Document:

This
SUBSCRIPTION AGREEMENT AND THE OTHER DOCUMENTS RELATED TO THE ISSUANCE OF THE UNITS (AS DEFINED HEREIN) IN THIS OFFERING (AS DEFINED
HEREIN) may contain material, non-public information. By accepting DELIVERY OF this SUBSCRIPTION AGREEMENT, the recipient acknowledges
its express agreement with THE COMPANY (AS DEFINED HEREIN) and the Placement Agent (AS DEFINED HEREIN) to maintain in STRICT confidence
all information contained herein and in the other offering documents AND SHALL NOT DIRECTLY AND/OR INDIRECTLY engage in any trading
activity (including, but not limited to, shorting and related activity) of our common stock nor encourage others to do same. THE
COMPANY and the Placement Agent have caused THIS SUBSCRIPTION AGREEMENT to be delivered to you in reliance upon your agreement
to maintain the confidentiality of this information and upon Regulation FD promulgated by the Securities and Exchange Commission
for the sole purpose of enabling you to consider and evaluate an investment in the Units. You agree that you will treat such information
in a STRICTLY confidential manner, will not use such information for any purpose other than evaluating an investment in the Units,
and will not, directly or indirectly, disclose or permit your agents, representatives or affiliates to disclose any of such information
without the express prior written consent of the Company. Likewise, without the express prior written consent of the Company, you
agree that you will not, directly or indirectly, make any statements, public announcements, or other release or provision of information
in any form on any website or portal, to any trade publication, to the press or to any other person or entity. If you decide not
to pursue further investigation of the Company or to not participate in the Offering, you agree to promptly return this SUBSCRIPTION
AGREEMENT and any of THE OTHER OFFERING DOCUMENTS (and all copies thereof) to the Company and to continue to keep such information
confidential until it is otherwise publicly disclosed. You understand that the United States’ securities laws provide severe
civil and criminal penalties for anyone trading in securities while in possession of material, non-public information, passing
along such information to others and/or encouraging others to trade and/or disseminate such information.

 

SUBSCRIPTION AGREEMENT

 

This SUBSCRIPTION
AGREEMENT (this “Agreement”) is made and entered into as of _______, 2012 by and among CorMedix Inc.,
a Delaware corporation (the “Company”), and each of the purchasers signatories hereto (each a “Purchaser”
and collectively, the “Purchasers”) of the Company’s units (each, a “Unit”,
and collectively, the “Units”).

 

The parties hereto agree as follows:

 

Article 1 

 

Purchase and Sale of Units

 

Section 1.1. The Offering. Pursuant to the terms and
conditions of the Confidential Private Placement Memorandum dated August 20, 2012 (including all exhibits, attachments, annexes,
amendments and supplements thereto) (collectively, the “Memorandum”), the Company is offering (the “Offering”)
through John Carris Investments, LLC (the “Placement Agent”) its Units, each Unit consisting of (i) a
9% Senior Convertible Note of the Company, substantially in the form attached to the Memorandum as Exhibit B, in
an aggregate principal amount of $1,000 (each, a “Note” and collectively, the “Notes”),
convertible into shares (the “Conversion Shares”) of the Company’s common stock, par value $0.001
per share (the “Common Stock”) at a conversion price of $0.35 per share (the “Conversion Price”),
and (ii) a five-year redeemable warrant, substantially in the form attached to the Memorandum as Exhibit C (each,
a “Warrant” and collectively, the “Warrants”), to purchase 2,500 shares of
Common Stock (the “Warrant Shares”). The Offering shall commence on the date of the Memorandum until
September 15, 2012, unless extended by the Company and the Placement Agent without notice to Purchasers for up to an additional
60-day period (the last date of the Offering shall hereinafter be referred to as the “Termination Date”).
The Units are being offered on a “reasonable efforts, all or none basis” as to 500 Units ($500,000) (the “Minimum
Amount”), and, thereafter, on a “reasonable efforts” basis up to 3,000 Units ($3,000,000) (the “Maximum
Amount”), provided that the Company and the Placement Agent have the option, as determined in their mutual
sole discretion, to offer up to an additional 2,000 Units ($2,000,000) (the “Over-Subscription Amount”).

 

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Section 1.2. Subscription for Units. Subject to the terms
and conditions of this Agreement, the undersigned Purchaser hereby subscribes for and agrees to purchase the number of Units set
forth on the signature page to this Agreement, at a purchase price of $1,000 per Unit (the “Purchase Price”).

 

Section 1.3. Payment. The Purchaser encloses herewith
a check payable to, or will immediately make a wire transfer payment to, “Signature Bank, as Escrow Agent for CorMedix Inc.,”
in the full amount of the Purchase Price of the Units being subscribed for.

 

Section 1.4. Deposit of Funds. In the event that the
Company does not affect a Closing (as defined below) on the Minimum Amount on or before the Termination Date, the Company will
refund all subscription funds, without deduction and/or interest accrued thereon.

 

Section 1.5. Acceptance of Subscription. The Purchaser
understands and agrees that the Company and the Placement Agent, in their mutual sole discretion, reserve the right to accept or
reject this or any other subscription for Units, in whole or in part, notwithstanding prior receipt by the Purchaser of notice
of acceptance of this or any other subscription. Neither the Company nor the Placement Agent will have any obligation hereunder
until the Company executes and delivers to the Purchaser an executed signature page to this Agreement. If a Purchaser’s subscription
is rejected in whole or the Offering is terminated, all funds received from the Purchaser will be returned without interest, penalty,
expense or deduction thereon, and this Agreement will thereafter be of no further force or effect. If a Purchaser’s subscription
is rejected in part, the funds for the rejected portion of such subscription will be returned without interest, penalty, expense
or deduction thereon, and this Agreement will continue in full force and effect to the extent such subscription was accepted.

 

Section 1.6. Closing Deliveries. Together with the check
for, or wire transfer of, the full Purchase Price of the Units being subscribed for, the Purchaser is delivering a completed and
executed signature page to this Agreement, a completed Purchaser questionnaire attached hereto as Annex A (the “Purchaser
Questionnaire”) and a completed Purchaser certification attached hereto as Annex B or Annex C as applicable (the
“Purchaser Certification”).

 

Section 1.7. Closings. The Company may hold an initial
closing (the “Initial Closing”) at any time and place, as determined solely by the Company, prior to
the Termination Date, after the receipt of accepted subscriptions and cleared funds equal to or greater than the Minimum Amount
and after all other conditions to closing have been satisfied or waived. After the Initial Closing, subsequent closings with respect
to additional Units may take place at any time and place, as determined solely by the Company, with respect to subscriptions accepted
prior to the Termination Date up to the Maximum Amount, or if the Company and Placement Agent elect in their mutual sole discretion,
the Over-Subscription Amount (each such closing, together with the Initial Closing, being referred to as a “Closing”).
Not later than ten (10) business days after the Termination Date, a final closing (the “Final Closing”)
will be held with respect to any Units sold but not closed as of such date. The date of each Closing shall be referred to herein
as a “Closing Date.”

 

Section 1.8. Offering to Accredited Investors. This Offering
is limited solely to accredited investors as defined in the Securities Act of 1933, as amended (the “Securities Act”),
and Rule 501 of Regulation D promulgated thereunder (“Regulation D”), and is being made without registration
under the Securities Act in reliance upon the exemptions contained in Section 4(2) of the Securities Act, Rule 506 of Regulation
D and Regulation S and applicable state securities laws. Each Purchaser must qualify as an accredited investor.

 

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Article 2 

 

Representations and Warranties

 

Section 2.1. Representations and Warranties of the Company. The Company hereby
represents and warrants to the Purchasers, as of the date hereof and as of the Closing Date of the Initial Closing and the date
of any other Closing (except as set forth in the SEC Documents (as defined below)), as follows:

 

(a) Organization, Good Standing and Power.
The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware and
has the requisite corporate power to own, lease and operate its properties and assets and to conduct its business as it is now
being conducted. The Company does not have any direct or indirect Subsidiaries (as defined in Section 2.1(g)) or
own securities of any kind in any other entity. The Company is duly qualified as a foreign corporation to do business and is in
good standing in every jurisdiction in which the nature of the business conducted or property owned by it makes such qualification
necessary except for any jurisdiction(s) (alone or in the aggregate) in which the failure to be so qualified will not have a Material
Adverse Effect. For the purposes of this Agreement, “Material Adverse Effect” means any material adverse
effect on the business, operations, properties, or financial condition of the Company and/or any condition, circumstance, or situation
that would prohibit or otherwise materially interfere with the ability of the Company to perform any of its obligations under this
Agreement or any of the Transaction Documents (as defined below) in any material respect.

 

(b) Authorization; Enforcement. The Company
has the requisite corporate power and authority to enter into and perform this Agreement, the Notes, the Warrants and the Registration
Rights Agreement dated as of the date hereof (the “Registration Agreement,” and collectively, with the
Notes, the Warrants and this Agreement, the “Transaction Documents”) and to issue and sell the Units,
the Notes, the Warrants and upon conversion or exercise thereof, to issue the Conversion Shares and Warrant Shares in accordance
with the terms hereof and thereof. The execution, delivery and performance of the Transaction Documents by the Company and the
consummation by it of the transactions contemplated thereby have been duly and validly authorized by all necessary corporate action,
and no further consent or authorization of the Company or its Boards of Directors or stockholders is required. When executed and
delivered by the Company, each of the Transaction Documents shall constitute a valid and binding obligation of the Company, enforceable
against the Company in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, reorganization,
moratorium, liquidation, conservatorship, receivership or similar laws relating to, or affecting generally the enforcement of,
creditor’s rights and remedies or by other equitable principles of general application.

 

(c) Capitalization. The authorized capital
stock and the issued and outstanding shares of capital stock of the Company is set forth in the Company’s SEC Documents.
All of the outstanding shares of the Common Stock and any other outstanding security of the Company have been duly authorized.
Except as set forth in this Agreement, the SEC Documents (as defined in Section 2.1(f)), no shares of Common Stock
or any other security of the Company are entitled to preemptive rights, rights of first refusal or similar agreements or registration
rights and there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever
relating to, or securities or rights convertible into, any shares of capital stock of the Company. Furthermore, except as set forth
in this Agreement and the SEC Documents, there are no equity plans, contracts, commitments, understandings, or arrangements by
which the Company is or may become bound to issue additional shares of the capital stock of the Company or options, securities
or rights convertible into shares of capital stock of the Company. Except for customary transfer restrictions contained in agreements
entered into by the Company in order to sell restricted securities or as otherwise described in the Company’s SEC Documents,
the Company is not a party to or bound by any agreement or understanding granting registration or anti-dilution rights to any person
with respect to any of its equity or debt securities. Except as set forth in the Company’s SEC Documents, the Company is
not a party to, and it has no knowledge of, any agreement or understanding restricting the voting or transfer of any shares of
the capital stock of the Company. The Company has not made any representations regarding equity incentives to any officer, employee,
director or consultant that are required to be disclosed in the Company’s SEC Documents and not disclosed in the SEC Documents.

 

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(d) Issuance of Securities. The Units, the
Notes and the Warrants (the “Securities”) to be issued at each Closing have been duly authorized by all
necessary corporate action and, when paid for or issued in accordance with the terms hereof, the Notes and the Warrants shall be
validly issued and outstanding, free and clear of all mortgage, pledge, hypothecation, rights of others, rights of first refusal,
claim, security interest, encumbrance, title, defect, voting trust agreement, option, lien, taxes, charge or similar restrictions
or limitations (collectively, “Liens”). When the Conversion Shares and the Warrant Shares are issued
in accordance with the terms of this Agreement and as set forth in the Notes and the Warrants, as applicable, such shares will
be duly authorized by all necessary corporate action and validly issued and outstanding, fully paid and nonassessable, free and
clear of all liens, encumbrances and rights of refusal of any kind and the holders shall be entitled to all rights accorded to
a holder of Common Stock.

 

(e) No Conflicts. The execution, delivery
and performance of the Transaction Documents by the Company, the performance by the Company of its obligations under the Notes
and the Warrants, the consummation by the Company of the transactions contemplated hereby and thereby, and the issuance of the
Units, Notes and Warrants as contemplated hereby, do not and will not (i) violate or conflict with any provision of the Company’s
Certificate of Incorporation (the “Certificate”) or Bylaws (the “Bylaws”),
each as amended to date, (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would
become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement,
mortgage, deed of trust, indenture, note, bond, license, lease agreement, instrument or obligation to which the Company is a party
or by which the Company’s properties or assets are bound, (iii) result in a violation of any federal, state, local or foreign
statute, rule, regulation, order, judgment or decree (including federal and state securities laws and regulations) applicable to
the Company or by which any property or asset of the Company is bound or affected, or (iv) create or impose a lien, mortgage, security
interest, charge or encumbrance of any nature on any property or asset of the Company under any agreement or any commitment to
which the Company is a party or by which the Company is bound or by which any of their respective properties or assets are bound,
except, in the case of clause (ii), for such conflicts, defaults, terminations, amendments, acceleration, cancellations and violations
as would not, individually or in the aggregate, have a Material Adverse Effect. The Company is not required under federal, state,
foreign or local law, rule or regulation to obtain any consent, authorization or order of, or make any filing or registration with,
any court or governmental agency in order for it to execute, deliver or perform any of its obligations under the Transaction Documents
or issue and sell the Securities in accordance with the terms hereof (other than the filing of a Form D pursuant to Regulation
D and counterpart filings under applicable state securities laws, rules or regulations). The business of the Company is not being
conducted in violation of any laws, ordinances or regulations of any governmental entity.

