
ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR APPLICABLE STATE SECURITIES LAWS, UNLESS SOLD PURSUANT TO: (1) RULE 144 UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (2)
AN OPINION OF HOLDER’S COUNSEL, IN A CUSTOMARY FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE
SECURITIES LAWS.

 

(b)
On the earlier of (i) the Commencement Date and (ii) such time that the Investor shall request, provided all conditions of
Rule 144 under the Securities Act are met, the Company shall, no later than one (1) Business Day following the delivery by
the Investor to the Company or the Transfer Agent of one or more legended certificates representing the Initial Commitment
Shares (which certificates the Investor shall promptly deliver on or prior to the first to occur of the events described in
clauses (i) and (ii) of this sentence), as directed by the Investor, issue and deliver (or cause to be issued and delivered)
to the Investor, as requested by the Investor, either: (A) a certificate representing such Initial Commitment Shares that is
free from all restrictive and other legends or (B) a number of shares of Common Stock equal to the number of Initial
Commitment Shares represented by the certificate(s) so delivered by the Investor as DWAC Shares. The Company shall take all
actions to carry out the intent and accomplish the purposes of the immediately preceding sentence, including, without
limitation, delivering all such legal opinions, consents, certificates, resolutions and instructions to the Transfer Agent,
and any successor transfer agent of the Company, as may be requested from time to time by the Investor or necessary or
desirable to carry out the intent and accomplish the purposes of the immediately preceding sentence. On the Commencement
Date, the Company shall issue to the Transfer Agent, and any subsequent transfer agent, (i) irrevocable instructions in the
form substantially similar to those used by the Investor in substantially similar transactions (the “Commencement
Irrevocable Transfer Agent Instructions”) and (ii) the notice of effectiveness of the Registration Statement in the
form attached as an exhibit to the Registration Rights Agreement (the “Notice of Effectiveness of
Registration Statement”), in each case to issue the Initial Commitment Shares, the Additional Commitment Shares and
the Purchase Shares in accordance with the terms of this Agreement and the Registration Rights Agreement. All Purchase Shares
and Additional Commitment Shares to be issued from and after Commencement to or for the benefit of the Investor pursuant to
this Agreement shall be issued only as DWAC Shares. The Company represents and warrants to the Investor that, while this
Agreement is effective, no instruction other than the Commencement Irrevocable Transfer Agent Instructions and the Notice of
Effectiveness of Registration Statement referred to in this Section 6(b) will be given by the Company to the Transfer
Agent with respect to the Initial Commitment Shares, the Additional Commitment Shares or the Purchase Shares from and after
Commencement, and the Initial Commitment Shares, the Additional Commitment Shares and the Purchase Shares covered by the
Registration Statement shall otherwise be freely transferable on the books and records of the Company. The Company agrees
that if the Company fails to fully comply with the provisions of this Section 6(b) within five (5) Business Days of
the Investor providing the deliveries referred to above, the Company shall, at the Investor’s written instruction,
purchase such shares of Common Stock containing the Restrictive Legend from the Investor at the greater of the (i) Purchase
Price or Accelerated Purchase Price paid for such shares of Common Stock (as applicable) and (ii) the Closing Sale Price of
the Common Stock on the date of the Investor’s written instruction.

 

    	 	-19-	 

     

    

 

7.
CONDITIONS TO THE COMPANY'S RIGHT TO COMMENCES SALES OF SHARES OF COMMON STOCK.

 

The
right of the Company hereunder to commence sales of the Purchase Shares on the Commencement Date is subject to the satisfaction
of each of the following conditions:

 

(a)The
Investor shall have executed each of the Transaction Documents and delivered the same to the Company;

 

(b)The
Registration Statement covering the resale of the Commitment Shares and Purchase Shares shall have been declared effective
under the Securities Act by the SEC and no stop order with respect to the Registration Statement shall be pending or threatened
by the SEC; and

 

(c)The
representations and warranties of the Investor shall be true and correct in all material respects as of the date hereof and as
of the Commencement Date as though made at that time.

  

 8. CONDITIONS TO THE INVESTOR'S OBLIGATION TO PURCHASE SHARES OF COMMON STOCK.

 

The
obligation of the Investor to buy Purchase Shares under this Agreement is subject to the satisfaction of each of the following
conditions on or prior to the Commencement Date and, once such conditions have been initially satisfied, there shall not be any
ongoing obligation to satisfy such conditions after the Commencement has occurred:

 

(a)The
Company shall have executed each of the Transaction Documents and delivered the same to the Investor;

 

(b)The
Company shall have issued or caused to be issued to the Investor (i) one or more certificates representing the Initial Commitment
Shares free from all restrictive and other legends or (ii) a number of shares of Common Stock equal to the number of Initial Commitment
Shares as DWAC Shares, in each case in accordance with Section 6(b);

 

(c)
The Common Stock shall be listed or quoted on the Principal Market, trading in the Common Stock shall not have been within
the last 365 days suspended by the SEC or the Principal Market, and all Securities to be issued by the Company to the
Investor pursuant to this Agreement shall have been approved for listing or quotation on the Principal Market in accordance
with the applicable rules and regulations of the Principal Market, subject only to official notice of issuance;

 

(d)The
Investor shall have received the opinions of the Company's legal counsel dated as of the Commencement Date substantially in the
form of Exhibit A attached hereto;

 

(e)The
representations and warranties of the Company shall be true and correct in all material respects (except to the extent that any
of such representations and warranties is already qualified as to materiality in Section 4 above, in which case, such representations
and warranties shall be true and correct without further qualification) as of the date hereof and as of the Commencement Date
as though made at that time (except for representations and warranties that speak as of a specific date, which shall be true and
correct as of such date) and the Company shall have performed, satisfied and complied with the covenants, agreements and conditions
required by the Transaction Documents to be performed, satisfied or complied with by the Company at or prior to the Commencement
Date. The Investor shall have received a certificate, executed by the CEO, President or CFO of the Company, dated as of the Commencement
Date, to the foregoing effect in the form attached hereto as Exhibit B;

 

    	 	-20-	 

     

    

 

(f)The
Board of Directors of the Company shall have adopted resolutions in the form attached hereto as Exhibit C which
shall be in full force and effect without any amendment or supplement thereto as of the Commencement Date;

 

