Document:

ex10_42.htm

Exhibit 10.42

 

 

COMPENSATION RECOUPMENT POLICY

 

 

Tractor Supply Company shall seek to recover incentive compensation paid to any executive as required by the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act or any other “clawback” provision required by law or the listing standards of the NASDAQ Global Select Market.Exhibit 10.15

EXECUTION COPY

PURCHASE AGREEMENT

          PURCHASE
AGREEMENT (the “Agreement”), dated as of March 7,
2011, by and between GREEN EARTH
TECHNOLOGIES, INC., a Delaware corporation, (the “Company”), and LINCOLN PARK CAPITAL FUND, LLC, an Illinois
limited liability company (the “Investor”). 

WHEREAS:

Subject to the terms and conditions set forth in this Agreement, the
Company wishes to sell to the Investor, and the Investor wishes to buy from the
Company, up to Fifteen Million Dollars ($15,000,000) of the Company’s common
stock, $0.001 par value per share (the “Common Stock”). The shares of Common
Stock to be purchased hereunder are referred to herein as the “Purchase
Shares.” 

NOW THEREFORE,
the Company and the Investor hereby agree as follows: 

          1.          CERTAIN
DEFINITIONS.  

          For
purposes of this Agreement, the following terms shall have the following
meanings: 

          (a)          “Accelerated
Purchase Notice” shall mean an irrevocable written notice from the Company to
the Investor directing the Investor to buy such Accelerated Purchase Amount in
Purchase Shares as specified by the Company therein on the Purchase Date. 

          (b)          “Available
Amount” means initially Fifteen Million Dollars ($15,000,000) in the aggregate
which amount shall be reduced by the Purchase Amount each time the Investor
purchases shares of Common Stock pursuant to Section 2 hereof. 

          (c)          “Bankruptcy
Law” means Title 11, U.S. Code, or any similar federal or state law for the
relief of debtors. 

          (d)          “Business
Day” means any day on which the Principal Market is open for trading including
any day on which the Principal Market is open for trading for a period of time
less than the customary time. 

          (e)          “Closing
Sale Price” means, for any security as of any date, the last closing sale price
for such security on the Principal Market as reported by the Principal Market,
or, if the Principal Market is not the principal securities exchange or trading
market for such security, the last closing sale price of such security on the
principal securities exchange or trading market where such security is listed
or traded as reported by the Principal Market. 

          (f)          “Confidential
Information” means any information disclosed by either party to the other
party, either directly or indirectly, in writing, orally or by inspection of
tangible objects (including, without limitation, documents, prototypes,
samples, plant and equipment), which is designated as “Confidential,”
“Proprietary” or some similar designation. Information communicated orally
shall be considered Confidential Information if such information is confirmed
in writing as being Confidential Information within ten (10) Business Days
after the initial disclosure. Confidential Information may also include
information disclosed to a disclosing party by third parties. Confidential
Information shall not, however, include any information which (i) was publicly
known and made generally available in the public domain prior to the time of
disclosure by the disclosing party; (ii) becomes publicly known and 

made generally available after disclosure by the disclosing party to
the receiving party through no action or inaction of the receiving party; (iii)
is already in the possession of the receiving party at the time of disclosure
by the disclosing party as shown by the receiving party’s files and records
immediately prior to the time of disclosure; (iv) is obtained by the receiving
party from a third party without a breach of such third party’s obligations of
confidentiality; (v) is independently developed by the receiving party without
use of or reference to the disclosing party’s Confidential Information, as
shown by documents and other competent evidence in the receiving party’s
possession; or (vi) is required by law to be disclosed by the receiving party,
provided that the receiving party gives the disclosing party prompt written
notice of such requirement prior to such disclosure and assistance in obtaining
an order protecting the information from public disclosure. 

          (g)          “Custodian”
means any receiver, trustee, assignee, liquidator or similar official under any
Bankruptcy Law. 

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

          (i)          “Maturity
Date” means the date that is 600 Business Days (30 Monthly Periods) from the
Commencement Date. 

          (j)          “Monthly
Period” means each successive 20 Business Day period commencing with the
Commencement Date. 

          (k)          “Person”
means an individual or entity including but not limited to any limited
liability company, a partnership, a joint venture, a corporation, a trust, an
unincorporated organization and a government or any department or agency
thereof. 

          (l)           “Principal Market” means the OTC
Bulletin Board (it being understood that as used herein “OTC Bulletin Board”
shall also mean any successor or comparable market quotation system or exchange
to the OTC Bulletin Board such as the OTCQB operated by the OTC Markets Group,
Inc.); provided however, that in the event the Company’s Common Stock is ever
listed or traded on the Nasdaq Global Market, the Nasdaq Global Select Market,
the Nasdaq Capital Market, the New York Stock Exchange, or the NYSE Amex, then
the “Principal Market” shall mean such other market or exchange on which the
Company’s Common Stock is then listed or traded. 

          (m)          “Purchase
Amount” means, with respect to any particular purchase made hereunder, the
portion of the Available Amount to be purchased by the Investor pursuant to
Section 2 hereof. 

          (n)          “Purchase
Date” means with respect to any particular purchase made hereunder, the Business
Day on which the Investor receives by 10:00 a.m. eastern time of such Business
Day a valid Regular Purchase Notice or a valid Accelerated Purchase Notice that
the Investor is to buy Purchase Shares pursuant to Section 2 hereof. 

          (o)          
“Purchase Price” means the lower of the (A) the lowest Sale Price of the Common
Stock on the Purchase Date and (B) the arithmetic average of the three (3)
lowest Closing Sale Prices for the Common Stock during the twelve (12)
consecutive Business Days ending on the Business Day immediately preceding such
Purchase Date (to be appropriately adjusted for any reorganization,
recapitalization, non-cash dividend, stock split or other similar transaction
subsequent to the later of (i) the date hereof and (ii) the most recent
Purchase Date, and prior to the relevant Purchase Date). 

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          (p)          “Regular
Purchase Notice” shall mean an irrevocable written notice from the Company to
the Investor directing the Investor to buy such Regular Purchase Amount in
Purchase Shares as specified by the Company therein on the Purchase Date. 

          (q)          “Sale
Price” means any sale price for the shares of Common Stock on the Principal
Market as reported by the Principal Market. 

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

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

          (t)          “Transfer
Agent” means the transfer agent of the Company as set forth in Section 11(f)
hereof or such other person who is then serving as the transfer agent for the
Company in respect of the Common Stock. 

          2. PURCHASE OF COMMON STOCK.

          Subject
to the terms and conditions set forth in this Agreement, the Company has the
right to sell to the Investor, and the Investor has the obligation to purchase
from the Company, Purchase Shares as follows: 

          (a)          Commencement
of Regular Sales of Common Stock. Upon the satisfaction of the conditions
set forth in Sections 7 and 8 hereof (the “Commencement” and the date of
satisfaction of such conditions the “Commencement Date”) the Company shall have
the right but not the obligation to direct the Investor by its delivery to the
Investor of a Regular Purchase Notice from time to time to buy Purchase Shares
(each such purchase a “Regular Purchase”) in any amount up to Fifty Thousand
Dollars ($50,000.00) per Regular Purchase Notice (the “Regular Purchase
Amount”) at the Purchase Price on the Purchase Date. The Company may deliver
multiple Regular Purchase Notices to the Investor so long as at least two (2)
Business Days have passed since the most recent Regular Purchase was completed.

          (b)          Accelerated
Purchases. At any time on or after the Commencement Date, the Company shall also
have the right to direct the Investor to buy Purchase Shares (each such
purchase an “Accelerated Purchase”) in the amounts specified in this Section
2(b) per Accelerated Purchase Notice at the Accelerated Purchase Price on the
Purchase Date by delivering to the Investor Accelerated Purchase Notices as
follows: the Accelerated Purchase Amount may be up to Seventy Five Thousand
Dollars ($75,000.00) per Accelerated Purchase Notice provided that the Closing
Sale Price of the Common Stock must not be below $.40 (subject to equitable
adjustment for any reorganization, recapitalization, non-cash dividend, stock
split or other similar transaction subsequent to the date hereof and prior to
the termination of this Agreement) on the Purchase Date. The Accelerated
Purchase Amount may be increased to up to One Hundred Fifty Thousand Dollars
($150,000.00) per Accelerated Purchase Notice if the Closing Sale Price of the
Common Stock is not below $.60 (subject to equitable adjustment for any reorganization,
recapitalization, non-cash dividend, stock split or other similar transaction
subsequent to the date hereof and prior to the termination of this Agreement)
on the Purchase Date. The Accelerated Purchase Amount may be increased to up to
Two Hundred Fifty Thousand Dollars ($250,000.00) per Accelerated Purchase
Notice if the Closing Sale Price of the Common Stock is not below $.90 (subject
to equitable adjustment for any reorganization, recapitalization, non-cash
dividend, stock split or other similar transaction subsequent to the date
hereof and prior to the termination of this Agreement) on the Purchase Date.
The Accelerated Purchase Amount may be increased to up to Five Hundred Thousand
Dollars ($500,000.00) per Accelerated Purchase Notice if the Closing Sale Price
of the Common Stock is not below $1.50 (subject to equitable adjustment for any
reorganization, recapitalization, non-cash dividend, stock split or 

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other similar transaction subsequent to the date hereof and prior to
the termination of this Agreement) on the Purchase Date. With respect to each
such Accelerated Purchase, the Company must deliver the Purchase Shares before
1:00 p.m. eastern time on the Business Day following the Purchase Date. As used
herein, the term “Accelerated Purchase Price” shall mean the lesser of (i) the
lowest Sale Price of the Common Stock on the Purchase Date or (ii) the lowest
Purchase Price during the previous ten (10) Business Days prior to the date
that the valid Accelerated Purchase Notice was received by the Investor.
However, if on any Purchase Date the Closing Sale Price of the Common Stock is
below the applicable Accelerated Purchase threshold price, such Accelerated
Purchase shall be void and the Investor’s obligations to buy Purchase Shares in
respect of that Accelerated Purchase Notice shall be terminated, provided,
however, that the Accelerated Purchase Amount shall automatically be reduced to
the next lowest Accelerated Purchase Amount unless the applicable Closing Sale
Price is below $.40, in which event it shall automatically become a Regular
Purchase to the extent a Regular Purchase is otherwise permitted under the
Agreement. Thereafter, the Company shall again have the right to submit an
Accelerated Purchase Notice as set forth herein by delivery of a new
Accelerated Purchase Notice only if the Closing Sale Price of the Common Stock
is at or above the applicable Accelerated Purchase Amount threshold price on
the date of the delivery of the Accelerated Purchase Notice. The Company may
deliver multiple Accelerated Purchase Notices to the Investor so long as at
least two (2) Business Days have passed since the most recent Accelerated
Purchase was completed.

          (c)          Payment
for Purchase Shares. The Investor shall pay to the Company an amount equal
to the Purchase Amount with respect to such Purchase Shares as full payment for
such Purchase Shares via wire transfer of immediately available funds on the
same Business Day that the Investor receives such Purchase Shares if they are received
by the Investor before 1:00 p.m. eastern time or if received by the Investor
after 1:00 p.m. eastern time, the next Business Day. The Company shall not
issue any fraction of a share of Common Stock upon any purchase. If the
issuance would result in the issuance of a fraction of a share of Common Stock,
the Company shall round such fraction of a share of Common Stock up or down to
the nearest whole share. All payments made under this Agreement shall be made
in lawful money of the United States of America or wire transfer of immediately
available funds to such account as the Company may from time to time designate
by written notice in accordance with the provisions of this Agreement. Whenever
any amount expressed to be due by the terms of this Agreement is due on any day
that is not a Business Day, the same shall instead be due on the next
succeeding day that is a Business Day. 

