Document:

Exhibit 10.3

 

 

 

 

 

 

 

Fixed Assets Loan Contract

 

 

  

 

 

		Fujian Branch, China Construction Bank

  

    	 

    	 

    

  

Contract No.: Jian Min Dong Ji Gu Dai Zi
No. 1 (2014) 

 

Borrower (Party A): Yida (Fujian) Tourism
Group Ltd.

Address: No. 68 Xianfu Road, Zhangcheng
Town, Yongtai County

Postal Code: 350700

Legal Representative (Principal Officer):
Chen Minhua

Fax: 0591-28308305 

Tel.: 0591-28308999

 

Lender (Party B): Fuzhou Chengdong
Sub-Branch, China Construction Bank

Address: No. 56, Gutian Road, Fuzhou
City

Postal Code: 350005

Principal Officer: Yang Dayuan

Fax: 83318423

Tel.: 83341725

 

    	-1-

    	 

    

 

WHEREAS Party A has applied for a loan from
Party B and Party B has agreed to provide a loan to Party A for Party A’s construction of Yunding Tourism Zone Project
located in China, Party A and Party B hereby enter into this Contract on the basis of mutual consensus in accordance with the
relevant laws and regulations and to be complied with by both parties.

 

Article 1 Amount of the Loan

 

The Amount of the loan borrowed by Party A
from Party B is RMB One Hundred and Ninety Two Million only.

 

Article 2 Purpose and Source of Repayment

 

Party A shall use the loan for investing in
fixed assets. Without Party B’s written consent, Party A shall not change the purpose of the loan.

 

The fixed assets to be invested in (hereafter
referred to as the “Project”)

 

Article 3 Term of the Loan

 

The Term of the loan is ninety six months
from July 15, 2014 to July 15, 2022.

 

If the start date of loan under this Contract
is inconsistent with that in the Loan Transfer Certificate (also referred to hereafter as the Loan Receipt), the start date shall
be the actual date indicated in the Loan Transfer Certificate upon the issuance of the first disbursement of loan, and the due
date in Clause 1 hereof shall be adjusted accordingly.

 

The Loan Transfer Certificate is an integral
part of this Contract and has the same legal effect as this Contract.

 

Article 4 Interest Rate, Penalty Interest
Rate, Interest Calculation and Settlement

 

I. Interest Rate

 

An annual interest rate shall be adopted in
this Contract. The interest rate shall be calculated as set forth in (4) below:

 

(I) Fixed rate, i.e. BLANK%, that shall
remain unchanged during the loan period;

 

(II) Fixed rate, i.e. the benchmark interest
rate as of the Interest Commencement Date BLANK (insert “plus” or “minus”) BLANK%, that shall
remain unchanged during the loan period;

 

(III) Fixed rate, i.e. LPR BLANK (insert
“plus” or “minus”) BLANK base point(s) (1 base point = 0.01%, accurate to 0.01), that shall remain
unchanged during the loan period;

 

(IV) Floating interest rate, i.e. the benchmark
interest rate as of the Interest Commencement Date plus (insert “plus” or “minus”) 0 % of such benchmark
interest rate and adjusted once every twelve months during the period from the Interest Commencement Date to the date on
which the entire principal and interest are paid back. This adjustment will be based on the benchmark interest rate on the interest
rate adjustment date plus or minus the percentage listed above. The interest rate adjustment date is the day of the adjustment
month that corresponds to the day of the month of the Interest Commencement Date and may be the last day of the adjustment month
if there is no corresponding day in the adjustment month.

 

(V) Floating interest rate, i.e. LPR BLANK
(insert “plus” or “minus”) BLANK base point(s) (1 base point = 0.01%, accurate to 0.01),and adjusted
once every BLANK months during the period from the Interest Commencement Date to the date on which the entire principal
and interest are paid back. This adjustment will be based on the LPR of the business day prior to the interest rate adjustment
date plus or minus the base point(s) listed above. The interest rate adjustment date is the day of the adjustment month that corresponds
to the day of the month of the Interest Commencement Date and may be the last day of the adjustment month if there is no corresponding
day in the adjustment month.

 

    	-2-

    	 

    

 

(VI) BLANK 

 

II. Penalty Interest Rate

 

(I) If the Borrower does not use the loan in
accordance with this Contract, the penalty interest rate shall be the loan interest rate plus 100%; if the interest rate
is adjusted under Article 4.I.(3) the penalty interest will be calculated accordingly after the interest rate has been adjusted
and then increased by the amount set forth above.

 

(II) If Party A fails to repay the loan on
due date, the overdue penalty interest rate under this Contract shall be the loan interest rate plus 50%; if the interest
rate is adjusted under Article 4.I.(3) the penalty interest will be calculated accordingly after the interest rate has been adjusted
and then increased by the amount set forth above.

 

(III) In case of both overdue repayment and
misappropriation of the loan, the penalty interest rate or the compound interest rate shall be adopted, whichever is higher.

 

III. The Interest Commencement Date in this
Article refers to the date on which the first disbursement of the loan is transferred to the stipulated disbursement account in
Article 6 (hereafter referred to as “Disbursement Account”).

 

The benchmark interest rate for the first disbursement
of the loan is based on the lending rate announced by the People’s Bank of China on the Interest Commencement Date, after
which the benchmark interest rate shall be the lending rate issued by People’s Bank of China on the adjustment date when
the lending interest rate is adjusted in accordance with the terms above; if no same-grade lending rate is issued by the People’s
Bank of China, the benchmark interest rate shall comply with the publicly accepted or normal industry rates on the adjustment date,
unless agreed otherwise.

 

LPR used in this Contract shall be determined
according to the following item BLANK:

 

1. LPR for the first disbursement of the loan
is the one-year RMB loan prime rate announced by China Construction Bank (“CCB LPR”) on the business day immediately
prior to the effective date of this Contract, after which when the lending interest rate is adjusted in accordance with the terms
above, LPR is CCB LPR on the business day immediately prior to the adjustment date.

 

2. LPR for the first disbursement of the loan
is the one-year RMB loan prime rate announced by China Construction Bank (“CCB LPR”) on the business day immediately
prior to the Interest Commencement Date, after which when the lending interest rate is adjusted in accordance with the terms above,
LPR is CCB LPR on the business day immediately prior to the adjustment date.

 

3. LPR for the first disbursement of the loan
is the one-year RMB loan prime rate announced by National Interbank Funding Center (“Market LPR”) on the business day
immediately prior to the effective date, after which when the lending interest rate is adjusted in accordance with the terms above,
LPR is Market LPR on the business day immediately prior to the adjustment date.

 

4. LPR for the first disbursement of the loan
is the one-year RMB loan prime rate announced by National Interbank Funding Center (“Market LPR”) on the business day
immediately prior to the Interest Commencement Date, after which when the lending interest rate is adjusted in accordance with
the terms above, LPR is Market LPR on the business day immediately prior to the adjustment date.

 

IV. The loan interest shall be calculated from
the date on which the loan is transferred to the Disbursement Account at a daily rate. The daily interest rate = annual rate /
360. If Party A fails to pay the interest on the settlement date, the compound rate shall be applied from the following day.

 

    	-3-

    	 

    

 

V. Settlement

 

(I) Loans with fixed interest rate shall be
settled based on the agreed rate, while interest for loans with floating interest rates shall be calculated based on the floating
interest rate for each floating interest period; in case of several interest rate fluctuations in a single settlement period, interest
of each floating period shall be first calculated respectively and added together on the settlement date.

 

(II) The loan interest under this Contract
is settled in the first way below:

 

1. For monthly settlements, the settlement
date shall be the 20th day of each month;

 

2. For quarterly settlements, the settlement
date shall be the 20th day of the last month of the quarter;

 

3. Other methods BLANK.

 

Article 5 Disbursement and Payment of Loan

 

I. Preconditions of Disbursement

 

Unless waived in full or in part by Party B,
Party B shall undertake no obligation to disburse the loan unless all the following preconditions have been continuously satisfied:

 

1. Party A has completed all approval, registration,
delivery, insurance and other statutory formalities related to the loan under this Contract;

 

2. If a guarantee is provided for this Contract,
such guarantee has met with the requirements of Party B and has come into effect and shall remain effective;

 

3. Party A has opened an account for withdrawal
and repayment subject to the requirements of Party B;

 

4. Party A has not defaulted in connection
with any term or condition in this Contract or incurred any situation that may undermine the creditor’s rights of Party B;

 

5. Party B is not prohibited or restricted
from issuing the loan to Party A by the requirement of any law, regulation, rule or authorized authority;

 

6. Capital funds in proportion to the loan
to be issued have been in place in full amount, and the actual Project progress matches the investment amount;

 

7. Party A’s major financial indicators
shall continuously comply with the requirements;

 

8. In the event any of the following apply
to a single payment (disbursement), Party A shall provide Party B with relevant materials:

 

(1) The amount of one single payment (disbursement)
exceeds 5% of the total investment in the Project (RMB Twenty Five Million, Six Hundred Ninety Two Thousand, Six Hundred and
Sixty only);

 

(2) The amount of one single payment (disbursement)
exceeds over RMB 5 million;

 

BLANK

 

If any of the above situations apply, Party
A shall provide Party B with the following:

 

(1) The loan transfer certificate and the
payment settlement voucher signed by Party A; certificates on receipt and use of capital fund (e.g. registration capital certificate,
details of capital fund, receipts on use of capital fund, payment vouchers, etc.); the corresponding transaction materials of payments
(including, but not limited to commodity / labor service contract and invoices that proves the payment has actually been made);

 

(2) Other materials requested by Party B.

 

9. If a single payment (disbursement) does
not fall into the situations set out in Clause I. 8, Party A shall provide Party B with the corresponding use plan of the disbursement
and other materials requested by Party B;

 

    	-4-

    	 

    

 

 

10. Materials provided by Party A to Party
B shall be:

 

(1) Legal, truthful, complete, accurate and
effective;

 

(2) BLANK

 

(3) Other requirements put forward by Party
B.

 

11. Other conditions:

 

BLANK

 

II. Planned Use of Loan

 

The planned use of loan is as set forth in
number 4 below:

 

(I) The planned use of loan is as follows:

 

	1. Date BLANK 	amount BLANK;
	2. Date BLANK 	amount BLANK;
	3. Date BLANK 	amount BLANK;
	4. Date BLANK 	amount BLANK;
	5. Date BLANK 	amount BLANK;
	6. Date BLANK 	amount BLANK;
	7. Date BLANK 	amount BLANK;
	8. Date BLANK 	amount BLANK;
	9. Date BLANK 	amount BLANK;
	10. Date BLANK 	amount BLANK;

 

(II) The planned use of loan is as follows:

 

	1. From BLANK                 (date)	to BLANK                 (date)
	2. From BLANK                 (date)	to BLANK                 (date)
	3. From BLANK                 (date)	to BLANK                 (date)
	4. From BLANK                 (date)	to BLANK                 (date)
	5. From BLANK                 (date)	to BLANK                 (date)
	6. From BLANK                 (date)	to BLANK                 (date)
	7. From BLANK                 (date)	to BLANK                 (date)
	8. From BLANK                 (date)	to BLANK                 (date)
	9. From BLANK                 (date)	to BLANK                 (date)
	10. From BLANK               (date)	to BLANK                 (date)

 

(III) Disbursement of loan shall be applied
for at any time based on the actual needs of the Project.

 

(IV) Party A shall draw the first installment
prior to September 1, 2014 and the last installment prior to July 6, 2015. Party A shall draw all the loan proceeds prior to the
date specified above. Otherwise, any portion not drawn shall become void automatically. 

 

III. Party A shall use the loan in accordance
with the use plan set forth in Clause II, and shall not bring forward, postpone, split or cancel the withdrawal of the loan unless
with Party B’s written consent.

 

Party A shall pay Party B a sum of the loan
commitment fee as follows:

 

BLANK

 

The formula to calculate the loan commitment
fee is as follows:

 

BLANK

 

Party A shall pay the loan commitment fee on
a BLANK (alternatively, (1) monthly, (2) quarterly) basis and within the first five business day(s) of each BLANK
(alternatively, (1) month, (2) quarter).

 

    	-5-

    	 

    

 

IV. In case that Party A uses the disbursement
by installments, the expiration date of the loan term shall still be subject to Article 3.