 

(f) SEC Documents, Financial Statements. Prior
to the date hereof, the Common Stock of the Company is registered pursuant to Section 12(b) or 12(g) of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”), and the Company has filed (subject to filings with respect
to certain periodic filings made pursuant to Rule 12b-25 of the Exchange Act) all reports, schedules, forms, statements and other
documents required to be filed by it with the Securities Exchange Commission (“SEC”) pursuant to the
reporting requirements of the Exchange Act, including, but not limited to, all Annual Reports on Form 10-K, Quarterly Reports on
From 10-Q and Current Reports on Form 8-K (all of the foregoing filed with the SEC prior to the date hereof and all exhibits included
therein and financial statements and schedules thereto and documents incorporated by reference therein, being hereinafter referred
to herein as the “SEC Documents”). The SEC Documents have been made available to the Purchaser via the
SEC’s EDGAR system. As of their respective dates, the SEC Documents complied in all material respects with the requirements
of the Exchange Act and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of
the SEC Documents, at the time they were filed with the SEC, contained any untrue statement of a material fact or omitted to state
a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading. In addition, as of each Closing, the SEC Documents, together with any additional documents
filed with the SEC after the date hereof and through the date of Closing, when taken in their entirety, shall not contain any untrue
statements of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the
statements therein, in light of the date upon which they were made and the circumstances under which they were made, not misleading.
As of their respective dates, the financial statements of the Company included in the SEC Documents (“Company Financial
Statements”) complied as to form in all material respects with applicable accounting requirements and the published
rules and regulations of the SEC with respect thereto as in effect at the time of the filing. The Company Financial Statements
have been prepared in accordance with United States generally accepted accounting principles (“GAAP”),
consistently applied, during the periods involved except (i) as may be otherwise indicated in such Company Financial Statements
or the notes thereto; or (ii) in the case of unaudited interim statements, to the extent they may not include footnotes or may
be condensed or summary statements) and fairly present in all material respects the consolidated financial position of the Company
and its consolidated subsidiary, as of the dates thereof and the consolidated results of their operations and cash flows for the
periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments).

 

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(g) Subsidiaries. The Company has no Subsidiaries.
For the purposes of this Agreement, “Subsidiary” shall mean any corporation or other entity of which
at least a majority of the securities or other ownership interest having ordinary voting power (absolutely or contingently) for
the election of directors or other persons performing similar functions are at the time owned directly or indirectly by the Company.

 

(h) No Material Adverse Change. Since December
31, 2011, the Company has not experienced or suffered any Material Adverse Effect.

 

(i) No Undisclosed Liabilities. Other than
as set forth in the Company’s SEC Documents, the Company has not incurred any liabilities, obligations, claims or losses
(whether liquidated or unliquidated, secured or unsecured, absolute, accrued, contingent or otherwise) other than those incurred
in the ordinary course of the Company’s business or which, individually or in the aggregate, are not reasonably likely to
have a Material Adverse Effect.

 

(j) No Undisclosed Events or Circumstances.
Since December 31, 2011, no event or circumstance has occurred or exists with respect to the Company or its businesses, properties,
prospects, operations or financial condition, which, under applicable law, rule or regulation, requires public disclosure or announcement
by the Company but which has not been so publicly announced or disclosed.

 

(k) Indebtedness. The financial statements
in the SEC Documents reflect, to the extent required, as of the date thereof all outstanding secured and unsecured Indebtedness
(as defined below) of the Company, or for which the Company has commitments. For the purposes of this Agreement, “Indebtedness”
shall include, without limitation, (a) any liabilities for borrowed money or other amounts owed, (b) all guaranties, endorsements
and other contingent obligations in respect of Indebtedness of others, whether or not the same are or should be reflected in the
Company’s balance sheet (or the notes thereto), except guaranties by endorsement of negotiable instruments for deposit or
collection or similar transactions in the ordinary course of business; and (c) the present value of any lease payments in excess
of $100,000 due under leases required to be capitalized in accordance with GAAP. The Company is not in default with respect to
any Indebtedness.

 

(l) Title to Assets. The Company has good
and valid title to all of its real and personal property reflected in the SEC Documents, free and clear of any mortgages, pledges,
charges, liens, security interests or other encumbrances, except for those that, individually or in the aggregate, do not cause
a Material Adverse Effect. Any leases of the Company are valid and subsisting and in full force and effect.

 

(m) Actions Pending. Except as disclosed in
the SEC Documents, there is no action, suit, claim, investigation, arbitration, alternate dispute resolution proceeding or other
proceeding pending or, to the knowledge of the Company, threatened against the Company which questions the validity of this Agreement
or any of the other Transaction Documents or any of the transactions contemplated hereby or thereby or any action taken or to be
taken pursuant hereto or thereto. Except as disclosed in the SEC Documents, there is no action, suit, claim, investigation, arbitration,
alternate dispute resolution proceeding or other proceeding pending or, to the knowledge of the Company, threatened against or
involving the Company, or any of its properties or assets, which individually or in the aggregate, would reasonably be expected,
if adversely determined, to have a Material Adverse Effect. Except as disclosed in the SEC Documents, there are no outstanding
orders, judgments, injunctions, awards or decrees of any court, arbitrator or governmental or regulatory body against the Company
or any officers or directors of the Company in their capacities as such, which individually or in the aggregate, could reasonably
be expected to have a Material Adverse Effect.

 

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(n) Compliance with Law. The Company has been
and is presently conducting their respective businesses in material compliance with all applicable federal, state and local governmental
laws, rules, regulations and ordinances, except such that, individually or in the aggregate, the noncompliance therewith could
not reasonably be expected to have a Material Adverse Effect. The Company has all franchises, permits, licenses, consents and other
governmental or regulatory authorizations and approvals necessary for the conduct of its business as now being conducted by it
unless the failure to possess such franchises, permits, licenses, consents and other governmental or regulatory authorizations
and approvals, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.

 

(o) Taxes. The Company has accurately prepared
and filed all federal, state and other tax returns required by law to be filed by it, has paid or made provisions for the payment
of all taxes shown to be due and all additional assessments, and adequate provisions have been and are reflected in the financial
statements of the Company for all current taxes and other charges to which the Company is subject and which are not currently due
and payable. Except as disclosed in the SEC Documents, to the best of the Company’s knowledge, none of the federal income
tax returns of the Company has been audited by the Internal Revenue Service. Except as disclosed in the SEC Documents, the Company
has no knowledge of any additional assessments, adjustments or contingent tax liability (whether federal or state) of any nature
whatsoever, whether pending or threatened against the Company for any period, nor of any basis for any such assessment, adjustment
or contingency.

 

(p) Certain Fees. Except as set forth in the
Memorandum, the Company has not employed any broker or finder or incurred any liability for any brokerage or investment banking
fees, commissions, finders’ structuring fees, financial advisory fees or other similar fees in connection with the Transaction
Documents.

 

(q) Disclosure. Except for the information
concerning the transactions contemplated by this Agreement, the Company confirms that neither it nor any other person acting on
its behalf has provided any of the Purchasers or their agents or counsel with any information that constitutes or might constitute
material, nonpublic information. To the best of the Company’s knowledge, neither this Agreement nor any other documents,
certificates or instruments furnished to the Purchasers by or on behalf of the Company in connection with the transactions contemplated
by this Agreement contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the
statements made herein or therein, in the light of the circumstances under which they were made herein or therein, not misleading.

 

(r) Operation of Business.
Except as disclosed in the Company’s SEC Documents, the Company owns or possesses the rights to all trademarks, trade
names, service marks, service mark registrations, service names, websites and intellectual property
rights relating thereto, software, documentation, original works of authorship, patents, patent rights, copyrights, inventions,
improvements, licenses, approvals, governmental authorizations, trade secrets and other intellectual property rights and all applications
and registrations therefor and any patentable improvements or copyrightable derivative works thereof,
which are necessary for the conduct of its business as now conducted and/or as the Company believes will be conducted in the future
by it without any conflict with the rights of others.

 

(s) Books and Records; Internal Accounting Controls.
The records and documents of the Company accurately reflect in all material respects the information relating to the business of
the Company, the location and collection of their assets, and the nature of all transactions giving rise to the obligations or
accounts receivable of the Company. The Company is in material compliance with all provisions of the Sarbanes-Oxley Act of 2002
which are applicable to it as of the applicable Closing Date. The Company maintains a system of internal control over financial
reporting (as such term is defined in Rule 13a-15(f) under the Exchange Act) that complies in all material respects with the requirements
of the Exchange Act and has been designed by the Company’s principal executive officer and principal financial officer, or
under their supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with generally accepted accounting principles. Except as disclosed in
the SEC Documents, the Company’s internal control over financial reporting is effective and the Company is not aware of any
material weaknesses in its internal control over financial reporting. The Company maintains disclosure controls and procedures
(as such term is defined in Rule 13a-15 under the Exchange Act) that are effective in ensuring that information required to be
disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and
reported, within the time periods specified in the rules and forms of the SEC, including, without limitation, controls and procedures
designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange
Act is accumulated and communicated to the Company’s management, including its principal executive officer or officers and
its principal financial or financial offers, as appropriate, to allow timely decisions regarding required disclosure.

 

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(t) Material Agreements. All material agreements
to which the Company is a party or to which its property or assets are subject that are required to be filed as exhibits to the
SEC Documents under Item 601 of Regulation S-K (each, a “Material Agreement”) are included as part of, or specifically
identified in, the SEC Documents. The Company has in all material respects performed all the obligations required to be performed
by it to date under the foregoing agreements, has received no notice of default by the Company, and, to the Company’s knowledge,
is not in default under any Material Agreement now in effect, the result of which would individually or in the aggregate be reasonably
likely to have a Material Adverse Effect.

 

(u) Transactions with Affiliates. Except as
set forth in the SEC Documents and otherwise contemplated by this Agreement, there are no loans, leases, agreements, contracts,
royalty agreements, management contracts or arrangements or other continuing transactions between (a) the Company, or any of their
respective customers or suppliers, and (b) any officer, employee, consultant or director of the Company, or any person owning at
least 5% of the outstanding capital stock of the Company or any member of the immediate family of such officer, employee, consultant,
director or stockholder or any corporation or other entity controlled by such officer, employee, consultant, director or stockholder,
or a member of the immediate family of such officer, employee, consultant, director or stockholder which, in each case, is required
to be disclosed in the SEC Documents or in the Company’s most recently filed definitive proxy statement on Schedule 14A,
that is not so disclosed in the SEC Documents or in such proxy statement.

 

(v) Securities Act of 1933. The Company has
complied and will comply with all applicable federal and state securities laws in connection with the offer, issuance and sale
of the Securities hereunder. Neither the Company nor anyone acting on its behalf, directly or indirectly, has or will sell, offer
to sell or solicit offers to buy any of the Securities or similar securities to, or solicit offers with respect thereto from, or
enter into any negotiations relating thereto with, any person, or has taken or will take any action so as to bring the issuance
and sale of any of the Securities under the registration provisions of the Securities Act and applicable state securities laws,
and neither the Company nor any of its affiliates, nor any person acting on its or their behalf, has engaged in any form of general
solicitation or general advertising (within the meaning of Regulation D under the Securities Act) in connection with the offer
or sale of any of the Securities.

 

(w) Employees. The Company does not have any
collective bargaining arrangements or agreements covering any of its employees. Except as set forth in the SEC Documents, the Company
does not have any employment contract, agreement regarding proprietary information, non-competition agreement, non-solicitation
agreement, confidentiality agreement, or any other similar contract or restrictive covenant, relating to the right of any officer,
employee or consultant to be employed or engaged by the Company required to be disclosed in the SEC Documents that is not so disclosed.
No officer, consultant or key employee of the Company whose termination, either individually or in the aggregate, would be reasonably
likely to have a Material Adverse Effect, has terminated or, to the knowledge of the Company, has any present intention of terminating
his or her employment or engagement with the Company.

 

(x) Absence of Certain Developments. Since
the date of the Company’s financial statements in the latest of the SEC Documents, there has not occurred any undisclosed
event that (i) has caused a Material Adverse Effect or any occurrence, circumstance or combination thereof that reasonably would
be likely to result in a Material Adverse Effect, (ii) the Company has not incurred any material liabilities (contingent or otherwise)
other than (A) trade payables and accrued expenses incurred in the ordinary course of business and (B) liabilities that would not
be required to be reflected in the Company’s financial statements pursuant to GAAP or that would not be required to be disclosed
in filings made with the SEC, (iii) the Company has not (A) declared or paid any dividends, (B) amended or changed the Certificate
or Incorporation or Bylaws of the Company, or (C) altered its method of accounting or the identity of its officers and (iv) the
Company has not made a material change in officer compensation except in the ordinary course of business consistent with past practice.

 

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(y) Investment Company Act Status. To the
knowledge of the Company, the Company is not, and as a result of and immediately upon each Closing will not be, an “investment
company” or a company “controlled” by an “investment company,” within the meaning of the Investment
Company Act of 1940, as amended (the “Investment Company Act”).

