Document:

Exhibit 4.2

 

	Offeree:______________________  	______

 

Point
Medical, Inc.

 

PRIVATE PLACEMENT OFFERING, SUBSCRIPTION
AGREEMENT,

ACCREDITED INVESTOR QUESTIONNAIRE

AND DISCLOSURE DOCUMENT

 

————————————————————————————————

Private Offering of up to a Maximum of
______ Common Shares

of

POINT MEDICAL, INC.

————————

Each Share is Offered
at the Subscription Price of $___

and the

Maximum of ____ Shares for aggregate of
$______

—————————————————

This Private Offering of Shares to be
issued by Point Medical, Inc. (“We”, “Us” or the “Company”) is being conducted on a “best
efforts” basis. This means that once we accept your subscription agreement, we will release your investment funds to the
Company for the uses disclosed. We will terminate our Private Offering on ____________, our Private Offering “Termination
Date”, unless extended by us for an additional period of time, not to exceed 60 days. See “Use of Proceeds”
at Page 12 below. Accordingly you should be aware that we are not required to place your funds in escrow or raise any minimum
amount of investor funds before we can use your investment funds for the purposes described herein.

—————————————————

 

	Securities	 	Number	 	 	Subscription	 	 	Gross Proceeds	 	 	Net Proceeds	 
	Offered	 	of Shares	 	 	Price	 	 	to Company	 	 	to
    Company1	 
	Each Share:	 			 	 			 	 			 	 			 
	Total Offering:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Maximum:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

AN INVESTMENT IN THESE SHARES IS HIGHLY SPECULATIVE AND
HIGH RISK; 

POTENTIAL INVESTORS SHOULD
READ THE “RISK FACTORS” AT PAGE 17. 

 

 

1
                                         We may engage one or more FINRA registered broker/dealers to assist us in
                                         the private offering of our Shares, in which case we will pay _______________.

 

     

     

    

 

BY ACCEPTING DELIVERY OF THIS PRIVATE
PLACEMENT OFFERING, SUBSCRIPTION AGREEMENT DISCLOSURE DOCUMENT, EACH PROSPECTIVE INVESTOR ACKNOWLEDGES AND AGREES THAT THIS PRIVATE
PLACEMENT OFFERING, SUBSCRIPTION AGREEMENT DISCLOSURE DOCUMENT IS THE PROPRIETARY PROPERTY OF THE COMPANY AND TO MAINTAIN ABSOLUTELY
THE CONFIDENTIALITY OF ITS CONTENTS WHICH, WITHOUT THE PRIOR WRITTEN CONSENT OF THE COMPANY, SHALL NOT BE DISCLOSED TO ANY PERSON,
COPIED OR USED FOR ANY OTHER PURPOSE OTHER THAN TO EVALUATE AN INVESTMENT IN THE SHARES OFFERED HEREBY AND TO RETURN THIS PRIVATE
PLACEMENT OFFERING, SUBSCRIPTION AGREEMENT DISCLOSURE DOCUMENT TO THE COMPANY IF THE PROSPECTIVE INVESTOR DOES NOT AGREE TO PURCHASE
ANY OF THE SHARES.

 

INVESTMENT CONSIDERATIONS

 

NEITHER THE SECURITIES AND EXCHANGE
COMMISSION NOR ANY OTHER FEDERAL OR STATE REGULATORY BODY HAS APPROVED OR DISAPPROVED OF THIS PRIVATE OFFERING OR PASSED UPON
THE ACCURACY OR ADEQUACY OF THIS PRIVATE PLACEMENT OFFERING, SUBSCRIPTION AGREEMENT DISCLOSURE DOCUMENT. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.

 

THE SHARES OFFERED FOR SALE IN THIS
PRIVATE OFFERING ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.
INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF
TIME. SEE RISK FACTORS.

 

EXCEPT AS OTHERWISE INDICATED, THIS
PRIVATE PLACEMENT OFFERING, SUBSCRIPTION AGREEMENT DISCLOSURE DOCUMENT SPEAKS AS OF THE DATE HEREOF. NEITHER THE DELIVERY OF THIS
PRIVATE PLACEMENT OFFERING, SUBSCRIPTION AGREEMENT DISCLOSURE DOCUMENT NOR ANY SALE MADE HEREUNDER SHALL, UNDER ANY CIRCUMSTANCES,
CREATE AN IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE COMPANY AFTER THE DATE HEREOF.

 

NO RULINGS FROM THE INTERNAL REVENUE
SERVICE OR LEGAL OPINIONS HAVE BEEN OR WILL BE SOUGHT WITH RESPECT TO ANY OF THE TAX CONSEQUENCES RELATING TO INVESTMENT IN THE
SHARES OFFERED HEREIN. PROSPECTIVE INVESTORS SHOULD REVIEW THE PROPOSED TRANSACTIONS WITH THEIR TAX ADVISORS ON WHOSE OPINION
THEY SHOULD RELY. PROSPECTIVE INVESTORS ARE NOT TO CONSTRUE THE CONTENTS OF THIS PRIVATE PLACEMENT OFFERING, SUBSCRIPTION AGREEMENT
DISCLOSURE DOCUMENT AS LEGAL, TAX OR INVESTMENT ADVICE. EACH INVESTOR SHOULD CONSULT HIS OR HER COUNSEL, ACCOUNTANT OR BUSINESS
ADVISOR AS TO LEGAL, TAX AND RELATED MATTERS CONCERNING HIS OR HER INVESTMENT.

 

    	 	2	 

     

    

 

THIS PRIVATE PLACEMENT OFFERING, SUBSCRIPTION
AGREEMENT DISCLOSURE DOCUMENT CONTAINS A FAIR SUMMARY OF THE DOCUMENTS REFERRED TO HEREIN, BUT REFERENCE IS MADE TO SUCH DOCUMENTS
FOR COMPLETE INFORMATION CONCERNING THE RIGHTS AND OBLIGATIONS OF THE PARTIES THERETO, ALL OF WHICH DOCUMENTS ARE ATTACHED AS
EXHIBITS HERETO AND INCORPORATED BY REFERENCE IN THEIR ENTIRETY HEREIN. OTHER INFORMATION CONTAINED HEREIN HAS BEEN OBTAINED FROM
THE COMPANY AND FROM OTHER SOURCES DEEMED RELIABLE. SUCH INFORMATION NECESSARILY INCORPORATES SIGNIFICANT ASSUMPTIONS AS WELL
AS FACTUAL MATTERS. ALL DOCUMENTS RELATING TO THIS INVESTMENT WILL BE MADE AVAILABLE TO POTENTIAL INVESTORS. ANY REPRESENTATIONS
OTHER THAN THOSE SET FORTH IN THIS PRIVATE PLACEMENT OFFERING, SUBSCRIPTION AGREEMENT DISCLOSURE DOCUMENT AND THE EXHIBITS ATTACHED
HERETO MUST NOT BE RELIED UPON.

 

THE DOCUMENTS INCORPORATED BY REFERENCE
HEREIN ARE SUBJECT TO THE REVIEW BY THE INVESTOR OR HIS OR HER ADVISORS AND ARE DEEMED AN INTEGRAL PART OF THIS PRIVATE PLACEMENT
OFFERING, SUBSCRIPTION AGREEMENT DISCLOSURE DOCUMENT.

 

NEITHER DELIVERY OF THIS PRIVATE PLACEMENT
OFFERING, SUBSCRIPTION AGREEMENT DISCLOSURE DOCUMENT NOR ANY SALE MADE HEREUNDER SHALL UNDER ANY CIRCUMSTANCES CREATE AN IMPLICATION
THAT INFORMATION CONTAINED HEREIN IS CORRECT AS OF ANY TIME SUBSEQUENT TO THE DATE HEREOF.

 

INVESTORS ARE CAUTIONED NOT TO RELY
UPON ANY INFORMATION NOT EXPRESSLY SET FORTH OR INCORPORATED BY REFERENCE IN THIS PRIVATE PLACEMENT OFFERING, SUBSCRIPTION AGREEMENT
DISCLOSURE DOCUMENT. THE INFORMATION PRESENTED IS AS OF THE DATE SET FORTH ON THE COVER PAGE HEREOF UNLESS ANOTHER DATE IS SPECIFIED,
AND NEITHER THE DELIVERY OF THIS PRIVATE PLACEMENT OFFERING, SUBSCRIPTION AGREEMENT DISCLOSURE DOCUMENT NOR ANY SALE HEREUNDER
SHALL CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE INFORMATION PRESENTED SUBSEQUENT TO SUCH DATE (S).

 

THIS PRIVATE OFFERING IS SUBJECT TO
WITHDRAWAL, CANCELLATION OR MODIFICATION BY THE COMPANY WITHOUT NOTICE AND IS SPECIFICALLY MADE SUBJECT TO THE TERMS DESCRIBED
IN THIS PRIVATE PLACEMENT OFFERING, SUBSCRIPTION AGREEMENT DISCLOSURE DOCUMENT. 

 

EACH INVESTOR, PRIOR TO HIS OR HER
PURCHASE OF THE SHARES OFFERED HEREBY, SHALL HAVE THE OPPORTSHAREY TO ASK QUESTIONS OF, AND RECEIVE ANSWERS FROM THE COMPANY OR
HIS AUTHORIZED REPRESENTATIVE, DURING BUSINESS HOURS, CONCERNING THE TERMS AND CONDITIONS OF THE OFFERING AND TO OBTAIN ANY ADDITIONAL
INFORMATION THAT THEY POSSESSES OR CAN ACQUIRE WITHOUT UNREASONABLE EFFORT OR EXPENSE THAT IS NECESSARY TO VERIFY THE ACCURACY
OF INFORMATION FURNISHED IN THIS PRIVATE PLACEMENT OFFERING, SUBSCRIPTION AGREEMENT DISCLOSURE DOCUMENT. ANY ADDITIONAL INFORMATION
OR REPRESENTATIONS GIVEN OR MADE BY THE COMPANY OR HIS AUTHORIZED REPRESENTATIVE IN CONNECTION WITH THIS PRIVATE PLACEMENT OFFERING,
SUBSCRIPTION AGREEMENT DISCLOSURE DOCUMENT, WHETHER ORAL OR WRITTEN, ARE QUALIFIED IN THEIR ENTIRETY BY THE INFORMATION SET FORTH
OR INCORPORATED BY REFERENCE IN THIS PRIVATE PLACEMENT OFFERING, SUBSCRIPTION AGREEMENT DISCLOSURE DOCUMENT.

 

    	 	3	 

     

    

 

Point Medical, Inc.

SUBSCRIPTION DOCUMENTS

 

Instructions to Subscribers for Shares:

 

For those persons and entities who wish
to subscribe for the Shares, set forth below is certain information which is intended to enable subscribers to more easily and
quickly complete the necessary subscription documents. We have set forth below the following documents which must be completed
and returned to us by all persons seeking to purchase our Shares:

 

		A.	Purchaser
                                         Questionnaire for Individuals (to be completed by a Subscriber who is an individual).
                                         (1 Copy)

 

		B.	Purchaser Questionnaire for Organizations
                                         and Trusts (to be completed by a Subscriber which is a corporation, partnership or trust.
                                         Questionnaires for Organizations and Trusts are available upon request). (1 Copy)

 

		C.	Subscription Agreement (Signature
                                         pages, 2 Copies)

 

Subscription Agreement:

Please print and complete and sign one
(1) signature page, for individuals is on page 19 and on page 20 for organizations.

 

Subscription Payments:

Payment for the number of Shares subscribed
for, should accompany the executed Purchaser Questionnaire and Subscription Agreements described above.

 

Payments should be wired to Millington
Savings Bank, 1902 Long Hill Road, Millington, NJ 07946,; ABA# 221272044; Account No. 200119046 “Point Medical, Inc.”,
or may be mailed, payable to Point Medical, Inc., at 665 Martinsville Road, Ste. 219, Basking Ridge, NJ 07920

 

All
PURCHASER QUESTIONNAIRES, SUBSCRIPTION AGREEMENTS AND SUBSCRIPTION CHECKS SHOULD BE RETURNED TO:

 

John Toedtman or Joerg Klaube

Point Medical, Inc.

665 Martinsville Road, Ste. 219

Basking Ridge, New Jersey 07920

Fax: 908-604-9077

Email for Receipt of Scanned Documents:
jklaube@att.net

 

    	 	4	 

     

    

 

PLEASE TYPE OR PRINT ALL INFORMATION
IN INK

 

Point Medical, Inc.

(The "Company")

 

PURCHASER QUESTIONNAIRE FOR INDIVIDUALS

 

Purpose of the Questionnaire

 

The law requires that
sales of the Shares of the Company be confined to persons that meet certain eligibility criteria in order not to violate the registration
provisions of the Securities Act of 1933 and the securities laws of states in which the Shares may be offered. Accordingly, you
should carefully and accurately set forth the information requested below. Failure by you to answer these questions accurately
and completely could result in loss of exemptions from registration with respect to the entire Private Offering, to the substantial
damage of the Company and its shareholders. This Questionnaire does not constitute an offer to sell or the solicitation of an
offer to buy any security.

 

Instructions

 

One copy of this Questionnaire
should be completed, signed, dated, and delivered to John Toedtman or Joerg Klaube, Point Medical, Inc., 665 Martinsville Road,
Ste. 219, Basking Ridge, New Jersey 07920.

 

PLEASE COMPLETE
THE FOLLOWING QUESTIONNAIRE FULLY, ATTACHING ADDITIONAL SHEETS IF NECESSARY. If the appropriate response is "None" or
"Not Applicable," please so state.

 

Confidentiality

 

Answers will be kept
strictly confidential at all times; however, the Company or its Securities Counsel may present this questionnaire to such parties
as they deem appropriate in order to assure or to establish that the offer and sale of the Shares complies with federal and/or
state securities laws.

 

Please answer all questions. If the
answer to any questions is "None" or "Not Applicable," please so state.

 

	1.	Full Name:  __________________________________________________
	 	Social Security Number ___________________________ Age _________
	 	 
	 	Occupation:  _________________________________________________
	 	____________________________________________________________
	 	 
	 	Citizenship _____________________ Number of Dependents  _________
	 	Residential Address:
	 	___________________________________________________________
	 	Street Address
	 	___________________________________________________________
	 	City	State	Zip Code
	 	Telephone: (____)____________________________________________
	 	 
	 	Business Address:
	 	___________________________________________________________
	 	Street Address
	 	___________________________________________________________
	 	City	State	Zip Code
	 	Telephone: (____)____________________________________________

 

    	 	5	 

     

    

 

	 	Please indicate your preferred mailing address:

 

(    ) Residential
(    ) Business

 

2. Accredited Investor Status. Each
potential investor in this private offering must represent that as a Subscriber, he, she or the entity is an “accredited
investor” as such term is defined in Rule 501 of Regulation D promulgated under the Securities Act of 1933, amended (the
“Securities Act”). Specifically, the Subscriber is (check appropriate items):

 

_________ (i) A bank, savings and loan association or other
similar institution (as defined in Sections 3(a)(2) and 3(a)(5)(A) of the Securities Act);

 

_________ (ii) A broker or dealer registered pursuant to Section
15 of the Securities Exchange Act of 1934, as amended;

 

_________ (iii) An insurance company (as defined in Section
2(13) of the Securities Act);

 

_________ (iv) An investment company registered under the Investment
Company Act of 1940 (the “Investment Company Act”);

 

_________ (v) A Small Business Investment Company licensed
by the U.S. Small Business Administration under Sections 301(c) or (d) of the Small Business Investment Act of 1958;

 

_________ (vi) Any plan established and maintained by a state,
its political subdivisions, or any agency or instrumentality of a state or its subdivisions for the benefit to its employees,
which plan has total assets in excess of $5,000,000;

 

_________ (vii) An employee benefit plan within the meaning
of the Employee Retirement Income Security Act of 1974 (“ERISA”), if the investment decision is made by a “Plan
Fiduciary”, as defined in Section 3(21) of ERISA, which is either a bank, savings and loan association, insurance company
or registered investment adviser;

 

_________ (viii) An employee benefit plan within the meaning
of ERISA having total assets in excess of $5,000,000;

 

_________ (ix) A self-directed employee benefit plan within
the meaning of ERISA, with investment decisions made solely by persons who are accredited investors as defined in Rule 501(a)
of Regulation D;

 

_________ (x) A business development company (as defined in
Section 2(a)(48) of the Investment Company Act) or a private business development company (as defined in Section 202(a)(22) of
the Investment Advisers Act of 1940);

 

_________ (xi) A corporation, partnership, Massachusetts or
similar business trust, or organization described in Section 501(c)(3)
of the Internal Revenue Code of 1986, as amended (tax exempt organization), not formed for the specific purpose of acquiring the
Shares having total assets in excess of $5,000,000;

 

_________ (xii) Any executive officer or director of the Company;

 

_________ (xiii) An individual having an individual net worth
or a joint net worth with spouse at the time of purchase in excess of $1,000,000; the value of the individual’s primary
residence must be excluded and any indebtedness secured by the residence in excess of the value of the home should be considered
a liability and deducted from the investor’s net worth.

