Document:

Exhibit 10.1

 

FEDERAL ENERGY REGULATORY COMMISSION

Office of Enforcement

Washington, D.C. 20426

 

 

February 12, 2015

 

 

VIA EMAIL & U.S. MAIL

 

Steven A. Weiler, Esq.

Stinson Leonard Street, LLP 1775 Pennsylvania Avenue NW

Suite 800

Washington, DC 20006

 

	Re:		MISO Cinergy Hub Transactions (Twin Cities Power – Canada, Ltd., Twin Cities
Energy, LLC, Twin Cities Power, LLC) 

Docket No. IN12-2-000

 

 

Dear Mr. Weiler:

 

I write regarding the interest
calculation and payment schedule outlined in the settlement agreement (Agreement) in the above referenced matter. As you are aware,
paragraph 29 of the Agreement calls for Twin Cities to pay disgorgement in the amount of $978,186, plus interest calculated pursuant
to 18 C.F.R. § 35.19a(a)(2)), to the Midcontinent Independent System Operator, Inc. (MISO).

 

Pursuant to 18 C.F.R. §
35.19a(a)(2)), staff calculates that the interest payable to MISO is $128,827.05, bringing the total disgorgement amount to $1,107,013.05.
In combination with the civil penalty of $2,500,000 delineated in paragraph 30 of the Agreement, the total amount payable by Twin
Cities is $3,607,013.05.

 

Staff understands that,
consistent with paragraph 37 of the Agreement, the first $500,000 was timely paid to MISO, leaving $3,107,013.05 outstanding. In
accordance with paragraph 37 of the Agreement, this amount is payable in equal quarterly installments over the next four years,
starting with a payment in the second quarter of 2015 and ending in the second quarter of 2019. Using these parameters as prescribed
by the Agreement, staff calculates that the quarterly payments are to be in the amount of $194,188.32.

 

Paragraph 37 of the Agreement
further calls for MISO to be paid disgorgement until the disgorgement is satisfied, with subsequent amounts to be paid as a penalty
to the United States Treasury. Staff calculates that this transition will occur in the first quarter of 2016. In that quarter,
Twin Cities will pay $24,448.09 to MISO and $169,740.23 to the United States Treasury, with all payments thereafter going entirely
to the United States Treasury.

 

If you should have any
questions regarding these calculations or any other issue relating to this matter, please do not hesitate to contact me.

 

 

	 	 Very truly yours,

 

/s/ W. Blair Hopkin

 

W. Blair Hopkin

Federal Energy Regulatory Commission

Office of Enforcement

Division of Investigations

888 First Street, NE

Washington, D.C. 20426

Tel: (202) 502-6603

Email: Blair.Hopkin@ferc.gov

 

 

 

 

cc:Janette RichardsonExhibit 4.1

 

EXECUTION VERSION

 

 

 

PROPELL TECHNOLOGIES GROUP, INC.

 

INVESTORS’ RIGHTS AGREEMENT

 

February 19, 2015

  

 

  

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	Section 1 Definitions	1
	 	 	 
	1.1	Certain Definitions	1
	 	 	 
	Section 2 Registration Rights	3
	 	 	 
	2.1	Requested Registration	3
	2.2	Company Registration	5
	2.3	Registration on Form S-3	6
	2.4	Expenses of Registration	7
	2.5	Registration Procedures	7
	2.6	Indemnification	9
	2.7	Information by Holder	11
	2.8	Restrictions on Transfer	11
	2.9	Rule 144 Reporting	12
	2.10	Delay of Registration	12
	2.11	Limitations on Subsequent Registration Rights	12
	2.12	Termination of Registration Rights	13
	 	 	 
	Section 3 Information and management rights	13
	 	 	 
	3.1	Right to Nominate	13
	3.2	Examination Right	13
	3.3	Board Observer Right	13
	3.4	Consultation Right	13
	3.5	Basic Financial Information and Inspection Rights	13
	3.6	Confidentiality	14
	 	 	 
	Section 4 Additional Covenants	14
	 	 	 
	4.1	Right of First Refusal	14
	4.2	Directors’ and Officers’ Insurance	15
	4.3	Director Expenses	15
	4.4	Employee Vesting	15
	4.5	Real Property Holding Corporation	15
	 	 	 
	Section 5 Miscellaneous	15
	 	 	 
	5.1	Transfer or Assignment of Rights	15
	5.2	Amendment	16
	5.3	Notices	16
	5.4	Successors and Assigns; Third Party Beneficiaries	16
	5.5	Entire Agreement	16
	5.6	Delays or Omissions	16
	5.7	Severability	17
	5.8	Titles and Subtitles	17
	5.9	Counterparts	17
	5.10	Jurisdiction; Venue	17
	5.11	Further Assurances	17
	5.12	Conflict	17
	5.13	Attorneys’ Fees	17
	5.14	Aggregation of Stock	17
	5.15	Jury Trial	18

 

    	-i-

    	 

    

 

EXECUTION VERSION

 

PROPELL TECHNOLOGIES GROUP, INC.

INVESTORS’ RIGHTS AGREEMENT

 

This Investors’
Rights Agreement (this “Agreement”) is dated as of February 19, 2015, and is between Propell Technologies
Group, Inc., a Delaware corporation (the “Company”), and Ervington Investments Limited, duly organized
under the laws of the Republic of Cyprus (the “Investor”).

 

Recitals

 

The Investors are parties
to the Series C Preferred Stock Purchase Agreement of even date herewith (the “Purchase Agreement”),
and it is a condition to the closing of the sale of the Series C Preferred Stock to the Investor that the Investor and the
Company execute and deliver this Agreement.

