Document:

Exhibit 4.27 

 

SECURITIES
PURCHASE AGREEMENT

 

This
Securities Purchase Agreement (this “Agreement”) is dated as of September ___, 2015, between BlueNRGY Group
Limited, an Australian corporation (the “Company”), and each purchaser identified on the signature pages hereto
(each, including its successors and assigns, a “Purchaser” and collectively the “Purchasers”).

 

WHEREAS,
the parties desire that, upon the terms and subject to the conditions contained herein, the Purchasers shall have the right to
purchase from the Company, from time to time as provided herein, and the Company shall be obligated to sell to the Purchasers,
Preferred Shares of the Company’s wholly-owned subsidiary, Draker Corporation (fkaBlueD Acquisition Corporation), for a
total aggregate cash purchase price of up to US$2,000,000.00 (the “Offering Amount”).

 

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

 

ARTICLE
I.

 

DEFINITIONS

 

1.1       Definitions:

 

“Acquiring
Person” shall have the meaning ascribed to such term in Section 4.5.

 

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

 

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

 

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

 

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

 

“Closing
Date” means the date of the Initial Closing or Draw Down Closing, as applicable.

 

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

 

“Conversion
Price” means US$0.03785 per ordinary share, subject to proportional adjustment for share splits and consolidation that
occur after the date of issuance of the Preferred Shares.

 

“Disclosure
Schedules” means the Disclosure Schedules of the Company delivered concurrently herewith.

 

“Draw
Down” shall have the meaning set forth in Section 2.1(b).

 

“Draw
Down Amount” shall have the meaning set forth in Section 5.1(a).

 

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“Draw
Down Closing” means the closing of the purchase and sale of the Preferred Shares pursuant to a Draw Down.

 

“Draw
Down Notice Date” means the date that a Draw Down Notice is delivered to the Company pursuant to Section 5.1(a).

 

“Draw
DownSettlement Date” shall have the meaning set forth in Section 5.1(b).

 

“Draw
Down Notice” shall have the meaning set forth in Section 5.1(a).

 

“Draw
Down Preferred Shares” means the Preferred Shares issuable pursuant to a Draw Down.

 

“Draw
Down Settlement Date” shall have the meaning set forth in Section 5.1(b).

 

“Equity
Conditions” means, at the time or during the period in question, (i) the Ordinary Shares are trading on a U.S. securities
market (and the Company believes, in good faith, that trading of the Ordinary Shares on a Trading Market will not be suspended
or discontinued), (ii) there is a sufficient number of authorized but unissued and otherwise unreserved Ordinary Shares for the
issuance of all of the Underlying Shares underlying the Draw Down Preferred Shares (issued and issuable pursuant to this Agreement),
and (iii) other than this Agreement, the Company, directly or indirectly, has not provided the Purchasers with any material, non-public
information that has not been made publicly available in a widely disseminated release or a Commission filing.

 

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

 

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

 

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

 

“Initial
Closing” means the initial closing of the purchase and sale of the Preferred Shares pursuant to Section 2.1.

 

“Initial
Closing Date” means September 15, 2015 or such other date as has been mutually agreed upon by the parties to this Agreement.

 

“Initial
Subscription Amount” means, as to each Purchaser, the aggregate amount to be paid for the Preferred Shares hereunder
at the Initial Closing, as specified below such Purchaser’s name on the signature page of this Agreement and next to the
heading “Initial Subscription Amount,” in United States dollars and in immediately available funds.

 

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

 

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

 

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

 

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

 

“Minimum
Dollar Amount” shall mean $100,000.

 

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“Money
Laundering Laws” shall have the meaning ascribed to such term in Section 3.1(hh).

 

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

 

“Ordinary
Shares” shall mean the ordinary shares of the Company.

 

“Ordinary
Share Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to
acquire at any time Ordinary Shares, including, without limitation, any debt, preferred stock, rights, options, warrants or other
instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to
receive, Ordinary Shares.

 

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

 

“Preferred
Shares” means the up to 2,000 Preferred Shares of Draker Acquisition Holdings, Inc, no par value, issuable
hereunder, and having the rights, preferences and privileges set forth in the Resolution, attached hereto as Exhibit
A.

 

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

 

“Purchaser
Draw Down Amount” shall have the meaning ascribed to such term in Section 5.1(a).

 

“Purchaser
Party” shall have the meaning ascribed to such term in Section 4.8.

 

“Purchaser
Registration Statement” shall mean the Registration Statement on Form F-1 the Company shall be obligated to file, as
contemplated by Section 4.12 to register for resale the Securities and the Warrants

 

“Registration
Statement” shall mean the most recent Registration Statement on Form F-1, as amended that has been filed with the Commission,
including the prospectus included in such Registration Statement.

 

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

 

“Resolution”
means the BLUENRGY Group Limited Directors Circular Resolution, dated on or before the Initial Closing Date, substantially in
the form attached hereto as Exhibit A, authorizing the Preferred Shares and approving the Agreement and the
transactions contemplated hereby including, without limitation, the issuance of Preferred Shares to the
Purchasers.

 

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

 

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

 

“Securities”
means the Preferred Shares and the Underlying Shares.