 

(z) Independent Nature of Purchasers. The
Company acknowledges that the obligations of each Purchaser under the Transaction Documents are several and not joint with the
obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance of the obligations of
any other Purchaser under the Transaction Documents. The Company acknowledges that the decision of each Purchaser to purchase Securities
pursuant to this Agreement has been made by such Purchaser independently of any other purchase and independently of any information,
materials, statements or opinions as to the business, affairs, operations, assets, properties, liabilities, results of operations,
condition (financial or otherwise) or prospects of the Company which may have made or given by any other Purchaser or by any agent
or employee of any other Purchaser, and no Purchaser or any of its agents or employees shall have any liability to any Purchaser
(or any other person) relating to or arising from any such information, materials, statements or opinions. The Company acknowledges
that nothing contained herein, or in any Transaction Document, and no action taken by any Purchaser pursuant hereto or thereto,
shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or
create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the
transactions contemplated by the Transaction Documents. The Company acknowledges that for reasons of administrative convenience
only, the Transaction Documents have been prepared by counsel for one of the Purchasers and such counsel does not represent all
of the Purchasers but only such Purchaser and the other Purchasers have retained their own individual counsel with respect to the
transactions contemplated hereby. The Company acknowledges that it 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 the Purchasers.
The Company acknowledges that such procedure with respect to the Transaction Documents in no way creates a presumption that the
Purchasers are in any way acting in concert or as a group with respect to the Transaction Documents or the transactions contemplated
hereby or thereby. The Company acknowledges that 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.

 

(aa) No Integrated Offering. Neither the Company,
nor to the Company’s knowledge, any of its affiliates, or any person acting on its or their behalf, has directly or indirectly
made any offers or sales of any security or solicited any offers to buy any security under circumstances that would cause the offering
of the Securities pursuant to this Agreement to be integrated with prior offerings by the Company for purposes of the Securities
Act which would prevent the Company from selling the Securities pursuant to Regulation D and Rule 506 thereof under the Securities
Act, or any applicable exchange-related stockholder approval provisions, nor will the Company or any of its affiliates or subsidiaries
take any action or steps that would cause the offering of the Securities to be integrated with other offerings if to do so would
prevent the Company from selling Securities pursuant to Regulation D and Rule 506 thereof under the Securities Act or otherwise
prevent a completed offering of Securities hereunder. The Company does not have any registration statement pending before the SEC
or currently under the SEC’s review, and since December 31, 2011, the Company has not offered or sold any of its equity securities
or debt securities convertible into shares of Common Stock.

 

(bb) Dilutive Effect. The Company understands
and acknowledges that its obligation to issue Conversion Shares upon conversion of the Notes and Warrant Shares upon exercise of
the Warrants in accordance with this Agreement, the Notes and the Warrants is absolute and unconditional regardless of the dilutive
effect that such issuance may have on the ownership interest of other stockholders of the Company.

 

(cc) DTC Status. To the Company’s knowledge,
the Company’s transfer agent is a participant in and the Common Stock is eligible for transfer pursuant to the Depository
Trust Company Automated Securities Transfer Program.

 

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(dd) Governmental Approvals. Except for the
filing of any notice prior or subsequent to the applicable Closing that may be required under applicable state and/or federal securities
laws (which if required, shall be filed on a timely basis) and the declaration of the effectiveness of any registration statements
filed by the Company pursuant to the Transaction Documents, no authorization, consent, approval, license, exemption of, filing
or registration with any court or governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign,
is or will be necessary for, or in connection with, the execution or delivery of the Conversion Shares, the Warrant Shares or for
the performance by the Company of its obligations under the Transaction Documents.

 

(ee) Insurance. The Company is insured by
insurers of recognized financial responsibility against such losses and risks and in such amounts as management of the Company
believes to be prudent and customary in the businesses in which the Company is engaged. The Company has not been refused any insurance
coverage sought or applied for and the Company has no reason to believe that it will not be able to renew its existing insurance
coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue
its business at a cost that would not have a Material Adverse Effect.

 

(ff) No General Solicitation. The Company
has not, and to the Company’s knowledge, no other person has conducted any “general solicitation,” as such term
is defined in Regulation D promulgated under the Securities Act, with respect to any of the Units being offered hereby.

 

Section 2.2. Representations and Warranties of the Purchaser.
The Purchaser hereby represents, warrants and covenants to the Company as follows:

 

(a) Capacity. The Purchaser: (i) if a natural
person, represents that the Purchaser has reached the age of 21 and has full authority, legal capacity and competence to enter
into, execute and deliver this Agreement and any of the other Transaction Documents to which the Purchaser is a party and all other
related agreements or certificates and to take all actions required pursuant hereto and thereto and to carry out the provisions
hereof and thereof, or (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock
company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose
of acquiring the Units and such entity is duly organized, validly existing and in good standing under the laws of the state of
its organization.

 

(b) Authorization and Power. The Purchaser
has the requisite power and authority to enter into and perform the Transaction Documents and to purchase the Securities being
sold to it hereunder. The execution, delivery and performance of the Transaction Documents by the Purchaser and the consummation
by it of the transactions contemplated hereby have been duly authorized by all necessary corporate or partnership action, and no
further consent or authorization of the Purchaser or its Board of Directors, stockholders, or partners, as the case may be, is
required. When executed and delivered by the Purchaser, the other Transaction Documents shall constitute valid and binding obligations
of the Purchaser enforceable against the Purchaser in accordance with their terms, except as such enforceability may be limited
by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, conservatorship, receivership or similar laws relating
to, or affecting generally the enforcement of, creditor’s rights and remedies or by other equitable principles of general
application.

 

(c) Acquisition for Investment. The Purchaser
is purchasing the Securities solely for its own account and not with a view to or for sale in connection with distribution. The
Purchaser does not have a present intention to sell any of the Securities, nor a present arrangement (whether or not legally binding)
or intention to effect any distribution of any of the Securities to or through any person or entity; provided, however
, that by making the representations herein, the Purchaser does not agree to hold the Securities for any minimum or other specific
term and reserves the right to dispose of the Securities at any time in accordance with federal and state securities laws applicable
to such disposition. The Purchaser acknowledges that it (i) has such knowledge and experience in financial and business matters
such that the Purchaser is capable of evaluating the merits and risks of the Purchaser’s investment in the Company, (ii)
is able to bear the financial risks associated with an investment in the Securities and (iii) has been given full access to such
records of the Company and to the officers of the Company as it has deemed necessary or appropriate to conduct its due diligence
investigation.

 

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(d) Rule 144. The Purchaser understands that
the Securities must be held indefinitely unless such Securities are registered under the Securities Act or an exemption from registration
is available. The Purchaser acknowledges that such person is familiar with Rule 144 of the rules and regulations of the SEC, as
amended, promulgated pursuant to the Securities Act (“Rule 144”), and that the Purchaser has been advised
that Rule 144 permits resales only under certain circumstances. The Purchaser understands that to the extent that Rule 144 is not
available, the Purchaser will be unable to sell any Securities without either registration under the Securities Act or the existence
of another exemption from such registration requirement.

 

(e) General. The Purchaser understands that
the Securities are being offered and sold in reliance on a transactional exemption from the registration requirements of federal
and state securities laws and the Company is relying upon the truth and accuracy of the representations, warranties, agreements,
acknowledgments and understandings of the Purchaser set forth herein in order to determine the applicability of such exemptions
and the suitability of such Purchaser to acquire the Securities. The Purchaser understands that no United States federal or state
agency or any government or governmental agency has passed upon or made any recommendation or endorsement of the Securities. Commencing
on the date that the Purchaser was initially contacted regarding an investment in the Securities, the Purchaser has not engaged
in trading (including, but not limited to, any short sale) of the Common Stock and will not engage in any trading of the Common
Stock prior to public announcement of the transactions contemplated by this Agreement. The Purchaser agrees that no oral or written
representations have been made, or oral or written information furnished, to the Purchaser, if any, in connection with the Offering
which are in any way inconsistent with the information contained in the Transaction Documents.

 

(f) Residency. The Purchaser is a resident
of the jurisdiction set forth in the Purchaser Questionnaire.

 

(g) No General Solicitation. The Purchaser
acknowledges that the Securities were not offered to such Purchaser by means of any form of general or public solicitation or general
advertising, or publicly disseminated advertisements or sales literature, including (i) any advertisement, article, notice or other
communication published in any newspaper, magazine, or similar media, or broadcast over television or radio, or (ii) any seminar
or meeting to which the Purchaser was invited by any of the foregoing means of communications. The Purchaser, in making the decision
to purchase the Securities, has relied upon independent investigation made by it and has not relied on any information or representations
made by third parties.

 

(h) Accredited Investor. The Purchaser is
an “accredited investor” (as defined in Rule 501 of Regulation D), and the Purchaser has such experience in business
and financial matters that it is capable of evaluating the merits and risks of an investment in the Securities. The Purchaser satisfies
any special suitability or other applicable requirements of its state of residence and/or the state in which the transaction by
which the Units are purchased occurs.

 

(i) FINRA. The Purchaser is neither a registered
representative under the Financial Industry Regulatory Authority (“FINRA”), a member of FINRA or associated
or affiliated with any member of FINRA, nor a broker-dealer registered with the SEC under the Exchange Act or engaged in a business
that would require it to be so registered, nor is it an affiliate of such a broker-dealer or any Person engaged in a business that
would require it to be registered as a broker-dealer. In the event the Purchaser is a member of FINRA, or associated or affiliated
with a member of FINRA, the Purchaser agrees, if requested by FINRA, to sign a lock-up, the form of which shall be satisfactory
to FINRA, with respect to the Units. The Purchaser acknowledges that an investment in the Securities is speculative and involves
a high degree of risk.

 

(j) No Offer Until Suitability Determination.
The Purchaser acknowledges that any delivery to the Purchaser of the documents relating to the Offering of the Units prior to the
determination by the Company and the Placement Agent of the Purchaser's suitability will not constitute an offer of the Units until
such determination of suitability is made.

 

(k) Certain Fees. The Purchaser has not employed
any broker or finder or incurred any liability for any brokerage or investment banking fees, commissions, finders’ structuring
fees, financial advisory fees or other similar fees in connection with the Transaction Documents. The Purchaser understands and
acknowledges that John Carris Investments LLC is the exclusive Placement Agent to the Company and is receiving the compensation
set forth in the Memorandum.

 

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(l) Independent Investment. The Purchaser
has not agreed to act with any of the other Purchasers for the purpose of acquiring, holding, voting or disposing of the Securities
purchased hereunder for purposes of Section 13(d) under the Exchange Act, and the Purchaser is acting independently with respect
to its investment in the Securities.

 

(m) Irrevocability. The Purchaser hereby acknowledges
and agrees that the Purchaser is not entitled to cancel, terminate or revoke this subscription, and any agreements made in connection
herewith shall survive its death or disability.

 

(n) Restrictive Legends. The Purchaser understands
and agrees that all certificates representing the Securities will contain restrictive legends substantially in the form as follows:

 

THIS SECURITY HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL
OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.

 

(o) OFAC Regulation. The Purchaser should
check the Office of Foreign Assets Control (“OFAC”) website at <http://www.treas.gov/ofac> before making
the following representations. The Purchaser represents that the amounts invested by it in the Company in the Offering were
not and are not directly or indirectly derived from activities that contravene federal, state or international laws and regulations,
including anti-money laundering laws and regulations. Federal regulations and Executive Orders administered by OFAC prohibit, among
other things, the engagement in transactions with, and the provision of services to, certain foreign countries, territories, entities
and individuals. The lists of OFAC prohibited countries, territories, persons and entities can be found on the OFAC website at
<http://www.treas.gov/ofac>. In addition, the programs administered by OFAC (the “OFAC Programs”)
prohibit dealing with individuals or entities in certain countries regardless of whether such individuals or entities appear on
the OFAC lists. To the best of the Purchaser’s knowledge, none of: (1) the Purchaser; (2) any person controlling or controlled
by the Purchaser; (3) if the Purchaser is a privately-held entity, any person having a beneficial interest in the Purchaser; or
(4) any person for whom the Purchaser is acting as agent or nominee in connection with this investment is a country, territory,
individual or entity named on an OFAC list, or a person or entity prohibited under the OFAC Programs. Please be advised that the
Company may not accept any amounts from a prospective investor if such prospective investor cannot make the representations set
forth in this paragraph. The Purchaser agrees to promptly notify the Company and the Placement Agent should the Purchaser become
aware of any change in the information set forth in these representations. The Purchaser understands and acknowledges that, by
law, the Company may be obligated to “freeze the account” of the Purchaser, either by prohibiting additional subscriptions
from the Purchaser, declining any redemption requests and/or segregating the assets in the account in compliance with governmental
regulations, and the Placement Agent may also be required to report such action and to disclose the Purchaser’s identity
to OFAC. The Purchaser further acknowledges that the Company may, by written notice to the Purchaser, suspend the redemption rights,
if any, of the Purchaser if the Company reasonably deems it necessary to do so to comply with anti-money laundering regulations
applicable to the Company and the Placement Agent or any of the Company’s other service providers. These individuals include
specially designated nationals, specially designated narcotics traffickers and other parties subject to OFAC sanctions and embargo
programs.

 

    	11

    	 

    

 

(p) Foreign Bank. If the Purchaser is affiliated
with a non-U.S. banking institution (a “Foreign Bank”), or if the Purchaser receives deposits from, makes
payments on behalf of, or handles other financial transactions related to a Foreign Bank, the Purchaser represents and warrants
to the Company that: (1) the Foreign Bank has a fixed address, other than solely an electronic address, in a country in which the
Foreign Bank is authorized to conduct banking activities; (2) the Foreign Bank maintains operating records related to its banking
activities; (3) the Foreign Bank is subject to inspection by the banking authority that licensed the Foreign Bank to conduct banking
activities; and (4) the Foreign Bank does not provide banking services to any other Foreign Bank that does not have a physical
presence in any country and that is not a regulated affiliate.

 

(q) ERISA (For ERISA plans only). The fiduciary
of the ERISA plan represents that such fiduciary has been informed of and understands the Company’s investment objectives,
policies and strategies, and that the decision to invest “plan assets” (as such term is defined in ERISA) in the Company
is consistent with the provisions of ERISA that require diversification of plan assets and impose other fiduciary responsibilities.
The Purchaser fiduciary or plan (a) is responsible for the decision to invest in the Company; (b) is independent of the Company
or any of its affiliates; (c) is qualified to make such investment decision; and (d) in making such decision, the Purchaser fiduciary
or plan has not relied primarily on any advice or recommendation of the Company or any of its affiliates.