 

The parties therefore
agree as follows:

 

Section 1

 

Definitions

 

1.1           Certain
Definitions.  As used in this Agreement, the following terms shall have the meanings set forth below:

 

(a)          
“Commission” shall mean the Securities and Exchange Commission or any other federal agency at the time
administering the Securities Act.

 

(b)          “Common
Stock” means the Common Stock of the Company.

 

(c)          “Conversion
Stock” shall mean shares of Common Stock issued upon conversion of the Series A-1 Preferred Stock and the Series
C Preferred Stock.

 

(d)          “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended, or any similar successor federal statute and the
rules and regulations thereunder, all as the same shall be in effect from time to time.

 

(e)          “Holder”
shall mean Investor, any Affiliate of Investor who holds Registrable Securities and any other holder of 20,000,000 Shares of Registrable
Securities to whom rights conferred by this Agreement have been duly and validly transferred in accordance with Section 5.1 of
this Agreement. All securities held or acquired by affiliated entities (including affiliated venture capital funds) or persons
shall be aggregated together for purposes of determining the availability of any rights under this Agreement.

 

(f)          “Indemnified
Party” shall have the meaning set forth in Section 2.6(c).

 

(g)          “Indemnifying
Party” shall have the meaning set forth in Section 2.6(c).

 

(h)          “Initial
Closing” shall mean the date of the initial sale of shares of the Company’s Series C Preferred Stock pursuant
to the Purchase Agreement.

 

(i)          “Initiating
Holders” shall mean any Holder or Holders who in the aggregate hold not less than a majority of the outstanding Registrable
Securities.

 

    	 

    	 

    

 

(j)          “New
Securities” shall have the meaning set forth in Section 4.1(a).

 

(k)          “Other
Selling Stockholders” shall mean persons other than Holders who, by virtue of agreements with the Company, are entitled
to include their Other Shares in certain registrations hereunder.

 

(l)          “Other
Shares” shall mean shares of Common Stock, other than Registrable Securities (as defined below), with respect to
which registration rights have been granted.

 

(m)          “Principal
Investor” shall mean Ervington Investments Limited and its Affiliates or subsequent assignee holding not less than
a majority of the Registrable Securities held by all Holders and not less than 36,000,000 Shares (on an as-converted basis).

 

(n)          
“Purchase Agreement” shall have the meaning set forth in the Recitals.

 

(o)          “Registrable
Securities” shall mean (i) shares of Common Stock included within the Shares or issued or issuable pursuant
to the conversion of the convertible preferred stock included within the Shares and (ii) any Common Stock issued as a dividend
or other distribution with respect to or in exchange for or in replacement of the shares referenced in (i) above; provided,
however, that Registrable Securities shall not include any shares of Common Stock described in clause (i) or (ii) above
which are sold to the public either pursuant to a registration statement or Rule 144, or which are sold in a private transaction
in which the transferor’s rights under this Agreement are not validly assigned in accordance with this Agreement.

 

(p)          The
terms “register,” “registered” and “registration”
shall refer to a registration effected by preparing and filing a registration statement in compliance with the Securities Act and
applicable rules and regulations thereunder, and the declaration or ordering of the effectiveness of such registration statement.

 

(q)          “Registration
Expenses” shall mean all expenses incurred in effecting any registration pursuant to this Agreement, including, without
limitation, all registration, qualification, and filing fees, printing expenses, escrow fees, fees and disbursements of counsel
for the Company and one special counsel for the Holders, blue sky fees and expenses, and expenses of any regular or special audits
incident to or required by any such registration, but shall not include Selling Expenses, fees and disbursements of other counsel
for the Holders and the compensation of regular employees of the Company, which shall be paid in any event by the Company.

 

(r)          “Restricted
Securities” shall mean any Registrable Securities required to bear the first legend set forth in Section 2.8(c).

 

(s)          “Rule 144”
shall mean Rule 144 as promulgated by the Commission under the Securities Act, as such Rule may be amended from time to time,
or any similar successor rule that may be promulgated by the Commission.

 

(t)          “Rule 145”
shall mean Rule 145 as promulgated by the Commission under the Securities Act, as such Rule may be amended from time to time,
or any similar successor rule that may be promulgated by the Commission

 

(u)          “Securities
Act” shall mean the Securities Act of 1933, as amended, or any similar successor federal statute and the rules and
regulations thereunder, all as the same shall be in effect from time to time.

 

    	-2-

    	 

    

 

(v)         “Selling
Expenses” shall mean all underwriting discounts, selling commissions and stock transfer taxes applicable to the sale
of Registrable Securities and fees and disbursements of counsel for any Holder (other than the fees and disbursements of one special
counsel to the Holders included in Registration Expenses).

 

(w)          “Series A-1
Preferred Stock” shall mean the shares of Series A-1 Preferred Stock acquired by Investor pursuant to the Secondary
Share Stock Purchase Agreement.

 

(x)          “Series C
Preferred Stock” shall mean the shares of Series C Preferred Stock issued pursuant to the Purchase Agreement.

 

(y)          “Secondary
Share Stock Purchase Agreement” shall mean the Secondary Share Stock Purchase Agreement dated as of the date of this
Agreement, by and among the Investor and various holders of Company securities, providing for the sale of Common Stock and Series
A-1 Preferred Stock to the Investor.

 

(z)          “Shares”
shall mean the shares of Company’s Series C Preferred Stock issued pursuant to the Purchase Agreement and shares of
the Company’s Common Stock and Series A-1 Preferred Stock purchased by the Investor (or its assignee) pursuant to the Secondary
Share Stock Purchase Agreement.