 

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

 

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“Settlement”
means the delivery of Draw Down Preferred Shares to each applicable Purchaser, and each such Purchaser’s delivery of payment
therefore by transfer to the Company’s bank account of immediately available funds.

 

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

 

“Stated
Value” means $1,000.00 per Preferred Share.

 

“Subsidiary”
means any subsidiary of the.

 

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

 

“Trading
Market” means any regulated public securities market in the United States of America (“USA”).

 

“Transaction
Documents” means this Agreement and all exhibits and schedules hereto, and any other documents or agreements, executed
in connection with the transactions contemplated hereunder.

 

“Transfer
Agent” means the current current transfer agent of the Company, and any successor transfer agent of the Company.

 

“Underlying
Shares” means the Ordinary Shares issued and issuable upon conversion of the Preferred Shares, issued and issuable upon
exercise of the Warrants, and issued and issuable in lieu of the cash payment of dividends on the Preferred Shares in accordance
with the terms set forth in the Resolution.

 

ARTICLE
II.

 

PURCHASE
AND SALE

 

2.1       Purchase
and Sale of Preferred Shares; Detachable Warrants.

 

(a)
         Upon the terms and subject to the conditions of this Agreement, during
the term of this Agreement, at their discretion, the Purchasers may elect to purchase from the Company and the Company shall
be obligated to sell to the Purchasers, Preferred Shares for up to a total aggregate cash purchase price of US$2,000,000.00;
provided, however, that at the Initial Closing and on the Initial Closing Date, upon the terms and subject to the conditions
set forth herein, the Company agrees to sell, and the Purchasers, severally and not jointly, agree to purchase, 1,000
Preferred Shares for an aggregate purchase price of $1,000,000.

 

(b)
        At the Initial Closing, each Purchaser shall deliver to the Company or its
designated escrow agent, via wire transfer or a certified check of immediately available funds equal to such
Purchaser’s Initial Subscription Amount as set forth on the signature page hereto executed by such Purchaser and the
Company shall deliver to each Purchaser documentation of its respective Preferred Shares and Warrants as determined pursuant
to Section 2.2(a), and the Company and each Purchaser shall deliver the other items set forth in Section 2.2 deliverable at
the Initial Closing Date. Upon satisfaction of the covenants and conditions set forth in Sections 2.2 and 2.3, the Initial
Closing shall occur at the offices of Reed Smith LLP or such other location as the parties shall mutually agree.

 

(c)
        Following the Initial Closing, and subject to the terms and conditions of
Article 5 of this Agreement, on or before December 31, 2015, the Purchasers shall have the right to make one or more
additional investments (each a “Draw Down”) in an aggregate amount not to exceed $1,000,000, in one or
more Draw Down Closings.

 

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2.2       Initial
Closing Deliverables.

 

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

 

(i)        a
copy of this Agreement duly executed by the Company;

 

(ii)       documentary
evidence that the Preferred Shares purchased by such Purchaser have been duly recorded on the Company’s Preferred Share
register in the name of such Purchaser; and

 

(iii)
     a Warrant in the form set forth in Exhibit D hereto to purchase a number of Ordinary Shares as specified in Section 5.3 hereof.

 

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

 

(i)        a
copy of its signature page to this Agreement duly executed by such Purchaser; and

 

(ii) 
     such Purchaser’s Initial Subscription Amount by wire transfer to the account as specified in writing by the
Company.

 

2.3       Initial
Closing Conditions.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(iii)      the
delivery by the Company of this Agreement duly executed by the Company;

 

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

 

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

 

ARTICLE
III.

 

REPRESENTATIONS
AND WARRANTIES

 

3.1       Representations
and Warranties of the Company. The Company hereby makes the representations and warranties to Purchaser set forth in that
certain subscription agreement between Purchaser and Company for ordinary shares as of the date hereof, which representations
and warranties are incorporated herein by reference:

 

 

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

 

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

 

(b)         Understandings
or Arrangements. Such Purchaser is acquiring the Securities as principal for its own account and has no direct or indirect
arrangement or understandings with any other persons to distribute or regarding the distribution of such Securities (this representation
and warranty not limiting such Purchaser’s right to sell the Securities pursuant to the Purchaser Registration Statement
or otherwise in compliance with applicable federal and state securities laws). Such Purchaser is acquiring the Securities hereunder
in the ordinary course of its business.

 

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(c)          Purchaser
Status. At the time such Purchaser was offered the Securities, it was, and as of the date hereof it is, and on the date of
each Draw Down Notice, and on each date on which it converts any Preferred Shares, it will be either: (i) an “accredited
investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii) a “qualified
institutional buyer” as defined in Rule 144A(a) under the Securities Act. Such Purchaser is not required to be registered
as a broker-dealer under Section 15 of the Exchange Act.

 

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

 

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

 

(f)           Certain
Transactions and Confidentiality. Other than consummating the transactions contemplated hereunder, such Purchaser has not,
nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser, directly or indirectly executed Short
Sales of the securities of the Company during the period commencing as of the time that such Purchaser first received a term
sheet (written or oral) setting forth the material terms of the transactions contemplated hereunder and ending immediately prior
to the execution hereof. Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle
whereby separate portfolio managers manage separate portions of such Purchaser’s assets and the portfolio managers have
no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such Purchaser’s
assets, the representation set forth above shall only apply with respect to the portion of assets managed by the portfolio manager
that made the investment decision to purchase the Securities covered by this Agreement. Other than to other Persons party to this
Agreement, such Purchaser has maintained the confidentiality of all disclosures made to it in connection with this transaction
(including the existence and terms of this transaction).