          (d)          Purchase
Price Floor. The Company and the Investor shall not effect any sales and
purchases under this Agreement on any Purchase Date where the Purchase Price
for any purchases of Purchase Shares would be less than the Floor Price. “Floor
Price” means $.20, which shall be appropriately adjusted for any
reorganization, recapitalization, non-cash dividend, stock split or other
similar transaction subsequent to the date hereof and prior to the termination
of this Agreement. 

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          3.          INVESTOR’S
REPRESENTATIONS AND WARRANTIES. 

          The
Investor represents and warrants to the Company that as of the date hereof and
as of the Commencement Date: 

          (a)          Investment
Purpose. The Investor is acquiring the Purchase Shares, and Commitment
Shares (collectively, 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 the Investor’s right to sell the Securities at any time
pursuant to the registration statement described herein or otherwise in
compliance with applicable federal and state securities laws and with respect
to the Additional Commitment Shares, subject to Section 5(e) hereof). The
Investor is acquiring the Securities hereunder in the ordinary course of its
business. 

          (b)          Accredited
Investor Status. The Investor is an “accredited investor” as that term is
defined in Rule 501(a)(3) of Regulation D. 

          (c)          Reliance
on Exemptions. The Investor understands that the Securities may be offered
and sold to it in reliance on specific exemptions from the registration
requirements of United States federal and state securities laws and that the
Company is relying in part upon the truth and accuracy of, and the Investor’s
compliance with, the representations, warranties, agreements, acknowledgments
and understandings of the Investor set forth herein in order to determine the
availability of such exemptions and the eligibility of the Investor to acquire
the Securities. 

          (d)          Information.
The Investor understands that its investment in the Securities involves a high
degree of risk. The Investor (i) is able to bear the economic risk of an
investment in the Securities including a total loss, (ii) has such knowledge
and experience in financial and business matters that it is capable of
evaluating the merits and risks of the proposed investment in the Securities
and (iii) has had an opportunity to ask questions of and receive answers from
the officers of the Company concerning the financial condition and business of
the Company and others matters related to an investment in the Securities. The
Investor has sought such accounting, legal and tax advice as it has considered
necessary to make an informed investment decision with respect to its
acquisition of the Securities. 

          (e)          No
Governmental Review. The Investor understands that no United States federal
or state agency or any other government or governmental agency has passed on or
made any recommendation or endorsement of the Securities or the fairness or
suitability of the investment in the Securities nor have such authorities
passed upon or endorsed the merits of the offering of the Securities. 

          (f)          Transfer
or Sale. The Investor understands that (i) the Securities may not be
offered for sale, sold, assigned or transferred unless (A) registered pursuant
to the Securities Act or (B) an exemption exists permitting such Securities to
be sold, assigned or transferred without such registration; (ii) any sale of
the Securities made in reliance on Rule 144 may be made only in accordance with
the terms of Rule 144 and further, if Rule 144 is not applicable, any resale of
the Securities under circumstances in which the seller (or the person through
whom the sale is made) may be deemed to be an underwriter (as that term is
defined in the Securities Act) may require compliance with some other exemption
under the Securities Act or the rules and regulations of the SEC thereunder. 

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          (g)          Validity;
Enforcement. This Agreement has been duly and validly authorized, executed
and delivered on behalf of the Investor and is a valid and binding agreement of
the Investor enforceable against the Investor in accordance with its terms,
subject as to enforceability to general principles of equity and to applicable
bankruptcy, insolvency, reorganization, moratorium, liquidation and other
similar laws relating to, or affecting generally, the enforcement of applicable
creditors’ rights and remedies. 

          (h)          Residency.
The Investor is a resident of the State of Illinois. 

          (i)          No
Short Selling. The Investor represents and warrants to the Company that at
no time has any of the Investor, its agents, representatives or affiliates
engaged in or effected, in any manner whatsoever, directly or indirectly, any
(i) “short sale” (as such term is defined in Section 242.200 of Regulation SHO
of the Exchange Act) of the Common Stock or any other security of the Company
that is convertible into or exchangeable for shares of Common Stock or (ii)
hedging transaction, which establishes a net short position with respect to the
Common Stock or any other security of the Company that is convertible into or
exchangeable for shares of Common Stock. 

          4.          REPRESENTATIONS
AND WARRANTIES OF THE COMPANY. 

          The
Company represents and warrants to the Investor that as of the date hereof and
as of the Commencement Date: 

          (a)          Organization
and Qualification. The Company and each of the Subsidiaries (which for
purposes of this Agreement means any entity in which the Company, directly or
indirectly, owns 50% or more of the voting stock or capital stock or other
similar equity interests) 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
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 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 (as defined below), (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. The Company has no Subsidiaries except as set forth
on Schedule 4(a). 

          (b)          Authorization;
Enforcement; Validity. (i) The Company has the requisite corporate power
and authority to enter into and perform its obligations under this Agreement,
the Registration Rights Agreement and each of the other agreements entered into
by the parties on the Commencement Date and attached hereto as exhibits to this
Agreement (collectively, the “Transaction Documents”), and to issue the
Securities in accordance with the terms hereof and thereof, (ii) the execution
and delivery of the Transaction Documents by the Company and the consummation
by it of the transactions contemplated hereby and thereby, including without
limitation, the issuance of the Commitment Shares and the reservation for
issuance and the issuance of the Purchase Shares issuable under this Agreement,
have been duly authorized by the Company’s Board of Directors and no further
consent or authorization is required 

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by the Company, its Board of Directors or its shareholders, (iii) this
Agreement has been, and each other Transaction Document shall be on the
Commencement Date, duly executed and delivered by the Company and (iv) this
Agreement constitutes, and each other Transaction Document upon its execution
on behalf of the Company, shall constitute, the valid and binding obligations
of the Company enforceable against the Company in accordance with their
respective terms, except as such enforceability may be limited by general
principles of equity or applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation or similar laws relating to, or affecting generally,
the enforcement of creditors’ rights and remedies. The Board of Directors of
the Company has approved the resolutions (the “Signing Resolutions”)
substantially in the form as set forth as Exhibit C attached hereto to
authorize this Agreement and the transactions contemplated hereby. The Signing
Resolutions are valid, in full force and effect and have not been modified or
supplemented in any respect. The Company has delivered to the Investor a true
and correct copy of a unanimous written consent adopting the Signing
Resolutions executed by all of the members of the Board of Directors of the
Company. No other approvals or consents of the Company’s Board of Directors
and/or shareholders is necessary under applicable laws and the Company’s
Certificate of Incorporation and/or Bylaws to authorize the execution and
delivery of this Agreement or any of the transactions contemplated hereby,
including, but not limited to, the issuance of the Commitment Shares and the
issuance of the Purchase Shares. 

          (c)          Capitalization.
As of the date hereof, the authorized capital stock of the Company is set forth
on Schedule 4(c). Except as disclosed in Schedule 4(c), (i) no
shares of the Company’s capital stock are subject to preemptive rights or any
other similar rights or any liens or encumbrances suffered or permitted by the
Company, (ii) there are no outstanding debt securities, (iii) there are no
outstanding options, warrants, scrip, rights to subscribe to, calls or
commitments of any character whatsoever relating to, or securities or rights
convertible into, any shares of capital stock of the Company or any of its
Subsidiaries, or contracts, commitments, understandings or arrangements by which
the Company or any of its Subsidiaries is or may become bound to issue
additional shares of capital stock of the Company or any of its Subsidiaries or
options, warrants, scrip, rights to subscribe to, calls or commitments of any
character whatsoever relating to, or securities or rights convertible into, any
shares of capital stock of the Company or any of its Subsidiaries, (iv) there
are no agreements or arrangements under which the Company or any of its
Subsidiaries is obligated to register the sale of any of their securities under
the Securities Act (except the Registration Rights Agreement), (v) there are no
outstanding securities or instruments of the Company or any of its Subsidiaries
which contain any redemption or similar provisions, and there are no contracts,
commitments, understandings or arrangements by which the Company or any of its
Subsidiaries is or may become bound to redeem a security of the Company or any
of its Subsidiaries, (vi) there are no securities or instruments containing
anti-dilution or similar provisions that will be triggered by the issuance of
the Securities as described in this Agreement and (vii) the Company does not
have any stock appreciation rights or “phantom stock” plans or agreements or
any similar plan or agreement. The Company has furnished to the Investor true
and correct copies of the Company’s Certificate of Incorporation, as amended
and as in effect on the date hereof (the “Certificate of Incorporation”), and
the Company’s By-laws, as amended and as in effect on the date hereof (the
“By-laws”), and summaries of the terms of all securities convertible into or
exercisable for Common Stock, if any, and copies of any documents containing
the material rights of the holders thereof in respect thereto. 

          (d)          Issuance
of Securities. Upon issuance and payment therefor in accordance with the
terms and conditions of this Agreement, the Purchase Shares, shall be validly
issued, fully paid and nonassessable and free from all taxes, liens and charges
with respect to the issue thereof, with the holders being entitled to all
rights accorded to a holder of Common Stock. The Commitment Shares have been
duly authorized and, upon issuance in accordance with the terms hereof, the
Commitment Shares shall be (i) validly issued, fully paid and non-assessable
and (ii) free from all taxes, liens and charges with respect to the issue
thereof. 20,000,000 shares of Common Stock have been duly authorized and
reserved for issuance upon purchase under this Agreement as Purchase Shares.
574,300 shares of Common Stock 

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(subject to equitable adjustment for any reorganization,
recapitalization, non-cash dividend, stock split or other similar transaction)
have been duly authorized and reserved for issuance as Additional Commitment Shares
in accordance with this Agreement. 

          (e)          No
Conflicts. Except as disclosed in Schedule 4(e), the execution,
delivery and performance of the Transaction Documents by the Company and the
consummation by the Company of the transactions contemplated hereby and thereby
(including, without limitation, the reservation for issuance and issuance of
the Purchase Shares) will not (i) result in a violation of the Certificate of
Incorporation, any Certificate of Designations, Preferences and Rights of any
outstanding series of preferred stock of the Company or the By-laws or (ii)
conflict with, or constitute a default (or an event which with notice or lapse
of time or both would become a default) under, or give to others any rights of
termination, amendment, acceleration or cancellation of, any agreement,
indenture or instrument to which the Company or any of its Subsidiaries is a
party, or result in a violation of any law, rule, regulation, order, judgment
or decree (including federal and state securities laws and regulations and the
rules and regulations of the Principal Market applicable to the Company or any
of its Subsidiaries) or by which any property or asset of the Company or any of
its Subsidiaries is bound or affected, except in the case of conflicts,
defaults, terminations, amendments, accelerations, cancellations and violations
under clause (ii), which could not reasonably be expected to result in a
Material Adverse Effect. Except as disclosed in Schedule 4(e), neither
the Company nor its Subsidiaries is in violation of any term of or in default
under its Certificate of Incorporation, any Certificate of Designation,
Preferences and Rights of any outstanding series of preferred stock of the
Company or By-laws, respectively. Except as disclosed in Schedule 4(e),
neither the Company nor any of its Subsidiaries is in violation of any term of
or is in default under any material contract, agreement, mortgage,
indebtedness, indenture, instrument, judgment, decree or order or any statute,
rule or regulation applicable to the Company or its Subsidiaries, except for
possible conflicts, defaults, terminations or amendments which could not
reasonably be expected to have a Material Adverse Effect. The business of the
Company and its Subsidiaries is not being conducted, and shall not be
conducted, in violation of any law, ordinance, regulation of any governmental
entity, except for possible violations the sanctions for which either
individually or in the aggregate could not reasonably be expected to have a Material
Adverse Effect. Except as specifically contemplated by this Agreement and as
required under the Securities Act or applicable state securities laws, the
Company is not required to obtain any consent, authorization or order of, or
make any filing or registration with, any court or governmental agency or any
regulatory or self-regulatory agency in order for it to execute, deliver or
perform any of its obligations under or contemplated by the Transaction
Documents in accordance with the terms hereof or thereof. Except as disclosed
in Schedule 4(e), all consents, authorizations, orders, filings and
registrations which the Company is required to obtain pursuant to the preceding
sentence shall be obtained or effected on or prior to the Commencement Date. Except
as listed in Schedule 4(e), since one year prior to the date hereof, the
Company has not received nor delivered any notices or correspondence from or to
the Principal Market. The Principal Market has not commenced any delisting
proceedings against the Company. 

