Document:

EX-4.2

 Exhibit 4.2 

CYTEC INDUSTRIES INC., 

as Issuer 
 and 

The Bank of New York Mellon, 

as successor to JPMorgan Chase Bank, National Association, 

as successor to PNC Bank, National Association, 

as Trustee 
 FOURTH
SUPPLEMENTAL INDENTURE 
 Dated as of November 12, 2014, 

Supplementing that certain 

Indenture 
 Dated as of
March 15, 1998, as supplemented and amended by 
 the First Supplemental Indenture, dated as of
May 11, 1998 
 3.95% Senior Notes due 2025 

 TABLE OF CONTENTS 

 

							
	 	  	Page	 
	
	 ARTICLE 1
  

APPLICATION OF FOURTH SUPPLEMENTAL INDENTURE
	   
 

  

			
	 Section 1.01.
	 	 Application of Fourth Supplemental Indenture
	  	 	2	 
	
	 ARTICLE 2

DEFINITIONS
	   
  

			
	 Section 2.01.
	 	 Certain Terms Defined in the Indenture
	  	 	2	 
	 Section 2.02.
	 	 Definitions
	  	 	2	 
	
	 ARTICLE 3

FORM AND TERMS OF THE NOTES
	   
  

			
	 Section 3.01.
	 	 Form and Dating
	  	 	5	 
	 Section 3.02.
	 	 Terms of the Notes
	  	 	5	 
	 Section 3.03.
	 	 Optional Redemption
	  	 	6	 
	 Section 3.04.
	 	 Repurchase of Notes upon a Change of Control
	  	 	7	 
	
	 ARTICLE 4

MISCELLANEOUS
	   
  

			
	 Section 4.01.
	 	 Trust Indenture Act Controls
	  	 	8	 
	 Section 4.02.
	 	 New York Law to Govern
	  	 	8	 
	 Section 4.03.
	 	 Counterparts
	  	 	8	 
	 Section 4.04.
	 	 Severability
	  	 	8	 
	 Section 4.05.
	 	 Ratification
	  	 	9	 
	 Section 4.06.
	 	 Effectiveness
	  	 	9	 
	 Section 4.07.
	 	 Trustee Makes No Representation
	  	 	9	 
	 Section 4.08.
	 	 Notices
	  	 	9	 
		
	 EXHIBIT A – Form of 3.95% Senior Note due 2025
	  	 	A-1	  

  
 i 

 FOURTH SUPPLEMENTAL INDENTURE 

FOURTH SUPPLEMENTAL INDENTURE (this “Fourth Supplemental Indenture”), dated as of November 12, 2014, between Cytec
Industries Inc., a Delaware corporation (the “Company”), and The Bank of New York Mellon, as Trustee (the “Trustee”). 

RECITALS OF THE COMPANY 

WHEREAS, the Company and the Trustee executed and delivered an Indenture, dated as of March 15, 1998 (the “Base
Indenture”), as supplemented and amended by the First Supplemental Indenture, dated as of May 11, 1998 (the “First Supplemental Indenture” and together with the Base Indenture and this Fourth Supplemental Indenture,
the “Indenture”), and as supplemented by the Second Supplemental Indenture, dated as of July 6, 2009 (the “Second Supplemental Indenture”) and the Third Supplemental Indenture, dated as of March 12, 2013
(the “Third Supplemental Indenture”), to provide for the issuance by the Company from time to time of Securities to be issued in one or more series as provided in the Indenture; 

WHEREAS, Section 2.03 of the Base Indenture provides, among other things, that the Company and the Trustee may enter into
indentures supplemental to the Base Indenture, without the consent of any Holders of Securities, to establish the form of any Security, as permitted by Section 2.01 of the Base Indenture, and to provide for the issuance of the Notes (as defined
below), as permitted by Section 2.03 of the Base Indenture, and to set forth the terms thereof; 
 WHEREAS, the Company desires
to execute this Fourth Supplemental Indenture pursuant to Section 2.01 of the Base Indenture to establish the form, and pursuant to Section 2.03 of the Base Indenture to provide for the issuance, of a series of its senior notes designated
as its 3.95% Senior Notes due 2025 (the “Notes”), in an initial aggregate principal amount of $250,000,000. The Notes are a series of securities as referred to in Section 2.03 of the Base Indenture. 

WHEREAS, the Company has delivered to the Trustee an Opinion of Counsel and an Officers’ Certificate pursuant to
Section 10.04 of the Base Indenture to the effect that the execution and delivery of this Fourth Supplemental Indenture is authorized or permitted under the Base Indenture and that all conditions precedent provided for in the Base Indenture,
including Section 9.06 thereof, to the execution and delivery of this Fourth Supplemental Indenture to be complied with by the Company have been complied with; 

WHEREAS, the Company has requested that the Trustee execute and deliver this Fourth Supplemental Indenture; 

WHEREAS, all things necessary have been done by the Company to make this Fourth Supplemental Indenture, when executed and delivered by
the Company, a valid and legally binding instrument; and 
 WHEREAS, all things necessary have been done by the Company to make the
Notes, when executed by the Company and authenticated and delivered in accordance with the provisions of the Indenture, the valid, legally binding obligations of the Company; 

  
 1 

 NOW, THEREFORE: 

In consideration of the premises stated herein and the purchase of the Notes by the Holders thereof, the Company and the Trustee mutually
covenant and agree for the equal and proportionate benefit of the respective Holders from time to time of the Notes as follows: 
 ARTICLE
1 
 APPLICATION OF FOURTH SUPPLEMENTAL INDENTURE 

Section 1.01. Application of Fourth Supplemental Indenture. Notwithstanding any other provision of this Fourth Supplemental
Indenture, all provisions of this Fourth Supplemental Indenture, other than Section 4.08 hereof, are expressly and solely for the benefit of the Holders of the Notes and any such provisions shall not be deemed to apply to any other securities
issued under the Indenture and shall not be deemed to amend, modify or supplement the Base Indenture for any purpose other than with respect to the Notes. Unless otherwise expressly specified, references in this Fourth Supplemental Indenture to
specific Article numbers or Section numbers refer to Articles and Sections contained in this Fourth Supplemental Indenture as they amend or supplement the Base Indenture, and not the Base Indenture or any other document. All Initial Notes
and Additional Notes, if any, will be treated as a single class for all purposes of this Fourth Supplemental Indenture, including waivers, amendments, redemptions and offers to purchase. 

ARTICLE 2 
 DEFINITIONS

 Section 2.01. Certain Terms Defined in the Indenture. For purposes of this Fourth Supplemental Indenture, all capitalized
terms used but not defined herein shall have the meanings ascribed to such terms in the Base Indenture, as amended hereby. 

Section 2.02. Definitions. For the benefit of the Holders of the Notes, Section 1.1 of the Base Indenture shall be amended by
adding the following new definitions: 
 “Additional Notes” has the meaning specified in Section 3.02(b) hereto. 

“Below Investment Grade Rating Event” means the rating on the Notes is lowered independently by each of the Rating Agencies
and the Notes are rated below an Investment Grade Rating by each of the Rating Agencies on any day during the period commencing 60 days prior to the first public notice of the occurrence of a Change of Control or the Company’s intention to
effect a Change of Control and ending 60 days following the consummation of such Change of Control (which period will be extended so long as the rating of the Notes is under publicly announced consideration for a possible downgrade by any of
the Rating Agencies). 
 “Change of Control” means the occurrence of any of the following: (1) the consummation of any
transaction (including, without limitation, any merger or consolidation) the result of which is that any “person” (as that term is used in Section 13(d) of the Exchange Act) (other than the Company or one of its Subsidiaries) becomes
the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the 

  
 2 

 
Voting Stock of the Company or other Voting Stock into which the Voting Stock of the Company is reclassified, consolidated, exchanged or changed, measured by voting power rather than number of
shares; (2) the direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the assets of the Company and the
assets of its Subsidiaries, taken as a whole, to one or more “persons” (as that term is used in Section 13(d)(3) of the Exchange Act) (other than to the Company or one of its Subsidiaries); (3) the Company consolidates with, or
merges with or into, any “person” (as that term is used in Section 13(d) of the Exchange Act), or any such person consolidates with, or merges with or into, the Company, in either case, pursuant to a transaction in which any of the
Company’s outstanding Voting Stock or the Voting Stock of such other person is converted into or exchanged for cash, securities or other property, other than pursuant to a transaction in which shares of the Company’s Voting Stock
outstanding immediately prior to the transaction constitute, or are converted into or exchanged for, a majority of the Voting Stock of the surviving person immediately after giving effect to such transaction; or (4) the adoption of a plan
relating to the Company’s liquidation or dissolution. 
 “Change of Control Triggering Event” means the occurrence of
both (1) a Change of Control and (2) a Below Investment Grade Rating Event. 
 “Comparable Treasury Issue” means
the United States Treasury security selected by the Reference Treasury Dealer as having an actual or interpolated maturity comparable to the remaining term of the Notes to be redeemed to the Early Call Date that would be utilized, at the time of
selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of a comparable maturity to the remaining term of the Notes to the Early Call Date. 

“Comparable Treasury Price” means, with respect to any Redemption Date, (A) the arithmetic average of the Reference
Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (B) if the Quotation Agent obtains fewer than four such Reference Treasury Dealer Quotations, the
average of all such Quotations, or (C) if only one Reference Treasury Dealer Quotation is received, such Quotation. 
 “Early
Call Date” has the meaning specified in Section 3.03(b)(i) hereto. 
 “Exchange Act” means the Securities
Exchange Act of 1934, as amended. 
 “Global Note” means, individually and collectively, each of the Notes in the form of
Global Securities issued to the Depositary or its nominee, substantially in the form of Exhibit A. 
 “Initial Notes”
has the meaning specified in Section 3.02(b) hereto. 
 “Investment Grade Rating” means a rating equal to or higher
than Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P, or, if applicable, the equivalent investment grade credit rating from any Substitute Rating Agency selected by the Company. 

“Moody’s” means Moody’s Investors Service, Inc. or any successor thereto. 

  
 3 

 “Notes” has the meaning specified in the recitals hereto. 

“Primary Treasury Dealer” means a primary U.S. Government securities dealer in the United States. 

“Principal Amount” means the aggregate principal amount of all Outstanding Initial Notes and Additional Notes. 

“Quotation Agent” means, for the purposes of determining the redemption price for any optional redemption made pursuant to
Section 3.03 hereof, a Primary Treasury Dealer appointed by the Company; 
 “Rating Agencies” means (1) each of
Moody’s and S&P and (2) if any of Moody’s and S&P ceases to rate the Notes or fails to make a rating of the Notes publicly available for reasons outside of the control of the Company, a Substitute Rating Agency in lieu
thereof. 
 “Redemption Date”, when used with respect to the Notes to be redeemed, means the date fixed for such redemption
pursuant to the Indenture or this Fourth Supplemental Indenture. 
 “Reference Treasury Dealer” means (A) Citigroup
Global Markets Inc., RBS Securities Inc. or Wells Fargo Securities, LLC (or their respective affiliates which are Primary Treasury Dealers) and their respective successors; provided, however, that if any of the foregoing shall cease to be a
Primary Treasury Dealer, the Company shall substitute therefor another Primary Treasury Dealer; and (B) one or more other Primary Treasury Dealers selected by the Company. 

“Reference Treasury Dealer Quotation” means, with respect to each Reference Treasury Dealer and any Redemption Date, the
average, as determined by the Quotation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its Principal Amount) quoted in writing to the Quotation Agent by such Reference Treasury Dealer
at 5:00 p.m., New York City time, on the third Business Day preceding such Redemption Date. 
 “S&P” means
Standard & Poor’s Ratings Services, a Standard & Poor’s Financial Services LLC business, or any successor thereto. 

“Substitute Rating Agency” means a “nationally recognized statistical rating organization” within the meaning of
Section 3(a)(62) of the Exchange Act selected by the Company (as certified by a resolution of the Board of Directors of the Company) and which is reasonably acceptable to the Trustee as a replacement agency for Moody’s or S&P, or both
of them, as the case may be. 
 “Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal to the
semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its Principal Amount) equal to the Comparable Treasury Price for such Redemption Date. 

  
 4 

 “Trustee” has the meaning specified in the first paragraph hereto. 

“Voting Stock” means, with respect to any specified “person” (as that term is used in Section 13(d) of the
Exchange Act) as of any date, the capital stock of such person that is at the time entitled to vote generally in the election of the board of directors of such person. 

ARTICLE 3 
 FORM AND
TERMS OF THE NOTES 
 Section 3.01. Form and Dating. The Notes and the Trustee’s certificate of authentication shall be
substantially in the form of Exhibit A attached hereto. The Notes shall be executed on behalf of the Company by two Officers of the Company. The Notes may have notations, legends or endorsements required by law, stock exchange rules or
usage. Each Note shall be dated the date of its authentication. The Notes and any beneficial interest in the Notes shall be in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof. 

The terms and notations contained in the Notes shall constitute, and are hereby expressly made, a part of the Indenture, and the Company and
the Trustee, by their execution and delivery of this Fourth Supplemental Indenture, expressly agree to such terms and provisions and to be bound thereby. 

(a) Global Note. The Notes shall be issued initially in permanent global form (the “Global Note”), which shall be
deposited on behalf of the purchasers of the Notes represented thereby with the Depositary and registered in the name of Cede & Co., the Depositary’s nominee, duly executed on behalf of the Company and authenticated by the Trustee in
accordance with Sections 2.04 and 2.05 of the Base Indenture. 
 (b) Book-Entry Provisions. This Section 3.01(b) shall
apply only to the Global Note deposited with or on behalf of the Depositary. 
 The Company shall execute and the Trustee shall, in
accordance with this Section 3.01(b), authenticate and deliver each Global Note that shall be registered in the name of the Depositary or the nominee of the Depositary and shall be delivered by the Trustee to the Depositary or pursuant to the
Depositary’s instructions. 
 Section 3.02. Terms of the Notes. The following terms relating to the Notes are hereby
established: 
 (a) Title. The Notes shall constitute a series of Securities having the title “3.95% Senior Notes due
2025”. 
 (b) Principal Amount. The aggregate principal amount of the Notes that may be initially authenticated and delivered
under the Indenture (the “Initial Notes”) shall be $250,000,000. The Company may from time to time, without notice to or the consent of the Holders of Notes, issue additional Notes (in any such case “Additional
Notes”) having the same ranking and the same interest rate, Maturity and other terms as the Initial Notes. Any Additional Notes and the Initial Notes shall constitute a single series under the Indenture and all references

  
 5 

 
to the Notes shall include the Initial Notes and any Additional Notes unless the context otherwise requires. 

(c) Maturity Date. The entire Outstanding principal of the Notes shall be payable on May 1, 2025. 

(d) Interest Rate. The rate at which the Notes shall bear interest shall be 3.95% per annum; the date from which interest shall
accrue on the Notes shall be November 12, 2014, or the most recent Interest Payment Date to which interest has been paid or provided for; the Interest Payment Dates for the Notes shall be May 1 and November 1 of each year, beginning
May 1, 2015; the interest so payable, and punctually paid or duly provided for, on any Interest Payment Date, will be paid, in immediately available funds, to the Persons in whose names the Notes are registered at the close of business on the
Regular Record Date for such interest, which shall be the April 15 or October 15, as the case may be, immediately preceding such Interest Payment Date. 

Section 3.03. Optional Redemption. 

(a) The provisions of Article III of the Base Indenture, as amended by the provisions of this Fourth Supplemental Indenture, shall apply
to the Notes. 
 (b) The Notes shall be redeemable, in whole or in part, at the Company’s option at any time or from time to time, on
at least 30 days, but not more than 60 days, prior notice mailed to the registered address of each Holder of the Notes to be redeemed. 