 

(g)          Need
for additional financing. Such Purchaser understands that it is likely that the Company will need to obtain additional financing
following consummation of this Agreement in order to fully execute its current business plan and objectives and to continue as
a going concern. Such financing could be in the form of a sale or sales of equity or debt or equipment lease financing or a combination
of the foregoing. Such financing could lead to material dilution to the Company’s then existing equity holders and could
provide for terms that restrict the operations of the Company. There can be no assurance that any additional financing following
the consummation of this Agreement will be available to the Company on commercially reasonable terms or at all. In the event the
Company is unable to obtain additional financing, it may not be able to fully execute its business plan and objectives and could
be forced to curtail some or all of its operations or to liquidate, resulting in a total loss of Purchaser’s investment
in the Securities.

 

(h)          Such
Purchaser understand and recognize that the purchase of the Securities is highly speculative and involves a high degree of risk
and that only investors who can afford the loss of their entire investment should consider investing in the Company. Such Purchaser
has reviewed the risk factors in the SEC Reports.

 

(i)           The
address of such Purchaser furnished by him/her on the signature pages hereto is the undersigned’s principal residence if
he/she is an individual or its principal business address if it is a corporation or other entity.

 

(j)           If
such Purchaser is not a United States person, it has satisfied itself as to the full observance of the laws of its jurisdiction
in connection with any invitation to purchase the Securities or any use of this Agreement, including (i) the legal requirements
within its jurisdiction for the purchase of the Securities, (ii) any foreign exchange restrictions applicable to such purchase,
(iii) any governmental or other consents that may need to be obtained and (iv) the income tax and other tax consequences, if any,
that may be relevant to the purchase, holding, redemption, sale or transfer of the Securities. Such Purchaser’s payment
for, and its continued beneficial ownership of the Securities, will not violate any applicable securities or other laws of the
Purchaser’s jurisdiction.

 

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

 

ARTICLE
IV.

 

OTHER
AGREEMENTS OF THE PARTIES

 

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

 

4.2       Furnishing
of Information. Until the time that no Purchaser owns Securities, the Company covenants to timely file (or obtain extensions
in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after the date
hereof pursuant to the Exchange Act even if the Company is not then subject to the reporting requirements of the Exchange Act.

 

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

 

4.4
     Securities Laws Disclosure; Publicity. The Company shall promptly file a Report on Form 6-K, disclosing the
material terms of the transactions contemplated hereby, and such other information as required by applicable regulation. In
the event of a Draw Down at which the investment amount (cumulated with any prior but not yet publicly announced Draw Downs)
equals or exceeds $500,000, the Company shall promptly issue a press release or file a Report on Form 6-K, disclosing the
material terms of the proposed Draw Down (and of any prior, undisclosed Draw Downs). Notwithstanding the foregoing, the
Company shall not publicly disclose the name of any Purchaser, or include the name of any Purchaser in any filing with the
Commission or any regulatory agency or Trading Market, without the prior written consent of such Purchaser, except (a) as
required by federal securities law in connection with the filing of final Transaction Documents (including signature pages
thereto) with the Commission, (b) to the extent such disclosure is required by law or Trading Market regulations, in which
case the Company shall provide the Purchasers with prior notice of such disclosure permitted under this clause (b) or as
required by applicable regulation to comply with Section 4.12 hereof.

 

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

 

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

 

4.7       Indemnification
of Purchasers. Subject to the provisions of this Section 4.7, the Company will indemnify and hold each Purchaser and its directors,
officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent role of
a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser
(within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders,
agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles
notwithstanding a lack of such title or any other title) of such controlling persons (each, a “Purchaser Party”)
harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all
judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such
Purchaser Party may suffer or incur as a result of or relating to (a) any material breach of any of the representations, warranties,
covenants or agreements made by the Company in this Agreement or in the other Transaction Documents or (b) any action instituted
against a Purchaser in any capacity, or any of them or their respective Affiliates, by any shareholder of the Company who is not
an Affiliate of such Purchaser, with respect to any of the transactions contemplated by the Transaction Documents (unless such
action is based upon a breach of such Purchaser’s representations, warranties or covenants under the Transaction Documents
or any agreements or understandings such Purchaser may have with any such shareholder or any violations by such Purchaser of state
or federal securities laws or any conduct by such Purchaser which constitutes fraud, gross negligence, willful misconduct or malfeasance).
If any action shall be brought against any Purchaser Party in respect of which indemnity may be sought pursuant to this Agreement,
such Purchaser Party shall promptly notify the Company in writing, and the Company shall have the right to assume the defense
thereof with counsel of its own choosing reasonably acceptable to the Purchaser Party. Any Purchaser Party shall have the right
to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such counsel
shall be at the expense of such Purchaser Party except to the extent that (i) the employment thereof has been specifically authorized
by the Company in writing, (ii) the Company has failed after a reasonable period of time to assume such defense and to employ
counsel or (iii) in such action there is, in the reasonable opinion of counsel, a material conflict on any material issue between
the position of the Company and the position of such Purchaser Party, in which case the Company shall be responsible for the reasonable
fees and expenses of no more than one such separate counsel. The Company will not be liable to any Purchaser Party under this
Agreement (y) for any settlement by a Purchaser Party effected without the Company’s prior written consent, which shall
not be unreasonably withheld or delayed; or (z) to the extent, but only to the extent that a loss, claim, damage or liability
is attributable to any Purchaser Party’s breach of any of the representations, warranties, covenants or agreements made
by such Purchaser Party in this Agreement or in the other Transaction Documents.