 

V. Trustee Payment of Party B

 

1. In case that a single payment meets any
condition listed in Clause I.8, Party A shall entrust Party B to pay the counterparty of Party A with the disbursement. Party A
shall not make the payment to the counterparty by itself.

 

2. If entrusted to make such payment, Party
B shall transfer the disbursement to the Loan Disbursement Account and then to the account of Party A’s counterparty directly.
Party A shall not dispose of the loan in any form (including but not limited to the transfer or disbursement).

 

3. Party B shall undertake a pro forma review
of the amount, time, recipient, method and account of payment based on the materials provided by Party A. Upon completion of such
pro forma review of the payment factors, if Party B finds that such factors have met its requirements, it shall transfer the disbursement
to Party A’s counterparty.

 

4. The foregoing pro forma review of the payment
factors by Party B shall not be interpreted as Party B’s confirmation of the authenticity and legal and regulatory compliance
of the transaction, nor shall Party B be involved in any dispute between Party A and its counterparty or any other third Party,
or assume any liability or obligation for Party A. In addition, Party A shall compensate Party B for any loss incurred to Party
B arising from the trustee payment.

 

5. Under the trustee payment arrangement with
Party B, if any failure to transfer the disbursement to Party A’s counterparty’s account is caused by inaccurate information
provided by Party A, then this situation shall be handled as agreed below:

 

(1) Any and all consequences therefrom,
including, but not limited to, any and all losses due to failure in the payment of loan proceeds or failure in the prompt payment
of loan proceeds to Party A’s counterparty shall be assumed by Party A and Party B shall not be held responsible therefor
and any and all losses of Party B so incurred shall also be compensated by Party A; (2) Party A shall not dispose of such portion
of loan proceeds in any way (including, but not limited to transfer and deposit withdrawal; (3) Party A shall promptly correct
the information and provide the new materials within two business days on request of Party B. 

 

6. Any risk, liability or loss in case of any
failure, mistake or delay of the disbursement transfer caused by mistake of anyone other than Party B shall be borne by Party A.
Party A shall compensate for any loss incurred to Party B arising therefrom.

 

VI. Party A shall assume any risk, liability
or loss in the event that any authorized agency freezes or deducts any disbursement transferred into the Loan Disbursement Account.
Party A shall compensate for any loss incurred to Party B arising therefrom.

 

Article 6 Account Use and Supervision

 

1. Loan Disbursement Account

 

Loan Disbursement Account under this Contract
shall be determined as specified in (2) below:

 

(1) Party A shall open a Loan Disbursement
Account in Party B for the disbursement and payment of the loan under this Contract within BLANK business day(s) following
the effective date hereof before the first disbursement.

 

(2) Other accounts opened by Party A in Party
B (Account No.: 35001610007052552630-3001).

 

    	-6-

    	 

    

 

2. Repayment Reserve Account

 

Party A shall open a Repayment Reserve Account
in Party B or use the existing account (Account No.: 35001610007052552630-001) in Party B as the Repayment Reserve Account within
two business days following the effective date hereof. The Repayment Reserve Account shall meet the following requirements:

 

(1) 90% of the Project’s or Party
A’s cash flow (including but not limited to the ticket revenue, revenue from sightseeing vehicles, revenue from ropeway,
revenue from restaurant, revenue from guest room, recreation revenue, etc.) shall be transferred to such account.

 

(2)The average reserve amount in such account
shall meet the following requirement: BLANK.

 

(3) Party A shall ensure that the balance
in the account on the business day immediately prior to each principal and / interest repayment date shall not be less that the
amount due.

 

(4) Without consent of Party B, Party A shall
not misappropriate the capital in the Repayment Reserve Account in any manner (including but not limited to transfer or disbursement)

 

3. Party B is entitled to supervise the account
opened by Party A in Party B:

 

(1) Account No.:35001610007052552630

 

(2) Account No.: BLANK;

 

(3) Account No.: BLANK.

 

Supervision measures of Party B include but
not limit to:

 

Party B may take all kinds of measures to
trace the use of fund from the account and Party A shall cooperate unconditionally and shall provide the relevant conveniences
for this purpose (including, but not limited to providing details of funds from account opened in other financial institutions,
as requested by Party B).

 

Party A shall not misappropriate the capital
in said account in any manner (including but not limited to the transfer or disbursement) without consent of Party B.

 

Article 7 Repayment

 

I. Principle of Repayment

 

Party A shall repay the loan under this Contract
in accordance with the following principle:

 

Party B enjoys the right to first repay the
advance payment by Party B for various fees that shall be paid by Party A and other fees for realizing Party B’s creditor’s
rights with the repayment by Party A hereunder; and the remaining interest repayment shall be repaid prior to the remaining capital
repayment and be settled when the latter is settled. But in case of a loan for which no principal or interest has been paid within
ninety overdue days, or where otherwise required by laws and regulations, Party A shall repay the principal prior to the interest
after the repayment of the said fees.

 

II. Interest Repayment

 

Party A shall repay the interest on the interest
settlement date. The first interest repayment date is the first settlement date after the disbursement date of the loan, and the
last repayment shall clear the interest and capital.

 

III. Repayment Plan

 

The repayment plan is determined as specified
in (2) below:

 

(1) Repayment plan is as follows:

 

1. May 25, 2015: RMB Four Million only;

 

2. October 25, 2015: RMB Four Million only;

 

3. May 25, 2016: RMB Five Million only;

 

4. October 25, 2015: RMB Five Million only;

 

5. May 25, 2017: RMB 10 million only;

 

6. October 25, 2017: RMB 10 million only; 

                

    	-7-

    	 

    

 

7. May 25, 2018: RMB 10 million only;

 

8. October 25, 2018: RMB 10 million only;

 

9. May 25, 2019: RMB 15 million only;

 

10. October 25, 2019: RMB 15 million only;

 

11. May 25, 2020: RMB 15 million only;

 

12. October 25, 2020: RMB 15 million only;

13. May 25, 2021: RMB 20 million only;

 

14. October 25, 2021: RMB 20 million only;

 

15. July 15, 2022: RMB 34 million only;

 

(2) BLANK

 

IV. Method of Repayment

 

Party A shall deposit a sufficient amount for
current repayment in the Repayment Reserve Account or other accounts opened in Party B and automatically transfer the amount to
repay the loan before the agreed repayment date hereof (Party B is entitled to transfer the amount from the foregoing accounts),
or transfer the amount for repayment in other accounts on the agreed date hereof.

 

V. Early Repayment

 

Party A shall submit a written application
to Party B within 20 business days before paying the loan and may repay part or all of the capital in advance with the consent
of Party B.

 

Interest of early repayment of Party A shall
be calculated based on the actual lending days and agreed loan interest rate hereof.

 

In case of Party B’s consent of Party
A’s early repayment, Party B is entitled to receive compensation from Party A that is calculated based on 1 below:

 

1. Compensation = early repayment × number
of months paid in advance × 1‰ (less than one month is calculated as one month);

 

2. BLANK.

 

In case of installment repayment by Party A,
the early repayment of partial capital, shall follow the reverse sequence set forth in the Repayment Plan, after which the remaining
non-repaid loan shall be calculated as the agreed loan interest rate hereof.

 

Article 8 Rights and Obligations of Party
A

 

I. Rights of Party A

 

(1) Party A is entitled to request Party B
to disburse the loan in accordance with this Contract;

 

(2) Party A is entitled to use the loan in
accordance with this Contract;

 

(3) Party A is entitled to apply to Party B
for loan extensions provided that it complies with the requirements of Party B;

 

(4) Party A is entitled to request Party B
to keep financial information and other trade secrets in connection with Party A’s manufacturing and operation provided by
Party A confidential, unless otherwise required by laws and regulations or by authorized agencies or as otherwise agreed by both
Parties;

 

(5) Party A is entitled to refuse to provide
any bribe demanded by Party B or its staff, and report such demand or Party B’s violation of state laws and regulations on
credit interest rate and service charges to the relevant authorities.

 

II. Obligations of Party A

 

(1) Party A shall withdraw the loan and repay
the entire principal and interest as well as any fees agreed under this Contract;

 

    	-8-

    	 

    

 

(2) Party A shall provide relevant financial
statements, accounting and operation materials, etc. requested by Party B, including but not limited to the balance sheet as of
the end of the previous quarter, the profit and loss statement (or the revenue and expenditure statement, in case of a public sector
institution) as of the end of the previous quarter within the first 20 business days of the first month of each quarter, and the
cash flow statement of the current year at the year end; in addition, Party A shall ensure that the information provided is legal,
truthful, complete and valid, with no false materials or concealment of any significant financial or operational issues;

 

(3) In case of any major adverse event that
has an impact on Party A’s solvency or other events that cause damage to Party B’ creditor’s rights, or in case
of any changes to the name, legal representative (principal officer), address, business scope, registered capital or the articles
of associations, Party A shall send a written notice and the related material after such change to Party B within 3 business days
following the occurrence of such event or change;

 

(4) Party A shall use the loan in accordance
with this Contract without diverting or misappropriating the loan or using the loan for illegal or non-compliant trades; and shall
cooperate with and accept the inspection and supervision from Party B on its business, finance, and the use of loan under this
Contract. In addition, Party A shall not evade the debt owed to Party B by surreptitiously withdrawing the capital or transferring
the assets or through related transactions, nor utilize any false contract entered into with an affiliate to obtain capital or
credit through discount or pledge with the notes receivable, accounts receivable and other financial claim without actual trades;

 

(5) If Party A uses the loan under this Contract
for the purpose of production and construction, it shall comply with the state environmental regulations;

 

(6) Party A shall not provide guarantee with
the assets generated from the loan under this Contract to any third parties without the prior consent of Party B before repaying
the entire amount of principal and interest;

 

(7) Party A shall promptly report to Party
B the related transactions with value equal to more than 10% of the net assets of Party A if it is a group client, including: (a)
the relationship among the transaction parties; (b) items and nature of transactions; (c) amount or corresponding proportion of
the transactions; (d) pricing polices (including transactions with no amount or only nominal amount);

 

(8) Party A shall ensure the approval of the
proposed Project by relevant authority and no illegal practice, as well as obtain sufficient capital or other funds to be raised
at the prescribed proportion, within the stipulated time period and in full amount, and obtain sufficient project capital in proportion
to the loan which shall be used together with the loan, as well as complete the Project as planned;

 

(9) Party A shall obtain written consent from
Party B before Party A undertakes merger, division, equity transfer, outbound investment and substantial increase in debt financing,
etc. However, such written consent of Party B shall not affect Party B’s right to resort to any remedies hereunder if Party
B finds that the said actions may damage its creditor’s rights;

 

(10) Party A shall regularly summarize and
report the payment of loan to Party B on a monthly basis [alternatively, (1) monthly, (2) quarterly]. Party A shall report
the payment of loan in the previous month [alternatively, (1) month, (2) quarter] within the first 10 business days of each
month [alternatively, (1) month, (2) quarter].

 

    	-9-

    	 

    

 

(11) Party A shall assist and cooperation Party
B with the inspection and supervision of the business, financial activities and construction and operation of the Project, and
request the sponsor of the Project to cooperate with such inspection and supervision by Party B.

 

Article 9 Rights and Obligations of Party
B

 

I. Party B is entitled to request Party A to
repay the principal, interest and expenses of the loan on time, to manage and control the payment of the loan, to dynamically monitor
the income cash flow of the Project and the entire cash flow of Party A, to exercise other rights agreed hereunder, and to request
Party A to perform any other obligations under this Contract;

 

II. Party B shall disburse the loan in accordance
with this Contract, except for delays caused by the fault of Party A or by any other reason that cannot be attributed to Party
B;

 

III. Party B shall keep the trade secrets in
connection with financial information and manufacturing and operation provided by Party A confidential, unless otherwise required
by laws and regulations, or otherwise required by authorized agencies or otherwise agreed by both Parties;

 

IV. Party B shall not offer bribe to Party
A and its staff, or demand for or accept any bribe from Party A and its staff;

 

V. Party B shall not commit any conduct not
in good faith or that will damage the legal rights of Party A.

 

Article 10 Default Liability and Remedies
for Damage to Creditor’s Right of Party B

 

I. Party B’s Default Event and Default
Liability

 

(1) Party A may request Party B to continue
to disburse the loan hereunder if Party B has no justifiable reason to reject such disbursement;

 

(2) Party A is entitled to request Party B
to return any interest or fees charged by Party B in violation of any prohibitive provisions of state laws and regulations.