 

(r) Confidentiality. THE PURCHASER ACKNOWLEDGES
AND AGREES THAT THE COMMON STOCK IS PUBLICLY TRADED ON THE NYSE MKT AND THAT BY ACCEPTING THE MEMORANDUM THE PURCHASER AGREES WITH
THE COMPANY AND THE PLACEMENT AGENT TO MAINTAIN IN STRICT CONFIDENCE ALL NON-PUBLIC INFORMATION, INCLUDING, BUT NOT LIMITED TO,
THE EXISTENCE OF THE OFFERING AND ANY OTHER NON-PUBLIC INFORMATION REGARDING THE COMPANY OBTAINED FROM THIS MEMORANDUM AND ANY
OF THE OTHER TRANSACTION DOCUMENTS AND/OR FROM THE COMPANY, THE PLACEMENT AGENT, AND/OR EITHER OF THEIR AUTHORIZED AGENTS. THE
COMPANY HAS CAUSED THESE MATERIALS TO BE DELIVERED TO THE PURCHASER IN RELIANCE UPON SUCH AGREEMENT AND UPON RULE 100(B)(2)(II)
OF REGULATION FD AS PROMULGATED BY THE SEC.

 

Article 3 

 

Covenants by the Company

 

Unless otherwise specified
in this Article, for so long as any Notes have not been paid in full or converted in full and/or any Warrants are outstanding,
the Company covenants with the Purchaser as follows, which covenants are for the benefit of the Purchaser and their respective
permitted assignees:

 

Section 3.1. Securities Compliance. The Company shall
notify the SEC in accordance with its rules and regulations, of the transactions contemplated by any of the Transaction Documents
and shall take all other necessary action and proceedings as may be required and permitted by applicable law, rule and regulation,
for the legal and valid issuance of the Securities to the Purchaser, or their respective subsequent holders.

 

Section 3.2. Registration and
Listing. The Company shall use commercially reasonable efforts cause its Common Stock to continue to be registered under Sections
12(b), 12(g) or 15(d) of the Exchange Act, to comply in all material respects with its reporting and filing obligations under
the Exchange Act, to comply with all requirements related to any registration statement filed pursuant to this Agreement, and to
not take any action or file any document (whether or not permitted by the Securities Act or the rules promulgated thereunder) to
terminate or suspend such registration or to terminate or suspend its reporting and filing obligations under the Exchange Act or
Securities Act, unless otherwise required by applicable law, regulation or rule. The Company will use commercially reasonable efforts
to take all action reasonably necessary to continue the listing, trading and/or quotation of its Common Stock on one or more of
the OTC Bulletin Board, the OTC Markets Group, Pink Sheets, LLC, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq
Global Select Market, the New York Stock Exchange, or the New York Stock Exchange MKT, or any successor thereto as the case may
be (each, a “Trading Market”). The Company further covenants that it will take such further reasonable
action as the Purchaser may reasonably request from time to time to enable the Purchaser to sell the Securities without registration
under the Securities Act pursuant to the exemption provided by Rule 144 promulgated under the Securities Act, including,
without limitation, promptly obtaining any required legal opinions from Company counsel at the Company’s expense.
Upon the request of the Purchaser, the Company shall deliver to the Purchaser a written certification of a duly authorized officer
as to whether it has complied with such requirements.

 

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Section 3.3. Inspection Rights. Provided a Purchaser
agrees that it will not trade any shares of Common Stock if it learns of material, non-public information from such inspection
until such information becomes public, for so long as any of the Notes or the Warrants are outstanding, the Company shall permit,
during normal business hours once a month upon reasonable request and reasonable notice by the Purchasers, (i) Purchasers (or any
employees, agents or representatives thereof) holding no less than fifty percent (50%) of the aggregate principal amount of all
Notes then outstanding, and/or (ii) Purchasers (or any employees, agents or representatives thereof) holding Warrants to purchase
fifty percent (50%) of the then aggregate number of Warrant Shares underlying then outstanding Warrants, to examine the publicly
available, non-confidential records and books of account of, and visit and inspect the properties, assets, operations and business
of the Company, and to discuss the publicly available, non-confidential affairs, finances and accounts of the Company with any
of its officers, consultants, directors, and key employees; provided, however, nothing to the contrary is provided
herein or elsewhere, if the Notes are in default, then the above limitations on inspection rights are terminated.

 

Section 3.4. Compliance with Laws. The Company shall
comply in all material respects with all applicable laws, rules, regulations and orders, noncompliance with which would be reasonably
likely to have a Material Adverse Effect.

 

Section 3.5. Keeping of Records and Books of Account.
The Company shall keep adequate records and books of account, in which complete entries will be made in accordance with GAAP consistently
applied, reflecting all financial transactions of the Company, and in which, for each fiscal year, all proper reserves for depreciation,
depletion, obsolescence, amortization, taxes, bad debts and other purposes in connection with its business shall be made.

 

Section 3.6. Reporting Requirements. If the SEC ceases
making periodic reports available via the Internet without charge, then the Company shall furnish the following to the Purchaser
so long as such Purchaser shall be obligated hereunder to purchase the Securities or shall beneficially own any of the Securities:

 

(a) Quarterly Reports filed with the SEC on Form
10-Q as soon as practical after the document is filed with the SEC, and in any event within five days after the document is filed
with the SEC;

 

(b) Annual Reports filed with the SEC on Form 10-K
as soon as practical after the document is filed with the SEC, and in any event within five days after the document is filed with
the SEC; and

 

(c) Copies of all notices, information and proxy
statements in connection with any meetings, that are, in each case, provided to holders of shares of Common Stock, contemporaneously
with the delivery of such notices or information to such holders of Common Stock.

 

Section 3.7. Other Agreements. The Company shall not
enter into any agreement in which the terms of such agreement would restrict or impair the right or ability to perform of the Company
under any Transaction Document.

 

Section 3.8. Use of Proceeds.
The proceeds from the sale of the Securities hereunder shall be used by the Company for marketing, manufacturing, rent and
utilities, licensing obligations, payroll and working capital and general corporate purposes. In no
event shall the proceeds be used to redeem any Common Stock or securities convertible, exercisable or exchangeable into Common
Stock or to settle any outstanding litigation or used to repay debt, including, but not limited to, any Indebtedness to the Company’s
current directors and executive officers, but excluding accounts payable and accrued expenses incurred in the ordinary course of
business.

 

Section 3.9. Reporting Status. So long as a Purchaser
beneficially owns any of the Securities, the Company shall use commercially reasonable efforts to timely file all reports required
to be filed with the SEC pursuant to the Exchange Act, and the Company shall use commercially reasonable efforts not to terminate
its status as an issuer required to file reports under the Exchange Act even if the Exchange Act or the rules and regulations thereunder
would permit such termination.

 

Section 3.10. Disclosure of Transaction. The Company
shall issue a press release (the “Press Release”) and file with the SEC a Current Report on Form 8-K
(the “Form 8-K”) describing the material terms of the transactions contemplated hereby (and attaching
as exhibits thereto this Agreement, the form of Note, the form of Warrant and the Press Release) promptly following the date of
execution of this Agreement but in no event later than as required by the rules and regulations of the SEC.

 

    	13

    	 

    

 

Section 3.11. Disclosure of Material Information. Except
as may be contained in this Agreement and the Memorandum, the Company covenants and agrees that neither it nor any other person
acting on its behalf has provided 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 regarding the confidentiality
and use of such information. The Company understands and confirms that each Purchaser shall be relying on the foregoing representation
in effecting this transaction.

 

Section 3.12. Pledge of Securities. The Company
acknowledges that the Securities may be pledged by a Purchaser in connection with a bona fide margin agreement or other loan
or financing arrangement that is secured by the Securities. The pledge of Securities shall not be deemed to be a transfer,
sale or assignment of the Securities hereunder, and no Purchaser effecting a pledge of the Securities shall be required to
provide the Company with any notice thereof or otherwise make any delivery to the Company pursuant to this Agreement or any
other Transaction Document; provided that a Purchaser and its pledgee shall be required to comply with the provisions
of Article 5 hereof in order to effect a sale, transfer or assignment of Securities to such pledgee. At the
Company’s expense, the Company hereby agrees to execute and deliver such documentation as a pledgee of the Securities
may reasonably request in connection with a pledge of the Securities to such pledgee by a Purchaser.

 

Section 3.13. Amendments. The Company shall not amend
or waive any provision of the Certificate or Bylaws of the Company in any way that would adversely affect exercise rights, voting
rights, conversion rights, prepayment rights or redemption rights of the holder of the Notes and the Warrants.

 

Section 3.14. Maintenance of Insurance. The Company shall
maintain insurance with responsible and reputable insurance companies or associations (including, without limitation, comprehensive
general liability, hazard, rent and business interruption insurance) with respect to its properties (including all real properties
leased or owned by it) and business, in such amounts and covering such risks as is required by any governmental authority having
jurisdiction with respect thereto or as is carried generally in accordance with sound business practice by companies in similar
businesses similarly situated.

 

Section 3.15. Compliance with Transaction Documents.
The Company shall use commercially reasonable efforts to comply with its obligations under the Transaction Documents.

 

Section 3.16. Transactions with Affiliates. The Company
shall not engage in any transactions with any officer, director, employee or any affiliate of the Company, including any contract,
agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property
to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company,
any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee
or partner, in each case in excess of $50,000, other than (i) for payment of reasonable salary for services actually rendered,
as approved by the Board of Directors of the Company as fair in all respects to the Company, (ii) reimbursement for expenses incurred
on behalf of the Company, (iii) as otherwise contemplated by this Agreement, and (iv) for purchases of Units in this Offering and
purchases of the Company’s securities in any other offering.

 

Section 3.17. No Dividends. The Company shall not (i)
declare or pay any dividends or make any distributions to any holder(s) of Common Stock or other equity security of the Company,
or (ii) purchase or otherwise acquire for value, directly or indirectly, any shares or other equity security of the Company.

 

    	14

    	 

    

 

Section 3.18. No Merger or Sale of Assets. The Company
shall not (i) merge or consolidate or sell or dispose of all its assets or any substantial portion thereof or (ii) in any way or
manner alter its organizational structure or effect a change of entity or (iii) effect a Change of Control. For the purposes of
this Agreement, a “Change of Control” shall mean: (i.) the consolidation, merger or other business combination
of the Company with or into another person (other than (A) pursuant to a migratory merger effected solely for the purpose of changing
the jurisdiction of incorporation of the Company, or (B) a consolidation, merger or other business combination in which holders
of the Company’s voting power immediately prior to the transaction continue after the transaction to hold, directly or indirectly,
the voting power of the surviving entity or entities necessary to elect a majority of the members of the Board of Directors (or
their equivalent if other than a corporation) of such entity or entities), (ii.) the sale, transfer disposition or exclusive license
of more than fifty percent (50%) of the Company’s intellectual property or assets (based on the fair market value as determined
in good faith by the Board of Directors of the Company) other than inventory in the ordinary course of business in one or a related
series of transactions; except for any such transaction described in this clause (ii) that either (a) the holders of at least 50.1%
of the then outstanding aggregate principal amount of all Notes have approved in writing after full disclosure of the proposed
transaction, or (b) a majority of the non-employee directors of the Board of Directors of the Company have approved such transaction
by duly adopted resolution, or (iii.) closing of a purchase, tender or exchange offer made to the holders of more than fifty percent
(50%) of the outstanding shares of Common Stock in which more than fifty percent (50%) of the outstanding shares of Common Stock
were tendered and accepted.

 

Section 3.19. Payment of Taxes, Etc. The Company shall
use commercially reasonable efforts promptly pay and discharge, or cause to be paid and discharged, when due and payable, all lawful
taxes, assessments and governmental charges or levies imposed upon the income, profits, property or business of the Company, except
for such failures to pay that would not reasonably be expected to have a Material Adverse Effect; provided, however,
that any such tax, assessment, charge or levy need not be paid if the validity thereof shall currently be contested in good faith
by appropriate proceedings and if the Company shall have set aside on its books adequate reserves with respect thereto, and provided,
further, that the Company will pay all such taxes, assessments, charges or levies forthwith upon the commencement of proceedings
to foreclose any lien which may have attached as security therefor.

 

Section 3.20. Corporate Existence. The Company shall
use commercially reasonable efforts to maintain in full force and effect its corporate existence, rights and franchises and all
licenses and other rights to use property owned or possessed by it and reasonably deemed to be necessary to the conduct of its
business.

 

Section 3.21. Investment Company Act. The Company shall
use commercially reasonable efforts to conduct its businesses in a manner so that it will not become subject to the Investment
Company Act of 1940, as amended.

 

Section 3.22. Indebtedness to Affiliates. The Company
shall not make any payment on any Indebtedness owed to its officers, directors or affiliates until all aggregate principal amount
and accrued but unpaid interest on the Notes has been repaid to the Purchasers, except to the extent that such Indebtedness is
owed by the Company to its officers, directors or affiliates holding Notes purchased in the Offering.

 

Section 3.23. No Lien on IP. Unless either (i) the holders
of at least 50.1% of the then outstanding aggregate principal amount of the Notes have approved in writing after full disclosure
of the proposed transaction, or (ii) a majority of the non-employee directors of the Board of Directors of the Company have approved
such transaction by a duly-adopted resolution, the Company shall not, directly or indirectly, encumber or allow any Liens on any
of its copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative
work, whether published or unpublished, any patents, patent applications and like protections, including improvements, divisions,
continuations, renewals, reissues, extensions, and continuations-in-part of the same, trademarks, service marks and, to the extent
permitted under applicable law, any applications therefor, whether registered or not, and the goodwill of the business of the Company
connected with and symbolized thereby, know-how, operating manuals, trade secret rights, rights to unpatented inventions, and any
claims for damage by way of any past, present, or future infringement of any of the foregoing.