 

4.8       Reservation
of Ordinary Shares. As of the date hereof, the Company has reserved and the Company shall continue to reserve and keep available
at all times, free of preemptive rights, a sufficient number of Ordinary Shares for the purpose of enabling the Company to issue
all of the Underlying Shares.

 

4.9       Listing
of Ordinary Shares. The Company hereby agrees to use all commercially reasonable efforts to maintain the listing of the Ordinary
Shares on the Trading Market on which it is currently listed or an alternative national securities market in the United States
of America. The Company further agrees, if the Company applies to have the Ordinary Shares traded on any other non-U.S. Trading
Market, it will then include in such application all of the Underlying Shares, and will take such other action as is necessary
to cause all of the Underlying Shares to be listed or quoted on such other Trading Market as promptly as possible. The Company
will then take all action reasonably necessary to continue the listing and trading of its Ordinary Shares on a Trading Market
and will comply in all respects with the Company’s reporting, filing and other obligations under the bylaws or rules of
the Trading Market.

 

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4.10     Certain
Transactions and Confidentiality. Each Purchaser, severally and not jointly with the other Purchasers, covenants that neither
it nor any Affiliate acting on its behalf or pursuant to any understanding with it will execute any purchases or sales, including
Short Sales of any of the Company’s securities during the period commencing with the execution of this Agreement and ending
at such time that the transactions contemplated by this Agreement are first publicly announced pursuant to the Form 6-K as described
in Section 4.4. Each Purchaser, severally and not jointly with the other Purchasers, covenants that until such time as the transactions
contemplated by this Agreement are publicly disclosed by the Company pursuant to the Form 6-K as described in Section 4.4, such
Purchaser will maintain the confidentiality of the existence and terms of this transaction and the information included in the
Transaction Documents and the Disclosure Schedules. Notwithstanding the foregoing and notwithstanding anything contained in this
Agreement to the contrary, the Company expressly acknowledges and agrees that (i) no Purchaser makes any representation, warranty
or covenant hereby that it will not engage in effecting transactions in any securities of the Company after the time that the
transactions contemplated by this Agreement are first publicly announced pursuant to the Form 6-K as described in Section 4.4,
(ii) no Purchaser shall be restricted or prohibited from effecting any transactions in any securities of the Company in accordance
with applicable securities laws from and after the time that the transactions contemplated by this Agreement are first publicly
announced pursuant to the Form 6-K as described in Section 4.4 and (iii) no Purchaser shall have any duty of confidentiality to
the Company or its Subsidiaries after the issuance of the Form 6-K as described in Section 4.4. Notwithstanding the foregoing,
in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions
of such Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio
managers managing other portions of such Purchaser’s assets, the covenant set forth above shall only apply with respect
to the portion of assets managed by the portfolio manager that made the investment decision to purchase the Securities covered
by this Agreement.

 

4.11     Purchaser
Registration Statement. The Company shall file a registration statement to register the Underlying Shares (“Purchaser
Registration Statement”) as soon as practicable after the Initial Closing Date, (the “Filing Date”) and shall
take all reasonable steps to ensure that the Purchaser Registration Statement is declared effective by the Commission within 180
days following the Initial Closing Date (the “Registration Date”). For so long as Purchasers hold Preferred Shares,
the Company will not sell or issue or attempt to register any securities under the Purchaser Registration Statement in any amount
or manner that would prevent or restrict the availability of the Purchaser Registration Statement to cover the issuance of Underlying
Shares upon conversion of the Preferred Shares and the exercise of the Warrants.

 

4.12     Conversion
and Exercise Procedures. Each Preferred Share is Convertible into ordinary shares of the Company at the Conversion Price upon
delivery by holder of Notice of Conversion applicable to such share. The form of Notice of Conversion included in Exhibit C sets
forth the totality of the procedures required of a Purchaser in order to convert the Preferred Shares. No additional legal opinion,
other information or instructions shall be required of any Purchaser to convert their Preferred Shares. The Company shall honor
conversions of the Preferred Sharesand exercises of the Warrants and shall deliver Underlying Shares in accordance with the terms,
conditions and time periods set forth in the Transaction Documents and provide all customary legal opinions, instructions or instruments
necessary or advisable for the issuance to the Purchasers of the Securities and resale by the Purchasers of the Underlying Shares.

 

    10

     

    

 

ARTICLE
V.