 

II. Party A’s Default Event

 

(1) Party A breaches any provisions under this
Contract or violates any statutory obligations;

 

(2) Party A expressly indicates or indicates
by act that Party A will not perform any obligation under this Contract.

 

III. Possible Damage to Creditor’s Right
of Party B

 

(1) Party B may deem it as damage to its creditor’s
rights in the event of the following circumstances: Party A is under contract operation, custody (administration), lease, joint-stock
reform, registered capital decrease, investment, joint operation, consolidation, merger, acquisition and restructuring, division,
equity joint venture, equity transfer, substantial increase of debt financing, (being filed or) filing for winding-up, filing for
dissolution, being revoked, (being filed or) filing for bankruptcy, change of controlling shareholder/actual controller, or major
asset transfer, production stoppage, operation suspension, huge penalty imposed by the authorized authority, being cancelled from
registration, revocation of business license, involvement in material legal disputes, serious difficulty in production and operation,
or deterioration of financial position, inability of the legal representative or the principal to normally perform its duties;

 

(2) Party B may deem it as damage to its creditor’s
rights in the event of the following circumstances: Party A’s failure to repay the mature debt (including the mature debts
to each agency of the China Construction Bank or other third parties), transferring assets at undervalued cost or for free, reducing
debts for third parties, indolence in exercising the creditor’s or other rights, or providing guarantees to third parties;
Party A’s financial indicators not continuously meeting the requirements; Party A’s failure to repay the loan in accordance
with this Contract, or avoiding payment entrusted by Party B by breaking up the total sum into smaller ones; the progress of the
Project lagging behind the use of the loan; unusual fluctuations of capital in any accounts of Party A (including but not limited
to the Repayment Reserve Account and other accounts supervised by Party B);

 

    	-10-

    	 

    

 

(3) Shareholders of Party A abuse the independent
legal person status of company or the limited liability of shareholders to evade the debt, which Party B deems it as a possible
damage to its creditor’s rights;

 

(4) Any agreed precondition for the disbursement
of loan under this Contract is not met in a continuous manner;

 

(5) Party B may deem it as damage to its creditor’s
rights if any of the following circumstances occurs to the guarantor:

 

1. Violation of any agreement in the guarantee
contract, or any fraud, mistake or omission in the representations or warranties thereof;

 

2. In the event of the following circumstances:
contract operation, custody (administration), lease, joint-stock reform, registered capital decrease, investment, joint operation,
consolidation, merger, acquisition and restructuring, division, equity joint venture, equity transfer, substantial increase of
debt financing, (being filed or) filing for winding-up, filing for dissolution, being revoked, (being filed or) filing for bankruptcy,
change of controlling shareholder/actual controller, or major asset transfer, production stoppage, operation suspension, huge penalty
imposed by the authorized authority, being cancelled from registration, revocation of business license, involvement in material
legal disputes, serious difficulty in production and operation or deterioration of financial position, inability of the legal representative
or the principal to normally perform its duties;

 

3. Other circumstances under which the guarantee
capacity will be or might be lost;

 

(6) Party B may deem it as damage to its creditor’s
rights if the mortgage or pledge is under any of following circumstances:

 

1. Damage, loss, reduction in the value of
mortgaged property or pledged property due to acts of a third party, collection by the state, confiscation, expropriation, unpaid
recovery, removal, changes in market or any other reasons;

 

2. Seizure, detainment, freezing and deduction,
auction, or supervision by administrative authorities, or ownership dispute of mortgaged property or pledged property;

 

3. Violation of the agreement set out in the
mortgage contract or pledge contract by the mortgagor or pledger, or any fraud, mistake or omission in the representations or warranties
thereof;

 

4. Other circumstances that may affect the
realization of the rights of mortgage or pledge;

 

(7) Under the circumstance that the security
is false, ineffective, invalid, revoked or repealed, or that the guarantor defaults or expressly indicates or indicates by act
that it will not perform its guarantee obligations, or that the guarantor has lost part or all of its guarantee capacity, or the
reduction in the value of collateral and other circumstances, which Party B deems may damage its creditor’s rights hereunder;
or

 

(8) Other circumstances that Party B deems
may damage its creditor’s rights hereunder.

 

IV. Remedies of Party B

 

Party B is entitled to excise any one or more
of the following right(s) in case of the circumstance set forth in the Clauses 2 or 3 of this Article:

 

(1) To stop the disbursement of the loan;

 

(2) To declare the loan immediately due, and
require Party A to promptly repay all due and undue principal, interest and fees hereunder;

 

    	-11-

    	 

    

 

(3) Party B is entitled to require Party A
to pay liquidated damages equal to 0.05% of the amount not drawn and used by Party A as agreed in this Contract, as well
as reject Party A’s drawing and use of the amount yet to be drawn under this Contract;

 

(4) If Party A does not use the loan as stipulated
hereunder, the misappropriated part shall be imposed with penalty interest rate and compound interest based on the penalty interest
rate and the agreed way of interest settlement hereunder for the period from the date of misappropriation to the date on which
the entire principal and interest is settled;

 

(5) In case of overdue repayment, the overdue
principal and interest (including the principal and interest of all or part of loan that Party B declares early due) shall be imposed
with the penalty interest and compound interest based on the penalty interest rate and the agreed way of interest settlement hereunder
for the period from the overdue date to the date on which the entire principal and interest is settled. Overdue repayment refers
to Party A’s failure to repay the loan on time or as scheduled by this Contract for repayment by installments.

 

Before the due date, the overdue interest of
Party A shall be imposed with compound interest based on the agreed loan rate and way of settlement hereunder.

 

(6) Other remedies shall include but not limit
to:

 

1. To transfer the related amount in RMB or
other currencies from Party A’s account in China Construction Bank without notifying Party A in advance;

 

2. To excise the security rights;

 

3. To require Party A to provide additional
guarantee that meets the requirements of Party A for all the debts under this Contract;

 

4. To terminate this Contract.

 

Article 11 Miscellaneous

 

I. Cost Assumption

 

1. Any fee as a result of breach on the part
of Party A of any provision hereof (including but not limited to litigation fees, arbitration fees, property preservation fees,
travel fees, enforcement fees, assessment fees, auction fees, notary fees, service fees, advertising fees, legal fees, etc.) shall
be borne by Party A.

 

2. Other fees: Any fee in connection with
this Contract and the security hereunder, including, but not limited to, attorney’s fee, insurance, evaluation, registration,
custody, appraisal, notary, tax, technology, environmental protection, supervision, etc., shall be borne by Party A. Registration
fee incurred for the security hereunder shall be borne by Party B.

 

II. Use of Party A’s Information

 

Party A agrees that Party B may make inquiries
on Party A’s status of credit to the credit database established under the approval of the People’s Bank of China and
the authorized credit reporting authority or the relevant unit or department, and agrees that Party B may provide Party A’s
information for the credit database established under the approval of the People’s Bank of China and the authorized credit
reporting authority. Party A also agrees that Party B may reasonably use and disclose Party A’s information to meet the needs
of business.

 

III. Announcement for Overdue Debts

 

In case of Party A’s overdue payment
of the loan principal or interest, or other breach of contract, Party B shall be entitled to report such breach of contract to
the relevant department or unit and make an announcement via press media to press for the overdue debts.

 

    	-12-

    	 

    

 

IV. Evidence Effectiveness of Party B’s
Records

 

Unless there is any reliable and definite evidence
to the contrary, Party B’s internal account records in relation to principal, interest, costs and debt repayment records,
the vouchers and proofs for Party A’s withdrawal of loans, repayment of loans and payment of interest which are prepared
and retained by Party B, and Party B’s records and proofs for the press for overdue debts shall all constitute the definite
evidence to effectively prove the relationship between Party A and Party B. Party A shall not raise any objections only because
such records, vouchers and proofs are unilaterally prepared or retained by Party B.

 

V. Retention of Rights

 

Party B’s rights under this Contract
shall not affect and eliminate any of its rights under the laws, regulations and other contracts. Any tolerance, grace period or
favorable treatment granted to the breach of contract or delay of performance, or any delay in performing any rights under this
Contract shall not be deemed as a waiver of the rights and interests under this Contract or consent or acceptance of any breaching
behaviors, nor shall it affect, prevent or impede the continuous exercise of such rights or the exercise of any other rights, or
incur any obligations and responsibilities of Party B to Party A.

 

VI. In case that Party A is liable for any
other due debts to Party B besides the debts hereunder, Party B is entitled to transfer the capital in RMB or other currencies
from Party A’s account opened in China Construction Bank to repay any of such debts with priority. Party A agrees that it
shall not raise any objection.

 

VII. Party A shall promptly deliver a written
notice to Party B in case of any changes to Party A’s mailing address or contact, and shall bear all the losses due to the
failure of prompt notice of such change.

 

VIII. Transfer of Amounts Payable

 

Party B is entitled to transfer the appropriate
amount in RMB or other currencies from Party A’s account opened in China Construction Bank for all the amounts payable by
Party A under this Contract without notifying Party A in advance. Party A shall be obligated to assist Party B in handling the
foreign exchange settlement and sale or purchase as necessary. The related exchange rate risks shall be born by Party A.

 

IX. Dispute Resolution

 

Any dispute arising out of the implementation
of this Contract may be resolved through consultation. If no resolution can be reached through consultation, the dispute shall
be resolved through the first way as follows:

 

1. To file a lawsuit with the people’s
court in the locality of Party B.

 

2. To refer the dispute to BLANK Arbitration
Commission (with the arbitration venue at BLANK) for arbitration in accordance with the arbitration rules of such Commission in
effect at the time of referral. The arbitration awards shall be final and binding upon both parties.

 

During the period of litigation or arbitration,
the terms of this Contract which are not involved in disputes shall still be implemented.

 

X. Effectiveness of this Contract

 

This Contract shall only take effect after
being signed or sealed with the company seals by Party A’s legal representative (principal) or authorized agent and Party
B’s principal or authorized agent.

 

XI. This Contract shall be made in five
copies.

 

    	-13-

    	 

    

 

XII. Miscellaneous

 

1. Any notice, request, litigation, arbitration
and other related legal documents to be sent by one party to the other under shall be sent by expressage or registered mail to
the address of the other specified herein and shall be deemed duly serviced if so sent. Change of the address of a party shall
be promptly notified to the relevant parties and departments. The address of a party specified herein shall be the effective mailing
address of that party before an effective notice on the change of the address is received.

 

BLANK

 

Article 12 Statements

 

I. Party A clearly understands the business
scope and limit of authorization of Party B.

 

II. Party A has read through all the terms
hereunder. Upon Party A’s request, Party B has explained the terms hereunder accordingly. Party A has full knowledge and
thorough understanding of the meaning of the terms hereunder and the legal consequences thereof.

 

III. Party A’s execution and performance
of obligations under this Contract is in compliance with the laws, administrative regulations, rules and the provisions of articles
of association or internal constitutional documents of Party A, and have been approved by the authority within the company and/or
the state authorized authorities.

 

IV. Party A meets the state requirements for
the operational qualifications as an investment subject.

 

V. The Project is in compliance with the relevant
state policies on industry, land, environmental protection, investment management, etc., and Party A has undertaken the legal management
procedures as required.

 

VI. The Project of Party A is in compliance
with the state regulations on capital system of investment projects.

 

VII. Party A and its controlling shareholders
are in good credit status and have no significant negative records.

 

VIII. Party A declares that at the time this
Contract is signed, Party A and its major related parties are not engaged in anything in violation of provisions of environmental
protection and social risk management laws, rules and regulations and agrees that after signature of this Contract, Party A will
strengthen environmental protection and social risk management of Party A and its major related parties, strictly abide by the
provisions of laws, rules and regulations concerning environmental protection and social risk management and avoid damages and
related risks (including, but not limited to, environmental and social problems concerning energy consumption, pollution, land,
health, safety, relocation of residents, ecology protection, energy saving and emission reduction and climate change) in the process
of construction, production and operations. Party A agrees that Party B has right to supervise the environmental and social risk
management on the part of Party A and may request Party A to submit environmental and social risk management report. If the foregoing
representations made by Party A is false or are not fully fulfilled by Party A, or Party A may commit any environmental and social
risk, Party B may cease the credit granting to Party A (including, but not limited to, refusing to disburse the loan, issuing performance
bond and bank acceptance, etc.) or declare early mature of creditor’s rights (including, but not limited to the loan, money
advanced already incurred or may incur, etc), or take other remedial measures under this Contract or permitted by law.