 

Section 3.24. Benefit Plans. Unless either (i) the holders
of at least 50.1% of the then outstanding aggregate principal amount of the Notes have approved in writing after full disclosure
of the proposed transaction, or (ii) a majority of the non-employee directors of the Board of Directors of the Company have approved
such transaction by a duly-adopted resolution, the Company shall not adopt, amend or terminate any equity incentive plan or employee
benefit plan or arrangement for the benefit of officers or directors of the Company; provided that the foregoing shall not
apply to the amendment or termination any medical, dental or vision plan broadly available on the same terms to all employees of
Company.

 

    	15

    	 

    

 

Section 3.25. Expenditures. Unless either (i) the holders
of at least 50.1% of the then outstanding aggregate principal amount of the Notes have approved in writing after full disclosure
of the proposed transaction, or (ii) a majority of the non-employee directors of the Board of Directors of the Company have approved
such transaction by a duly-adopted resolution, the Company shall not (a) make any capital expenditure for an amount greater than
US$100,000, (b) dispose of any asset for an amount greater than US$100,000 or less than the book value of such asset (other than
the sale of inventory in the ordinary course of business), or (c) acquire or purchase any interest in any real property for an
amount greater than US$100,000.

 

Section 3.26. Compensation. Unless either (i) the holders
of at least 50.1% of the then outstanding aggregate principal amount of the Notes have approved in writing after full disclosure
of the proposed transaction, or (ii) a majority of the non-employee directors of the Board of Directors of the Company have approved
such transaction by a duly-adopted resolution, the Company shall not (a) materially increase or change the compensation package
(including salary, bonus and equity incentives, if any) of any member of the management team of Company if the total compensation
package, as increased or changed, would exceed US$100,000 or (b) make any payments to any member of the management team or board
of directors of Company in respect of any deferred or foregone compensation.

 

Section 3.27. Reservation of Shares. The Company shall,
for so long as any of the Notes or Warrants are outstanding, take all action necessary to reserve and keep available out of its
authorized and unissued capital stock, solely for the purpose of effecting the exercise of all Warrants and conversion of all Notes,
such number of shares of Common Stock which would allow for full exercise of all then outstanding Warrants and conversion of all
then outstanding Notes. Upon exercise of the Warrants and/or conversion of the Notes, the shares of Common Stock issued with respect
thereto will be validly issued, fully paid and nonassessable and free from all Liens with respect to the issue thereof, with the
holders being entitled to all rights accorded to a holder of Common Stock.

 

Section 3.28. Other Businesses. The Company shall not
engage, directly or indirectly, in any business other than the business currently conducted by Company.

 

Article 4 

 

Conditions

 

Section 4.1. Conditions Precedent to the Obligation of the
Company to Close and to Sell the Securities and the Purchaser to Close and to Purchase the Securities. The obligations hereunder
of the Company to close and issue and sell the Securities to the Purchasers and the Purchaser to Close and to Purchase the Securities
at each Closing is subject to the satisfaction or waiver, at or before the Closing of the conditions set forth below.

 

(a) Accuracy of the Representations and Warranties.
The representations and warranties of the Company and each Purchaser shall be true and correct in all material respects as of the
date when made and as of the applicable Closing Date as though made at that time, except for representations and warranties that
are expressly made as of a particular date, which shall be true and correct in all material respects as of such date.

 

(b) Performance by the Company and the Purchasers.
The Company and each Purchaser 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 Company and/or the Purchasers at or
prior to the applicable Closing Date.

 

(c) No Injunction. No statute, rule, regulation,
executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental
authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated by this Agreement.

 

(d) Completion of Due Diligence. Each Purchaser
shall have completed its due diligence of the Company and the securities being offered to its satisfaction, in its sole and absolute
discretion.

 

(e) Delivery of Purchase Price. The Purchase
Price for the Securities shall have been delivered by the Purchaser to the Company prior to the applicable Closing Date.

 

(f) Delivery of Transaction Documents. The
Transaction Documents shall have been duly executed and delivered by the Purchasers to the Company and the Placement Agent.

 

    	16

    	 

    

 

(g) No Suspension, Etc. The shares of Common
Stock (i) shall be designated for quotation or listed on a Trading Market, and (ii) shall not have been suspended, as of each Closing
Date, by the SEC from trading on such Trading Market.

 

(h) No Injunction. No statute, rule, regulation,
executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental
authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated by this Agreement.

 

(i) No Proceedings or Litigation. No action,
suit or proceeding before any arbitrator or any governmental authority shall have been commenced, and no investigation by any governmental
authority shall have been threatened, against the Company, or any of the officers, directors or affiliates of the Company, seeking
to restrain, prevent or change the transactions contemplated by this Agreement, or seeking damages in connection with such transactions.

 

(j) Opinion of Counsel. The Placement Agent
shall have received an opinion of counsel to the Company, dated the date of the Closing as shall be reasonably acceptable to counsel
to the Placement Agent.

 

(k) Secretary’s Certificate. The Company
shall have delivered to the Placement Agent and counsel to the Placement Agent a secretary’s certificate, dated as of each
Closing Date, as to (i) the resolutions adopted by its Board of Directors approving the transactions contemplated hereby, (ii)
its certificate of incorporation, (iii) its bylaws, each as in effect at the Closing Date, (iv) the authority and incumbency of
the officers executing the Transaction Documents and any other documents required to be executed or delivered in connection therewith,
and (v) the good standing of the Company in such entity’s jurisdiction of formation and all jurisdictions in which the Company
is qualified as a foreign corporation to do business, as evidenced by and attaching true and complete copies of certificates of
the secretary of state (or comparable office) of each such jurisdiction as of a date within five (5) calendar days prior to the
applicable Closing Date.

 

(l) Officer’s Certificate. On each Closing
Date, the Company shall have delivered to the Placement Agent a certificate signed by an executive officer on behalf of the Company,
dated as of such Closing Date, confirming the accuracy of the Company’s representations, warranties and covenants as of such
Closing Date and confirming the compliance by the Company with the conditions precedent set forth in this Section 4.1
as of such Closing Date.

 

(m) Affiliate Lock-Up.
The Placement Agent shall have received agreements (the “Lock-Up Agreements”) from each director and
officer of the Company (and any of their respective transferees, assignees and/or affiliates) to the effect that each such individual
shall not sell, assign or transfer any of their securities of the Company for the period commencing on the date of the Memorandum
and terminating on the earlier to occur of (i) six (6) months from the date the registration
statement covering the resale of all of the Conversion Shares has been declared effective by the SEC (and the Company has no reason
to believe it will not stay effective without interruption for the foreseeable future), and (ii) the date that such Conversion
Shares have been continually eligible for sale under Rule 144 without any limitations and/or restrictions, including, but not limited
to, volume or manner-of-sale restrictions or current public information requirements for a period of six (6) months (and the Company
has no reason to believe sales of such Conversion Shares or Warrant Shares under Rule 144 without any limitations and/or restrictions
will not continue to be permitted without interruption for the foreseeable future), provided
that transfers may be made as gifts, to family members and trusts for the benefit of family members, and to affiliates of our directors
and officers. Notwithstanding the foregoing, the Lock-Up Agreements shall not preclude the officers or directors of the Company
from exercising stock options granted pursuant to the Company’s Amended and Restated 2006 Stock Incentive Plan. The form
of Lock-up Agreement shall be prepared by and satisfactory to counsel to the Placement Agent.

 

(n) Material Adverse Effect. No Material Adverse
Effect shall have occurred.

 

    	17

    	 

    

 

Article 5 

 

Certificate; Legend

 

Section 5.1. Legend. Except as set forth herein, each
certificate representing the Securities, the Conversion Shares or the Warrant Shares shall be stamped or otherwise imprinted with
a legend substantially in the following form (in addition to any legend required by applicable state securities or “blue
sky” laws):

 

THE SECURITIES REPRESENTED BY
THIS CERTIFICATE (THE “SECURITIES”) HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”) OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS
REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR THE REGISTRATION OF SUCH SECURITIES UNDER THE
SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.

 

The Company agrees
to issue or reissue certificates representing any of the Securities, the Conversion Shares or the Warrant Shares without the legend
set forth above when required to do so pursuant to the terms of the Notes or if (x) the holder thereof shall provide the Company
with reasonable assurances that the such securities can be sold pursuant to Rule 144 without any restriction as to the number of
securities acquired as of a particular date that can then be immediately sold (which assurances shall not require an opinion of
counsel) or (y) the holder is selling such Conversion Shares in compliance with the provisions of Rule 144.

 

Article 6 

 

Indemnification

 

Section 6.1. General Indemnity. The Company agrees to
indemnify and hold harmless the Purchasers (and their respective directors, officers, affiliates, members, managers, employees,
agents, successors and assigns) from and against any and all losses, liabilities, deficiencies, costs, damages and expenses (including,
without limitation, reasonable attorneys’ fees, charges and disbursements) incurred by the Purchasers as a result of any
inaccuracy in or breach of the representations, warranties or covenants made by the Company herein.

 

Section 6.2. Indemnification Procedure. Any party entitled
to indemnification under this Article 6 (an “Indemnified Party”) will give written notice
to the Company of any matter giving rise to a claim for indemnification; provided, that the failure of any Indemnified Party hereunder
to give notice as provided herein shall not relieve the Company of its obligations under this Article 6 except to
the extent that the Company is actually prejudiced by such failure to give notice. In case any such action, proceeding or claim
is brought against the Indemnified Party in respect of which indemnification is sought hereunder, the Company shall be entitled
to participate in and, unless in the reasonable judgment of the Company a conflict of interest between it and the Indemnified Party
exists with respect to such action, proceeding or claim (in which case the Indemnified Party shall be responsible for the reasonable
fees and expenses of one separate counsel for the indemnified parties), to assume the defense thereof with counsel reasonably satisfactory
to the Indemnified Party. In the event that the Company advises an Indemnified Party that it will contest such a claim for indemnification
hereunder, or fails, within thirty (30) days of receipt of any indemnification notice to notify, in writing, such person of its
election to defend, settle or compromise, at its sole cost and expense, any action, proceeding or claim (or discontinues its defense
at any time after it commences such defense), then the Indemnified Party may, at its option, defend, settle or otherwise compromise
or pay such action or claim. In any event, unless and until the Company elects in writing to assume and does so assume the defense
of any such claim, proceeding or action, the Indemnified Party’s costs and expenses arising out of the defense, settlement
or compromise of any such action, claim or proceeding shall be losses subject to indemnification hereunder. The Indemnified Party
shall cooperate fully with the Company in connection with any negotiation or defense of any such action or claim by the Company
and shall furnish to the Company all information reasonably available to the Indemnified Party which relates to such action or
claim. The Company shall keep the Indemnified Party fully apprised at all times as to the status of the defense or any settlement
negotiations with respect thereto. If the Company elects to defend any such action or claim, then the Indemnified Party shall be
entitled to participate in such defense with counsel of its choice at its sole cost and expense. The Company shall not be liable
for any settlement of any action, claim or proceeding effected without its prior written consent. Notwithstanding anything in this
Article 6 to the contrary, the Company shall not, without the Indemnified Party’s prior written consent, settle or compromise
any claim or consent to entry of any judgment in respect thereof which imposes any future obligation on the Indemnified Party or
which does not include, as an unconditional term thereof, the giving by the claimant or the plaintiff to the Indemnified Party
of a release from all liability in respect of such claim. The indemnification obligations to defend the Indemnified Party required
by this Article 6 shall be made by periodic payments of the amount thereof during the course of investigation or
defense, as and when bills are received or expense, loss, damage or liability is incurred, so long as the Indemnified Party shall
refund such moneys if it is ultimately determined by a court of competent jurisdiction that such party was not entitled to indemnification.
The indemnity agreements contained herein shall be in addition to (a) any cause of action or similar rights of the Indemnified
Party against the Company or others, and (b) any liabilities the Company may be subject to pursuant to the law.

 

    	18

    	 

    

 

Article 7

 

Miscellaneous

 

Section 7.1. Fees and Expenses. Each party shall pay
the fees and expenses of its advisors, 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; provided, however,
that the Company, in accordance with the Engagement Letter, dated as of May 31, 2012, by and between the Company and Placement
Agent, shall pay all actual and documented attorneys’ fees and expenses (including disbursements and out-of-pocket expenses)
incurred by counsel to the Placement Agent in connection with the preparation, negotiation, execution and delivery of the Transaction
Documents and the transactions contemplated thereunder.

 

Section 7.2. Specific Performance; Consent to Jurisdiction;
Venue; Waiver of Jury Trial.

 

(a) The Company and the Purchasers acknowledge and
agree that irreparable damage would occur in the event that any of the provisions of this Agreement or the other Transaction Documents
were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties
shall be entitled to an injunction or injunctions to prevent or cure breaches of the provisions of this Agreement or the other
Transaction Documents and to enforce specifically the terms and provisions hereof or thereof, this being in addition to any other
remedy to which any of them may be entitled by law or equity.

