Document:

PROMISSORY NOTE

 

 

	$155,166,195 (RMB 956,615,110)	June 19, 2013
	 	Fuzhou, PRC

 

 

For value received,
PINGTAN MARINE ENTERPRISE LTD., a company incorporated under the laws of the Cayman Islands (the “Company”),
promises to pay to FUZHOU HONGLONG OCEAN FISHERY CO., LTD., a company incorporated under the laws of China (the “Holder”),
or its registered assigns, in lawful money of the United States of America the principal sum of One Hundred Fifty-Five Million
One Hundred Sixty-Six Thousand One Hundred Ninety-Five Dollars ($155,166,195). Interest shall accrue from the date of this unsecured
promissory note (this “Note”) on the unpaid principal amount at a rate equal to four percent (4.0%) per
annum, simple interest. This Note is subject to the following terms and conditions:

 

1.                 
Payments; Principal and Interest. All outstanding and unpaid principal, together with any then unpaid and
accrued interest and other amounts payable hereunder, shall be due and payable on June 19, 2015 (the “Maturity Date”).
All interest shall accrue and be payable on the Maturity Date. This Note may be prepaid, in whole or in part, without penalty.

 

2.                 
Events of Default. Promptly following the Company becoming aware of an occurrence of any Event of Default,
the Company shall furnish to the Holder written notice of the occurrence thereof. The occurrence of any of the following shall
constitute an “Event of Default” under this Note:

 

(a)               
Failure to Pay. The Company shall fail to pay (i) when due any principal or interest payment on any due date
hereunder or (ii) any other payment required under the terms of this Note within fifteen (15) days after written demand therefore;
or

 

(b)              
Voluntary Bankruptcy or Insolvency Proceedings. The Company shall (i) apply for or consent to the appointment
of a receiver, trustee, liquidator or custodian of itself or of all or a substantial part of its property, (ii) be unable
to pay its debts generally as they mature, (iii) make a general assignment for the benefit of its or any of its creditors,
(iv) be dissolved or liquidated, (v) become insolvent (as such term may be defined or interpreted under any applicable
statute), or (vi) commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect
to itself or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or consent to any such
relief or to the appointment of or taking possession of its property by any official in an involuntary case or other proceeding
commenced against it; or

 

(c)               
Involuntary Bankruptcy or Insolvency Proceedings. Proceedings for the appointment of a receiver, trustee,
liquidator or custodian of the Company or of all or a substantial part of the property thereof, or an involuntary case or other
proceedings seeking liquidation, reorganization or other relief with respect to the Company or the debts thereof under any bankruptcy,
insolvency or other similar law now or hereafter in effect shall be commenced and an order for relief entered or such proceeding
shall not be challenged, dismissed or discharged within thirty (30) days of commencement; or

 

    	 

    	 

    

 

(d)              
Dissolution; Liquidation. The dissolution, liquidation, winding up of the Company.

 

3.                 
Transfer; Successors and Assigns. The terms and conditions of this Note shall inure to the benefit of and
be binding upon the respective successors and permitted assigns of the parties. Notwithstanding the foregoing, the Holder may not
assign, pledge, or otherwise transfer this Note without the prior written consent of the Company, except for transfers to affiliates.
Subject to the preceding sentence, this Note may be transferred only upon surrender of the original Note for registration of transfer,
duly endorsed, or accompanied by a duly executed written instrument of transfer in form satisfactory to the Company. Thereupon,
a new note for the same principal amount and interest will be issued to, and registered in the name of, the transferee. Interest
and principal are payable only to the registered holder of this Note.

 

4.                 
Governing Law. This Note and all acts and transactions pursuant hereto and the rights and obligations of the
parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of New York, without giving
effect to principles of conflicts of law.

 

5.                 
Notices. Any notice required or permitted by this Note shall be in writing and shall be deemed sufficient
upon delivery, when delivered personally or by a nationally-recognized delivery service (such as Federal Express or UPS), or forty-eight
(48) hours after being deposited in the U.S. mail, as certified or registered mail, with postage prepaid, addressed to the party
to be notified at such party’s address as set forth below or as subsequently modified by written notice.

 

6.                 
Amendments and Waivers. Any term of this Note may be amended only with the written consent of the Company
and the Holder. Any amendment or waiver effected in accordance with this Section 6 shall be binding upon the Company,
the Holder and each transferee of the Note.

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY
LEFT BLANK]

 

 

    	-2-

    	 

    

 

The Company has caused this Note to be issued as of the date
first written above.

 

	 	COMPANY:
	 	 	 
	 	PINGTAN MARINE ENTERPRISE LTD.,         
	 	a company incorporated under the laws of the Cayman Islands
	 	 	 
	 	By: 	/s/ Xinrong Zhuo
	 	Name:	Xinrong Zhuo
	 	Title:	Chief Executive Officer
	 	 	 
	 	Address:  	18/F, Zhongshan Building A
	 	 	No. 154 Hudong Road
	 	 	Fuzhou, PRC 350001

 

 

	AGREED TO AND ACCEPTED:	 
	 	 	 
	Fuzhou Honglong Ocean Fishery Co., Ltd 	 
	a company incorporated under the laws of China	 
	 	 	 
	By:   	/s/ Tiqi Gao	 
	Name:	Tiqi Gao	 
	Title:	Legal Representative	 
	 	 	 
	 	 	 
	Address:  	Floor 17th , Fujian Galaxy Garden Hotel	 
	 	#243 Wusi Road	 
	 	Fuzhou, PRC 350001	 

 

 

 

 

    	-3-SECURITIES PURCHASE AGREEMENT

 

This Securities Purchase
Agreement (“Agreement”) is entered into and effective as of June 19, 2013 (the “Effective Date”),
by and between Focus Venture Partners, Inc., a Nevada corporation (the “Company”), and
5G Investments, LLC, a Delaware limited liability company (the “Investor”).