 

    	-14-

    	 

    

 

Party
A (Company Seal): Yida (Fujian) Tourism Group Co., Ltd.

 

Legal
Representative (Principal Officer) or Authorized Agent (Signature): /s/ Minhua Chen

 

Date:
August 1, 2014

 

Party
B (Company Seal): Fuzhou Chengdong Sub-Branch, China Construction Bank

 

Principal
Officer or Authorized Agent (Signature): /s/ Fangxing Chen

 

Date:August
1, 2014

 

 

 

 

-15-Exhibit 10.1

 

SECURITIES
PURCHASE AGREEMENT

 

This
Securities Purchase Agreement (this “Agreement”) is dated as of November 7, 2014, between Amarantus Bioscience
Holdings, Inc., a Nevada corporation (the “Company”), and each purchaser identified on the signature pages
hereto (each, including its successors and assigns, a “Purchaser” and collectively, the “Purchasers”).

 

WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(a)(2) of the Securities Act of 1933,
as amended (the “Securities Act”), and Rule 506 promulgated thereunder, the Company desires to issue and sell
to each Purchaser, and each Purchaser, severally and not jointly, desires to purchase from the Company in consideration for the
assumption of certain account payables, in one or more closings, securities of the Company as more fully described in this Agreement.

 

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

 

ARTICLE
I. 

DEFINITIONS

 

1.1           Definitions.
In addition to the terms defined elsewhere in this Agreement: (a) capitalized terms that are not otherwise defined herein have
the meanings given to such terms in the Certificate of Designation (as defined herein), and (b) the following terms have the meanings
set forth in this Section 1.1:

 

“Acquiring
Person” shall have the meaning ascribed to such term in Section 4.7.

 

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

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.

 

“Board
of Directors”means the board of directors of the Company.

 

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or
any day on which banking institutions in the State of New York are authorized or required by law or other governmental action
to close.

 

“Certificate
of Designation” means the Certificate of Designation to be filed prior to the first Closing by the Company with the
Secretary of State of Nevada, in the form of Exhibit A attached hereto.

 

    	 

    	 

    

 

“Closing
Dates” means the Trading Days on which all of the Transaction Documents have been executed and delivered by the applicable
parties thereto in connection with a Closing, and all conditions precedent to (i) the Purchasers’ obligations to pay the
Subscription Amount as to such Closing and (ii) the Company’s obligations to deliver the Securities as to such Closing,
in each case, have been satisfied or waived.

 

“Closing(s)”
means the one or more closings of the purchase and sale of the Securities pursuant to Section 2.1.

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Common
Stock” means the common stock of the Company, par value $0.001 per share, and any other class of securities into which
such securities may hereafter be reclassified or changed.

 

“Common
Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to
acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument
that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive,
Common Stock.

 

“Company
Counsel” means Sichenzia Ross Friedman Ference LLP, with offices located at 61 Broadway, 32nd Floor, New
York NY 10006.

 

“Conversion
Price” shall have the meaning ascribed to such term in the Certificate of Designation.

 

“Conversion
Shares” means, collectively, the shares of Common Stock issuable upon conversion of the shares of Preferred Stock.

 

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

 

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

 

“Evaluation
Date” shall have the meaning ascribed to such term in Section 3.1(r).

 

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

 

    	2

    	 

    

 

“Exempt
Issuance” means the issuance of (a) shares of Common Stock or options to employees, officers, directors or consultants
of the Company pursuant to the Company’s existing stock option plans and any stock or option plan duly adopted for such
purpose, by a majority of the non-employee members of the Board of Directors or a majority of the members of a committee of non-employee
directors established for such purpose; provided, however, such issuances to consultants under this clause (a) shall
not exceed five (5%) percent of the issued and outstanding shares of the Company in any 30 day period, (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 shares of Common Stock, issued and outstanding on the date of this Agreement, or pursuant to other agreements
of the Company existing prior to the date hereof and listed on Schedule 3.1(g), provided that such securities and/or agreements
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, and (c) securities issued pursuant to acquisitions or strategic transactions
approved by a majority of the disinterested directors of the Company, provided that any such issuance shall only be to a Person
(or to the equityholders of a Person) which is, itself or through its subsidiaries, an operating company or an owner of an asset
in a business synergistic with the business of the Company and shall provide to the Company additional benefits in addition to
the investment of funds, but shall not include a transaction in which the Company is issuing securities primarily for the purpose
of raising capital or to an entity whose primary business is investing in securities.

 

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

 

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

 

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

 

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

 

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

 

“Intellectual
Property Rights” shall have the meaning ascribed to such term in Section 3.1(o).

 

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

 

“Liens”
means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

“Material
Adverse Effect” shall have the meaning assigned to such term in Section 3.1(b).

 

“Material
Permits” shall have the meaning ascribed to such term in Section 3.1(m).

 

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

 

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

 

    	3

    	 

    

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Pharmaceutical
Product” shall have the meaning ascribed to such term in Section 3.1(kk).

 

“Preferred
Stock” means up to 3,300 shares of the Company’s Series E 12% Convertible Preferred Stock issued hereunder having
the rights, preferences and privileges set forth in the Certificate of Designation, in the form of Exhibit A hereto.

 

“Pre-Notice”
shall have the meaning ascribed to such term in Section 4.12(b).

 

“Pro
Rata Portion” shall have the meaning ascribed to such term in Section 4.12(e).

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial
proceeding, such as a deposition), whether commenced or threatened.

 

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

 

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

 

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

 

“Required
Approvals” shall have the meaning ascribed to such term in Section 3.1(e).

 

“Required
Minimum” means, as of any date, the maximum aggregate number of shares of Common Stock then issued or potentially issuable
in the future pursuant to the Transaction Documents, including any Conversion Shares issuable upon conversion in full of all shares
of Preferred Stock, ignoring any conversion limits set forth therein.

 

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

 

“Rule
424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

    	4

    	 

    

 

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

 

“Securities”
means the Preferred Stock and the Conversion Shares.

 

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

 

“Short
Sales” means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall
not be deemed to include the location and/or reservation of borrowable shares of Common Stock).

 

“Stated
Value” means $1,000 per share of Preferred Stock.

 

“Subscription
Amount” shall mean, as to each Purchaser, the aggregate amount to be paid for the Preferred Stock purchased hereunder
as specified below such Purchaser’s name on Annex A under the heading “Subscription Amount,” in United
States dollars and in immediately available funds.

 

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

 

“Subsequent
Financing Notice” shall have the meaning ascribed to such term in Section 4.12(b).

 

“Subsidiary”
means any subsidiary of the Company as set forth on Schedule 3.1(a) and shall, where applicable, also include any direct
or indirect subsidiary of the Company formed or acquired after the date hereof.

 

“Trading
Day” means a day on which the principal Trading Market is open for trading.

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the
New York Stock Exchange, the OTC Bulletin Board or the OTC Markets (or any successors to any of the foregoing).

 

“Transaction
Documents” means this Agreement, the Certificate of Designation, the Transfer Agent Instruction Letter, all exhibits
and schedules thereto and hereto and any other documents or agreements executed in connection with the transactions contemplated
hereunder.

 

    	5

    	 

    

 

“Transfer
Agent” means VStock Transfer, LLC, the current transfer agent of the Company, with a mailing address of 18 Lafayette
Place, Woodmere, New York 11598 and a facsimile number of (646) 536-3179, and any successor transfer agent of the Company.

 

“Transfer
Agent Instruction Letter” means the letter from the Company to the Transfer Agent which instructs the Transfer Agent
to issue shares of Common Stock upon conversion of the Preferred Stock or upon the payment of dividends in shares of Common Stock,
in the form of Exhibit B attached hereto.

 

“Variable
Rate Transaction” shall have the meaning ascribed to such term in Section 4.13(b).

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then
listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest
preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based
on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b)  if the OTC Bulletin Board is
not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the
OTC Bulletin Board, (c) if the Common Stock is not then listed or quoted for trading on the OTC Bulletin Board and if prices for
the Common Stock are then reported in the “Pink Sheets” published by Pink OTC Markets, Inc. (or a similar organization
or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported,
or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected
in good faith by the Purchasers of a majority in interest of the Securities then outstanding and reasonably acceptable to the
Company, the fees and expenses of which shall be paid by the Company.

 

ARTICLE
II. 

PURCHASE
AND SALE

 

2.1           Closings.
From time to time after the date hereof, upon the terms and subject to the conditions set forth herein, substantially concurrent
with the execution and delivery of this Agreement by the parties hereto, the Company agrees to sell, and the Purchasers, severally
and not jointly, agree to purchase, up to an aggregate of $3,300,000 of the Preferred Stock, which includes an original issue
discount of 10%. Each Purchaser shall deliver to the Company, via wire transfer or a certified check, immediately available funds
equal to such Purchaser’s Subscription Amount as set forth on the signature page hereto executed by such Purchaser, and
the Company shall deliver to each Purchaser such number of shares of the Preferred Stock purchased and each Purchaser shall deliver
the other items set forth in Section 2.2 deliverable at the Closing. Upon satisfaction of the covenants and conditions set forth
in Sections 2.2 and 2.3, the Closing shall occur at the offices of RBLGGG or such other location as the parties shall mutually
agree.

 

    	6

    	 

    

 

2.2         Deliveries.

 

(a)          On
or prior to each Closing Date (or as otherwise indicated below), the Company shall deliver or cause to be delivered to each Purchaser
the following:

 

(i)          At
the first Closing, this Agreement duly executed by the Company;

 

(ii)         the
Transfer Agent Instruction Letter, duly executed by the Company and the Transfer Agent; and

 

(iii)        a
certificate evidencing a number of shares of Preferred Stock equal to such Purchaser’s Subscription Amount divided by $1,000,
registered in the name of such Purchaser and evidence of the filing and acceptance of the Certificate of Designation from the
Secretary of State of Nevada.

 

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

 

(i)          At
the first Closing, this Agreement duly executed by such Purchaser; and

 

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

 

2.3         Closing
Conditions.

 

(a)          The
obligations of the Company hereunder in connection with each Closing are subject to the following conditions being met:

 

(i)          the
accuracy in all material respects on the applicable Closing Date of the representations and warranties of the Purchasers contained
herein (unless as of a specific date therein in which case they shall be accurate as of such date);

 

(ii)         all
obligations, covenants and agreements of each Purchaser required to be performed at or prior to the applicable Closing Date shall
have been performed; and

 

(iii)        the
delivery by each Purchaser of the items set forth in Section 2.2(b) of this Agreement.

 

(b)          The
respective obligations of the Purchasers hereunder in connection with each Closing are subject to the following conditions being
met:

 

(i)          the
accuracy in all material respects when made and on the applicable Closing Date of the representations and warranties of the Company
contained herein (unless as of a specific date therein);

 

    	7

    	 

    

 

(ii)         all
obligations, covenants and agreements of the Company required to be performed at or prior to the applicable Closing Date shall
have been performed;

 

(iii)        the
delivery by the Company of the items set forth in Section 2.2(a) of this Agreement;

 

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

 

(v)         from
the date hereof to the applicable Closing Date, trading in the Common Stock shall not have been suspended by the Commission or
the Company’s principal Trading Market and, at any time prior to the applicable Closing Date, trading in securities generally
as reported by Bloomberg L.P. shall not have been suspended or limited, or minimum prices shall not have been established on securities
whose trades are reported by such service, or on any Trading Market, nor shall a banking moratorium have been declared either
by the United States or New York State authorities nor shall there have occurred any material outbreak or escalation of hostilities
or other national or international calamity of such magnitude in its effect on, or any material adverse change in, any financial
market which, in each case, in the reasonable judgment of such Purchaser, makes it impracticable or inadvisable to purchase the
Securities at the applicable Closing.

 

ARTICLE
III. 