(i) If the Company chooses to redeem any Notes before February 1, 2025 (the “Early Call Date”), such
Notes shall be redeemed at a redemption price equal to the greater of (1) 100% of the Principal Amount of the Notes to be redeemed on the Redemption Date, or (2) as determined by the Quotation Agent, the sum of the present values of the
remaining scheduled payments of principal and interest on the Notes being redeemed to the Early Call Date discounted to the Redemption Date on a semi-annual basis, assuming a 360-day year consisting of twelve
30-day months, at the Treasury Rate, plus 25 basis points, plus, in each case, accrued and unpaid interest on the principal amount of the Notes being redeemed to, but not including, the Redemption Date. 

(ii) If the Company chooses to redeem any Notes on or after the Early Call Date, such Notes shall be redeemed at a redemption
price equal to 100% of the principal amount of the Notes to be so redeemed, plus accrued and unpaid interest on the principal amount being redeemed to, but not including, the Redemption Date. 

(c) On and after the Redemption Date for the Notes, interest will cease to accrue on the Notes or any portion of the Notes called for
redemption, unless the Company defaults in the payment of the redemption price and accrued interest. On or before the Redemption Date, the Company shall deposit with the Paying Agent (or the Trustee) money sufficient to pay the redemption price of
and accrued interest on the Note to be redeemed on that date. If less than all of the Notes are to be redeemed, the Depositary shall select the Notes to be 

  
 6 

 
redeemed by lot in accordance with its operational arrangements. If the Notes are not Global Securities held by the Depositary, the Notes to be redeemed shall be selected by the Trustee by such
method as the Trustee deems fair and appropriate; provided, however, that no Notes of a principal amount of $2,000 or less shall be redeemed in part. 

(d) Notice of redemption having been given as provided in the Indenture, the Notes called for redemption shall, on the Redemption Date, become
due and payable at the redemption price, plus accrued and unpaid interest, if any, to the Redemption Date, and from and after such Redemption Date (unless the Company shall default in the payment of the redemption price and accrued interest, if any)
such Notes shall cease to bear interest. 
 Section 3.04. Repurchase of Notes upon a Change of Control. 

(a) If a Change of Control Triggering Event occurs with respect to the Notes, unless the Company shall have exercised its option to redeem the
Notes as described in Section 3.03 of this Fourth Supplemental Indenture, the Company shall be required to make an offer (the “Change of Control Offer”) to each holder of the Notes to repurchase all or any part (equal to
$2,000 or any integral multiple of $1,000 in excess thereof) of that Holder’s Notes on the terms set forth in this Section 3.04 and in the Notes. In the Change of Control Offer, the Company shall be required to offer payment in cash equal
to 101% of the aggregate Principal Amount of Notes repurchased, plus accrued and unpaid interest, if any, on the Notes repurchased up to, but not including, the date of repurchase (the “Change of Control Payment”). With respect to
the Notes, within 30 days following any Change of Control Triggering Event or, at the option of the Company, prior to any Change of Control, but after the public announcement of the transaction that constitutes or may constitute the Change of
Control, the Company shall mail a notice to Holders of Notes describing the transaction that constitutes or may constitute the Change of Control Triggering Event and offering to repurchase the Notes on the date specified in the notice, which date
shall be no earlier than 30 days and no later than 60 days from the date such notice is mailed or, if the notice is mailed prior to the Change of Control, no earlier than 30 days and no later than 60 days from the date on which
the Change of Control Triggering Event occurs (the “Change of Control Payment Date”). The notice shall, if mailed prior to the date of consummation of the Change of Control, state that the offer to purchase is conditioned on the
Change of Control Triggering Event occurring on or prior to the Change of Control Payment Date. 
 (b) On the Change of Control Payment
Date, the Company shall, to the extent lawful: 
 (i) accept for payment all Notes or portions of Notes properly tendered
pursuant to the Change of Control Offer; 
 (ii) deposit with the Paying Agent an amount equal to the Change of Control
Payment in respect of all Notes or portions of Notes properly tendered; and 

  
 7 

 (iii) deliver or cause to be delivered to the Trustee the Notes properly accepted
together with an Officers’ Certificate stating the aggregate Principal Amount of Notes or portions of Notes being repurchased. 
 The
Company shall publicly announce the results of the Change of Control Offer on or as soon as possible after the date of purchase. 
 (c) The
Company shall not be required to make a Change of Control Offer upon the occurrence of a Change of Control Triggering Event if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for an
offer made by the Company and the third party purchases all Notes properly tendered and not withdrawn under its offer. In addition, the Company shall not repurchase any Notes if there has occurred and is continuing on the Change of Control Payment
Date an Event of Default under the Indenture, other than a default in the payment of the Change of Control Payment upon a Change of Control Triggering Event. 

(d) The Company shall comply in all material respects with the requirements of Rule 14e-1 under the Exchange Act and any other securities
laws and regulations thereunder to the extent such laws and regulations are applicable in connection with the repurchase of the Notes as a result of a Change of Control Triggering Event. To the extent that the provisions of any such securities laws
or regulations conflict with the Change of Control Offer provisions of the Notes, the Company shall comply with the applicable securities laws and regulations and shall not be deemed to have breached its obligations under the Change of Control Offer
provisions of the Notes by virtue of any such conflict. 
 ARTICLE 4 

MISCELLANEOUS 

Section 4.01. Trust Indenture Act Controls. If any provision of this Fourth Supplemental Indenture limits, qualifies or conflicts
with another provision which is required to be included in this Fourth Supplemental Indenture by the TIA, the required provision shall control. If any provision of this Fourth Supplemental Indenture modifies or excludes any provision of the TIA
which may be so modified or excluded, the latter provision shall be deemed to apply to this Fourth Supplemental Indenture as so modified or to be excluded, as the case may be. 

Section 4.02. New York Law to Govern. The Indenture and the Notes shall be governed by, and construed in accordance with, the laws
of the State of New York but without giving effect to applicable principles of conflicts of law to the extent that the application of the laws of another jurisdiction would be required thereby. 

Section 4.03. Counterparts. This Fourth Supplemental Indenture may be executed in any number of counterparts, each of which shall
be an original; but such counterparts shall together constitute but one and the same instrument. 
 Section 4.04. Severability.
If any provision of this Fourth Supplemental Indenture or the Notes shall be held to be illegal or unenforceable under applicable law, then the 

  
 8 

 
remaining provisions hereof shall be construed as though such invalid, illegal or unenforceable provision were not contained therein. 

Section 4.05. Ratification. The Base Indenture, as supplemented and amended by this Fourth Supplemental Indenture, is in all
respects ratified and confirmed. The Indenture shall be read, taken and construed as one and the same instrument. All provisions included in this Fourth Supplemental Indenture supersede any conflicting provisions included in the Base Indenture
unless not permitted by law. The Trustee accepts the trusts created by the Indenture, and agrees to perform the same upon the terms and conditions of the Indenture. 

Section 4.06. Effectiveness. The provisions of this Fourth Supplemental Indenture shall become effective as of the date hereof.

 Section 4.07. Trustee Makes No Representation. The recitals contained herein are made by the Company and not by the Trustee,
and the Trustee assumes no responsibility for the correctness thereof. The Trustee makes no representation as to the validity or sufficiency of this Fourth Supplemental Indenture. All rights, protections, privileges, indemnities and benefits granted
or afforded to the Trustee under the Indenture shall be deemed incorporated herein by this reference and shall be deemed applicable to all actions taken, suffered or omitted by the Trustee in each of its capacities hereunder, and each agent,
custodian and other Person employed to act under this Fourth Supplemental Indenture. 
 Section 4.08. Notices. The Trustee
agrees to accept and act upon instructions or directions pursuant to the Indenture sent by unsecured e-mail, pdf, facsimile transmission or other similar unsecured electronic methods, provided, however, that the Trustee shall have received an
incumbency certificate listing persons designated to give such instructions or directions and containing specimen signatures of such designated persons, which such incumbency certificate shall be amended and replaced whenever a person is to be added
or deleted from the listing. If the Company elects to give the Trustee e-mail or facsimile instructions (or instructions by a similar electronic method) and the Trustee in its discretion elects to act upon such instructions, the Trustee’s good
faith understanding of such instructions shall be deemed controlling. The Trustee shall not be liable for any losses, costs or expenses arising directly or indirectly from the Trustee’s reliance upon and compliance with such instructions
notwithstanding such instructions conflict or are inconsistent with a subsequent written instruction, except to the extent such losses are determined by a court of competent jurisdiction to have been caused by the gross negligence or intentional
misconduct of the Trustee. The Company agrees to assume all risks arising out of the use of such electronic methods to submit instructions and directions to the Trustee, including without limitation the risk of the Trustee acting on unauthorized
instructions, and the risk of interception and misuse by third parties. 
 [Remainder of page intentionally left blank.] 

  
 9 

 IN WITNESS WHEREOF, the parties hereto have caused this Fourth Supplemental Indenture to be duly
executed as of the date first above written. 
  

			
	CYTEC INDUSTRIES INC.
		
	By:	 	 /s/ Daniel G. Darazsdi

		 	Name: Daniel G. Darazsdi
		 	Title: Vice President and Chief Financial Officer
		
	By:	 	 /s/ Jeffrey P. Fitzgerald

		 	Name: Jeffrey P. Fitzgerald
		 	Title: Treasurer
	
	THE BANK OF NEW YORK MELLON, as Trustee
		
	By:	 	 /s/ Laurence J. O’Brien

		 	Name: Laurence J. O’Brien
		 	Title: Vice President

 Signature Page to Fourth Supplemental Indenture 

 EXHIBIT A 

FACE OF NOTE 
 UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 

THIS SECURITY IS A GLOBAL SECURITY AS REFERRED TO IN THE INDENTURE HEREINAFTER REFERENCED. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN
PART FOR THE INDIVIDUAL SECURITIES REPRESENTED HEREBY, TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS
OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF. 

			
	REGISTERED	  	$250,000,000
		
	NO.         	  	CUSIP No.: 232820 AK6
		  	ISIN No.: US232820AK60

 CYTEC INDUSTRIES INC. 

3.95% Senior Note due 2025 

CYTEC INDUSTRIES INC., a Delaware corporation (the “Company”), promises to pay to Cede & Co., or its registered assigns,
the principal amount of TWO HUNDRED FIFTY MILLION Dollars ($250,000,000) on May 1, 2025. 
 Interest Payment Dates: May 1 and
November 1, commencing May 1, 2015. 
 Record Dates: April 15 and October 15. 

Additional provisions of this Note are set forth on the other side of this Note. Such additional provisions shall for all purposes have the
same effect as if set forth at this place. 

 IN WITNESS WHEREOF, the Company has caused this Note to be signed manually or by facsimile by its
duly authorized officers. 
 Dated: November 12, 2014 
  

			
	CYTEC INDUSTRIES INC.
		
	By:	 	  

		 	Name:
		 	Title:
		
	By:	 	  

		 	Name:
		 	Title:

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture. 

Dated: November 12, 2014 
  

			
	 THE BANK OF NEW YORK MELLON,
as Trustee,

		
	By:	 	  

		 	Authorized Signatory

 [REVERSE OF GLOBAL NOTE] 

3.95% Senior Note due 2025 
  

	1.	Interest 

 Cytec Industries Inc., a Delaware corporation (such corporation, and its
successors and assigns under the Indenture hereinafter referred to, being herein called the “Company”), promises to pay interest on the principal amount of this Note at the rate per annum shown above. The Company will pay interest
semi-annually on May 1 and November 1 of each year, commencing May 1, 2015. Interest on the Note will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from November 12, 2014.
Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months. 
  

	2.	Method of Payment 

 The Company will pay interest on the Notes (except defaulted
interest) to the Persons who are registered holders of Notes at the close of business on the record date (whether or not a business day) immediately preceding the interest payment date even if Notes are canceled after the record date and on or
before the interest payment date. Holders must surrender Notes to a Paying Agent to collect principal payments. The Company will pay principal and interest in money of the United States that at the time of payment is legal tender for payment of
public and private debts. Payments in respect of the Notes represented by a Global Note (including principal, premium and interest) may be made by wire transfer of immediately available funds to the accounts specified by The Depository Trust
Company. The Company will make all payments in respect of a certificated Note (including principal, premium and interest) by mailing a check to the registered address of each Holder thereof; provided, however, that payments on a certificated Note
will be made by wire transfer to a U.S. dollar account maintained by the payee with a bank in the United States if such Holder elects payment by wire transfer by giving written notice to the Trustee or the Paying Agent to such effect designating
such account no later than 30 days immediately preceding the relevant due date for payment (or such other date as the Trustee may accept in its discretion). 
  

	3.	Paying Agent and Registrar 

 Initially, The Bank of New York Mellon (the
“Trustee”) will act as Paying Agent and Registrar. The Company may appoint and change any Paying Agent, Registrar or co-registrar without notice. The Company or any of its domestically incorporated Wholly Owned Subsidiaries may act as
Paying Agent, Registrar or co-registrar. 
  

	4.	Indenture 

 The Company issued the Notes under an Indenture, dated as of March 15,
1998, as supplemented and amended by the First Supplemental Indenture, dated as of May 11, 1998, and the Fourth Supplemental Indenture, dated as of November 12, 2014 (the “Fourth Supplemental Indenture”), between the Company and
the Trustee, as successor to JPMorgan Chase Bank, National Association, as successor to PNC Bank, National Association (collectively, the “Indenture”). The terms of the Notes include those stated in the Indenture and

 
those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (15 U.S.C. 77aaa-77bbb), as in effect on the date of the Indenture (the “Act”). Terms
defined in the Indenture and not defined herein have the meanings ascribed thereto in the Indenture. The Notes are subject to all such terms, and Holders are referred to the Indenture and the Act for a statement of those terms. 

The Notes are senior unsecured obligations of the Company initially limited to $250,000,000 aggregate principal amount (subject to
Section 2.11 of the Indenture). 
  

	5.	Further Issuance 

 The Company may from time to time, without notice to or the consent of
the Holders of the Notes, issue additional Notes (the “Additional Notes”) having the same ranking and the same interest rate, Maturity and other terms as the Initial Notes. Any Additional Notes and the Initial Notes shall constitute a
single series under the Indenture and all references to the Notes shall include the Initial Notes and any Additional Notes unless the context otherwise requires. 
  

	6.	Optional Redemption 

 The Notes may be redeemed, in whole or in part, at the
Company’s option at any time or from time to time. In such event, the Company shall notify the Trustee of its decision to redeem the Notes, in whole or in part, as provided in the Indenture. The redemption price for the Notes to be redeemed on
any Redemption Date before February 1, 2025 (the “Early Call Date”) shall be calculated by the Company and shall be equal to the greater of the following amounts: (i) 100% of the Principal Amount of the Notes to be redeemed on
the Redemption Date, or (ii) as determined by the Quotation Agent, the sum of the present values of the remaining scheduled payments of principal and interest on the Notes being redeemed to the Early Call Date discounted to the Redemption Date
on a semi-annual basis at the Treasury Rate, plus 25 basis points, plus, in each case, accrued and unpaid interest on the principal amount of the Notes being redeemed to, but not including, the Redemption Date. The redemption price for the Notes to
be redeemed on any Redemption Date on or after the Early Call Date shall be equal to 100% of the principal amount of the Notes to be so redeemed, plus accrued and unpaid interest on the principal amount being redeemed to, but not including, the
Redemption Date. 
 Notwithstanding the foregoing, installments of interest on the Notes that are due and payable on interest payment dates
falling on or prior to a Redemption Date shall be payable on the interest payment date to the registered holders as of the close of business on the relevant record date according to the Notes and the Indenture. The redemption price shall be
calculated on the basis of a 360-day year consisting of twelve 30-day months. 
 “Treasury Rate” means, with respect to any
Redemption Date, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its Principal Amount) equal to the
Comparable Treasury Price for such Redemption Date. 
 “Comparable Treasury Issue” means the United States Treasury security
selected by the Reference Treasury Dealer as having an actual or interpolated maturity comparable to the 

  
 2 

 
remaining term of the Notes to be redeemed to the Early Call Date that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of
corporate debt securities of a comparable maturity to the remaining term of the Notes to the Early Call Date. 
 “Comparable Treasury
Price” means, with respect to any Redemption Date, (A) the arithmetic average of the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or
(B) if the Quotation Agent obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such Quotations; or (C) if only one Reference Treasury Dealer Quotation is received, such quotation. 