 

RECITALS

 

WHEREAS, the
parties desire that, upon the terms and subject to the conditions contained herein, the Company shall issue to the Investor, and
the Investor shall purchase from the Company, up to $3,500,000 (the “Maximum Amount”) of shares of Series B
Preferred Stock (the “Series B Shares”);

 

WHEREAS, the
Series B Shares may be purchased in one or more tranches, up to the Maximum Amount;

 

WHEREAS, the
Investor is purchasing Series B Shares for the purchase price set forth on the signature page of this Agreement;

 

WHEREAS, the
Company has entered into an Agreement and Plan of Merger, as amended and restated on June 19, 2013 (collectively, the “Merger
Agreement”), providing for a reverse merger of a wholly owned subsidiary of Beacon Enterprise Solutions Group, Inc. (“Beacon”)
with and into the Company in which the Company will be the surviving entity and will become a wholly-owned subsidiary of Beacon
(the “Merger”);

 

WHEREAS, in
connection with the Merger, it is contemplated that the Series B Shares representing the Maximum Amount shall be exchanged for
shares of Series D Preferred Stock of Beacon as provided by the Merger Agreement, subject to Section 4.4 below; and

 

WHEREAS, the
offer and sale of the Series B Shares provided for herein are being made without registration under the Securities Act, in reliance
upon the provisions of Section 4(2) of the Securities Act, Regulation D promulgated under the Securities Act, and such other exemptions
from the registration requirements of the Securities Act as may be available with respect to any or all of the purchases of Series
B Shares to be made hereunder.

 

AGREEMENT

 

In consideration of
the premises, the mutual provisions of this Agreement, and other good and valuable consideration the receipt and adequacy of which
are hereby acknowledged, the Company and the Investor agree as follows:

 

ARTICLE I

DEFINITIONS

 

In addition to the
terms defined elsewhere in this Agreement, the following terms have the meanings indicated in this Article I:

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common
control with a Person, as such terms are used in and construed under Rule 144 under the Securities Act.  With respect
to the Investor, without limitation, any Person owning, owned by, or under common ownership with the Investor, and any investment
fund or managed account that is managed on a discretionary basis by the same investment manager as the Investor will be deemed
to be an Affiliate of the Investor.

 

“Agreement”
means this Securities Purchase Agreement.

 

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

 

    	 

    	 

    

 

“Certificate
of Designation” means that certain Certificate of Designation of the Series B Preferred Stock of the Company filed with
the Nevada Secretary of State on June 14, 2013, a copy of which is attached as Exhibit A.

 

“Closing”
has the meaning set forth in Section 2.2.

 

“Disclosure
Schedule” means the disclosure schedule of the Company delivered concurrently herewith, attached hereto, and incorporated
herein by reference.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

“GAAP”
means United States generally accepted accounting principles applied on a consistent basis during the periods involved.

 

“Indebtedness”
means (a) any liabilities for borrowed money or amounts owed in excess of $5,000 (other than trade accounts payable incurred in
the ordinary course of business); (b) all guaranties, endorsements and other contingent obligations in respect of Indebtedness
of others, whether or not the same are or should be reflected in the Company’s balance sheet (or the notes thereto), except
guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of
business; and (c) the present value of any lease payments in excess of $5,000 due under leases required to be capitalized in accordance
with GAAP.

 

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

 

“Material
Adverse Effect” means any material adverse effect on (a) the legality, validity or enforceability of any Transaction
Document, (b) the results of operations, assets, business, prospects or financial condition of the Company and the Subsidiaries,
taken as a whole, or (c) the Company’s ability to perform in any material respect on a timely basis its obligations under
any Transaction Document; provided, however, that none of the following shall be deemed in themselves, either alone or in combination,
to constitute, and none of the following shall be taken into account in determining whether there has been or will be a Material
Adverse Effect: any change in the business, condition, capitalization, assets, liabilities, operations or financial performance
of Focus caused by, related to or resulting from (i) the transfer by MDT Labor, LLC d/b/a MDT Technical of its 100% interest in
MDT Infrastructure Solutions Limited to Optos Capital Partners, LLC prior to the date hereof, (ii) the transfer by MDT Labor, LLC
d/b/a MDT Technical of its 10% interest in MDT Infrastructure Solutions Czech s.r.o. to Optos Capital Partners, LLC prior to the
date hereof, (iii) the transfer by Optos Capital Partners, LLC of its 100% interest in MDT Labor, LLC d/b/a MDT Technical to Quafecta
Solutions, LLC prior to the date hereof, (iv) the sale by Focus Fiber Solutions, LLC of all of its rights in and to its contracts
with Zayo Group, LLC and its accounts receivable arising thereunder, the proceeds of which were used to repay the outstanding principal
balance of the revolving loans of the Company and certain of its Subsidiaries with Atalaya Administrative LLC in full, to reduce
the outstanding principal balance of their term loans with Atalaya Administrative LLC, and to pay their prepayment fee due and
payable in connection with the termination of their revolving loan commitment with Atalaya Administrative LLC, and (v) the termination
of their revolving loan commitment with Atalaya Administrative LLC.

 

“Officer’s
Certificate” means a certificate in customary form reasonably acceptable to the Investor, executed by an authorized officer
of the Company.

 

“Opinion”
means an opinion from Fleming PLLC, the Company’s independent legal counsel, in the form attached as Exhibit B
or in such other form agreed upon by the parties, to be delivered in connection with the Closing.

 

“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.

 

“Regulation
D” means Regulation D promulgated under the Securities Act.

 

    	2

    	 

    

 

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

 

“Rule 144
Eligible” means eligible for immediate resale under Rule 144 without limitation on the amount of securities sold under
Rule 144(e) and without requiring discharge by payment in full of any promissory notes given to the Company prior to the sale of
the securities under Rule 144(d)(2)(iii).

 

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

 

“Secretary’s
Certificate” means a certificate in customary form reasonably acceptable to the Investor, executed by the Secretary of
the Company.

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

“Series B
Shares” means the shares of Series B Preferred Stock of the Company as further described in the Certificate of Designation
therefor.

 

“Subsidiary”
means any Person the Company owns or controls, or in which the Company, directly or indirectly, owns a majority of the capital
stock or similar interest that would be disclosable pursuant to Regulation S-K, Item 601(b)(21).

 

“Transaction
Documents” means this Agreement, the other agreements and documents referenced herein, and the exhibits and schedules
hereto and thereto.