 

    	 	6	 

     

    

 

_________ (xiv) An individual whose net income was in excess
of $200,000 in each of the two most recent calendar years, or whose joint income with spouse was in excess of $300,000 in each
of those years, and who reasonably expects his net income to reach such level in the current calendar year;

 

_________ (xv) A trust with total assets in excess of $5,000,000
not formed for the specific purpose of acquiring the Shares whose purchase is directed by a sophisticated person (i.e., person
who has such knowledge and experience in financial and business matters that he is capable of evaluating the merits and risks
of any securities); or

 

_________ (xvi) Any entity in which all of the entity owners
are “accredited investors.

 

		3.	Are you aware that the Shares proposed
                                         to be offered will be non-marketable, requiring your capital investment to be maintained
                                         for an indefinite period of time?

 

Yes _____                              No
_____

 

		4.	Please list your business or professional
                                         educational background (schools attended and degrees obtained):

 

	 	Schools

    Attended	 	Degree	 	Dates	 

 

________________________________________________________________

________________________________________________________________

________________________________________________________________

________________________________________________________________

 

		5.	Please list any professional licenses
                                         or registrations including bar admissions, accounting certifications, real estate brokerage
                                         licenses, and SEC or state broker-dealer registrations, held by you:

________________________________________________________________

________________________________________________________________

________________________________________________________________

 

		6.	Please list your principal employment
                                         and business activities during the last five years, as well as any relevant financial
                                         experience.

 

	 	Employer/Dates	 	Position/Title	 

 

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

 

		7.	Please describe your experience as an
                                         investor, including amounts invested, in securities, particularly investments in non-marketable
                                         securities and tax incentive securities such as equipment leasing, real estate, research
                                         and development, hi-tech, or oil and gas.

 

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

 

		8.	Have you participated in other offerings
                                         or private placements of securities?

 

Yes _____                                 No
_____

 

    	 	7	 

     

    

 

I understand that the Company will be relying on the accuracy
and completeness of my responses to the foregoing questions and I represent and warrant to the Company as follows:

 

		i.	The answers to the above questions are
                                         complete and correct and may be relied upon by the Company in determining whether the
                                         Private Offering in which I propose to participate is exempt from registration under
                                         the Securities Act of 1933, as amended (the “Securities Act”);

 

		ii.	I will notify the Company immediately
                                         of any material change in any statement made herein occurring prior to the closing of
                                         any purchase by me of any Shares of the Company;

 

		iii.	I, together with my indicated Purchaser
                                         Representative(s), if any, have sufficient knowledge and experience in financial and
                                         business matters to evaluate the merits and risks of the prospective investment; I am
                                         able to bear the economic risk of the investment and currently could afford a complete
                                         loss of such investment; and

 

		iv.	I acknowledge that
                                         the Company shall rely upon my above representations to establish that I am an accredited
                                         investor so that the Company may claim an exemption from the registration requirements
                                         of the Securities Act and applicable state registration requirements. Accordingly, I
                                         hereby agree to indemnify the Company and hold it harmless from and against any liability
                                         arising out of or in connection with any material inaccuracy contained in my above representations.

 

IN WITNESS WHEREOF, I have executed this
Prospective Purchaser Questionnaire this _____ day of ________________, ___.

 

	 	 	 	 
	Prospective Purchaser Signature	 	Prospective Purchaser Signature	 
	 	 	 	 
	 	 	 	 
	Print Name	 	Print Name	 
	 	 	 	 
	Date	 	Date	 

 

    	 	8	 

     

    

 

SUBSCRIPTION AGREEMENT

Point Medical, Inc.

665 Martinsville Road, Ste.219

Basking Ridge, New Jersey 07920

 

Preliminary Discussion

 

Point Medical, Inc., a Delaware corporation
(“PMI”,“We”, “Us” or the “Company”) is offering to sell up to a Maximum of ________
Shares to select accredited investors. We are offering to sell Shares at the per-Share price of $_____ or for $_______ for the
Maximum of ______ Shares sold.

 

Brief Summary of Point Medical, Inc.
(“PMI”)

 

History. Point Medical,
Inc. was incorporated in the State of Delaware in August, 2013. As of _____, the company has _________ shareholders including
founders, management and investors.

 

Background. Large Volume
Infusion Pumps are used for the rapid injection of Intravenous Fluids (“IV”) such as antibiotics, cancer drugs, pain
medications, hydration fluids and parental nutrition fluids. IV infusion therapy is among the three most used therapies in acute
care world-wide. Each administration of IV fluids requires a single-patient-use disposable IV set comprised of an IV bag into
which the fluids/drugs are loaded, and the tubing to the injection site. After the drug or fluid is administered, the set is discarded.

 

In their present form, the pumps in the
market are unchanged in 40 years in their basic operation, namely a motor drives a linear or rotary peristaltic head that compresses
the tube with the IV fluid in it thus pushing it along into the patient via the patient injection site. All pumps have the same
basic sensors and corresponding alarms for: low battery, air bubble detection, and fluid line occlusion (‘kink in the line’).
What has changed dramatically over the past 15 years is the advent of many additional features such as look-up tables for drug
libraries often numbering in the thousands of drugs, calculation tables for infusion rates, various bolus options, patient data
capture, Wi-Fi connectivity to hospital data systems, HIPPA patient confidentiality compliance routines, infusion time records
and so on. While valuable options to the clinician, the complexity of the software used to deliver these features, and the continued
use of fundamentally very old mechanical hardware designs used to deliver fluid are alleged to have caused erratic operational
changes in the infusion delivery itself. Hence infusion pumps start, re-start, slow down, speed up, or stop without a specific
command or reason why the behavior of the pump motor changed. As a consequence,

 

The FDA has issued numerous Warning Letters
to the manufacturers of Large Volume infusion pumps and ordered product recalls in a number of cases. In fact, every major manufacturer
of Large Volume infusion pumps has had its pumps recalled and several have had multiple pump recalls. The most recent large recall
was ordered for Hospira; this recall involved hundreds of thousands of pumps and caused a $340 million write off for Hospira.
With such a large number of ‘unexplained’ errors, in April 2010, the FDA publically described the design flaws of
the current generation of pumps as a “crisis”. [For further reference see FDA’s “Infusion Pump Improvement
Initiative”, In terms of number and severity of recalls since then, the situation has not improved, and the market needs
solutions.

 

    	 	9	 

     

    

 

[http://www.fda.gov/MedicalDevices/ProductsandMedicalProcedures/GeneralHospitalDevicesandSupplies/InfusionPumps/ucm205424.htm
]

 

New Pump and Technology.
With over 10 years in the design, engineering and manufacturing of infusion pumps, PMI’s development partner, Leveraged
Developments, LLC (“LD”) and its team of experienced medical device designers launched a two-year development program
whose goal was to correct the problems at the root of the many pump failures. While existing pump drive systems can include over
100 moving mechanical parts such as cams, rotors, springs, fingers and hinges (see picture (A) below), our pump drive system utilizes
only three moving parts in its unique proprietary and patented approach (see picture (B) below).

 

The new pump design is elegantly simple,
utilizing aerospace-grade components that provide extremely high reliability, durability and precision. Our components are easily
manufactured in large quantities at costs that help to give us strong cost-of ownership advantages over competitive pumps and
disposables. The pump drive system uses low pressure air to propel the IV fluid rather than the widely used peristaltic drive
systems that are inherently difficult to control. Our new system delivers IV fluids with exceptionally high levels of accuracy
compared to any existing infusion pump on the market today. Additionally, the new pump positively eliminates ‘air bubbles
or air in the line’ and this dramatically reduces frequent alarms and interruption of patient medicine delivery. The disposable
part of the system that is incorporated into the IV administration set is designed for production runs in the millions of pieces
at competitive costs. This new pump has been designed to solve the many technical, patient care and workflow issues that have
plagued the infusion market for years.

 

Provisional patents were filed in May,
2013 and the non-provisional (‘definitive’) patents covering the pump and the disposable for both U.S. and international
countries under the PCT convention were filed in May 2014. The assembly of a batch of production equivalent pumps and disposables
as well as the data gathering for FDA submission occurs over the next 5 months, with submission for FDA 510(K) approval slated
for end-March, 2015. The IV pump is a Class II device and the approval cycle averages four months from submission.

 

The resulting new pump design, disposable
cassette design, patent applications and other intellectual property are the subject of a transaction (see “Asset Purchase
Agreement” below) between PMI and LD. Manufacturing rights for the pump and disposable cassette were purchased by Mack Holdings,
one of the largest and most highly regarded medical device manufacturers with fully FDA-compliant facilities located in the U.S.
and Mexico. Our pump and disposables will be assembled in Mack Holding’s main medical device facility located in southern
Vermont. PMI is in the process of assuming the agreements between LD and Mack Holdings including the Manufacturing agreements,
development funding agreement and a $600,000, 25-year Note at 5% interest due to Mack Holdings. The Note principal and interest
paid will be an off-set to future incentive payments due to LD.

 

    	 	10	 

     

    

 

		
	Picture (A):  A typical “compact” pump.	Picture (B):  PMI BreezeTM prototype.

 

Market and Our Strategy.
The market for large volume infusion pumps falls into the following sectors:

		·	Hospitals,
                                         approximately 5,400 primary care hospitals in the U.S. with an installed base of approximately
                                         1,200,000 pumps.

 

Non-Hospital Markets include:

		·	Home
                                         Care Infusion

		·	Infusion
                                         Clinics mainly for delivery of Cancer Drugs

		·	Ambulances
                                         and other Critical Care Transport, approximately 65,000 vehicles in U.S.

		·	Military

		·	Off-site,
                                         off-grid locations like oil rigs, Indian reservations and the like.

		·	Collectively,
                                         the Non-Hospital Markets have an installed base of approximately 600,000 pumps.

 

About 75% of the U.S. market, or $750
million of the annual pump sales of $985 million are in hospitals, and the balance of $235 million is spread across the non-hospital
markets. The disposable IV Administration set market is estimated at $900 million annually in the U.S. for the hospital segment
and an estimated $475 million in the non-hospital markets. For products of this type the world-wide sales will typically be 2.0
times the size of the U. S. market, and again the large hospital sector dominates the usage. [See Table 1 below]

 

PMI’s strategy and initial focus
is to commercialize our new pump in the non-hospital markets mentioned above. This is an addressable domestic annual market opportSharey
of $716 million in combined pump and disposable sets, plus the foreign market potential of even larger size. PMI has established
a relationship with the largest distributor to the non-hospital market, Medical Specialties Distributors (“MSD”).
MSD has been tracking the development of the new pump and PMI and MSD are working cooperatively on pre-market preparations and
toward a formal distribution agreement. After establishing success in the non-hospital market, PMI plans to enter the large U.S.
hospital market not by directly competing with the well-established competitors with broad product lines in that sector, but rather
by establishing selective and profitable licensing relationships with one or more of the major market players – all of whom
are known to us.

 

    	 	11	 

     

    

 

Table 1: Market Segmentation

 

	 	 	Market
    Segment	 	Annual Market ( $MM )
    *	 
	1	 	US Home and Clinic Infusion	 	 	603	 
	2	 	US Ambulance and Transport	 	 	78	 
	3	 	Military and VA	 	 	35	 
	4	 	US Hospital	 	 	1650	 
	5	 	International	 	 	1845	 
	Total	 	WW	 	$	4,211
                                         MM	 

 

* Includes infusion pumps
and proprietary consumable IV administration sets

 

Competition. Large well-known
hospital supply companies such as Baxter, Hospira, CareFusion, B. Braun and Smiths Medical are the major competitors in the infusion
pump market. Their activities are focused on the Hospital market where large, multiple-year contracts for pumps and administration
sets are the norm. The other sectors are widely diffused, generally not part of large buying groups and are often handled by specialty
distributors since direct sales calls by big company sales forces are not justified. Hence hospital pumps, though not designed
with the ruggedness and portability needed for the ambulance and home infusion market end up in these markets simply because hospital
type are the only pumps available. PMI is very specifically designing features and ruggedness that will address home infusion,
clinic and mobile-transport market needs, as well as offer major advances over existing competitors in the broader hospital market.
Table 2 (below) represents key differentiating features that will drive purchase decisions across the infusion pump market.

 

Table 2: DIFFERENTIATING FEATURE COMPARISON
TABLE

 

	INNOVATION
    FEATURES	 	NEW
    PMI PUMP	 	COMPETITORS
	Active Air Elimination	 	Yes	 	No
	Self-Priming	 	Yes	 	No
	One-handed loading	 	Yes	 	No
	Pre-therapy battery assurance	 	Yes, 1 liter delivered capacity	 	No, 500ml capacity (typical) 
	One-wipe infection control	 	Yes	 	No
	Weight	 	1 lb.	 	3-9 lbs. (typical)
	Delivered volume measured	 	Yes, continuous precision	 	No
	Smart occlusion management	 	Yes	 	No
	Internet of Things	 	Yes, BTLE, fully integrated	 	No

 

    	 	12	 

     

    

 

Pricing. For non-hospital
applications such as home–infusion and cancer clinic infusion the pump price paid by the user averages $2,400, and is somewhat
higher in the fragmented markets such as ambulance and nursing homes. Disposable “administration kits” with proprietary
“cassettes” sell in the range of $4.50- $6.50 each in the non-hospital market. PMI will have both extremely attractive
cost of goods, as well as compelling cost of ownership in its infusion pump and accessory product line offering. These advantages
will enable attractive competitive pricing at product launch, followed by price leadership as we increase market shares in each
segment.

 

Asset purchase Agreement. PMI and LD have entered
into an Asset Purchase Agreement under which PMI purchases the Intellectual Property of LD, patent applications, and know-how
of the infusion pump, disposable cassette and improvements thereto. Consideration for this purchase is summarized as follows:

		a)	$1,200,000 in scheduled payments intended for the completion
                                         of the product development and the filing application to the FDA. Payments commenced
                                         in March, 2014

		b)	Three per-cent of the common stock of PMI outstanding as of
                                         March 31, 2014. Such stock has been issued to LD

		c)	Incentive payments to LD of $100.00 per pump sold, for the
                                         life of the patents, and such incentive payments will cease under certain events including
                                         the sale of PMI.