“Primary Treasury Dealer” means a primary U.S. Government securities dealer in the United States. 

“Quotation Agent” means, for the purposes of determining the redemption price for any optional redemption made pursuant to
Section 3.03 of the Fourth Supplemental Indenture and this Note, a Primary Treasury Dealer appointed by the Company. 
 “Reference
Treasury Dealer” means (A) Citigroup Global Markets Inc., RBS Securities Inc. or Wells Fargo Securities, LLC (or their respective affiliates which are Primary Treasury Dealers) and their respective successors; provided, however,
that if any of the foregoing shall cease to be a Primary Treasury Dealer, the Company shall substitute therefor another Primary Treasury Dealer; and (B) one or more other Primary Treasury Dealers selected by the Company. 

“Reference Treasury Dealer Quotation” means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as
determined by the Quotation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its Principal Amount) quoted in writing to the Quotation Agent by such Reference Treasury Dealer at
5:00 p.m., New York City time, on the third Business Day preceding such Redemption Date. 
 On and after the Redemption Date for the
Notes, interest will cease to accrue on the Notes or any portion of the Notes called for redemption, unless the Company defaults in the payment of the redemption price and accrued interest. On or before the Redemption Date, the Company shall deposit
with the Paying Agent (or the Trustee) money sufficient to pay the redemption price of and accrued interest on the Note to be redeemed on that date. 

In the case of any partial redemption, selection of the Notes for redemption will be made as set forth in Section 3.03(c) of the Fourth
Supplemental Indenture; provided that no Note of $2,000 in original principal amount or less shall be redeemed in part. If any Note is to be redeemed in part only, the notice of redemption relating to such Note shall state the portion of the
principal amount thereof to be redeemed. A new Note in principal amount equal to the unredeemed portion thereof will be issued in the name of the Holder thereof upon cancellation of the original Note. 

  
 3 

	7.	Notice of Redemption 

 Notice of redemption will be mailed at least 30 days but not more
than 60 days before the Redemption Date to each Holder of the Notes to be redeemed. Once notice of redemption is mailed, the Notes called for redemption will become due and payable on the Redemption Date and at the applicable redemption price, plus
accrued and unpaid interest to the Redemption Date. 
  

	8.	Repurchase upon a Change of Control Triggering Event 

 Upon the occurrence of a Change of
Control Triggering Event with respect to the Notes, the Company shall be required to make an offer to repurchase the Notes on the terms set forth in Section 3.04 of the Fourth Supplemental Indenture. 

 

	9.	Denominations; Transfer; Exchange 

 The Notes are in registered form without coupons in
denominations of $2,000 and whole multiples of $1,000 in excess thereof. A Holder may transfer or exchange Notes in accordance with the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate endorsements or
transfer documents and to pay any taxes and fees required by law or permitted by the Indenture. The Registrar need not register the transfer of or exchange of any Notes selected for redemption (except, in the case of a Note to be redeemed in part,
the portion of the Note not to be redeemed) or any Notes for a period of 15 days before a selection of Notes to be redeemed. 
  

	10.	Persons Deemed Owners 

 The registered Holder of this Note may be treated as the owner of
it for all purposes. 
  

	11.	Unclaimed Money 

 If money for the payment of principal or interest remains unclaimed for
two years, the Trustee or Paying Agent shall pay the money back to the Company at its request unless an abandoned property law designates another Person. After any such payment, Holders entitled to the money must look only to the Company and not to
the Trustee for payment. 
  

	12.	Discharge and Defeasance 

 Subject to certain conditions and in accordance with Sections
8.01 and 8.02 of the Indenture, the Company at any time may terminate some or all of its obligations under the Notes and the Indenture if the Company irrevocably deposits with the Trustee money or U.S. Government Obligations for the payment of
principal and interest on the Notes to redemption or maturity, as the case may be. 

  
 4 

	13.	Amendment, Waiver 

 Subject to certain exceptions set forth in the Indenture,
(i) the Indenture or the Notes may be amended with the written consent of the Holders of at least a majority in principal amount outstanding of the Notes and (ii) the Holders of a majority in principal amount of the Notes by notice to the
Trustee may waive an existing Default. Subject to certain exceptions set forth in the Indenture, without the consent of any Holder, the Company and the Trustee may amend the Indenture or the Notes to cure any ambiguity, omission, defect or
inconsistency, or to comply with Article 5 of the Indenture, or to provide for uncertificated Notes in addition to or in place of certificated Notes, or to add guarantees with respect to the Notes or to secure the Notes, or to add additional
covenants or surrender rights and powers conferred on the Company, or to comply with any request of the SEC in connection with qualifying the Indenture under the Act, or to make any change that does not adversely affect the rights of any Holder, or
to evidence and provide for the acceptance of appointment of a successor Trustee or separate Trustee (or to change any provisions of the Indenture relating to such appointment). 

 

	14.	Defaults and Remedies 

 Under the Indenture, Events of Default include (i) the
Company defaults in any payment of interest, if any, on the Notes when the same becomes due and payable and such default continues for a period of 30 days; (ii) the Company defaults in the payment of principal of or premium, if any, on the
Notes when the same becomes due and payable at their Stated Maturity or upon redemption, declaration, required repurchase or otherwise; (iii) the Company fails to comply with any covenants or agreements on the part of the Company in the Notes
or in the Indenture with respect to the Notes, and such failure continues for 60 days after the notice specified below; (iv) certain events of bankruptcy, insolvency or reorganization of the Company; or (v) an event of default, as defined
in any indenture or instrument evidencing or under which the Company has at the date of the Indenture or shall thereafter have outstanding at least $50,000,000 aggregate principal amount of indebtedness for borrowed money, shall happen and be
continuing and such indebtedness shall have been accelerated so that the same shall be or become due and payable prior to the date on which the same would otherwise have become due and payable, or such aggregate principal amount of indebtedness
shall not be paid when due, and such acceleration or nonpayment shall not be rescinded or annulled within 30 days after notice thereof shall have been given to the Company by the Trustee (if such event be known to it), or to the Company and the
Trustee by the Holders of at least 25% in aggregate principal amount of the Notes at the time outstanding; provided, however, that, for the purposes of this subsection (v), the Company shall not be deemed to be in default if it shall be contesting
in good faith its liability for the payment of the principal in question, and shall have been advised by its counsel that it has a meritorious defense thereto; and provided further that, if such event of default under such indenture or instrument
shall be remedied or cured by the Company or waived by the holders of such indebtedness, then the Event of Default hereunder by reason thereof shall be deemed likewise to have been thereupon remedied, cured or waived without further action upon the
part of either the Trustee or any of the Holders. 
 A Default under clause (iii) of this Section 14 with respect to the Notes is
not an Event of Default with respect to the Notes until the Trustee or the Holders of at least 25% in 

  
 5 

 
principal amount of the outstanding Notes notify the Company of the Default and the Company does not cure such Default within the time specified after receipt of such notice. 

If an Event of Default (other than an Event of Default specified in clauses (iv) of this Section 14 with respect to the Notes occurs
and is continuing, the Trustee by notice to the Company, or the Holders of at least 25% in principal amount of the outstanding Notes by notice to the Company and the Trustee, may declare the principal of and accrued but unpaid interest on all the
Notes to be due and payable. Upon such a declaration, such principal and interest with respect to such series shall be due and payable immediately. An Event of Default specified in clause (iv) of this Section 14 will result in the Notes
being due and payable immediately upon the occurrence of such an Event of Default. 
 The Holders of a majority in principal amount of the
Notes by notice to the Trustee may rescind an acceleration and its consequences if the rescission would not conflict with any judgment or decree and if all existing Events of Default with respect to the Notes have been cured or waived except
nonpayment of principal, premium, if any, or interest, if any, that has become due solely because of acceleration. No such rescission shall affect any subsequent Default or impair any right consequent thereto. 

The Holders of a majority in principal amount of the Notes may direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee or of exercising any trust or power conferred on the Trustee with respect to the Notes. 
 A Holder of the Notes
may not pursue any remedy with respect to the Indenture or the Notes unless: (i) such Holder gives to the Trustee written notice stating that an Event of Default with respect to the Notes is continuing; (ii) the Holders of at least 25% in
principal amount of the Notes make a written request to the Trustee to pursue the remedy; (iii) such Holder or Holders offer to the Trustee reasonable security or indemnity against any loss, liability or expense; (iv) the Trustee does not
comply with the request within 60 days after receipt of the request and the offer of security or indemnity; and (v) the Holders of a majority in principal amount of the Notes do not give the Trustee a direction inconsistent with the request
during such 60-day period. 
  

	15.	Trustee Dealings with the Company 

 Subject to certain limitations imposed by the Act,
the Trustee under the Indenture, in its individual or any other capacity, may become the owner or pledgee of Notes and may otherwise deal with and collect obligations owed to it by the Company and may otherwise deal with the Company with the same
rights it would have if it were not Trustee. 
  

	16.	No Recourse Against Others 

 A director, officer, employee or stockholder, as such, of
the Company or the Trustee shall not have any liability for any obligations of the Company under the Notes or the Indenture or for any claim based on, in respect of or by reason of such obligations or their creation. By accepting a Note, each Holder
waives and releases all such liability. The waiver and release are part of the consideration for the issue of the Notes. 

  
 6 

	17.	Authentication 

 This Note shall not be valid until an authorized signatory of the
Trustee (or an authenticating agent) manually signs the certificate of authentication on the other side of this Note. 
  

	18.	Abbreviations 

 Customary abbreviations may be used in the name of a Holder or an
assignee, such as TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with rights of survivorship and not as tenants in common), CUST (= custodian), and U/G/M/A (= Uniform Gift to Minors Act). 

 

	19.	Governing Law 

 THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. 

 

	20.	CUSIP Numbers 

 Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the Notes and has directed the Trustee to use CUSIP numbers in notices of redemption as a convenience to Holders. No representation is made as to the accuracy
of such numbers either as printed on the Notes or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon. 

  
 7 

 ASSIGNMENT FORM 

To assign this Note, fill in the form below: 
 I or we assign
and transfer this Note to 
  

					
		 	  
	 	
		 	(Print or type assignee’s name, address and zip code)	 	
			
		 	  
	 	
		 	(Insert assignee’s soc. sec. or tax I.D. No.)	 	

 and irrevocably appoint
                     agent to transfer this Note on the books of the Company. The agent may substitute another to act for him. 

 

									
	Date:	 	  
	 		 	Your Signature:	 	  

 Sign exactly as your name appears on the other side of this Note. 

  
 8 

 SCHEDULE OF INCREASES OR DECREASES IN PRINCIPAL AMOUNT 

The initial principal amount of this Note is $250,000,000. The following increases or decreases in this Note have been made: 

 

									
	 Date of Redemption or Repurchase
	  	Amount of decrease in
Principal Amount of this
Note	  	Amount of increase in
Principal Amount of this
Note	  	Principal amount of this
Note following such
decrease or increase	  	Notation Made by or on
Behalf of Trustee
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	

  
 9Exhibit 10.1

 

SECURITIES PURCHASE AGREEMENT

 

This Securities
Purchase Agreement (this "Agreement") is dated as of July 2, 2014, between PishPosh, Inc., a Nevada corporation
(the "Company"), and each purchaser identified on the signature pages hereto (each, including its successors and
permitted assigns, a "Purchaser" and collectively, the "Purchasers").

 

WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(2) of the Securities Act of 1933, as
amended (the "Securities Act"), and Rule 506 promulgated thereunder, the Company desires to issue and sell to
each Purchaser, and each Purchaser, severally and not jointly, desires to purchase from the Company, securities of the Company
as more fully described in this Agreement.

 

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

 

ARTICLE I. 

DEFINITIONS

 

1.1          Definitions. In addition
to the terms defined elsewhere in this Agreement: (a) capitalized

terms that are not otherwise defined
herein have the meanings given to such terms in the Articles of Incorporation (as defined herein), and (b) the following terms
have the meanings set forth in this Section 1.1:

 

"Action"
shall have the meaning ascribed to such term in Section 3.1(j). "Additional Shares" shall have the meaning ascribed
to such term in Section 4.18.

 

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

 

"Articles
of Incorporation" means the Articles of Incorporation of the Company filed with the Secretary of State of Nevada, in the
form of Exhibit A attached hereto.

 

"Board of Directors" means
the board of directors of the Company.

 

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

 

"Closing" means the Closing
of the purchase and sale of the Securities pursuant to Section 2.1.

 

"Closing
Date" means the Business Day on which all of the Transaction Documents have been executed and delivered by the applicable
parties thereto, and all conditions precedent to (i) the Purchasers' obligations to pay the Subscription Amount at the Closing,
and (ii) the Company's obligations to deliver the Securities to be issued and sold at such Closing, in each case, have been satisfied
or waived, but in no event later than the third Business Day following the date hereof.

 

"Commission" means the United
States Securities and Exchange Commission.

 

    	 

     

    

 

"Common Stock" means the common stock of the Company, par value
$0.0001 per share, and any other class of securities into which such securities may hereafter be reclassified or changed.

 

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

 

"Company
Counsel" means, Grushko & Mittman, P.C., 515 Rockaway Avenue, Valley Stream, New York 11581, facsimile: (212) 697-3575.

 

"Company
Information" shall have the meaning ascribed to such term in Section 3.2(e).

 

"Conversion Price" shall have the meaning ascribed
to such term in the Articles of Incorporation.

 

"Conversion
Shares" means shares of the Company's Common Stock which are issued to holders of Series A Preferred Stock pursuant to
the terms and conditions contained in the Company's Articles of Incorporation.

 

"Disclosure
Schedules" means the Disclosure Schedules of the Company delivered concurrently herewith.

 

"Effective
Date" means the earliest of the date that (a) the initial Registration Statement has been declared effective by the Commission
registering for public resale by the holders thereof, of the Registrable Securities, or (b) all of the Underlying Shares have
been sold pursuant to Rule 144 or may be sold pursuant to Rule 144 without the requirement for the Company to be in compliance
with the current public information requirement under Rule 144 and without volume or manner-of-sale restrictions and Company counsel
has delivered to the Transfer Agent of the Registrable Securities a standing written unqualified opinion that resales may then
be made by such holders of the Underlying Shares pursuant to such exemption which opinion shall be in form and substance reasonably
acceptable to such holders.

 

"End
Date" shall have the meaning ascribed to such term in Section 4.13.

 

"Equity
Line of Credit" shall have the meaning ascribed to such term in Section 4.9.

 

"Escrow
Agreement" means the escrow agreement to be employed in connection with the sale of the Securities, a copy of which is
annexed hereto as Exhibit D.