 

DRAW
DOWNS

 

5.1       Draw
Down Terms.

 

(a)
         Each Purchaser must inform the Company by delivering on or before December 31, 2015, a Draw Down Notice, in the form of Exhibit
B hereto (the “Draw Down Notice”), via facsimile or email transmission in accordance with Section 7.3,
as to the dollar amount of the Purchaser’s proposed Draw Down (the “Purchaser Draw Down Amount”) such
Purchaser wishes to exercise; provided, however, that any Draw Down must be for at least the Minimum Dollar Amount.

 

(b)
        Each Draw Down will be settled on or before the 3rd Trading Day after delivery of such Draw Down Notice, but no later than December
31, 2015 (“Draw Down Settlement Date”). The number of Preferred Shares to be issued upon each settlement of
a Draw Down shall equal the Purchaser Draw Down Amount divided by the Stated Value.

 

5.2       Conditions
Precedent to the Obligation of the Company to sell Draw Down Preferred Shares. The obligation hereunder of the Company
to proceed to sell and issue Draw Down Preferred Shares in each Draw Down under this Agreement, if any, is subject to the
satisfaction as of such Draw Down Settlement Date of each of the conditions set forth below, which conditions are for the
Company’s sole benefit and may be waived by the Company in writing at any time in its sole
discretion:

 

(a)          Each
of the representations and warranties of each participating Purchaser contained herein shall be true and correct in all material
respects as of such Draw Down Closing Date as though made at that time (except for representations and warranties that speak as
of a particular date, which shall be true and correct in all material respects as of such dates).

 

(b)         The
Purchasers shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions
required by this Agreement to be performed, satisfied or complied with by the Purchasers at or prior to such Draw Down Settlement
Date.

 

(c)          On
each applicable Draw Down Notice Date, all of the Equity Conditions shall be satisfied.

 

(d)         The
Purchaser Draw Down Amount for such Draw Down shall not be less than the Minimum Dollar Amount, and

 

(e)         The
closing deliverables described in Section 5.3(b) shall have been delivered to the Company.

 

5.2       Conditions
Precedent to the Obligation of the Purchasers to purchase Draw Down Preferred Shares. The obligation hereunder of the Purchasers
to acquire and pay for Draw Down Preferred Shares is subject to the satisfaction as of each Draw Down Settlement Date, of each
of the conditions set forth below, which conditions are for the Purchasers’ sole benefit and may be waived by the Purchasers
in writing at any time in their sole discretion:

 

(a)          Each
of the representations and warranties of the Company shall be true and correct in all material respects as of such Draw Down Settlement
Date as though made at that time (except for representations and warranties that speak as of a particular date, which shall be
true and correct in all material respects as of such date).

 

(b)         The
Company shall have performed, satisfied and complied in all material respects with all material covenants, agreements and conditions
required by this Agreement to be performed, satisfied or complied with by the Company at or prior to such Draw Down Settlement
Date.

 

    11

     

    

 

(c)         Trading
in the Ordinary Shares shall not have been suspended by the Commission or the Trading Market on the Draw Down Settlement Date.

 

(d)         There
shall have been no Material Adverse Effect with respect to the Company.

 

(e)         On
each applicable Draw Down Notice Date and Draw Down Settlement Date, all of the Equity Conditions shall be satisfied and none
of the events set forth in Section 2.3(b)(v) shall have occurred.

 

(f)          The Company’s Board shall have adopted an irrevocable resolution providing that, subject to the Company’s Constitution
and the Act, as long as 1,000 or more Preferred Shares are outstanding, the Board shall, upon receipt of a written request from
any holder of Preferred Shares, vote to appoint as a director a designee chosen by the holders of a majority of the Preferred
Shares (the “Preferred Director”). Subject to receipt of notice of the designee, the Company covenants to take all
such lawful actions as necessary to immediately effect such appointment, if requested. 

 

5.3       Draw
Down Closing Deliverables.

 

(a)          On
or prior to the Draw Down Settlement Date, the Company shall deliver or cause to be delivered to each participating
Purchaser documentary evidence that the Preferred Shares purchased by such Purchaser have been duly recorded on the
Company’s Preferred Share register in the name of such Purchaser and a Warrant to purchase a number of Ordinary Shares
up to 50% of the number of ordinary shares issuable upon conversion of a Preferred Share at the applicable conversion price,
subject to adjustment, it being understood that ; the number of Draw Down Preferred Shares ascribed to each such Purchaser
shall equal such Purchaser’s Purchaser Draw Down Amount divided by the Stated Value,; and

 

(b)         On
or prior to the Draw Down Settlement Date, each participating Purchaser shall deliver or cause to be delivered to the Company
such Purchaser’s Purchaser Draw Down Amount by wire transfer to the account as specified in writing by the Company. 

 

ARTICLE
VI.

 

TERMINATION

 

6.1       Termination.
This Agreement may be terminated by any Purchaser, as to such Purchaser’s obligations hereunder only and without any effect
whatsoever on the obligations between the Company and the other Purchasers, by written notice to the other parties, if the Initial
Closing has not been consummated on or before September 20, 2015; provided, however, that no such termination will affect the
right of any party to sue for any breach by the other party (or parties).

 

ARTICLE
VII.

 

MISCELLANEOUS

 

7.1       Fees
and Expenses. Except as expressly set forth in the Transaction Documents to the contrary, each party shall pay the fees and
expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident
to the negotiation, preparation, execution, delivery and performance of this Agreement.