          (f)          SEC
Documents; Financial Statements. Except as disclosed in Schedule 4(f)the
Company has filed all reports, schedules, forms, statements and other documents
required to be filed by the Company under the Securities Act and the Exchange
Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years
preceding the date hereof (or such shorter period as the Company was required
by law or regulation to file such material) (the foregoing materials, including
the exhibits thereto and documents incorporated by reference therein, being
collectively referred to herein as the “SEC Documents”) on a timely basis or
has received a valid extension of such time of filing and has filed any such
SEC Documents prior to the expiration of any such extension. As of their
respective dates, the SEC Documents complied in all material respects with the
requirements of the Securities Act and the Exchange Act, as applicable, and
none of the SEC Documents, when filed, contained any untrue statement of a
material fact or omitted to state a material fact required to be stated therein
or necessary in 

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order to make the statements therein, in the light of the circumstances
under which they were made, not misleading. The financial statements of the
Company included in the SEC Documents comply in all material respects with
applicable accounting requirements and the rules and regulations of the
Commission with respect thereto as in effect at the time of filing. Such
financial statements have been prepared in accordance with United States
generally accepted accounting principles applied on a consistent basis during
the periods involved (“GAAP”), except as may be otherwise specified in such
financial statements or the notes thereto and except that unaudited financial
statements may not contain all footnotes required by GAAP, and 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, in the case of
unaudited statements, to normal, immaterial, year-end audit adjustments. Except
as listed in Schedule 4(f), the Company has received no notices or
correspondence from the SEC for the one year preceding the date hereof. The SEC
has not commenced any enforcement proceedings against the Company or any of its
subsidiaries. 

          (g)          Absence
of Certain Changes. Except as disclosed in Schedule 4(g), since
December 31, 2010, there has been no material adverse change in the business,
properties, operations, financial condition or results of operations of the
Company or its Subsidiaries. The Company has not taken any steps, and does not
currently expect to take any steps, to seek protection pursuant to any
Bankruptcy Law nor does the Company or any of its Subsidiaries have any
knowledge or reason to believe that its creditors intend to initiate
involuntary bankruptcy or insolvency proceedings. The Company is financially
solvent and is generally able to pay its debts as they become due. 

          (h)          Absence
of Litigation. Except as set forth in Schedule 4(h), there is no
action, suit, proceeding, inquiry or investigation before or by any court,
public board, government agency, self-regulatory organization or body pending
or, to the knowledge of the Company or any of its Subsidiaries, threatened
against or affecting the Company, the Common Stock or any of the Company’s
Subsidiaries or any of the Company’s or the Company’s Subsidiaries’ officers or
directors in their capacities as such, which could reasonably be expected to
have a Material Adverse Effect. A description of each action, suit, proceeding,
inquiry or investigation before or by any court, public board, government agency,
self-regulatory organization or body which, as of the date of this Agreement,
is pending or threatened in writing against or affecting the Company, the
Common Stock or any of the Company’s Subsidiaries or any of the Company’s or
the Company’s Subsidiaries’ officers or directors in their capacities as such,
is set forth in Schedule 4(h). 

          (i)          Acknowledgment
Regarding Investor’s Status. The Company acknowledges and agrees that the
Investor is acting solely in the capacity of arm’s length purchaser with
respect to the Transaction Documents and the transactions contemplated hereby
and thereby. 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 the Transaction Documents and the transactions contemplated
hereby and thereby and any advice given by the Investor or any of its
representatives or agents in connection with the Transaction Documents and the
transactions contemplated hereby and thereby is merely incidental to the
Investor’s purchase of the Securities. The Company further represents to the
Investor that the Company’s decision to enter into the Transaction Documents
has been based solely on the independent evaluation by the Company and its
representatives and advisors.  

          (j)          No
General Solicitation. Neither the Company, nor any of its affiliates, nor any
person acting on its or their behalf, has engaged in any form of general
solicitation or general advertising (within the meaning of Regulation D under
the Securities Act) in connection with the offer or sale of the Securities.  

-9-

          (k)          Intellectual
Property Rights. The Company and its Subsidiaries own or possess adequate
rights or licenses to use all material trademarks, trade names, service marks,
service mark registrations, service names, patents, patent rights, copyrights,
inventions, licenses, approvals, governmental authorizations, trade secrets and
rights necessary to conduct their respective businesses as now conducted other
than where the failure to own or possess such rights or licenses could not
reasonably be expected to have a Material Adverse Effect. Except as set forth
on Schedule 4(k), none of the Company’s material trademarks, trade
names, service marks, service mark registrations, service names, patents,
patent rights, copyrights, inventions, licenses, approvals, government
authorizations, trade secrets or other intellectual property rights have
expired or terminated, or, by the terms and conditions thereof, could expire or
terminate within two years from the date of this Agreement. The Company and its
Subsidiaries do not have any knowledge of any infringement by the Company or
its Subsidiaries of any material trademark, trade name rights, patents, patent
rights, copyrights, inventions, licenses, service names, service marks, service
mark registrations, trade secret or other similar rights of others, or of any
such development of similar or identical trade secrets or technical information
by others and, except as set forth on Schedule 4(k), there is no claim,
action or proceeding being made or brought against, or to the Company’s
knowledge, being threatened against, the Company or its Subsidiaries regarding
trademark, trade name, patents, patent rights, invention, copyright, license,
service names, service marks, service mark registrations, trade secret or other
infringement, which could reasonably be expected to have a Material Adverse
Effect. 

          (l)          Environmental
Laws. The Company and its Subsidiaries (i) are in compliance with any and
all applicable foreign, federal, state and local laws and regulations relating
to the protection of human health and safety, the environment or hazardous or
toxic substances or wastes, pollutants or contaminants (“Environmental Laws”),
(ii) have received all permits, licenses or other approvals required of them
under applicable Environmental Laws to conduct their respective businesses and
(iii) are in compliance with all terms and conditions of any such permit,
license or approval, except where, in each of the three foregoing clauses, the
failure to so comply could not reasonably be expected to have, individually or
in the aggregate, a Material Adverse Effect. 

          (m)          Title.
The Company and the Subsidiaries have good and marketable title in fee simple
to all real property owned by them and 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, encumbrances
and defects (“Liens”), except for 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 Liens for
the payment of federal, state or other taxes, the payment of which is neither
delinquent nor subject to penalties. Any real property and facilities held
under lease by the Company and the Subsidiaries are held by them under valid,
and enforceable leases with which the Company and the Subsidiaries are in
compliance with such exceptions as are not material and do not interfere with
the use made and proposed to be made of such property and buildings by the
Company and its Subsidiaries.

          (n)          Insurance.
The Company and each of its Subsidiaries are insured by insurers of recognized
financial responsibility against such losses and risks and in such amounts as
management of the Company believes to be prudent and customary in the
businesses in which the Company and its Subsidiaries are engaged. Neither the
Company nor any such Subsidiary has been refused any insurance coverage sought
or applied for and neither the Company nor any such 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 at a cost that would not
materially and adversely affect the condition, financial or otherwise, or the
earnings, business or operations of the Company and its Subsidiaries, taken as
a whole. 

-10-

          (o)          Regulatory
Permits. The Company and its Subsidiaries possess all material certificates,
authorizations and permits issued by the appropriate federal, state or foreign
regulatory authorities necessary to conduct their respective businesses, and
neither the Company nor any such Subsidiary has received any notice of
proceedings relating to the revocation or modification of any such certificate,
authorization or permit. 

          (p)          Tax
Status. The Company and each of its Subsidiaries has made or filed all
federal and state income and all other material 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 provision 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. 

          (q)          Transactions
With Affiliates. Except as set forth in the SEC Documents, 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 $100,000 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) other employee benefits, including stock option agreements
under any stock option plan of the Company. 

          (r)          Application
of Takeover Protections. The Company and its board of directors have taken
or will take prior to the Commencement Date 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 Certificate of Incorporation
or the laws of the state of its incorporation which is or could become
applicable to the Investor as a result of the transactions contemplated by this
Agreement, including, without limitation, the Company’s issuance of the
Securities and the Investor’s ownership of the Securities. 

          (s)          Disclosure.
Except with respect to the material terms and conditions of the transactions
contemplated by the Transaction Documents, the Company confirms that neither it
nor any other Person acting on its behalf has provided the Investor or its
agents or counsel with any information that it believes constitutes or might
constitute material, non-public information which is not otherwise disclosed in
the Registration Statement or prospectus supplements thereto. The Company
understands and confirms that the Investor will rely on the foregoing
representation in effecting purchases and sales of Securities of the Company.
All of the disclosure furnished by or on behalf of the Company to the Investor regarding
the Company, its business and the transactions contemplated hereby, including
the disclosure schedules to this Agreement, is true and correct in all material
respects 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 press releases disseminated by the Company during the twelve
months preceding the date of this Agreement taken as a whole do not contain any
untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary in order to make the statements therein, in
light of the circumstances under which they were 

-11-

made and when made, not misleading. The Company acknowledges and agrees
that the Investor neither makes nor has made any representations or warranties
with respect to the transactions contemplated hereby other than those
specifically set forth in Section 3 hereof. 

          (t)          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 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. 

          (u)          DTC
Eligible. The Company through its transfer agent currently participates in
the Depository Trust Company Fast Automated Securities Transfer Program (“DTC
FAST System”) and the Company’s Common Stock can be transferred electronically
to third parties via the DTC FAST System. 

          5.          COVENANTS.

          (a)          Filing
of Form 8-K and Registration Statement. The Company agrees that it shall,
within the time required under the Exchange Act file a Report on Form 8-K
disclosing this Agreement and the transaction contemplated hereby. The Company
shall also file within thirty (30) Business Days from the date hereof a new
registration statement covering only the sale of the Purchase Shares and the
Commitment Shares, in accordance with the terms of the Registration Rights
Agreement between the Company and the Investor, dated as of the date hereof
(“Registration Rights Agreement”). Any Securities issuable under this Agreement
that have not been registered under the Securities Act shall bear the following
restrictive legend (the “Restrictive Legend”): 

	
  

 	
  

 	
  

 
	
  

 	
 THE SECURITIES REPRESENTED BY THIS
 CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
 AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES HAVE BEEN
 ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR
 ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE
 SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
 SECURITIES LAWS, UNLESS SOLD PURSUANT TO: (1) RULE 144 UNDER THE SECURITIES
 ACT OF 1933, AS AMENDED, OR (2) AN OPINION OF HOLDER’S COUNSEL, IN A
 CUSTOMARY FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR
 APPLICABLE STATE SECURITIES LAWS. 

 	
  

 

          (b)          Blue
Sky. The Company shall take such action, if any, as is reasonably necessary
in order to obtain an exemption for or to qualify (i) the initial sale of the
Commitment Shares and any Purchase Shares to the Investor under this Agreement
and (ii) any subsequent resale of the Commitment Shares and any Purchase Shares
by the Investor, in each case, under applicable securities or “Blue Sky” laws
of the states of the United States in such states as is reasonably requested by
the Investor from time to time, and shall provide evidence of any such action
so taken to the Investor. 