(g)As
of the Commencement Date, the Company shall have reserved out of its authorized and unissued Common Stock, (i) solely for the
purpose of effecting purchases of Purchase Shares hereunder, 5,000,000 shares of Common Stock, and (ii) solely for the purpose
of effecting the issuance of Additional Commitment Shares hereunder, 500,000 shares of Common Stock;

 

(h)The
Commencement Irrevocable Transfer Agent Instructions and the Notice of Effectiveness of Registration Statement each shall have
been delivered to and acknowledged in writing by the Company and the Company's Transfer Agent (or any successor transfer agent);

 

(i)The
Company shall have delivered to the Investor a certificate evidencing the incorporation and good standing of the Company in the
State of Delaware issued by the Secretary of State of the State of Delaware as of a date within ten (10) Business Days of the
Commencement Date;

 

(j)The
Company shall have delivered to the Investor a certified copy of the Certificate of Incorporation as certified by the Secretary
of State of the State of Delaware within ten (10) Business Days of the Commencement Date;

 

(k)The
Company shall have delivered to the Investor a secretary's certificate executed by the Secretary of the Company, dated as of the
Commencement Date, in the form attached hereto as Exhibit D;

 

(l)The
Registration Statement covering the resale of the Commitment Shares and Purchase Shares shall have been declared effective
under the Securities Act by the SEC and no stop order with respect to the Registration Statement shall be pending or threatened
by the SEC. The Company shall have prepared and filed with the SEC, not later than one (1) Business Day after the effective date
of the Registration Statement, a final and complete prospectus (the preliminary form of which shall be included in the Registration
Statement) and shall have delivered to the Investor a true and complete copy thereof. Such prospectus shall be current and available
for the resale by the Investor of all of the Securities covered thereby. The Current Report shall have been filed with the SEC,
as required pursuant to Section 5(a). All reports, schedules, registrations, forms, statements, information and other documents
required to have been filed by the Company with the SEC at or prior to the Commencement Date pursuant to the reporting requirements
of the Exchange Act shall have been filed with the SEC within the applicable time periods prescribed for such filings under the
Exchange Act;

 

(m)No
Event of Default has occurred, or any event which, after notice and/or lapse of time, would become an Event of Default has occurred;

 

(n)All
federal, state and local governmental laws, rules and regulations applicable to the transactions contemplated by the Transaction
Documents and necessary for the execution, delivery and performance of the Transaction Documents and the consummation of the transactions
contemplated thereby in accordance with the terms thereof shall have been complied with, and all consents, authorizations and
orders of, and all filings and registrations with, all federal, state and local courts or governmental agencies and all federal,
state and local regulatory or self-regulatory agencies necessary for the execution, delivery and performance of the Transaction
Documents and the consummation of the transactions contemplated thereby in accordance with the terms thereof shall have been obtained
or made, including, without limitation, in each case those required under the Securities Act, the Exchange Act, applicable state
securities or “Blue Sky” laws or applicable rules and regulations of the Principal Market, or otherwise required by
the SEC, the Principal Market or any state securities regulators;

 

    	 	-21-	 

     

    

 

(o)No
statute, regulation, order, decree, writ, ruling or injunction shall have been enacted, entered, promulgated, threatened or endorsed
by any federal, state, local or foreign court or governmental authority of competent jurisdiction which prohibits the consummation
of or which would materially modify or delay any of the transactions contemplated by the Transaction Documents; and

 

(p)No
action, suit or proceeding before any federal, state, local or foreign arbitrator or any court or governmental authority of competent
jurisdiction shall have been commenced or threatened, and no inquiry or investigation by any federal, state, local or foreign
governmental authority of competent jurisdiction shall have been commenced or threatened, against the Company, or any of the officers,
directors or affiliates of the Company, seeking to restrain, prevent or change the transactions contemplated by the Transaction
Documents, or seeking material damages in connection with such transactions.

 

 9. INDEMNIFICATION. 

 

In
consideration of the Investor's execution and delivery of the Transaction Documents and acquiring the Securities hereunder and
in addition to all of the Company's other obligations under the Transaction Documents, the Company shall defend, protect, indemnify
and hold harmless the Investor and all of its affiliates, stockholders, officers, directors, employees and direct or indirect
investors and any of the foregoing Person's agents or other representatives (including, without limitation, those retained in
connection with the transactions contemplated by this Agreement) (collectively, the "Indemnitees") from and against
any and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in
connection therewith (irrespective of whether any such Indemnitee is a party to the action for which indemnification hereunder
is sought), and including reasonable attorneys' fees and disbursements (the "Indemnified Liabilities"), incurred
by any Indemnitee as a result of, or arising out of, or relating to (a) any misrepresentation or breach of any representation
or warranty made by the Company in the Transaction Documents or any other certificate, instrument or document contemplated hereby
or thereby, (b) any breach of any covenant, agreement or obligation of the Company contained in the Transaction Documents or any
other certificate, instrument or document contemplated hereby or thereby, or (c) any cause of action, suit or claim brought or
made against such Indemnitee and arising out of or resulting from the execution, delivery, performance or enforcement of the Transaction
Documents or any other certificate, instrument or document contemplated hereby or thereby, other than, in the case of clause (c),
with respect to Indemnified Liabilities which directly and primarily result from the fraud, gross negligence or willful misconduct
of an Indemnitee. The indemnity in this Section 9 shall not apply to amounts paid in settlement of any claim if such settlement
is effected without the prior written consent of the Company, which consent shall not be unreasonably withheld, conditioned or
delayed. To the extent that the foregoing undertaking by the Company may be unenforceable for any reason, the Company shall make
the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities which is permissible under applicable
law. Payment under this indemnification shall be made within thirty (30) days from the date Investor makes written request for
it. A certificate containing reasonable detail as to the amount of such indemnification submitted to the Company by Investor shall
be conclusive evidence, absent manifest error, of the amount due from the Company to Investor. If any action shall be brought
against any Indemnitee in respect of which indemnity may be sought pursuant to this Agreement, such Indemnitee shall promptly
notify the Company in writing, and the Company shall have the right to assume the defense thereof with counsel of its own choosing
reasonably acceptable to the Indemnitee. Any Indemnitee shall have the right to employ separate counsel in any such action and
participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee, except
to the extent that (i) the employment thereof has been specifically authorized by the Company in writing, (ii) the Company
has failed after a reasonable period of time to assume such defense and to employ counsel or (iii) in such action there is,
in the reasonable opinion of such separate counsel, a material conflict on any material issue between the position of the Company
and the position of such Indemnitee, in which case the Company shall be responsible for the reasonable fees and expenses of no
more than one such separate counsel.