 

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

 

    12

     

    

 

7.3       Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and
shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered
via facsimile at the facsimile number or via email at the email address set forth on the signature pages attached hereto prior
to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number or via email at the email address set forth on the signature
pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (c)
the second (2nd) Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service or
(d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications
shall be as set forth on the signature pages attached hereto and may be changed upon three days’ notice in accordance with
the terms of this Section 8.7.

 

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

 

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

 

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

 

7.7       No
Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors
and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as
otherwise set forth in Section 4.7.

 

7.8       Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall
be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the
principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a
party hereto or its respective affiliates, directors, officers, shareholders, employees or agents) shall be commenced exclusively
in the state and federal courts sitting in the City of New York. Each party hereby irrevocably submits to the exclusive jurisdiction
of the state and federal courts sitting in the City of New York, borough of Manhattan for the adjudication of any dispute hereunder
or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement
of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper
or is an inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents
to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight
delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees
that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be
deemed to limit in any way any right to serve process in any other manner permitted by law. If either party shall commence an
action or proceeding to enforce any provisions of the Transaction Documents, then, in addition to the obligations of the Company
under Section 4.7, the prevailing party in such action or proceeding shall be reimbursed by the other party for its reasonable
attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action
or proceeding.

 

    13

     

    

 

7.9       Survival.
The representations and warranties contained herein shall survive the Initial Closing and the delivery of the Securities.

 

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

 

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

 

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

 

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

 

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

 

    14

     

    

 

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

 

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

 

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

 

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

 

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

 

(Signature
Pages Follow)

 

    15

     

    

 

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

 

	 	BLUENRGY GROUP LIMITED
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE
PAGE FOR PURCHASER FOLLOWS]

 

    16

     

    

 

PURCHASER
SIGNATURE PAGES TO BLUENRGY ENERGY LIMITED SECURITIES PURCHASE AGREEMENT

 

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

 

Name
of Purchaser: _____________________________________________________________________________

 

Signature
of Authorized Signatory of Purchaser: ______________________________________________________

 

Name
of Authorized Signatory: ____________________________________________________________________

 

Title
of Authorized Signatory: _____________________________________________________________________

 

Email
Address of Authorized Signatory:______________________________________________________________

 

Facsimile
Number of Authorized Signatory: ___________________________________________________________

 

Address
for Notice of Purchaser:

____________________________________________________________________________________________

 

____________________________________________________________________________________________

 

____________________________________________________________________________________________ 

 

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

____________________________________________________________________________________________

 

____________________________________________________________________________________________

 

____________________________________________________________________________________________ 

 

Initial
Subscription Amount: $1,000,000 (One Million U.S. dollars)_______________________

 

Number
of Series B Cumulative Convertible Preferred Shares: 1,000

 

EIN
Number: ___________________________

 

[SIGNATURE
PAGES CONTINUE]

 

    17

     

    

 

Exhibit
A

 

DIRECTORS
CIRCULAR RESOLUTION

 

(Attached)

 

    18

     

    

 

Exhibit
B

 

DRAW
DOWN NOTICE / COMPLIANCE CERTIFICATE

 

The
undersigned hereby certifies, with respect to Draker Acquisition Holdings Convertible Preferred Shares, no par value, of
BLUENRGY Group Limited, an Australian corporation (the “Company”), issuable in connection with this Draw
Down Notice and Compliance Certificate dated _______, 2015 (the “Notice”), delivered pursuant to the
Securities Purchase Agreement dated as of ________, 2015 (the “Agreement”), as follows:

 

1.
      The undersigned is the duly appointed _________ of __________ (“Purchaser”).

 

2.     
The representations and warranties of Purchaser set forth in the Agreement are true and correct in all material respects as though
made on and as of the date hereof, except for representations and warranties which are expressly made as of a particular date.

 

3.
     Purchaser has performed, satisfied and complied in all material respects with all covenants, agreements and conditions required
under the Agreement to be performed, satisfied or complied with by Purchaser at or prior to the date of this Draw Down Notice.

 

4.
      The Purchaser Investment Amount is $___________.

 

5.
      The number of Draw Down Preferred Shares is ___________.

 

6.      
The Draw Down Settlement Date is _________________.

 

The
undersigned has executed this Certificate this ____ day of ________, 2015.

 

PURCHASER

 

	By:	 	 
	Name:	 	 
	Title:	 	 

 

    19

     

    

 

Exhibit
C

 

FORM
OF NOTICE OF CONVERSION

 

(Attached)

 

    20

     

    

 

Exhibit
D

 

FORM
OF WARRANT

 

(Attached)

 

21Exhibit 10.1

 

WARRANT EXERCISE AGREEMENT

 

This Warrant Exercise Agreement (this “Agreement”), dated as of October 26, 2017, is by and between Capstone Turbine Corporation, a Delaware corporation (the “Company”), and the undersigned holder (the “Holder”) of a Series A Warrant to purchase shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”), issued by the Company, which warrant is exercisable at an exercise price (the “Exercise Price”) of $2.55 per share (the “Original Warrant”).