REPRESENTATIONS
AND WARRANTIES

 

3.1         Representations
and Warranties of the Company. Except as set forth in the Disclosure Schedules, which Disclosure Schedules shall be deemed
a part hereof and shall qualify any representation or otherwise made herein to the extent of the disclosure contained in the corresponding
section of the Disclosure Schedules, the Company hereby makes the following representations and warranties to each Purchaser:

 

(a)          Subsidiaries.
All of the direct and indirect subsidiaries of the Company are set forth on Schedule 3.1(a). The Company owns, directly
or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any Liens, and all of the
issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free
of preemptive and similar rights to subscribe for or purchase securities. If the Company has no subsidiaries, all other references
to the Subsidiaries or any of them in the Transaction Documents shall be disregarded.

 

    	8

    	 

    

(b)          Organization
and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly
existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power
and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company
nor any Subsidiary is in violation nor default of any of the provisions of its respective certificate or articles of incorporation,
bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business
and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted
or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as
the case may be, could not have or reasonably be expected to result in: (i) a material adverse effect on the legality, validity
or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business,
prospects or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse
effect on the Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction
Document (any of (i), (ii) or (iii), a “Material Adverse Effect”) and no Proceeding has been instituted in
any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

 

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

 

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

    	9

    	 

    

 

(e)          Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other
Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than: (i)
the filings required pursuant to Section 4.6 of this Agreement, (ii) the notice and/or application(s) to each applicable Trading
Market for the issuance and sale of the Securities and the listing of the Conversion Shares for trading thereon in the time and
manner required thereby, and (iii) the filing of Form D with the Commission and such filings as are required to be made under
applicable state securities laws (collectively, the “Required Approvals”).

 

(f)          Issuance
of the Securities. The Securities are duly authorized and, when issued and paid for in accordance with the applicable Transaction
Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company other
than restrictions on transfer provided for in the Transaction Documents. The Conversion Shares, when issued in accordance with
the terms of the Transaction Documents, will be validly issued, fully paid and nonassessable, free and clear of all Liens imposed
by the Company other than restrictions on transfer provided for in the Transaction Documents. The Company has reserved from its
duly authorized capital stock a number of shares of Common Stock for issuance of the Conversion Shares at least equal to 150%
of the Required Minimum on the date hereof.

 

(g)          Capitalization.
The capitalization of the Company is as set forth on Schedule 3.1(g), which Schedule 3.1(g) shall also include the
number of shares of Common Stock owned beneficially, and of record, by Affiliates of the Company as of the date hereof. Except
as set forth on Schedule 3.1(g), the Company has not issued any capital stock since its most recently filed periodic report under
the Exchange Act, other than pursuant to the exercise of employee stock options under the Company’s stock option plans,
the issuance of shares of Common Stock to employees pursuant to the Company’s employee stock purchase plans and pursuant
to the conversion and/or exercise of Common Stock Equivalents outstanding as of the date of the most recently filed periodic report
under the Exchange Act. No Person has any right of first refusal, preemptive right, right of participation, or any similar right
to participate in the transactions contemplated by the Transaction Documents. Except as set forth on Schedule 3.1(g) and except
as a result of the purchase and sale of the Securities, there are no outstanding options, warrants, scrip rights to subscribe
to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable
or exchangeable for, or giving any Person any right to subscribe for or acquire any shares of Common Stock, or contracts, commitments,
understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of Common
Stock or Common Stock Equivalents. The issuance and sale of the Securities will not obligate the Company to issue shares of Common
Stock or other securities to any Person (other than the Purchasers) and will not result in a right of any holder of Company securities
to adjust the exercise, conversion, exchange or reset price under any of such securities. All of the outstanding shares of capital
stock of the Company are duly authorized, validly issued, fully paid and nonassessable, have been issued in compliance with all
federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar
rights to subscribe for or purchase securities. No further approval or authorization of any stockholder, the Board of Directors
or others is required for the issuance and sale of the Securities. There are no stockholders agreements, voting agreements or
other similar agreements with respect to the Company’s capital stock to which the Company is a party or, to the knowledge
of the Company, between or among any of the Company’s stockholders.

    	10

    	 

    

  

(h)          SEC
Reports; Financial Statements. Except as set forth on Schedule 3.1(h), the Company has filed all reports, schedules, forms,
statements and other documents required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant
to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (or such shorter period as the Company was required
by law or regulation to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated
by reference therein, being collectively referred to herein as the “SEC Reports”) on a timely basis or has
received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension.
As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and
the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading. The Company has ceased to be an issuer subject to Rule 144(i)
under the Securities Act, one year has elapsed from the time the Company has filed current Form 10 information with the SEC and
has filed all required annual and quarterly reports in the preceding 12 months period. The financial statements of the Company
included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations
of the Commission with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance
with United States generally accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”),
except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements
may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company
and its consolidated Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods
then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.

 

    	11

    	 

    

 

(i)          Material
Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial statements included
within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the date hereof: (i) there
has been no event, occurrence or development that has had or that could reasonably be expected to result in a Material Adverse
Effect, (ii) the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued
expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected
in the Company’s financial statements pursuant to GAAP or disclosed in filings made with the Commission, (iii) the Company
has not altered its method of accounting, (iv) the Company has not declared or made any dividend or distribution of cash or other
property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock
and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except pursuant to existing Company
stock option plans. The Company does not have pending before the Commission any request for confidential treatment of information.
Except for the issuance of the Securities contemplated by this Agreement or as set forth on Schedule 3.1(i), no event,
liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with
respect to the Company or its Subsidiaries or their respective businesses, properties, operations, assets or financial condition,
that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made
or deemed made that has not been publicly disclosed at least 1 Trading Day prior to the date that this representation is made.

 

(j)          Litigation.
Except as may be disclosed in the SEC Reports, there is no action, suit, inquiry, notice of violation, proceeding or investigation
pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective
properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state,
county, local or foreign) (collectively, an “Action”) which (i) adversely affects or challenges the legality,
validity or enforceability of any of the Transaction Documents or the Securities or (ii) could, if there were an unfavorable decision,
have or reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any Subsidiary, nor any director
or officer thereof, is or has been the subject of any Action involving a claim of violation of or liability under federal or state
securities laws or a claim of breach of fiduciary duty. There has not been, and to the knowledge of the Company, there is not
pending or contemplated, any investigation by the Commission involving the Company or any current or former director or officer
of the Company. The Commission has not issued any stop order or other order suspending the effectiveness of any registration statement
filed by the Company or any Subsidiary under the Exchange Act or the Securities Act.

 

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(k)          Labor
Relations. No labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of
the Company, which could reasonably be expected to result in a Material Adverse Effect. None of the Company’s or its Subsidiaries’
employees is a member of a union that relates to such employee’s relationship with the Company or such Subsidiary, and neither
the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the Company and its Subsidiaries
believe that their relationships with their employees are good. To the knowledge of the Company, no executive officer of the Company
or any Subsidiary, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality,
disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive
covenant in favor of any third party, and the continued employment of each such executive officer does not subject the Company
or any of its Subsidiaries to any liability with respect to any of the foregoing matters. The Company and its Subsidiaries are
in compliance with all U.S. federal, state, local and foreign laws and regulations relating to employment and employment practices,
terms and conditions of employment and wages and hours, except where the failure to be in compliance could not, individually or
in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

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

 

(m)          Regulatory
Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Reports,
except where the failure to possess such permits could not reasonably be expected to result in a Material Adverse Effect (“Material
Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation
or modification of any Material Permit.

 

(n)          Title
to Assets. The Company and the Subsidiaries have good and marketable title in fee simple to all real property owned by them
and good and marketable title in all personal property owned by them that is material to the business of the Company and the Subsidiaries,
in each case free and clear of all Liens, except for (i) Liens as do not materially affect the value of such property and do not
materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries and (ii) Liens
for the payment of federal, state or other taxes, for which appropriate reserves have been made therefor in accordance with GAAP
and, the payment of which is neither delinquent nor subject to penalties. Any real property and facilities held under lease by
the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases with which the Company and the
Subsidiaries are in compliance.

 

    	13

    	 

    

 

(o)          Intellectual
Property. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark
applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights
and similar rights as described in the SEC Reports as necessary or required for use in connection with their respective businesses
and which the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual Property Rights”).
None of, and neither the Company nor any Subsidiary has received a notice (written or otherwise) that any of, the Intellectual
Property Rights has expired, terminated or been abandoned, or is expected to expire or terminate or be abandoned, within two (2)
years from the date of this Agreement. Neither the Company nor any Subsidiary has received, since the date of the latest audited
financial statements included within the SEC Reports, a written notice of a claim or otherwise has any knowledge that the Intellectual
Property Rights violate or infringe upon the rights of any Person, except as could not have or reasonably be expected to not have
a Material Adverse Effect. To the knowledge of the Company, all such Intellectual Property Rights are enforceable and there is
no existing infringement by another Person of any of the Intellectual Property Rights. The Company and its Subsidiaries have taken
reasonable security measures to protect the secrecy, confidentiality and value of all of their intellectual properties, except
where failure to do so could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(p)          Insurance.
Except as set forth on Schedule 3.1(p), the Company and the Subsidiaries are insured by insurers of recognized financial responsibility
against such losses and risks and in such amounts as are prudent and customary in the businesses in which the Company and the
Subsidiaries are engaged, including, but not limited to, directors and officers insurance coverage at least equal to the aggregate
Subscription Amount. Neither the Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing
insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to
continue its business without a significant increase in cost.

 

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

 

    	14

    	 

    

  

(r)          Sarbanes-Oxley;
Internal Accounting Controls. Except as may be disclosed in the SEC Reports, the Company and the Subsidiaries are in compliance
with any and all applicable requirements of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and
all applicable rules and regulations promulgated by the Commission thereunder that are effective as of the date hereof and as
of each Closing Date. Except as disclosed in the SEC Reports, the Company and the Subsidiaries maintain a system of internal accounting
controls sufficient to provide reasonable assurance that: (i) transactions are executed in accordance with management’s
general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements
in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s
general or specific authorization, and (iv) the recorded accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences. The Company and the Subsidiaries have established disclosure
controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and the Subsidiaries and designed
such disclosure controls and procedures to ensure that information required to be disclosed by the Company in the reports it files
or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s
rules and forms. The Company’s certifying officers have evaluated the effectiveness of the disclosure controls and procedures
of the Company and the Subsidiaries as of the end of the period covered by the most recently filed periodic report under the Exchange
Act (such date, the “Evaluation Date”). The Company presented in its most recently filed periodic report under
the Exchange Act the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures
based on their evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no changes in the internal control
over financial reporting (as such term is defined in the Exchange Act) of the Company and its Subsidiaries that have materially
affected, or is reasonably likely to materially affect, the internal control over financial reporting of the Company and its Subsidiaries.

 

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

 

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

 

    	15

    	 

    

 

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

 

(v)         Registration
Rights. No Person has any right to cause the Company to effect the registration under the Securities Act of any securities
of the Company or any Subsidiary.

 

(w)          Listing
and Maintenance Requirements. The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the
Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration
of the Common Stock under the Exchange Act nor has the Company received any notification that the Commission is contemplating
terminating such registration. The Company has not, in the 12 months preceding the date hereof, received notice from any Trading
Market on which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance with the
listing or maintenance requirements of such Trading Market. The Company is, and has no reason to believe that it will not in the
foreseeable future continue to be, in compliance with all such listing and maintenance requirements.

 

(x)          [RESERVED]

 

(y)          Disclosure.
Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company
confirms that neither it nor any other Person acting on its behalf has provided any of the Purchasers or their agents or counsel
with any information that it believes constitutes or might constitute material, non-public information. The Company understands
and confirms that the Purchasers will rely on the foregoing representation in effecting transactions in securities of the Company.
All of the disclosure furnished by or on behalf of the Company to the Purchasers regarding the Company and its Subsidiaries, their
respective businesses and the transactions contemplated hereby, including the Disclosure Schedules to this Agreement, is true
and correct and does not contain any untrue statement of a material fact or omit to state any material fact necessary in order
to make the statements made therein, in light of the circumstances under which they were made, not misleading. The press releases
disseminated by the Company during the twelve months preceding the date of this Agreement taken as a whole do not contain any
untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make
the statements therein, in light of the circumstances under which they were made and when made, not misleading. The Company acknowledges
and agrees that no Purchaser makes or has made any representations or warranties with respect to the transactions contemplated
hereby other than those specifically set forth in Section 3.2 hereof.