 

(aa)         
“Withdrawn Registration” shall mean a forfeited demand registration under Section 2.1 in accordance
with the terms and conditions of Section 2.4.

 

Section 2

 

Registration Rights

 

2.1           Requested
Registration.

 

(a)          Request
for Registration. Subject to the conditions set forth in this Section 2.1, if the Company shall receive from Initiating
Holders a written request signed by such Initiating Holders that the Company effect any registration with respect to all or a part
of the Registrable Securities (such request shall state the number of shares of Registrable Securities to be disposed of by such
Initiating Holders), the Company will:

 

(i)          promptly
give written notice of the proposed registration to all other Holders; and

 

(ii)         as
soon as practicable, file and use its commercially reasonable efforts to effect such registration (including, without limitation,
filing post-effective amendments, appropriate qualifications under applicable blue sky or other state securities laws, and appropriate
compliance with the Securities Act) and to permit or facilitate the sale and distribution of all or such portion of such Registrable
Securities as are specified in such request, together with all or such portion of the Registrable Securities of any Holder or Holders
joining in such request as are specified in a written request received by the Company within twenty (20) days after such written
notice from the Company is mailed or delivered.

 

(b)          Limitations
on Requested Registration. The Company shall not be obligated to effect, or to take any action to effect, any such registration
pursuant to this Section 2.1:

 

    	-3-

    	 

    

 

(i)          If
the Initiating Holders, together with the holders of any other securities of the Company entitled to inclusion in such registration
statement, propose to sell Registrable Securities and such other securities the aggregate proceeds of which (after deduction for
underwriter’s discounts and expenses related to the issuance) are less than $10,000,000;

 

(ii)         In
any particular jurisdiction in which the Company would be required to execute a general consent to service of process in effecting
such registration, qualification, or compliance, unless the Company is already subject to service in such jurisdiction and except
as may be required by the Securities Act;

 

(iii)        In
any year after the Company has initiated one such registrations pursuant to this Section 2.1 (counting for these purposes
only (x) registrations which have been declared or ordered effective and pursuant to which securities have been sold, and (y) Withdrawn
Registrations);

 

(iv)        During
the period starting with the date sixty (60) days prior to the Company’s good faith estimate of the date of filing of, and
ending on a date one hundred eighty (180) days after the effective date of, a Company-initiated registration; provided that
the Company is actively employing in good faith commercially reasonable efforts to cause such registration statement to become
effective; or

 

(v)         If
the Initiating Holders propose to dispose of shares of Registrable Securities that may be registered on Form S-3 pursuant to a
request made under Section 2.3.

 

(c)          Deferral.
If (i) in the good faith judgment of the board of directors of the Company, the filing of a registration statement covering
the Registrable Securities would be materially detrimental to the Company and the board of directors of the Company concludes,
as a result, that it is in the best interests of the Company to defer the filing of such registration statement at such time, and
(ii) the Company shall furnish to such Holders a certificate signed by the President of the Company stating that in the good
faith judgment of the board of directors of the Company, it would be materially detrimental to the Company for such registration
statement to be filed in the near future and that it is, therefore, in the best interests of the Company to defer the filing of
such registration statement, then (in addition to the limitations set forth in Section 2.1(b)(iv) above) the Company shall
have the right to defer such filing for a period of not more than ninety (90) days after receipt of the request of the Initiating
Holders, and, provided further, that the Company shall not defer its obligation in this manner more than once in any twelve-month
period.

 

(d)          Other
Shares. The registration statement filed pursuant to the request of the Initiating Holders may, subject to the provisions
of Section 2.1(e), include Other Shares, and may include securities of the Company being sold for the account of the Company.

 

(e)          Underwriting.
If the Initiating Holders intend to distribute the Registrable Securities covered by their request by means of an underwriting,
they shall so advise the Company as a part of their request made pursuant to this Section 2.1 and the Company shall include
such information in the written notice given pursuant to Section 2.1(a)(i). In such event, unless the Registrable Securities
may be registered by the Company on Form S-3, the right of any Holder to include all or any portion of its Registrable Securities
in such a registration pursuant to this Section 2.1 shall be conditioned upon such Holder’s participation in the underwriting
and the inclusion of such Holder’s Registrable Securities to the extent provided herein. The Company shall (together with
all Holders and other persons proposing to distribute their securities through such underwriting) enter into an underwriting agreement
in customary form with the representative of the underwriter or underwriters selected for such underwriting by a majority in interest
of the Initiating Holders, which underwriters are reasonably acceptable to the Company.

 

    	-4-

    	 

    

 

Notwithstanding any
other provision of this Section 2.1, if the underwriters advise the Initiating Holders in writing that marketing factors require
a limitation on the number of shares to be underwritten, the number of Registrable Securities and Other Shares that may be so included
shall be allocated as follows: (i) first, among all Holders requesting to include Registrable Securities and Other Shares in such
registration statement based on the pro rata percentage of Registrable Securities and Other Shares held by such Holders,
assuming conversion ; (ii) second, to the Other Selling Stockholders/Shareholders; and (iii) third, to the Company, which the Company
may allocate, at its discretion, for its own account, or for the account of other holders or employees of the Company.