 

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

 

"Exempt
Issuance" means the issuance of (a) shares of Common Stock and options to officers, directors, employees, or
consultants of the Company prior to and after the Closing Date in the amounts and on the terms set forth on Schedule
3.1(g), (b) securities upon the exercise or exchange of or conversion of Securities issued hereunder (subject to
adjustment for forward and reverse stock splits and the like that occur after the date hereof) and/or other securities
exercisable or exchangeable for or convertible into shares of Common Stock issued and outstanding on the date of this
Agreement, provided that such securities and any term thereof have not been amended since the date of this Agreement to
increase the number of such securities or to decrease the issue price, exercise price, exchange price or conversion price of
such securities, (c) securities issued pursuant to acquisitions or strategic transactions approved by a majority of the
disinterested directors of the Company, provided that any such issuance shall only be to a
Person (or to the equityholders of a Person) which is, itself or through its subsidiaries, an operating company or an owner
of an asset in a business synergistic with the business of the Company and shall be intended to provide to the
Company substantial additional benefits in addition to the investment of funds, but shall not include a transaction in which
the Company is issuing securities primarily for the purpose of raising capital or to an entity whose primary business is
investing in securities, and (d) securities issued or issuable pursuant to this Agreement, the Articles of Incorporation or
the Warrants, or upon exercise or conversion of any such securities, (e) securities issued pursuant to or in connection with
a Going Public Event, (f) securities issued pursuant to the Stock Option Plan, and (g) securities issued in connection with
Indebtedness.

 

    	2

     

    

 

"Exercise
Notice" shall have the meaning ascribed to such term in Section 2.4.

 

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

 

"Financial
Statements" means the financial information annexed hereto as Schedule 3.1(h).

 

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

 

"Going
Public Event" shall have the meaning ascribed to such term in Section 4.15.

 

"Indebtedness" shall have the meaning ascribed to such
term in Section 3.1(w).

 

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

 

"Lead Investor" shall mean Barry Honig.

 

"Lockup
Agreement" means the Lockup Agreement, a form of which is annexed hereto as Exhibit B.

 

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

 

"Majority
in Interest" shall have the meaning ascribed to such term in Section 5.5.

 

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

 

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

 

"OFAC"
shall have the meaning ascribed to such term in Section 3.1(hh).

 

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

 

"Preferred
Stock" means the shares of the Company's Series A Convertible Preferred Stock issued or issuable hereunder or in connection
herewith having the rights, preferences and privileges set forth in the Articles of Incorporation.

 

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

 

    	3

     

    

 

"Public
Company Date" means the ninetieth Business Day after the Closing Date. 

 

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

 

"Q&BLLP"
shall mean Quarles & Brady LLP, with offices located at 1395 Panther Lane, Suite 300, Naples, FL 34109, Attn: Laura M. Holm,
Esq., Fax: 239-434-4999.

 

"Registration
Default" shall have the meaning ascribed to such term in Section 4.15.

 

"Registration
Rights Agreement" means the Registration Rights Agreement, dated the date hereof, among the Company and the Purchasers,
in the form of Exhibit  G attached hereto.

 

"Registration
Statement" means a registration statement meeting the requirements set forth in the Registration Rights Agreement and covering
the resale of the Common Stock issuable upon conversion of the Preferred Stock by each Purchaser as provided for and limited in
the Registration Rights Agreement.

 

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

 

"Required Minimum"
means, as of any date, the maximum aggregate number of shares of Common Stock then issued or potentially issuable in the future
pursuant to the Transaction Documents, including but not limited to any Underlying Shares issuable upon conversion in full of
all shares of Preferred Stock and the Warrant Shares issuable upon exercise of the Warrants, ignoring any conversion or exercise
limits set forth therein, and assuming that any previously unconverted shares of Preferred Stock will be held until the third
anniversary of the Closing Date.

 

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

 

"Securities"
means the Preferred Stock, the Warrants, and the Underlying Shares.

 

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

 

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

 

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

 

"Stock
Option Plan" means the employee stock option plan in effect as of the Closing Date.

 

"Subscription
Amount" means, as to each Purchaser, the aggregate amount to be paid for the Preferred Stock and Warrants purchased hereunder
as specified below such Purchaser's name on the signature page of this Agreement and next to the heading "Subscription Amount,"
in United States dollars and in immediately available funds.

 

"Subsidiary"
means with respect to any entity at any date, any direct or indirect corporation, limited or general partnership, limited
liability company, trust, estate, association, joint venture or other business entity of which (A) more than 50% of (i) the outstanding
capital stock having (in the absence of contingencies) ordinary voting power to elect a majority of the board of directors or
other managing body of such entity, (ii) in the case of a partnership or limited liability company,
the interest in the capital or profits of such partnership or limited liability company or (iii) in the case of a trust, estate,
association, joint venture or other entity, the beneficial interest in such trust, estate, association or other entity business
is, at the time of determination, owned or controlled directly or indirectly through one or more intermediaries, by such entity,
or (B) is under the actual control of the Company. Representations, undertakings and obligations set forth in this Agreement shall
be applicable only to Subsidiaries which exist or have existed at the applicable and relevant time. As of the Closing Date, the
Company has no Subsidiaries.

 

    	4

     

    

 

"Termination
Date" shall have the meaning ascribed to such term in Section 2.1.

 

"Trading
Day" means a day on which the principal Trading Market is open for trading; provided, that in the event that the Common
Stock is not listed or quoted for trading on a Trading Market on the date in question, then Trading Day shall mean a Business Day.

 

"Trading
Market" means any of the following markets or exchanges: the NYSE AMEX, the Nasdaq Capital Market, the Nasdaq Global Market,
the Nasdaq Global Select Market, the New York Stock Exchange, the OTC Bulletin Board, the OTCQB, the OTCQX or any markets or exchanges
maintained by the OTC Markets, Group, Inc. (or any successors to any of the foregoing).

 

"Transaction
Documents" means this Agreement, the Articles of Incorporation, Registration Rights Agreement, Lockup Agreements, the
Warrants, the Escrow Agreement, all exhibits and schedules thereto and hereto and any other documents or agreements executed In
connection with the transactions contemplated hereunder.

 

"Transfer
Agent" means the transfer agent for the Common Stock, and if so appointed, the Preferred Stock, and any successor transfer
agent of the Company. As of the Closing Date, the Company is the Transfer Agent.

 

"Underlying
Shares" means the shares of Common Stock issued and issuable upon conversion of the Preferred Stock in accordance with
the terms of the Articles of Incorporation and upon exercise of the Warrants in accordance with the terms of the Warrants.

 

"Variable
Priced Equity Linked Instruments" shall have the meaning ascribed to such term in Section 4.9.

 

"Variable
Rate Transaction" shall have the meaning ascribed to such term in Section 4.9.

 

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

 

    	5

     

    

 

"Warrants" means the Common Stock purchase warrants delivered
to the Purchasers at the Closing in accordance with Section 2.2(a) hereof, which Warrants shall be exercisable immediately and
have a term of exercise of 3 years, in the form of Exhibit F attached hereto.

 

"Warrant
Shares" means the shares of Common Stock issuable upon exercise of the Warrants.

 

ARTICLE
II. 

PURCHASE
AND SALE

 

2.1          Closing.
On the Closing Date, upon the terms and subject to the conditions set forth herein, substantially
concurrent with the execution and delivery of this Agreement by the parties hereto, the Company agrees to sell, and the Purchasers,
severally and not jointly, agree to purchase, an aggregate of 3,000 shares of Preferred Stock with an aggregate Stated Value for
each Purchaser equal to such Purchaser's Subscription Amount as set forth on the signature page hereto executed by such Purchaser
and Warrants as determined pursuant to Section 2.2(a) (such purchase and sale being the "Closing"). Each Purchaser
shall deliver to the Company such Purchaser's Subscription Amount, and the Company shall deliver to each Purchaser its respective
shares of Preferred Stock and Warrants as determined pursuant to Section 2.2(a), and the Company and each Purchaser shall deliver
the other items set forth in Section 2.2 deliverable at the Closing. Upon satisfaction of the covenants and conditions set forth
in Sections 2.2 and 2.3, the Closing shall occur at the offices of G&M or such other location as the parties shall mutually
agree. Notwithstanding anything herein to the contrary, the Closing Date shall occur on or before July 2, 2014 ("Termination
Date"). If a Closing is not held on or before the Termination Date, the Company shall cause all subscription documents
and funds to be returned, without interest or deduction to each prospective Purchaser.

 

2.2          Deliveries.

 

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

 

(i)            this Agreement duly executed by the Company;

 

(ii)           Officer's
Certificate, a form of which is annexed hereto as Exhibit C;

 

(iii)          the
Registration Rights Agreement duly executed by the Company;

 

(iv)          a
certificate evidencing a number of shares of Preferred Stock equal to such Purchaser's Subscription Amount divided by the Stated
Value, registered in the name of such Purchaser, and a copy of the Articles of Incorporation as filed with the Secretary of State
of Nevada;

 

(v)            a copy of the Lockup Agreements executed by each of the Persons identified on Schedule 2.2(a)(iv);

 

(vi)            a Warrant registered in the name of such Purchaser to purchase up to a number
of shares of Common Stock equal to 50% of such Purchaser's Subscription Amount with an exercise price equal to $1.00 per share,
subject to adjustment as provided therein; and

 

(vii)            the
Escrow Agreement duly executed by the Company.

 

    	6

     

    

 

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

 

(i)            this
Agreement duly executed by such Purchaser;

 

(ii)           the Registration Rights Agreement duly executed by such Purchaser;

 

(iii)          such Purchaser's Subscription Amount by wire transfer or as otherwise permitted under the Escrow Agreement, to the
Escrow Agent; and

 

(iv)          the
Escrow Agreement duly executed by such Purchaser.

 

2.3          Closing
Conditions.

 

(a)            The
obligations of the Company hereunder to effect the Closing are subject to the following
conditions being met:

 

(i)            the accuracy in all material respects (determined without regard to any materiality, Material Adverse Effect or other similar
qualifiers therein) on the Closing Date of the representations and warranties of the Purchasers contained herein (unless as of
a specific date therein in which case they shall be accurate as of such date);

 

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

 

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

 

(b)            The
respective obligations of a Purchaser hereunder to effect the Closing unless waived by such
Purchaser, are subject to the following conditions being met:

 

(i)            the
accuracy in all material respects (determined without regard to any materiality, Material Adverse Effect or other similar qualifiers
therein) on the Closing Date of the representations and warranties of the Company contained herein (unless as of a specific date
therein in which case they shall be accurate as of such date);

 

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

 

(iii)          the Escrow Agent shall have received executed signature pages to this Agreement with an aggregate Subscription Amount of
$3,000,000 prior to the Closing;

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

(v)           there shall have been no Material Adverse Effect with respect to the Company since the date hereof.

 

    	7

     

    

 

ARTICLE
III.

REPRESENTATIONS
AND WARRANTIES

 

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

 

(a)            Subsidiaries.
All of the direct and indirect subsidiaries of the Company and the Company's ownership interests therein as of the date of
this Agreement are set forth on Schedule 3.1(a). The Company owns, directly or indirectly, all of the capital stock or
other equity interests of each Subsidiary free and clear of any Liens, and all of the issued and outstanding shares of capital
stock of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe
for or purchase securities. If the Company has no Subsidiaries relevant to any component of this Agreement, then such reference
shall not be applicable.

 

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

 

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

 

    	8

     

    

 

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

 

(e)          Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any
notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority
or other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other
than: (i) the filing of Form D with the Commission and such filings as are required to be made under applicable state
securities laws, and (ii) the filing with the Commission pursuant to the Registration Rights Agreement (collectively, the "Required
Approvals")

 

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

 

(g)          Capitalization.
The capitalization of the Company is as set forth in Schedule 3.1(g). Except as disclosed on Schedule 3.1(g), no Person
has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions
contemplated by the Transaction Documents. Except as disclosed on Schedule 3.1(g), there are no outstanding options, employee
or incentive stock option plans warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating
to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to
subscribe for or acquire any shares of Common Stock, or contracts, commitments, understandings or arrangements by which the Company
or any Subsidiary is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents. The only stock
option plan in effect as of the Closing Date will be the Stock Option Plan, a copy of which has been provided to Purchasers. Except
as set forth on Schedule 3.1(g), the issuance and sale of the Securities will not obligate the Company to issue shares
of Common Stock or other securities to any Person (other than the Purchasers) and will not result in a right of any holder of
Company securities to adjust the exercise, conversion, exchange or reset price under any of such securities. All of the outstanding
shares of capital stock of the Company are duly authorized, validly issued, fully paid and nonassessable, have been issued in
material compliance with all federal and state securities laws, and none of such outstanding shares was issued in violation of
any preemptive rights or similar rights to subscribe for or purchase securities. No further approval or authorization of any stockholder,
the Board of Directors or others is required for the issuance and sale of the Securities. Except as disclosed in the Transaction
Documents, there are no stockholders agreements, voting agreements or other similar agreements with respect to the Company's capital
stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company's stockholders.

 

    	9

     

    

 

(h)          Financial
Statements. Annexed hereto as Schedule 3.1(h) is financial information of the Company ("Financial Statements").
The Financial Statements have not been prepared in accordance with United States generally accepted accounting principles
applied on a consistent basis during the periods involved ("GAAP"). The Financial Statements fairly present in all material
respects the financial position of the Company and its consolidated Subsidiaries as of and for the dates thereof and the results
of operations and cash flows for the periods then ended, subject to normal, immaterial, year-end audit adjustments and inclusion
of footnotes which would be required pursuant to GAAP.

 

(i)           Material
Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest Financial Statements except as disclosed
or qualified in the Transaction Documents: (i) there has been no event, occurrence or development that has had or that could reasonably
be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any material liabilities (contingent or
otherwise) other than trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice,
(iii) the Company has not altered its method of accounting, (iv) the Company has not declared or made any dividend or distribution
of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of
its capital stock and (v) the Company has not issued any equity securities to any officer, director or Affiliate. The Company
does not have pending before the Commission any request for confidential treatment of information.

 

(j)           Litigation.
There is no action, suit, inquiry, notice of violation, proceeding or
 investigation
pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective
properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state,
county, local or foreign) (collectively, an "Action") which (i) adversely affects or challenges the legality,
validity or enforceability of any of the Transaction Documents or the Securities or (ii) could, if there were an unfavorable decision,
have or reasonably be expected to result in a Material Adverse Effect. Since January 1, 2013, neither the Company nor any Subsidiary,
nor any director or officer thereof, is or has been the subject of any Action involving a claim of violation of or liability under
federal or state securities laws or a claim of breach of fiduciary duty.

 

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

 

    	10

     

    

 

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

 

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

 

(n)             Title
to Assets. Except as set forth in the Financial Statements or on Schedule 3.1(n) or provided to any Purchaser as Company
Information, the Company and the Subsidiaries have good and marketable title in all personal property owned by them that is material
to the business of the Company and the Subsidiaries, in each case free and clear of all Liens, except for (i) Liens as do not
materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such
property by the Company and the Subsidiaries and (ii) Liens for the payment of federal, state or other taxes, for which appropriate
reserves have been made and, the payment of which is neither delinquent nor subject to penalties. The Company and Subsidiaries
do not own any real property. Any real property and facilities held under lease by the Company and the Subsidiaries are held by
them under valid, subsisting and enforceable leases with which the Company and the Subsidiaries are in compliance.

 

(o)             Intellectual
Property.

 

(i)    The term "Intellectual Property Rights" includes:

 

1.    the
name of the Company and each Subsidiary, all fictional business names, trading names, registered and unregistered trademarks,
service marks, and applications of the Company and each Subsidiary (collectively, "Marks");

 

2.    all
patents, patent applications, and inventions and discoveries that may be patentable of the Company and each Subsidiary (collectively,
"Patents");

 

3.    all
copyrights in both unpublished works and published works of the Company and each Subsidiary (collectively, "Copyrights");

 

4.    all
rights in mask works of the Company and each Subsidiary (collectively, "Rights in Mask Works"); and

 

5.    all
know-how, trade secrets, confidential information, customer lists, software, technical information, data, process technology,
plans, drawings, and blue prints (collectively, "Trade Secrets"); owned, used, or licensed by the Company and
each Subsidiary as licensee or licensor

 

(ii)    Agreements.There
are no outstanding and, to Company's knowledge, no threatened disputes or disagreements with respect to any agreements
relating to any Intellectual Property Rights to which the Company is a party or by which the Company is bound.