 

(b) Each party hereby expressly and 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, and hereby
expressly and irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally
subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that
the venue of such suit, action or proceeding is improper. Each party hereby expressly and irrevocably waives personal service of
process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at
the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service
of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner
permitted by law. In any action brought by the Company concerning and/or arising directly and/or indirectly out of this Certificate,
the prevailing party shall be entitled to recover all of its legal fees and expenses incurred by it with respect to any such legal
action. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION
OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

Section 7.3. Entire Agreement; Amendment. This Agreement
and the other Transaction Documents contain the entire understanding and agreement of the parties with respect to the matters covered
hereby and, except as specifically set forth herein or in the other Transaction Documents, neither the Company nor any Purchaser
make any representation, warranty, covenant or undertaking with respect to such matters, and they supersede all prior understandings
and agreements with respect to said subject matter, all of which are merged herein. No provision of this Agreement may be waived
or amended other than by a written instrument signed by the Company and the Purchasers holding at least 66 2/3 % of the principal
amount of the Notes then held by the Purchasers. Any amendment or waiver effected in accordance with this Section 7.3
shall be binding upon each Purchaser (and their permitted assigns) and the Company.

 

    	19

    	 

    

 

Section 7.4. Notices. Any notice, demand, request, waiver
or other communication required or permitted to be given hereunder shall be in writing and shall be effective (a) upon hand delivery
by telecopy or facsimile at the address or number designated below (if delivered on a business day during normal business hours
where such notice is to be received), or the first business day following such delivery (if delivered other than on a business
day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing
by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first
occur. The addresses for such communications shall be:

 

	If to the Company:	 	
         

        CorMedix Inc.

        745 Rt. 202-206, Suite 303

        Bridgewater, NJ 08807

	 	 	Attention: Richard Cohen
	 	 	Telephone : (908) 517-9500
	 	 	Facsimile: (908) 429-4307
	with copies to:	 	
         

        DLA Piper

        300 Campus Drive, Suite 100

        Florham Park, New Jersey 07932

	 	 	Attention: David C. Schwartz, Esq.
	 	 	Telephone: (973) 520 2555
	 	 	Facsimile: (973) 520-2575
	If to any Purchaser:	 	At the address of the Purchaser set forth on Annex A to this Agreement or as specified in writing by such Purchaser.
	with copies to:	 	
        Gusrae Kaplan Nusbaum PLLC

        120 Wall Street, 11th Floor

        New York, New York 10005

	 	 	Attention: Lawrence Nusbaum, Esq.
	 	 	Telephone: (212) 809-5449
	 	 	Facsimile: (212) 269-1400

 

Any party hereto may
from time to time change its address for notices by giving written notice of such changed address to the other party hereto.

 

Section 7.5. Waivers. No waiver by either party 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 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 accruing to it thereafter. No consideration shall
be offered or paid to any Purchaser to amend or consent to a waiver or modification of any provision of any of the Transaction
Documents unless the same consideration is also offered to all of the parties to the Transaction Documents. This provision constitutes
a separate right granted to each Purchaser by the Company and shall not in any way be construed as the Purchasers acting in concert
or as a group with respect to the purchase, disposition or voting of Securities or otherwise.

 

Section 7.6. Headings. The article, section and subsection
headings in this Agreement are for convenience only and shall not constitute a part of this Agreement for any other purpose and
shall not be deemed to limit or affect any of the provisions hereof.

 

    	20

    	 

    

 

Section 7.7. Successors and Assigns. This Agreement shall
be binding upon and inure to the benefit of the parties and their successors and assigns. The assignment by a party to this Agreement
of any rights hereunder shall not affect the obligations of such party under this Agreement. The Purchasers may assign the Securities
and its rights under this Agreement and the other Transaction Documents and any other rights hereto and thereto without the consent
of the Company.

 

Section 7.8. No Third Party Beneficiaries. This Agreement
is intended for the benefit of the parties hereto and their respective permitted successors and assigns and is not for the benefit
of, nor may any provision hereof be enforced by, any other person.

 

Section 7.9. Governing Law. This Agreement shall be governed
by and construed in accordance with the internal laws of the State of New York, without giving effect to any of the conflicts of
law principles which would result in the application of the substantive law of another jurisdiction. This Agreement shall not be
interpreted or construed with any presumption against the party causing this Agreement to be drafted.

 

Section 7.10. Survival. The representations and warranties
of the Company and the Purchasers shall survive the execution and delivery hereof and the Initial Closing.

 

Section 7.11. Counterparts. This Agreement may be executed
in any number of counterparts, all of which taken together shall constitute one and the same instrument and shall become effective
when counterparts have been signed by each party and delivered to the other parties hereto, it being understood that all parties
need not sign the same counterpart.

 

Section 7.12. Severability. The provisions of this Agreement
are severable and, in the event that any court of competent jurisdiction shall determine that any one or more of the provisions
or part of the provisions contained in this Agreement shall, for any reason, be held to be invalid, illegal or unenforceable in
any respect, such invalidity, illegality or unenforceability shall not affect any other provision or part of a provision of this
Agreement and this Agreement shall be reformed and construed as if such invalid or illegal or unenforceable provision, or part
of such provision, had never been contained herein, so that such provisions would be valid, legal and enforceable to the maximum
extent possible.

 

Section 7.13. Further Assurances. From and after the
date of this Agreement, upon the request of the Purchasers or the Company, the Company and each Purchaser shall execute and deliver
such instruments, documents and other writings as may be reasonably necessary or desirable to confirm and carry out and to effectuate
fully the intent and purposes of this Agreement and the other Transaction Documents

 

[SIGNATURE PAGE FOLLOWS]

 

    	21

    	 

    

 

SIGNATURE PAGE TO

SUBSCRIPTION AGREEMENT

 

Purchaser hereby elects to purchase
a total of ______ Units at a price equal to $1,000 per Unit (to be completed by the Purchaser).

 

	
        If the Purchaser is an INDIVIDUAL, and
        if purchased as JOINT TENANTS, as TENANTS IN COMMON, or as COMMUNITY PROPERTY:

         

	Purchaser:	 	
         

         
	 	 	 
	 	 	 	 	 	 	 
	 	Print Name	 	 	 	Social Security Number	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	Signature	 	Date	 	Address	 
	 	 	 	 	 	 	 
	
        Co-Purchaser:

         
	 	 	 	 	 
	 	 	 	 	 	 	 
	 	Print Name	 	 	 	Social Security Number	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	Signature	 	Date	 	Address (if different from above)	 

 

 

	If the Purchaser is a PARTNERSHIP, CORPORATION, LIMITED LIABILITY COMPANY or TRUST:
	 
	 	 	 	 	 	 	 
	 	Name of Partnership, Corporation, Limited Liability Company or Trust	 	 	 	Federal Taxpayer Identification Number	 
	 	 	 	 	 	 	 	 
	 	By:	 	 	 	 	 	 	 
	 	 	Name:	 	 	 	 	Date:	 	 
	 	 	Title:	 	 	 	 	 	 	 

 

ACCEPTED BY:

 

CORMEDIX INC.

 

	By: 	/s/ Richard M. Cohen	 
	 	 	 
	Name:	Richard M. Cohen	 
	Title:	Interim Chief Executive Officer and Interim Chief Financial Officer	 
	 	 	 
	Date	 	 

 

    	 

    	 

    

 

	
        ANNEX A 

        PURCHASER QUESTIONNAIRE 

         

        INDIVIDUAL INVESTORS

	
         

        Investor Name:
	 
	
         

        Co-Investor Name:
	 
	 	 	 	 	 
	Individual Executing Profile or Trustee (If Applicable):	 	 
	
         

        Marital Status:
	 	 	 	 
	 	 	 	 	 
	SSN #:	 	 	Joint Party SSN #:	 
	 	 	 	 	 
	Date of Birth:	 	 	Joint Party Date of Birth:	 
	 	 	 	 	 
	Primary Residence:	 	 	 	 
	 	 	 	 	 
	Street Address:	 	 	 	 
	 	 	 	 	 
	City, State & Zip Code:	 	 	 	 
	 	 	 	 	 
	Home Phone:	 	 	Home Fax:	 
	
         

        Email address:
	 	 	 	 
	 	 	 	 	 
	Business Address:	 	 	 	 
	
         

        Business Phone:
	 	 	
         

        Business Fax:
	 
	
         

        Business Email Address:
	 	 	 	 
	 	 	 	 	 
	ENTITY INVESTORS
	
         

        Entity Investor Name:
	 	 	 	 
	
         

        Individual Executing Questionnaire:
	 
	
         

        Federal Tax ID No.:
	 	 	 	 
	 	 	 	 	 
	Business Street Address:	 	 	 	 
	
         

        Business City, State & Zip Code:
	 
	
         

        Contact Person:
	 	 	 	 
	
         

        Business Phone:
	 	 	
         

        Business Fax:
	 
	
         

        Business Email Address:
	 	 	 	 
	 	 	 	 	 	 	 	 	 	 

	SECURITY DELIVERY INSTRUCTIONS (Check One):
	 ̈	  Please deliver to the Home Address listed above 
	 ̈	  Please deliver to the Business Address listed above
	 ̈	  Please deliver my securities to the following address:

 

    	Annex A

    	 

    

 

	
        ANNEX B 

         

        CERTIFICATE FOR INDIVIDUAL INVESTORS
        (Including Grantors of Revocable Trusts)

	If the investor is an individual, including married couples and IRA accounts of individual investors, please complete, date and sign this Certificate.  If the investment is to be held jointly, each investor must execute and deliver the Subscription Agreement and initial their Investor Status as requested below and execute this Certificate.

 

	 ̈ Individual	 ̈            Joint
    Tenants (both Joint Tenants must initial their Investor Status and sign this Certificate)
	 ̈ IRA	 ̈            Tenants
    in Common (both tenants-in-common must initial their Investor Status and sign this Certificate)
	 ̈ Tenants in the Entirety	 ̈            Community
    Property (all holders must initial their Investor Status and sign this Certificate)

 

	 ̈           Grantor
    of a Revocable Trust (identify each grantor and indicate under what circumstances the trust is revocable by the grantor. 
    If you check this box, please note all Trustees must complete the Investor Status Section below and sign this Certificate).

 

	Names of Grantors:	 

 

	
         ̈ Check if any
        Grantor is deceased, disabled or legally incompetent.

         

        INVESTOR STATUS (Including Grantors of Revocable
        Trusts)

 

	 	I certify that I have a net worth (excluding the value of my primary residence) in excess of $1 million either individually or through aggregating my individual holdings and those in which I have a joint, community property or other similar shared ownership interest with my spouse.
	Initial if Applicable	 
	 	I certify that I have had an annual gross income for the past two years of at least $200,000 (or $300,000 jointly with my spouse) and expect my income (or joint income, as appropriate) to reach the same level in the current year.
	Initial if Applicable	 
	 	
         

        I certify that I am a director or executive officer of CorMedix
        Inc.

	Initial if Applicable	 

 

	The undersigned certifies that the representations and responses above are true and accurate:

 

	Investor Name (Print):	 	 	Co- Investor Name:	 
	 	 	 	 	 
	Signature:	 	 	Co- Investor Signature:	 
	 	 	 	 	 
	Date:	 	 	Date:	 

 

    	Annex B

    	 

    

 

ANNEX C

 

ENTITY INVESTORS CERTIFICATE

(CORPORATIONS, PARTNERSHIPS, LIMITED
LIABILITY COMPANIES,

IRREVOCABLE TRUSTS, AND FOUNDATIONS)

If the Investor is a corporation, partnership, limited liability
company, irrevocable trust, pension plan, foundation or other entity, an authorized officer, partner, or trustee must provide the
requested information below, initial the Investor Status and sign this Certificate.

Type of Entity (check one):

 

	 ̈ Limited Partnership	 ̈ General Partnership
	 ̈ Limited Liability
    Company	 ̈ Corporation
	 ̈ Irrevocable
    Trust:	 ̈ Other form of organization:
	Grantors of Revocable Trust: Please complete Annex B.
	 	 
	Date of Formation:	 
	 	 	 

 

NOTE: PLEASE PROVIDE A COPY OF THE ORGANIZATIONAL
DOCUMENTATION. (i.e., Articles of Incorporation, Partnership Agreement, Operating Agreement, Trust Agreement, etc)

 

In order for the Company to offer and sell
the Units in conformance with state and federal securities laws, the following information must be obtained regarding your investor
status. Please initial each category applicable to you as an investor in the Company.

 

	 	A bank as defined in Section 3(a)(2) of the Securities Act, or any savings and loan association or other institution as defined in Section 3(a)(5)(A) of the Securities Act whether acting in its individual or fiduciary capacity;
	Initial if Applicable	 
	 	A broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934;
	Initial if Applicable	 
	 	
         

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

	Initial if Applicable	 
	 	An investment company registered under the Investment Company Act of 1940 or a business development company as defined in Section 2(a)(48) of that Act;
	Initial if Applicable	 
	 	A Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958;
	Initial if Applicable	 
	 	A plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5,000, 000;
	Initial if Applicable	 
	 	An employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974, if the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such Act, which is either a bank, savings and loan association, insurance company, or registered investment advisor, or if the employee benefit plan has total assets in excess of $5,000,000 or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors;
	Initial if Applicable	 

 

    	 

    	 

    

 

	 	A private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940;
	Initial if Applicable	 
	 	Any partnership or corporation or any organization described in Section 501(c)(3) of the Internal Revenue Code or similar business trust, not formed for the specific purpose of acquiring the Units, with total assets in excess of $5,000,000;
	Initial if Applicable	 
	 	A trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the Units, whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii) of the Securities Act; or
	Initial if Applicable	 
	 	An entity in which all of the equity owners qualify under any of the above subparagraphs.*
	Initial if Applicable	*If the undersigned belongs to this investor category only, please list the equity owners of the undersigned, and, in addition, have each equity owner individually complete and deliver Annex A and Annex B hereof:
	 	 
	 	 

 

	The undersigned certifies that the representations and responses above are true and accurate and that the undersigned has the authority to execute and deliver the Subscription Agreement and this Certificate on behalf of the Investor and to take other actions with respect thereto.