 

WHEREAS, the Holder’s Original Warrant is exercisable into a number of shares of Common Stock as set forth on the Holder’s signature page hereto (the “Warrant Shares”);

 

WHEREAS, the Holder wishes to exercise all or a portion of such Original Warrant as set forth herein (but not to the extent an exercise exceeds such Holder’s Maximum Percentage (as defined in the Original Warrant)) and, immediately prior to such exercise and in consideration of the Holder’s exercise of such Original Warrant, the Company has agreed to issue the Holder the shares of Common Stock to which such exercising Holder is entitled.

 

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

 

ARTICLE I

DEFINITIONS

 

Section 1.1            Definitions. Capitalized terms not defined in this Agreement shall have the meanings ascribed to such terms in the Original Warrant.

 

ARTICLE II

EXERCISE OF EXISTING WARRANT

 

Section 2.1            Exercise of Original Warrant.  The Company and the Holder hereby agree that the Holder shall immediately exercise the Original Warrant with respect to the number of Warrant Shares set forth on the Holder’s signature page hereto at a reduced Exercise Price per share equal to $0.90, otherwise pursuant to the terms of the Original Warrant. The Holder shall execute and deliver the aggregate cash exercise price for such exercise of the Original Warrant to the bank account set forth on the Company’s signature page hereto within two business days after notice from the Company that the condition set forth in Section 2.2 has been met and the Company shall deliver the Warrant Shares to the Holder via the Depository Trust Company Deposit or Withdrawal at Custodian system pursuant to the terms of the Original Warrant, but pursuant to instructions set forth on the Holder’s signature page hereto. The date of the closing of the exercise of the Original Warrant shall be referred to as the “Closing Date”.

 

Section 2.2            Filing of Form 8-K and Amendment to Registration Statement. Prior to 9:00 am ET on the Trading Day following the date hereof, the Company shall issue a Current Report on Form 8-K, reasonably acceptable to the Holder disclosing the material terms of the transactions contemplated hereby, which shall include this Agreement (the “8-K Filing”). From and after the 8-K Filing, the Company represents to the Holder that it shall not be in possession of any material, nonpublic information received from the Company, any of its subsidiaries or any of their respective officers, directors, employees or agents that is not disclosed in the 8-K Filing. In addition, effective upon the 8-K Filing, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any agreement, whether written or oral, between the Company, any of its subsidiaries or any of their respective officers, directors, affiliates, employees or agents, on the one hand, and the Holder or any of its affiliates, on the other hand, shall terminate. Such 8-K Filing shall be incorporated by reference into the registration statement on Form S-3 (No. 333- 215205) (the “Registration Statement”), thereby updating the prospectus included therein.

 

 

Section 2.3            Subsequent Equity Sales.  From the date hereof until the 30th day following the date hereof, neither the Company nor any Subsidiary shall issue, enter into any agreement to issue or announce the issuance or proposed issuance of any shares of Common Stock or Common Stock Equivalents. As used herein “Common Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.  Notwithstanding the foregoing, this Section 2.3 shall not apply in respect of an Exempt Issuance. “Exempt Issuance” means the issuance of (a) shares of Common Stock or options to employees, officers, directors or consultants (consistent with past practice) of the Company pursuant to any stock incentive plan duly adopted for such purpose, by a majority of the non-employee members of the Board of Directors or a majority of the members of a committee of non-employee directors established for such purpose or (b) securities upon the exercise or exchange of or conversion of any Securities issued hereunder and/or other securities exercisable or exchangeable for, or convertible into shares of Common Stock issued and outstanding on the date of this Agreement, provided that such securities have not been amended since the date of this Agreement to increase the number of such securities or to decrease the exercise price, exchange price or conversion price of such securities (other than in connection with stock splits or combinations) or to extend the term of such securities.

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES

 

Section 3.1            Representations and Warranties of the Company. The Company hereby makes the representations and warranties set forth below to the Holder that as of the date of its execution of this Agreement:

 

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

 

(b)           Organization. The Company is a duly organized and validly existing corporation in good standing under the laws of the State of Delaware.

 

(c)           Registration Statement. The Warrant Shares are registered for issuance to the Holder on the Registration Statement, and the Company knows of no reasons why such Registration Statement shall not remain available for the issuance of such Warrant Shares for the foreseeable future. The Company shall use commercially reasonable efforts to keep the Registration Statement effective and available for use by the Holder until all Warrant Shares are issued to the Holder.

 

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

 

2

 

(e)           Disclosure. Except with respect to the material terms and conditions of the transactions contemplated by this Agreement, the Company confirms that neither it nor any other Person acting on its behalf has provided the Holder or any of its agents or counsel with any information that it believes constitutes or might constitute material, non-public information. The Company understands and confirms that the Holder will rely on the foregoing representation in effecting transactions in securities of the Company. All of the disclosures furnished by or on behalf of the Company to the Holder regarding the Company and its subsidiaries, their respective businesses and the transactions contemplated hereby, including but not limited to the disclosure set forth in the SEC Reports, are true and correct and do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. As used herein, “SEC Reports” means all reports, schedules, forms, statements and other documents required to be filed by the Company with the Commission pursuant to the reporting requirements of the Securities Exchange Act of 1934, as amended, including all exhibits included therein and financial statements, notes and schedules thereto and documents incorporated by reference therein.