 

PMI has committed to $2.88 Million of funding for
future R&D projects for the 2-year period commencing June 1, 2015. This commitment will employ the engineering , design and
inventiveness of the LD team. LD has additional new medical device product concepts of substantial interest to PMI.

 

Management

 

George Boyajian. Chief Executive
Officer, Director. Following an early career in academia, Mr. Boyajian launched a successful entrepreneurial career as CEO of
PhytoWorks, Inc. a genetically altered plant and enzyme company, then co-founder and CEO of Living Independently Group, Inc. that
developed and marketed a patient safety and security system for at-home patients. This company sold to GE Medical. Most recently,
he has been VP Business Development for Primus Green Energy, a subsidiary of Israel Corporation that has developed a proprietary
process for the production of gasoline from natural gas. University of Pennsylvania, BA, Geology and Environmental Science,
University of Chicago, Ph.D, Geophysical Sciences.

 

Jerry C. Ruddle. President and
Chief Operating Officer, Director. With over 18 years experience at Hewlett-Packard Medical Products, Mr. Ruddle served in progressive
management positions leading to National Sales Manager. He led sales, marketing, channel and new business launch teams of up to
300 professionals for a wide range of medical devices and diagnostics sold to both hospital and non-hospital markets. In recent
years, he has served in senior executive positions in several venture-backed technology companies including Graphco Technologies
(President and COO), Iridian Technologies (EVP) (sold to L-1 Identity Solutions (NYSE: ID)), and Advanced Cerametrics (EVP and
GM), delivering innovations in the biometric security, advanced materials and energy harvesting markets. Most recently he served
as Chief Development Officer at American Hospital Services Group, a leading healthcare services company, which was successfully
acquired and merged. Duke University Pratt School of Engineering, BSE Biomedical Engineering; University of North
Carolina, Kenan-Flagler Business School, MBA, Industrial Marketing and Finance. 

 

    	 	13	 

     

    

 

John R. Toedtman. Board Chairman.
In over 40 years of business experience Mr. Toedtman has held senior management positions, as Group VP of the Metallurgical Group
at Engelhard Industries, a Fortune 100 company, and as President and CEO of a number of early stage companies in the diagnostic
and medical device fields. He has been on the board of 7 public companies including Vital Signs, Inc. and a number of private
companies, and brings substantial experience in M&A, technology transfer and corporate strategy. He was a Managing Director
at Bluestone Capital and is presently a Senior Advisor at Griffin Securities. Georgetown University, BA Economics, Georgetown
University, MA, International Economics. 

 

Joerg H. Klaube. Chief Financial
Officer(Interim). A financial professional with a broad range of career appointments in corporate financial management and controllership,
treasury and administrative functions, in a variety of business environments including publicly held companies. He served as chief
financial officer for software design and computer marketing firms Magnitude Information Systems Inc., Shareronix Corporation
and Comar Technologies Inc. and the telecommunications holding company E. Oliver Capital Group. Before that, he was employed for
sixteen years with the U.S. subsidiary of Siemens AG, where lastly he served as Director of Business Administration in the Telecommunications
Division. He graduated from the Banking School in Berlin, Germany, and holds a Masters in Business Administration degree
from Rutgers University.

 

Use of Proceeds

	Gross Proceeds	 	$	 	 
	 	 	 	 	 
	Final Production Engineering	 	$	 	 
	FDA Data & Submission	 	$	 	 
	Sales & Marketing	 	$	 	 
	Working Capital	 	$	 	 
	Deal Expenses	 	$	 	 
	 	 	 	 	 
	Total	 	$	 	 

 

Potential investors in this Private Offering
should not solely rely upon the foregoing summaries of PMI but should review for themselves the attached financial statements
and accompanying business information.

 

    	 	14	 

     

    

 

Summary Financial Forecast

Projected Four-Year Financials

 

	($000)	 	2014	 	2015*	 	2016	 	2017	 
	Revenue	 	 	 	 	 	 	 	 	 
	GP	 		 		 		 		 
	EBITDA	 	 	 	 	 	 	 	 	 

 

Extraordinary Opportunity.

 

While directly marketing to the non-hospital
segments, PMI’s strategy also calls for the licensing and /or private label manufacturing of our pump and disposable technology
to one or more major medical device companies that dominate the large hospital segment in the U.S. and many foreign markets. The
combination of licensing fees, royalties and product revenues from such agreements could be material or even substantial. Such
income is not included in the above forecast.

 

PMI’s Authorized Common Shares. As of _______, there were _______ shares of PMI common stock authorized, with _______ shares issued and outstanding. In
addition, there were outstanding warrants with a total of _______ underlying common shares.

 

Following consummation of this Private
Placement Offering, if all _______ Shares are subscribed for, there would be _______ shares outstanding, assuming that no conversions
or exercises of any outstanding PMI common share equivalents took place.

 

Private Offering Terms.
We are offering up to _______Shares at the price of $_______ per Share, to select accredited investors on a “best efforts”
basis. This means that once we accept an investor’s Subscription Agreement, his or her subscription funds will be released
to the Company and applied for the intended purposes: please see, “Use of Proceeds” at Page 12 above. We shall continue
to accept Subscription Agreements from investors until the earlier of (a) having sold ___ Shares in this Private Offering and
received gross proceeds of $_______ or (b) _______, our Private Offering “Termination Date”, which date may be extended
by us for up to 60 days.

 

    	 	15	 

     

    

 

Contractual Provisions

 

The undersigned ("Subscriber")
desires to purchase the number of Shares set forth on the signature page of this Agreement (the "Agreement"). Accordingly,
the Company and Subscriber agree as follows:

 

1. Sale and Purchase. Subject to
the terms and conditions set forth in this Private Placement Offering, Subscription Agreement Disclosure Document, Subscriber
hereby tenders the amount set forth on the signature page of this Agreement for the purchase of the number of Shares set forth
on said signature page.

 

2. Representations, Warranties, and
Agreements of Subscriber. In connection with this subscription, Subscriber hereby makes the following representations, warranties,
and agreements and confirms the following understandings, each of which are made or confirmed, as the case may be, with respect
to Shares subscribed for herein:

 

(a) Investment Purpose. Subscriber is acquiring Shares
for Subscriber's own account and for investment purposes only.

 

(b) Review and Evaluation of Information
Regarding the Company. The Subscriber has reviewed and is familiar with the disclosures contained in (i) this Private Placement
Offering, Subscription Agreement and Disclosure Document, (ii) the Business Information documents attached hereto as Exhibit A,
and (iii) the Company’s financial statements, a copy of which is attached hereto as Exhibit B. The Subscriber acknowledges
and agrees that the offer and sale of the Shares is being made by means of and in reliance upon the representations made by the
Company in Section 6 of this Private Placement Offering, Subscription Agreement and Disclosure Document only and not based upon
any other representation or statement contained in any business plan (including any Exhibit hereto), projection, or any other
document. The Subscriber also acknowledges that Subscriber has conducted, or has been afforded the opportunity to conduct, an
investigation of the Company and has been offered the opportunity to ask representatives of the Company questions about the Company’s
financial condition and proposed business and that Subscriber has obtained such available information as Subscriber has requested,
to the extent Subscriber has deemed necessary, to permit Subscriber to fully evaluate the merits and risks of an investment in
the Company. Representatives of the Company have answered all inquiries that Subscriber has put to them concerning the Company,
its activities and the offering and sale of the Shares.

 

(c) Risks. Subscriber recognizes
that the purchase of the Shares involves a high degree of risk and is suitable only for persons of adequate financial means who
have no need for liquidity in this investment in that (i) Subscriber may not be able to liquidate the investment in the event
of an emergency; (ii) transferability is extremely limited; and (iii) in the event of a disposition, Subscriber could sustain
a complete loss of his or her entire investment.

 

(d) Subscriber's Financial Experience.
Subscriber is sufficiently experienced in financial and business matters to be capable of evaluating the merits and risks
of an investment in the Company or, if he or she has utilized the services of a purchaser representative, together with such representative,
are sufficiently experienced in financial and business matters to be capable of evaluating the merits and risks of an investment
in the Company.

 

    	 	16	 

     

    

 

(e) Suitability of Investment. Subscriber
has evaluated the merits and risks of Subscriber's proposed investment in the Company, including those risks particular to Subscriber's
situation, and has determined that this investment is suitable for Subscriber. Subscriber has adequate financial resources for
an investment of this character, and at this time Subscriber can bear a complete loss of Subscriber's investment. Further, Subscriber
will continue to have, after making an investment in Shares, adequate means of providing for Subscriber's current needs, the needs
of those dependent on Subscriber, and possible personal contingencies.

 

(f) Exempt Offering – Shares
are “Restricted Securities”. Subscriber understands that the sale of Shares is not being registered pursuant to
the Securities Act of 1933, as amended (the “Securities Act”) on the basis of claimed exemptions from registration
under the Securities Act and applicable state securities laws, and the rules and regulations promulgated thereunder, and that
reliance on such exemptions are predicated, in part, on Subscriber's representations and warranties contained in this Agreement.
Subscriber further understands that the shares offered hereby are deemed “restricted securities” as such term is defined
in Rule 74 promulgated under the Securities Act and that the certificate evidencing the securities offered hereby shall bear a
legend in substantially the following form:

 

“THE SHARES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE
SECURITIES LAWS. THE SHARES MAY NOT BE PLEDGED, HYPOTHECATED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT
ANY SUCH PROPOSED PLEDGE, HYPOTHECATION, SALE OR TRANSFER IS EXEMPT FROM SUCH REGISTRATION UNDER THE SECURITIES ACT AND APPLICABLE
STATE SECURITIES LAWS.”

 

(g) Limitations on Disposition. Subscriber
understands that there are substantial restrictions on the transferability of the securities represented by the Shares pursuant
to the Securities Act; the these securities will not be registered under the Securities Act; and, accordingly, Subscriber may
have to hold the securities represented by the Shares for an indefinite period of time. Subscriber represents that Subscriber
can afford to hold the securities represented by the Shares for an indefinite period of time.

 

(h) Absence of Official Evaluation.
Subscriber understands that no federal or state agency has made any finding or determination as to the fairness of the terms
of an investment in the Company, or any recommendation for or endorsement of the Shares offered hereby.

 

(i) Additional Financing. Subscriber
further acknowledges that nothing hereunder shall preclude the Company from seeking and/or procuring additional equity and/or
debt financing. Subscriber understands and accepts that his ownership interest in the Company will be diluted under any such additional
financing.

 

(j) Non-Reliance. Subscriber is
not relying on the Company or any representation contained herein with respect to the tax and economic effect of Subscriber's
investment in the Company.

 

    	 	17	 

     

    

 

(k) Acceptance. Subscriber acknowledges
that the Company shall, in its sole discretion, have the right to accept or reject this subscription, in whole or in part, for
any reason or for no reason. If Subscriber’s subscription is accepted by the Company, Subscriber shall, and Subscriber hereby
elects to, execute any and all further documents necessary in the opinion of the Company to complete his subscription and become
an investor.

 

(l) Authority to Enter into Agreement.
Subscriber has the full right, power, and authority to execute and deliver this Agreement and perform Subscriber's obligations
hereunder.

 

(m) Entity as a Subscriber. If
Subscriber is a corporation, partnership, trust, or other entity, (i) Subscriber is authorized and qualified to become a shareholder
in the Company and is authorized to, make its investment in the Company; (ii) Subscriber has not been formed for the purpose of
acquiring an interest in the Company; (iii) Subscriber has not been in existence for less than 90 days prior to the date hereof;
and (iv) the person signing this Agreement on behalf of such entity has been duly authorized by such entity to do so.

 

(n) Prohibitions on Cancellation, Termination,
Revocation, Transferability, and Assignment. Subscriber hereby acknowledges and agrees that, except as may be specifically
provided herein or by applicable law, Subscriber is not entitled to cancel, terminate, or revoke this Agreement, and this Agreement
shall survive Subscriber's death or disability or any permitted assignment of Shares. Subscriber further agrees that Subscriber
may not transfer or assign Subscriber's rights under this Agreement, and Subscriber understands that, if Subscriber's subscription
is accepted, the transferability of the Shares will be restricted.

 

(o) Obligation. This Agreement
constitutes a valid and legally binding obligation of Subscriber and neither the execution of this Agreement nor the consummation
of the transactions contemplated herein will constitute a violation of or default under, or conflict with, any judgment, decree,
statute or regulation of any governmental authority applicable to Subscriber, or any contract, commitment, agreement, or restriction
of any kind to which Subscriber is a party or by which Subscriber's assets are bound. The execution and delivery of this Agreement
does not, and the consummation of the transactions described herein will not, violate applicable laws, or any mortgage, lien,
agreement, indenture, lease or understanding (whether oral or written) of any kind outstanding relative to Subscriber.

 

(p) Required Approvals. No approval,
authorization, consent, order, or other action of, or filing with, any person, firm or corporation or any court, administrative
agency or other governmental authority is required in connection with the execution and delivery of this Agreement by Subscriber
or the purchase of the Shares.

 

(q) No General Solicitation. Subscriber
is not subscribing for Shares because of or following any advertisement, article, notice, or other communication published in
any newspaper, magazine or similar media or broadcast over television or radio, or presented at any seminar or meeting, or any
solicitation or a subscription by a person other than an authorized representative of the Company.

 

3. Representations, Warranties and
Agreements of the Company. In connection with this subscription, the Company makes the following representations, warranties
and agreements and confirms the following understandings:

 

    	 	18	 

     

    

 

(a) Company's Good Standing. The
Company is a corporation organized and validly existing under the laws of the State of New Jersey, and it has all corporate authority
and power to conduct its business and to own its properties.

 

(b) Legal and Other Proceedings. Neither
the Company, nor any of its affiliates or its officers is a party to any pending or, to the best knowledge of the Company, threatened,
or unasserted but considered by it to be probable of assertion, claim, action, suit, investigation, arbitration or proceeding,
or is subject to any order, judgment or decree that is reasonably expected by management of the Company to have, either individually
or in the aggregate, a material adverse effect on the condition (financial or otherwise), earnings or results of operations of
the Company. The Company is not, as of the date hereof, a party to or subject to any enforcement action instituted by, or any
agreement or memorandum of understanding with, any federal or state regulatory authority restricting its operations or requiring
that actions be taken, and no such regulatory authority has threatened any such action, memorandum or order against the Company
and the Company has not received any report of examination from any federal or state regulatory agency which requires that the
Company address any problem or take any action which has not already been addressed or taken in a manner satisfactory to the regulatory
agency.

 

(c) Authorization; Conflict; Valid
and Binding Obligation. This Agreement and the transactions contemplated herein have been duly and validly authorized by all
requisite corporate action of the Company. The Company has full right, power and capacity to execute, deliver and perform its
obligations under this Agreement. No governmental license, permit or authorization and no registration or filings with any court,
governmental authority or regulatory agency is required in connection with the Company's execution, delivery and/or performance
of this Agreement, other than any filings required by applicable federal and state securities laws. The execution, delivery and
performance of this Agreement, the consummation of the transactions herein contemplated and the compliance with the terms of this
Agreement by the Company will not violate or conflict with any provision of the Certificate of Incorporation or its By Laws, or
any agreement, instrument, law or regulation to which the Company is a party or by which the Company may be bound. This Agreement,
upon execution and delivery by the Company, will represent the valid and binding obligation of the Company enforceable in accordance
with its terms.

 

4. Survival of Representations, Warranties,
Agreements and Acknowledgments. The representations, warranties, agreements, and acknowledgments of the Company and Subscriber
shall survive the offering and purchase of Shares.