 

If a person who has
requested inclusion in such registration as provided above does not agree to the terms of any such underwriting, such person shall
be excluded therefrom by written notice from the Company, the underwriter or the Initiating Holders. The securities so excluded
shall also be withdrawn from registration. Any Registrable Securities or other securities excluded or withdrawn from such underwriting
shall also be withdrawn from such registration. If shares are so withdrawn from the registration and if the number of shares to
be included in such registration was previously reduced as a result of marketing factors pursuant to this Section 2.1(e),
then the Company shall then offer to all Holders and Other Selling [Stockholders/Shareholders who have retained rights to include
securities in the registration the right to include additional Registrable Securities or Other Shares in the registration in an
aggregate amount equal to the number of shares so withdrawn, with such shares to be allocated among such Holders and other Selling
Stockholders/Shareholders requesting additional inclusion, as set forth above.

 

2.2           Company
Registration.

 

(a)          Company
Registration. If the Company shall determine to register any of its securities either for its own account or the account
of a security holder or holders, other than a registration pursuant to Section 2.1 or 2.3, a registration relating solely
to employee benefit plans, a registration relating to the offer and sale of debt securities, a registration relating to a corporate
reorganization or other Rule 145 transaction, or a registration on any registration form that does not permit secondary sales,
the Company will:

 

(i)          promptly
give written notice of the proposed registration to all Holders; and

 

(ii)         use
its commercially reasonable efforts to include in such registration (and any related qualification under blue sky laws or other
compliance), except as set forth in Section 2.2(b) below, and in any underwriting involved therein, all of such Registrable
Securities as are specified in a written request or requests made by any Holder or Holders received by the Company within ten (10)
days after such written notice from the Company is mailed or delivered. Such written request may specify all or a part of a Holder’s
Registrable Securities.

 

(b)          Underwriting.
If the registration of which the Company gives notice is for a registered public offering involving an underwriting, the Company
shall so advise the Holders as a part of the written notice given pursuant to Section 2.2(a)(i). In such event, the right
of any Holder to registration pursuant to this Section 2.2 shall be conditioned upon such Holder’s participation in
such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting to the extent provided herein.
All Holders proposing to distribute their securities through such underwriting shall (together with the Company, the Other Selling
Stockholders/Shareholders and other holders of securities of the Company with registration rights to participate therein distributing
their securities through such underwriting) enter into an underwriting agreement in customary form with the representative of the
underwriter or underwriters selected by the Company.

 

    	-5-

    	 

    

 

Notwithstanding any
other provision of this Section 2.2, if the underwriters advise the Company in writing that marketing factors require a limitation
on the number of shares to be underwritten, the underwriters may (subject to the limitations set forth below) limit the number
of Registrable Securities to be included in, the registration and underwriting. The Company shall so advise all holders of securities
requesting registration, and the number of shares of securities that are entitled to be included in the registration and underwriting
shall be allocated, as follows: (i) first, to the Company for securities being sold for its own account, (ii) second, to the Holders
requesting to include Registrable Securities in such registration statement based on the pro rata percentage of Registrable
Securities held by such Holders, assuming conversion and (iii) third, to the Other Selling Stockholders requesting to include Other
Shares in such registration statement based on the pro rata percentage of Other Shares held by such Other Selling Stockholders,
assuming conversion.

 

If a person who has
requested inclusion in such registration as provided above does not agree to the terms of any such underwriting, such person shall
also be excluded therefrom by written notice from the Company or the underwriter. The Registrable Securities or other securities
so excluded shall also be withdrawn from such registration. Any Registrable Securities or other securities excluded or withdrawn
from such underwriting shall be withdrawn from such registration.

 

(c)          Right
to Terminate Registration. The Company shall have the right to terminate or withdraw any registration initiated by it under
this Section 2.2 prior to the effectiveness of such registration whether or not any Holder has elected to include securities
in such registration.

 

2.3           Registration
on Form S-3.

 

(a)          Request
for Form S-3 Registration. After the Company has qualified for the use of Form S-3, in addition to the rights contained
in the foregoing provisions of this Section 2 and subject to the conditions set forth in this Section 2.3, if the Company
shall receive from a Holder or Holders of Registrable Securities a written request that the Company effect any registration on
Form S-3 or any similar short form registration statement with respect to all or part of the Registrable Securities (such request
shall state the number of shares of Registrable Securities to be disposed of and the intended methods of disposition of such shares
by such Holder or Holders), the Company will take all such action with respect to such Registrable Securities as required by Section 2.1(a)(i)
and 2.1(a)(ii).

 

(b)          Limitations
on Form S-3 Registration. The Company shall not be obligated to effect, or take any action to effect, any such registration
pursuant to this Section 2.3:

 

(i)          In
the circumstances described in either Sections 2.1(b)(ii) or 2.1(b)(iv);

 

(ii)         If
the Holders, together with the holders of any other securities of the Company entitled to inclusion in such registration, propose
to sell Registrable Securities and such other securities (if any) on Form S-3 at an aggregate price to the public of less than
$3,000,000; or

 

(iii)        If,
in a given twelve-month period, the Company has effected two (2) such registrations in such period.

 

(c)          Deferral.
The provisions of Section 2.1(c) shall apply to any registration pursuant to this Section 2.3.

 

    	-6-

    	 

    

 

(d)          Underwriting.
If the Holders of Registrable Securities requesting registration under this Section 2.3 intend to distribute the Registrable
Securities covered by their request by means of an underwriting, the provisions of Section 2.1(e) shall apply to such registration.
Notwithstanding anything contained herein to the contrary, registrations effected pursuant to this Section 2.3 shall not be
counted as requests for registration or registrations effected pursuant to Section 2.1.