    	16

    	 

    

 

(z)          No
Integrated Offering. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 3.2,
neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made
any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering
of the Securities to be integrated with prior offerings by the Company for purposes of (i) the Securities Act which would require
the registration of any such securities under the Securities Act, or (ii) any applicable shareholder approval provisions of any
Trading Market on which any of the securities of the Company are listed or designated. 

 

(aa)         Tax
Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a
Material Adverse Effect, the Company and its Subsidiaries each (i) has made or filed all United States federal, state and local
income and all foreign income and franchise tax returns, reports and declarations required by any jurisdiction to which it is
subject, (ii) has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined
to be due on such returns, reports and declarations and (iii) has set aside on its books provision reasonably adequate for the
payment of all material taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There
are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of
the Company or of any Subsidiary know of no basis for any such claim.

 

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

 

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

 

(dd)         Accountants.
The Company’s accounting firm is set forth on Schedule 3.1(ee) of the Disclosure Schedules. To the knowledge and
belief of the Company, such accounting firm: (i) is a registered public accounting firm as required by the Exchange Act and (ii)
shall express its opinion with respect to the financial statements to be included in the Company’s Annual Report for the
fiscal year ending December 31, 2013.

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

 

(ff)         No
Disagreements with Accountants and Lawyers. There are no disagreements of any kind presently existing, or reasonably anticipated
by the Company to arise, between the Company and the accountants and lawyers formerly or presently employed by the Company and
the Company is current with respect to any fees owed to its accountants and lawyers which could affect the Company’s ability
to perform any of its obligations under any of the Transaction Documents.

 

(gg)         Acknowledgment
Regarding Purchasers’ Purchase of Securities. The Company acknowledges and agrees that each of the Purchasers is acting
solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated
thereby. The Company further acknowledges that no Purchaser is acting as a financial advisor or fiduciary of the Company (or in
any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby and any advice given
by any Purchaser or any of their respective representatives or agents in connection with the Transaction Documents and the transactions
contemplated thereby is merely incidental to the Purchasers’ purchase of the Securities. The Company further represents
to each Purchaser that the Company’s decision to enter into this Agreement and the other Transaction Documents has been
based solely on the independent evaluation of the transactions contemplated hereby by the Company and its representatives.

 

(hh)         Acknowledgment
Regarding Purchaser’s Trading Activity. Anything in this Agreement or elsewhere herein to the contrary notwithstanding
(except for Sections 3.2(f) and 4.15 hereof), it is understood and acknowledged by the Company that: (i) none of the Purchasers
has been asked by the Company to agree, nor has any Purchaser agreed, to desist from purchasing or selling, long and/or short,
securities of the Company, or “derivative” securities based on securities issued by the Company or to hold the Securities
for any specified term, (ii) past or future open market or other transactions by any Purchaser, specifically including, without
limitation, Short Sales or “derivative” transactions, before or after a closing of this or future private placement
transactions, may negatively impact the market price of the Company’s publicly-traded securities, (iii) any Purchaser, and
counter-parties in “derivative” transactions to which any such Purchaser is a party, directly or indirectly, may presently
have a “short” position in the Common Stock and (iv) each Purchaser shall not be deemed to have any affiliation with
or control over any arm’s length counter-party in any “derivative” transaction. The Company further understands
and acknowledges that (y) one or more Purchasers may engage in hedging activities at various times during the period that the
Securities are outstanding, including, without limitation, during the periods that the value of the Conversion Shares deliverable
with respect to Securities are being determined, and (z) such hedging activities (if any) could reduce the value of the existing
stockholders’ equity interests in the Company at and after the time that the hedging activities are being conducted. 
The Company acknowledges that such aforementioned hedging activities do not constitute a breach of any of the Transaction Documents.

    	18

    	 

    

  

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

 

(jj)         FDA.
As to each product subject to the jurisdiction of the U.S. Food and Drug Administration (“FDA”) under the Federal
Food, Drug and Cosmetic Act, as amended, and the regulations thereunder (“FDCA”) that is manufactured, packaged,
labeled, tested, distributed, sold, and/or marketed by the Company or any of its Subsidiaries (each such product, a “Pharmaceutical
Product”), such Pharmaceutical Product is being manufactured, packaged, labeled, tested, distributed, sold and/or marketed
by the Company in compliance with all applicable requirements under FDCA and similar laws, rules and regulations relating to registration,
investigational use, premarket clearance, licensure, or application approval, good manufacturing practices, good laboratory practices,
good clinical practices, product listing, quotas, labeling, advertising, record keeping and filing of reports, except where the
failure to be in compliance would not have a Material Adverse Effect. There is no pending, completed or, to the Company's knowledge,
threatened, action (including any lawsuit, arbitration, or legal or administrative or regulatory proceeding, charge, complaint,
or investigation) against the Company or any of its Subsidiaries, and none of the Company or any of its Subsidiaries has received
any notice, warning letter or other communication from the FDA or any other governmental entity, which (i) contests the premarket
clearance, licensure, registration, or approval of, the uses of, the distribution of, the manufacturing or packaging of, the testing
of, the sale of, or the labeling and promotion of any Pharmaceutical Product, (ii) withdraws its approval of, requests the recall,
suspension, or seizure of, or withdraws or orders the withdrawal of advertising or sales promotional materials relating to, any
Pharmaceutical Product, (iii) imposes a clinical hold on any clinical investigation by the Company or any of its Subsidiaries,
(iv) enjoins production at any facility of the Company or any of its Subsidiaries, (v) enters or proposes to enter into a consent
decree of permanent injunction with the Company or any of its Subsidiaries, or (vi) otherwise alleges any violation of any laws,
rules or regulations by the Company or any of its Subsidiaries, and which, either individually or in the aggregate, would have
a Material Adverse Effect. The properties, business and operations of the Company have been and are being conducted in all material
respects in accordance with all applicable laws, rules and regulations of the FDA.  The Company has not been informed by
the FDA that the FDA will prohibit the marketing, sale, license or use in the United States of any product proposed to be developed,
produced or marketed by the Company nor has the FDA expressed any concern as to approving or clearing for marketing any product
being developed or proposed to be developed by the Company.

    	19

    	 

    

  

(kk)         Stock
Option Plans. Each stock option granted by the Company under the Company’s stock option plan was granted (i) in accordance
with the terms of the Company’s stock option plan and (ii) with an exercise price at least equal to the fair market value
of the Common Stock on the date such stock option would be considered granted under GAAP and applicable law. No stock option granted
under the Company’s stock option plan has been backdated. The Company has not knowingly granted, and there is no and has
been no Company policy or practice to knowingly grant, stock options prior to, or otherwise knowingly coordinate the grant of
stock options with, the release or other public announcement of material information regarding the Company or its Subsidiaries
or their financial results or prospects. 

 

(ll)         Office
of Foreign Assets Control. Neither the Company nor any Subsidiary nor, to the Company's knowledge, any director, officer,
agent, employee or affiliate of the Company or any Subsidiary is currently subject to any U.S. sanctions administered by the Office
of Foreign Assets Control of the U.S. Treasury Department (“OFAC”).

 

(mm)         U.S.
Real Property Holding Corporation. The Company is not and has never been a U.S. real property holding corporation within the
meaning of Section 897 of the Internal Revenue Code of 1986, as amended, and the Company shall so certify upon Purchaser’s
request.

 

(nn)         Bank
Holding Company Act. Neither the Company nor any of its Subsidiaries or Affiliates is subject to the Bank Holding Company
Act of 1956, as amended (the “BHCA”) and to regulation by the Board of Governors of the Federal Reserve System
(the “Federal Reserve”). Neither the Company nor any of its Subsidiaries or Affiliates owns or controls, directly
or indirectly, five percent (5%) or more of the outstanding shares of any class of voting securities or twenty-five percent or
more of the total equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve. Neither
the Company nor any of its Subsidiaries or Affiliates exercises a controlling influence over the management or policies of a bank
or any entity that is subject to the BHCA and to regulation by the Federal Reserve.

 

(oo)         Money
Laundering. The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance with
applicable financial record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970,
as amended, applicable money laundering statutes and applicable rules and regulations thereunder (collectively, the “Money
Laundering Laws”), and no action, suit or proceeding by or before any court or governmental agency, authority or body
or any arbitrator involving the Company or any Subsidiary with respect to the Money Laundering Laws is pending or, to the knowledge
of the Company or any Subsidiary, threatened.

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(pp)         “Value
of Account Payables” The Company acknowledges and agrees that the Purchasers will be engaging in direct negotiations
with the A/P Holders for a settlement of payables and claims absent any participation of the Company and such negotiations and
final terms of agreement will be at the sole discretion of the applicable Purchaser and A/P Holder, subject to the Company’s
acceptance of the definitive Assumption and Release Agreement delivered at a closing. The amount a Purchaser may be required to
pay in the final agreement could be materially less than the face amount of the applicable Account Payable. Such final agreement
on terms of payment by a Purchaser to an A/P Holder shall have no bearing on the terms of the purchase of Preferred Stock, which
shall be according to the face amount of the applicable account payable otherwise pursuant to the terms of this Agreement.

 

3.2           Representations
and Warranties of the Purchasers. Each Purchaser, for itself and for no other Purchaser, hereby represents and warrants as
of the date hereof and as of each Closing Date to the Company as follows (unless as of a specific date therein):

 

(a)          Organization;
Authority. Such Purchaser is either an individual or an entity duly incorporated or formed, validly existing and in good standing
under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership, limited liability
company or similar power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents
and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of the Transaction Documents and
performance by such Purchaser of the transactions contemplated by the Transaction Documents have been duly authorized by all necessary
corporate, partnership, limited liability company or similar action, as applicable, on the part of such Purchaser. Each Transaction
Document to which it is a party has been duly executed by such Purchaser, and when delivered by such Purchaser in accordance with
the terms hereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against it in accordance
with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization,
moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by
laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as
indemnification and contribution provisions may be limited by applicable law.

 

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

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(c)          Purchaser
Status. At the time such Purchaser was offered the Securities, it was, and as of the date hereof it is, and on each date on
which it converts any shares of Preferred Stock, it will be either: (i) an “accredited investor” as defined in Rule
501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii) a “qualified institutional buyer” as
defined in Rule 144A(a) under the Securities Act.

 

(d)          Experience
of Such Purchaser. Such Purchaser, either alone or together with its representatives, has such knowledge, sophistication and
experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment
in the Securities, and has so evaluated the merits and risks of such investment. Such Purchaser is able to bear the economic risk
of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.

 

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

 

The
Company acknowledges and agrees that the representations contained in Section 3.2 shall not modify, amend or affect such Purchaser’s
right to rely on the Company’s representations and warranties contained in this Agreement or any representations and warranties
contained in any other Transaction Document or any other document or instrument executed and/or delivered in connection with this
Agreement or the consummation of the transaction contemplated hereby.

 

ARTICLE
IV. 

OTHER AGREEMENTS
OF THE PARTIES

 

4.1           Transfer
Restrictions.

 

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

 

    	22

    	 

    

 

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

 

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

 

The
Company acknowledges and agrees that a Purchaser may from time to time pledge pursuant to a bona fide margin agreement with a
registered broker-dealer or grant a security interest in some or all of the Securities to a financial institution that is an “accredited
investor” as defined in Rule 501(a) under the Securities Act and who agrees to be bound by the provisions of this Agreement
and, if required under the terms of such arrangement, such Purchaser may transfer pledged or secured Securities to the pledgees
or secured parties. Such a pledge or transfer would not be subject to approval of the Company and no legal opinion of legal counsel
of the pledgee, secured party or pledgor shall be required in connection therewith. Further, no notice shall be required of such
pledge. At the appropriate Purchaser’s expense, the Company will execute and deliver such reasonable documentation as a
pledgee or secured party of Securities may reasonably request in connection with a pledge or transfer of the Securities, including,
if the Securities are registered under a registration statement, the preparation and filing of any required prospectus supplement
under Rule 424(b)(3) under the Securities Act or other applicable provision of the Securities Act to appropriately amend the list
of selling stockholders thereunder.