          (c)          Listing/DTC.
The Company shall promptly secure the listing of all of the Purchase Shares and
Commitment Shares upon each national securities exchange and automated
quotation system, 

-12-

if any, upon which shares of Common Stock are then listed (subject to
official notice of issuance) and shall maintain, so long as any other shares of
Common Stock shall be so listed, such listing of all such securities from time
to time issuable under the terms of the Transaction Documents. The Company
shall maintain the Common Stock’s authorization for quotation on the Principal
Market. Neither the Company nor any of its Subsidiaries shall take any action
that would be reasonably expected to result in the delisting or suspension of
the Common Stock on the Principal Market. The Company shall promptly, and in no
event later than the following Business Day, provide to the Investor copies of
any notices it receives from the Principal Market regarding the continued
eligibility of the Common Stock for listing on such automated quotation system
or securities exchange. The Company shall pay all fees and expenses in
connection with satisfying its obligations under this Section. The Company
shall take all action necessary to ensure that its Common Stock can be
transferred electronically via the DTC FAST System. 

          (d)          Limitation
on Short Sales and Hedging Transactions. The Investor agrees that beginning
on the date of this Agreement and ending on the date of termination of this
Agreement as provided in Section 11, the Investor and its agents,
representatives and affiliates shall not in any manner whatsoever enter into or
effect, directly or indirectly, any (i) “short sale” (as such term is defined
in Section 242.200 of Regulation SHO of the Exchange Act) of the Common Stock
or any other security issued by the Company convertible into or exchangeable
for shares of Common Stock or (ii) hedging transaction, which establishes a net
short position with respect to the Common Stock or any other security issued by
the Company convertible into or exchangeable for shares of Common Stock. 

          (e)          Issuance
of Commitment Shares. Immediately upon the execution of this Agreement, the
Company shall issue to the Investor as consideration for the Investor entering
into this Agreement 574,300 shares of Common Stock (the “Initial Commitment
Shares”) and shall deliver to the Transfer Agent a letter in the form as set
forth as Exhibit E attached hereto with respect to the issuance of the
Initial Commitment Shares. In connection with each purchase of Purchase Shares
hereunder, the Company agrees to issue to the Investor a number of shares of
Common Stock (the “Additional Commitment Shares” and together with the Initial
Commitment Shares, the “Commitment Shares”) equal to the product of (x) 574,300
and (y) the Purchase Amount Fraction. The “Purchase Amount Fraction” shall mean
a fraction, the numerator of which is the Purchase Amount purchased by the
Investor with respect to such purchase of Purchase Shares and the denominator
of which is Ten Million Dollars ($10,000,000). The Additional Commitment Shares
shall be equitably adjusted for any reorganization, recapitalization, non-cash
dividend, stock split or other similar transaction subsequent to the date
hereof and prior to the termination of this Agreement. The Initial Commitment
Shares shall be issued in certificated form and shall bear the Restrictive
Legend. The Investor agrees that the Investor shall not pledge, transfer or
sell the Commitment Shares until the earlier of (a) 600 Business Days (30
Monthly Periods) from the date hereof or (b) the date on which this Agreement
has been terminated, provided, however, that such restrictions shall not apply:
(i) in connection with any transfers to or among affiliates (as defined in the
Exchange Act), or (ii) if an Event of Default has occurred and is continuing,
or any event which, after notice and/or lapse of time, would become an Event of
Default, including any failure by the Company to timely issue Purchase Shares
under this Agreement unless the Company has taken corrective action which would
cure such Event of Default. Notwithstanding the forgoing, the Investor may
transfer Commitment Shares to a third party in order to settle a sale made by
the Investor where the Investor reasonably expects the Company to deliver
additional Purchase Shares to the Investor under this Agreement so long as the
Investor maintains ownership of the amount of Commitment Shares received up to
that point by “replacing” such Commitment Shares so transferred with new
Purchase Shares when the new Purchase Shares are actually issued by the Company
to the Investor. 

          (f)          Due
Diligence. The Investor shall have the right, from time to time as the
Investor may reasonably deem appropriate, to perform reasonable due diligence
on the Company during normal business hours. The Company and its officers and
employees shall provide information and reasonably 

-13-

cooperate with the Investor in connection with any reasonable request
by the Investor related to the Investor’s due diligence of the Company. Each
party hereto agrees not to disclose any Confidential Information of the other
party to any third party and shall not use the Confidential Information for any
purpose other than in connection with, or in furtherance of, the transactions
contemplated hereby. Each party hereto acknowledges that the Confidential
Information shall remain the property of the disclosing party and agrees that
it shall take all reasonable measures to protect the secrecy of any
Confidential Information disclosed by the other party. The Company confirms
that neither it nor any other Person acting on its behalf shall provide the
Investor or its agents or counsel with any information that it believes
constitutes or might constitute material, non-public information which is not
otherwise disclosed in the Registration Statement or prospectus supplements
thereto.

          (g)          Purchase
Records. The Investor and the Company shall each maintain records showing
the remaining Available Amount at any given time and the dates and Purchase
Amounts for each purchase or shall use such other method, reasonably satisfactory
to the Investor and the Company. 

          (h)          Taxes.
The Company shall pay any and all transfer, stamp or similar taxes that may be
payable with respect to the issuance and delivery of any shares of Common Stock
to the Investor made under this Agreement. 

          (i)          No
Variable Rate Transactions. From the date hereof until the Maturity Date,
the Company shall be prohibited from effecting or entering into an agreement to
effect any issuance by the Company or any of its Subsidiaries of Common Stock
or Common Stock Equivalents for cash consideration (or a combination of units
thereof) involving a Variable Rate Transaction other than in connection with an
Exempt Issuance. “Common Stock Equivalents” means any securities of the Company
or the Subsidiaries (as defined below) which would entitle the holder thereof
to acquire at any time Common Stock, including, without limitation, any debt,
preferred stock, rights, options, warrants or other instrument that is at any
time convertible into or exercisable or exchangeable for, or otherwise entitles
the holder thereof to receive, Common Stock. “Variable Rate Transaction” means
a transaction in which the Company (i) issues or sells any debt or equity
securities that are convertible into, exchangeable or exercisable for, or
include the right to receive additional shares of Common Stock either (A) at a
conversion price, exercise price or exchange rate or other price that is based
upon and/or varies with the trading prices of or quotations for the shares of
Common Stock at any time after the initial issuance of such debt or equity
securities, or (B) with a conversion, exercise or exchange price that is
subject to being reset at some future date after the initial issuance of such
debt or equity security or upon the occurrence of specified or contingent
events directly or indirectly related to the business of the Company or the
market for the Common Stock including pursuant to “full ratchet” or “weighted
average” “anti-dilution” provisions within a Common Stock Equivalent or (ii)
enters into any agreement, including, but not limited to, an equity line of
credit, whereby the Company may sell securities at a future determined price. “Exempt
Issuance” means the issuance of (a) shares of Common Stock or options to
employees, officers, directors or vendors of the Company pursuant to any stock
or option plan duly adopted for such purpose, by a majority of the non-employee
members of the Board of Directors or a majority of the members of a committee
of non-employee directors established for such purpose, (b) securities upon the
exercise or exchange of or conversion of any Securities issued hereunder and/or
other securities exercisable or exchangeable for or convertible into shares of
Common Stock issued and outstanding on the date of this Agreement, provided
that such securities have not been amended since the date of this Agreement to
increase the number of such securities or to decrease the exercise price,
exchange price or conversion price of such securities, (c) securities issued
pursuant to acquisitions or strategic transactions approved by a majority of
the disinterested directors of the Company, which acquisitions or strategic
transactions can have a Variable Rate Transaction component, provided that any
such issuance shall only be to a Person (or to the equity holders of a Person)
which is, itself or through its subsidiaries, an operating company or an asset
in a business synergistic with the business of the Company 

-14-

and shall provide to the Company 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) private
placements and registered public offerings of debt or equity securities that
will be offered at a fixed price (provided, however, that prior to entering
into any definitive agreement for the sale of such securities, the Company
shall provide notice to the Investor (“Offering Notice”) not less than four (4)
Business Days prior to entering into any such agreement and Investor shall have
the right to participate on equivalent terms and conditions in up to 25% of such
transaction by delivering notice to the Company not later than two (2) Business
Days after receipt of the Offering Notice).

          6.          TRANSFER
AGENT INSTRUCTIONS.

          On the
Commencement Date, the Company shall cause any restrictive legend on the
Initial Commitment Shares to be removed and all of the Purchase Shares and Additional Commitment Shares, to
be issued under this Agreement shall be issued without any restrictive legend
unless the Investor expressly consents otherwise. The Company shall issue
irrevocable instructions to the Transfer Agent, and any subsequent transfer
agent, to issue Purchase Shares in the name of the Investor for the Purchase
Shares (the “Irrevocable Transfer Agent Instructions”). The Company warrants to
the Investor that no instruction other than the Irrevocable Transfer Agent
Instructions referred to in this Section 6, will be given by the Company to the
Transfer Agent with respect to the Purchase Shares and that the Commitment
Shares and the Purchase Shares shall otherwise be freely transferable on the
books and records of the Company as and to the extent provided in this
Agreement.

	
  

 	
  

 	
  

 
	
  

 	
 7.

 	
 CONDITIONS TO THE COMPANY’S RIGHT TO
 COMMENCE SALES OF SHARES OF COMMON STOCK.

 

          The right
of the Company hereunder to commence sales of the Purchase Shares is subject to
the satisfaction of each of the following conditions:

          (a)          The
Investor shall have executed each of the Transaction Documents and delivered
the same to the Company; and

          (b)          A
registration statement covering the sale of all of the Commitment Shares and Purchase Shares shall have been
declared effective under the Securities Act by the SEC and no stop order with
respect to the registration statement shall be pending or threatened by the
SEC. 

          8.          CONDITIONS
TO THE INVESTOR’S OBLIGATION TO PURCHASE SHARES OF COMMON STOCK.

          The
obligation of the Investor to buy Purchase Shares under this Agreement is
subject to the satisfaction of each of the following conditions and once such
conditions have been initially satisfied, there shall not be any ongoing
obligation to satisfy such conditions after the Commencement has occurred:

          (a)          The
Company shall have executed each of the Transaction Documents and delivered the
same to the Investor;

-15-

          (b)          The
Company shall have issued to the Investor the Initial Commitment Shares without
restrictive legend; 

          (c)          The
Common Stock shall be authorized for quotation on the Principal Market, trading
shall have occurred on the Principal Market for at least 10 Business Days
during the 20 Business Days immediately prior to the Commencement Date and
trading in the Common Stock shall not have been within the last 365 days
suspended by the SEC and the Purchase Shares and
Commitment Shares shall be approved for quotation upon the Principal Market;

          (d)          The
Investor shall have received the opinions of the Company’s legal counsel dated
as of the Commencement Date substantially in the form of Exhibit A attached
hereto;

          (e)          The
representations and warranties of the Company shall be true and correct in all
material respects (except to the extent that any of such representations and
warranties is already qualified as to materiality in Section 4 above, in which
case, such representations and warranties shall be true and correct without
further qualification) as of the date when made and as of the Commencement Date
as though made at that time (except for representations and warranties that
speak as of a specific date) and the Company shall have performed, satisfied
and complied with the covenants, agreements and conditions required by the
Transaction Documents to be performed, satisfied or complied with by the
Company at or prior to the Commencement Date. The Investor shall have received
a certificate, executed by the CEO, President or CFO of the Company, dated as
of the Commencement Date, to the foregoing effect in the form attached hereto
as Exhibit
B;

          (f)          The
Board of Directors of the Company shall have adopted resolutions in the form
attached hereto as Exhibit C which shall be in full force
and effect without any amendment or supplement thereto as of the Commencement
Date; 

          (g)          As
of the Commencement Date, the Company shall have reserved out of its authorized
and unissued Common Stock, (A)solely for the purpose of effecting
purchases of Purchase Shares hereunder, 20,000,000 shares of Common Stock and
(B) as Additional Commitment Shares in accordance with Section 5(e) hereof,
574,300 shares of Common Stock;