 

ARTICLE II

PURCHASE AND SALE

 

2.1          Agreement
to Purchase.  Subject to the terms and conditions herein and the satisfaction of the conditions to the Closing set
forth in this Article II:

 

(a)          The
Investor hereby agrees to purchase from the Company Series B Shares in the number and for the purchase price set forth on the signature
page of this Agreement (the “Purchase Price”); and

 

(b)           Upon
receipt of the Purchase Price from the Investor, which Purchase Price shall either be payable to the Company or as otherwise set
forth on Schedule A hereto, the Company agrees to issue the Series B Shares to the Investor as provided herein.

 

2.2          Investment.

 

(a)           Investment.
The closing contemplated by this Agreement (the “Closing”) shall be deemed to occur when this Agreement has
been duly executed by the Investor and the Company, and the other Conditions to the Closing set forth in Section 2.2(b)
have been met.

 

(b)           Conditions
to Investment. As a condition precedent to the Closing, all of the following (the “Conditions to Closing”)
shall have been satisfied prior to or concurrently with the Company’s execution and delivery of this Agreement:

 

(i)           the
following documents shall have been delivered to the Investor:  (A) this Agreement, executed by the Company; (B) a Secretary’s
Certificate as to (x) the resolutions of the Board authorizing this Agreement and the Transaction Documents, and the transactions
contemplated hereby and thereby, and (y) a copy of the Company’s Articles of Incorporation and Bylaws, each as amended to
date, and other governing documents; (C) the Officer’s Certificate; and (D) the Opinion; and

 

    	3

    	 

    

 

(ii)         the
representations and warranties of the Company in this Agreement shall be true and correct in all material respects and the Company
shall have delivered the Officer’s Certificate to such effect to the Investor, executed by an officer of the Company.

 

(c)           Investor’s
Obligation to Purchase. At the Closing and subject to the prior satisfaction of all conditions set forth in this Agreement,
the Investor shall be required to purchase from the Company the Series B Shares purchased hereunder and deliver the Purchase Price
to the Company.

 

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES

 

3.1           Representations
and Warranties of the Company.  Except as set forth under the corresponding section of the Disclosure Schedule, which
shall be deemed a part hereof, or as otherwise set forth herein, the Company hereby represents and warrants to, and as applicable
covenants with, the Investor as of the Effective Date and as of the date of the Closing:

 

(a)           Subsidiaries.  All
of the direct and indirect Subsidiaries of the Company are set forth on Section 3.1(a) to the Disclosure Schedule.  All
entities with which the Company is presently in discussion regarding a potential acquisition or similar transaction are set forth
under Section 3.1(a) to the Disclosure Schedule.  The Company owns, directly or indirectly, all of the capital
stock or other equity interests of each Subsidiary, and all of such directly or indirectly owned capital stock or other equity
interests are owned free and clear of any Liens.  All of the issued and outstanding shares of capital stock or other
equity interests of each Subsidiary are duly authorized, validly issued, fully paid, non-assessable and free of preemptive and
similar rights to subscribe for or purchase securities.

 

(b)           Organization
and Qualification.  Each of the Company and each Subsidiary 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, as applicable, 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 or 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 each Subsidiary 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 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 each of the Transaction Documents and otherwise to carry out its obligations hereunder or thereunder.  The
execution and delivery of each of the Transaction Documents by the Company and the consummation by it of the transactions contemplated
hereby or thereby have been duly authorized by all necessary action on the part of the Company and no further consent or action
is required by the Company.  Each of the Transaction Documents has been, or upon delivery will be, duly executed by the
Company and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the Company,
enforceable against the Company in accordance with its terms, except (i) as limited by general equitable principles and applicable
bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’
rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable
remedies, and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.  Neither
the Company nor any Subsidiary is in violation of any of the provisions of its respective certificate or articles of incorporation,
bylaws or other organizational or charter documents.

 

(d)           No
Conflicts.  The execution, delivery and performance of the Transaction Documents by the Company, the issuance and
sale of the Series B Shares and the consummation by the Company of the other transactions contemplated thereby do not and will
not (i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate or articles of incorporation,
certificate of formation, operating agreement, articles of association, bylaws, or other organizational or charter documents, or
(ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under,
result in the creation of any Lien upon any of the properties or assets of the Company or any Subsidiary, or give to others any
rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement,
credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which
the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected,
or (iii) 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, or (iv) conflict
with or violate the terms of any agreement by which the Company or any Subsidiary is bound or to which any property or asset of
the Company or any 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.

 

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(e)           Filings,
Consents and Approvals.  Neither the Company nor any Subsidiary is 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 the filing of the Certificate of Designation with the Secretary of State of the State of Nevada and required federal
and state securities filings.

 

(f)           Issuance
of the Series B Shares.  The Series B Shares are duly authorized and, when issued and paid for in accordance with
the Certificate of Designation, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens.  The
Company has authorized for issuance a number of Series B Shares at least equal to the number of Series B Shares which could be
issued pursuant to the terms of this Agreement.

 

(g)           Capitalization.  The
capitalization of the Company is as described in Section 3.1(g) to the Disclosure Schedule hereto.  There are
70,000 Series B Shares issued or outstanding.  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 a result
of the purchase and sale of the Series B Shares or as set forth on Section 3.1(g) to the Disclosure Schedule, there are
no outstanding options, warrants, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities,
rights or obligations convertible into or exchangeable for, or giving any Person any right to subscribe for or acquire, any securities
of the Company, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become
bound to issue such securities or securities convertible into or exercisable for such securities, including any of the Series B
Shares.  The issuance and sale of the Series B Shares will not obligate the Company to issue any securities of the Company
to any Person (other than the Investor) and will not result in a right of any holder of Company securities to adjust the exercise,
conversion, exchange, or reset price under such securities. All of the outstanding equity securities of the Company are validly
issued, fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and none of such
outstanding equity securities was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities.  No
further approval or authorization of any shareholder of the Company, the Board or others is required for the issuance and sale
of the Series B Shares.  There are no shareholder agreements, voting agreements or other similar agreements with respect
to the Company’s equity securities to which the Company is a party or, to the knowledge of the Company, between or among
any of the Company’s shareholders.