 

    	23

    	 

    

 

(c)          Certificates
evidencing the Conversion Shares shall not contain any legend (including the legend set forth in Section 4.1(b) hereof): (i) while
a registration statement covering the resale of such security is effective under the Securities Act, (ii) following any sale of
such Conversion Shares pursuant to Rule 144, (iii) if such Conversion Shares are eligible for sale under Rule 144, without the
requirement for the Company to be in compliance with the current public information required under Rule 144 as to such Conversion
Shares and without volume or manner-of-sale restrictions or (iv) if such legend is not required under applicable requirements
of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the Commission). The Company
shall cause its counsel to issue a legal opinion to the Transfer Agent promptly after the events described in clauses (i)-(iv)
in the immediately preceding sentence if required by the Transfer Agent to effect the removal of the legend hereunder. If all
or any shares of Preferred Stock are converted at a time when there is an effective registration statement to cover the resale
of the Conversion Shares, or if such Conversion Shares may be sold under Rule 144 and the Company is then in compliance with the
current public information required under Rule 144, or if the Conversion Shares may be sold under Rule 144 without the requirement
for the Company to be in compliance with the current public information required under Rule 144 as to such Conversion Shares and
without volume or manner-of-sale restrictions or if such legend is not otherwise required under applicable requirements of the
Securities Act (including judicial interpretations and pronouncements issued by the staff of the Commission) then such Conversion
Shares shall be issued free of all legends. The Company agrees that following such time as such legend is no longer required under
this Section 4.1(c), it will, no later than three Trading Days following the delivery by a Purchaser to the Company or the Transfer
Agent of a certificate representing Conversion Shares, as applicable, issued with a restrictive legend (such third Trading Day,
the “Legend Removal Date”), deliver or cause to be delivered to such Purchaser a certificate representing such
shares that is free from all restrictive and other legends. The Company may not make any notation on its records or give instructions
to the Transfer Agent that enlarge the restrictions on transfer set forth in this Section 4. Certificates for Conversion Shares
subject to legend removal hereunder shall be transmitted by the Transfer Agent to the Purchaser by crediting the account of the
Purchaser’s prime broker with the Depository Trust Company System as directed by such Purchaser.

 

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

 

    	24

    	 

    

 

4.2           Acknowledgment
of Dilution. The Company acknowledges that the issuance of the Securities may result in dilution of the outstanding shares
of Common Stock, which dilution may be substantial under certain market conditions. The Company further acknowledges that its
obligations under the Transaction Documents, including, without limitation, its obligation to issue the Conversion Shares pursuant
to the Transaction Documents, are unconditional and absolute and not subject to any right of set off, counterclaim, delay or reduction,
regardless of the effect of any such dilution or any claim the Company may have against any Purchaser and regardless of the dilutive
effect that such issuance may have on the ownership of the other stockholders of the Company.

 

4.3           Furnishing
of Information; Public Information.

 

(a)           
The Company agrees to cause the Common Stock to be registered under Section 12(g) of the Exchange Act on or before the 60th
calendar day following the date hereof. Thereafter, until the date on which no Purchaser owns Securities, the Company covenants
to maintain the registration of the Common Stock under Section 12(b) or 12(g) of the Exchange Act and to timely file (or obtain
extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after
the date hereof pursuant to the Exchange Act even if the Company is not then subject to the reporting requirements of the Exchange
Act.

 

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

 

    	25

    	 

    

4.4           Integration.
The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined
in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities in a manner that would require
the registration under the Securities Act of the sale of the Securities or that would be integrated with the offer or sale of
the Securities for purposes of the rules and regulations of any Trading Market such that it would require shareholder approval
prior to the closing of such other transaction unless shareholder approval is obtained before the closing of such subsequent transaction.

 

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

 

4.6           Securities
Laws Disclosure; Publicity. The Company shall (a) by 9:30 a.m. (New York City time) on the Trading Day immediately following
the date hereof, issue a press release disclosing the material terms of the transactions contemplated hereby, and (b) file a Current
Report on Form 8-K, including the Transaction Documents as exhibits thereto, with the Commission within the time required by the
Exchange Act. From and after the issuance of such press release, the Company represents to the Purchaser that it shall have publicly
disclosed all material, non-public information delivered to any of the Purchasers by the Company or any of its Subsidiaries, or
any of their respective officers, directors, employees or agents in connection with the transactions contemplated by the Transaction
Documents. The Company and each Purchaser shall consult with each other in issuing any other press releases with respect to the
transactions contemplated hereby, and neither the Company nor any Purchaser shall issue any such press release nor otherwise make
any such public statement without the prior consent of the Company, with respect to any press release of any Purchaser, or without
the prior consent of each Purchaser, with respect to any press release of the Company, which consent shall not unreasonably be
withheld or delayed, except if such disclosure is required by law, in which case the disclosing party shall promptly provide the
other party with prior notice of such public statement or communication. Notwithstanding the foregoing, the Company shall not
publicly disclose the name of any Purchaser, or include the name of any Purchaser in any filing with the Commission or any regulatory
agency or Trading Market, without the prior written consent of such Purchaser, except: (a) as required by federal securities law
in connection with the filing of final Transaction Documents with the Commission and (b) to the extent such disclosure is required
by law or Trading Market regulations, in which case the Company shall provide the Purchasers with prior notice of such disclosure
permitted under this clause (b).

 

4.7           Shareholder
Rights Plan. No claim will be made or enforced by the Company or, with the consent of the Company, any other Person, that
any Purchaser is an “Acquiring Person” under any control share acquisition, business combination, poison pill (including
any distribution under a rights agreement) or similar anti-takeover plan or arrangement in effect or hereafter adopted by the
Company, or that any Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue of receiving
Securities under the Transaction Documents or under any other agreement between the Company and the Purchasers.

    	26

    	 

    

 

4.8
           Non-Public Information. Except with respect to the material
terms and conditions of the transactions contemplated by the Transaction Documents, the Company covenants and agrees that neither
it, nor any other Person acting on its behalf, will provide any Purchaser or its agents or counsel with any information that the
Company believes constitutes material non-public information, unless prior thereto such Purchaser shall have entered into a written
agreement with the Company regarding the confidentiality and use of such information. The Company understands and confirms that
each Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company.

 

4.9           Use
of Proceeds. The Company shall receive no proceeds from this offering. The Purchasers are authorized to directly negotiate
and pay the Company’s accounts payables on negotiated terms between the Purchasers and the A/P Holders.

 

4.10         Indemnification
of Purchasers. Subject to the provisions of this Section 4.10, the Company will indemnify and hold each Purchaser and its
directors, officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent
role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser
(within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders,
agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles
notwithstanding a lack of such title or any other title) of such controlling persons (each, a “Purchaser Party”)
harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all
judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such
Purchaser Party may suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants
or agreements made by the Company in this Agreement or in the other Transaction Documents or (b) any action instituted against
the Purchaser Parties in any capacity, or any of them or their respective Affiliates, by any stockholder of the Company who is
not an Affiliate of such Purchaser Party, with respect to any of the transactions contemplated by the Transaction Documents (unless
such action is based upon a breach of such Purchaser Party’s representations, warranties or covenants under the Transaction
Documents or any agreements or understandings such Purchaser Party may have with any such stockholder or any violations by such
Purchaser Party of state or federal securities laws or any conduct by such Purchaser Party which constitutes fraud, gross negligence,
willful misconduct or malfeasance). If any action shall be brought against any Purchaser Party in respect of which indemnity may
be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the Company in writing, and the Company shall
have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable to the Purchaser Party. Any
Purchaser Party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but
the fees and expenses of such counsel shall be at the expense of such Purchaser Party except to the extent that (i) the employment
thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time
to assume such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion of counsel, a material
conflict on any material issue between the position of the Company and the position of such Purchaser Party, in which case the
Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel. The Company will
not be liable to any Purchaser Party under this Agreement (y) for any settlement by a Purchaser Party effected without the Company’s
prior written consent, which shall not be unreasonably withheld or delayed; or (z) to the extent, but only to the extent that
a loss, claim, damage or liability is attributable to any Purchaser Party’s breach of any of the representations, warranties,
covenants or agreements made by such Purchaser Party in this Agreement or in the other Transaction Documents. The indemnification
required by this Section 4.10 shall be made by periodic payments of the amount thereof during the course of the investigation
or defense, as and when bills are received or are incurred. The indemnity agreements contained herein shall be in addition to
any cause of action or similar right of any Purchaser Party against the Company or others and any liabilities the Company may
be subject to pursuant to law.

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4.11         Reservation
and Listing of Securities.

 

(a)          The
Company shall maintain a reserve from its duly authorized shares of Common Stock for issuance pursuant to the Transaction Documents
in such amount as equals 150% of the Required Minimum.

 

(b)          If,
on any date, the number of authorized but unissued (and otherwise unreserved) shares of Common Stock is less than 150% of (i) the
Required Minimum on such date, minus (ii) the number of shares of Common Stock previously issued pursuant to the Transaction Documents,
then the Board of Directors shall use commercially reasonable efforts to amend the Company’s certificate or articles of
incorporation to increase the number of authorized but unissued shares of Common Stock to at least the Required Minimum at such
time (minus the number of shares of Common Stock previously issued pursuant to the Transaction Documents), as soon as possible
and in any event not later than the 90th day after such date, provided that the Company will not be required at any
time to authorize a number of shares of Common Stock greater than the maximum remaining number of shares of Common Stock that
could possibly be issued after such time pursuant to the Transaction Documents.

 

(c)          The
Company shall, if applicable: (i) in the time and manner required by the principal Trading Market, prepare and file with such
Trading Market an additional shares listing application covering a number of shares of Common Stock at least equal to the Required
Minimum on the date of such application, (ii) take all steps necessary to cause such shares of Common Stock to be approved for
listing or quotation on such Trading Market as soon as possible thereafter, (iii) provide to the Purchasers evidence of such listing
or quotation and (iv) maintain the listing or quotation of such Common Stock on any date at least equal to the Required Minimum
on such date on such Trading Market or another Trading Market.

 

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4.12         Participation
in Future Financing.

 

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

 

(b)          At
least two (2) Trading Days prior to the closing of the Subsequent Financing, the Company shall deliver to each Purchaser a written
notice of its intention to effect a Subsequent Financing (“Pre-Notice”), which Pre-Notice shall ask such Purchaser
if it wants to review the details of such financing (such additional notice, a “Subsequent Financing Notice”).
Upon the request of a Purchaser, and only upon a request by such Purchaser, for a Subsequent Financing Notice, the Company shall
promptly, but no later than one (1) Trading Day after such request, deliver a Subsequent Financing Notice to such Purchaser. The
Subsequent Financing Notice shall describe in reasonable detail the proposed terms of such Subsequent Financing, the amount of
proceeds intended to be raised thereunder and the Person or Persons through or with whom such Subsequent Financing is proposed
to be effected and shall include a term sheet or similar document relating thereto as an attachment.

 

(c)          Any
Purchaser desiring to participate in such Subsequent Financing must provide written notice to the Company by not later than 5:30
p.m. (New York City time) on the second (2nd) Trading Day after all of the Purchasers have received the Pre-Notice
that such Purchaser is willing to participate in the Subsequent Financing, the amount of such Purchaser’s participation,
and representing and warranting that such Purchaser has such funds ready, willing, and available for investment on the terms set
forth in the Subsequent Financing Notice. If the Company receives no such notice from a Purchaser as of such second (2nd)
Trading Day, such Purchaser shall be deemed to have notified the Company that it does not elect to participate.

 

(d)          If
by 5:30 p.m. (New York City time) on the second (2nd) Trading Day after all of the Purchasers have received
the Pre-Notice, notifications by the Purchasers of their willingness to participate in the Subsequent Financing (or to cause their
designees to participate) is, in the aggregate, less than the total amount of the Subsequent Financing, then the Company may effect
the remaining portion of such Subsequent Financing on the terms and with the Persons set forth in the Subsequent Financing Notice.

 

(e)          If
by 5:30 p.m. (New York City time) on the second (2nd) Trading Day after all of the Purchasers have received the Pre-Notice,
the Company receives responses to a Subsequent Financing Notice from Purchasers seeking to purchase more than the aggregate amount
of the Participation Maximum, each such Purchaser shall have the right to purchase its Pro Rata Portion (as defined below) of
the Participation Maximum. “Pro Rata Portion” means the ratio of (x) the Subscription Amount of Securities
purchased by a Purchaser participating under this Section 4.12 and (y) the sum of the aggregate Subscription Amounts of Securities
purchased by all Purchasers participating under this Section 4.12.