 

    	 	-22-	 

     

    

 

10.EVENTS
OF DEFAULT. 

 

An
"Event of Default" shall be deemed to have occurred at any time as any of the following events occurs:

 

(a)the
effectiveness of a registration statement registering the resale of the Securities lapses for any reason (including, without limitation,
the issuance of a stop order or similar order) or such registration statement (or the prospectus forming a part thereof) is unavailable
to the Investor for resale of any or all of the Securities to be issued to the Investor under the Transaction Documents, and such
lapse or unavailability continues for a period of ten (10) consecutive Business Days or for more than an aggregate of thirty (30)
Business Days in any 365-day period, but excluding a lapse or unavailability where (i) the Company terminates a registration statement
after the Investor has confirmed in writing that all of the Securities covered thereby have been resold or (ii) the Company supersedes
one registration statement with another registration statement, including (without limitation) by terminating a prior registration
statement when it is effectively replaced with a new registration statement covering Securities (provided in the case of this
clause (ii) that all of the Securities covered by the superseded (or terminated) registration statement that have not theretofore
been resold are included in the superseding (or new) registration statement);

 

(b)the
suspension of the Common Stock from trading on the Principal Market for a period of one (1) Business Day, provided that the Company
may not direct the Investor to purchase any shares of Common Stock during any such suspension;

 

(c)the
delisting of the Common Stock from the OTCQB operated by the OTC Markets Group, Inc., provided, however, that the Common Stock
is not immediately thereafter trading on the New York Stock Exchange, the NYSE MKT, the NYSE Arca, The NASDAQ Capital Market,
The NASDAQ Global Market, The NASDAQ Global Select Market, the OTC Bulletin Board or the OTCQX operated by the OTC Markets Group,
Inc. (or nationally recognized successor to any of the foregoing);

 

(d)the
failure for any reason by the Transfer Agent to issue (i) the Additional Commitment Shares to the Investor within five (5) Business
Days after the date on which the Investor is entitled to receive such Additional Commitment Shares pursuant to Section 5(e)
hereof and (ii) Purchase Shares to the Investor within five (5) Business Days after the applicable Purchase Date or Accelerated
Purchase Date (as applicable) on which the Investor is entitled to receive such Purchase Shares;

 

(e)the
Company breaches any representation, warranty, covenant or other term or condition under any Transaction Document if such breach
could have a Material Adverse Effect and except, in the case of a breach of a covenant which is reasonably curable, only if such
breach continues for a period of at least five (5) Business Days;

 

(f)if
any Person commences a proceeding against the Company pursuant to or within the meaning of any Bankruptcy Law;

 

    	 	-23-	 

     

    

 

(g)if
the Company, pursuant to or within the meaning of any Bankruptcy Law, (i) commences a voluntary case, (ii) consents to the entry
of an order for relief against it in an involuntary case, (iii) consents to the appointment of a Custodian of it or for all or
substantially all of its property, or (iv) makes a general assignment for the benefit of its creditors or is generally unable
to pay its debts as the same become due;

  

(h)a
court of competent jurisdiction enters an order or decree under any Bankruptcy Law that (i) is for relief against the Company
in an involuntary case, (ii) appoints a Custodian of the Company or for all or substantially all of its property, or (iii) orders
the liquidation of the Company or any Subsidiary; or

 

(i)if
at any time the Company is not eligible to transfer its Common Stock electronically as DWAC Shares.

 

In
addition to any other rights and remedies under applicable law and this Agreement, so long as an Event of Default has occurred
and is continuing, or if any event which, after notice and/or lapse of time, would become an Event of Default, has occurred and
is continuing, the Company shall not deliver to the Investor any Regular Purchase Notice or Accelerated Purchase Notice.

 

11.TERMINATION

 

This
Agreement may be terminated only as follows:

 

(a)If
pursuant to or within the meaning of any Bankruptcy Law, the Company commences a voluntary case or any Person commences a proceeding
against the Company, which is not discharged within 90 days, a Custodian is appointed for the Company or for all or substantially
all of its property, or the Company makes a general assignment for the benefit of its creditors (any of which would be an Event
of Default as described in Sections 10(f), 10(g) and 10(h) hereof), this Agreement shall automatically terminate
without any liability or payment to the Company (except as set forth below) without further action or notice by any Person.

 

(b)In
the event that the Commencement shall not have occurred on or before July 15, 2016, due to the failure to satisfy the conditions
set forth in Sections 7 and 8 above with respect to the Commencement, this Agreement may be terminated by either
party at the close of business on such date or thereafter without liability of such party to the other party (except as set forth
below); provided, however, that the right to terminate this Agreement under this Section 11(b) shall not be available to
any party if such party is then in breach of any covenant or agreement contained in this Agreement or any representation or warranty
of such party contained in this Agreement fails to be true and correct such that the conditions set forth in Section 7(c)
or Section 8(e), as applicable, could not then be satisfied.

 

(c)
At any time after the Commencement Date, the Company shall have the option to terminate this Agreement for any reason or for no
reason by delivering notice (a “Company Termination Notice”) to the Investor electing to terminate this Agreement
without any liability whatsoever of any party to any other party under this Agreement (except as set forth below). The Company
Termination Notice shall not be effective until one (1) Business Day after it has been received by the Investor.

 

(d)This
Agreement shall automatically terminate on the date that the Company sells and the Investor purchases the full Available Amount
as provided herein, without any action or notice on the part of any party and without any liability whatsoever of any party to
any other party under this Agreement (except as set forth below).

 

(e)If,
for any reason or for no reason, the full Available Amount has not been purchased in accordance with Section 2 of
this Agreement by the Maturity Date, this Agreement shall automatically terminate on the Maturity Date, without any action or
notice on the part of any party and without any liability whatsoever of any party to any other party under this Agreement (except
as set forth below).