 

5. Indemnification of the Company.
Subscriber agrees to indemnify and hold harmless the Company against and in respect of any and all loss, liability, claim,
damage, deficiency, and all actions, suits, proceedings, demands, assessments, judgments, costs and expenses whatsoever (including,
but not limited to, attorneys' fees reasonably incurred in investigating, preparing, or defending against any litigation commenced
or threatened or any claim whatsoever through all appeals) arising out of or based upon any false representation or warranty or
breach or failure by Subscriber to comply with any covenant or agreement made by him, her or it herein or in any other document
furnished by it in connection with this subscription.

 

    	 	19	 

     

    

 

Risk Factors

 

6. Risk Factors. Any investment
in our securities involves a high degree of risk. You should consider carefully the following information contained in
this Subscription Agreement, before you decide to invest in our Shares. If any of the following risks actually occurs, our business,
results of operations and financial condition would likely suffer. In these circumstances, you might lose all or part of
the money you paid to invest in our Shares.

 

6.1 Forward Looking Statements.
There are disclosures contained in this Private Placement Offering, Subscription Agreement and Disclosure Document and the Exhibits
attached hereto that contain forward-looking statements. All statements, other than statements of historical fact, including,
without limitation, those with respect to the objectives, plans and strategies of the Company set forth herein or in the Exhibits
incorporated by reference herein and those preceded by or that include the words ``believes,'' ``expects,'' ``given,'' ``targets,''
``intends,'' ``anticipates, “plans,'' ``projects,'' ``forecasts'' or similar expressions, are “forward-looking statements”.
Although the Company's management believes that such forward-looking statements are reasonable, it cannot guarantee that such
expectations are, or will be, correct. These forward-looking statements involve a number of risks and uncertainties, which could
cause the Company's future results to differ materially from those anticipated. The Company assumes no obligation to update any
of the information contained or referenced in this Private Placement Offering, Subscription Agreement Disclosure Document and
in the Exhibits incorporated by reference herein beyond the date hereof.

 

6.2 Limited Operating History.
Our future development hinges to a significant degree upon market acceptance of a new generation of pumps under development
for which there exists no operating history so far. You should evaluate the likelihood of the Company’s financial and operational
success in light of the significant uncertainties and complexities present with a smaller company with limited resources, many
of which are beyond our control, including, without limitation:

 

- the Company’s
potential inability to successfully complete development and bring to market its new generation of infusion pumps, in the highly
competitive medical devices marketplace;

 

- the Company’s
inability to retain qualified personnel;

 

- the Company’s
inability to effectively manage its business relationships with customers, and strategic partners; and

 

		-	The Company’s inability to
                                         attain FDA approval for the newly designed pump

 

If our business becomes subject to any
one or more of the above negative conditions, our business, financial condition and results of operations could be subject to
materially adverse consequences and potential investors could lose their entire investment.

 

6.3 Business
Prospects and Potential Growth. Our success shall depend to a significant degree upon the economic and other business conditions
affecting the market in which we operate. Our ability to grow our business will be subject to those risks inherent to business
expansion: availability of a sufficient number of qualified personnel, adequate information technology, equipment and financial
controls to support such growth. If there is any decrease in the demand for our products and services any such deficiency could
have a material, adverse affect on such business, financial condition, results of operations and cash flows, and, thereby, have
a corresponding material adverse impact on our business, assets and financial condition.

 

    	 	20	 

     

    

 

6.4 No Public or Other Market currently
exists for our Common Stock. There is currently no public or other market for our Common Stock offered in our Private Offering.
In addition to the transfer restrictions set forth above and elsewhere in this Subscription Agreement, your investment in our
securities is a very illiquid investment and you may not be able to offer to sell or sell our shares of Common Stock in any marketplace,
or if at all, at prices comparable to the price paid for them. Potential investors should be able to bear the risk of an investment
in our Shares for an indefinite period of time.

 

6.5 The Subscription Price for our
Shares was not based upon any Recognizable Measure of Value. We arbitrarily determined the purchase price for our Shares offered
hereby. There is no economic relationship between the offering price of our Shares and any component of our financial condition,
our assets, the book value of such assets or earnings.

 

6.6 There is no guarantee that the
patent applications that we have filed will in fact issue, or if issued, will contain claim language we have sought. Furthermore,
if our patents issue, others may challenge our patents on the basis of infringement, derivation, or other alleged deficiencies.

 

FOR ALL OF THE AFORESAID REASONS, AND OTHERS, INCLUDING
THOSE SET FORTH HEREIN, THESE SHARES OF INVOLVE A HIGH DEGREE OF RISK. ANY PERSON CONSIDERING AN INVESTMENT IN OUR SHARES OFFERED
HEREBY SHOULD BE AWARE OF THESE AND OTHER FACTORS SET FORTH IN THIS PRIVATE PLACEMENT OFFERING, SUBSCRIPTION AGREEMENT DISCLOSURE
DOCUMENT AND THE EXHIBITS ATTACHED HERETO, SOME OF WHICH ARE INCORPORATED HEREIN BY REFERENCE. THESE SHARES SHOULD ONLY BE PURCHASED
BY PERSONS WHO CAN AFFORD A TOTAL LOSS OF THEIR INVESTMENT IN THE COMPANY AND HAVE NO IMMEDIATE NEED FOR A RETURN ON THEIR INVESTMENT.

 

7. Miscellaneous.

 

(a) Entire Agreement. This Agreement
constitutes the entire agreement between the parties hereto, and supersedes all prior negotiations, letters and understandings
relating to the subject matter hereof.

 

(b) Amendments. This Agreement
may not be amended, supplemented, or modified in whole or in part except by an instrument in writing signed by the party or parties
against whom enforcement of any such amendment, supplement, or modification is sought.

 

(c) Notices. Any notice, demand,
or other communication that any party hereto may be required, or may elect, to give to anyone interested hereunder shall be deemed
given on the date initially received if delivered by facsimile transmission followed by registered or certified mail confirmation;
on the date delivered by an overnight courier service; on the third business day after it is mailed if mailed by registered or
certified mail (return receipt requested, with postage and other fees prepaid) addressed to such addresses as provided herein.

 

    	 	21	 

     

    

 

(d) Successors and Assigns. Except
as otherwise provided herein, this Agreement shall be binding upon and inure to Subscriber’s benefit and the benefit of
Subscriber’s heirs, executors, administrators, successors, legal representatives, and permitted assigns. If the undersigned
is more than one person, the obligation of the undersigned shall be joint and several and the agreements, representations, warranties,
and acknowledgements herein contained shall be deemed to be made by and be binding upon each such person and his heirs, executors,
successors, administrators, legal representatives, and permitted assigns.

 

(e) Choice of Law; Venue. This
Agreement will be interpreted, construed, and enforced in accordance with the laws of the State of New Jersey, without giving
effect to the application of the principles pertaining to conflicts of laws. Any proceeding arising between the parties in any
manner pertaining or relating to this Agreement shall, to the extent permitted by law, be held in New Jersey.

 

(f) Effect of Waiver. The failure
of any party at any time or times to require performance of any provision of this Agreement will in no manner affect the right
to enforce the same. The waiver by any party of any breach of any provision of this Agreement will not be construed to be a waiver
by any such party of any succeeding breach of that provision or a waiver by such party of any breach of any other provision.

 

(g) Severability. The invalidity,
illegality, or unenforceability of any provision or provisions of this Agreement will not affect any other provision of this Agreement,
which will remain in full force and effect, nor will the invalidity, illegality, or unenforceability of a portion of any provision
of this Agreement affect the balance of such provision. In the event that any one or more of the provisions contained in this
Agreement or any portion thereof shall for any reason be held to be invalid, illegal, or unenforceable in any respect, this Agreement
shall be reformed, construed, and enforced as if such invalid, illegal, or unenforceable provision had never been contained herein.

 

(h) Enforcement. Should it become
necessary for any party to institute legal action to enforce this Agreement, the successful party will be awarded reasonable attorneys'
fees at all trial and appellate levels, expenses, and costs.

 

(i) Counterparts. This Agreement
may be executed in one or more counterparts, each of which will be deemed an original and all of which together will constitute
one and the same instrument.

 

(j) Further Assurances. The parties
hereto will execute and deliver such further instruments and do such further acts and things as may be reasonably required to
carry out the intent and purposes of this Agreement.

 

[SIGNATURES ON THE FOLLOWING PAGE]

 

    	 	22	 

     

    

 

POINT MEDICAL, INC.

SUBSCRIPTION AGREEMENT

SIGNATURE PAGE FOR INDIVIDUALS

 

IN WITNESS WHEREOF, the undersigned has caused this
Agreement to be executed as of the ____ day of ___________________, _______.

 

Total Number of Shares Subscribed for: _______ Share(s)

 

Total Purchase Price ($__X ____________________ Share(s) =
$_________________

 

	________________________________	 	________________________________
	(Signature of Subscriber)	 	(Signature of Spouse or Joint Tenant, If Any)
	________________________________	 	________________________________
	(Print Name of Subscriber)	 	(Print Name of Spouse or Joint Tenant, If Any)
	________________________________	 	________________________________
	 	 	 
	________________________________	 	________________________________
	(Address) 	 	(Address)
	____________________	 	________________________________
	(Telephone Number)	 	(Telephone Number)
	____________________	 	________________________________
	(Social Security Number)	 	(Social Security Number)
	____________________	 	________________________________
	(Date)	 	(Date)

 

Note: If two purchasers are signing, please check
the manner in which the ownership is to be legally held (the indicated manner shall be construed as if written out in full
accordance with applicable laws or regulations):

 

_________ JT TEN: As joint tenants with right of survivorship
and not as tenants in common.

 

_________ TEN COM: As tenants in common.

 

_________ TENENT: As tenants by the entireties.

 

The undersigned hereby tenders to Point
Medical, Inc. the amount above for the number of Shares indicated and subscribed for. Wire transfer information is set forth at
Page 2 above. Checks should be made payable to: “Point Medical, Inc.,” and sent, together with the appropriate
signed Subscription Agreement Pages (2 Copies), the signed Purchaser Questionnaire to: Point Medical, Inc., 665 Martinsville Road,
Ste. 219, Basking Ridge, New Jersey 07920. Fax: 908-604-9077. Telephone: 908-350-7660.

 

APPROVED AND ACCEPTED BY POINT MEDICAL,
INC. in accordance with the terms of this Subscription Agreement, on this ____ day of _________________, ___.

 

By: ___________________________________

 

    	 	23	 

     

    

 

POINT MEDICAL, INC.

SUBSCRIPTION AGREEMENT

SIGNATURE PAGE FOR CORPORATIONS, TRUSTS,
PARTNERSHIPS OR

RETIREMENT PLANS

 

IN WITNESS WHEREOF, the undersigned has caused this
Agreement to be executed as of the ____ day of ___________________, ___.

 

Total Number of Shares Subscribed for: __________________
Share(s)

Total Purchase Price ($__ per Share): $____________________

 

________________________________

(Signature of Subscriber)

_______________________________

(Print Name of Subscriber)

_______________________________

 

_______________________________

(Address)

_______________________________

(Telephone Number)

_______________________________

(Social Security Number)

_______________________________

(Date)

_______________________________

(Federal Employer Identification Number or Other Tax Identification
Number)

 

The undersigned hereby tenders to Point
Medical, Inc. the amount above for the number of Shares indicated and subscribed for. Wire transfer information is set forth at
Page 2 above. Checks should be made payable to: “Point Medical, Inc.,” and sent, together with the appropriate
signed Subscription Agreement Pages (2 Copies), the signed Purchaser Questionnaire to: Point Medical, Inc., 665 Martinsville Road,
Ste. 219, Basking Ridge, New Jersey 07920. Fax: 908-604-9077. Telephone: 908-350-7660.

 

APPROVED AND ACCEPTED BY POINT MEDICAL,
INC. in accordance with the terms of this Subscription Agreement, on this ____ day of _________________, ___.

 

By: ___________________________________

 

    	 	24Document A102TM – 2007

  

Standard Form of Agreement Between Owner and Contractor
where the basis of payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price 

	 	 	 
	AGREEMENT made as of the 22nd day of September in the year 2015

 (In words, indicate day, month and year.)	 	

ADDITIONS AND DELETIONS:

The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An Additions and Deletions Report that notes added information as well as revisions to the standard form text is available from the author and should be reviewed. A vertical line in the left margin of this document indicates where the author has added necessary information and where the author has added to or deleted from the original AIA text.

This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification.

This document is not intended for use in competitive bidding.

AIA Document A201 TM–2007, General Conditions of the Contract for Construction, is adopted in this document by reference. Do not use with other general conditions unless this document is modified.
	 	 
	BETWEEN the Owner:

 (Name, legal status, address and other information)	 
	 	 
	Aqua Metals Reno, Inc.

 1010 Atlantic Avenue

 Alameda, California 94501	 
	 	 
	and the Contractor:

 (Name, legal status, address and other information)	 
	 	 
	Miles Construction

 61 Industrial Parkway

 Carson City, Nevada 89706	 
	 	 
	for the following Project:

 (Name, location and detailed description)	 
	 	 
	Aqua Metals Reno

 2500 Peru Drive

 Reno, Nevada 89434	 
	 	 
	The Architect:

 (Name, legal status, address and other information)	 
	 	 
	Tectonics Design Group

 10451 Double R Blvd.

 Reno, Nevada 89521	 
	

The Owner and Contractor agree as follows.	 
	 	 
	In
general, Owner shall administer the Contract with the assistance of Architect when requested by Owner, and Architect shall provide
support to Owner and shall be responsible for Change Orders, Drawings and Specifications and other documents drafted by Architect.
To the extent there are inconstancies with the foregoing in this Agreement, later provisions of this Agreement shall be interpreted
in light of the foregoing. 
	 

	 	 	 	 
	Init.

    

    /	AIA Document A102TM – 2007 (formerly A111TM – 1997).
    Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of
    Architects. All rights reserved. WARNING: This AIA® Document is protected by U.S. Copyright Law and
    International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it,
    may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This
    document was produced by AIA software at 10:08:46 on 09/25/2015 under Order No.3020359096_1 which expires on 06/20/2016, and
    is not for resale.	1
	 	User Notes:	(1498564921)     

	 

 

    	 

    	 

    
 

TABLE OF ARTICLES 

	 	 
	1	THE CONTRACT DOCUMENTS
	 	 
	2	THE WORK OF THIS CONTRACT
	 	 
	3	RELATIONSHIP OF THE PARTIES
	 	 
	4	DATE OF COMMENCEMENT AND SUBSTANTIAL COMPLETION
	 	 
	5	CONTRACT SUM
	 	 
	6	CHANGES IN THE WORK
	 	 
	7	COSTS TO BE REIMBURSED
	 	 
	8	COSTS NOT TO BE REIMBURSED
	 	 
	9	DISCOUNTS, REBATES AND REFUNDS
	 	 
	10	SUBCONTRACTS AND OTHER AGREEMENTS
	 	 
	11	ACCOUNTING RECORDS
	 	 
	12	PAYMENTS
	 	 
	13	DISPUTE RESOLUTION
	 	 
	14	TERMINATION OR SUSPENSION
	 	 
	15	MISCELLANEOUS PROVISIONS
	 	 
	16	ENUMERATION OF CONTRACT DOCUMENTS
	 	 
	17	INSURANCE AND BONDS

 

ARTICLE 1     THE CONTRACT DOCUMENTS 

The Contract Documents consist of this Agreement, Conditions
of the Contract (General, Supplementary and other Conditions), Drawings and Specifications, listed on Exhibit C other documents
listed in this Agreement and Modifications issued after execution of this Agreement, all of which form the Contract, and are as
fully a part of the Contract as if attached to this Agreement or repeated herein. The Contract represents the entire and integrated
agreement between the parties hereto and supersedes prior negotiations, representations or agreements, either written or oral.
If anything in the other Contract Documents, other than a Modification, is inconsistent with this Agreement, this Agreement shall
govern.