 

    	11

     

    

 

(iii)    Know-How
Necessary for the Business. The Intellectual Property Rights are all those necessary for the operation of the Company's businesses
as it is currently conducted. The Company is the owner of all right, title, and interest in and to each of the Intellectual Property
Rights, free and clear of all liens, security interests, charges, encumbrances, equities, and other adverse claims, and has the
right to use all of the Intellectual Property Rights. To the Company's knowledge, no employee of the Company has entered into
any contract that restricts or limits in any way the scope or type of work in which the employee may be engaged or requires the
employee to transfer, assign, or disclose information concerning his work to anyone other than of the Company.

 

(iv)    Patents.
The Company does not own any patents.

 

(v)    Trademarks.
The Company is the owner of all right, title, and interest in and to each of the Marks, free and clear of all Liens and other
adverse claims. All Marks that have been registered with the United States Patent and Trademark Office are currently in compliance
with all formal legal requirements (including the timely post-registration filing of affidavits of use and incontestability and
renewal applications), are valid and enforceable, and are not subject to any maintenance fees or taxes or actions falling due
within ninety days after the Closing Date. No Mark has been or is now involved in any opposition, invalidation, or cancellation
and, to the Company's knowledge, no such action is threatened with respect to any of the Marks. To the Company's knowledge: (1)
there is no potentially interfering trademark or trademark application of any third party, and (2) no Mark is infringed or has
been challenged or threatened in any way. To the Company's knowledge, none of the Marks used by the Company infringes or is alleged
to infringe any trade name, trademark, or service mark of any third party.

 

(vi)    Copyrights.
The Company is the owner of all right, title, and interest in and to each of the Copyrights, free and clear of all Liens and
other adverse claims. All the Copyrights are valid and enforceable, and are not subject to any maintenance fees or taxes or actions
falling due within ninety days after the date of the Closing. To the Company's knowledge, no Copyright is infringed or has been
challenged or threatened in any way. To the Company's knowledge, none of the subject matter of any of the Copyrights infringes
or is alleged to infringe any copyright of any third party or is a derivative work based on the work of a third party. All works
encompassed by the Copyrights have been marked with the proper copyright notice.

 

(vii)    Trade
Secrets. With respect to each Trade Secret, the documentation relating to such Trade Secret is current, accurate, and sufficient
in detail and content to identify and explain it and to allow its full and proper use without reliance on the knowledge or memory
of any individual. The Company has taken all reasonable precautions to protect the secrecy, confidentiality, and value of its
Trade Secrets. The Company has good title and an absolute (but not necessarily exclusive) right to use the Trade Secrets. The
Trade Secrets are not part of the public knowledge or literature, and, to the Company's knowledge, have not been used, divulged,
or appropriated either for the benefit of any Person (other the Company) or to the detriment of the Company. No Trade Secret is
subject to any adverse claim or has been challenged or threatened in any way.

 

    	12

     

    

 

(p)             Insurance.
The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks
and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged. Neither
the Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing
insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to
continue its business without a significant increase in cost.

 

(q)           Transactions
With Affiliates and Employees. Except as set forth in the Financial Statements and Transaction Documents, none of the officers
or directors of the Company or any Subsidiary and, to the knowledge of the Company, none of the employees of the Company or any
Subsidiary is presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers
and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing
for rental of real or personal property to or from, providing for the borrowing of money from or lending of money to or otherwise
requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which
any officer, director, or any such employee has a substantial interest or is an officer, director, trustee, stockholder, member
or partner, in each case in excess of $200,000 other than for: (i) payment of salary or consulting fees for services rendered,
(ii) reimbursement for expenses incurred on behalf of the Company and (iii) except as disclosed on Schedule 3.1(g). A copy
of the employment agreement between the Company and Bernard Warman has been provided to the Purchasers.

 

(r)            Certain
Fees. Except as set forth on Schedule 3.1(r), no brokerage, finder's fees, commissions or due diligence fees are or
will be payable by the Company or any Subsidiary to any broker, financial advisor or consultant, finder, placement agent, investment
banker, bank or other Person with respect to the placement of the Securities as contemplated by the Transaction Documents. The
Purchasers shall have no obligation with respect to any such fees or with respect to any claims made by or on behalf of other
Persons for fees of a type contemplated in this Section 3.1(r) that may be due in connection with the transactions contemplated
by the Transaction Documents.

 

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

 

(t)            Registration
Rights. No Person has any right to cause the Company or any Subsidiary to effect the registration under the Securities Act
of any securities of the Company or any Subsidiary except as set forth on Schedule 3.1(t).

 

(u)           Application
of Takeover Protections. As of the Closing Date, the Company will have taken all necessary action, if any, in order to render
inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement)
or other similar anti-takeover provision under the Company's certificate of incorporation (or similar charter documents) or the
laws of the State of Nevada that is or could become applicable to the Purchasers as a result of the Purchasers and the Company
fulfilling their obligations or exercising their rights under the Transaction Documents, including without limitation as a result
of the Company's issuance of the Securities and the Purchasers' ownership of the Securities.

 

(v)           Disclosure.
All of the disclosure furnished by or on behalf of the Company to the Purchasers regarding the Company and its Subsidiaries,
their respective businesses and the transactions contemplated hereby, including the Disclosure Schedules to this Agreement, when
taken together as a whole, is true and correct and does not contain any untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made,
not misleading. The Company acknowledges and agrees that no Purchaser makes or has made any representations
or warranties with respect to the transactions contemplated hereby other than those specifically set forth herein.

 

    	13

     

    

 

(w)          Solvency.
Based on the consolidated financial condition of the Company as of the Closing Date, and the Company's good faith estimate
of the fair market value of its assets, after giving effect to the receipt by the Company of the proceeds from the sale of the
Securities hereunder: (i) the fair saleable value of the Company's assets exceeds the amount that will be required to be paid
on or in respect of the Company's existing debts and other liabilities (including known contingent liabilities) as they mature,
(ii) the Company's assets do not constitute unreasonably small capital to carry on its business as now conducted and as proposed
to be conducted including its capital needs taking into account the particular capital requirements of the business conducted
by the Company, consolidated and projected capital requirements and capital availability thereof, and (iii) the current cash flow
of the Company, together with the proceeds the Company would receive, were it to liquidate all of its assets, after taking into
account all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect of its liabilities when such
amounts are required to be paid. The Company does not intend to incur debts beyond its ability to pay such debts as they mature
(taking into account the timing and amounts of cash to be payable on or in respect of its debt). The Company has no knowledge
of any facts or circumstances which lead it to believe that it will file for reorganization or liquidation under the bankruptcy
or reorganization laws of any jurisdiction within one year from the Closing Date. Schedule 3.1(w) sets forth as of the
date hereof all outstanding liens secured and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company
or any Subsidiary has commitments which has not been disclosed in the Financial Statements and Company Information. For the purposes
of this Agreement, "Indebtedness" means (x) any liabilities for borrowed money or amounts owed in excess of $400,000
other than debt financing from a licensed United States bank regularly engaged in such lending activity, and (y) 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, but in all cases excluding trade accounts payable incurred
by the Company and its Subsidiaries in the ordinary course of business; and (z) the present value of any lease payments in excess
of $400,000 due under leases required to be capitalized in accordance with GAAP. Neither the Company nor any Subsidiary is in
default with respect to any material Indebtedness.

 

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

 

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

 

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

 

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

 

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

 

(cc)           Private
Placement. Assuming the accuracy of the Purchasers' representations and warranties set forth in Section 3.2, no registration
under the Securities Act is required for the offer and sale of the Securities by the Company to the Purchasers as contemplated
hereby.

 

(dd)           No General
Solicitation or Integration. To the best knowledge of the Company, neither the Company nor any person acting on behalf of
the Company has offered or sold any of the Securities by any form of general solicitation or general advertising. To the best
knowledge of the Company, the Company has offered the Securities for sale only to the Purchasers and certain other "accredited
investors" within the meaning of Rule 501 under the Securities Act. Assuming the accuracy of the Purchasers' representations
and warranties set forth in Section 3.2, neither the Company, nor any of its Affiliates, nor any Person acting on its or their
behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under
circumstances that would cause this offering of the Securities to be integrated with prior offerings by the Company for purposes
of: (i) the Securities Act which would require the registration of any such securities under the Securities Act, or (ii) any applicable
shareholder approval provisions of any Trading Market on which any of the securities of the Company are listed or designated.

 

(ee)         Survival. The foregoing representations and warranties shall survive the Closing Date.

 

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

 

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

 

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

 

(c)           Purchaser
Status. At the time such Purchaser was offered the Securities, it was, and as of the date hereof it is, and on each date on
which it exercises any Warrants or converts any shares of Preferred Stock it will be either: (i) an "accredited investor"
as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii) a "qualified institutional
buyer" as defined in Rule 144A(a) under the Securities Act. Such Purchaser is not required to be registered as a broker-dealer
under Section 15 of the Exchange Act. Such Purchaser has the authority and is duly and legally qualified to purchase and own the
Securities. Such Purchaser is able to bear the risk of such investment for an indefinite period and to afford a complete loss
thereof. Such Purchaser has provided the information in the Accredited Investor Questionnaire attached hereto as Exhibit E
(the "Investor Questionnaire"). The information set forth on the signature pages hereto and the Investor
Questionnaire regarding such Purchaser is true and complete in all respects. Except as disclosed in the Investor Questionnaire,
such Purchaser has had no position, office or other material relationship within the past three years with the Company or Persons
(as defined below) known to such Purchaser to be affiliates of the Company, and is not a member of the Financial Industry Regulatory
Authority or an "associated person" (as such term is defined under the FINRA Membership and Registration Rules Section
1011).

 

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

 

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(e)           Information
on Company. Such Purchaser has been furnished with or has had access to the Company's Financial Statements, books and records,
website, and documents and financial data (hereinafter referred to collectively as the "Company Information"). Purchasers
are not deemed to have any knowledge of any information not included in the Company Information. Such Purchaser believes that
it has received or had access to all the information such Purchaser considers necessary or appropriate for deciding whether to
purchase the Securities and considered all factors such Purchaser deems material in deciding on the advisability of investing
in the Securities. Such Purchaser was afforded (i) the opportunity to ask such questions as such Purchaser deemed necessary of,
and to receive answers from representatives of the Company concerning the merits and risks of acquiring the Securities; (ii) the
right of access to information about the Company and its financial condition, results of operations, business, properties, management
and prospects sufficient to enable such Purchaser to evaluate the Securities; and (iii) the opportunity to obtain such additional
information that the Company possesses or can acquire without unreasonable effort or expense that is necessary to make an informed
investment decision with respect to acquiring the Securities. Such Purchaser acknowledges that it is not relying on any statements
or representations of the Company or its agents for legal advice with respect to this investment or the transactions contemplated
by this Agreement or the Transaction Documents.

 

(f)            Compliance
with Securities Act; Reliance on Exemptions. Such Purchaser understands and agrees that the Securities have not been registered
under the 1933 Act or any applicable state securities laws, by reason of their issuance in a transaction that does not require
registration under the 1933 Act, and that such Securities must be held indefinitely unless a subsequent disposition is registered
under the 1933 Act or any applicable state securities laws or is exempt from such registration. Such Purchaser understands and
agrees that the Securities are being offered and sold to such Purchaser in reliance on specific exemptions from the registration
requirements of United States federal and state securities laws and regulations and that the Company is relying in part upon the
truth and accuracy of, and such Purchaser's compliance with, the representations, warranties, agreements, acknowledgments and
understandings of such Purchaser set forth herein in order to determine the availability of such exemptions and the eligibility
of such Purchaser to acquire the Securities.

(g)           Communication
of Offer. Such Purchaser is not purchasing the Securities as a result of any "general solicitation" or "general
advertising," as such terms are defined in Regulation D, which includes, but is not limited to, any advertisement, article,
notice or other communication regarding the Securities published in any newspaper, magazine or similar media or on the internet
or broadcast over television, radio or the internet or presented at any seminar or any other general solicitation or general advertisement.

 

(h)           No
Governmental Review. Such Purchaser understands that no United States federal or state agency or any other governmental or
state agency has passed on or made recommendations or endorsement of the Securities or the suitability of the investment in the
Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

 

(i)             No
Conflicts. The execution, delivery and performance of this Agreement and performance under the other Transaction Documents
and the consummation by such Purchaser of the transactions contemplated hereby and thereby or relating hereto or thereto do not
and will not (i) result in a violation of such Purchaser's charter documents, bylaws or other organizational documents, if applicable,
(ii) conflict with nor constitute a default (or an event which with notice or lapse of time or both would become a default) under
any agreement to which such Purchaser is a party, nor (iii) result in a violation of any law, rule, or regulation, or any order,
judgment or decree of any court or governmental agency applicable to such Purchaser or its properties (except for such conflicts,
defaults and violations as would not, individually or in the aggregate, have a material adverse effect on such Purchaser). Such
Purchaser is not required 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 this Agreement
or perform under the other Transaction Documents nor to purchase the Securities in accordance with the terms hereof, provided
that for purposes of the representation made in this sentence, such Purchaser is assuming and relying upon the accuracy of the
relevant representations and agreements of the Company herein.

 

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(j)             Tax
Liability. Such Purchaser has reviewed with its own tax advisors the federal, state, local and foreign tax consequences of
this investment and the transactions contemplated by this Agreement. Such Purchaser understands that it (and not the Company)
shall be responsible for its own tax liability that may arise as a result of this investment or the transactions contemplated
by this Agreement.

 

(k)          Survival.
The foregoing representations and warranties shall survive the Closing Date.

 

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

 

ARTICLE
IV.

OTHER
AGREEMENTS OF THE PARTIES

 

4.1          Transfer
Restrictions.

 

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

 

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

 

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

 

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

 

(c)           Certificates evidencing the Underlying Shares shall not contain any legend (including the legend set forth in Section 4.1(b)
hereof): (i) while a registration statement (including the Registration Statement) covering the resale of such security is effective
under the Securities Act, (ii) following any sale of such Underlying Shares pursuant to Rule 144, (ii) following the sale of such
Underlying Shares pursuant to Rule 144, or (iii) if such legend is not required under applicable requirements of the Securities
Act (including judicial interpretations and pronouncements issued by the staff of the Commission). The Company agrees that following
such time as such legend is no longer required under this Section 4.1(c), it will, no later than ten (10) Business Days following
the delivery by a Purchaser to the Company or the Transfer Agent of a certificate representing Underlying Shares issued with a
restrictive legend (such tenth Business Day, the "Legend Removal Date"), together with all representation letters,
certificates and legal opinions required by the Transfer Agent, deliver or cause to be delivered to such Purchaser a certificate
representing such shares that is free from all restrictive and other legends (however, the Corporation shall use reasonable best
efforts to deliver such shares within seven (7) Business Days). The Company may not make any notation on its records or give instructions
to the Transfer Agent that enlarge the restrictions on transfer set forth in this Section 4.

 

(d)           Resale Requirements. Each Purchaser, severally and not jointly with the other Purchasers, agrees with the Company
that such Purchaser will sell the Securities pursuant to either the registration requirements of the Securities Act, including
any applicable prospectus delivery requirements, or an exemption therefrom, and that if Securities are sold pursuant to a registration
statement, they will be sold in compliance with the plan of distribution set forth therein, and acknowledges that the removal of
the restrictive legend from certificates representing Securities as set forth in this Section 4.1 is predicated upon the Company's
reliance upon this understanding.