 

    	 	-24-	 

     

    

 

Except
as set forth in Sections 11(a) (in respect of an Event of Default under Sections 10(f), 10(g) and 10(h)),
11(d) and 11(e), any termination of this Agreement pursuant to this Section 11 shall be effected by written
notice from the Company to the Investor, or the Investor to the Company, as the case may be, setting forth the basis for the termination
hereof. The representations and warranties and covenants of the Company and the Investor contained in Sections 3, 4,
5, and 6 hereof, the indemnification provisions set forth in Section 9 hereof and the agreements and covenants
set forth in Sections 10, 11 and 12 shall survive the Commencement and any termination of this Agreement.
No termination of this Agreement shall (i) affect the Company’s or the Investor’s rights or obligations under (A)
this Agreement with respect to pending Regular Purchases and Accelerated Purchases and the Company and the Investor shall complete
their respective obligations with respect to any pending Regular Purchases and Accelerated Purchases under this Agreement and
(B) the Registration Rights Agreement, which shall survive any such termination, or (ii) be deemed to release the Company or the
Investor from any liability for intentional misrepresentation or willful breach of any of the Transaction Documents.

 

12.MISCELLANEOUS.

 

(a)Governing
Law; Jurisdiction; Jury Trial. The corporate laws of the State of Delaware shall govern all issues concerning the relative
rights of the Company and its stockholders. All other questions concerning the construction, validity, enforcement and interpretation
of this Agreement and the other Transaction Documents shall be governed by the internal laws of the State of Illinois, without
giving effect to any choice of law or conflict of law provision or rule (whether of the State of Illinois or any other jurisdictions)
that would cause the application of the laws of any jurisdictions other than the State of Illinois. Each party hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in the State of Illinois, County of Cook, for the
adjudication of any dispute hereunder or under the other Transaction Documents or in connection herewith or therewith, or with
any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit,
action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action
or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party
hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding
by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service
shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit
in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY
HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING
OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

(b)Counterparts.
This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each party and delivered to the other party; provided that a
facsimile signature or signature delivered by e-mail in a “.pdf” format data file shall be considered due execution
and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original signature.

 

(c)Headings.
The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this
Agreement.

 

    	 	-25-	 

     

    

 

(d)Severability.
If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability
shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability
of any provision of this Agreement in any other jurisdiction.

 

(e)Entire
Agreement. The Transaction Documents supersede all other prior oral or written agreements between the Investor, the Company,
their affiliates and Persons acting on their behalf with respect to the subject matter thereof, and this Agreement, the other
Transaction Documents and the instruments referenced herein contain the entire understanding of the parties with respect to the
matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company nor the Investor
makes any representation, warranty, covenant or undertaking with respect to such matters. The Company acknowledges and agrees
that is has not relied on, in any manner whatsoever, any representations or statements, written or oral, other than as expressly
set forth in the Transaction Documents.

 

(f)Notices.
Any notices, consents or other communications required or permitted to be given under the terms of this Agreement must be in writing
and will be deemed to have been delivered: (i) upon receipt when delivered personally; (ii) upon receipt when sent by facsimile
or email (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party);
or (iii) one Business Day after deposit with a nationally recognized overnight delivery service, in each case properly addressed
to the party to receive the same. The addresses for such communications shall be:

 

If
to the Company:

Soligenix,
Inc.

29
Emmons Drive, Suite C-10

Princeton,
New Jersey 08540

Telephone:609-538-8200

Facsimile:609-452-6467

E-mail:cschaber@soligenix.com

Attention:
Christopher J. Schaber, Ph.D., CEO

 

With
a copy to (which shall not constitute notice or service of process):

Duane
Morris LLP

200
South Biscayne Boulevard, Suite 3400

Miami,
Florida 33131-2318

Telephone:305-960-2200

Facsimile:305-397-1882

E-mail:ljcroland@duanemorris.com

Attention:Leslie
J. Croland, Esq.

 

If
to the Investor:

Lincoln
Park Capital Fund, LLC

440
North Wells, Suite 410

Chicago,
IL 60654

Telephone:312-822-9300

Facsimile:312-822-9301

E-mail:jscheinfeld@lpcfunds.com/jcope@lpcfunds.com

Attention:Josh
Scheinfeld/Jonathan Cope

 

    	 	-26-	 

     

    

 

With
a copy to (which shall not constitute notice or service of process):

Greenberg
Traurig, LLP

The
MetLife Building

200
Park Avenue

New
York, NY 10166

Telephone:(212)
801-9200

Facsimile:
(212) 801-6400

E-mail:
marsicoa@gtlaw.com

Attention:Anthony
J. Marsico, Esq.

 

If
to the Transfer Agent:

American
Stock Transfer & Trust Co.

6201
15th Avenue, 2nd Floor

Brooklyn,
NY 11219

Telephone:718-921-8360

Facsimile:718-921-8323

Attention:
Angelia Brown

 

or
at such other address and/or facsimile number and/or to the attention of such other Person as the recipient party has specified
by written notice given to each other party three (3) Business Days prior to the effectiveness of such change. Written confirmation
of receipt (A) given by the recipient of such notice, consent or other communication, (B) mechanically or electronically generated
by the sender's facsimile machine or email account containing the time, date, and recipient facsimile number or email address,
as applicable, and an image of the first page of such transmission or (C) provided by a nationally recognized overnight delivery
service, shall be rebuttable evidence of personal service, receipt by facsimile or receipt from a nationally recognized overnight
delivery service in accordance with clause (i), (ii) or (iii) above, respectively.

 

(g)Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors
and assigns. The Company shall not assign this Agreement or any rights or obligations hereunder without the prior written consent
of the Investor, including by merger or consolidation. The Investor may not assign its rights or obligations under this Agreement.

 

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

 

(i)Publicity.
The Company shall afford the Investor and its counsel with the opportunity to review and comment upon, shall consult with the
Investor and its counsel on the form and substance of, and shall give due consideration to all such comments from the Investor
or its counsel on, any press release, SEC filing or any other public disclosure by or on behalf of the Company relating to the
Investor, its purchases hereunder or any aspect of the Transaction Documents or the transactions contemplated thereby, not less
than 24 hours prior to the issuance, filing or public disclosure thereof. The Investor must be provided with a final version of
any such press release, SEC filing or other public disclosure at least 24 hours prior to any release, filing or use by the Company
thereof. The Company agrees and acknowledges that its failure to fully comply with this provision constitutes a Material Adverse
Effect.

 

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

 

    	 	-27-	 

     

    

 

(k)No
Financial Advisor, Placement Agent, Broker or Finder. The Company represents and warrants to the Investor that, except as
disclosed in Schedule 4(w), it has not engaged any financial advisor, placement agent, broker or finder in connection with
the transactions contemplated hereby. The Investor represents and warrants to the Company that it has not engaged any financial
advisor, placement agent, broker or finder in connection with the transactions contemplated hereby. The Company shall be responsible
for the payment of any fees or commissions, if any, of any financial advisor, placement agent, broker or finder relating to or
arising out of the transactions contemplated hereby. The Company shall pay, and hold the Investor harmless against, any liability,
loss or expense (including, without limitation, attorneys' fees and out of pocket expenses) arising in connection with any such
claim.