          (h)          Irrevocable
Transfer Agent instructions shall have been delivered to and acknowledged in
writing by the Company and the Company’s Transfer Agent;

          (i)          The
Company shall have delivered to the Investor a certificate evidencing the
incorporation and good standing of the Company in the State of Delaware issued
by the Secretary of State of the State of Delaware as of a date within ten (10)
Business Days of the Commencement Date;

          
(j)          The Company
shall have delivered to the Investor a certified copy of the Certificate of
Incorporation as certified by the Secretary of State of the State of Delaware
within ten (10) Business Days of the Commencement Date;

          
(k)          The Company
shall have delivered to the Investor a secretary’s certificate executed by the
Secretary of the Company, dated as of the Commencement Date, in the form
attached hereto as Exhibit D;

          
(l)          A registration
statement covering the sale of all of the Purchase Shares and Commitment Shares shall have been declared
effective under the Securities Act by the SEC and no stop order with respect to
the registration statement shall be pending or threatened by the SEC. The
Company shall have prepared and delivered to the Investor a final and complete
form of prospectus, dated and current as of the 

-16-

Commencement Date, to be used by the Investor in connection with any
sales of any Purchase Shares or Commitment Shares, and to be filed by the
Company one Business Day after the Commencement Date. The Company shall have
made all filings under all applicable federal and state securities laws
necessary to consummate the issuance of the Commitment Shares and Purchase
Shares pursuant to this Agreement in compliance with such laws;

          (m)          No
Event of Default (as defined in Section 10) has occurred, or any event which,
after notice and/or lapse of time, would become an Event of Default has
occurred; and

(n)      On or
prior to the Commencement Date, the Company shall take all necessary action, if
any, and such actions as reasonably requested by the Investor, in order to
render inapplicable any control share acquisition, business combination,
shareholder rights plan or poison pill (including any distribution under a
rights agreement) or other similar anti-takeover provision under the
Certificate of Incorporation or the laws of the state of its incorporation which
is or could become applicable to the Investor as a result of the transactions
contemplated by this Agreement, including, without limitation, the Company’s
issuance of the Securities and the Commitment Shares and the Investor’s
ownership of the Securities and the Commitment Shares.

          9.
          INDEMNIFICATION.

          In
consideration of the Investor’s execution and delivery of the Transaction
Documents and acquiring the Securities hereunder and in addition to all of the
Company’s other obligations under the Transaction Documents, the Company shall
defend, protect, indemnify and hold harmless the Investor and all of its
affiliates, shareholders, officers, directors, employees and direct or indirect
investors and any of the foregoing person’s agents or other representatives
(including, without limitation, those retained in connection with the
transactions contemplated by this Agreement) (collectively, the “Indemnitees”)
from and against any and all actions, causes of action, suits, claims, losses,
costs, penalties, fees, liabilities and damages, and expenses in connection
therewith (irrespective of whether any such Indemnitee is a party to the action
for which indemnification hereunder is sought), and including reasonable
attorneys’ fees and disbursements (the “Indemnified Liabilities”), incurred by
any Indemnitee as a result of, or arising out of, or relating to (a) any
misrepresentation or breach of any representation or warranty made by the
Company in the Transaction Documents or any other certificate, instrument or
document contemplated hereby or thereby, (b) any breach of any covenant,
agreement or obligation of the Company contained in the Transaction Documents
or any other certificate, instrument or document contemplated hereby or thereby,
or (c) any cause of action, suit or claim brought or made against such
Indemnitee and arising out of or resulting from the execution, delivery,
performance or enforcement of the Transaction Documents or any other
certificate, instrument or document contemplated hereby or thereby, other than
with respect to Indemnified Liabilities which directly and primarily result
from the gross negligence or willful misconduct of the Indemnitee. To the
extent that the foregoing undertaking by the Company may be unenforceable for
any reason, the Company shall make the maximum contribution to the payment and
satisfaction of each of the Indemnified Liabilities which is permissible under
applicable law. Payment under this indemnification shall be made within thirty
(30) days from the date Investor makes written request for it. A certificate
containing reasonable detail as to the amount of such indemnification submitted
to the Company by Investor shall be conclusive evidence, absent manifest error,
of the amount due from the Company to Investor.

-17-

          10.
          EVENTS OF
DEFAULT. 

          An “Event
of Default” shall be deemed to have occurred at any time as any of the
following events occurs:

          (a)          the
effectiveness of a registration statement registering the Purchase Shares, or
Additional Commitment Shares lapses for any reason (including, without
limitation, the issuance of a stop order) or is unavailable to the Investor for
sale of any or all of the Purchase Shares, or Additional Commitment Shares
(“Registrable Securities”), and such lapse or unavailability continues for a
period of ten (10) consecutive Business Days or for more than an aggregate of
thirty (30) Business Days in any 365-day period;

          (b)          the
suspension from trading or failure of the Common Stock to be quoted on the
Principal Market for a period of three (3) consecutive Business Days;

          (c)          in
the event the Company’s Principal Market is not the OTC Bulletin Board, the
delisting of the Company’s Common Stock from the Principal Market, provided,
however, that the Common Stock is not immediately thereafter trading on the New
York Stock Exchange, the Nasdaq Global
Market, the Nasdaq Global Select Market, the Nasdaq Capital Market, or NYSE
Amex;

          (d)          the
failure for any reason by the Transfer Agent to issue Purchase Shares to the
Investor within five (5) Business Days after the applicable Purchase Date which
the Investor is entitled to receive;

          (e)          the
Company breaches any representation, warranty, covenant or other term or
condition under any Transaction Document if such breach could have a Material
Adverse Effect and except, in the case of a breach of a covenant which is
reasonably curable, only if such breach continues for a period of at least five
(5) Business Days;

          (f)          if
any Person commences a proceeding against the Company pursuant to or within the
meaning of any Bankruptcy Law; 

          (g)          if
the Company pursuant to or within the meaning of any Bankruptcy Law: (A)
commences a voluntary case, (B) consents to the entry of an order for relief
against it in an involuntary case, (C) consents to the appointment of a
Custodian of it or for all or substantially all of its property, (D) makes a
general assignment for the benefit of its creditors or is generally unable to
pay its debts as the same become due; 

          (h)          a
court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that (A) is for relief against the Company in an involuntary case, (B)
appoints a Custodian of the Company or for all or substantially all of its
property, or (C) orders the liquidation of the Company or any Subsidiary;

          (i)          If
at any time the Company is not eligible to transfer its Common Stock
electronically via the DTC FAST System; or

          (j)          a
material adverse change occurs in the Company, its business, financial
condition, operations or prospects.

-18-

In addition to any other rights and remedies under applicable law and
this Agreement, including the Investor termination rights under Section 11
hereof, so long as an Event of Default has occurred and is continuing, or if
any event which, after notice and/or lapse of time, would become an Event of Default,
has occurred and is continuing, or so long as the Purchase Price is below the
Floor Price, the Investor shall not be permitted or obligated to purchase any
shares of Common Stock under this Agreement. If pursuant to or within the
meaning of any Bankruptcy Law, the Company commences a voluntary case or any
Person commences a proceeding against the Company, a Custodian is appointed for
the Company or for all or substantially all of its property, or the Company
makes a general assignment for the benefit of its creditors, (any of which
would be an Event of Default as described in Sections 10(f), 10(g) and 10(h)hereof) this Agreement shall automatically
terminate without any liability or payment to the Company and without further
action or notice by any Person. No such termination of this Agreement under
Section 11(a) or 11(d) shall affect the Company’s or the Investor’s obligations
under this Agreement with respect to pending purchases and the Company and the
Investor shall complete their respective obligations with respect to any
pending purchases under this Agreement.

          11.          TERMINATION

          This
Agreement may be terminated only as follows: 

          (a)          If
pursuant to or within the meaning of any Bankruptcy Law, the Company commences
a voluntary case or any Person commences a proceeding against the Company, a
Custodian is appointed for the Company or for all or substantially all of its
property, or the Company makes a general assignment for the benefit of its
creditors, (any of which would be an Event of Default as described in Sections
10(f), 10(g) and 10(h) hereof) this Agreement shall automatically terminate
without any liability or payment to the Company and without further action or
notice by any Person. No such termination of this Agreement under this Section
11(a) shall affect the Company’s or the Investor’s obligations under this
Agreement with respect to pending purchases and the Company and the Investor
shall complete their respective obligations with respect to any pending
purchases under this Agreement. 

          (b)          In
the event that the Commencement shall not have occurred, the Company shall have
the option to terminate this Agreement for any reason or for no reason without
any liability whatsoever of any party to any other party under this Agreement.

          (c)          In
the event that the Commencement shall not have occurred on or before July 15,
2011, due to the failure to satisfy the conditions set forth in Sections 7 and
8 above with respect to the Commencement, the non-breaching party shall have
the option to terminate this Agreement at the close of business on such date or
thereafter without liability of any party to any other party. 

          (d)          
At any time after the Commencement Date, the Company shall have the option to
terminate this Agreement for any reason or for no reason by delivering notice
(a “Company Termination Notice”) to the Investor electing to terminate this
Agreement without any liability whatsoever of any party to any other party
under this Agreement. The Company Termination Notice shall not be effective
until one (1) Business Day after it has been received by the Investor. No such
termination of this Agreement under this Section 11(d) shall affect the
Company’s or the Investor’s obligations under this Agreement with respect to
pending purchases and the Company and the Investor shall complete their
respective obligations with respect to any pending purchases under this
Agreement. 

          (e)          This
Agreement shall automatically terminate on the date that the Company sells and
the Investor purchases the full Available Amount as provided herein, without
any action or notice on the part of any party and without any liability
whatsoever of any party to any other party under this Agreement.

-19-

          (f)          If
by the Maturity Date for any reason or for no reason the full Available Amount
under this Agreement has not been purchased as provided for in Section 2 of
this Agreement, this Agreement shall automatically terminate on the Maturity
Date, without any action or notice on the part of any party and without any
liability whatsoever of any party to any other party under this Agreement. 

Except as set forth in Sections 11(a) (in respect of an Event of
Default under Sections 10(f), 10(g) and 10(h)) and 11(f), any termination of
this Agreement pursuant to this Section 11 shall be effected by written notice
from the Company to the Investor, or the Investor to the Company, as the case
may be, setting forth the basis for the termination hereof. The representations
and warranties and covenants of the Company and the Investor contained in
Sections 3, 4, 5, and 6 hereof, the indemnification provisions set forth in
Section 9 hereof and the agreements and covenants set forth in Sections 11 and
12, shall survive the Commencement and any termination of this Agreement. No
termination of this Agreement shall affect the Company’s or the Investor’s
rights or obligations (i) under the Registration Rights Agreement which shall
survive any such termination or (ii) under this Agreement with respect to
pending purchases and the Company and the Investor shall complete their
respective obligations with respect to any pending purchases under this
Agreement.

          12.          MISCELLANEOUS.

          (a)          Governing
Law; Jurisdiction; Jury Trial. The corporate laws of the State of Delaware
shall govern all issues concerning the relative rights of the Company and its
shareholders. All other questions concerning the construction, validity,
enforcement and interpretation of this Agreement and the other Transaction
Documents shall be governed by the internal laws of the State of Illinois,
without giving effect to any choice of law or conflict of law provision or rule
(whether of the State of Illinois or any other jurisdictions) that would cause
the application of the laws of any jurisdictions other than the State of
Illinois. Each party hereby irrevocably submits to the exclusive jurisdiction
of the state and federal courts sitting in the City of Chicago, for the
adjudication of any dispute hereunder or under the other Transaction Documents
or in connection herewith or therewith, or with any transaction contemplated
hereby or discussed herein, and hereby irrevocably waives, and agrees not to
assert in any suit, action or proceeding, any claim that it is not personally
subject to the jurisdiction of any such court, that such suit, action or
proceeding is brought in an inconvenient forum or that the venue of such suit,
action or proceeding is improper. 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 to such party at the address for
such notices to it under this Agreement and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Nothing
contained herein shall be deemed to limit in any way any right to serve process
in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY
HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY
DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR
ANY TRANSACTION CONTEMPLATED HEREBY.