 

(h)           Financial
Statements.  The Company has delivered to the Investor true and complete copies of its audited balance sheets as
of, and the statements of results of operations for the years ended December 31, 2011 and 2010 (the “Audited Financial
Statements”) and its unaudited balance sheets as of December 31, 2012 and as of March 31, 2013 (the “Balance
Sheet Date”) and the related statements of operations, cash flows and changes in shareholders’ equity of the Company
for the periods ending on such dates (collectively, the “Unaudited Financial Statements” and together with the
Audited Financial Statements, the “Financial Statements”). The balance sheet as of Balance Sheet Date is referred
to herein as the “Most Recent Balance Sheet.” The Financial Statements are, or will be, true and correct in
all material respects and present, or will present, fairly the financial position of the Company as of the respective dates indicated
and the results of operations for the respective periods indicated, having been prepared in conformity with GAAP.

 

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(i)           Material
Changes.  Since the Balance Sheet Date, except as specifically disclosed on Section 3.1(i) to the Disclosure
Schedule, (i) there has been no event, occurrence or development that has had, or that could reasonably be expected to result in,
a Material Adverse Effect, (ii) the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade payables
and accrued expenses incurred in the ordinary course of business consistent with past practice, and (B) liabilities not required
to be reflected in the Company’s Financial Statements pursuant to GAAP, (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 shareholders or purchased,
redeemed or made any agreements to purchase or redeem any of its securities, and (v) the Company has not issued any equity securities
to any shareholder, Manager, officer or Affiliate.

 

(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 Series
B Shares, or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse
Effect.  Neither the Company nor any Subsidiary, nor to the knowledge of the Company, 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 material 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.

 

(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 written 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 similar 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 order of any court, arbitrator
or governmental body, or (iii) is or has been in violation of any statute, rule or regulation of any governmental authority, including
without limitation all foreign, federal, state and local laws applicable to its business, except in each case under clauses (i)-(iii)
above as could not have a Material Adverse Effect.

 

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

 

(n)           Title
to Assets.  The Company and each Subsidiary have good and marketable title in fee simple to all real property owned
by them that is material to the business of the Company and each Subsidiary and good and marketable title in all personal property
owned by them that is material to the respective business of the Company and each Subsidiary, in each case free and clear of all
Liens, except for (i) Liens that do not materially affect the value of such property, (ii) Liens that do not materially interfere
with the use made and proposed to be made of such property by the Company and each Subsidiary, (iii) Liens for the payment of federal,
state or other taxes, the payment of which is neither delinquent nor subject to penalties, and (iv) those Liens that are set forth
on Section 3.1(n) to the Disclosure Schedule.  Any real property and facilities held under lease by the Company
and each Subsidiary are held by them under valid, subsisting and enforceable leases of which the Company and each Subsidiary are
in compliance.

 

    	6

    	 

    

 

(o)           Patents
and Trademarks.  The Company and each Subsidiary have, or have rights to use, all patents, patent applications, trademarks,
trademark applications, service marks, trade names, copyrights, licenses and other similar rights that are necessary or material
for use in connection with their respective businesses and which the failure to so have could have a Material Adverse Effect (collectively,
the “Intellectual Property Rights”).  Neither the Company nor any Subsidiary has received a written
notice that the Intellectual Property Rights used by the Company or any Subsidiary violates or infringes upon the rights of any
Person. To the knowledge of the Company, all such Intellectual Property Rights are enforceable and there is no existing infringement
by another Person of any of the Intellectual Property Rights of the Company or each Subsidiary.

 

(p)           Insurance.  The
Company and each Subsidiary 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 each Subsidiary are engaged.  To
the best of Company’s knowledge, such insurance contracts and policies are accurate and complete.   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.  None of the officers or directors of the Company and, to the knowledge of the Company,
none of the employees of the Company, 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, or otherwise requiring payments to or from
any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director, or any such
employee has a substantial interest or is an officer, director, trustee or partner, in each case in excess of $120,000 other than
(i) for payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses incurred on behalf of the Company,
and (iii) for other employee benefits, including equity option agreements under any equity incentive plan of the Company.

 

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

 

(s)           Private
Placement. Assuming the accuracy of the Investor’s representations and warranties set forth in Section 3.2, no
registration under the Securities Act is required for the offer and sale of the Series B Shares by the Company to the Investor
as contemplated hereby.

 

(t)           Investment
Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Series B Shares,
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 subject to the Investment
Company Act.

 

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

 

(v)           No
Integrated Offering. 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 Series B Shares to be integrated with prior offerings by the Company for purposes of the Securities
Act.

 

(w)           Financial
Condition.  Based on the financial condition of the Company as of the date of the Closing:  the Company’s
assets do not constitute unreasonably small capital to carry on its business for the current fiscal year 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 and projected capital requirements and capital availability thereof.  Except as set forth on Section
3.1(w) to the Disclosure Schedule, 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 (1) year from the date of the Closing.  Neither the Company nor
any Subsidiary is in default with respect to any Indebtedness.  In connection with the transactions contemplated by the
Transaction Documents, the Company (i) did not and does not have any intent to hinder, delay, or defraud any of its creditors,
(ii) had a valid business reason for such transactions, (iii) received new value therefor and consideration therefor constituting
reasonably equivalent value and fair market value consideration, and (iv) was not rendered insolvent by such transactions and,
after giving effect to such transactions, is able to pay its debts as they mature.

 

    	7

    	 

    

 

(x)           Tax
Status.  The Company and each of its Subsidiaries has made or filed all federal, state and foreign income and all
other tax returns, reports and declarations required by any jurisdiction to which it is subject (unless and only to the extent
that the Company and each of its Subsidiaries has set aside on its books provisions reasonably adequate for the payment of all
unpaid and unreported taxes) and 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, except those being contested in good faith and has set
aside on its books provisions reasonably adequate for the payment of all 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 know of no basis for any such claim.  The Company has
not executed a waiver with respect to the statute of limitations relating to the assessment or collection of any foreign, federal,
state or local tax.  None of the Company’s tax returns is presently being audited by any taxing authority.

 

(y)           No
General Solicitation or Advertising.  Neither the Company nor, to the knowledge of the Company, any of its directors
or officers (i) has conducted or will conduct any general solicitation (as that term is used in Rule 502(c) of Regulation D) or
general advertising with respect to the sale of the Series B Shares, or (ii) made any offers or sales of any security or solicited
any offers to buy any security under any circumstances that would require registration of the Series B Shares under the Securities
Act or made any “directed selling efforts” as defined in Rule 902 of Regulation S.