 

(l)No
Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party.

 

(m)Remedies,
Other Obligations, Breaches and Injunctive Relief. The Investor’s remedies provided in this Agreement, including, without
limitation, the Investor’s remedies provided in Section 9, shall be cumulative and in addition to all other remedies available
to the Investor under this Agreement, at law or in equity (including a decree of specific performance and/or other injunctive
relief), no remedy of the Investor contained herein shall be deemed a waiver of compliance with the provisions giving rise to
such remedy and nothing herein shall limit the Investor's right to pursue actual damages for any failure by the Company to comply
with the terms of this Agreement. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable
harm to the Investor and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that, in the
event of any such breach or threatened breach, the Investor shall be entitled, in addition to all other available remedies, to
an injunction restraining any breach, without the necessity of showing economic loss and without any bond or other security being
required.

 

(n)Enforcement
Costs. If: (i) this Agreement is placed by the Investor in the hands of an attorney for enforcement or is enforced by the
Investor through any legal proceeding; (ii) an attorney is retained to represent the Investor in any bankruptcy, reorganization,
receivership or other proceedings affecting creditors' rights and involving a claim under this Agreement; or (iii) an attorney
is retained to represent the Investor in any other proceedings whatsoever in connection with this Agreement, then the Company
shall pay to the Investor, as incurred by the Investor, all reasonable costs and expenses including attorneys' fees incurred in
connection therewith, in addition to all other amounts due hereunder. If this Agreement is placed by the Company in the hands
of an attorney for enforcement or is enforced by the Company through any legal proceeding, then the Investor shall pay to the
Company, as incurred by the Company, all reasonable costs and expenses including attorneys' fees incurred in connection therewith,
in addition to all other amounts due hereunder.

 

(o)Amendment
and Waiver; Failure or Indulgence Not Waiver. No provision of this Agreement may be amended or waived by the parties from
and after the date that is one (1) Business Day immediately preceding the filing of the initial Registration Statement with the
SEC. Subject to the immediately preceding sentence, (i) no provision of this Agreement may be amended other than by a written
instrument signed by both parties hereto and (ii) no provision of this Agreement may be waived other than in a written instrument
signed by the party against whom enforcement of such waiver is sought. No failure or delay in the exercise of any power, right
or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or
privilege preclude other or further exercise thereof or of any other right, power or privilege. 

 

*
* * * *

 

    	 	-28-	 

     

    

 

IN
WITNESS WHEREOF, the Investor and the Company have caused this Purchase Agreement to be duly executed as of the date first
written above.

 

	 	THE COMPANY:
	 	 	 
	 	SOLIGENIX, INC.
	 	 	 
	 	By: 	/s/ Christopher J. Schaber
	 	Name: 	Christopher J. Schaber, Ph.D.
	 	Title:	 President and Chief Executive Officer
	 	 	 
	 	INVESTOR:
	 	 	 
	 	LINCOLN PARK CAPITAL FUND, LLC
	 	BY:	LINCOLN PARK CAPITAL, LLC
	 	BY:	ROCKLEDGE CAPITAL CORPORATION
	 	 	 
	 	By:	 /s/ Josh Scheinfeld
	 	Name: 	Josh Scheinfeld
	 	Title: 	President

 

    	 	-29-	 

     

    

 

SCHEDULES

 

Schedule
4(a)Subsidiaries

Schedule
4(c)Capitalization

Schedule
4(w)Agent’s Fees

 

 

EXHIBITS

 

Exhibit
AForm of Company Counsel Opinion

Exhibit
BForm of Officer’s Certificate

Exhibit
CForm of Resolutions of Board of Directors of the Company

Exhibit
DForm of Secretary’s Certificate

Exhibit
EForm of Letter to Transfer Agent

 

     

     

    

 

DISCLOSURE
SCHEDULES

  

Schedule
4(a) – Subsidiaries

 

Schedule
4(c) – Capitalization

 

Schedule
4(w) – Agent’s Fees

 

     

     

    

 

EXHIBIT
A

 

FORM
OF COMPANY COUNSEL OPINION

 

Capitalized
terms used herein but not defined herein, have the meaning set forth in the Purchase Agreement. Based on the foregoing, and subject
to the assumptions and qualifications set forth herein, we are of the opinion that:

 

1.The
Company is a corporation existing and in good standing under the laws of the State of Delaware. The Company is qualified to do
business as a foreign corporation and is in good standing in the State of New Jersey.

 

2.The
Company has the corporate power to execute and deliver, and perform its obligations under, each Transaction Document to which
it is a party. The Company has the corporate power to conduct its business as, to the best of our knowledge, it is now conducted,
and to own and use the properties owned and used by it.

 

3.The
execution, delivery and performance by the Company of the Transaction Documents to which it is a party have been duly authorized
by all necessary corporate action on the part of the Company. The execution and delivery of the Transaction Documents by the Company,
the performance of the obligations of the Company thereunder and the consummation by it of the transactions contemplated therein
have been duly authorized and approved by the Company's Board of Directors and no further consent, approval or authorization of
the Company, its Board of Directors or its stockholders is required. The Transaction Documents to which the Company is a party
have been duly executed and delivered by the Company and are the valid and binding obligations of the Company, enforceable against
the Company in accordance with their terms except as such enforceability may be limited by general principles of equity or applicable
bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting creditor’s rights
and remedies.

4.The
execution, delivery and performance by the Company of the Transaction Documents, the consummation by the Company of the transactions
contemplated thereby including the offering, sale and issuance of the Commitment Shares and the Purchase Shares in accordance
with the terms and conditions of the Purchase Agreement, and fulfillment and compliance with terms of the Transaction Documents,
does not and shall not: (i) conflict with, constitute a breach of or default (or an event which, with the giving of notice
or lapse of time or both, constitutes or could constitute a breach or a default), under (a) the Certificate of Incorporation or
the Bylaws of the Company, (b) any material agreement, note, lease, mortgage, deed or other material instrument to which to our
knowledge the Company is a party or by which the Company or any of its assets are bound (“Material Agreements”), (ii) result
in any violation of any statute, law, rule or regulation applicable to the Company, or (iii) to our knowledge, violate any order,
writ, injunction or decree applicable to the Company or any of its subsidiaries.