 

(f)            No Disqualification Events. With respect to securities to be offered and sold hereunder in reliance on Rule 506(b) under the Securities Act, none of the Company, any of its predecessors, any affiliated issuer, any director, executive officer, other officer of the Company, any beneficial owner of 20% or more of the Company’s outstanding voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the Securities Act) connected with the Company in any capacity at the time of sale (each, an “Issuer Covered Person” and, together, “Issuer Covered Persons”) is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities Act (a “Disqualification Event”), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether any Issuer Covered Person is subject to a Disqualification Event. The Company has complied, to the extent applicable, with its disclosure obligations under Rule 506(e), and has furnished to the Buyers a copy of any disclosures provided thereunder, if any.

 

Section 3.2            Representations and Warranties of the Holder. The Holder hereby makes the representations and warranties set forth below to the Company that as of the date of its execution of this Agreement:

 

(a)           Due Authorization. The Holder represents and warrants that (i) the execution and delivery of this Agreement by it and the consummation by it of the transactions contemplated hereby have been duly authorized by all necessary action on its behalf and (ii) this Agreement has been duly executed and delivered by the Holder and constitutes the valid and binding obligation of the Holder, enforceable against it in accordance with its terms.

 

(b)           No Conflicts. The execution, delivery and performance of this Agreement by the Holder and the consummation by the Holder of the transactions contemplated hereby do not and will not: (i) conflict with or violate any provision of the Holder’s organizational or charter documents, or (ii) conflict with or result in a violation of any agreement, law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority which would interfere with the ability of the Holder to perform its obligations under this Agreement.

 

(c)           Access to Information. The Holder acknowledges that it has had the opportunity to review this Agreement and the SEC Reports and has been afforded (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the exercise of the Original Warrant and the merits and risks of investing in the Warrant Shares underlying the Original Warrant; (ii) access to information about the Company and its financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment; and (iii) the opportunity to obtain such additional information that the Company possesses or can acquire without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment. The Holder acknowledges and agrees that

 

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neither Oppenheimer & Co. Inc. (the “Agent”) nor any Affiliate of the Agent has provided the Holder with any information or advice with respect to the Original Warrant, the Warrant Shares or the securities nor is such information or advice necessary or desired. Neither the Agent nor any Affiliate of the Agent has made or makes any representation as to the Company or the quality of the Original Warrant, the Warrant Shares or the securities, and the Agent and any Affiliate of the Agent may have acquired non-public information with respect to the Company which the Holder agrees need not be provided to it. In connection with the issuance of the Warrant Shares and the Securities to the Holder, neither the Agent nor any of its Affiliates has acted as a financial advisor or fiduciary to the Holder.

 

(d)           Holder Status. The Holder is an “accredited investor” as defined in Rule 501 under the Securities Act.

 

ARTICLE IV

MISCELLANEOUS

 

Section 4.1            Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be made by email to the email address of Holders set forth on Holders’ signature page.

 

Section 4.2            Survival. All warranties and representations (as of the date such warranties and representations were made) made herein or in any certificate or other instrument delivered by any party hereto or on its behalf under this Agreement shall be considered to have been relied upon by the parties hereto and shall survive the issuance of the Warrant Shares. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each of the parties; provided, however that no party may assign this Agreement or the obligations and rights of such party hereunder without the prior written consent of the other parties hereto.

 

Section 4.3            Execution. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile signature page were an original thereof.

 

Section 4.4            Severability. If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Agreement.

 

Section 4.5            Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be determined pursuant to the Governing Law provision of the Original Warrant.

 

Section 4.6            Entire Agreement. The Agreement, together with the exhibits and schedules thereto, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

 

Section 4.7            Construction. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party.

 

Section 4.8            Fees and Expenses. Each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all transfer agent fees, stamp taxes and other taxes and duties levied in connection with the delivery of any Warrant Shares.

 

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

 

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IN WITNESS WHEREOF, the undersigned have executed this Warrant Exercise Agreement as of the date first written above.

 

	
COMPANY:
    	
 
    
	
 
    	
 
    
	
CAPSTONE   TURBINE CORPORATION
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
Name:
    	
Darren Jamison
    	
 
    
	
Title:
    	
President and Chief   Executive Officer
    	
 
    

 

Bank Account and Wire Instructions attached hereto on Annex A

 

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HOLDER SIGNATURE PAGES TO CPST

WARRANT EXERCISE AGREEMENT

 

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

 

	
Name of Holder:
    	
 
    
	
 
    	
 
    
	
Signature of Authorized Signatory of Holder:
    	
 
    
	
 
    	
 
    
	
Name of Authorized Signatory:
    	
 
    
	
 
    	
 
    
	
Title of Authorized Signatory:
    	
 
    
	
 
    	
 
    
	
Email Address of Holder:
    	
 
    
	
 
    	
 
    
	
Number of Warrant   Shares Exercised Hereunder:
    	
 
    
	
 
    	
 
    
	
Aggregate Exercise Price
    	
 
    
	
 
    	
 
    
	
DWAC Instructions for   Warrant Shares:
    	
 
    
									

 

6

 

Annex A

 

Bank Account and Wire Instructions

 

7

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