 

The parties hereto acknowledge and agree that this Project
is being built on a “fast track” basis. Specifically, as of the time of the Commencement of Construction and execution
of the Agreement, Owner has not yet completed the plans and specifications for the Project. Further, the parties agree that there
are several material outstanding design issues (including, but not limited to, the applications of certain building codes and
requirements – such as fire codes and requirements) that have not been finalized. The parties acknowledge and agree that the Guaranteed
Maximum Price (“GMP”) and the proposed Construction Schedule are based on the current set of incomplete plans and
specifications. The parties hereby acknowledge and agree that the current GMP, Construction Schedule, and Completion Date are
based on the current set of incomplete plans and specifications and that if there are any material changes to the plans and specifications
or delays in finalizing the plans and specifications, the parties will, in good faith, negotiate commensurate applicable modifications
to the GMP, Construction Schedule, Completion Date, and other applicable Contract Document requirements. 

	 	 	 	 
	Init.

    

    /	AIA Document A102TM – 2007 (formerly A111TM – 1997).
    Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of
    Architects. All rights reserved. WARNING: This AIA® Document is protected by U.S. Copyright Law and
    International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it,
    may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This
    document was produced by AIA software at 10:08:46 on 09/25/2015 under Order No.3020359096_1 which expires on 06/20/2016, and
    is not for resale.	2
	 	User Notes:	(1498564921)     

	 

 

    	 

    	 

    
 

Notwithstanding the foregoing, Contractor acknowledges that
Owner intends for the Contract Sum not to exceed the GMP and efforts to finalize the plans and specifications shall be made so
that the GMP is not increased. Contractor should expect that to the extent certain portions of the final plans and specifications
result in greater line items costs than currently budgeted, Owner will be making changes in other line items to reduce costs on
other aspects of the Project so as not to exceed the GMP. Contractor shall work with Owner to maintain the GMP.

 

ARTICLE 2     THE WORK OF THIS CONTRACT 

The Contractor shall fully execute the Work described in the
Contract Documents, except as specifically indicated in the Contract Documents to be the responsibility of others.

 

ARTICLE 3     RELATIONSHIP OF THE PARTIES 

The Contractor accepts the relationship of trust and confidence
established by this Agreement and covenants with the Owner to cooperate with the Architect and exercise the Contractor’s
skill and judgment in furthering the interests of the Owner; to furnish efficient business administration and supervision; to furnish
at all times an adequate supply of workers and materials; and to perform the Work in an expeditious and economical manner consistent
with the Owner’s interests. The Owner agrees to furnish and approve, in a timely manner, information required by the Contractor
and to make payments to the Contractor in accordance with the requirements of the Contract Documents.

 

ARTICLE 4     DATE OF COMMENCEMENT AND SUBSTANTIAL COMPLETION 

§ 4.1 The date of commencement of the Work shall
be the date of this Agreement unless a different date is stated below or provision is made for the date to be fixed in a notice
to proceed issued by the Owner.

(Insert the date of commencement, if it differs from the date of this Agreement or, if applicable,
state that the date will be fixed in a notice to proceed.)

 

August 15, 2015.

 

If, prior to commencement of the Work, the Owner requires time
to file mortgages and other security interests, the Owner’s time requirement shall be as follows:

 

N/A

 

§ 4.2 The Contract Time shall be measured from the
date of commencement.

 

§ 4.3 The Contractor shall achieve Substantial
Completion of the entire Work not later than (     ) days from the date of commencement, or as follows: 

(Insert number of calendar days. Alternatively, a calendar
date may be used when coordinated with the date of commencement. If appropriate, insert requirements for earlier Substantial Completion
of certain portions of the Work.)

 

Anticipated construction time frame of 8 months, a detailed
construction schedule to be provided within 10 working days of the completed construction documents.

 

          Portion
of Work                                        Substantial
Completion date

 

, subject to adjustments of this Contract Time as provided in
the Contract Documents.

 

(Insert provisions, if any, for liquidated damages relating
to failure to achieve Substantial Completion on time, or for bonus payments for early completion of the Work.)

 

N/A

 

ARTICLE 5     CONTRACT SUM 

§ 5.1 The Owner shall pay the Contractor the Contract
Sum in current funds for the Contractor’s performance of the Contract. The Contract Sum is the Cost of the Work as defined
in Article 7 plus the Contractor’s Fee. 

	 	 	 	 
	Init.

    

    /	AIA Document A102TM – 2007 (formerly A111TM – 1997).
    Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of
    Architects. All rights reserved. WARNING: This AIA® Document is protected by U.S. Copyright Law and
    International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it,
    may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This
    document was produced by AIA software at 10:08:46 on 09/25/2015 under Order No.3020359096_1 which expires on 06/20/2016, and
    is not for resale.	3
	 	User Notes:	(1498564921)     

	 

 

    	 

    	 

    
 

§ 5.1.1 The Contractor’s Fee: 

(State a lump sum, percentage of Cost of the Work or other
provision for determining the Contractor’s Fee.)

 

Lump sum overhead $388,934.00, Lump sum fee $486,168.00, Percentage
of cost of the work 0.9% general liability insurance

 

§ 5.1.2 The method of adjustment of the Contractor’s
Fee for changes in the Work:

 

Percentage of Cost of the Work – 6.75% plus general liability insurance 0.9%

 

§ 5.1.3 Limitations, if any, on a Subcontractor’s
overhead and profit for increases in the cost of its portion of the Work:

 

N/A

 

§ 5.1.4 Rental rates for Contractor-owned equipment
shall not exceed one hundred percent (100%) of the standard rate paid at the place of the Project.

 

§ 5.1.5 Unit prices, if any: 

(Identify and state the unit price; state the quantity limitations,
if any, to which the unit price will be applicable.) 

	 	 	 
	Item	Units and Limitations                    	Price Per Unit ($0.00) 
	N/A	 	 

 

§ 5.2 GUARANTEED MAXIMUM PRICE 

§ 5.2.1 The Contract Sum is guaranteed by the Contractor
not to exceed Thirteen million nine hundred sixty four thousand one hundred thirty four dollars and 00/100 ($ 13,964,134.00),
subject to additions and deductions by Change Order as provided in the Contract Documents. Such maximum sum is referred to in
the Contract Documents as the Guaranteed Maximum Price. Costs which would cause the Guaranteed Maximum Price to be exceeded shall
be paid by the Contractor without reimbursement by the Owner. 

(Insert specific provisions if the Contractor is to participate
in any savings.)

 

Exhibit ‘B’ – Cost Breakdown 

An estimated cost breakdown is attached hereto as Exhibit B.
Such cost breakdown is being provided for information purposes only. This is not a line item GMP contract and the individual line
items in the Cost Breakdown do not constitute GMPs for each line items.

 

§ 5.2.2 The Guaranteed Maximum Price is based on
the following alternates, if any, which are described in the Contract Documents and are hereby accepted by the Owner: 

(State the numbers or other identification of accepted alternates.
If bidding or proposal documents permit the Owner to accept other alternates subsequent to the execution of this Agreement, attach
a schedule of such other alternates showing the amount for each and the date when the amount expires.)

 

N/A

 

§ 5.2.3 Allowances included in the Guaranteed Maximum
Price, if any: 

(Identify allowance and state exclusions, if any, from the allowance price.) 

	 	 	 
	Item	 	Price	 
	1.	 	Masonry Separation Walls
	2.	 	Fire Brick at Kettles
	3.	 	Green Wall and Sustainable Features
	4.	 	Construction Contingency
	5.	 	CMU Wainscot
	6.	 	CMU Bearing Walls
	7.	 	CMU Separation Walls - Allowance
	8.	 	Fire Brick - Allowance

	 	 	 	 
	Init.

    

    /	AIA Document A102TM – 2007 (formerly A111TM – 1997).
    Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of
    Architects. All rights reserved. WARNING: This AIA® Document is protected by U.S. Copyright Law and
    International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it,
    may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This
    document was produced by AIA software at 10:08:46 on 09/25/2015 under Order No.3020359096_1 which expires on 06/20/2016, and
    is not for resale.	4
	 	User Notes:	(1498564921)     

	 

 

    	 

    	 

    
 

§ 5.2.4 Assumptions, if any, on which the Guaranteed
Maximum Price is based:

 

Exhibit ‘A’ – Qualifications and Exclusions

 

§ 5.2.5 To the extent that the Drawings and Specifications
are anticipated to require further development by the Architect, the Contractor has provided in the Guaranteed Maximum Price for
such further development consistent with the Contract Documents and reasonably inferable therefrom. Such further development does
not include such things as changes in scope, systems, kinds and quality of materials, finishes or equipment, all of which, if required,
shall be incorporated by Change Order.

 

ARTICLE 6     CHANGES IN THE WORK 

§ 6.1 Adjustments to the Guaranteed Maximum Price
on account of changes in the Work may be determined by any of the methods listed in Section 7.3.3 of AIA Document A201–2007, General
Conditions of the Contract for Construction.

 

§ 6.2 In calculating adjustments to subcontracts
(except those awarded with the Owner’s prior consent on the basis of cost plus a fee), the terms “cost” and “fee”
as used in Section 7.3.3.3 of AIA Document A201–2007 and the term “costs” as used in Section 7.3.7 of AIA Document
A201–2007 shall have the meanings assigned to them in AIA Document A201–2007 and shall not be modified by Articles 5, 7 and 8 of
this Agreement. Adjustments to subcontracts awarded with the Owner’s prior consent on the basis of cost plus a fee shall
be calculated in accordance with the terms of those subcontracts.

 

§ 6.3 In calculating adjustments to the Guaranteed
Maximum Price, the terms “cost” and “costs” as used in the above-referenced provisions of AIA Document
A201–2007 shall mean the Cost of the Work as defined in Article 7 of this Agreement and the term “fee” shall mean the
Contractor’s Fee as defined in Section 5.1.1 of this Agreement.

 

§ 6.4 If no specific provision is made in Article
5 for adjustment of the Contractor’s Fee in the case of changes in the Work, or if the extent of such changes is such, in
the aggregate, that application of the adjustment provisions of Article 5 will cause substantial inequity to the Owner or Contractor,
the Contractor’s Fee shall be equitably adjusted on the same basis that was used to establish the Fee for the original Work,
and the Guaranteed Maximum Price shall be adjusted accordingly.

 

ARTICLE 7     COSTS TO BE REIMBURSED 

§ 7.1 COST OF THE WORK 

§ 7.1.1 The term Cost of the Work shall mean costs
necessarily incurred by the Contractor in the proper performance of the Work. Such costs shall be at rates not higher than the
standard paid at the place of the Project except with prior consent of the Owner. The Cost of the Work shall include only the items
set forth in this Article 7.

 

§ 7.1.2 Where any cost is subject to the Owner’s
prior approval, the Contractor shall obtain this approval prior to incurring the cost. The parties shall endeavor to identify any
such costs prior to executing this Agreement.

 

§ 7.2 LABOR COSTS 

§ 7.2.1 Wages of construction workers directly employed
by the Contractor to perform the construction of the Work at the site or, with the Owner’s prior approval, at off-site workshops.

 

§ 7.2.2 Wages or salaries of the Contractor’s
supervisory and administrative personnel when stationed at the site with the Owner’s prior approval. 

(If it is intended that the wages or salaries of certain
personnel stationed at the Contractor’s principal or other offices shall be included in the Cost of the Work, identify in
Article 15, the personnel to be included, whether for all or only part of their time, and the rates at which their time will be
charged to the Work.)

 

§ 7.2.3 Wages and salaries of the Contractor’s
supervisory or administrative personnel engaged at factories, workshops or on the road, in expediting the production or transportation
of materials or equipment required for the Work, but only for that portion of their time required for the Work. 

	 	 	 	 
	Init.

    

    /	AIA Document A102TM – 2007 (formerly A111TM – 1997).
    Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of
    Architects. All rights reserved. WARNING: This AIA® Document is protected by U.S. Copyright Law and
    International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it,
    may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This
    document was produced by AIA software at 10:08:46 on 09/25/2015 under Order No.3020359096_1 which expires on 06/20/2016, and
    is not for resale.	5
	 	User Notes:	(1498564921)     

	 

 

    	 

    	 

    

 

 

§ 7.2.4
Costs paid or incurred by the Contractor for taxes, insurance, contributions, assessments and benefits required by law
or collective bargaining agreements and, for personnel not covered by such agreements, customary benefits such as sick leave, medical
and health benefits, holidays, vacations and pensions, provided such costs are based on wages and salaries included in the Cost
of the Work under Sections 7.2.1 through 7.2.3.

 

§ 7.2.5 Bonuses, profit sharing, incentive compensation and any other discretionary payments paid to anyone hired by the
Contractor or paid to any Subcontractor or vendor, with the Owner’s prior approval.

 

§ 7.3 SUBCONTRACT COSTS

Payments made by the Contractor to Subcontractors in accordance
with the requirements of the subcontracts.

 

§ 7.4 COSTS OF MATERIALS AND EQUIPMENT INCORPORATED
IN THE COMPLETED CONSTRUCTION

§ 7.4.1 Costs, including transportation
and storage, of materials and equipment incorporated or to be incorporated in the completed construction.

 

§ 7.4.2 Costs
of materials described in the preceding Section 7.4.1 in excess of those actually installed to allow for reasonable
waste and spoilage. Unused excess materials, if any, shall become the Owner’s property at the completion of the Work or,
at the Owner’s option, shall be sold by the Contractor. Any amounts realized from such sales shall be credited to
the Owner as a deduction from the Cost of the Work.

 

§ 7.5 COSTS OF OTHER MATERIALS AND EQUIPMENT, TEMPORARY
FACILITIES AND RELATED ITEMS 

§ 7.5.1 Costs of transportation, storage, installation,
maintenance, dismantling and removal of materials, supplies, temporary facilities, machinery, equipment and hand tools not customarily
owned by construction workers that are provided by the Contractor at the site and fully consumed
in the performance of the Work. Costs of materials, supplies, temporary facilities,
machinery, equipment and tools that are not fully consumed shall be based on the cost or value of the item at the time it is first
used on the Project site less the value of the item when it is no longer used at the Project site. Costs for items not fully
consumed by the Contractor shall mean fair market value.

 

§ 7.5.2 Rental charges for temporary facilities,
machinery, equipment and hand tools not customarily owned by construction workers that are provided by the Contractor at the site
and costs of transportation, installation, minor repairs, dismantling and removal. The total rental cost of any Contractor-owned
item may not exceed the purchase price of any comparable item. Rates of Contractor-owned equipment
and quantities of equipment shall be subject to the Owner’s prior approval.

 

§ 7.5.3 Costs of removal of debris from the
site of the Work and its proper and legal disposal.

 

§ 7.5.4
Costs of document reproductions, facsimile transmissions and long-distance telephone calls, postage and parcel delivery
charges, telephone service at the site and reasonable petty cash expenses of the site office.

 

§ 7.5.5 Costs of materials and equipment suitably stored off the site at a mutually acceptable location, subject to the Owner’s
prior approval.

 

§ 7.6 MISCELLANEOUS COSTS 

§ 7.6.1 Premiums for that portion of insurance
and bonds required by the Contract Documents that can be directly attributed to this Contract.
Self-insurance for either full or partial amounts of the coverages required by the Contract Documents, with the Owner’s
prior approval.