 

2.4           Expenses
of Registration.  All Registration Expenses incurred in connection with registrations pursuant to Sections 2.1, 2.2
and 2.3 shall be borne by the Company; provided, however, that the Company shall not be required to pay for any expenses
of any registration proceeding begun pursuant to Sections 2.1 and 2.3 if the registration request is subsequently withdrawn at
the request of the Holders of a majority of the Registrable Securities to be registered or because a sufficient number of Holders
shall have withdrawn so that the minimum offering conditions set forth in Sections 2.1 and 2.3 are no longer satisfied (in
which case all participating Holders shall bear such expenses pro rata among each other based on the number of Registrable
Securities requested to be so registered), unless the Holders of a majority of the Registrable Securities agree to forfeit their
right to a demand registration pursuant to Section 2.1;provided, however, in the event that a withdrawal by
the Holders is based upon material adverse information relating to the Company that is different from the information known or
available (upon request from the Company or otherwise) to the Holders requesting registration at the time of their request for
registration under Section 2.1, such registration shall not be treated as a counted registration for purposes of Section 2.1,
even though the Holders do not bear the Registration Expenses for such registration. All Selling Expenses relating to securities
registered on behalf of the Holders shall be borne by the holders of securities included in such registration pro rata among
each other on the basis of the number of Registrable Securities so registered.

 

2.5           Registration
Procedures.  In the case of each registration effected by the Company pursuant to Section 2, the Company will keep
each Holder advised in writing as to the initiation of each registration and as to the completion thereof. At its expense, the
Company will use its commercially reasonable efforts to:

 

(a)          Keep
such registration effective for a period ending on the earlier of the date which is sixty (60) days from the effective date of
the registration statement or such time as the Holder or Holders have completed the distribution described in the registration
statement relating thereto;

 

(b)          To
the extent the Company is a well-known seasoned issuer (as defined in Rule 405 under the Securities Act) (a “WKSI”)
at the time any request for registration is submitted to the Company in accordance with Section 2.3, (i) if so requested,
file an automatic shelf registration statement (as defined in Rule 405 under the Securities Act) (an “automatic shelf
registration statement”) to effect such registration, and (ii) remain a WKSI (and not become an ineligible issuer
(as defined in Rule 405 under the Securities Act)) during the period during which such automatic shelf registration statement is
required to remain effective in accordance with this Agreement;

 

(c)          Prepare
and file with the Commission such amendments and supplements to such registration statement and the prospectus used in connection
with such registration statement as may be necessary to comply with the provisions of the Securities Act with respect to the disposition
of all securities covered by such registration statement for the period set forth in subsection (a) above;

 

(d)          Furnish
such number of prospectuses, including any preliminary prospectuses, and other documents incident thereto, including any amendment
of or supplement to the prospectus, as a Holder from time to time may reasonably request;

 

    	-7-

    	 

    

 

(e)          Use
its reasonable best efforts to register and qualify the securities covered by such registration statement under such other securities
or Blue Sky laws of such jurisdiction as shall be reasonably requested by the Holders; provided, that the Company shall
not be required in connection therewith or as a condition thereto to qualify to do business or to file a general consent to service
of process in any such states or jurisdictions;

 

(f)          Notify
each seller of Registrable Securities covered by such registration statement at any time when a prospectus relating thereto is
required to be delivered under the Securities Act of the happening of any event as a result of which the prospectus included in
such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact
required to be stated therein or necessary to make the statements therein not misleading or incomplete in light of the circumstances
then existing, and following such notification promptly prepare and furnish to such seller a reasonable number of copies of a supplement
to or an amendment of such prospectus as may be necessary so that, as thereafter delivered to the purchasers of such shares, such
prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading or incomplete in light of the circumstances then existing;

 

(g)          If
at any time when the Company is required to re-evaluate its WKSI status for purposes of an automatic shelf registration statement
used to effect a request for registration in accordance with Section 2.3 (i) the Company determines that it is not a
WKSI, (ii) the registration statement is required to be kept effective in accordance with this Agreement, and (iii) the
registration rights of the applicable Holders have not terminated, promptly amend the registration statement onto a form the Company
is then eligible to use or file a new registration statement on such form, and keep such registration statement effective in accordance
with the requirements otherwise applicable under this Agreement;

 

(h)          If
(i) a registration made pursuant to a shelf registration statement is required to be kept effective in accordance with this
Agreement after the third anniversary of the initial effective date of the shelf registration statement and (ii) the registration
rights of the applicable Holders have not terminated, file a new registration statement with respect to any unsold Registrable
Securities subject to the original request for registration prior to the end of the three year period after the initial effective
date of the shelf registration statement, and keep such registration statement effective in accordance with the requirements otherwise
applicable under this Agreement;

 

(i)          Use
its commercially reasonable efforts to furnish, on the date that such Registrable Securities are delivered to the underwriters
for sale, if such securities are being sold through underwriters, (i) an opinion, dated as of such date, of the counsel representing
the Company for the purposes of such registration, in form and substance as is customarily given to underwriters in an underwritten
public offering, addressed to the underwriters, if any, and reasonably satisfactory to a majority in interest of the Holders requesting
registration of Registrable Securities and (ii) a “comfort” letter dated as of such date, from the independent
certified public accountants of the Company, in form and substance as is customarily given by independent certified public accountants
to underwriters in an underwritten public offering, addressed to the underwriters;

 

(j)          Provide
a transfer agent and registrar for all Registrable Securities registered pursuant to such registration statement and a CUSIP number
for all such Registrable Securities, in each case not later than the effective date of such registration;

 

    	-8-

    	 

    

 

(k)          Otherwise
use its commercially reasonable efforts to comply with all applicable rules and regulations of the Commission, and make available
to its security holders, as soon as reasonably practicable, an earnings statement covering the period of at least twelve months,
but not more than eighteen months, beginning with the first month after the effective date of the Registration Statement, which
earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act;

 

(l)          Cause
all such Registrable Securities registered pursuant hereunder to be listed on each securities exchange on which similar securities
issued by the Company are then listed; and

 

(m)          In
connection with any underwritten offering pursuant to a registration statement filed pursuant to Section 2.1, enter into an
underwriting agreement in form reasonably necessary to effect the offer and sale of Common Stock, provided such underwriting agreement
contains reasonable and customary provisions, and provided further, that each Holder participating in such underwriting shall also
enter into and perform its obligations under such an agreement.