 

(e)           Remedies.
Commencing after the occurrence of a Going Public Event, in addition to such Purchaser's other available remedies, the Company
shall pay to a Purchaser, in cash, as partial liquidated damages and not as a penalty, for each $1,000 of Preferred Shares or
Warrant Shares (based on the greater of the VWAP of the Common Stock on the date such Securities are submitted to the Transfer
Agent or the purchase price of such Securities) delivered for removal of the restrictive legend and Preferred Stock delivered
for conversion into Shares, $10 per Trading Day for each Trading Day following the Legend Removal Date or the date such Securities
are to be delivered pursuant to the Certificate of Designation until such Common Stock
certificate is delivered without a legend pursuant to Section 4.1(c) or such Conversion Shares, as required pursuant to the Certificate
of Designation, as the case may be. Nothing herein shall limit such Purchaser's right to elect in lieu of the aforedescribed liquidated
damages to pursue actual damages for the Company's failure to deliver certificates representing any Underlying Shares as required
by the Transaction Documents, and such Purchaser shall have the right to pursue all remedies available to it at law or in equity
including, without limitation, a decree of specific performance and/or injunctive relief.

 

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(f)            Injunction.
In the event a Purchaser shall request delivery of Securities as described in this Section 4.1 or Common Stock pursuant to
the Certificate of Designation and the Company is required to deliver such Securities, the Company may not refuse to deliver Securities
based on any claim that such Purchaser or anyone associated or affiliated with such Purchaser has not complied with Purchaser's
obligations under the Transaction Documents, or for any other reason, unless, an injunction or temporary restraining order from
a court, on notice, restraining and or enjoining delivery of such unlegended shares shall have been sought and obtained by the
Company and the Company has posted a surety bond for the benefit of such Purchaser in the amount of the greater of (i) 120% of
the amount of the aggregate purchase price of the Securities which is subject to the injunction or temporary restraining order,
or (ii) the VWAP of the Common Stock on the trading day before the issue date of the injunction multiplied by the number of Securities
to be subject to the injunction, which bond shall remain in effect until the completion of arbitration/litigation of the dispute
and the proceeds of which shall be payable to such Purchaser to the extent Purchaser obtains judgment in Purchaser's favor.

 

(g)           Buy-In.
In addition to any other rights available to Purchaser, if the Company fails to deliver to a Purchaser Securities as required
pursuant to this Agreement or pursuant to the Certificate of Designation and after the Legend Removal Date or required delivery
date pursuant to the Certificate of Designation the Purchaser, or a broker on the Purchaser's behalf, purchases (in an open market
transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by such Purchaser of the shares of Common
Stock which the Purchaser was entitled to receive in unlegended form from the Company (a "Buy-In"), then the
Company shall promptly pay in cash to the Purchaser (in addition to any remedies available to or elected by the Purchaser) the
amount, if any, by which (A) the Purchaser's total purchase price (including brokerage commissions, if any) for the shares of
Common Stock so purchased exceeds (B) the aggregate purchase price of the shares of Common Stock delivered to the Company for
reissuance as unlegended Shares or as are required to be delivered pursuant to the Certificate of Designation, as the case may
be, together with interest thereon at a rate of 15% per annum accruing until such amount and any accrued interest thereon is paid
in full (which amount shall be paid as liquidated damages and not as a penalty). For example, if a Purchaser purchases shares
of Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to $10,000 of purchase price of Shares
delivered to the Company for reissuance as unlegended shares, the Company shall be required to pay the Purchaser $1,000, plus
interest, if any. The Purchaser shall provide the Company written notice indicating the amounts payable to the Purchaser in respect
of the Buy-In.

 

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

 

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4.3           Furnishing
of Information. The Company covenants and agrees with the Purchaser that commencing
for the periods ending ninety (90) days after the Closing Date and until the sooner of (i) such time that the Company becomes
subject to the reporting requirements under Section 13 or 15(d) of the Exchange Act, or (i) until two (2) years after the Closing
date, the Company shall deliver to the Purchaser: (i) for each of its first three fiscal quarters unaudited quarterly financial
statements within 75 days after each quarter-end, (ii) annual audited financial statements within 120 days of year-end, and (iii)
copies of any documents or data furnished to the Company's stockholders in their capacity as Company stockholders regarding the
Company or its affairs, simultaneously with the furnishing of such documents or data to such stockholders. The foregoing obligations
will be deemed satisfied if such financial statements have been filed with the Commission and are available on the EDGAR system.

 

4.4         Conversion
and Exercise Procedures. Each of the form of Notice of Exercise included in the Warrants and the form of Notice of Conversion
included in the Articles of Incorporation sets forth the totality of the procedures required of the Purchasers in order to exercise
the Warrant or convert the Preferred Stock. No additional legal opinion, other information or instructions shall be required of
the Purchasers to exercise their Warrants or convert their Preferred Stock. The Company shall honor exercises of the Warrants
and conversions of the Preferred Stock and shall deliver Underlying Shares in accordance with the terms, conditions and time periods
set forth in the Transaction Documents.

 

4.5           Use
of Proceeds. The proceeds of the offering will be employed by the Company substantially
for the purposes set forth on Schedule 4.5. Except as set forth on Schedule 4.5, the Company may not use the net
proceeds from the sale of the Securities or other funds to satisfy any non-trade debt or debt not incurred in the ordinary course
of business. Deviations of less than 10% per item or 35% in the aggregate shall not be deemed material. The proceeds of the offering
and other funds available to the Company may and will be used to purchase directors and officers liability insurance in an amount
and for coverage determined from time to time by the Company's Chief Executive Officer.

 

4.6         Indemnification
of Purchasers.Subject to the provisions of this Section 4.10, the Company will indemnify and hold each Purchaser and its
directors, officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent
role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser
(within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders,
agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles
notwithstanding a lack of such title or any other title) of such controlling persons (each, a "Purchaser Party")
harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including
all judgments, amounts paid in settlements, court costs and reasonable attorneys' fees and costs of investigation that any such
Purchaser Party may suffer or incur as a result of or relating to any breach of any of the representations, warranties, covenants
or agreements made by the Company in this Agreement or in the other Transaction Documents. If any action shall be brought against
any Purchaser Party in respect of which indemnity may be sought pursuant to this Agreement, such Purchaser Party shall promptly
notify the Company in writing, and the Company shall have the right to assume the defense thereof with counsel of its own choosing
reasonably acceptable to the Purchaser Party. Any Purchaser Party shall have the right to employ separate counsel in any such
action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Purchaser
Party except to the extent that (i) the employment thereof has been specifically authorized by the Company in writing, (ii) the
Company has failed after a reasonable period of time to assume such defense and to employ counsel or (iii) in such action there
is, in the reasonable opinion of counsel, a material conflict on any material issue between the position of the Company and the
position of such Purchaser Party, in which case the Company shall be responsible for the reasonable fees and expenses of no more
than one such separate counsel. The Company will not be liable to any Purchaser Party under this Agreement (y) for any settlement
by a Purchaser Party effected without the Company's prior written consent, which shall not be unreasonably withheld or delayed;
or (z) to the extent, but only to the extent that a loss, claim, damage or withheld or delayed; or (z) to the extent, but only
to the extent that a loss, claim, damage or liability is attributable to any Purchaser Party's breach of its representations,
warranties or covenants under the Transaction Documents or any agreements or understandings such Purchaser Party may have with
any such stockholder or any violations by such Purchaser Party of state or federal securities laws or any conduct by such Purchaser
Party which constitutes fraud, gross negligence, willful misconduct or malfeasance. The indemnification required by this Section
4.6 shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as and when bills
are received or are incurred however, each Purchaser Party who receives such interim payment agrees to reimburse the Company for
any such payment made by the Company to such Purchaser Party if it is finally determined in such action or proceeding that such
Purchaser Party is not entitled to indemnification pursuant to this Section 4.6.

 

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4.7          Reservation
and Listing of Securities.

 

(a)           The Company shall maintain a reserve from its duly authorized shares of Common Stock for issuance pursuant to the Transaction
Documents in such amount as may then be required to fulfill its obligations in full under the Transaction Documents, but not less
than the Required Minimum.

 

(b)           If,
on any date, the number of authorized but unissued (and otherwise unreserved) shares of Common Stock is less than the Required
Minimum on such date, then the Board of Directors shall amend the Company's certificate or articles of incorporation to increase
the number of authorized but unissued shares of Common Stock to at least the Required Minimum at such time, as soon as possible
and in any event not later than the 60th day after such date. The Company will have no liability for failure to maintain
the Required Minimum in the event any Purchaser fails to vote his Securities in favor of any action reasonably required by the
Company to attain the Required Minimum.

 

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

 

4.9           Subsequent
Equity Sales. Except in connection with a Going Public Event, without prior

written
approval from Purchaser, from the date hereof until the End Date, the Company will not, without the consent of the
Purchasers, enter into any Equity Line of Credit or similar agreement, nor issue nor agree to issue any common stock,
floating or Variable Priced Equity Linked Instruments nor any of the foregoing or equity with price reset rights (subject to
adjustment for stock splits, distributions, dividends, recapitalizations and the like) (collectively, the "Variable
Rate Transaction"). For purposes hereof, "Equity Line of Credit" shall include any transaction
involving a written agreement between the Company and an investor or underwriter whereby the Company has the right to
"put" its securities to the investor or underwriter over an agreed period of time and at an agreed price or price
formula, and "Variable Priced Equity Linked Instruments" shall include: (A) any debt or equity securities
which are convertible into, exercisable or exchangeable for, or carry the right to receive additional shares of Common Stock
either (1) at any conversion, exercise or exchange rate or other price that is based upon and/or varies with the trading
prices of or quotations for Common Stock at any time after the initial issuance of such debt or equity security, or (2) with
a fixed conversion, exercise or exchange price that is subject to being reset at some future date at any time after the
initial issuance of such debt or equity security due to a change in the market price of the Company's Common Stock since date
of initial issuance, and (B) any amortizing convertible security which amortizes prior to its maturity date, where the
Company is required or has the option to (or any investor in such transaction has the option to require the
Company to) make such amortization payments in shares of Common Stock which are valued at a price that is based upon and/or
varies with the trading prices of or quotations for Common Stock at any time after the initial issuance of such debt or
equity security (whether or not such payments in stock are subject to certain equity conditions). For purposes of determining
the total consideration for a convertible instrument (including a right to purchase equity of the Company) issued, subject to
an original issue or similar discount or which principal amount is directly or indirectly increased after issuance, the
consideration will be deemed to be the actual cash amount received by the Company in consideration of the original issuance
of such convertible instrument.

 

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

 

4.11         Certain
Transactions and Confidentiality. Each Purchaser, severally and not jointly with the other Purchasers, covenants that
neither it, nor any Affiliate acting on its behalf or pursuant to any understanding with it will execute any Short Sales of
any of the Company's securities.

 

4.12         Maintenance of Property. Until the Company becomes subject to the reporting requirements of Section 13 or 15(d) under the
Exchange Act, the Company shall keep all of its property, which is necessary or useful to the conduct of its business, in good
working order and condition, ordinary wear and tear excepted.

 

4.13         Appointment
of Directors. Until the first to occur of: (i) a Going Public Event, (ii) the Purchasers
own in the aggregate fewer than 20% (on an as converted basis) of the Preferred Stock and Common Stock issued upon conversion
thereof, or (iii) two years after the Closing Date ("End Date"), the Company becomes subject to the reporting
requirements of Section 13 or 15(d) under the Exchange Act, the Board of Directors of the Company shall consist of no more than
five (5) directors, two (2) of which will be appointed by Bernard Warman, two (2) of which will be appointed by a Majority in
Interest of the Purchasers and one (1) of which will be appointed by the other four (4) directors. The initial Board of Directors
as of the Closing Date is set forth on Schedule 4.13 hereto. The Company and Purchasers agree to take all action necessary
to effectuate the foregoing composition of the Board of Directors of the Company from time to time including voting any securities
owned by them in favor of all such directors and their replacements at any time such approval may be requested or required.

 

4.14        Appointment of Officers. Prior to the Public Company Date, the Board of Directors of the Company will appoint a Chief Executive
Officer and Chief Financial Officer reasonably acceptable to Investors and Bernard Warman.

 

4.15         Going
Public Event. In lieu of complying with the obligations set forth in the Registration
Rights Agreement, on or before the Public Company Date, the Company may, subject to the approval of a Majority in Interest, enter
into a binding agreement for the purpose of consummating a merger or business combination with a company that has a class of equity
subject to the reporting requirements of Section 13 or 15(d) under the Exchange Act for the purpose of having the class of Common
Stock issuable upon conversion of the Preferred Stock become subject to the reporting requirements of Section 13 or 15(d) under
the Exchange Act and qualify for such class of equity to be traded or listed on a Trading Market. The Company will engage counsel
identified on Schedule 4.15, effective not later than the Closing Date to prepare
and file the Registration Statement. The Registration Statement being declared effective by the Commission of the Company having
a class of equity subject to the reporting requirements of Section 13 or 15(d) is referred to herein as the "Going Public
Event".

 

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4.16        Indebtedness. Until the sooner of the Effective Date or until less than 20% of the Preferred Stock is outstanding, the Company
may not incur Indebtedness without the consent of the Purchasers.

 

4.17        Preservation of Corporate Existence. Until the Company becomes subject to the reporting requirements of Section 13 or 15(d)
under the Exchange Act, the Company shall preserve and maintain its corporate existence, rights, privileges and franchises in
the jurisdiction of its incorporation, and qualify and remain qualified, as a foreign corporation in each jurisdiction in which
such qualification is necessary in view of its business or operations and where the failure to qualify or remain qualified might
reasonably have a Material Adverse Effect upon the financial condition, business or operations of the Company taken as a whole.

 

4.18        (a)          Purchase
Price Reset. From the date hereof until two years after the date of the Going
Public Event (the "Protection Period"), in the event that the Company issues or sells any shares of Common Stock
or any Common Stock Equivalent (calculated on an as converted, as exercised basis) pursuant to which shares of Common Stock may
be acquired at a price less than the Conversion Price at which Common Stock was acquired upon conversion of the Preferred Stock
(a "Share Dilutive Issuance") (adjusted as described in Section 5.21), then the Company shall promptly issue
additional shares of Common Stock to the Purchasers who held such outstanding Common Stock on the date of such Share Dilutive
Issuance, for no additional consideration, in an amount sufficient so that the aggregate amount paid for such outstanding Common
Stock held by Purchasers on the date of such Share Dilutive Issuance, when divided by the sum of (i) the total number of outstanding
Common Stock received upon conversion of Preferred Stock held by the Purchasers on the date of such Share Dilutive Issuance, (ii)
any other shares of Common Stock then or theretofore issued in respect of such outstanding Common Stock received upon conversion
of Preferred Stock (by stock split, stock dividend and similar event) that resulted in an adjustment pursuant to Section 5.21,
and (iii) all Additional Shares issued with respect to such outstanding Common Stock received upon conversion of Preferred Stock
held by the Purchasers on the date of such Share Dilutive Issuance that were issued as a result of Share Dilutive Issuances that
occurred prior to such Share Dilutive Issuance, will equal the price per share of Common Stock in such Share Dilutive Issuance,
(each such adjustment, a "Share Dilution Adjustment", and such shares, the "Additional Shares").
The Additional Shares to be issued in a Share Dilution Adjustment shall be issued by the Company to the Purchasers who held
outstanding Common Stock received upon conversion of Preferred Stock on the date of the applicable Share Dilutive Issuance (in
proportion to the number of such Common Stock received upon conversion of Preferred Stock held by such Purchasers on the date
of such Share Dilutive Issuance). Such Share Dilution Adjustment shall be made successively whenever such an issuance is made.
Such Additional Shares must be delivered to the applicable Purchasers not later than ten (10) Business Days after the date the
Share Dilutive Issuance occurs (the "Share Delivery Date").