          (b)          Counterparts.
This Agreement may be executed in two or more identical counterparts, all of
which 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; provided that a facsimile signature or signature delivered by e-mail in
a “.pdf” format data file shall be considered due execution and shall be
binding upon the signatory thereto with the same force and effect as if the
signature were an original, not a facsimile signature or a signature in a
“.pdf” format data file.

-20-

          (c)          Headings.
The headings of this Agreement are for convenience of reference and shall not
form part of, or affect the interpretation of, this Agreement.

          (d)          Severability.
If any provision of this Agreement shall be invalid or unenforceable in any
jurisdiction, such invalidity or unenforceability shall not affect the validity
or enforceability of the remainder of this Agreement in that jurisdiction or
the validity or enforceability of any provision of this Agreement in any other
jurisdiction.

          (e)          Entire
Agreement. With the exception of the Mutual Nondisclosure Agreement between
the parties dated as of October 29, 2010, this Agreement supersedes all other
prior oral or written agreements between the Investor, the Company, their
affiliates and persons acting on their behalf with respect to the matters
discussed herein, and this Agreement, the other Transaction Documents and the
instruments referenced herein contain the entire understanding of the parties
with respect to the matters covered herein and therein and, except as
specifically set forth herein or therein, neither the Company nor the Investor
makes any representation, warranty, covenant or undertaking with respect to
such matters. The Company acknowledges and agrees that is has not relied on, in
any manner whatsoever, any representations or statements, written or oral,
other than as expressly set forth in this Agreement.

          (f)          Notices.
Any notices, consents or other communications required or permitted to be given
under the terms of this Agreement must be in writing and will be deemed to have
been delivered: (i) upon receipt when delivered personally; (ii) upon receipt
when sent by facsimile (provided confirmation of transmission is mechanically
or electronically generated and kept on file by the sending party); or (iii)
one Business Day after deposit with a nationally recognized overnight delivery
service, in each case properly addressed to the party to receive the same. The
addresses and facsimile numbers for such communications shall be:

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 If to the
 Company:

 
	
  

 	
  

 	
 Green Earth
 Technologies, Inc.

 
	
  

 	
  

 	
 10 Bank
 Street, Suite 680

 
	
  

 	
  

 	
 White
 Plains, NY 10606

 
	
  

 	
  

 	
 Telephone:

 	
 877-438-4761

 
	
  

 	
  

 	
 Facsimile:

 	
 877-438-3293

 
	
  

 	
  

 	
 Attention:

 	
 Greg Adams

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 With a copy
 to:

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Morse,
 Zelnick, Rose &Lander, LLP

 
	
  

 	
  

 	
 405 Park
 Avenue, Suite 1401

 
	
  

 	
  

 	
 New York, NY
 10022

 
	
  

 	
  

 	
 Telephone:

 	
 877-438-4761

 
	
  

 	
  

 	
 Facsimile:

 	
 877-438-3293

 
	
  

 	
  

 	
 Attention:

 	
 Joel J.
 Goldschmidt, Esq.

 
	
  

 	
 If to the
 Investor:

 	
  

 
	
  

 	
  

 	
 Lincoln Park
 Capital Fund, LLC

 
	
  

 	
  

 	
 440 North
 Wells, Suite 620

 
	
  

 	
  

 	
 Chicago, IL
 60654

 
	
  

 	
  

 	
 Telephone:

 	
 312-822-9300

 
	
  

 	
  

 	
 Facsimile:

 	
 312-822-9301

 
	
  

 	
  

 	
 Attention:

 	
 Josh
 Scheinfeld/Jonathan Cope

 
	
  

 	
  

 	
  

 	
  

 

-21-

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 If to the
 Transfer Agent:

 
	
  

 	
  

 	
 Issuer
 Direct Corporation

 
	
  

 	
  

 	
 500
 Perimeter Park Drive, Suite D 

 
	
  

 	
  

 	
 Morrisville,
 NC 27560

 
	
  

 	
  

 	
 Telephone:

 	
 919-481-4000
 x122

 
	
  

 	
  

 	
 Facsimile:

 	
 202-521-3505

 
	
  

 	
  

 	
 Attention:

 	
 Eddie Tobler

 

or at such other address and/or facsimile number and/or to the
attention of such other person as the recipient party has specified by written
notice given to each other party three (3) Business Days prior to the
effectiveness of such change. Written confirmation of receipt (A) given by the
recipient of such notice, consent or other communication, (B) mechanically or
electronically generated by the sender’s facsimile machine containing the time,
date, and recipient facsimile number or (C) provided by a nationally recognized
overnight delivery service, shall be rebuttable evidence of personal service,
receipt by facsimile or receipt from a nationally recognized overnight delivery
service in accordance with clause (i), (ii) or (iii) above, respectively.

          (g)          Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit
of the parties and their respective successors and assigns. The Company shall
not assign this Agreement or any rights or obligations hereunder without the
prior written consent of the Investor, including by merger or consolidation.
The Investor may not assign its rights or obligations under this Agreement.

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

          (i)          Publicity.
The Investor shall have the right to approve before issuance any press release,
SEC filing or any other public disclosure made by or on behalf of the Company
whatsoever with respect to, in any manner, the Investor, its purchases
hereunder or any aspect of this Agreement or the transactions contemplated
hereby; provided, however, that the
Company shall be entitled, without the prior approval of the Investor, to make
any press release or other public disclosure (including any filings with the
SEC) with respect to such transactions as is required by applicable law and
regulations so long as the
Company and its counsel consult with the Investor in connection with any such
press release or other public disclosure at least two (2) Business Days prior
to its release. The Investor must be provided with a copy thereof at least two
(2) Business Days prior to any release or use by the Company thereof. The
Company agrees and acknowledges that its failure to fully comply with this
provision constitutes a material adverse effect on its ability to perform its
obligations under this Agreement. 

          (j)          Further
Assurances. Each party shall do and perform, or cause to be done and
performed, all such further acts and things, and shall execute and deliver all
such other agreements, certificates, instruments and documents, as the other
party may reasonably request in order to carry out the intent and accomplish
the purposes of this Agreement and the consummation of the transactions
contemplated hereby.

          (k)          No
Financial Advisor, Placement Agent, Broker or Finder. The Company
represents and warrants to the Investor that it has not engaged any financial
advisor, placement agent, broker or finder in connection with the transactions
contemplated hereby. The Investor represents and warrants to the Company that
it has not engaged any financial advisor, placement agent, broker or finder in
connection with the transactions contemplated hereby. The Company shall be
responsible for the payment of any fees or commissions, if any, of any
financial advisor, placement agent, broker or finder relating to or arising out
of the transactions contemplated hereby. The Company shall pay, and hold the 

-22-

Investor harmless against, any liability, loss or expense (including,
without limitation, attorneys’ fees and out of pocket expenses) arising in
connection with any such claim.

          (l)          No
Strict Construction. 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.

          (m)        Remedies,
Other Obligations, Breaches and Injunctive Relief. The Investor’s remedies
provided in this Agreement shall be cumulative and in addition to all other
remedies available to the Investor under this Agreement, at law or in equity
(including a decree of specific performance and/or other injunctive relief), no
remedy of the Investor contained herein shall be deemed a waiver of compliance
with the provisions giving rise to such remedy and nothing herein shall limit
the Investor’s right to pursue actual damages for any failure by the Company to
comply with the terms of this Agreement. The Company acknowledges that a breach
by it of its obligations hereunder will cause irreparable harm to the Investor
and that the remedy at law for any such breach may be inadequate. The Company
therefore agrees that, in the event of any such breach or threatened breach,
the Investor shall be entitled, in addition to all other available remedies, to
an injunction restraining any breach, without the necessity of showing economic
loss and without any bond or other security being required.

          (n)          Enforcement
Costs. If: (i) this Agreement is placed by the Investor in the hands of an
attorney for enforcement or is enforced by the Investor through any legal
proceeding; or (ii) an attorney is retained to represent the Investor in any
bankruptcy, reorganization, receivership or other proceedings affecting
creditors’ rights and involving a claim under this Agreement; or (iii) an
attorney is retained to represent the Investor in any other proceedings
whatsoever in connection with this Agreement, then the Company shall pay to the
Investor, as incurred by the Investor, all reasonable costs and expenses
including attorneys’ fees incurred in connection therewith, in addition to all
other amounts due hereunder.

          (o)          Failure
or Indulgence Not Waiver. No failure or delay in the exercise of any power,
right or privilege hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise of any such power, right or privilege preclude other
or further exercise thereof or of any other right, power or privilege.

*     *     *     *     *

-23-

          IN
WITNESS WHEREOF, the Investor and the Company have
caused this Purchase Agreement to be duly executed as of the date first written
above.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 THE COMPANY:

 
	
  

 	
  

 
	
  

 	
 GREEN EARTH TECHNOLOGIES, INC.

 
	
  

 	
  

 
	
  

 	
 By: 

 	
     /s/ Greg D. Adams

 
	
  

 	
  

 	 

 	
  

 
	
  

 	
 Name: Greg
 D. Adams

 
	
  

 	
 Title: Chief
 Operating Officer and CFO

 
	
  

 	
  

 
	
  

 	
 INVESTOR:

 
	
  

 	
  

 
	
  

 	
 LINCOLN PARK CAPITAL FUND, LLC

 
	
  

 	
 BY: LINCOLN PARK CAPITAL, LLC

 
	
  

 	
 BY: ROCKLEDGE
 CAPITAL CORPORATION

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By

 	
 :    /s/ Josh Scheinfeld

 
	
  

 	
  

 	 

 	
  

 
	
  

 	
 Name: Josh
 Scheinfeld

 
	
  

 	
 Title:
 President

 

-24-

SCHEDULES

	
  

 	
  

 
	
 Schedule
 4(a)

 	
 Subsidiaries

 
	
 Schedule
 4(c)

 	
 Capitalization

 
	
 Schedule
 4(e)

 	
 Conflicts

 
	
 Schedule
 4(f)

 	
 Exchange Act
 Filings

 
	
 Schedule
 4(g)

 	
 Material
 Changes

 
	
 Schedule
 4(h)

 	
 Litigation

 
	
 Schedule
 4(k)

 	
 Intellectual
 Property

 
	
  

 	
  

 
	
 EXHIBITS

 
	
  

 	
  

 
	
 Exhibit A

 	
 Form of
 Company Counsel Opinion

 
	
 Exhibit B

 	
 Form of
 Officer’s Certificate

 
	
 Exhibit C

 	
 Form of
 Resolutions of Board of Directors of the Company

 
	
 Exhibit D

 	
 Form of
 Secretary’s Certificate

 
	
 Exhibit E

 	
 Form of
 Letter to Transfer Agent

 

DISCLOSURE
SCHEDULES

Schedule 4(a) – Subsidiaries

Schedule 4(c) - Capitalization

Schedule 4(e) - No Conflicts

Schedule 4(f) - Exchange Act Filings

Schedule 4(g) - Absence of Certain Changes

Schedule 4(h) - Litigation

Schedule 4(k) - Intellectual Property Rights

DISCLOSURE SCHEDULES

Schedule 4(a) – Subsidiaries

As of the date of
the Agreement the Company has one wholly-owned subsidiary, GET Manufacturing, Inc., a Delaware corporation incorporated on June
3, 2008. We do not own equity interests in any other entity.