 

5.The
issuance of the Purchase Shares and the Commitment Shares pursuant to the terms and conditions of the Transaction Documents has
been duly authorized by all necessary corporate action on the part of the Company. The Initial Commitment Shares are validly issued,
fully paid and non-assessable, and to our knowledge, free of all taxes, liens, charges, restrictions, rights of first refusal
and preemptive rights. 500,000 shares of Common Stock have been properly reserved for issuance as Additional Commitment Shares
under the Purchase Agreement. 5,000,000 shares of Common Stock have been properly reserved for issuance as Purchase Shares under
the Purchase Agreement. When issued in accordance with the Purchase Agreement, the Additional Commitment Shares shall be validly
issued, fully paid and non-assessable, to our knowledge, free of all taxes, liens, charges, restrictions, rights of first refusal
and preemptive rights. When issued and paid for in accordance with the Purchase Agreement, the Purchase Shares shall be validly
issued, fully paid and non-assessable, to our knowledge, free of all taxes, liens, charges, restrictions, rights of first refusal
and preemptive rights. To our knowledge, the execution and delivery of the Registration Rights Agreement do not, and the performance
by the Company of its obligations thereunder shall not, give rise to any rights of any other Person for the registration under
the Securities Act of any shares of Common Stock or other securities of the Company which have not been waived.

 

     

     

    

 

6.As
of the date hereof, the authorized capital stock of the Company consists of 50,000,000 shares of common stock, par value $0.001
per share per share, of which to our knowledge 31,269,522 shares are issued and outstanding.

 

7.Assuming
the accuracy of the representations and your compliance with the covenants made by you in the Transaction Documents, the offering,
sale and issuance of the Commitment Shares and the Purchase Shares to you pursuant to the Transaction Documents is exempt from
registration under the Securities Act.

 

8.Other
than that which has been obtained and completed prior to the date hereof, no authorization, approval, consent, filing or other
order of any federal or state governmental body, regulatory agency, or stock exchange or market, or any court, or, to our knowledge,
any third party is required to be obtained by the Company to enter into and perform its obligations under the Transaction Documents
or for the Company to issue and sell the Commitment Shares and the Purchase Shares as contemplated by the Transaction Documents.

 

9.
The Common Stock is registered pursuant to Section 12(g) of the Exchange Act. To our knowledge, since one year preceding the date
of the Purchase Agreement, the Company has been in compliance with the reporting requirements of the Exchange Act applicable to
it. To our knowledge, since one year preceding the date of the Purchase Agreement, the Company has not received any written notice
from any Person stating that the Company has not been in compliance with any of the rules and regulations (including the requirements
for continued listing) of the Principal Market.

 

10.
The Company is not, and after giving effect to the issuance of the Commitment Shares and the Purchase Shares and the application
of the proceeds as described in the Prospectus, will not be, an “investment company,” as that term is defined in the
Investment Company Act of 1940, as amended.

 

11.
Except as described in the Registration Statement and the Prospectus or the SEC Documents, none of the Material Agreements grants
to any person the right to require the Company to file a registration statement under the Securities Act with respect to any securities
of the Company owned or to be owned by such person or to require the Company to include such securities in the securities registered
pursuant to the Registration Statement or in any securities being registered pursuant to any other registration statement filed
by the Company under the Securities Act.

 

     

     

    

 

[THE
FOLLOWING MAY BE MADE IN A SEPARATE NEGATIVE ASSURANCES LETTER]

 

The
primary purpose of our professional engagement was not to establish or confirm factual matters or financial, quantitative , statistical
or accounting information, and many determinations involved in the preparation of the Offering Document are of a non-legal character.
In addition, we have not undertaken any obligation to verify independently the accuracy, completeness or fairness of any of the
factual matters set forth in the Offering Document or in the documents incorporated by reference therein (the “Incorporated
Documents”).  Consequently, in this letter we are not passing upon and do not assume any responsibility for the
accuracy, completeness or fairness of the statements contained or incorporated by reference in the Offering Document. Also, we
do not make any statement herein with respect to any of the financial statements and related notes thereto, the financial statement
schedules or the financial, statistical, quantitative or accounting data contained in, or incorporated by reference in or omitted
from, the Offering Document.

 

We
have reviewed the Offering Document (including the Incorporated Documents) and we have participated in conferences with representatives
of the Company, its independent public accountants, you and your counsel, at which conferences the contents of the Offering Document
and related matters were discussed. However, we did not participate in the preparation of the certain of Incorporated Documents.

 

Subject
to the foregoing, we confirm to you that, on the basis of the information we gained in the course of performing the services referred
to above (the “Legal Services”), no facts have come to the attention of the Primary Lawyer Group (as hereinafter defined)
which cause us to believe that he Registration Statement, at the effective time thereof (including the Incorporated Documents),
contained an untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary
to make the statements contained therein not misleading or that the Prospectus (including any Incorporated Documents), as of its
date and as of the date hereof, contained or contains any untrue statement of a material fact or omitted or omits to state any
material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading (in each case other than the financial statements and the related notes thereto, the
financial statement schedules and the other financial, statistical, quantitative and accounting data included therein or which
should be included therein, as to which we express no view). “Primary Lawyer Group” means any lawyer in this firm
who (i) signs this letter on behalf of the firm or (ii) actively renders Legal Services. In connection with delivering this letter,
the lawyers in the Primary Lawyer Group, with your consent, have not made any inquiry of other lawyers practicing law with this
firm or any review of files maintained by this firm.

 

The
statements made herein are set forth solely for your benefit and are addressed to you solely in your capacity as the initial purchaser
of the Securities. Neither this letter nor any of such statements may be used or relied upon by, or assigned to, any other person
(including any subsequent purchaser or transferee of the Securities), and neither this letter nor any copies hereof may be furnished
to any other person, filed with a governmental agency, quoted, cited or otherwise referred to without our prior written consent.

 

We
inform you that the Registration Statement became effective under the Securities Act on _______, 201__ and that no stop order
suspending the effectiveness of the Registration Statement has been issued under the Securities Act.

 

We
are not representing the Company in any pending litigation in which it is a named defendant that challenges the validity or enforceability
of, or seeks to enjoin the performance of, the Transaction Documents.