 

	Entity Investor Name:	 	 	 	 
	 	 	 	 	 
	By (Signature):	 	 	 	 
	 	 	 	 	 
	Print Name:	 	 	 	 
	 	 	 	 	 
	Title:	 	 	 	 
	
         

        Date:
	
         

         
	 	 	 

 

    	 

    	 

    

 

SCHEDULE A

 

List of Purchasers and Number of Units
Purchased

 

	Purchaser	 	Units
	Bruce D. Walck R/O IRA	 	100
	Dr. Lindsay A. Rosenwald	 	50
	Manchester Securities Corporation	 	400
	Wade Capital Corporation Money Purchase Plan	 	35
	Oliver Buck	 	100
	MW Bridges LLC	 	50
	Paul Schneider	 	15
	Gary Gelbfish, M.D.	 	100
	Steven W. Lefkowitz	 	15
	Matthew P. Duffy	 	10
	Philip S. Forte IRA	 	30
	Collage Services Limited	 	25
	Kingsbrook Opportunities Master Fund LP	 	25
	Patrick Caldwell	 	5
	Janet Ballard	 	25
	Mark Livingston	 	10
	Roy Whitehead	 	35
	George B. Wright III	 	10
	Ronald Globus	 	10
	Ricky McKnight	 	18
	Lori Shapero	 	35
	Bowden Transportation Services RET Ltd	 	7
	Philip S. Forte	 	70
	Jonathan Stanney	 	50
	Alvin L. Gray Trust	 	25
	Gregory Martino	 	25
	Justin Bagnato-Schulte	 	4
	Jack S. Jacobsen	 	20
	Elbow Canyon Estates	 	20August
20, 2012

Richard
Cohen

Executive
Chairman, Interim Chief Executive Officer and

Interim
Chief Financial Officer

CorMedix
Inc.

745
Rt. 202-206, Suite 303

Bridgewater,
NJ 08807

 

			Re: Amended and Restated Investment Banking Agreement

 

Dear
Richard:

 

We
are pleased to confirm that this Amended and Restated Investment Banking Agreement (the “Agreement”) amends
and restates, in its entirety, the Investment Banking Agreement, dated as of May 31, 2012, by and between John Carris Investments,
LLC (“John Carris”) and CorMedix Inc. (the “Company”) (the “Prior Agreement”).
This Agreement shall describe the arrangements under which John Carris is engaged by the Company (both parties together referred
to as the "Parties") to act as its exclusive
placement agent in connection with the potential Transaction (as defined below) and the Prior Agreement shall be of no further
force and effect. The terms of this relationship are as follows:

 

		1.	Retention.
Subject to the terms and conditions of this Agreement, the Company has engaged John Carris to act on behalf of the Company as its
exclusive placement agent commencing on May 31, 2012 and continuing for a period of six (6) months thereafter (the
"Engagement" or "Exclusive Period"),
unless otherwise terminated, the resulting end date from either termination or expiration shall be referred to as the
"Termination Date".

 

		2.	Scope
of Services. John Carris will:

 

		(a)	Provide advice and assistance to the Company in connection with analyzing, structuring, negotiating
and effectuating (including, but not limited to, providing valuation analyses as appropriate), and identifying potential investors
in, and acting as exclusive placement agent, as appropriate, in any financing transaction involving the Company pursuant to an
offering of securities (whether in the form of secured or unsecured debt (including, but not limited to, senior notes, subordinated
notes, high-yield notes, or mezzanine notes), equity, equity-linked or convertible securities, any other form of indebtedness,
or any other similar transaction or series of transactions, or any combination thereof (any such transaction considered in this
clause, a "Transaction").

 

It
is understood that any Proposed Transaction will be structured so that the offer and sale of securities will meet an exemption
from the registration requirements of the U.S. Securities Act of 1933, as amended (the
"Act"). The Company will use commercially reasonable efforts so as not to directly or indirectly take any
action, including, but not limited to, making any offer or sale of securities if, as a result, the offer and sale of securities
contemplated hereby would fail to be entitled to the exemption from the registration requirements of the Act.

 

    	 

    	 

    

 

CORMEDIX INC.

August 20, 2012

AMENDED AND RESTATED INVESTMENT
BANKING AGREEMENT

 

		(b)	If (i) the Company shall enter into a definitive agreement with respect to a Transaction during
the term of this Agreement, and (ii) the Company, upon consummation of the Transaction, receives proceeds in excess of $500,000,
with John Carris solely and directly responsible for identifying and approaching (as evidenced in writing) and introducing the
Company to the investors investing no less than $500,000 (in the aggregate) in the Transaction; then for a period of six (6) months
following the consummation of such Transaction the Company agrees that it shall not engage an exclusive placement agent for any
securities offering by the Company or its subsidiaries not covered by Section 2, unless the Company shall have first offered John
Carris the right of first refusal to act as exclusive placement agent, on the economic terms and conditions that are offered to
the Company in writing by any other investment banking firm or broker or dealer, and where John Carris exercises such right of
first refusal and agrees to serve in such capacity within five (5) business days of being notified of same. If John Carris agrees
to act in any such capacity, the Company and John Carris will enter into a separate engagement letter or other agreement appropriate
for the type of transaction. The Company acknowledges that this Agreement is neither an express nor an implied commitment by John
Carris to act in any capacity in any such transaction.

 

For
the avoidance of doubt, this Agreement does not create any commitment by John Carris to underwrite, sell, or place any securities
of the Company and, in the case of any Transaction involving an underwritten offer of securities by the Company, no such commitment
will be created until the execution of an underwriting agreement or purchase agreement with respect thereto. This Agreement does
not constitute a commitment or obligation by John Carris or any of its affiliates to provide any financing which may be required
or advisable in connection with any Transaction contemplated in this Agreement. By signing this Agreement, the Company expressly
acknowledges that John Carris does not guarantee, warrant, or otherwise provide assurance that the Company will be able to implement
or consummate any Transaction contemplated herein, or achieve any other result. The scope of John Carris' engagement shall be limited
to those matters expressly set forth in this Agreement.

 

		3.	Compensation.
As compensation for the services provided herein, the Company agrees to pay John Carris the following:

 

		(a)	Exclusive Placement
Fees. John Carris shall receive an aggregate cash exclusive placement fee equal to 10% of the total purchase price of
the securities sold in any transaction to investors, including all amounts placed in an escrow account
("Aggregate Consideration"). Notwithstanding the foregoing, Aggregate Consideration shall not include any
amounts received (in any transaction or series of transactions) from any existing stockholder of the Company listed on Exhibit
A attached hereto (each, an "Existing Stockholder"). John Carris shall receive an aggregate cash exclusive
placement fee equal to 5% of the total purchase price of the securities sold in any transaction to any Existing Stockholder, including
all amounts placed in an escrow account.

 

		(b)	Exclusive Placement Warrants.
On each closing date on which Aggregate Consideration is paid or becomes payable, the
Company shall issue to John Carris warrants ("Exclusive
Placement Warrants") in an aggregate amount equal to 10% of the Aggregate Consideration raised by John Carris.
The Exclusive Placement Warrants shall be issued on the same terms and conditions, including with respect to the exercise price,
exercise provisions and anti-dilution, as those offered and sold in the Transaction.

 

    	Page | 2	CONFIDENTIAL

    	 

    

 

CORMEDIX INC.

August 20, 2012

AMENDED AND RESTATED INVESTMENT
BANKING AGREEMENT

 

		(c)	Tail Period. The Company
shall and shall have caused its affiliates to pay John Carris
all compensation described in this Section 3, with respect to any equity
or debt financing occurring at any time prior to the expiration of twelve (12) months after the Termination Date (the
"Tail Period") and including a third-party not otherwise in contact with the Company identified and approached
(as evidenced in writing) by John Carris in connection with the proposed Transaction during the Engagement and John Carris provided
written notification to the Company of the introduction and Company does not dispute within five (5) calendar days in writing that
John Carris identified such candidates to the Company.

 

		(d)	Mergers and Acquisitions.
The Company agrees that if John Carris, directly or
indirectly, introduces the Company, during the term of this Agreement, to any person or entity, excluding Existing Stockholders,
that becomes a party to a merger, acquisition, joint venture or other similar transaction with the Company or any affiliate thereof,
then the Company shall pay to John Carris a fee ("Merger
Fee"). The Merger Fee will be paid in a combination of stock and cash, to be determined by the Company, that will
reflect the exact percentage of stock and or cash used for the transaction, and will be calculated as a percentage of the Transaction
Value (as defined herein) in accordance with the following scale:

 

	Percentage	Amount
	6%	Up to $7,000,000
	5%	$7,000,001 - $9,000,000
	4%	$9,000,001-$11,000,000
	3%	$11,000,001-$13,000,000
	2%	$13,000,001-$15,000,000
	1%	Above $15,000,001

 

"Transaction
Value" shall mean the aggregate value of all cash, securities, notes, debentures, purchase options, royalties,;
marketing, licensing and revenue contracts;, including contingent and installment payments; consideration paid for assets owned
by majority owned subsidiaries of the Company or entities in any business relationship which are used in or are potentially useful
in the Company's business and any other tangible net benefit to the Company, its shareholders or directed beneficiaries and other
property and valuable consideration of every kind either (i) transferred to the Company and its affiliates in connection with any
transaction involving any investment , loan or any other equity or debt financing for, or acquisition of, the Company or any affiliate
thereof, or in connection with an acquisition of equity or assets thereof or (ii) transferred by the Company and its affiliates
in any transaction involving an investment in or acquisition of any third party, or acquisition of the equity or assets thereof,
by the Company or any affiliate thereof or (iii) transferred or otherwise contributed by all parties to enter into any joint venture
or similar joint enterprise or undertaking with the Company or any affiliate thereof. The aggregate value of all such cash, securities
and other property and valuable consideration shall be the aggregate fair market value thereof as determined jointly by John Carris
and the Company, or by an independent appraiser jointly selected by John Carris and the Company (with fees thereof shared by the
Parties).

 

		(e)	To the extent Transaction Value includes contingent and installment payments, escrow amounts and
other delayed payment methods, then the Company shall be entitled to pay that portion of the Merger Fee reflecting such payments
promptly following the Company's receipt thereof.

 

    	Page | 3	CONFIDENTIAL

    	 

    

 

CORMEDIX INC.

August 20, 2012

AMENDED AND RESTATED INVESTMENT
BANKING AGREEMENT

 

		(f)	Consent Solicitation.
In the event that the Company requests that John Carris advise the Company with respect to a consent solicitation that is not related
to or pursued in connection with any Transaction, the Company and John Carris shall mutually agree upon a reasonable fee for such
services.

 

		(g)	Expenses. In addition
to any fees that may be payable to John Carris, the Company agrees to reimburse John Carris for all reasonable and documented travel
and other out-of-pocket expenses directly arising out of John Carris' engagement hereunder, including, but not limited to, all
reasonable and documented fees and disbursements of attorneys; provided any such fees and expenses above $2,500 shall have first
been approved in writing by the Company's executive officers. On a monthly basis, John Carris shall bill for expenses incurred
and reimbursable hereunder; whereupon the Company promptly shall reimburse John Carris for such expenses.

 

Except
as expressly set forth in this Agreement, each applicable fee described above shall be additive to any other fees earned by John
Carris relating to any other Transaction.

 

All
amounts owed to John Carris hereunder shall be made in cash by wire transfer of immediately available U.S. funds to an account
designated by John Carris. No amounts paid or payable to John Carris or any of its affiliates under this Agreement shall be credited
against any other amounts paid or payable to John Carris except as otherwise expressly stated in this Agreement. The Company's
obligation to pay any fee or expense set forth in this Agreement shall be absolute and unconditional and shall not be subject to
reduction by way of setoff, recoupment, or counterclaim.

 

		4.	Representations.
Warranties and Covenants of the Company. The Company hereby represents, warrants and covenants
that:

 

		(a)	(i) The Company has the full right, power and authority to enter
into this Agreement and to perform all of its obligations hereunder, (ii) this Agreement has been duly authorized and executed
by the Company, and constitutes a valid and binding agreement of the Company enforceable in accordance with its terms, (iii) the
execution and delivery of this Agreement and the consummation of the transactions contemplated hereby do not conflict with or result
in a breach of (A) the Company's governing agreement(s), or (B) any agreement to which the Company is a party or by which any of
its property or assets is bound.

 

		(b)	In the event that the Company wishes to enter into a Transaction
that requires the approval of its stockholders, it is understood that both the management and the board of directors will use commercially
reasonable efforts to solicit and obtain such approval.

 

		5.	Representations.
Warranties and Covenants of John Carris. John Carris hereby represents, warrants and covenants
that (i) they are a business entity duly organized, validly existing and in good standing under the laws of the State of New York
(ii) they have the full right, power and authority to enter into this Agreement and to perform all of its obligations hereunder;
(iii) this Agreement has been duly authorized and executed by John Carris, and constitutes a valid and binding agreement of John
Carris enforceable in accordance with its terms; (iv) the execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby do not conflict with or result in a breach of (A) John Carris' governing agreement(s), or (B)
any agreement to which John Carris is a party or by which any of their property or assets are bound; and (v) John Carris is a member
in good standing with FINRA which is registered as a broker-dealer under the Securities Exchange Act of 1934, and is duly licensed
as a broker-dealer under the laws of the State of New York and each state in which they will conduct brokerage activities and John
Carris does not have, now or in the past five years, a relationship, affiliation, or association with any officer or director or
stockholder of the Company or otherwise will transfer an item of value to any such officer, director or stockholder in connection
with or as a result of the Transaction of this Agreement.