Schedule 4(c) – Capitalization

The authorized capital stock of the Company is 300,000,000 shares
of common stock, of which 138,280,796 were issued and outstanding as of March 1, 2011. In addition, the Company has also reserved
the following shares of common stock for issuance:

·        40,000,000
  shares for issuance under the Company’s 2008 Employee Stock
Award and Incentive Plan, as amended (the “2008 Plan”), adopted by
the Company’s board of Directors and approved
by the Company’s shareholders in August 2008. As of March 1, 2011, options
covering 24,658,750 shares of Common Stock have been granted and are outstanding
under the plan. These options have a weighted exercise price of $0.39 per share.
Under the 2008 Plan, the Company can grant options, shares of restricted stock,
stock appreciation rights and all other forms of equity incentive compensation
to its directors, employees and consultants.

·        
7,689,722 shares for issuance upon exercise of warrants outstanding as of March 1, 2011. These
warrants have a weighted average exercise price of $0.28.

Schedule 4(e) - No Conflicts

Schedule 4(f) - Exchange Act Filings

Schedule 4(g) - Absence of Certain Changes

Schedule 4(h) – Litigation

On November 20, 2009, Mathew Zuckerman, the Company’s co-founder
and a former director and executive officer, and other entities that he either controls or in which he claims a beneficial interest
(collectively, the “Plaintiffs”) commenced an action against the Company in the Superior Court of California, County
of Los Angeles.  On or about February 19, 2010, the Company successfully had the action removed to the United States District
Court for the Central District of California (Case No. CV 10-1240 PA (FFMx)).  On June 16, 2010, the Company filed its amended counterclaims
with the federal district court.  

On December 6, 2010 Plaintiffs filed a motion for partial
Summary Judgment.  By order dated January 10, 2011, the Court (i) denied Plaintiffs’ Motion
for Summary Judgment with respect to Plaintiffs’ claims 

and (ii) partially denied Plaintiffs’ motion
  for summary judgment with respect to the Company’s counterclaims.  The Court denied Plaintiffs’ motion to
  dismiss the Company’s counterclaims for fraud, breach of fiduciary duty, breach of  Mr. Zuckerman’s
  employment agreement with the Company, and corporate waste.  As of January 3, 2011, the discovery stage of
  the proceedings is completed.  The trial is scheduled to begin March 15, 2011.    

 Although the Company believes that Plaintiffs’ claims are
without merit and that it will prevail on its remaining counterclaims, at this time, the Company is not in
a position to predict or assess the likely outcome of these proceedings.  Accordingly, the Company has not reserved
for any future loss that may arise as a result of an adverse outcome in this litigation.

There have been no other material developments in the legal proceedings
or the December 2009 SEC subpoena previously disclosed in the Company’s Exchange Act Reports and there are no additional
legal proceedings to report.

Schedule 4(k) - Intellectual Property Rights

          The Company own and/or license all of the intellectual
property that is necessary for the conduct of our business. These include the following:

	The Company has developed its own formulations for motor oil, 2-cycle oil, 4-cycle oil and
bar and chain lubricants.
	The Company purchases its TC-3W marine engine oil from an additive supplier.
	The Company has exclusive and non-exclusive rights to market, distribute and sell Inventek
Products, which make up the bulk of our cleaning products and its surface washing agent.

          In addition, the following marks are registered
to the Company in the United States Patent and Trademark Office and have ten-year renewable terms:

·                
G-OIL®, registration effective April 21, 2009; and

 

·                
SAVE THE EARTH– SACRIFICE NOTHING®, G OIL Design® and
G.E.T. GREEN! ®, registrations effective April 28, 2009.

          Also the Company currently uses the following
trademarks: G-MARINETM, G-FUELTM, G-GLASSTM and G-CLEANTM. The Company plans to file trademark and trade name
applications with the U.S. Patent and Trademark office with respect to these and additional G-brands that they have developed or
may develop in the future.

EXHIBIT A

FORM OF COMPANY COUNSEL OPINION

          Capitalized
terms used herein but not defined herein, have the meaning set forth in the
Purchase Agreement. Based on the foregoing, and subject to the assumptions and
qualifications set forth herein, we are of the opinion that: 

                    1.     The
Company is a corporation existing and in good standing under the laws of the
State of Delaware. 

                    2.     The
Company has the corporate power to execute and deliver, and perform its obligations
under, each Transaction Document to which it is a party. The Company has the
corporate power to conduct its business as, to the best of our knowledge, it is
now conducted, and to own and use the properties owned and used by it. 

                    3.     The
execution, delivery and performance by the Company of the Transaction Documents
to which it is a party have been duly authorized by all necessary corporate
action on the part of the Company. The execution and delivery of the
Transaction Documents by the Company, the performance of the obligations of the
Company thereunder and the consummation by it of the transactions contemplated
therein have been duly authorized and approved by the Company’s Board of
Directors and no further consent, approval or authorization of the Company, its
Board of Directors or its stockholders is required. The Transaction Documents
to which the Company is a party have been duly executed and delivered by the
Company and are the valid and binding obligations of the Company, enforceable
against the Company in accordance with their terms except as such
enforceability may be limited by general principles of equity or applicable
bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws
relating to, or affecting creditor’s rights and remedies. 

                    4.     The
execution, delivery and performance by the Company of the Transaction
Documents, the consummation by the Company of the transactions contemplated
thereby including the offering, sale and issuance of the Commitment Shares, and
the Purchase Shares in accordance with the terms and conditions of the Purchase
Agreement, and fulfillment and compliance with terms of the Transaction
Documents, does not and shall not: (i) conflict with, constitute a breach of or
default (or an event which, with the giving of notice or lapse of time or both,
constitutes or could constitute a breach or a default), under (a) the
Certificate of Incorporation or the Bylaws of the Company, (b) any material
agreement, note, lease, mortgage, deed or other material instrument to which to
our knowledge the Company is a party or by which the Company or any of its
assets are bound, (ii) result in any violation of any statute, law, rule or
regulation applicable to the Company, or (iii) to our knowledge, violate any
order, writ, injunction or decree applicable to the Company or any of its
subsidiaries. 

                    5.     The
issuance of the Purchase Shares, and Commitment Shares pursuant to the terms
and conditions of the Transaction Documents has been duly authorized and the
Initial Commitment Shares are validly issued, fully paid and non-assessable, to
our knowledge, free of all taxes, liens, charges, restrictions, rights of first
refusal and preemptive rights. _______ shares of Common Stock have been
properly reserved for issuance under the Purchase Agreement. When issued and
paid for in accordance with the Purchase Agreement, the Purchase Shares shall
be validly issued, fully paid and non-assessable, to our knowledge, free of all
taxes, liens, charges, restrictions, rights of first refusal and preemptive
rights. 574,300 shares of Common Stock have been properly reserved for issuance
as Additional Commitment Shares under the Purchase Agreement. When issued in
accordance with the Purchase Agreement, the Additional Commitment Shares shall
be validly issued, fully paid and non-assessable, to our knowledge, free of all
taxes, liens, charges, restrictions, rights of first refusal and preemptive
rights. To our 

knowledge, the execution and delivery of the Registration Rights
Agreement do not, and the performance by the Company of its obligations
thereunder shall not, give rise to any rights of any other person for the
registration under the Securities Act of any shares of Common Stock or other
securities of the Company which have not been waived. 

                    6.     As
of the date hereof, the authorized capital stock of the Company consists of
_______ shares of common stock, par value $0.001 per share, of which to our
knowledge __________ shares are issued and outstanding. Except as set forth on
Schedule 4(c) of the Purchase Agreement, to our knowledge, there are no
outstanding shares of capital stock or other securities convertible into or
exchangeable or exercisable for shares of the capital stock of the Company. 

                    7.     Assuming
the accuracy of the representations and your compliance with the covenants made
by you in the Transaction Documents, the offering, sale and issuance of the
Initial Commitment Shares to you pursuant to the Transaction Documents is
exempt from registration under the Securities Act and the securities laws and
regulations of the State of Delaware. 

                    8.     Other
than that which has been obtained and completed prior to the date hereof, no
authorization, approval, consent, filing or other order of any federal or state
governmental body, regulatory agency, or stock exchange or market, or any
court, or, to our knowledge, any third party is required to be obtained by the
Company to enter into and perform its obligations under the Transaction
Documents or for the Company to issue and sell the Purchase Shares as
contemplated by the Transaction Documents. 

                    9.     The
Common Stock is registered pursuant to Section 12(g) of the Exchange Act. To
our knowledge, since one year preceding the date of the Purchase Agreement, the
Company has been in compliance with the reporting requirements of the Exchange
Act applicable to it. To our knowledge, since one year preceding the date of
the Purchase Agreement, the Company has not received any written notice from
the Principal Market stating that the Company has not been in compliance with
any of the rules and regulations (including the requirements for continued listing)
of the Principal Market. 

          We further
advise you that to our knowledge, except as disclosed on Schedule 4(h) in the
Purchase Agreement, there is no action, suit, proceeding, inquiry or
investigation before or by any court, public board or body, any governmental
agency, any stock exchange or market, or self-regulatory organization, which
has been threatened in writing or which is currently pending against the
Company, any of its subsidiaries, any officers or directors of the Company or
any of its subsidiaries or any of the properties of the Company or any of its
subsidiaries. 

          In
addition, we have participated in the preparation of the Registration Statement
(SEC File #________) covering the sale of the Purchase Shares, the Additional
Commitment Shares including the prospectus dated ____________, contained
therein and in conferences with officers and other representatives of the
Company (including the Company’s independent auditors) during which the
contents of the Registration Statement and related matters were discussed and
reviewed and, although we are not passing upon and do not assume any
responsibility for the accuracy, completeness or fairness of the statements
contained in the Registration Statement, on the basis of the information that
was developed in the course of the performance of the services referred to
above, considered in the light of our understanding of the applicable law,
nothing came to our attention that caused us to believe that the Registration
Statement (other than the financial statements and schedules and the other
financial and statistical data included therein, as to which we express no
belief), as of their dates, contained any untrue statement of a material fact
or omitted to state any material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading. 

EXHIBIT B

FORM OF OFFICER’S CERTIFICATE

          This Officer’s Certificate (“Certificate”)
is being delivered pursuant to Section 8(e) of that certain Purchase Agreement
dated as of _________, (“Purchase Agreement”),
by and between GREEN EARTH TECHNOLOGIES,
INC., a Delaware corporation (the “Company”),
and LINCOLN PARK CAPITAL FUND, LLC
(the “Investor”). Terms used
herein and not otherwise defined shall have the meanings ascribed to them in
the Purchase Agreement. 

          The
undersigned, ___________, ______________ of the Company, hereby certifies as
follows: 

	
  

 	
  

 	
  

 
	
  

 	
           1.          I
 am the _____________ of the Company and make the statements contained in
 this Certificate; 

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
           2.          The
 representations and warranties of the Company are true and correct in all
 material respects (except to the extent that any of such representations and
 warranties is already qualified as to materiality in Section 4 of the
 Purchase Agreement, in which case, such representations and warranties are
 true and correct without further qualification) as of the date when made and
 as of the Commencement Date as though made at that time (except for
 representations and warranties that speak as of a specific date); 

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
           3.          The
 Company has performed, satisfied and complied in all material respects with
 covenants, agreements and conditions required by the Transaction Documents to
 be performed, satisfied or complied with by the Company at or prior to the
 Commencement Date. 

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
           4.          The
 Company has not taken any steps, and does not currently expect to take any
 steps, to seek protection pursuant to any Bankruptcy Law nor does the Company
 or any of its Subsidiaries have any knowledge or reason to believe that its
 creditors intend to initiate involuntary bankruptcy or insolvency
 proceedings. The Company is financially solvent and is generally able to pay
 its debts as they become due. 

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 IN WITNESS WHEREOF, I have hereunder signed my name on this ___ day
 of ___________.

 	
  

 

	
  

 	
  

 	
  

 
	
  

 	 

 	
  

 
	
  

 	
   Name: 

 	
  

 
	
  

 	
   Title:

 	
  

 

          The
undersigned as Secretary of __________, a ______ corporation, hereby certifies
that ___________ is the duly elected, appointed, qualified and acting ________
of _________ and that the signature appearing above is his genuine signature. 