 

Further,
we confirm to you that the Registration Statement, as of its effective date, and the Prospectus, as of its date, appeared to us
on their face to respond in all material respects to the requirements of Form S-1, except that the foregoing statement does not
address any requirement relating to financial statements, notes or schedules and financial and accounting data or information
contained in or omitted from the Registration Statement or the Prospectus Supplement.

 

     

     

    

 

EXHIBIT
B

 

FORM
OF OFFICER’S CERTIFICATE

 

This
Officer’s Certificate (“Certificate”) is being delivered pursuant to Section 8(e) of that certain
Purchase Agreement dated as of March 22, 2016, (“Purchase Agreement”), by and between SOLIGENIX, INC.,
a Delaware corporation (the “Company”), and LINCOLN PARK CAPITAL FUND, LLC (the “Investor”).
Terms used herein and not otherwise defined shall have the meanings ascribed to them in the Purchase Agreement.

 

The
undersigned, ___________, ______________ of the Company, hereby certifies as follows:

 

1.I
am the _____________ of the Company and make the statements contained in this Certificate;

 

2.The
representations and warranties of the Company are true and correct in all material respects (except to the extent that any of
such representations and warranties is already qualified as to materiality in Section 4 of the Purchase Agreement, in which case,
such representations and warranties are true and correct without further qualification) as of the date when made and as of the
Commencement Date as though made at that time (except for representations and warranties that speak as of a specific date, in
which case such representations and warranties are true and correct as of such date);

 

3.The
Company has performed, satisfied and complied in all material respects with covenants, agreements and conditions required by the
Transaction Documents to be performed, satisfied or complied with by the Company at or prior to the Commencement Date.

 

4.
The Company has not taken any steps, and does not currently expect to take any steps, to seek protection pursuant to any Bankruptcy
Law nor does the Company or any of its Subsidiaries have any knowledge or reason to believe that its creditors intend to initiate
involuntary bankruptcy or insolvency proceedings. The Company is financially solvent and is generally able to pay its debts as
they become due.

 

IN
WITNESS WHEREOF, I have hereunder signed my name on this ___ day of ___________.

 

______________________

Name:

Title:

 

The
undersigned as Secretary of SOLIGENIX, INC., a Delaware corporation, hereby certifies that ___________ is the duly elected,
appointed, qualified and acting ________ of _________ and that the signature appearing above is his genuine signature.

 

___________________________________

Secretary

 

     

     

    

 

EXHIBIT C

 

FORM
OF COMPANY RESOLUTIONS

FOR
SIGNING PURCHASE AGREEMENT

 

UNANIMOUS
WRITTEN CONSENT OF

SOLIGENIX,
INC.

 

In
accordance with the corporate laws of the State of Delaware, the undersigned, being all of the directors of SOLIGENIX, INC.,
a Delaware corporation (the “Corporation”), do hereby consent to and adopt the following resolutions as the action
of the Board of Directors for and on behalf of the Corporation and hereby direct that this Consent be filed with the minutes of
the proceedings of the Board of Directors:

 

WHEREAS,
there has been presented to the Board of Directors of the Corporation a draft of the Purchase Agreement (the “Purchase Agreement”)
by and between the Corporation and Lincoln Park Capital Fund, LLC (“Lincoln Park”), providing for the purchase by
Lincoln Park of up to Twelve Million Dollars ($12,000,000) of the Corporation’s common stock, par value $0.001 per share
per share (the “Common Stock”); and

 

WHEREAS,
after careful consideration of the Purchase Agreement, the documents incident thereto and other factors deemed relevant by the
Board of Directors, the Board of Directors has determined that it is advisable and in the best interests of the Corporation to
engage in the transactions contemplated by the Purchase Agreement, including, but not limited to, the issuance of up to 600,000
shares of Common Stock to Lincoln Park as a commitment fee (the “Commitment Shares”) and the sale of shares of Common
Stock to Lincoln Park up to the available amount under the Purchase Agreement (the "Purchase Shares").

 

Transaction
Documents

 

NOW,
THEREFORE, BE IT RESOLVED, that the transactions described in the Purchase Agreement are hereby approved and ________________________________________
(the “Authorized Officers”) are severally authorized to execute and deliver the Purchase Agreement, and any other
agreements or documents contemplated thereby including, without limitation, a registration rights agreement (the “Registration
Rights Agreement”) providing for the registration of the shares of the Company’s Common Stock issuable in respect
of the Purchase Agreement on behalf of the Corporation, with such amendments, changes, additions and deletions as the Authorized
Officers may deem to be appropriate and approve on behalf of, the Corporation, such approval to be conclusively evidenced by the
signature of an Authorized Officer thereon; and

 

FURTHER
RESOLVED, that the terms and provisions of the Registration Rights Agreement by and among the Corporation and Lincoln Park are
hereby approved and the Authorized Officers are authorized to execute and deliver the Registration Rights Agreement (pursuant
to the terms of the Purchase Agreement), with such amendments, changes, additions and deletions as the Authorized Officer may
deem appropriate and approve on behalf of, the Corporation, such approval to be conclusively evidenced by the signature of an
Authorized Officer thereon; and

 

FURTHER
RESOLVED, that the terms and provisions of the forms of Commencement Irrevocable Transfer Agent Instructions and Notice of Effectiveness
of Registration Statement (collectively, the “Instructions”) are hereby approved and the Authorized Officers are authorized
to execute and deliver the Instructions on behalf of the Company in accordance with the Purchase Agreement, with such amendments,
changes, additions and deletions as the Authorized Officers may deem appropriate and approve on behalf of, the Corporation, such
approval to be conclusively evidenced by the signature of an Authorized Officer thereon; and

 

     

     

    

 

Execution
of Purchase Agreement

 

FURTHER
RESOLVED, that the Corporation be and it hereby is authorized to execute the Purchase Agreement providing for the purchase of
up to Twelve Million Dollars ($12,000,000) of the Corporation’s common stock; and

 

Issuance
of Common Stock

 

FURTHER
RESOLVED, that the Corporation is hereby authorized to issue to Lincoln Park Capital Fund, LLC, 100,000 shares of Common Stock
as Initial Commitment Shares and that upon issuance of the Initial Commitment Shares pursuant to the Purchase Agreement the Initial
Commitment Shares shall be duly authorized, validly issued, fully paid and nonassessable with no personal liability attaching
to the ownership thereof; and

 