 

2.6           Indemnification. 

 

(a)          To
the extent permitted by law, the Company will indemnify and hold harmless each Holder, each of its officers, directors and partners,
legal counsel and accountants and each person controlling such Holder within the meaning of Section 15 of the Securities Act,
with respect to which registration, qualification or compliance has been effected pursuant to this Section 2, and each underwriter,
if any, and each person who controls within the meaning of Section 15 of the Securities Act any underwriter, against all expenses,
claims, losses, damages and liabilities (or actions, proceedings or settlements in respect thereof) arising out of or based on:
(i) any untrue statement (or alleged untrue statement) of a material fact contained or incorporated by reference in any prospectus,
offering circular or other document (including any related registration statement, notification or the like) incident to any such
registration, qualification or compliance, (ii) any omission (or alleged omission) to state therein a material fact required
to be stated therein or necessary to make the statements therein not misleading, or (iii) any violation (or alleged violation)
by the Company of the Securities Act, any state securities laws or any rule or regulation thereunder applicable to the Company
and relating to action or inaction required of the Company in connection with any offering covered by such registration, qualification
or compliance, and the Company will reimburse each such Holder, each of its officers, directors, partners, legal counsel and accountants
and each person controlling such Holder, each such underwriter and each person who controls any such underwriter, for any legal
and any other expenses reasonably incurred in connection with investigating and defending or settling any such claim, loss, damage,
liability or action; provided that the Company will not be liable in any such case to the extent that any such claim, loss,
damage, liability, or action arises out of or is based on any untrue statement or omission based upon written information furnished
to the Company by such Holder, any of such Holder’s officers, directors, partners, legal counsel or accountants, any person
controlling such Holder, such underwriter or any person who controls any such underwriter, and stated to be specifically for use
therein; and provided, further that, the indemnity agreement contained in this Section 2.6(a) shall not apply
to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent
of the Company (which consent shall not be unreasonably withheld).

 

    	-9-

    	 

    

 

(b)          To
the extent permitted by law, each Holder will, if Registrable Securities held by such Holder are included in the securities as
to which such registration, qualification or compliance is being effected, indemnify and hold harmless the Company, each of its
directors, officers, partners, legal counsel and accountants and each underwriter, if any, of the Company’s securities covered
by such a registration statement, each person who controls the Company or such underwriter within the meaning of Section 15
of the Securities Act, each other such Holder, and each of their officers, directors and partners, and each person controlling
each other such Holder, against all claims, losses, damages and liabilities (or actions in respect thereof) arising out of or based
on: (i) any untrue statement (or alleged untrue statement) of a material fact contained or incorporated by reference in any
prospectus, offering circular or other document (including any related registration statement, notification, or the like) incident
to any such registration, qualification or compliance, or (ii) any omission (or alleged omission) to state therein a material
fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse the Company and
such Holders, directors, officers, partners, legal counsel and accountants, persons, underwriters, or control persons for any legal
or any other expenses reasonably incurred in connection with investigating or defending any such claim, loss, damage, liability
or action, in each case to the extent, but only to the extent, that such untrue statement (or alleged untrue statement) or omission
(or alleged omission) is made in such registration statement, prospectus, offering circular or other document in reliance upon
and in conformity with written information furnished to the Company by such Holder and stated to be specifically for use therein;
provided, however, that the obligations of such Holder hereunder shall not apply to amounts paid in settlement of
any such claims, losses, damages or liabilities (or actions in respect thereof) if such settlement is effected without the consent
of such Holder (which consent shall not be unreasonably withheld); and provided that in no event shall any indemnity under
this Section 2.6 exceed the net proceeds from the offering received by such Holder, except in the case of fraud or willful
misconduct by such Holder.

 

(c)          Each
party entitled to indemnification under this Section 2.6 (the “Indemnified Party”)
shall give notice to the party required to provide indemnification (the “Indemnifying Party”)
promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, and shall permit the
Indemnifying Party to assume the defense of such claim or any litigation resulting therefrom; provided that counsel for
the Indemnifying Party, who shall conduct the defense of such claim or any litigation resulting therefrom, shall be approved by
the Indemnified Party (whose approval shall not be unreasonably withheld), and the Indemnified Party may participate in such defense
at such party’s expense; and provided further that the failure of any Indemnified Party to give notice as provided
herein shall not relieve the Indemnifying Party of its obligations under this Section 2.6, to the extent such failure is not
prejudicial. No Indemnifying Party, in the defense of any such claim or litigation, shall, except with the consent of each Indemnified
Party, consent to entry of any judgment or enter into any settlement that does not include as an unconditional term thereof the
giving by the claimant or plaintiff to such Indemnified Party of a release from all liability in respect to such claim or litigation.
Each Indemnified Party shall furnish such information regarding itself or the claim in question as an Indemnifying Party may reasonably
request in writing and as shall be reasonably required in connection with defense of such claim and litigation resulting therefrom.