 

§ 7.6.2
Sales, use or similar taxes imposed by a governmental authority that are related to the Work and for which the Contractor
is liable.

 

§ 7.6.3 Fees and assessments for the building permit and for other permits, licenses and inspections for which the Contractor
is required by the Contract Documents to pay.

 

§ 7.6.4 Fees of laboratories for tests required
by the Contract Documents, except those related to defective or nonconforming Work for which
reimbursement is excluded by Section 13.5.3 of AIA Document A201–2007 or by other provisions of the Contract Documents,
and which do not fall within the scope of Section 7.7.3.

	 	 	 	 
	Init.

    

    /	AIA Document A102TM – 2007 (formerly A111TM – 1997).
    Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of
    Architects. All rights reserved. WARNING: This AIA® Document is protected by U.S. Copyright Law and
    International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it,
    may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This
    document was produced by AIA software at 10:08:46 on 09/25/2015 under Order No.3020359096_1 which expires on 06/20/2016, and
    is not for resale.	6
	 	User Notes:	(1498564921)     

	 

 

    	 

    	 

    

 

§ 7.6.5 Royalties and license fees paid for
the use of a particular design, process or product required by the Contract Documents; the
cost of defending suits or claims for infringement of patent rights arising from such requirement of the Contract Documents;
and payments made in accordance with legal judgments against the Contractor resulting from such suits or claims and payments of
settlements made with the Owner’s consent. However, such costs of legal defenses, judgments and settlements shall not be
included in the calculation of the Contractor’s Fee or subject to the Guaranteed Maximum
Price. If such royalties, fees and costs are excluded by the last sentence of Section 3.17 of AIA Document A201–2007 or
other provisions of the Contract Documents, then they shall not be included in the Cost of the Work.

 

§ 7.6.6 Costs for electronic equipment and
software, directly related to the Work with the Owner’s prior approval.

 

§ 7.6.7 Deposits lost for causes other than
the Contractor’s negligence or failure to fulfill a specific responsibility in the Contract Documents.

 

§ 7.6.8
Legal, mediation and arbitration costs, including attorneys’ fees, other than those arising from disputes between
the Owner and Contractor, reasonably incurred by the Contractor after the execution of this Agreement in the performance
of the Work and with the Owner’s prior approval, which shall not be unreasonably withheld.

 

§ 7.6.9
Subject to the Owner’s prior approval, expenses incurred in accordance with the Contractor’s standard written personnel
policy for relocation and temporary living allowances of the Contractor’s personnel required for the Work.

 

§ 7.6.10 That
portion of the reasonable expenses of the Contractor’s supervisory or administrative personnel incurred while traveling
in discharge of duties connected with the Work.

 

§ 7.7 OTHER COSTS
AND EMERGENCIES

§ 7.7.1 Other
costs incurred in the performance of the Work if, and to the extent, approved in advance in writing by the Owner.

 

§ 7.7.2 Costs
incurred in taking action to prevent threatened damage, injury or loss in case of an emergency affecting the safety of persons
and property, as provided in Section 10.4 of AIA Document A201–2007.

 

§ 7.7.3 Costs
of repairing or correcting damaged or nonconforming Work executed by the Contractor, Subcontractors or suppliers, provided that
such damaged or nonconforming Work was not caused by negligence or failure to fulfill a specific responsibility of the Contractor
and only to the extent that the cost of repair or correction is not recovered by the Contractor from insurance, sureties,
Subcontractors, suppliers, or others.

 

§ 7.8 RELATED PARTY TRANSACTIONS

§ 7.8.1 For purposes of Section 7.8, the term “related
party” shall mean a parent, subsidiary, affiliate or other entity having common ownership or management with the Contractor;
any entity in which any stockholder in, or management employee of, the Contractor owns any
interest in excess of ten percent in the aggregate; or any person or entity which has the right to control the business
or affairs of the Contractor. The term “related party” includes any member of the immediate family of any person identified
above.

 

§ 7.8.2 If any of the costs to be reimbursed arise
from a transaction between the Contractor and a related party, the Contractor shall notify
the Owner of the specific nature of the contemplated transaction, including the identity of the related party and the anticipated
cost to be incurred, before any such transaction is consummated or cost incurred. If the Owner, after such notification,
authorizes the proposed transaction, then the cost incurred shall be included as a cost to
be reimbursed, and the Contractor shall procure the Work, equipment, goods or service from the related party, as a Subcontractor,
according to the terms of Article 10. If the Owner fails to authorize the transaction, the Contractor shall
procure the Work, equipment, goods or service from some person or entity other than a related party according to the terms
of Article 10.

	 	 	 	 
	Init.

    

    /	AIA Document A102TM – 2007 (formerly A111TM – 1997).
    Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of
    Architects. All rights reserved. WARNING: This AIA® Document is protected by U.S. Copyright Law and
    International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it,
    may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This
    document was produced by AIA software at 10:08:46 on 09/25/2015 under Order No.3020359096_1 which expires on 06/20/2016, and
    is not for resale.	7
	 	User Notes:	(1498564921)     

	 

 

    	 

    	 

    

 

ARTICLE 8     COSTS NOT TO BE REIMBURSED

§ 8.1 The Cost of the Work shall not include the
items listed below:

 

	 	.1	Salaries and other compensation of the Contractor’s personnel stationed at the Contractor’s principal office or offices other than the site office, except as specifically provided in Section 7.2. or as may be provided in Article 15;
	 	.2	Expenses of the Contractor’s principal office and offices other than the site office;
	 	.3	Overhead and general expenses, except as may be expressly included in Article 7;
	 	.4	The Contractor’s capital expenses, including interest on the Contractor’s capital employed for the Work;
	 	.5	Except as provided in Section 7.7.3 of this Agreement, costs due to the negligence or failure of the Contractor, Subcontractors and suppliers or anyone directly or indirectly employed by any of them or for whose acts any of them may be liable to fulfill a specific responsibility of the Contract;
	 	.6	Any cost not specifically and expressly described in Article 7; and
	 	.7	Costs, other than costs included in Change Orders approved by the Owner, that would cause the Guaranteed Maximum Price to be exceeded.

 

ARTICLE 9     DISCOUNTS, REBATES AND REFUNDS

§ 9.1 Cash
discounts obtained on payments made by the Contractor shall accrue to the Owner if (1) before making the payment,
the Contractor included them in an Application for Payment and received payment from the Owner, or (2) the Owner has deposited
funds with the Contractor with which to make payments; otherwise, cash discounts shall accrue
to the Contractor. Trade discounts, rebates, refunds and amounts received from sales of surplus materials and equipment
shall accrue to the Owner, and the Contractor shall make provisions so that they can be obtained.

 

§ 9.2 Amounts
that accrue to the Owner in accordance with the provisions of Section 9.1 shall be credited to the Owner as a deduction
from the Cost of the Work.

 

ARTICLE 10     SUBCONTRACTS
AND OTHER AGREEMENTS

§ 10.1 Those portions of the Work that the Contractor
does not customarily perform with the Contractor’s own personnel shall be performed
under subcontracts or by other appropriate agreements with the Contractor. The Owner may designate specific persons from
whom, or entities from which, the Contractor shall obtain bids. The Contractor shall obtain
bids from Subcontractors and from suppliers of materials or equipment fabricated especially for the Work and shall deliver such
bids to the Architect. The Owner shall then determine, with the advice of the Contractor and the Architect, which bids will
be accepted. The Contractor shall not be required to contract with anyone to whom the Contractor has reasonable objection,

 

§ 10.2 When a specific bidder (1) is recommended
to the Owner by the Contractor; (2) is qualified to perform that portion of the Work; and
(3) has submitted a bid that conforms to the requirements of the Contract Documents without reservations or exceptions, but the
Owner requires that another bid be accepted, then the Contractor may require that a Change
Order be issued to adjust the Guaranteed Maximum Price by the difference between the bid of the person or entity recommended
to the Owner by the Contractor and the amount of the subcontract or other agreement actually signed with the person or entity designated
by the Owner.

 

§ 10.3 Subcontracts
or other agreements shall conform to the applicable payment provisions of this Agreement, and shall not be awarded on the
basis of cost plus a fee without the prior consent of the Owner. If the Subcontract is awarded
on a cost-plus a fee basis, the Contractor shall provide in the Subcontract for the Owner to receive the same audit rights with
regard to the Subcontractor as the Owner receives with regard to the Contractor in Article 11, below.

 

ARTICLE 11     ACCOUNTING RECORDS

The Contractor shall keep full and detailed records and accounts
related to the cost of the Work and exercise such controls as may be necessary for proper financial management under this Contract
and to substantiate all costs incurred. The accounting and control systems shall be satisfactory
to the Owner. The Owner and the Owner’s auditors shall, during regular business
hours and upon reasonable notice, be afforded access to, and shall be permitted to audit and copy, the Contractor’s
records and accounts, including complete documentation supporting accounting entries, books, correspondence, instructions, drawings,
receipts, subcontracts, Subcontractor’s proposals, purchase orders, vouchers, memoranda
and other data relating to this Contract. The Contractor shall preserve these records for a period of three years after
final payment, or for such longer period as may be required by law.

	 	 	 	 
	Init.

    

    /	AIA Document A102TM – 2007 (formerly A111TM – 1997).
    Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of
    Architects. All rights reserved. WARNING: This AIA® Document is protected by U.S. Copyright Law and
    International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it,
    may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This
    document was produced by AIA software at 10:08:46 on 09/25/2015 under Order No.3020359096_1 which expires on 06/20/2016, and
    is not for resale.	8
	 	User Notes:	(1498564921)     

	 

 

    	 

    	 

    

 

ARTICLE 12     PAYMENTS

§ 12.1 PROGRESS PAYMENTS

§ 12.1.1 Based upon Applications for Payment submitted
to the Owner by the Contractor, the Owner shall make progress payments on account of the
Contract Sum to the Contractor as provided below and elsewhere in the Contract Documents.

 

§ 12.1.2 The
period covered by each Application for Payment shall be one calendar month ending on the last day of the month, or as follows:

 

Monthly Progress Billing Applications for Payment of Work completed
will be submitted by the contractor to the Owner on the 1st day of each month. The Owner shall pay the Contractor within thirty
(30) days of receipt of the application for payment, 5% retention will be held on items, excluding the general conditions line
items and the Purchase of the Steel Building. Final payment is to be paid to the Contractor in accordance with § 12.2.4.
Line item Retainage may be reduced and/or released prior to completion at the Owner’s sole discretion

 

§ 12.1.3 Provided
that an Application for Payment is received by the Owner not later than the 1st day of a month, the Owner
shall make payment of the certified amount to the Contractor not later than the 1st day of the following month.
If an Application for Payment is received by the Owner after the application date fixed above, payment shall be made
by the Owner not later than thirty (30) days after the Owner receives the Application for Payment. (Federal, state
or local laws may require payment within a certain period of time.)

 

§ 12.1.4 With each Application for Payment, the
Contractor shall submit payrolls, petty cash accounts, receipted invoices or invoices with check vouchers attached, and any other
evidence required by the Owner or Architect to demonstrate that cash disbursements already made by the Contractor on account of
the Cost of the Work equal or exceed (1) progress payments already received by the Contractor; less (2) that portion of those payments
attributable to the Contractor’s Fee; plus (3) payrolls for the period covered by the
present Application for Payment.

 

§ 12.1.5 Each Application for Payment shall be based
on the most recent schedule of values submitted by the Contractor in accordance with the Contract Documents. The schedule of values
shall allocate the entire Guaranteed Maximum Price among the various portions of the Work,
except that the Contractor’s Fee shall be shown as a single separate item. The schedule of values shall be prepared
in such form and supported by such data to substantiate its accuracy as the Owner may require. This schedule, unless objected to
by the Owner, shall be used as a basis for reviewing the Contractor’s Applications for Payment.

 

§ 12.1.6 Applications
for Payment shall show the percentage of completion of each portion of the Work as of the end of the period covered by the
Application for Payment. The percentage of completion shall be the lesser of (1) the percentage
of that portion of the Work which has actually been completed; or (2) the percentage obtained by dividing (a) the expense that
has actually been incurred by the Contractor on account of that portion of the Work for which the Contractor has made or intends
to make actual payment prior to the next Application for Payment by (b) the share of the Guaranteed Maximum Price allocated
to that portion of the Work in the schedule of values.

 

§ 12.1.7 Subject
to other provisions of the Contract Documents, the amount of each progress payment shall be computed as follows:

	 	 	 
	 	.1	Take that portion of the Guaranteed Maximum Price properly allocable to completed Work as determined by multiplying the percentage of completion of each portion of the Work by the share of the Guaranteed Maximum Price allocated to that portion of the Work in the schedule of values. Pending final determination of cost to the Owner of changes in the Work, amounts not in dispute shall be included as provided in Section 7.3.9 of AIA Document A201–2007;
	 	.2	Add that portion of the Guaranteed Maximum Price properly allocable to materials and equipment delivered and suitably stored at the site for subsequent incorporation in the Work, or if approved in advance by the Owner, suitably stored off the site at a location agreed upon in writing;
	 	.3	Add the Contractor’s Fee, less retainage of five percent (5%). The Contractor’s Fee shall be computed upon
    the Cost of the Work at the rate stated in Section 5.1.1 or, if the Contractor’s Fee is stated as a fixed sum in that
    Section, shall be an amount that bears the same ratio to that fixed-sum fee as the Cost of the Work bears to a reasonable
    estimate of the probable Cost of the Work upon its completion. Retention may be reduced or released on a per line basis at
    the sole discretion of the owner;

	 	 	 	 
	Init.

    

    /	AIA Document A102TM – 2007 (formerly A111TM – 1997).
    Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of
    Architects. All rights reserved. WARNING: This AIA® Document is protected by U.S. Copyright Law and
    International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it,
    may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This
    document was produced by AIA software at 10:08:46 on 09/25/2015 under Order No.3020359096_1 which expires on 06/20/2016, and
    is not for resale.	9
	 	User Notes:	(1498564921)     

	 

 

    	 

    	 

    

 

	 	.4	Subtract retainage of five  percent (5%) from that portion of the Work that the Contractor self-performs;
	 	.5	Subtract the aggregate of previous payments made by the Owner;
	 	.6	Subtract the shortfall, if any, indicated by the Contractor in the documentation required by Section 12.1.4 to substantiate prior Applications for Payment, or resulting from errors subsequently discovered by the Owner’s auditors in such documentation; and
	 	.7	Subtract amounts, if any, for which the Owner has withheld or nullified a Certificate for Payment as provided in Section 9.5 of AIA Document A201–2007.

 

§ 12.1.8 The
Owner and the Contractor shall agree upon a (1) mutually acceptable procedure for review and approval of payments to Subcontractors
and (2) the percentage of retainage held on Subcontracts, and the Contractor shall execute subcontracts in accordance with those
agreements.

 

§ 12.1.9 In
taking action on the Contractor’s Applications for Payment, the Architect shall be entitled to rely on the accuracy
and completeness of the information furnished by the Contractor and shall not be deemed to represent that the Architect has made
a detailed examination, audit or arithmetic verification of the documentation submitted in accordance
with Section 12.1.4 or other supporting data; that the Architect has made exhaustive or continuous on-site inspections;
or that the Architect has made examinations to ascertain how or for what purposes the Contractor has used amounts previously
paid on account of the Contract. Such examinations, audits and verifications, if required by the Owner,
will be performed by the Owner’s auditors acting in the sole interest of the Owner.