 

(b)           Certificate
as to Adjustments. In each case of any adjustment or readjustment in the Shares of Common Stock issued on conversion of the
Preferred Stock pursuant to this Section 4.18, the Company at its expense will promptly cause its Chief Financial Officer or other
appropriate designee to compute such adjustment or readjustment and prepare a certificate setting forth such adjustment or readjustment
and showing in detail the facts upon which such adjustment or readjustment is based. The Company will promptly mail a copy of
each such certificate to the Purchaser. Purchaser will be entitled to the benefit of the adjustment regardless of the giving of
such notice.

 

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(c)           Obligation
Absolute; Partial Liquidated Damages. The Company's obligations to issue
and deliver Additional Shares in accordance with the terms hereof are absolute and unconditional, irrespective of any action
or inaction by the Purchaser to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of
any judgment against any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or
termination, or any breach or alleged breach by the Purchaser or any other Person of any obligation to the Company or any
violation or alleged violation of law by the Purchaser or any other Person, and irrespective of any other circumstance which
might otherwise limit such obligation of the Company to the Purchaser in connection with the issuance of such Additional
Shares; provided, however, that such delivery shall not operate as a waiver by the Company of any such action the
Company may have against the Purchaser. If the Company fails for any reason within its control to deliver to the Purchaser
such certificate or certificates pursuant to this Section 4.14 by the Share Delivery Date, the Company shall pay to the
Purchaser, in cash, as liquidated damages and not as a penalty, 1% per day Trading Day of the product of (A) such number of
Additional Shares that the Company was required to deliver to such Purchaser by the Share Delivery Date multiplied by (B) the
highest Closing Sale Price (as defined) of the Common Stock on any Trading Day during the period commencing on the date of a
Share Dilutive Issuance by the Company and ending on the date of such delivery this clause 4.18(c) for each Trading Day after
such Share Delivery Date until such certificates are delivered. Nothing herein shall limit a Purchaser's right to elect in
lieu of the aforedescribed liquidated damages to pursue actual damages pursuant to this Section for the Company's failure to
deliver shares within the period specified herein and the Purchaser shall have the right to pursue all remedies available to
it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief.
The exercise of any such rights shall not prohibit the Purchaser from seeking to enforce damages pursuant to any other
Section hereof or under applicable law.

 

Notwithstanding
the foregoing, this Section 4.18 shall not apply in respect of an Exempt Issuance nor after two (2) years after the occurrence
of a Going Public Event. No adjustment shall be made hereunder which would require the Purchaser to surrender any shares to the
Company. The holder of outstanding Additional Shares is granted the same rights and benefits as a holder of outstanding Common
Stock received upon conversion of Preferred Stock pursuant to the Transaction Documents, except the rights and benefits of this
Section 4.18 and except that such rights and benefits shall not apply to a holder of outstanding Additional Shares after such outstanding
Additional Shares have been sold pursuant to an effective registration statement under the Securities Act or pursuant to Rule 144
without further restrictions or conditions to transfer pursuant to Rule 144.

 

4.19        Participation
in Future Financings.

 

(a)          From the date hereof through the end of the Protection Period, upon any proposed issuance by the Company or any of its Subsidiaries
of Common Stock or Common Stock Equivalents for cash consideration, having an aggregate sales price of not less than $150,000 in
each instance, or not less than $250,000 with respect to borrowed money, other than (i) a rights offering to all holders of Common
Stock, (ii) an underwritten public offering of Common Stock or Common Stock Equivalents, (iii) an Exempt Issuance, or (iv) Indebtedness
(a "Subsequent Financing")., the Purchasers that still own outstanding Securities shall have the right to participate
in up to an amount of the Subsequent Financing equal to 100% of the Subsequent Financing (but not less than 100% of a Subsequent
Financing with respect to money to be borrowed from a United States or State licensed bank) (the "Participation Maximum")
on the same terms, conditions and price provided for in the Subsequent Financing.

 

(b)         At
least five (5) Trading Days prior to the closing of the Subsequent Financing, the Company shall deliver to each Purchaser a written
notice of its intention to effect a Subsequent Financing ("Pre-Notice"), which Pre-Notice shall ask such Purchaser
if it wants to review the details of such financing (such additional notice, a "Subsequent Financing Notice")..
Upon the request of a Purchaser, and only upon a request by such Purchaser, for a Subsequent Financing Notice, the Company shall
promptly, but no later than two (2) Trading Days after such request,
deliver a Subsequent Financing Notice to such Purchaser. The Subsequent Financing Notice shall describe in reasonable detail the
proposed terms of such Subsequent Financing, the amount of proceeds intended to be raised thereunder and the Person or Persons
through or with whom such Subsequent Financing is proposed to be effected and shall include a term sheet or similar document relating
thereto as an attachment.

 

    	25

     

    

 

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

 

(d)          If
by 5:30 p.m. (New York City time) on the third (3rd) Trading Day after all of the Purchasers have received the Pre-Notice,
notifications by the Purchasers of their willingness to participate in the Subsequent Financing (or to cause their designees who
at the time are Accredited Investors to participate) is, in the aggregate, equal to or less than the aggregate amount of the Participation
Maximum, then the Company may effect the remaining portion of such Subsequent Financing on the terms and with the Persons set
forth in the Subsequent Financing Notice.

 

(e)           If
by 5:30 p.m. (New York City time) on the third (3rd) Trading Day after all of the Purchasers have received the Pre-Notice,
the Company receives responses to a Subsequent Financing Notice from Purchasers seeking to purchase more than the aggregate amount
of the Participation Maximum, each such Purchaser shall have the right to purchase its Pro Rata Portion (as defined below) of
the Participation Maximum. "Pro Rata Portion" means the ratio of (x) the Subscription Amount of Shares purchased
hereunder by a Purchaser participating under this Section 4.19 and (y) the sum of the aggregate Subscription Amounts of Securities
purchased hereunder by all Purchasers participating under this Section 4.19.

 

(f)           The
Company must provide the Purchasers with a second Subsequent Financing Notice, and the Purchasers will again have the right of
participation set forth above in this Section 4.19, if the Subsequent Financing subject to the initial Subsequent Financing Notice
is not consummated for any reason on the terms set forth in such Subsequent Financing Notice within forty-five (45) Trading Days
after the date of the initial Subsequent Financing Notice.

 

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

 

(h)          Notwithstanding
anything to the contrary in this Section 4.19 and unless otherwise agreed to by such Purchaser, the Company shall either confirm
in 'writing to such Purchaser that the transaction with respect to the Subsequent Financing has been abandoned or shall publicly
disclose the closing of the Subsequent Financing, in either case in such a manner such that such Purchaser will not be in possession
of any material, non-public information, by the fourth (4th) Business Day following the closing of the Subsequent Financing.

 

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4.20        Maximum Payments. The maximum amount of liquidated damages that may be paid by the Company to any Purchaser pursuant to the Transaction
Documents, including but not limited to Sections 3.2(e) and 4.18(c) of this Agreement may not exceed twelve percent (12%) of the
Subscription Amount paid by each such Purchaser.

 

ARTICLE
V.

MISCELLANEOUS

 

5.1           Termination.
This Agreement may be terminated by any Purchaser, as to such Purchaser's obligations hereunder only and without any effect
whatsoever on the obligations between the Company and the other Purchasers, by written notice to the other parties, if the
Closing has not been consummated on or before July 2, 2014; provided, however, that such termination will not affect
the right of any party to sue for any breach by any other party (or parties).

 

5.2            Fees
and Expenses. Except as expressly set forth on  Schedule 3.1(r), each party shall pay
the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such
party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all
Transfer Agent fees, stamp taxes and other taxes and duties levied in connection with the delivery of any Securities to the Purchasers.

 

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

 

5.4          Notices.
All notices, demands, requests, consents, approvals, and other communications required
or permitted hereunder or with respect to the Preferred Stock shall be in writing and, unless otherwise specified herein, shall
be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii)
delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile,
addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any
notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or
delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, 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: (i) if to the Company, to: PishPosh, Inc., 320 Cross Street, Lakewood, NJ 08701, Attn: Bernard Warman, Chief Executive Officer,
facsimile: (732) 730-7550, with a copy by fax only to (which shall not constitute notice): Grushko &. Mittman, P.C., 515 Rockaway
Avenue, Valley Stream, New York 11581, Attn: Edward M. Grushko, Esq., facsimile: (212) 697-3575, and (ii) if to the Purchasers,
to: the addresses and fax numbers indicated on the signature pages hereto, with an additional copy by fax only to (which shall
not constitute notice): Quarles & Brady LLP, with offices located at 1395 Panther Lane, Suite 300, Naples, FL 34109, Attn:
Laura M. Holm, Esq., facsimile: (239) 434-4999.

 

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

 

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

 

5.7           Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted
assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of
each Purchaser (other than by merger). Following the Closing, any Purchaser may assign, on ten (10) Business Day prior notice
any or all of its rights under this Agreement to any Person to whom such Purchaser assigns or transfers any Securities, provided
that such transferee agrees in writing to be bound with respect to the transferred Securities by the provisions of the Transaction
Documents that apply to the "Purchasers" and is able to make each and every representation made by Purchasers in this
Agreement. No assignment by a Purchaser will be allowed if the result would be an increase in the number of actual or beneficial
owners of the assigned securities.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	30

     

    

 

5.21       Equitable
Adjustment. Trading volume amounts, price/volume amounts and similar figures in the Transaction Documents shall be
equitably adjusted (but without duplication) to offset the effect of stock splits, similar events and as otherwise described in
this Agreement and Warrants.

 

 

(Signature
Pages Follow)

 

 

    	31

     

    

 

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

 

	PISHPOSH, INC.	 	Address for Notice:
		 	 
	 	 	320 Cross Street
	 	 	Lakewood, NJ 08701
		 	Fax: (732) 730-7550
	By:	 	 	 
	 	Name: Bernard Warman	 	 
	 	Tittle: Chief Executive Officer	 	 

 

With a
copy to (which shall not constitute notice):

 

Grushko
& Mittman, P.C.

515
Rockaway Avenue

Valley
Stream, NY 11581

Attn:
Edward M. Grushko, Esq.

Fax: (212)
697-3575

 

[REMAINDER OF
PAGE INTENTIONALLY LEFT BLANK 

SIGNATURE PAGE FOR PURCHASER FOLLOWS]

 

    	32

    	 

    

 

[PURCHASER SIGNATURE PAGE TO PISHPOSH,
INC.

SECURITIES PURCHASE AGREEMENT]

 

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

 

	Name of Purchaser:	Alpha Capital
Anstalt
	 	 
	Signature
    of Authorized Signatory of Purchaser:	/s/
Konrad Ackermann
	 	 
	Name of Authorized Signatory:	Konrad Ackermann
	 	 
	Title of Authorized Signatory:	Director
	 	 
	Email Address or Authorized Signatory:	 
	 	 
	Facsimile Number of Authorized Signatory:	 
	 	 
	Address for Notice to Holder:	
	 	 
	 	
	 
	Address for Delivery of Securities to Purchaser (if not same as address for notice):

                                                   

		 
		 
		 

 

Subscription Amount :                                                

 

Preferred Stock:                                  

 

EIN Number, if applicable, will be provided under
separate cover:                      

 

[SIGNATURE
PAGES CONTINUE]

 

    	 

    	 

    

 

[PURCHASER SIGNATURE
PAGE TO PISHPOSH, INC.

SECURITIES PURCHASE AGREEMENT]

 

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

 

	Name of Purchaser:	American
    European Insurance Co.
	 	 
	Signature
    of Authorized Signatory of Purchaser:	/s/ Nachum Stein
	 	 
	Name of Authorized Signatory:	Nachum Stein
	 	 
	Title of Authorized Signatory:	Chairman
	 	 
	Email Address or Authorized Signatory:	
	 	 
	Facsimile Number of Authorized Signatory:	
	 	 
	Address for Notice to Holder:	
	 	

 

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

 

 

 

Subscription Amount :     
                          

 

Preferred Stock:                                  

 

EIN Number, if applicable, will be provided under
separate cover:                      

 

[SIGNATURE
PAGES CONTINUE]

 

    	 

    	 

    

 

[PURCHASER
SIGNATURE PAGE TO PISHPOSH, INC.

SECURITIES
PURCHASE AGREEMENT]

 

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

 

	Name of Purchaser:	Nachum Stein
	 	 
	Signature
    of Authorized Signatory of Purchaser:	/s/ Nachum Stein
	 	 
	Name of Authorized Signatory:	
	 	 
	Title of Authorized Signatory:	
	 	 
	Email Address or Authorized Signatory:	
	 	 
	Facsimile Number of Authorized Signatory:	
	 	 
	Address for Notice to Holder:	 
	 	 

	 	 

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

 

 

 

 

 

 

 

Subscription Amount : 
                                                      

 

Preferred Stock:                                  

 

EIN Number, if applicable, will be provided under
separate cover:                      

 

 

[SIGNATURE
PAGES CONTINUE]

 

    	 

    	 

    

 

[PURCHASER
SIGNATURE PAGE TO PISHPOSH, INC.

SECURITIES
PURCHASE AGREEMENT]

 

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

 

	Name of Purchaser:	RR INVESTMENT
    2012 LP
	 	 
	Signature
    of Authorized Signatory of Purchaser:	/S/ RALPH RIEDER
	 	 
	Name of Authorized Signatory:	RALPH RIEDER
	 	 
	Title of Authorized Signatory:	MANAGING MEMBER OF GENERAL
    PARTNER
	 	 
	Email Address or Authorized Signatory:	 
	 	 
	Facsimile Number of Authorized Signatory:	
	 	 
	Address for Notice to Holder:	 
		 
		

 

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

 

 

 

 

 

 

 

Subscription Amount :                                  

 

Preferred Stock:                                  

 

EIN Number, if applicable, will be provided under
separate cover:                      

 

 

[SIGNATURE
PAGES CONTINUE]

 

    	 

    	 

    

 

PURCHASER SIGNATURE PAGE
TO PISHPOSH, INC.

SECURITIES
PURCHASE AGREEMENT]

 

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

 

	Name of Purchaser:	Curber International
	 	 
	Signature
    of Authorized Signatory of Purchaser:	/s/ M Goldshmid
	 	 
	Name of Authorized Signatory:	M Goldshmid
	 	 
	Title of Authorized Signatory:	Director
	 	 
	Email Address or Authorized Signatory:	
	 	 
	Facsimile Number of Authorized Signatory:	
	 	 
	Address for Notice to Holder:	 
	 	 
	Address for Delivery
of Securities to Purchaser (if not same as address for notice);
		 
		 

                                                 

                                                 

		 
		 
		 

 

Subscription Amount :                                  

 

Preferred Stock:                                  

 

EIN Number, if applicable, will be provided under
separate cover:                      

 

 

[SIGNATURE
PAGES CONTINUE.]

 

    	 

    	 

    

 

PURCHASER SIGNATURE PAGE
TO PISHPOSH, INC.

SECURITIES
PURCHASE AGREEMENT]

 

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

 

	Name of Purchaser:	Rachel Chitrik
    Purec
	 	 
	Signature
    of Authorized Signatory of Purchaser:	/s/ Rachel Chitrik Purec
    
	 	 
	Name of Authorized Signatory:	 
	 	 
	Title of Authorized Signatory:	
	 	 
	Email Address or Authorized Signatory:	
	 	 
	Facsimile Number of Authorized Signatory:	
	 	 
	Address for Notice to Holder:	
	 	
	 	 

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

 

 

 

 

 

 

 

Subscription Amount :                                  

 

Preferred Stock:                                  

 

EIN Number, if applicable, will be provided under
separate cover:                      

 

 

[SIGNATURE
PAGES CONTINUE.]