 

(d)          If
the indemnification provided for in this Section 2.6 is held by a court of competent jurisdiction to be unavailable to an
Indemnified Party with respect to any loss, liability, claim, damage, or expense referred to herein, then the Indemnifying Party,
in lieu of indemnifying such Indemnified Party hereunder, shall contribute to the amount paid or payable by such Indemnified Party
as a result of such loss, liability, claim, damage, or expense in such proportion as is appropriate to reflect the relative fault
of the Indemnifying Party on the one hand and of the Indemnified Party on the other in connection with the statements or omissions
that resulted in such loss, liability, claim, damage, or expense as well as any other relevant equitable considerations. The relative
fault of the Indemnifying Party and of the Indemnified Party shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied
by the Indemnifying Party or by the Indemnified Party and the parties’ relative intent, knowledge, access to information,
and opportunity to correct or prevent such statement or omission. No person or entity will be required under this Section 2.6(d)
to contribute any amount in excess of the net proceeds from the offering received by such person or entity, except in the case
of fraud or willful misconduct by such person or entity. No person or entity guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any person or entity who was not guilty
of such fraudulent misrepresentation.

 

    	-10-

    	 

    

 

(e)          Notwithstanding
the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered
into in connection with the underwritten public offering are in conflict with the foregoing provisions, the provisions in the underwriting
agreement shall control.

 

2.7           Information
by Holder.  Each Holder of Registrable Securities shall furnish to the Company such information regarding such Holder
and the distribution proposed by such Holder as the Company may reasonably request in writing and as shall be reasonably required
in connection with any registration, qualification, or compliance referred to in this Section 2.

 

2.8           Restrictions
on Transfer.

 

(a)          The
holder of each certificate representing Registrable Securities by acceptance thereof agrees to comply in all respects with the
provisions of this Section 2.8. Each Holder agrees not to make any sale, assignment, transfer, pledge or other disposition
of all or any portion of the Restricted Securities, or any beneficial interest therein, unless and until the transferee thereof
has agreed in writing for the benefit of the Company to take and hold such Restricted Securities subject to, and to be bound by,
the terms and conditions set forth in this Agreement, including, without limitation, this Section 2.8 and Section 2.10,
and:

 

(i)          There
is then in effect a registration statement under the Securities Act covering such proposed disposition and the disposition is made
in accordance with the registration statement; or

 

(ii)         The
Holder shall have given prior written notice to the Company of the Holder’s intention to make such disposition and shall
have furnished the Company with a detailed description of the manner and circumstances of the proposed disposition, and, if requested
by the Company, the Holder shall have furnished the Company, at the Holder’s expense, with (i) an opinion of counsel
or evidence reasonably satisfactory to the Company to the effect that such disposition will not require registration of such Restricted
Securities under the Securities Act, whereupon the holder of such Restricted Securities shall be entitled to transfer such Restricted
Securities in accordance with the terms of the notice delivered by the Holder to the Company. It is agreed that the Company will
not require opinions of counsel for transactions made pursuant to Rule 144.

 

(b)          Notwithstanding
the provisions of Section 2.8(a), no such registration statement or opinion of counsel shall be necessary for (i) a transfer
not involving a change in beneficial ownership, or (ii) transactions involving the distribution without consideration of Restricted
Securities by any Holder to (x) a parent, subsidiary or other Affiliate of the Holder, (y) any of the Holder’s
partners, members or other equity owners, or retired partners, retired members or other equity owners, or to the estate of any
of the Holder’s partners, members or other equity owners or retired partners, retired members or other equity owners, or
(z) a venture capital fund that is controlled by or under common control with one or more general partners or managing members
of, or shares the same management company with, the Holder; provided, in each case, that the Holder shall give written notice
to the Company of the Holder’s intention to effect such disposition and shall have furnished the Company with a detailed
description of the manner and circumstances of the proposed disposition.

 

(c)          Each
certificate representing Registrable Securities shall (unless otherwise permitted by the provisions of this Agreement) be stamped
or otherwise imprinted with a legend substantially similar to the following (in addition to any legend required under applicable
state securities laws):

 

    	-11-

    	 

    

 

THE SECURITIES
REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE
SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED
EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS PURSUANT TO REGISTRATION OR AN EXEMPTION THEREFROM. THE
ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT SUCH OFFER, SALE OR TRANSFER,
PLEDGE OR HYPOTHECATION OTHERWISE COMPLIES WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

 

THE SHARES REPRESENTED
BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AS SET FORTH IN AN INVESTORS’ RIGHTS AGREEMENT
A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE COMPANY.

 

The Holders consent to
the Company making a notation on its records and giving instructions to any transfer agent of the Restricted Securities in order
to implement the restrictions on transfer established in this Section 2.8.

 

2.9           Rule 144
Reporting.  With a view to making available the benefits of certain rules and regulations of the Commission that may permit
the sale of the Restricted Securities to the public without registration, the Company agrees to use its commercially reasonable
efforts to:

 

(a)          Make
and keep adequate current public information with respect to the Company available in accordance with Rule 144 under the Securities
Act, at all times from and after ninety (90) days following the effective date of the first registration under the Securities Act
filed by the Company for an offering of its securities to the general public;

 

(b)          File
with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act and the
Exchange Act at any time after it has become subject to such reporting requirements; and

 

(c)          So
long as a Holder owns any Restricted Securities, furnish to the Holder forthwith upon written request a written statement by the
Company as to its compliance with the reporting requirements of Rule 144 (at any time from and after ninety (90) days following
the effective date of the first registration statement filed by the Company for an offering of its securities to the general public),
and of the Securities Act and the Exchange Act (at any time after it has become subject to such reporting requirements), a copy
of the most recent annual or quarterly report of the Company, and such other reports and documents so filed as a Holder may reasonably
request in availing itself of any rule or regulation of the Commission allowing a Holder to sell any such securities without registration.