 

§ 12.2 FINAL PAYMENT

§ 12.2.1 Final
payment, constituting the entire unpaid balance of the Contract Sum, shall be made by the Owner to the Contractor
when

	 	.1	the Contractor has fully performed the Contract except for the Contractor’s responsibility to correct Work as provided in Section 12.2.2 of AIA Document A201–2007, and to satisfy other requirements, if any, which extend beyond final payment; 
	 	.2	the Contractor has submitted a final accounting for the Cost of the Work and a final Application for Payment..3

 

§ 12.2.2 The Owner’s auditors will
review and report in writing on the Contractor’s final accounting within 30 days after delivery of the final accounting to
the Architect by the Contractor.

§ 12.2.3
If the Owner’s auditors report the Cost of the Work as substantiated by the Contractor’s final accounting to be less than claimed by the Contractor, the Contractor shall be entitled to request mediation of the disputed amount without
seeking an initial decision pursuant to Section 15.2 of A201–2007. A request for mediation shall be made by the
Contractor within 30 days after the Contractor’s delivery of Contractor’s final accounting. Failure to request mediation
within this 30-day period shall result in the substantiated amount reported by the Owner’s auditors becoming binding on the
Contractor.

§ 12.2.4 The Owner’s final payment to the
Contractor shall be made as follows:

 

Except as otherwise provided
in NRS 624.620, any money remaining unpaid for the Work is payable to the Contractor within 30 days after:

 

	 	(a)	Occupancy or use of the Work by the Owner; or
	 	(b)	The availability of Work for its intended use. The Contractor must have provided to the Owner:
	 	 	a.	A written notice of availability on or before the day on which the Contractor claims that the Work became available for use or occupancy; or
	 	 	b.	A certificate of occupancy issues by the appropriate building inspector or other authority.

 

§ 12.2.5 If,
subsequent to final payment and at the Owner’s request, the Contractor incurs costs described in Article 7 and not excluded
by Article 8 to correct defective or nonconforming Work, the Owner shall reimburse the Contractor such costs and the Contractor’s
Fee applicable thereto on the same basis as if such costs had been incurred prior to final payment, but not in excess of the Guaranteed
Maximum Price. If the Contractor has participated in savings as provided in Section 5.2,
the amount of such savings shall be recalculated and appropriate credit given to the Owner in determining the net amount
to be paid by the Owner to the Contractor.

	 	 	 	 
	Init.

    

    /	AIA Document A102TM – 2007 (formerly A111TM – 1997).
    Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of
    Architects. All rights reserved. WARNING: This AIA® Document is protected by U.S. Copyright Law and
    International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it,
    may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This
    document was produced by AIA software at 10:08:46 on 09/25/2015 under Order No.3020359096_1 which expires on 06/20/2016, and
    is not for resale.	10
	 	User Notes:	(1498564921)     

	 

 

    	 

    	 

    

 

ARTICLE 13     DISPUTE RESOLUTION

(If the parties mutually
agree, insert the name, address and other contact information of the Initial Decision Maker, if other than the Architect.)

 

N/A

 

(Paragraphs deleted)

§ 13.2 BINDING DISPUTE RESOLUTION

For any Claim subject to,
but not resolved by mediation pursuant to Section 15.3 of AIA Document A201–2007, the method of binding dispute resolution
shall be as follows:

(Check the appropriate
box. If the Owner and Contractor do not select a method of binding dispute resolution below, or do not subsequently
agree in writing to a binding dispute resolution method other than litigation, Claims will be resolved by litigation in a court
of competent jurisdiction.)

 

	 	☐	Arbitration pursuant to Section 15.4 of AIA Document A201–2007
	 	 	 
	 	☒	Litigation in a court of competent jurisdiction. THE PARTIES HEREBY UNCONDITIONALLY WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY AND ALL CLAIMS OR CAUSES OF ACTION ARISING FROM OR RELATING TO THIS AGREEMENT AND/OR THEIR RELATIONSHIP. THE PARTIES ACKNOWLEDGE THAT THEY OTHERWISE HAVE A RIGHT TO HAVE THEIR DISPUTE HEARD BY A JURY, THAT THEY HAVE HAD AN OPPORTUNITY TO CONSULT WITH INDEPENDENT COUNSEL, AND THAT THIS JURY WAIVER HAS BEEN ENTERED INTO KNOWINGLY AND VOLUNTARILY BY ALL PARTIES TO THIS AGREEMENT..
	 	 	 
	 	☐	Other (Specify)

 

ARTICLE 14     TERMINATION OR SUSPENSION

§ 14.1
Subject to the provisions of Section 14.2 below, the Contract may be terminated by the Owner or the Contractor as provided
in Article 14 of AIA Document A201–2007.

 

§ 14.2 If the Owner terminates the Contract
for cause as provided in Article 14 of AIA Document A201–2007, the amount, if any, to be paid to the Contractor under Section 14.2.4
of AIA Document A201–2007 shall not cause the Guaranteed Maximum Price to be exceeded, nor shall it exceed an amount calculated
as follows:

	 	 	 
	 	.1	Take the Cost of the Work incurred by the Contractor to the date of termination;
	 	.2	Add the Contractor’s Fee computed upon the Cost of the Work to the date of termination at the rate stated in Section 5.1.1 or, if the Contractor’s Fee is stated as a fixed sum in that Section, an amount that bears the same ratio to that fixed-sum Fee as the Cost of the Work at the time of termination bears to a reasonable estimate of the probable Cost of the Work upon its completion; and
	 	.3	Subtract the aggregate of previous payments made by the Owner.

 

§ 14.3 The Owner shall also pay the Contractor
fair compensation, either by purchase or rental at the election of the Owner, for any equipment
owned by the Contractor that the Owner elects to retain and that is not otherwise included in the
Cost of the Work under Section 14.2.1. To the extent that the Owner elects to take legal assignment of subcontracts and
purchase orders (including rental agreements), the Contractor shall, as a condition of receiving the payments referred
to in this Article 14, execute and deliver all such papers and take all such steps, including the legal assignment of
such subcontracts and other contractual rights of the Contractor, as the Owner may require for the purpose of fully vesting
in the Owner the rights and benefits of the Contractor under such subcontracts or purchase orders.

	 	 	 	 
	Init.

    

    /	AIA Document A102TM – 2007 (formerly A111TM – 1997).
    Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of
    Architects. All rights reserved. WARNING: This AIA® Document is protected by U.S. Copyright Law and
    International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it,
    may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This
    document was produced by AIA software at 10:08:46 on 09/25/2015 under Order No.3020359096_1 which expires on 06/20/2016, and
    is not for resale.	11
	 	User Notes:	(1498564921)     

	 

 

    	 

    	 

    

 

§ 14.4 The Work may be suspended by the Owner as provided in Article 14 of AIA Document A201–2007; in such case, the Guaranteed
Maximum Price and Contract Time shall be increased as provided in Section 14.3.2 of AIA Document A201–2007, except that the term
“profit” shall be understood to mean the Contractor’s Fee as described in Sections 5.1.1 and Section 6.4 of this
Agreement.

 

ARTICLE 15     MISCELLANEOUS PROVISIONS

§ 15.1 Where reference is made in this Agreement
to a provision of AIA Document A201–2007 or another Contract Document, the reference refers to that provision as amended or supplemented
by other provisions of the Contract Documents.

 

§ 15.2 Payments
due and unpaid under the Contract shall bear interest from the date payment is due at the rate stated below, or in the absence
thereof, at the legal rate prevailing from time to time at the place where the Project is located. (Insert rate of interest
agreed upon, if any.)

 

   %

 

§ 15.3 The
Owner’s representative: 

(Name, address and
other information)

 

Thomas Murphy

Aqua Metals Reno, Inc.

1010 Atlantic Avenue 

Alameda, California 94501

 

§ 15.4 The Contractor’s representative:

(Name, address and other
information)

 

Cary Richardson

Miles Construction

61 Industrial Parkway

Carson City, Nevada 89706

 

§ 15.5 Neither
the Owner’s nor the Contractor’s representative shall be changed without ten days’ written notice to the other
party.

 

§ 15.6 Other provisions:

 

N/A

 

ARTICLE 16     ENUMERATION OF CONTRACT DOCUMENTS

§ 16.1
The Contract Documents, except for Modifications issued after execution of this Agreement, are enumerated in the
sections below.

 

§ 16.1.1 The
Agreement is this executed AIA Document A102–2007, Standard Form of Agreement Between Owner and Contractor.

 

§ 16.1.2 The
General Conditions are AIA Document A201–2007, General Conditions of the Contract for Construction.

 

§ 16.1.3 The Supplementary and other Conditions
of the Contract:

 

	Document	Title	Date	Pages

	 	 	 	 
	Init.

    

    /	AIA Document A102TM – 2007 (formerly A111TM – 1997).
    Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of
    Architects. All rights reserved. WARNING: This AIA® Document is protected by U.S. Copyright Law and
    International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it,
    may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This
    document was produced by AIA software at 10:08:46 on 09/25/2015 under Order No.3020359096_1 which expires on 06/20/2016, and
    is not for resale.	12
	 	User Notes:	(1498564921)     

	 

 

    	 

    	 

    

 

§ 16.1.4 The Specifications:

(Either list the Specifications here or refer to an exhibit
attached to this Agreement.)

N/A

 

	Section	Title	Date	Pages

 

§ 16.1.5 The Drawings:

(Either list the Drawings here or refer to an exhibit attached
to this Agreement.)

Exhibit ‘C’
Plan Records

 

	Number	Title	Date

 

§ 16.1.6
The Addenda, if any;

 

	Number	Date	Pages
	N/A      	 	 

 

Portions of Addenda relating
to bidding requirements are not part of the Contract Documents unless the bidding requirements are also enumerated in this
Article 16.

 

§ 16.1.7 Additional documents, if any, forming part
of the Contract Documents:

	 	 	 
	 	.1	AIA Document E201TM–2007, Digital Data Protocol Exhibit, if completed by the parties, or the following:
	 	 	 
	 	.2	Other documents, if any, listed below:
	 	 	(List here any additional documents that are intended to form part of the Contract Documents. AIA Document
    A201–2007 provides that bidding requirements such as advertisement or invitation to bid, Instructions to Bidders,
    sample forms and the Contractor’s bid are not part of the Contract Documents unless enumerated in this Agreement. They
    should be listed here only if intended to be part of the Contract Documents.)
	 	 	 
	 	 	Exhibit ‘A’  – Qualifications and Exclusions 
	 	 	Exhibit ‘B’ – Cost Breakdown
	 	 	Exhibit ‘C’ – Plan Records

 

ARTICLE 17     INSURANCE AND BONDS

The Contractor shall purchase
and maintain insurance and provide bonds as set forth in Article 11 of AIA Document A201–2007.

(State bonding requirements, if any, and limits of liability
for insurance required in Article 11 of AIA Document A201–2007.)

 

	Type of insurance or bond	Limit of liability or bond amount ($0.00)
	General Liability Insurance- Each	$1,000,000.00
	Occurrence	 
	General Liability Insurance- General	$2,000,000.00
	Aggregate	 
	General Liability Insurance- Excess	$5,000,000.00
	Liability	$1,000,000.00
	Automobile Liability Insurance	$1,000,000.00
	Builders Risk/Course of Construction	 
	Insurance to be provided by Owner- See	 
	Article §11.3.1 of A201-2007	 

	 	 	 	 
	Init.

    

    /	AIA Document A102TM – 2007 (formerly A111TM – 1997).
    Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of
    Architects. All rights reserved. WARNING: This AIA® Document is protected by U.S. Copyright Law and
    International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it,
    may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This
    document was produced by AIA software at 10:08:46 on 09/25/2015 under Order No.3020359096_1 which expires on 06/20/2016, and
    is not for resale.	13
	 	User Notes:	(1498564921)     

	 

 

    	 

    	 

    

 

17.1 The Contractor
represents the following to the Owner: (i) that it is financially solvent, able to pay all its debt as they
mature, and possessed of sufficient working capital to complete the work and perform all of its obligations hereunder; (ii) that
it is able to furnish the plant, tools, material, supplies equipment and labor required to complete the Work and perform
its obligations hereunder; (iii) that it is authorized to do business in the State where the Project is located and properly licensed
by all necessary governmental and public and quasi-public authorities having jurisdiction
over it and over the Work; (iv) that its execution of this Agreement and its performance hereof is within its duly authorized
powers.

 

17.2 If
either party commences an action against the other to enforce any of the terms of the Contract Documents or because of the
breach by either party of any of the terms of the Contract Documents, the losing or defaulting party, whether by out-of-court settlement
or final judgment, shall pay to the prevailing party the actual costs and expenses incurred in connection with the prosecution
or defense of such action and any appeals in connection therewith, including actual attorneys’
fees and costs. Any judgment or order entered in any final judgment shall contain a specific provision providing for the
recovery of all costs and expenses of suit, including, without limitation, actual attorneys’
fees and costs incurred in connection with: (i) enforcing, perfecting and executing such judgment; (ii) post-judgment
motions; (iii) contempt proceedings; (iv)
garnishment, levy, and debtor and third-party examinations; (v) discovery; and (vi)
bankruptcy litigation. Any such actions shall be conducted in the Courts of the county in which the Project is located.

 

This Agreement entered into as of the day and year first written
above.

	 	 	 	 
	DocuSigned by:	 	 	DocuSigned by:
		9/25/2015	 	
	OWNER (Signature)	 	CONTRACTOR (Signature)
	 	 	 
	Thomas Murphy Chief Financial Officer	 	Cary Richardson Vice President 
	(Printed name and title)	 	(Printed name and title)

	 	 	 	 
	Init.

    

    /	AIA Document A102TM – 2007 (formerly A111TM – 1997).
    Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of
    Architects. All rights reserved. WARNING: This AIA® Document is protected by U.S. Copyright Law and
    International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it,
    may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This
    document was produced by AIA software at 10:08:46 on 09/25/2015 under Order No.3020359096_1 which expires on 06/20/2016, and
    is not for resale.	14
	 	User Notes:	(1498564921)     

	 

 

    	 

    	 

    

 

Additions and Deletions Report for

AIA®
Document A102TM – 2007 

 

This Additions and Deletions Report, as defined on page 1 of
the associated document, reproduces below all text the author has added to the standard form AIA document in order to complete
it, as well as any text the author may have added to or deleted from the original AIA text. Added text is shown underlined. Deleted
text is indicated with a horizontal line through the original AIA text.

 

Note: This Additions and Deletions Report is provided for information
purposes only and is not incorporated into or constitute any part of the associated AIA document. This Additions and Deletions
Report and its associated document were generated simultaneously by AIA software at 10:08:46 on 09/25/2015.

 

PAGE 1

 

AGREEMENT
made as of the 22nd day of September in the year 2015

 

...

 

Aqua Metals Reno, Inc.

1010 Atlantic Avenue

Alameda, California 94501

 

...

 

Miles Construction

61 Industrial Parkway

Carson City, Nevada 89706

 

...

 

Aqua Metals Reno

2500 Peru Drive

Reno, Nevada 89434

 

...

 

Tectonics Design Group

10451 Double R Blvd.

Reno, Nevada 89521

 

...

 

In
general, Owner shall administer the Contract with the assistance of Architect when
requested by Owner, and Architect shall provide support to Owner and shall be responsible for Change Orders, Drawings and Specifications
and other documents drafted by Architect. To the extent there are inconstancies with the foregoing in this Agreement, later provisions
of this Agreement shall be interpreted in light of the foregoing.