 

    	 

    	 

    

 

PURCHASER SIGNATURE PAGE
TO PISHPOSH, INC.

SECURITIES
PURCHASE AGREEMENT]

 

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

 

	Name of Purchaser:	ABRAHAM
    BELSKY
	 	 
	Signature
    of Authorized Signatory of Purchaser:	/s/ ABRAHAM BELSKY
	 	 
	Name of Authorized Signatory:	
	 	 
	Title of Authorized Signatory:	
	 	 
	Email Address or Authorized Signatory:	
	 	 
	Facsimile Number of Authorized Signatory:	
	 	 
	Address for Notice to Holder:	
	  
	 	

 

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

 

 

 

 

 

 

 

Subscription Amount :                                  

 

Preferred Stock:                                  

 

EIN Number, if applicable, will be provided under
separate cover:                                           

 

 

[SIGNATURE
PAGES CONTINUE]

 

    	 

    	 

    

 

PURCHASER SIGNATURE PAGE TO PISHPOSH, INC.

SECURITIES
PURCHASE AGREEMENT]

 

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

 

	Name of Purchaser:	MORRIS FUCHS
	 	 
	Signature
    of Authorized Signatory of Purchaser:	/S/ MORRIS FUCHS
	 	 
	Name of Authorized Signatory:	MORRIS FUCHS
	 	 
	Title of Authorized Signatory:	
	 	 
	Email Address or Authorized Signatory:	
	 	 
	Facsimile Number of Authorized Signatory:	
	 	 
	Address for Notice to Holder:	
	 	

  

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

 

 

 

 

 

 

 

Subscription Amount :                                  

 

Preferred Stock:                                  

 

EIN Number, if applicable, will be provided under
separate cover:                       

 

 

[SIGNATURE
PAGES CONTINUE]

 

    	 

    	 

    

 

PURCHASER SIGNATURE PAGE
TO PISHPOSH, INC.

SECURITIES
PURCHASE AGREEMENT]

 

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

 

	Name of Purchaser:	2004 LEON
    SCHARF IRREVOCABLE TRUST
	 	 
	Signature
    of Authorized Signatory of Purchaser:	Willy Beer
	 	 
	Name of Authorized Signatory:	/s/ Willy Beer
	 	 
	Title of Authorized Signatory:	Investor Trustee
	 	 
	Email Address or Authorized Signatory:	
	 	 
	Facsimile Number of Authorized Signatory:	
	 	 
	Address for Notice to Holder:	

 

 

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

 

 

 

 

 

 

 

Subscription Amount :                                  

 

Preferred Stock:                                  

 

EIN Number, if applicable, will be provided under
separate cover:                       

 

 

[SIGNATURE
PAGES CONTINUE]

 

    	 

    	 

    

 

PURCHASER SIGNATURE PAGE
TO PISHPOSH, INC.

SECURITIES
PURCHASE AGREEMENT]

 

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

 

	Name of Purchaser:	ASHER J.
BERLINER
	 	 
	Signature
    of Authorized Signatory of Purchaser:	/S/ ASHER J. BERLINER
	 	 
	Name of Authorized Signatory:	
	 	 
	Title of Authorized Signatory:	
	 	 
	Email Address or Authorized Signatory:	
	 	 
	Facsimile Number of Authorized Signatory:	
	 	 
	Address for Notice to Holder:	
	 	

  

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

 

 

 

 

 

 

 

Subscription Amount :                                  

 

Preferred Stock:                                  

 

EIN Number, if applicable, will be provided under
separate cover:                       

 

 

[SIGNATURE
PAGES CONTINUE]

 

    	 

    	 

    

 

PURCHASER SIGNATURE PAGE
TO PISHPOSH, INC.

SECURITIES
PURCHASE AGREEMENT]

 

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

 

	Name of Purchaser:	JACOB FRIEDMAN
	 	 
	Signature
    of Authorized Signatory of Purchaser:	/S/ JACOB FRIEDMAN
	 	 
	Name of Authorized Signatory:	
	 	 
	Title of Authorized Signatory:	
	 	 
	Email Address or Authorized Signatory:	
	 	 
	Facsimile Number of Authorized Signatory:	
	 	 
	Address for Notice to Holder:	
	 	

 

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

 

 

 

 

 

 

 

Subscription Amount :                                  

 

Preferred Stock:                                  

 

EIN Number, if applicable, will be provided under
separate cover:                                  

 

 

[SIGNATURE
PAGES CONTINUE]

 

    	 

    	 

    

 

PURCHASER SIGNATURE PAGE TO
PISHPOSH, INC.

SECURITIES
PURCHASE AGREEMENT]

 

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

 

	Name of Purchaser:	Barry Honig
	 	 
	Signature
    of Authorized Signatory of Purchaser:	/s/ Barry Honig
	 	 
	Name of Authorized Signatory:	 
	 	 
	Title of Authorized Signatory:	Individual
	 	 
	Email Address or Authorized Signatory:	
	 	 
	Facsimile Number of Authorized Signatory:	
	 	 
	Address for Notice to Holder:	
	 	
	 	

 

 

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

 

 

 

 

 

 

 

Subscription
Amount :                                  

 

Preferred Stock:                                  

 

EIN Number, if applicable, will be provided under
separate cover:                                  

 

 

[SIGNATURE
PAGES CONTINUE]

 

    	 

    	 

    

 

PURCHASER
SIGNATURE PAGE TO PISHPOSH, INC.

SECURITIES
PURCHASE AGREEMENT]

 

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

 

	Name of Purchaser:	Birchtree
    Capital LLC
	 	 
	Signature
    of Authorized Signatory of Purchaser:	/s/ Michael Brauser
	 	 
	Name of Authorized Signatory:	Michael Brauser
	 	 
	Title of Authorized Signatory:	Manager
	 	 
	Email Address or Authorized Signatory:	
	 	 
	Facsimile Number of Authorized Signatory:	
	 	 
	Address for Notice to Holder:	
	 	

  

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

 

 

 

 

 

 

 

Subscription
Amount :                                  

 

Preferred Stock:                                  

 

EIN Number, if applicable, will be provided under
separate cover:                                  

 

 

[SIGNATURE
PAGES CONTINUE]

 

    	 

    	 

    

 

PURCHASER SIGNATURE PAGE
TO PISHPOSH, INC.

SECURITIES
PURCHASE AGREEMENT]

 

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

 

	Name of Purchaser:	Melechdavid
    Inc.
	 	 
	Signature
    of Authorized Signatory of Purchaser:	/s/ Mark
    Groussman
	 	 
	Name of Authorized Signatory:	Mark
    Groussman
	 	 
	Title of Authorized Signatory:	President
	 	 
	Email Address or Authorized Signatory:	
	 	 
	Facsimile Number of Authorized Signatory:	
	 	 
	Address for Notice to Holder:	
	 	

 

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

 

 

 

 

 

 

 

 

 

Subscription
Amount :                                   

 

Preferred Stock:                                  

 

EIN Number, if applicable, will be provided under
separate cover:                                  

 

 

[SIGNATURE
PAGES CONTINUE]

 

    	 

    	 

    

 

PURCHASER SIGNATURE PAGE TO PISHPOSH, INC.

SECURITIES
PURCHASE AGREEMENT]

 

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

 

	Name of Purchaser:	Point Capital,
    Inc.
	 	 
	Signature
    of Authorized Signatory of Purchaser:	/s/ Richard A. Brand
	 	 
	Name of Authorized Signatory:	Richard A. Brand
	 	 
	Title of Authorized Signatory:	CEO
	 	 
	Email Address or Authorized Signatory:	
	 	 
	Facsimile Number of Authorized Signatory:	
	 	 
	Address for Notice to Holder:	
	 	
	 	

  

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

 

 

 

 

 

 

 

Subscription
Amount :                                   

 

Preferred Stock:                                  

 

EIN Number, if applicable, will be provided under
separate cover:                                  

 

[SIGNATURE
PAGES CONTINUE]

 

    	 

    	 

    

 

PURCHASER SIGNATURE PAGE TO PISHPOSH, INC.

SECURITIES
PURCHASE AGREEMENT]

 

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

 

	Name of Purchaser:	Hoch Family
    Equities LLC
	 	 
	Signature
    of Authorized Signatory of Purchaser:	Ari Hoch
	 	 
	Name of Authorized Signatory:	/s/Ari Hoch
	 	 
	Title of Authorized Signatory:	Member
	 	 
	Email Address or Authorized Signatory:	
	 	 
	Facsimile Number of Authorized Signatory:	
	 	 
	Address for Notice to Holder:	 
	 	 

 

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

 

 

 

 

 

 

 

Subscription
Amount :                                  

 

Preferred Stock:                                  

 

EIN Number, if applicable, will be provided under
separate cover:                                   

 

 

[SIGNATURE
PAGES CONTINUE]

 

    	 

    	 

    

 

PURCHASER SIGNATURE PAGE
TO PISHPOSH, INC.

SECURITIES
PURCHASE AGREEMENT]

 

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

 

	Name of Purchaser:	BEBE, LLC
	 	 
	Signature
    of Authorized Signatory of Purchaser:	/s/ Erick Richardson
	 	 
	Name of Authorized Signatory:	Erick Richardson
	 	 
	Title of Authorized Signatory:	Managing Member
	 	 
	Email Address or Authorized Signatory:	
	 	 
	Facsimile Number of Authorized Signatory:	
	 	 
	Address for Notice to Holder:	

 

 

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

 

 

 

 

 

 

 

Subscription
Amount :                                  

 

Preferred Stock:                                  

 

EIN Number, if applicable, will be provided under
separate cover:                                  

 

 

[SIGNATURE
PAGES CONTINUE]

 

    	 

    	 

    

 

SECURITIES PURCHASE AGREEMENT

 

COMPANY DISCLOSURE SCHEDULES

TO THE SECURITIES PURCHASE AGREEMENT

 

These Company disclosure
schedules ("Disclosure Schedules") are made and given pursuant to the Securities Purchase Agreement, dated as
of July 2, 2014 (the "Agreement"), by Pishposh, Inc. (the "Company"). Capitalized terms used herein
but not defined herein shall have the meanings given to them in the Agreement, unless the context requires otherwise. The information
contained in these Company Disclosure Schedules is as of the date of the Agreement unless otherwise specified.

 

No reference to or disclosure
of any item or other matter in these Disclosure Schedules shall be construed as an admission or indication that such item or other
matter is material or that such item or other matter is required to be referred to or disclosed in the Disclosure Schedules. No
disclosure in these Disclosure Schedules relating to any possible breach or violation of any agreement, law or regulation shall
be construed as an admission or indication that any such breach or violation exists or has actually occurred. These Disclosure
Schedules and the information and disclosures contained herein are intended only to qualify and limit the representations and
warranties of Company contained in the Agreement and shall not be deemed to expand in any way the scope or effect of any such
representations and warranties.

 

An item described or referred
to in any Section of the Disclosure Schedules shall be considered to have been described in other Sections of the Disclosure Schedules.

 

    	 

    	 

    

 

SCHEDULE 2.2(a)(iv) TO SPA

Person signing lockup

 

Bernard Warman

FW Family 2014 Irrevocable Trust

Joseph Warman

Eliezer Nojowitz

Ester Hirschfeld

Chex Associates LLC

 

SCHEDULE 3.1(a) TO SPA

Subsidiaries

 

None

 

SCHEDULE 3.1(g)
TO SPA

 

The
disclosures contained in this schedule are in addition to any information in the Transaction Documents.

 

Exempt Issuances

 

The Board of Directors
of the Company (the "Board") may issues shares of Common Stock and Series A Preferred Stock as determined by the Board.

 

Capitalization

 

	Authorized
	 	 
	Common Stock	300,000,000
	Series A Preferred Stock	100,000,000
	Total	400,000,000

 

	
        Issued

        Pre-Closing

         

        Common Stock Series A Preferred Stock

         

        3,662,503                        8,000
	 	
        Issued

        Post-Closing

         

        Common Stock Series A Preferred Stock

         

        4,000,003                       11,000

	 	 	 
	
        Warrants

         

        Shares      Exercise
        Price

         

        *3,000,000      $0.2666
	 	
        Warrants

         

          Shares              Exercise
Price

        *3,000,000            $0.2666

        1,500,000          $1.00

 

* includes 1,500,000 Warrants exercisable at
$0.2666 issued to Bernard Warman.

 

    	 

    	 

    

 

As disclosed in the Agreement,
the Company previously adopted a Stock Option Plan, pursuant to which it can issue up to 2,000,000 shares of Common Stock.

 

Except as described in
Section 4.19 of the Agreement, no person has a right of first refusal, preemptive right, right of participation, or any similar
right to participate in the transactions contemplated by the Transaction Documents nor shall any person's rights regarding the
Common Stock and Series A Preferred Stock be modified by the transactions contemplated by the Transaction Documents.

 

Related party transaction

 

Related Party Transactions

 

	Rent

         

        Warman Capital LLC

        owned by Bernard Warman

        
	$3,600.00	
	 	 	 
	Automobile	 	 
	 	Car Payment	Insurance
	Bernard Warman	$498.00	 
	Eliezar Nojovitz	$399.00	 
	David Warman	$249.00	$647.20
	 	 	 
	Cell Phones	 	 
	Bernard Warman	$391.47	 
	Eliezar Nojovitz	$159.00	 

 

All amounts are monthly payments

 

Employment agreements with Bernard Warman and Eliezar Nojovitz.

 

Some current shareholders have granted a proxy to vote their shares
to Bernard Warman.

 

SCHEDULE 3.1(h) TO SPA

 

Financial Statements

  

See attached.

 

    	 

    	 

    

 

SCHEDULE
3.1(n) TO SPA

 

Material Assets that the Company does not have
good title to

 

None.

 

SCHEDULE 3.1(r)
TO SPA

 

Fees

 

Palladium
Capital Advisers LLC — Broker

$240,000 broker
fee

$60,000 expense allowance

337,500 shares of Common Stock

 

Quarles & Brady LLP —
Investor counsel

$35,000

 

SCHEDULE 3.1(t)
TO SPA

 

Persons with Registration
Rights

 

None, other than those in the Registration Rights Agreement.

 

SCHEDULE 3.1(w)
TO SPA

 

Liens,
secured and unsecured debt

 

See attached.

 

SCHEDULE 4.5 TO
SPA

 

Use
of Proceeds

 

Going public expenses including transfer agent's fees,
printing, filing fees, etc. 

General Corporate expenses and working capital 

Auditor estimated $22,500 

Bookkeeper approximate $22,500 

SEC counsel 

Company Counsel approximate $75,000 

SBA Loan approximate $350,000 

Debt approximate $616,276 

New Inventory $535,000

 

    	 

    	 

    

 

SCHEDULE 4.13 TO SPA

 

Initial Board
of Directors

 

1.Bernard Warman, Chairman — Bernard Warman
nominee

2.Arthur Kinsley Lachman — Bernard Warman nominee 

3.Mark E Groussman — Purchasers nominee

4.Vacant — Purchasers nominee 

5.Vacant — Independent Director

 

The Purchasers may nominate
an additional director to the Board of Directors, as set forth in Section 4.13 of the Agreement to fill the vacant Purchasers
nominee seat on the Board of Directors. The appointment of such additional Purchasers nominee director shall only be effective
upon the simultaneous appointment of the fifth director as set forth in Section 4.13.

 

SCHEDULE 4.15 TO SPA

 

Counsel to file
registration statement

 

Jolie G. Kahn, Esq.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00237-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00237-of-00352.parquet"}]]