 

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(f)          The
Company must provide the Purchasers with a second Subsequent Financing Notice, and the Purchasers will again have the right of
participation set forth above in this Section 4.12, if the Subsequent Financing subject to the initial Subsequent Financing Notice
is not consummated for any reason on the terms set forth in such Subsequent Financing Notice within thirty (30) Trading Days after
the date of the initial Subsequent Financing Notice.

 

(g)          The
Company and each Purchaser agree that if any Purchaser elects to participate in the Subsequent Financing, the transaction documents
related to the Subsequent Financing shall not include any term or provision whereby such Purchaser shall be required to agree
to any restrictions on trading as to any of the Securities purchased hereunder or be required to consent to any amendment to or
termination of, or grant any waiver, release or the like under or in connection with, this Agreement, without the prior written
consent of such Purchaser.

 

(h)          Notwithstanding
anything to the contrary in this Section 4.12 and unless otherwise agreed to by such Purchaser, the Company shall either confirm
in writing to such Purchaser that the transaction with respect to the Subsequent Financing has been abandoned or shall publicly
disclose its intention to issue the securities in the Subsequent Financing, in either case in such a manner such that such Purchaser
will not be in possession of any material, non-public information, by the tenth (10th) Business Day following delivery of the
Subsequent Financing Notice. If by such tenth (10th) Business Day, no public disclosure regarding a transaction with respect to
the Subsequent Financing has been made, and no notice regarding the abandonment of such transaction has been received by such
Purchaser, such transaction shall be deemed to have been abandoned and such Purchaser shall not be deemed to be in possession
of any material, non-public information with respect to the Company or any of its Subsidiaries. 

 

(i)          Notwithstanding
the foregoing, this Section 4.12 shall not apply in respect of an Exempt Issuance.         

 

4.13         RESERVED

 

4.14         Equal
Treatment of Purchasers. No consideration (including any modification of any Transaction Document) shall be offered or paid
to any Person to amend or consent to a waiver or modification of any provision of this Agreement unless the same consideration
is also offered to all of the parties to this Agreement. For clarification purposes, this provision constitutes a separate right
granted to each Purchaser by the Company and negotiated separately by each Purchaser, and is intended for the Company to treat
the Purchasers as a class and shall not in any way be construed as the Purchasers acting in concert or as a group with respect
to the purchase, disposition or voting of Securities or otherwise.

 

    	30

    	 

    

 

4.15         Certain
Transactions and Confidentiality. Each Purchaser, severally and not jointly with the other Purchasers, covenants that neither
it, nor any Affiliate acting on its behalf or pursuant to any understanding with it will (i) execute any Short Sales, of any of
the Company’s securities during the period commencing with the execution of this Agreement and ending at such time that
the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release as described
in Section 4.6 or (ii) from the date hereof until the earlier of the 12 month anniversary of the date hereof and the date that
the Preferred Stock is no longer outstanding, execute any Short Sales of the Common Stock (provided that this provision shall
not prohibit any sales made where a corresponding Notice of Conversion or Notice of Exercise is tendered to the Company and the
shares received upon such conversion or exercise are used to close out such sale) (a “Prohibited Short Sale”).
Each Purchaser, severally and not jointly with the other Purchasers, covenants that until such time as the transactions contemplated
by this Agreement are publicly disclosed by the Company pursuant to the initial press release as described in Section 4.6, such
Purchaser will maintain the confidentiality of the existence and terms of this transaction and the information included in the
Transaction Documents and the Disclosure Schedules. Notwithstanding the foregoing, and notwithstanding anything contained in this
Agreement to the contrary, the Company expressly acknowledges and agrees that (i) no Purchaser makes any representation, warranty
or covenant hereby that it will not engage in effecting transactions in any securities of the Company after the time that the
transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release as described in
Section 4.6, (ii) except for a Prohibited Short Sale, no Purchaser shall be restricted or prohibited from effecting any transactions
in any securities of the Company in accordance with applicable securities laws from and after the time that the transactions contemplated
by this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.6 and (iii) no
Purchaser shall have any duty of confidentiality to the Company or its Subsidiaries after the issuance of the initial press release
as described in Section 4.6.  Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment
vehicle whereby separate portfolio managers manage separate portions of such Purchaser’s assets and the portfolio managers
have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such Purchaser’s
assets, the covenant set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that
made the investment decision to purchase the Securities covered by this Agreement.

 

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

 

4.17         RESERVED.

 

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ARTICLE
V. 

MISCELLANEOUS

 

5.1           Termination. 
This Agreement may be terminated by any Purchaser, as to such Purchaser’s obligations hereunder only and without any effect
whatsoever on the obligations between the Company and the other Purchasers, by written notice to the other parties, if the first
Closing has not been consummated on or before August 23, 2013; provided, however, that such termination will not
affect the right of any party to sue for any breach by any other party (or parties).

 

5.2           Fees
and Expenses. At each Closing, the Company has agreed to reimburse Dominion Capital, LLC (“Dominion”) for
its legal fees and expenses incurred in connection with each such Closing; provided however, such small amount shall not exceed
$20,000. Except as expressly set forth in the Transaction Documents to the contrary, each party shall pay the fees and expenses
of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the
negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all Transfer Agent fees
(including, without limitation, any fees required for same-day processing of any instruction letter delivered by the Company and
any conversion notice delivered by a Purchaser), stamp taxes and other taxes and duties levied in connection with the delivery
of any Securities to the Purchasers.

 

5.3           Entire
Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of
the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, oral
or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

 

5.4           Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and
shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered
via facsimile at the facsimile number set forth on the signature pages attached hereto at or prior to 5:30 p.m. (New York City
time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered
via facsimile at the facsimile number set forth on the signature pages attached hereto on a day that is not a Trading Day or later
than 5:30 p.m. (New York City time) on any Trading Day, (c) the second (2nd) Trading Day following the date of mailing,
if sent by U.S. nationally recognized overnight courier service or (d) upon actual receipt by the party to whom such notice is
required to be given. The address for such notices and communications shall be as set forth on the signature pages attached hereto.

 

5.5           Amendments;
Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed,
in the case of an amendment, by the Company and the Purchasers holding at least 67% in interest of the Securities then outstanding
or, in the case of a waiver, by the party against whom enforcement of any such waived provision is sought. No waiver of any default
with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future
or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay
or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right.

 

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5.6           Headings.
The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect
any of the provisions hereof.

 

5.7           Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted
assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of
each Purchaser (other than by merger). Any Purchaser may assign any or all of its rights under this Agreement to any Person to
whom such Purchaser assigns or transfers any Securities, provided that such transferee agrees in writing to be bound, with respect
to the transferred Securities, by the provisions of the Transaction Documents that apply to the “Purchasers.”

 

5.8           No
Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors
and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as
otherwise set forth in Section 4.10 and this Section 5.8.

 

5.9           Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall
be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the
principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a
party hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be
commenced exclusively in the state and federal courts sitting in the City of New York. Each party hereby irrevocably submits to
the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication
of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including
with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert
in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such
suit, action or proceeding is improper or is an inconvenient venue for such proceeding. Each party hereby irrevocably waives personal
service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered
or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under
this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing
contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. If either
party shall commence an action, suit or proceeding to enforce any provisions of the Transaction Documents, then, in addition to
the obligations of the Company under Section 4.10, the prevailing party in such action, suit or proceeding shall be reimbursed
by the other party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation
and prosecution of such action or proceeding.

 

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

 

5.11         Execution.
This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each party and delivered to each other party, it being
understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission
or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of
the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof.

 

5.12         Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid,
illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain
in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially
reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated
by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that
they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

 

5.13         Rescission
and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of)
any of the other Transaction Documents, whenever any Purchaser exercises a right, election, demand or option under a Transaction
Document and the Company does not timely perform its related obligations within the periods therein provided, then such Purchaser
may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company, any relevant notice, demand
or election in whole or in part without prejudice to its future actions and rights; provided, however, that in the
case of a rescission of a conversion of the Preferred Stock, the applicable Purchaser shall be required to return any shares of
Common Stock subject to any such rescinded conversion notice concurrently with the restoration of such Purchaser’s right
to acquire such shares pursuant to such Purchaser’s Preferred Stock.

 

5.14         Replacement
of Securities. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company
shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation),
or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory
to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances
shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance of such replacement
Securities.

 

5.15         Remedies.
In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of
the Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that
monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the
Transaction Documents and hereby agree to waive and not to assert in any action for specific performance of any such obligation
the defense that a remedy at law would be adequate.

 

    	34

    	 

    

 

5.16         Payment
Set Aside. To the extent that the Company makes a payment or payments to any Purchaser pursuant to any Transaction Document
or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement or
exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from,
disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other Person
under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action),
then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived
and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

 

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

 

5.18         Independent
Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction Document are several
and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance
or non-performance of the obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any
other Transaction Document, and no action taken by any Purchaser pursuant hereto or thereto, shall be deemed to constitute the
Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers
are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction
Documents. Each Purchaser shall be entitled to independently protect and enforce its rights, including, without limitation, the
rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser
to be joined as an additional party in any proceeding for such purpose. Each Purchaser has been represented by its own separate
legal counsel in its review and negotiation of the Transaction Documents. For reasons of administrative convenience only, each
Purchaser and its respective counsel have chosen to communicate with the Company through RBLGGG. RBLGGG does not represent any
of the Purchasers and only represents Dominion. The Company has elected to provide all Purchasers with the same terms and Transaction
Documents for the convenience of the Company and not because it was required or requested to do so by any of the Purchasers.

    	35

    	 

    

 

5.19         Liquidated
Damages. The Company’s obligations to pay any partial liquidated damages or other amounts owing under the Transaction
Documents is a continuing obligation of the Company and shall not terminate until all unpaid partial liquidated damages and other
amounts have been paid notwithstanding the fact that the instrument or security pursuant to which such partial liquidated damages
or other amounts are due and payable shall have been canceled.

 

5.20         Saturdays,
Sundays, Holidays, etc.         If the last or appointed day for the taking of
any action or the expiration of any right required or granted herein shall not be a Business Day, then such action may be taken
or such right may be exercised on the next succeeding Business Day.

 

5.21         Construction.
The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the Transaction
Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting
party shall not be employed in the interpretation of the Transaction Documents or any amendments thereto. In addition, each and
every reference to share prices and shares of Common Stock in any Transaction Document shall be subject to adjustment for reverse
and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after
the date of this Agreement.

 

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

 

(Signature
Pages Follow)

 

    	36

    	 

    

 

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

 

	amarantus bioscience holdings, inc.	 	Address for Notice:
	 	 	 
	 	 	655 Montgomery Street, Suite 900
	 	 	San Francisco, CA 94111
	 	 	Attn: Gerald Commissiong
	 	 	Fax: (408) 852-4427
	 	 	 
	By: 	/s/ Gerald Commissiong	 	 
	 	Name: Gerald Commissiong	 	 
	 	Title:	 	 
	 	 	 
	With a copy to (which shall not constitute notice):	 	 
	 	 	 
	Sichenzia Ross Friedman Ference LLP	 	 
	61 Broadway, 32nd Floor	 	 
	New York, NY 10006	 	 
	Attn: Jeffrey Fessler, Esq.	 	 
	Fax: (212) 930-9725	 	

 

 

[REMAINDER OF
PAGE INTENTIONALLY LEFT BLANK 

SIGNATURE PAGE
FOR PURCHASER FOLLOWS]

 

    	37

    	 

    

 

[PURCHASER SIGNATURE
PAGES TO AMBS SECURITIES PURCHASE AGREEMENT]

 

IN
WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

 

Name of Purchaser: __Dominion
Capital LLC_____________________________

 

Signature of Authorized Signatory
of Purchaser: __________________________

 

Name of Authorized Signatory: _/s/
Mikhail Gurevich______________________

 

Title of Authorized Signatory: __Managing
Member________________________

 

Email Address of Authorized Signatory:
___________________________________________

 

Facsimile Number of Authorized Signatory:
_________________________________________

 

Address for Notice to Purchaser:

 

Address for Delivery of Securities
to Purchaser (if not same as address for notice):

 

	Subscription Amount: $_1,000,000______	Subscription Amount: $_2,000,000______
	 	 
	Shares of Preferred Stock: _1,000_______	Shares of Preferred Stock: _2,000_______
	 	 
	EIN Number: _______________________	 

 

[SIGNATURE PAGES
CONTINUE]

 

    	38

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