 

(z)           Foreign
Corrupt Practices.  Neither the Company, nor to the knowledge of the Company, any agent or other Person acting on
behalf of the Company, has (i) directly or indirectly, used any corrupt 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 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 the Foreign Corrupt Practices Act of 1977,
as amended.

 

(aa)           Acknowledgment
Regarding Investor’s Purchase of Series B Shares.  The Company acknowledges and agrees that the Investor is
acting solely in the capacity of an arm’s length purchaser with respect to this Agreement and the transactions contemplated
hereby.  The Company further acknowledges that the Investor is not acting as a financial advisor or fiduciary of the
Company (or in any similar capacity) with respect to this Agreement and the transactions contemplated hereby and any statement
made by the Investor or any of its representatives or agents in connection with this Agreement and the transactions contemplated
hereby is not advice or a recommendation and is merely incidental to the Investor’s purchase of the Series B Shares.  The
Company further represents to the Investor that the Company’s decision to enter into this Agreement has been based solely
on the independent evaluation of the Company and its representatives.

 

(bb)         No
Disagreements with Accountants.  There are no disagreements of any kind presently existing, or reasonably anticipated
by the Company to arise, between the accountants formerly or presently employed by the Company, and the Company is current with
respect to any fees owed to its accountants, except for any past-due amounts that may be owed in the ordinary course of business.

 

    	8

    	 

    

 

(cc)         No
Other Representations or Warranties. The Investor acknowledges and agrees that the Company does not make and has not made any
representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in this
Section 3.1.

 

3.2          Representations
and Warranties of the Investor. The Investor hereby represents and warrants to, and as applicable covenants with, the Company
as of the Effective Date and as of the date of the Closing:

 

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

 

(b)           Investor
Status.  At the time the Investor was offered the Series B Shares, it was, and at the Effective Date it is, an “accredited
investor” as defined in Rule 501(a) under the Securities Act. The Investor is purchasing the Series B Shares for its own
account, for investment purposes only. The Investor acknowledges that the offer and sale of the Series B Shares have not been registered
under the Securities Act or the securities laws of any state or other jurisdiction, and that the Series B Shares are being offered
and sold pursuant to an exemption from registration contained in the Securities Act, and cannot be disposed of unless they are
subsequently registered under the Securities Act and any applicable state Laws or an exemption from such registration is available.

 

(c)           Experience
of Investor.  The Investor, 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 Series B Shares, and has evaluated the merits and risks of such investment.  The Investor is able to bear the
economic risk of an investment in the Series B Shares and, at the present time, is able to afford a complete loss of such investment.

 

(d)           General
Solicitation.  The Investor is not purchasing the Series B Shares as a result of any advertisement, article, notice
or other communication regarding the Series B Shares published in any newspaper, magazine or similar media or broadcast over television
or radio or presented at any seminar or any other general solicitation or general advertisement.

 

(e)           Capital
Resources; Solvency. The Investor has, or will have at the Closing, sufficient funds to purchase the Series B Shares as provided
herein. The Investor is, and after giving effect to the transactions contemplated hereby will continue to be, Solvent. For purposes
of this Agreement, “Solvent” means, with respect to the Investor, that (i) the sum of the assets, at a fair valuation,
of the Investor and its subsidiaries (on a consolidated basis) and of each of them (on a stand-alone basis) will exceed their respective
liabilities, (ii) each of the Investor and its subsidiaries (on a consolidated basis) and each of them (on a stand-alone basis)
has not incurred and does not intend to incur, and does not believe that it will incur, debts or other liabilities beyond its ability
to pay such debts and other liabilities as such debts and other liabilities mature or become due, and (iii) each of the Investor
and its subsidiaries (on a consolidated basis) and each them (on a stand-alone basis) has sufficient capital with which to conduct
its respective business.

 

(f)           Litigation.  There
is no Action pending or, to the knowledge of the Investor, threatened against or affecting the Investor or any of its properties
before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local
or foreign), which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents
or the Series B Shares, or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material
Adverse Effect.  Neither the Investor nor, to the knowledge of the Investor, any manager 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.

 

    	9

    	 

    

 

(g)           Certain
Fees.  Except as set forth in Section 3.2(g) to the Disclosure Schedule, no brokerage or finder’s fees
or commissions are or will be payable by the Investor to any broker, financial advisor or consultant, finder, placement agent,
investment banker, bank or other Person with respect to the transactions contemplated by this Agreement.  The Company
shall have no obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees
of a type contemplated in this Section 3.2(g) that may be due in connection with the transactions contemplated by this Agreement
or the other Transaction Documents.

 

(h)           No
Other Representations or Warranties. The Company acknowledges and agrees that the Investor does not make and has not made any
representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in this
Section 3.2.

 

ARTICLE IV

OTHER AGREEMENTS OF THE PARTIES

 

4.1          Transfer
Restrictions

 

(a)           The
Series B Shares may only be disposed of in compliance with state and federal securities laws.  In connection with any
transfer of the Series B Shares other than (i) pursuant to an effective registration statement or Rule 144, (ii) to the Company,
(iii) to an Affiliate of the Investor, or (iv) in connection with a pledge as contemplated in Section 4.1(b), the Company
may require that the transferor thereof provide to the Company an opinion of Sichenzia Ross Friedman Ference LLP (“Investor
Counsel”), or other counsel selected by the transferor and reasonably acceptable to the Company, to the effect that such
transfer does not require registration of such transferred Series B Shares under the Securities Act.

 

(b)          The Investor
agrees to the imprinting, so long as is required by this Section 4.1, of the following legend, or substantially similar
legend, on any certificate evidencing the Series B Shares:

 

NEITHER THESE SECURITIES NOR THE SECURITIES
INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE 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. THESE SECURITIES AND THE SECURITIES ISSUABLE
UPON EXERCISE OF THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

    	10

    	 

    

 

The Company agrees
to cause such legend to be removed immediately upon effectiveness of a registration statement covering the Series B Shares, or
when any Series B Shares are Rule 144 Eligible.  The Company further acknowledges and agrees that the Investor 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 Series B Shares to a financial institution that is an “accredited investor” as defined in Rule 501(a)
under the Securities Act and which agrees to be bound by the provisions of this Agreement and, if required under the terms of such
arrangement, the Investor may transfer pledged or secured Series B Shares to the pledgees or secured parties.  Such a
pledge or transfer would not be subject to approval of the Company and no legal opinion of legal counsel of the pledgee, secured
party or pledgor shall be required in connection therewith.  Further, no notice shall be required of such pledge.  At
the Investor’s reasonable expense, the Company will execute and deliver such documentation as a pledgee or secured party
of the Series B Shares may reasonably request in connection with a pledge or transfer of the Series B Shares.