	 	 
	Additions and Deletions
Report for AIA Document A102TM – 2007 (formerly A111TM – 1997). Copyright © 1920, 1925, 1951, 1958,
1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This
AIA® Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution
of this AIA® Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted
to the maximum extent possible under the law. This document was produced by AIA software at 10:08:46 on 09/25/2015 under Order
No.3020359096_1 which expires on 06/20/2016, and is not for resale.	1
	User Notes:	(1498564921)     	 

 

    	 

    	 

    

 

PAGE 2

 

The Contract Documents consist of this Agreement, Conditions
of the Contract (General, Supplementary and other Conditions), Drawings and Specifications, listed on Exhibit C other documents listed in this Agreement and Modifications issued
after execution of this Agreement, all of which form the Contract, and are as fully a part of the Contract as if attached to this
Agreement or repeated herein. The Contract represents the entire and integrated agreement between the parties hereto and supersedes
prior negotiations, representations or agreements, either written or oral. If anything in the other Contract Documents, other than
a Modification, is inconsistent with this Agreement, this Agreement shall govern.

 

The parties hereto acknowledge and agree that this
Project is being built on a “fast track” basis. Specifically, as of the time of the Commencement of Construction
and execution of the Agreement. Owner has not yet completed the plans and specifications far the Project. Further, the
parties agree that there are several material outstanding design issues (including, but not limited to, the applications of
certain building codes and requirements —  such as fire codes and requirements) that have not been finalized.
The parties acknowledge and agree that the Guaranteed Maximum Price (“GMP”) and the proposed Construction
Schedule are based on the current set of incomplete plans and specifications. The parties hereby acknowledge and agree that
the current GMP. Construction Schedule, and Completion Date are based on the current set of incomplete plans and
specifications and that if there are any material changes to the plans and specifications or delays in finalizing the plans
and specifications, the parties will, in good faith, negotiate commensurate applicable modifications to the GMP, Construction
Schedule, Completion Date, and other applicable Contract Document requirements.

Notwithstanding the foregoing, Contractor acknowledges that
Owner intends for me Contract Sum not to exceed the GMP and efforts to finalize the plans and specifications shall be made so that
the GMP is not increased. Contractor should expect that to the extent certain portions of the final plans and specifications result
in greater line items costs than currently budgeted. Owner will be making changes in other line items to reduce costs on other
aspects of the Project so as not to exceed the GMP. Contractor shall work with Owner to maintain the GMP.

 

PAGE 3

 

August 15, 2015.

 

...

 

N/A 

 

...

 

Anticipated construction time frame of 8 months, a detailed
construction schedule to be provided within 10 working  days of the completed construction documents.

 

...

 

N/A 

 

PAGE 4

 

Lump sum overhead $388,934.00, Lump sum fee $486,168.00,
Percentage of cost of the work 0.9% general liability insurance

 

...

 

Percentage of Cost of the Work – 6.75% plus general liability
insurance 0.9% 

 

...

	 	 
	Additions and Deletions
Report for AIA Document A102TM – 2007 (formerly A111TM – 1997). Copyright © 1920, 1925, 1951, 1958,
1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This
AIA® Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution
of this AIA® Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted
to the maximum extent possible under the law. This document was produced by AIA software at 10:08:46 on 09/25/2015 under Order
No.3020359096_1 which expires on 06/20/2016, and is not for resale.	2
	User Notes:	(1498564921)     	 

 

    	 

    	 

    

 

N/A

 

§ 5.1.4 Rental rates for Contractor-owned equipment
shall not exceed one hundred percent (100%) of the standard rate paid at the place of the Project.

 

...

 

N/A 

 

...

 

§ 5.2.1 The Contract Sum is guaranteed by the Contractor
not to exceed Thirteen million nine hundred sixty four thousand one hundred thirty four dollars and 00/100 ($ 13,964,134.00), subject to additions and deductions by Change Order as provided in the Contract Documents. Such maximum sum is referred
to in the Contract Documents as the Guaranteed Maximum Price. Costs which would cause the Guaranteed Maximum Price to be exceeded
shall be paid by the Contractor without reimbursement by the Owner.

 

...

 

Exhibit ‘B’ – Cost Breakdown

An estimated cost breakdown is attached hereto as Exhibit
B. Such cost breakdown is being provided for information purposes only. This is not a line item GMP contract and the individual
line items in the Cost Breakdown do not constitute GMPs for each line items.

 

...

 

N/A

 

...

 

1.     Masonry Separation
Walls

2.     Fire Brick at
Kettles

3.     Green Wall and
Sustainable Features

4.     Construction Contingency

5.     CMU Wainscot

6.     CMU Bearing Walls

7.     CMU Separation
Walls - Allowance

8.     Fire Brick - Allowance

 

PAGE 5

 

Exhibit
‘A’ – Qualifications and Exclusions 

 

PAGE 9

 

§
12.1.1 Based upon Applications for Payment submitted to the Owner by the Contractor, the Owner shall make progress
payments on account of the Contract Sum to the Contractor as provided below and elsewhere in the Contract Documents.

 

...

 

Monthly
Progress Billing Applications for Payment of Work completed will be submitted by the contractor to the Owner on the 1st day of
each month. The Owner shall pay the Contractor within thirty (30) days of receipt of the application for payment, 5% retention
will be held on items, excluding the general conditions line items and the Purchase of the Steel Building. Final
payment is to be paid to the Contractor in accordance with § 12.2.4. Line item Retainage may be reduced and/or released
prior to completion at the Owner’s sole discretion

	 	 
	Additions and Deletions
Report for AIA Document A102TM – 2007 (formerly A111TM – 1997). Copyright © 1920, 1925, 1951, 1958,
1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This
AIA® Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution
of this AIA® Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted
to the maximum extent possible under the law. This document was produced by AIA software at 10:08:46 on 09/25/2015 under Order
No.3020359096_1 which expires on 06/20/2016, and is not for resale.	3
	User Notes:	(1498564921)     	 

 

    	 

    	 

    

 

§
12.1.3 Provided that an Application for Payment is received by the Owner not later than the 1st day of
a month, the Owner shall make payment of the certified amount to the Contractor not later than the 1st day of the following
month. If an Application for Payment is received by the Owner after the application date fixed above, payment shall
be made by the Owner not later than thirty (30) days after the Owner receives the Application for Payment.

 

...

 

§
12.1.5 Each Application for Payment shall be based on the most recent schedule of values submitted by the Contractor
in accordance with the Contract Documents. The schedule of values shall allocate the entire Guaranteed Maximum Price among the
various portions of the Work, except that the Contractor’s Fee shall be shown as a single separate item. The schedule of
values shall be prepared in such form and supported by such data to substantiate its accuracy as the Owner  may require.
This schedule, unless objected to by the Owner, shall be used as a basis for reviewing the Contractor’s Applications
for Payment.

 

...

	 	 	 
	 	.3	Add the Contractor’s Fee, less retainage of five percent
(5%). The Contractor’s Fee shall be computed upon the Cost of the Work at the rate stated in Section 5.1.1 or, if
the Contractor’s Fee is stated as a fixed sum in that Section, shall be an amount that bears the same ratio to that fixed-sum
fee as the Cost of the Work bears to a reasonable estimate of the probable Cost of the Work upon its completion. Retention
may be reduced or released on a per line basis at the sole discretion of the owner;
	 	.4	Subtract retainage of five percent (5%) from that
    portion of the Work that the Contractor self-performs;
	 	 	 
	PAGE 10	 
	 	 
	 	.7	Subtract amounts, if any, for which the Owner has withheld
    or nullified a Certificate for Payment as provided in Section 9.5 of AIA Document A201–2007.
	 	 	 
	...	 
	 	 	 
	 	.2	the Contractor has submitted a final accounting for the Cost of the Work and a final Application for Payment..3

 

§
12.2.2 The Owner’s auditors will review and report in writing on the Contractor’s final accounting within
30 days after delivery of the final accounting to the Architect by the Contractor.

 

§
12.2.3 If the Owner’s auditors report the Cost of the Work as substantiated by the Contractor’s final accounting
to be less than claimed by the Contractor, the Contractor shall be entitled to request mediation of the disputed amount without
seeking an initial decision pursuant to Section 15.2 of A201–2007. A request for mediation shall be made by the Contractor within
30 days after the Contractor’s delivery of Contractor’s final accounting. Failure to request mediation within
this 30-day period shall result in the substantiated amount reported by the Owner’s auditors becoming binding on the Contractor.

	 	 
	Additions and Deletions
Report for AIA Document A102TM – 2007 (formerly A111TM – 1997). Copyright © 1920, 1925, 1951, 1958,
1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This
AIA® Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution
of this AIA® Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted
to the maximum extent possible under the law. This document was produced by AIA software at 10:08:46 on 09/25/2015 under Order
No.3020359096_1 which expires on 06/20/2016, and is not for resale.	4
	User Notes:	(1498564921)     	 

  

    	 

    	 

    

 

§
12.2.4 The Owner’s final payment to the Contractor shall be made as follows:

 

Except as otherwise provided in NRS 624.620, any money remaining
unpaid for the Work is payable to the Contractor within 30 days after:

	 	 	 	 
	 	(a)	Occupancy or use of the Work by the Owner; or
	 	(b)	The availability of Work for its intended use. The Contractor must have provided to the Owner:
	 	 	a.	A written notice of availability on or before the day on which the Contractor claims that the Work became available for use or occupancy; or
	 	 	b.	A certificate of occupancy issues by the appropriate building inspector or other authority.

 

PAGE 11

 

(If the parries mutually agree, insert the name, address
and other contact information of the Initial Decision Maker, if other than the Architect.)

 

N/A

 

...

	 	 	 
	 	☒	Litigation in a court of competent jurisdiction. THE PARTIES HEREBY UNCONDITIONALLY WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY AND ALL CLAIMS OR CAUSES OF ACTION ARISING FROM OR RELATING TO THIS AGREEMENT AND/OR THEIR RELATIONSHIP. THE PARTIES ACKNOWLEDGE THAT THEY OTHERWISE HAVE A RIGHT TO HAVE THEIR DISPUTE HEARD BY A JURY, THAT THEY HAVE HAD AN OPPORTUNITY TO CONSULT WITH INDEPENDENT COUNSEL, AND THAT THIS JURY WAIVER HAS BEEN ENTERED INTO KNOWINGLY AND VOLUNTARILY BY ALL PARTIES TO THIS AGREEMENT..

 

PAGE 12

 

Thomas Murphy

Aqua Metals Reno, Inc.

1010 Atlantic Avenue

Alameda, California 94501

 

...

	 	 
	Additions and Deletions
Report for AIA Document A102TM – 2007 (formerly A111TM – 1997). Copyright © 1920, 1925, 1951, 1958,
1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This
AIA® Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution
of this AIA® Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted
to the maximum extent possible under the law. This document was produced by AIA software at 10:08:46 on 09/25/2015 under Order
No.3020359096_1 which expires on 06/20/2016, and is not for resale.	5
	User Notes:	(1498564921)     	 

   

    	 

    	 

    

 

Cary
Richardson

Miles Construction

61 Industrial Parkway

Carson City, Nevada 89706

 

...

 

N/A

 

PAGE 13

 

N/A

 

...

 

Exhibit ‘C’ Plan Records

 

...

 

N/A

 

...

	 	 
	 	Exhibit ‘A’ – Qualifications and Exclusions 
	 	Exhibit ‘B’ – Cost Breakdown 
	 	Exhibit ‘C’ – Plan Records

 

...

	 	 	 	 	 
	General Liability
    Insurance- Each 	 	$	1,000.000.00	 
	Occurrence	 	 	 	 
	General Liability
    Insurance- General	 	$	2,000,000.00	 
	Aggregate	 	 	 	 
	General Liability Insurance- Excess	 	$	5,000.000.00	 
	Liability	 	$	1,000,000.00	 
	Automobile
    Liability Insurance		$	1,000.000.00 	 
	Builders
Risk/Course of Construction 	 	 	 	 
	Insurance to be provided by Owner- See	 	 	 	 
	Article §11.3.1 of A201-2007	 	 	 	 

 

17.1 The Contractor represents the following to the Owner;
(i) that it is financially solvent, able to pay all its debt as they mature, and possessed of sufficient working capital to complete
the work and perform all of its obligations hereunder; (ii) that it is able to furnish the plant, tools, material, supplies equipment
and labor required to complete the Work and perform its obligations hereunder; (iii) that it is authorized to do business in the
State where the Project is located and properly licensed by all necessary governmental mid public and quasi-public authorities
having jurisdiction over it and over the Work; (iv) that its execution of this Agreement and its performance hereof is within
its duly authorized powers.

	 	 
	Additions and Deletions
Report for AIA Document A102TM – 2007 (formerly A111TM – 1997). Copyright © 1920, 1925, 1951, 1958,
1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This
AIA® Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution
of this AIA® Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted
to the maximum extent possible under the law. This document was produced by AIA software at 10:08:46 on 09/25/2015 under Order
No.3020359096_1 which expires on 06/20/2016, and is not for resale.	6
	User Notes:	(1498564921)     	 

   

    	 

    	 

    

 

17.2If either party commences an action against the
other to enforce any of the terms of the Contract Documents or because of the breach by either party of any of the terms of the
Contract Documents, the losing or defaulting party, whether by nut-of-court settlement or final judgment, shall pay to the prevailing
party the actual costs and expenses incurred in connection with the prosecution or defense of such action and any appeals in connection
therewith, including actual attorneys’ fees and costs. Any judgment or order entered in any final judgment shall contain
a specific provision providing for the recovery of all costs and expenses of suit, including, without limitation, actual attorneys’
fees and costs incurred in connection with; (i) enforcing, perfecting and executing such judgment; (ii) post-judgment motions;
(iii) contempt proceedings; (iv) garnishment, levy, and debtor and third-party examinations; (v) discovery; and (vi) bankruptcy
litigation. Any such actions shall be conducted in the Courts of the county in which the Project is located.

 

PAGE 14

	 	 	 
	Thomas Murphy Chief Financial
    Officer	 	Cary Richardson Vice
    President

	 	 
	Additions and Deletions
Report for AIA Document A102TM – 2007 (formerly A111TM – 1997). Copyright © 1920, 1925, 1951, 1958,
1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This
AIA® Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution
of this AIA® Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted
to the maximum extent possible under the law. This document was produced by AIA software at 10:08:46 on 09/25/2015 under Order
No.3020359096_1 which expires on 06/20/2016, and is not for resale.	7
	User Notes:	(1498564921)     	 

   

    	 

    	 

    

 

Certification of Document’s Authenticity 

AIA® Document D401TM – 2003

 

I, Cary Richardson, hereby certify, to the best of my
knowledge, information and belief, that I created the attached final document simultaneously with its associated Additions
and Deletions Report and this certification at 10:08:46 on 09/25/2015 under Order No. 3020359096_1 from AIA Contract
Documents software and that in preparing the attached final document I made no changes to the original text of
AIA® Document A102TM  – 2007, Standard Form of Agreement Between Owner and Contractor where the
basis of payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price, as published by the AIA in its software,
other than those additions and deletions shown in the associated Additions and Deletions Report.

 

	 	 
	DocuSigned by:	 
		 
	(Signed)	 
	 	 
	Vice President	 
	(Title)	 
	 	 
	9/25/2015 	 
	 	 
	(Dated)	 

	 	 
	AIA Document
    D401TM   – 2003. Copyright © 1992 and 2003 by The American Institute of Architects. All rights reserved.
    WARNING: This     AIA® Document is protected by U.S. Copyright Law and International Treaties. Unauthorized
    reproduction or     distribution of this AIA® Document, or any portion of it, may  result
    in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This document
    was produced by AIA software at 10:08:46 on 09/25/2015 under Order No.3020359096_1 which expires on 06/20/2016, and is not
    for resale.	1
	User Notes:	(1498564921)

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