 

    	Page | 4	CONFIDENTIAL

    	 

    

 

CORMEDIX INC.

August 20, 2012

AMENDED AND RESTATED INVESTMENT
BANKING AGREEMENT

 

		6.	Independent
Contractor. John Carris and the Company hereby acknowledge that John Carris is an independent contractor, that the obligations
and responsibilities of John Carris are solely to the Company, and that said obligations and responsibilities of John Carris to
the Company are limited to those specifically set forth in this Agreement. John Carris, by entering into this Agreement and satisfying
its obligations hereunder, does not assume any fiduciary duties with respect to the Company, or the Company's Board of Directors,
officers, management, employees, security holders or creditors. All decisions made with respect to any transactions undertaken
by the Company, whether or not consistent with advice rendered by John Carris, shall be those of the Company. Notwithstanding anything
herein to the contrary, it is understood that John Carris is not undertaking to provide any legal, regulatory, accounting or tax
advice in connection with its engagement hereunder, and the Company shall rely solely upon its own experts for such matters. Moreover,
the Company recognizes that John Carris has been retained only by the Company and that its engagement is not deemed to be on behalf
of, and is not intended to confer or bestow the status of third-party beneficiary rights upon, any security holder, director, officer
or employee or creditor of the Company, or any person or entity not a party hereto as against John Carris or any of its affiliates,
their respective partners, directors, officers, agents and employees, their respective affiliates or each other person or entity,
if any, controlling John Carris or any of its affiliates. Unless otherwise expressly stated in writing by John Carris, no advice
or opinions rendered to the Company during the course of the engagement hereunder shall constitute a recommendation to any other
party. No one other than the Company is authorized to rely upon the engagement of John Carris, or any statements or conduct by
John Carris.

 

		7.	Confidentiality.

 

		(a)	The Company acknowledges that any written or oral advice, opinion, material and other information
provided by John Carris in connection with its engagement hereunder will be treated as confidential and will be solely for the
benefit and use of the Company in connection with a potential Transaction and, except as may be required by applicable law or regulation,
the Company agrees that no such advice, opinion, material and information shall be used for any other purpose or be reproduced,
disseminated, quoted or referred to at any time, in any manner or for any purpose, nor shall any public references to John Carris
be made by or on behalf of the Company, in each case without John Carris' prior consent, such consent not to be unreasonably withheld,
if, in the judgment of the Company's legal counsel, is required by law or regulation or in a filing with any governmental agency
in connection with the Transaction; provided
that John Carris shall have had a reasonable opportunity to review any such filing prior to its public distribution. The Company
agrees that any press release it may issue announcing a Transaction will, at John Carris' request, contain a reference to John
Carris' role in connection with any Transaction in form and substance satisfactory to John Carris.

 

    	Page | 5	CONFIDENTIAL

    	 

    

 

CORMEDIX INC.

August 20, 2012

AMENDED AND RESTATED INVESTMENT
BANKING AGREEMENT

 

		(b)	The Company may provide proprietary and confidential information to John Carris in connection with
this Agreement. John Carris will treat such nonpublic information concerning the Company and its business confidentially for a
period from the date of this Agreement to the date which is twelve (12) months from the date of termination or expiration of this
Agreement and, except as otherwise required by law, rule, regulation (including, but not limited to, regulations or rules of any
governmental agency or self- regulatory agency with appropriate jurisdiction) or legal process, John

 

Carris
will not disclose such information to a third party without the Company's consent. The Company will furnish to John Carris (and,
if appropriate, will request that any acquiring entity or financing entity furnish to John Carris) such information in its possession
(or in the possession of such acquiring entity or financing entity) as John Carris and the Company reasonably determine appropriate
to John Carris' services under this Agreement and which John Carris requests, and agrees to cooperate with John Carris in connection
with its financial review, analysis and services under this Agreement.

 

		(c)	The Company represents and warrants that any projections provided by them to John Carris will have
been prepared, in the Company's belief, in good faith and will be based upon assumptions which, in light of the circumstances under
which they are made, the Company believes are reasonable. The Company agrees to promptly advise John Carris of all developments
materially affecting any proposed Transaction or any circumstance affecting, or which the Company reasonably believes may affect,
the completeness or accuracy of the information previously furnished to John Carris. The Company recognizes and confirms that in
advising the Company and in completing its engagement hereunder, John Carris will be using and relying on information furnished
to John Carris by the Company. It is understood that in performing under this engagement John Carris may rely upon any information
so supplied without independent verification. John Carris shall not have any responsibility for such independent verification and
John Carris may rely on, and shall not assume any responsibility for, the accuracy or completeness of any such information. John
Carris will assume that any forecasted financial information provided to it reflects the best available estimates of future financial
performance.

 

		8.	Indemnification.
The Company agrees that:

 

		(a)	The Company shall indemnify and hold harmless John Carris, their members, directors, officers,
employees, agents, affiliates and controlling persons within the meaning of Section 20 of the Securities Exchange Act of 1934 and
Section 15 of the Securities Act of 1933, each as amended (any and all of whom are referred to as an
"Indemnified Party"), from and against any and all losses, claims, damages, liabilities, or expenses, and
all actions in respect thereof (including, but not limited to, all legal expenses reasonably incurred and documented by an Indemnified
Party in connection with the defense or settlement of any claim, action or proceeding), incurred by an Indemnified Party that:
(i) directly arises out of any actions taken or omitted to be taken by the Company, its affiliates, employees or agents, or any
untrue statement of a material fact contained in any of the financial or other information furnished to John Carris by the Company
or the omission of a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading; or (b) with respect to, caused by, or otherwise arising out of any transaction contemplated
by the Agreement or John Carris' performing the services contemplated hereunder; provided, however, the Company will not be liable
under clause (b) hereof to the extent, and only to the extent, that any loss, claim, damage, liability or expense resulted from
John Carris' gross negligence or bad faith in performing such services.

 

    	Page | 6	CONFIDENTIAL

    	 

    

 

CORMEDIX INC.

August 20, 2012

AMENDED AND RESTATED INVESTMENT
BANKING AGREEMENT

 

		(b)	If the indemnification provided for herein is conclusively determined (by an entry of final judgment
by a court of competent jurisdiction and the expiration of the time or denial of the right to appeal) to be insufficient to hold
any Indemnified Party harmless in respect to any losses, claims, damages, liabilities or expenses referred to herein, then the
Company shall contribute to the amounts paid or payable by such Indemnified Party in such proportion as is appropriate and equitable
under all circumstances taking into account the relative benefits received by the Company on the one hand and John Carris on the
other, from the transaction or proposed transaction under the Agreement or, if allocation on that basis is not permitted under
applicable law, in such proportion as is appropriate to reflect not only the relative benefits received by the Company on the one
hand and John Carris on the other, but also the relative fault of the Company and John Carris; provided, however, in no event shall
the aggregate contribution of John Carris and/or any Indemnified Party be in excess of the net compensation actually received by
John Carris and/or such Indemnified Party pursuant to this Agreement.

 

		(c)	In the event any Indemnified Party shall incur any expenses covered by this Section 8, the Company
shall reimburse the Indemnified Party for such covered expenses promptly following final judicial determintation of such matter.

 

The
foregoing indemnification and contribution provisions are not in lieu of, but in addition to, any rights which any Indemnified
Party may have at common law hereunder or otherwise, and shall remain in full force and effect following the expiration or termination
of the Agreement and shall be binding on any successors or assigns of the Company and successors or assigns to all, or substantially
all, of the Company's business or assets.

 

		9.	Notices.Except
as otherwise specifically agreed, all notices and other communications made under this Agreement shall be in writing and, when
delivered in person, by facsimile transmission, or by e-mail, shall be deemed given on the same day if delivered on a business
day during normal business hours, or on the first day of business day following delivery outside normal business hours, or on
the date indicated on the return receipt if sent registered or certified mail, return receipt requested. All notices sent hereunder
shall be sent to the representatives of the party at the addresses indicated respectively below, or at such other addresses as
the parties may hereafter specify:

 

If
to John Carris:

 

John
Carris Investments, LLC

Attn:
Mr. David Boral

Managing
Director - Investment Banking

40
Wall Street, 17th Floor

New
York, NY 10005

Facsimile:
(212) 742-2510

 

If
to the Company:

 

CorMedix
Inc. Attn: Mr. Richard

Cohen Interim Chief Executive Officer

745 Rt. 202-206, Suite 303 Bridgewater,

NJ 08807 Facsimile: (908)
429-4307

 

    	Page | 7	CONFIDENTIAL

    	 

    

 

CORMEDIX INC.

August 20, 2012

AMENDED AND RESTATED INVESTMENT
BANKING AGREEMENT

 

		10.	Termination.
John Carris' engagement under this Agreement will run from the date of this Agreement until its expiration, or until
its termination in accordance with the following: either John Carris or the Company may terminate this Agreement and the engagement
contemplated hereby, with or without cause, at any time upon 5 days advance written notice to the other party. Upon termination,
this Agreement shall have no further force or effect except that: (i) any fee earned (or deemed to have been earned) or payable
pursuant to Section 3 as of the effective date of termination shall be paid in accordance with the terms of this Agreement; (ii)
any reasonable and documented out-of-pocket expenses incurred by John Carris in accordance with the provisions of this Agreement
prior to the effective date of termination shall be paid or reimbursed in accordance with the terms of this Agreement; (iii) the
indemnity, contribution and other provisions as contained in Section 8 shall continue to apply notwithstanding termination for
a period of six months following such termination or expiration; and (iv) the representations, warranties and covenants contained
in this Agreement shall survive any completion or termination of this engagement.

 

		11.	Survival.If
any term, provision, covenant or restriction contained in this Agreement is held by a court of competent jurisdiction or other
authority to be invalid, void, unenforceable or against its regulatory policy, the remainder of the terms, provisions, covenants
and restrictions contained in this Agreement shall continue in full force and effect without said provision, covenant or restriction,
and shall in no way be affected, impaired or invalidated, provided, however, that, such severability should be ineffective if
it materially changes the economic benefit of this Agreement to any party.

 

		12.	Governing
Law. Any right to trial by jury with respect to any claim or action arising out of this Agreement or conduct in connection
with the engagement is hereby waived by the Parties. This Agreement shall be deemed made in New York, and any controversies arising
from or related to performance under this Agreement shall be governed by the laws of the State of New York, without regard to such
State's rules concerning conflicts of laws. All controversies arising from or related to performance under this Agreement shall
be adjudicated in State or Federal court within the city and county of New York. Each of the Parties consents exclusively to personal
jurisdiction in New York, waives any objection as to jurisdiction or venue, and agrees not to assert any defense based on lack
of jurisdiction or venue. In any litigation, arbitration, or other dispute resolution arising out of or relating to this Agreement,
the prevailing party shall be reimbursed by the other party (as determined by a court of competent jurisdiction) for reasonable
attorneys' fees and/or arbitration costs.

 

		13.	Successors.
This Agreement may not be assigned by either the Company or John Carris without the prior written consent of the other party, except
that the Company may assign its rights and obligations under this Agreement to any entity which succeeds to the business of the
Company. The benefits of, and the obligations and liabilities assumed in this Agreement, shall be binding upon and inure to the
benefit of the Company's and John Carris' respective successors and permitted assigns.

 

    	Page | 8	CONFIDENTIAL

    	 

    

 

CORMEDIX INC.

August 20, 2012

AMENDED AND RESTATED INVESTMENT
BANKING AGREEMENT

 

		14.	Entire
Agreement. This Agreement embodies the entire agreement and understanding of the Parties regarding the matters provided
for herein, and supersedes any and all prior agreements, arrangements and understandings, whether written or oral, relating to
such matters. No alteration, waiver, amendment, change or addition hereto shall be binding or effective unless the same is set
forth in writing and signed by a duly authorized representative of each party. Waiver of or failure to exercise any rights provided
by this Agreement in any respect shall not be deemed a waiver of any further or future rights. This Agreement may be executed in
any number of counterparts each of which shall be enforceable against the parties executing such counterparts, and all of which
together shall constitute a single document Except as otherwise stated herein, in lieu of the original documents, a facsimile transmission,
or scanned or printed copy of the original documents, shall be as effective and enforceable as the original.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

    	Page | 9	CONFIDENTIAL

    	 

    

 

CORMEDIX INC.

August 20, 2012

AMENDED AND RESTATED INVESTMENT
BANKING AGREEMENT

 

IN
WITNESS WHEREOF, John Carris and the Company hereto have executed this Agreement as of August 20, 2012.

 

JOHN
CARRIS INVESTMENTS, LLC

 

	By:	/s/ George W. Carris
	Name: George W. Carris
	Title: Chief Executive Officer

 

CORMEDIX
INC.

 

	By: 	/s/ Richard M. Cohen
	Name: Richard M. Cohen
	Title: Executive Chairman, Interim Chief Executive Officer
	and Interim Chief Financial Officer

  

    	Page | 10	CONFIDENTIAL

    	 

    

 

EXHIBIT A

 

Existing Stockholders:

 

PharmaBio/Quintiles
Elliott Associates

Spinnaker Capital
LLC/NDP Partners University

of Arkansas/Shiva Parnters CSA Biotechnology

Fund/Brookline Parnters Millenium

Management LLC Paramount

Biosciences/Lindsay Rosenwald Galenica Ltd.

AQR Capital
Management LLC/CNH Partners

Michael Arlotto David
Bernfeld Michael Wheeler

Sudhir Shah Madding King Fred Zaino Lindsay

 

Rosenwald Philippe
Weigerstorfer Rocky Bryant

 

    	Page | 11	CONFIDENTIAL

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