 

4.2           Integration.  The
Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in
Section 2 of the Securities Act) that would be integrated with the offer or sale of the Series B Shares in a manner that would
require the registration under the Securities Act of the sale of the Series B Shares to the Investor.

 

4.3           Publicity.  The
Company and the Investor shall consult with each other in issuing any press releases with respect to the transactions contemplated
hereby, and neither the Company nor the Investor shall issue any such press release or otherwise make any such public statement
without the prior written consent of the Company, with respect to any such press release of the Investor, or without the prior
written consent of the Investor, with respect to any such press release of the Company, which consents shall not unreasonably be
withheld or delayed, except if such disclosure is required by law, in which case the disclosing party shall promptly provide the
other party with prior written notice of such public statement or communication.  Notwithstanding the foregoing, the
Company shall not publicly disclose the name of the Investor, or include the name of the Investor in any filing with the SEC or
any regulatory agency, without the prior written consent of the Investor, which consent shall not unreasonably be withheld or delayed,
except (i) as contained in the press release described above, or (ii) to the extent such disclosure is required by law or regulations,
in which case the Company shall provide the Investor with prior written notice of such disclosure.

 

4.4           Reverse
Merger.  The Investor hereby acknowledges and agrees to vote in favor of the proposed Merger. In the event that the
Company has not completed such Merger by June 21, 2013, the Company shall use its commercially reasonable efforts to complete an
initial public offering or a reverse merger into an appropriate, debt and liability free, public shell company, such that a class
of securities of the Company (or securities in the public shell company received by the members in such a transaction) will be
traded on a national securities exchange or on the over-the-counter bulletin board. Notwithstanding the understanding of the Parties,
the Parties agree that in the event that the Merger has not occurred by September 30, 2013, the Series B Shares owned by the Investor,
assuming the Maximum Amount has been purchased, shall automatically and without any action required by either Party hereto, convert
into debt of the Company to the Investor in the principal amount equal to 133% of the dollar amount then invested by the Investor,
whether into the Company directly or as set forth on Schedule A. The promissory note evidencing such debt shall have a term
of six (6) months and not bear interest.

 

4.5         Reimbursement.  If
Investor becomes involved in any capacity in any proceeding by or against any Person who is a shareholder of the Company (except
as a result of sales, pledges, margin sales and similar transactions by the Investor to or with any current shareholder), solely
as a result of Investor’s acquisition of the Series B Shares under this Agreement, the Company will reimburse the Investor
for its reasonable legal and other expenses (including the cost of any investigation preparation and travel in connection therewith)
incurred in connection therewith, as such expenses are incurred, or will assume the defense of the Investor in such matter.  The
reimbursement obligations of the Company under this Section 4.5 shall be in addition to any liability which the Company
may otherwise have, shall extend upon the same terms and conditions to any Affiliates of the Investor who are actually named in
such action, proceeding or investigation, and partners, directors, agents, employees and controlling persons (if any), as the case
may be, of the Investor and any such Affiliate, and shall be binding upon and inure to the benefit of any successors, assigns,
heirs and personal representatives of the Company, the Investor and any such Affiliate and any such Person.  The Company
also agrees that neither the Investor nor any such Affiliates, partners, directors, agents, employees or controlling persons shall
have any liability to the Company or any Person asserting claims on behalf of or in right of the Company solely as a result of
acquiring the Series B Shares under this Agreement.

 

4.6         Indemnification
of the Investor

 

(a)           Company
Indemnification Obligation.  Subject to the provisions of this Section 4.6, the Company will indemnify and
hold the Investor, its Affiliates and attorneys, and each of their managers, directors, officers, members, partners, employees,
agents, and any person who controls the Investor within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act (collectively, the “Investor Parties” and each an “Investor 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 (collectively, “Losses”)
that any Investor Party may suffer or incur as a result of or relating to (i) any breach of any of the representations, warranties,
covenants or agreements made by the Company in this Agreement or in the other Transaction Documents, and/or (ii) any action instituted
against any Investor Party, or any of them or their respective Affiliates, by any shareholder of the Company who is not an Affiliate
of an Investor Party, with respect to any of the transactions contemplated by the Transaction Documents (unless such action is
based upon a breach of the Investor’s representations, warranties or covenants under the Transaction Documents or any agreements
or understandings the Investor may have with any such Person or any violations by the Investor of state or federal securities laws
or any conduct by the Investor which constitutes fraud, gross negligence, willful misconduct or malfeasance).

 

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 (b)           Indemnification
Procedures.  If any action shall be brought against an Investor Party in respect of which indemnity may be sought
pursuant to this Agreement, such Investor 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.  The Investor Parties 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 the Investor Parties 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 such separate counsel, a material conflict with respect to the dispute
in question on any material issue between the position of the Company and the position of the Investor Parties such that it would
be inappropriate for one counsel to represent the Company and the Investor Parties.  The Company will not be liable to
the Investor Parties under this Agreement (i) for any settlement by an Investor Party effected without the Company’s prior
written consent, which shall not be unreasonably withheld or delayed; or (ii) to the extent, but only to the extent, that a loss,
claim, damage or liability is either attributable to the Investor’s breach of any of the representations, warranties, covenants
or agreements made by the Investor in this Agreement or in the other Transaction Documents.

 

4.7         No Additional Sales of Equity
Securities; Right of First Refusal. The Company agrees that for a period of six (6) months following the Effective Date, it
shall issue no equity securities to any Person without the prior written consent of the Investor. Commencing six (6) months after
the Effective Date, if the Company proposes to issue any of its equity securities to any Person (a “Sale”) the
Company shall first notify the Investor in writing of the proposed sale (the “Sale Notice”). Each Sale Notice
shall contain all material terms of the proposed Sale, including, without limitation, a copy (if applicable) of the written offer
received, the name and address of the prospective purchaser, the purchase price and terms of payment, the date and place of the
proposed Sale, and the number and description of equity securities proposed to be sold by the Company (the “Offered Securities”).
The Investor shall have an option for a period of fifteen (15) days from the date the Sale Notice is given to elect to purchase
all or a portion of the Offered Securities at the same price and subject to the same material terms and conditions as described
in the Sale Notice. The Investor may exercise such purchase option and, thereby, purchase all (or any portion of) of the Offered
Securities, by notifying the Company in writing, before expiration of such fifteen (15) day period as to the number of such Offered
Securities that it wishes to purchase.