	
  

 	
  

 	
  

 
	
  

 	 

 	
  

 
	
  

 	
 Secretary 

 	
  

 

EXHIBIT C

FORM OF COMPANY RESOLUTIONS 

FOR SIGNING PURCHASE AGREEMENT

UNANIMOUS WRITTEN CONSENT OF 

	
  

 	
  

 	
  

 
	
  

 	 

 	
  

 

          In
accordance with the corporate laws of the state of Delaware, the undersigned,
being all of the directors of GREEN EARTH TECHNOLOGIES, INC., a Delaware
corporation (the “Corporation”) do hereby consent to and adopt the following
resolutions as the action of the Board of Directors for and on behalf of the
Corporation and hereby direct that this Consent be filed with the minutes of
the proceedings of the Board of Directors:  

          WHEREAS,
there has been presented to the Board of Directors of the Corporation a draft
of the Purchase Agreement (the “Purchase Agreement”) by and between the
Corporation and Lincoln Park Capital Fund, LLC (“Lincoln Park”), providing for
the purchase by Lincoln Park of up to Fifteen Million Dollars ($15,000,000) of
the Corporation’s common stock, ___ par value per share (the “Common Stock”);
and 

          WHEREAS,
after careful consideration of the Purchase Agreement, the documents incident
thereto and other factors deemed relevant by the Board of Directors, the Board
of Directors has determined that it is advisable and in the best interests of
the Corporation to engage in the transactions contemplated by the Purchase
Agreement, including, but not limited to, the issuance of 574,300 shares of
Common Stock to Lincoln Park as a an initial commitment fee (the “Initial
Commitment Shares”) and the sale of shares of Common Stock to Lincoln Park up
to the available amount under the Purchase Agreement (the “Purchase Shares”). 

Transaction Documents

          NOW,
THEREFORE, BE IT RESOLVED, that the transactions described in the Purchase
Agreement are hereby approved and ________________________________________ (the
“Authorized Officers”) are severally authorized to execute and deliver the
Purchase Agreement, and any other agreements or documents contemplated thereby
including, without limitation, a registration rights agreement (the
“Registration Rights Agreement”) providing for the registration of the shares
of the Company’s Common Stock issuable in respect of the Purchase Agreement on
behalf of the Corporation, with such amendments, changes, additions and
deletions as the Authorized Officers may deem to be appropriate and approve on
behalf of, the Corporation, such approval to be conclusively evidenced by the signature
of an Authorized Officer thereon; and 

          FURTHER
RESOLVED, that the terms and provisions of the Registration Rights Agreement by
and among the Corporation and Lincoln Park are hereby approved and the
Authorized Officers are authorized to execute and deliver the Registration
Rights Agreement (pursuant to the terms of the Purchase Agreement), with such
amendments, changes, additions and deletions as the Authorized Officer may deem
appropriate and approve on behalf of, the Corporation, such approval to be
conclusively evidenced by the signature of an Authorized Officer thereon; and 

          FURTHER
RESOLVED, that the terms and provisions of the Form of Transfer Agent
Instructions (the “Instructions”) are hereby approved and the Authorized Officers
are authorized to execute and deliver the Instructions (pursuant to the terms
of the Purchase Agreement), with such amendments, changes, additions and
deletions as the Authorized Officers may deem appropriate and 

approve on behalf of, the Corporation, such approval to be conclusively
evidenced by the signature of an Authorized Officer thereon; and 

Execution of Purchase Agreement

          FURTHER
RESOLVED, that the Corporation be and it hereby is authorized to execute the
Purchase Agreement providing for the purchase of up to Fifteen Million Dollars
($15,000,000) of the Corporation’s common stock; and 

Issuance of Common Stock

          FURTHER
RESOLVED, that the Corporation is hereby authorized to issue to Lincoln Park
Capital Fund, LLC 574,300 shares of Common Stock as Initial Commitment Shares
and that upon issuance of the Initial Commitment Shares pursuant to the
Purchase Agreement, the Initial Commitment Shares shall be duly authorized,
validly issued, fully paid and nonassessable with no personal liability
attaching to the ownership thereof; and 

          FURTHER
RESOLVED, that the Corporation is hereby authorized to issue shares of Common
Stock upon the purchase of Purchase Shares up to the Available Amount under the
Purchase Agreement in accordance with the terms of the Purchase Agreement and
that, upon issuance of the Purchase Shares pursuant to the Purchase Agreement,
the Purchase Shares will be duly authorized, validly issued, fully paid and
nonassessable with no personal liability attaching to the ownership thereof;
and 

          FURTHER
RESOLVED, that the Corporation shall initially reserve 20,000,000 shares of
Common Stock for issuance as Purchase Shares under the Purchase Agreement. 

          FURTHER
RESOLVED, that the Corporation is hereby authorized to issue 574,300 shares of
Common Stock (subject to equitable adjustment for any reorganization,
recapitalization, non-cash dividend, stock split or other similar transaction)
in connection with the purchase of Purchase Shares (the “Additional Commitment
Shares”) in accordance with the terms of the Purchase Agreement and that, upon
issuance of the Additional Commitment Shares pursuant to the Purchase
Agreement, the Additional Commitment Shares will be duly authorized, validly
issued, fully paid and nonassessable with no personal liability attaching to
the ownership thereof; and 

          FURTHER
RESOLVED, that the Corporation shall initially reserve 574,300 shares of Common
Stock (subject to equitable adjustment for any reorganization, recapitalization,
non-cash dividend, stock split or other similar transaction) for issuance as
Additional Commitment Shares under the Purchase Agreement. 

Approval of Actions

          FURTHER
RESOLVED, that, without limiting the foregoing, the Authorized Officers are,
and each of them hereby is, authorized and directed to proceed on behalf of the
Corporation and to take all such steps as deemed necessary or appropriate, with
the advice and assistance of counsel, to cause the Corporation to consummate
the agreements referred to herein and to perform its obligations under such
agreements; and 

          FURTHER
RESOLVED, that the Authorized Officers be, and each of them hereby is,
authorized, empowered and directed on behalf of and in the name of the
Corporation, to take or cause to be taken all such further actions and to
execute and deliver or cause to be executed and delivered all such further
agreements, amendments, documents, certificates, reports, schedules,
applications, notices, letters and undertakings and to incur and pay all such
fees and expenses as in their judgment shall be necessary, proper or desirable
to carry into effect the purpose and intent of any and all of the foregoing
resolutions, and that all actions heretofore taken by any officer or director
of the Corporation in connection with the transactions contemplated by the
agreements described herein are hereby approved, ratified and confirmed in all
respects. 

          IN WITNESS
WHEREOF, the Board of Directors has executed and delivered this Consent
effective as of __________, 2011. 

	
  

 	
  

 
	 

 	
  

 
	 

 	
  

 
	 

 	
  

 
	
  

 	
  

 
	
 being all of
 the directors of __________

 

EXHIBIT D

FORM OF SECRETARY’S CERTIFICATE

          This
Secretary’s Certificate (“Certificate”) is being delivered pursuant to Section
7(k) of that certain Purchase Agreement dated as of __________, (“Purchase
Agreement”), by and between GREEN EARTH
TECHNOLOGIES, INC., a Delaware corporation (the “Company”) and LINCOLN PARK CAPITAL FUND, LLC (the
“Investor”), pursuant to which the Company may sell to the Investor up to
Fifteen Million Dollars ($15,000,000) of the Company’s Common Stock, $0.001 par
value per share (the “Common Stock”). Terms used herein and not otherwise
defined shall have the meanings ascribed to them in the Purchase Agreement. 

          The
undersigned, ____________, Secretary of the Company, hereby certifies as
follows: 

	
  

 	
  

 	
  

 
	
  

 	
           1.          I
 am the Secretary of the Company and make the statements contained in this
 Secretary’s Certificate. 

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
           2.          Attached
 hereto as Exhibit A and Exhibit B are true, correct and
 complete copies of the Company’s bylaws (“Bylaws”) and Certificate of
 Incorporation (“Articles”), in each case, as amended through the date hereof,
 and no action has been taken by the Company, its directors, officers or
 shareholders, in contemplation of the filing of any further amendment
 relating to or affecting the Bylaws or Articles. 

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
           3.          Attached
 hereto as Exhibit C are true, correct and complete copies of the
 resolutions duly adopted by the Board of Directors of the Company on
 _____________, at which a quorum was present and acting throughout. Such
 resolutions have not been amended, modified or rescinded and remain in full
 force and effect and such resolutions are the only resolutions adopted by the
 Company’s Board of Directors, or any committee thereof, or the shareholders
 of the Company relating to or affecting (i) the entering into and performance
 of the Purchase Agreement, or the issuance, offering and sale of the Purchase
 Shares and the Commitment Shares and (ii) and the performance of the Company
 of its obligation under the Transaction Documents as contemplated therein. 

 	
  

 
	
  

 	
  

 	
  

 
	
 4.          As of
 the date hereof, the authorized, issued and reserved capital stock of the Company
 is as set forth on Exhibit D hereto. 

 	
  

 

          IN WITNESS WHEREOF, I have hereunder signed
my name on this ___ day of ____________. 

	
  

 	
  

 	
  

 
	
  

 	 

 	
  

 
	
  

 	
 Secretary

 	
  

 

The undersigned as ___________ of Green Earth Technologies, Inc., a
Delware corporation, hereby certifies that ____________ is the duly elected,
appointed, qualified and acting Secretary of _________, and that the signature
appearing above is his genuine signature. 

	
  

 	
  

 	
  

 
	
  

 	 

 	
  

 

EXHIBIT E

FORM OF LETTER TO THE TRANSFER AGENT FOR THE
ISSUANCE OF THE INITIAL COMMITMENT SHARES AT SIGNING OF THE PURCHASE AGREEMENT

[COMPANY LETTERHEAD]

	
  

 	
  

 
	
 [DATE] 

 	
  

 
	
  

 	
  

 
	
 [TRANSFER
 AGENT] 

 	
  

 
	
  

 	
  

 
	 

 	
  

 
	 

 	
  

 
	 

 	
  

 
	
  

 	
  

 
	
 Re: Issuance
 of Common Shares to Lincoln Park Capital Fund, LLC 

 
	
  

 	
  

 
	
 Dear
 ________, 

 	
  

 

On behalf of Green Earth Technologies,
Inc., (the “Company”), you are hereby instructed to issue as soon as possible 574,300 shares of our
common stock in the name of Lincoln Park
Capital Fund, LLC. The share certificate should be dated [DATE
OF THE PURCHASE AGREEMENT]. I have included a true and correct copy of a
unanimous written consent executed by all of the members of the Board of
Directors of the Company adopting resolutions approving the issuance of these
shares. The shares should be issued subject to the following restrictive legend:

	
  

 	
  

 	
  

 
	
  

 	
 THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED
FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED
IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS,
UNLESS SOLD PURSUANT TO: (1) RULE 144 UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR (2) AN OPINION OF HOLDER’S COUNSEL, IN A CUSTOMARY FORM, THAT REGISTRATION
IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS.  

	
  

 

The share certificate should be sent as soon as possible via overnight mail to the following
address: 

	
  

 	
  

 
	
  

 	
 Lincoln Park
 Capital Fund, LLC

 
	
  

 	
 440 North
 Wells, Suite 620

 
	
  

 	
  Chicago, IL 60654

 
	
  

 	
 Attention:
 Josh Scheinfeld/Jonathan Cope 

 

Thank you very much for your help. Please call me at ______________ if
you have any questions or need anything further. 

GREEN EARTH TECHNOLOGIES, INC. 

	
  

 	
  

 	
  

 
	
 BY: 

 	 

 	
  

 
	
                  [name]

 
	
                  [title]

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