FURTHER
RESOLVED, that the Corporation is hereby authorized to issue 500,000 shares of Common Stock as Additional Commitment Shares under
the Purchase Agreement in accordance with the terms of the Purchase Agreement and that, upon issuance of the Additional Commitment
Shares pursuant to the Purchase Agreement, the Additional Commitment Shares will be duly authorized, validly issued, fully paid
and nonassessable with no personal liability attaching to the ownership thereof; and

 

FURTHER
RESOLVED, that the Corporation shall reserve 500,000 shares of Common Stock for issuance as Additional Commitment Shares under
the Purchase Agreement; and

 

FURTHER
RESOLVED, that the Corporation is hereby authorized to issue shares of Common Stock upon the purchase of Purchase Shares up to
the Available Amount under the Purchase Agreement in accordance with the terms of the Purchase Agreement and that, upon issuance
of the Purchase Shares pursuant to the Purchase Agreement, the Purchase Shares will be duly authorized, validly issued, fully
paid and nonassessable with no personal liability attaching to the ownership thereof; and

 

FURTHER
RESOLVED, that the Corporation shall initially reserve 5,000,000 shares of Common Stock for issuance as Purchase Shares under
the Purchase Agreement. 

 

Approval
of Actions

 

FURTHER
RESOLVED, that, without limiting the foregoing, the Authorized Officers are, and each of them hereby is, authorized and directed
to proceed on behalf of the Corporation and to take all such steps as deemed necessary or appropriate, with the advice and assistance
of counsel, to cause the Corporation to consummate the agreements referred to herein and to perform its obligations under such
agreements; and

 

FURTHER
RESOLVED, that the Authorized Officers be, and each of them hereby is, authorized, empowered and directed on behalf of and in
the name of the Corporation, to take or cause to be taken all such further actions and to execute and deliver or cause to be executed
and delivered all such further agreements, amendments, documents, certificates, reports, schedules, applications, notices, letters
and undertakings and to incur and pay all such fees and expenses as in their judgment shall be necessary, proper or desirable
to carry into effect the purpose and intent of any and all of the foregoing resolutions, and that all actions heretofore taken
by any officer or director of the Corporation in connection with the transactions contemplated by the agreements described herein
are hereby approved, ratified and confirmed in all respects.

 

IN
WITNESS WHEREOF, the Board of Directors has executed and delivered this Consent effective as of __________, 2016.

 

 

 

______________________

 

______________________

 

______________________

  

 

 

being
all of the directors of SOLIGENIX, INC.

 

     

     

    

 

EXHIBIT
D

 

FORM
OF SECRETARY’S CERTIFICATE

 

This
Secretary’s Certificate (“Certificate”) is being delivered pursuant to Section 8(k) of that certain Purchase
Agreement dated as of March 22, 2016 (“Purchase Agreement”), by and between SOLIGENIX, INC., a Delaware corporation
(the “Company”), and LINCOLN PARK CAPITAL FUND, LLC (the “Investor”), pursuant to which the Company
may sell to the Investor up to Twelve Million Dollars ($12,000,000) of the Company's Common Stock, par value $0.001 per share
per share (the "Common Stock"). Terms used herein and not otherwise defined shall have the meanings ascribed to them
in the Purchase Agreement.

 

The
undersigned, ____________, Secretary of the Company, hereby certifies as follows:

 

1.I
am the Secretary of the Company and make the statements contained in this Secretary’s Certificate.

 

2.Attached
hereto as Exhibit A and Exhibit B are true, correct and complete copies of the Company’s bylaws (“Bylaws”)
and Certificate of Incorporation (“Charter”), in each case, as amended through the date hereof, and no action has
been taken by the Company, its directors, officers or stockholders, in contemplation of the filing of any further amendment relating
to or affecting the Bylaws or Charter.

 

3.Attached
hereto as Exhibit C are true, correct and complete copies of the resolutions duly adopted by the Board of Directors of
the Company on _____________, at which a quorum was present and acting throughout. Such resolutions have not been amended, modified
or rescinded and remain in full force and effect and such resolutions are the only resolutions adopted by the Company’s
Board of Directors, or any committee thereof, or the stockholders of the Company relating to or affecting (i) the entering into
and performance of the Purchase Agreement, or the issuance, offering and sale of the Purchase Shares and the Commitment Shares
and (ii) and the performance of the Company of its obligation under the Transaction Documents as contemplated therein.

 

4.As
of the date hereof, the authorized, issued and reserved capital stock of the Company is as set forth on Exhibit D hereto.

 

IN
WITNESS WHEREOF, I have hereunder signed my name on this ___ day of ____________.

 

_________________________

Secretary

  

The
undersigned as ___________ of SOLIGENIX, INC., a Delaware corporation, hereby certifies that ____________ is the duly elected,
appointed, qualified and acting Secretary of _________, and that the signature appearing above is his genuine signature.

 

___________________________________

 

     

     

    

 

EXHIBIT
E

 

FORM
OF LETTER TO THE TRANSFER AGENT FOR THE ISSUANCE OF THE INITIAL COMMITMENT SHARES AT SIGNING OF THE PURCHASE AGREEMENT

 

[COMPANY
LETTERHEAD]

 

 

 

[DATE]

 

[TRANSFER
AGENT]

__________________

__________________

__________________

 

Re:
Issuance of Common Stock to Lincoln Park Capital Fund, LLC

 

Dear
________,

 

On
behalf of SOLIGENIX, INC., (the “Company”), you are hereby instructed to issue as soon as possible
a share certificate representing an aggregate of 100,000 shares of our common stock in the name of Lincoln Park Capital
Fund, LLC. The share certificate should be dated [DATE OF THE PURCHASE AGREEMENT]. I have included a true and correct
copy of a unanimous written consent executed by all of the members of the Board of Directors of the Company adopting resolutions
approving the issuance of these shares. The share certificate should bear the following restrictive legend:

 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE
STATE SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR
ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR APPLICABLE STATE SECURITIES LAWS, UNLESS SOLD PURSUANT TO: (1) RULE 144 UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (2)
AN OPINION OF HOLDER’S COUNSEL, IN A CUSTOMARY FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE
SECURITIES LAWS.

 

     

     

    

 

The
share certificate should be sent as soon as possible via overnight mail to the following address:

 

Lincoln
Park Capital Fund, LLC

440
North Wells, Suite 410

Chicago,
IL 60654

Attention:
Josh Scheinfeld/Jonathan Cope

 

Thank
you very much for your help. Please call me at ______________ if you have any questions or need anything further.

 

SOLIGENIX,
INC.

 

BY:_____________________________

[name]

[title]

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