 

4.8         Drag-Along Rights; Tag-Along
Rights.

 

(a)Drag-Along
Rights. In the event that the Investor accepts an offer to purchase its Series B Shares from a bona fide third party, the Investor
may send a written notice (the “Drag-Along Notice”) to the other shareholders of the Company (the “Drag-Along
Sellers”) specifying the name of the purchaser, the consideration payable per Series B Share and a summary of the material
terms of such proposed purchase. Upon receipt of a Drag-Along Notice, each Drag-Along Seller shall be obligated to (i) sell all
of its equity securities, free of any encumbrances, in the transaction contemplated by the Drag-Along Notice on the same terms
and conditions as the Investor (including payment of its pro-rata share of all costs associated with such transaction), and (ii)
otherwise take all necessary action to cause the consummation of such transaction, including voting its equity securities in favor
of such transaction. Each Drag-Along Seller further agrees to take all actions (including executing documents) in connection with
consummation of the proposed transaction as may reasonably be requested of it by the Investor, and hereby appoints the Investor
as its attorney-in-fact to do the same on its behalf.

 

(b)Tag-Along
Rights. In connection with any proposed purchase of equity securities from any shareholder of the Company other than the Investor
(a “Disposing Person”) by a third party, the Investor shall have the right, but not the obligation (a “Tag-Along
Right”), to require the third party to purchase from the Investor rather than from the Disposing Person, up to the number
of equity securities equal to the Investor’s Proportionate Share. The Investor’s “Proportionate Share”
shall mean a number of equity securities equal to the product of (i) the quotient determined by dividing the number of equity securities
held by the Investor by the aggregate number of equity securities held by the Disposing Person, multiplied by (ii) the number of
equity securities to be sold in the contemplated Sale. The transfer of equity securities by the Investor exercising its Tag-Along
Right pursuant to this Section 4.8(b) shall not be subject to the right of first refusal provided for in Section 4.7. The Tag-Along
Right may be exercised by the Investor by delivery of a written notice to the Disposing Person within 10 days following the date
of receipt of the sales notice (the “Disposing Person Sales Notice”), which notice shall set forth the number
of equity securities such Disposing Person elects to sell. Notwithstanding anything to the contrary contained herein, if any third
party offering to purchase equity securities does not purchase all of the equity securities offered by the Investor pursuant to
this Section 4.8(b), then the Disposing Person shall not be entitled to sell any equity securities to such third party, whether
pursuant to the terms originally agreed to by the Disposing Person and such third party or any other terms, without again complying
with this Section 8.3.

 

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4.9         Post-Merger Investments.
In the event that the entire Maximum Amount shall not have been purchased by the Investor prior to the closing of the Merger, the
Company shall cause Beacon to accept the remaining amount permitted to be invested hereunder on substantially identical terms and
conditions.

 

ARTICLE V

TERMINATION

 

5.1         Prior to the Closing.
This Agreement may be terminated at any time prior to the Closing:

 

(a)By the written agreement of
the Parties;

 

(b)By the Company or the Investor
in the event that the Closing has not occurred by June 28, 2013 (the “Termination Date”);

 

(c)By the Investor if the conditions
set forth in Section 2.2(b) shall not have been complied with or performed in any material respect and such noncompliance
or nonperformance shall not have been cured or eliminated (or by its nature cannot be cured or eliminated) on or before the Termination
Date; or

 

(d)At the option of the Investor
if (i) the Company sustains a Material Adverse Effect; (ii) trading in securities on the New York Stock Exchange has been suspended
or limited; (iii) material governmental restrictions have been imposed on trading in securities generally (not in force and effect
on the date hereof); (iv) a banking moratorium has been declared by federal or New York authorities; (v) an outbreak of major international
hostilities or other national or international calamity has occurred; (vi) a pending or threatened legal or governmental proceeding
or action relating to the operations, business or financial condition of the Company, or a written notification has been received
by any of the Parties hereto of the threat of any such proceeding or action, which could have or reasonably be expected to result
in a Material Adverse Effect; (vii) any material adverse change in the financial or securities markets beyond normal market fluctuations
has occurred since the date of this Agreement, and is continuing, and is reasonably expected to have a material adverse effect
on the transactions contemplated by this Agreement; or (viii) a terrorist attack upon the United States substantially similar in
magnitude and scope to those that occurred on September 11, 2001.

 

5.2         Liabilities
upon Termination prior to the Termination Date. In the event of the termination of this Agreement prior to the Termination
Date, this Agreement shall thereafter be valid solely to the extent performed, but shall become void and have no effect as to the
obligations of the Parties as to all matters to be performed on or after the Termination Date, and no Party hereto shall have any
liability concerning those matters to be performed after the Termination Date to the other Parties hereto or their respective equity
owners, managers, directors, officers, employees or agents in respect thereof, except that nothing herein will relieve any Party
from liability for any willful breach of any covenant herein contained prior to such termination. If this Agreement is terminated
prior to the Termination Date, each of the Parties hereto shall bear their own expenses incurred in negotiating the transactions
contemplated hereby and the preparation of this Agreement and its Schedules, Exhibits and all other related documents. 

 

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ARTICLE VI

MISCELLANEOUS

 

6.1         Fees
and Expenses.  Except as may be otherwise provided in this Agreement, each party shall pay the fees and expenses
of its own 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 the Transaction Documents.  The Company shall pay
all stamp and other taxes and duties levied in connection with the sale of the Series B Shares, if any.

 

6.2           Amendments;
Waivers.  No provision of this Agreement may be waived or amended except in a written instrument signed, in the case
of an amendment, by the Company and the Investor or, in the case of a waiver, by the party against whom enforcement of any such
waiver is sought.  No waiver of any default with respect to any provision, condition or requirement of this Agreement
shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision,
condition or requirement hereof, nor shall any delay or omission of either party to exercise any right hereunder in any manner
impair the exercise of any such right.

 

6.3           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.

 

6.4           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 the Investor; provided, however, that the Company may only assign this Agreement or any rights or obligations
hereunder to Beacon Enterprise Solutions Group, Inc., a Nevada corporation, without the prior written consent of the Investor.  The
Investor may assign any or all of its rights under this Agreement (a) to any Affiliate, or (b) to any Person to whom the Investor
assigns or transfers any Series B Shares.

 

6.5           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 6.4.

 

6.6           Governing
Law; Venue. This Agreement shall be governed solely and exclusively by and construed in accordance with the internal laws of
the State of New York without regard to the conflicts of laws principles thereof. The Parties hereto hereby expressly and irrevocably
agree that any suit or proceeding arising directly and/or indirectly pursuant to or under this Agreement shall be brought solely
in a federal or state court located in the City, State and County of New York. By its execution hereof, each Party hereby covenants
and irrevocably submits to the in personam jurisdiction of the federal and state courts located in the State of New York and agrees
that any process in any such action may be served upon any of them personally, or by certified mail or registered mail upon them
or their agent, return receipt requested, with the same full force and effect as if personally served upon them in the State of
New York. The Parties hereto expressly and irrevocably waive any claim that any such jurisdiction is not a convenient forum for
any such suit or proceeding and any defense or lack of in personam jurisdiction with respect thereto. In the event of any such
action or proceeding, the Party prevailing therein shall be entitled to payment from the other Party hereto of its reasonable counsel
fees and disbursements.

 

6.7           Survival.  The
representations and warranties contained herein shall survive the Closing for a period of three months following the Closing.

 

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

 

6.9    
    Severability.  If any provision of this Agreement is held to be invalid or unenforceable
in any respect, the validity and enforceability of the remaining terms and provisions of this Agreement shall not in any way be
affected or impaired thereby and the parties will attempt to agree upon a valid and enforceable provision that is a reasonable
substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Agreement.

 

    	14

    	 

    

 

6.10     
   Replacement of Series B Shares.  If any certificate or instrument evidencing any Series B Shares
is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon
cancellation thereof, 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 and customary and reasonable indemnity, if requested.  The
applicants for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs associated
with the issuance of such replacement Series B Shares.

 

6.11      
  Remedies.  In addition to being entitled to exercise all rights provided herein or granted by law, including
recovery of damages, each of the Investor 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
described in the foregoing sentence and hereby agree to waive in any action for specific performance of any such obligation the
defense that a remedy at law would be adequate.

 

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

 

6.13         Time
of the Essence.  Time is of the essence with respect to all provisions of this Agreement that specify a time for
performance.

 

6.14   
     Construction.  The parties agree that each of them and/or their respective counsel
has reviewed and had an opportunity to revise the Transaction Documents and, therefore, the normal rule of construction to the
effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of the Transaction
Documents or any amendments hereto. The language used in this Agreement will be deemed to be the language chosen by the parties
to express their mutual intent, and no rules of strict construction will be applied against any party.

 

6.15         Entire
Agreement.  This Agreement, together with the Exhibits, Appendices and Schedules hereto, contains the entire agreement
and understanding of the parties, and supersedes all prior and contemporaneous agreements, term sheets, letters, discussions, communications
and understandings, both oral and written, which the parties acknowledge have been merged into this Agreement.  No party,
representative, attorney or agent has relied upon any collateral contract, agreement, assurance, promise, understanding or representation
not expressly set forth hereinabove.  The parties hereby expressly waive all rights and remedies, at law and in equity,
directly or indirectly arising out of or relating to, or which may arise as a result of, any Person’s reliance on any such
assurance.

 

6.16Addresses
for Notice. Any notice required or permitted hereunder shall be given in writing (unless otherwise specified herein) and shall
be deemed effectively given, (a) on the date received, (i) by personal delivery, or (ii) if advance copy is given by fax, (b) seven
(7) Business Days after deposit with the applicable government postal service by certified mail, or (c) three (3) Business Days
after mailing by reputable international express courier, with postage and fees prepaid, addressed to each of the other parties
thereunto entitled at the following addresses, or at such other addresses as a party may designate by fifteen (15) days’
advance written notice to the other party hereto.

 

If to the Company:

 

Focus Venture Partners, Inc.

4647 Saucon Creek Road, Suite 201

Center Valley, Pennsylvania 18034

Attn: Christopher Ferguson, CEO

Phone: (877) 633-2239

Fax: (610) 672-9999

Email:cferguson@focusventurepartners.com

 

    	15

    	 

    

 

with a copy to (for
information purposes only):

 

Fox Rothschild LLP

2700 Kelly Road, Suite 300

Warrington, Pennsylvania 18976

Attn:
Adam G. Silverstein, Esq.

Phone: (215) 918-3611

Fax: (215) 345-7507

Email:asilverstein@foxrothschild.com

 

If to the Investor:

 

5G Investments, LLC

90 Park Avenue

New York, New York 10016

Attn: Hugh Regan

Phone: (212) 953-4906

Fax: (212) 682-0380

Email:hregan@laidlawltd.com

 

with a copy to (for
information purposes only):

 

Sichenzia Ross Friedman Ference
LLP

61 Broadway, 32nd Floor

New York, New York 10006

Attn.: Richard Friedman, Esq.

Phone: (212) 930-9700

Fax: (212) 930-9725

Email:rfriedman@srff.com

 

 

 

[remainder of page left intentionally
blank; signature page follows]

 

    	16

    	 

    

 

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

 

	 	5G INVESTMENTS, LLC
	 	 	 
	 	 	 
	 	By:  	 
	 	 	a duly authorized signatory
	 	 	 
	 	 	 
	 	 	 
	 	FOCUS VENTURE PARTNERS, INC.
	 	 	 
	 	 	 
	 	By:	 
	 	 	a duly authorized signatory

 

 

 

Number of Series B Shares purchased: 30,000

 

Purchase Price per Series B Share: $50.00

 

Aggregate Purchase Price: $1,500,000

 

    	17

    	 

    

 

Exhibit A

 

 

Certificate of Designation

 

Exhibit B

 

 

Opinion

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