 

2.10         Delay
of Registration.  No Holder shall have any right to take any action to restrain, enjoin, or otherwise delay any registration
as the result of any controversy that might arise with respect to the interpretation or implementation of this Section 2.

 

2.11         Limitations
on Subsequent Registration Rights.  From and after the date of this Agreement, the Company shall not, without the prior
written consent of Holders holding a majority of the Registrable Securities (excluding any of such shares held by any Holders whose
rights to request registration or inclusion in any registration pursuant to this Section 2 have terminated in accordance with
Section 2.12), enter into any agreement with any holder or prospective holder of any securities of the Company giving such
holder or prospective holder any registration rights the terms of which are pari passu with or senior to the registration
rights granted to the Holders hereunder.

 

    	-12-

    	 

    

 

2.12         Termination
of Registration Rights.  The right of any Holder to request registration or inclusion in any registration pursuant to
Sections 2.1, 2.2 or 2.3 shall terminate on the date on which all shares of Registrable Securities held or entitled to be
held upon conversion by such Holder may immediately be sold under Rule 144 during any ninety (90) day period.

 

Section 3

 

Information and management rights

 

3.1           Right
to Nominate. The Principal Investor shall have the right at any time to designate the person to be appointed the Chief Executive
Officer of the Company, and the Company shall promptly appoint the Investor’s designee to such position.

 

3.2           Examination
Right. The Principal Investor shall have the right to examine the books and records of the Company, inspect its facilities,
and receive other information at reasonable times and intervals concerning the general status of the Company's financial condition
and operations.

 

3.3           Board
Observer Right. If at any time a representative of the Principal Investor is not a member of the Company's Board of Directors,
the Company shall invite the Principal Investor's authorized representative to attend all meetings of the Board and committees
of the Board and in connection therewith shall provide to such representative copies of all notices, minutes, consents, and other
materials that it provides to its directors. Such representative may participate in discussions of matters brought before the Board
or Board committees, but shall in all other respects be a nonvoting observer.

 

3.4           Consultation
Right. If at any time a representative of the Principal Investor is not serving on the Company’s Board of Directors,
the Principal Investor shall have the right to consult with and advise management of the Company on significant business issues,
including without limitation management's proposed quarterly and annual operating plans. Upon request by the Principal Investor,
management of the Company shall meet with authorized representatives of the Principal Investor, at a mutually agreeable time and
place, within thirty days after the end of each calendar quarter for such consultation and advice and to review progress in achieving
such plans.

 

3.5           Basic
Financial Information and Inspection Rights. If at any date after this Agreement the Company is not subject to or not in compliance
with the periodic reporting requirements of Sections 12(g) or 15(d) of the Exchange Act, the Company shall deliver to each
Holder:

 

(a)          As
soon as practicable after the end of each fiscal year of the Company, and in any event within one hundred twenty (120) days after
the end of each fiscal year of the Company, a consolidated balance sheet of the Company and its subsidiaries, if any, as at the
end of such fiscal year, and consolidated statements of income and cash flows of the Company and its subsidiaries, if any, for
such year, prepared in accordance with U.S. generally accepted accounting principles consistently applied, certified by the Chief
Financial Officer of the Company.

 

    	-13-

    	 

    

 

(i)          As
soon as practicable after the end of the first, second and third quarterly accounting periods in each fiscal year of the Company,
and in any event within forty-five (45) days after the end of the first, second, and third quarterly accounting periods in each
fiscal year of the Company, an unaudited consolidated balance sheet of the Company and its subsidiaries, if any, as of the end
of each such quarterly period, and unaudited consolidated statements of income and cash flows of the Company and its subsidiaries,
if any, for such period, prepared in accordance with U.S. generally accepted accounting principles consistently applied, subject
to changes resulting from normal year-end audit adjustments.

 

3.6           Confidentiality. 
Each Holder acknowledges that the information received by it pursuant to this Agreement may be confidential and for its use only,
and it will not use such confidential information in violation of the Exchange Act or reproduce, disclose or disseminate such information
to any other person (other than its employees or agents having a need to know the contents of such information, and its attorneys),
except in connection with the exercise of rights under this Agreement, unless the Company has made such information available to
the public generally or such Holder is required to disclose such information by a governmental authority.

 

Section 4

 

Additional Covenants

 

4.1           Right
of First Refusal.  The Company hereby grants to each Holder, the right of first refusal to purchase its pro rata
share of New Securities (as defined in this Section 4.1(a)) which the Company may, from time to time, propose to sell and
issue after the date of this Agreement. A Holder’s pro rata share, for purposes of this right of first refusal, is
equal to the ratio of (a) the number of Shares owned by such Holder the total number of Shares held by all Holders immediately
prior to the issuance of New Securities (assuming full conversion of the Shares).

 

(a)          “New
Securities” shall mean any capital stock (including Common Stock and/or Preferred Stock) of the Company whether now
authorized or not, and rights, convertible securities, options or warrants to purchase such capital stock, and securities of any
type whatsoever that are, or may become, exercisable or convertible into capital stock; provided that the term “New
Securities” does not include any security issuances excluded from the definition of “Additional Stock”
in the Company’s Certificate of Incorporation, as amended, Certificate of Designations, Preferences and Rights of the Series
A-1 Convertible Preferred Stock, Certificate of Designations, Rights and Preferences of the Series B Convertible Preferred Stock,
Certificate of Designation for the Series C Preferred Stock or any other certificate of designation forming part of the Certificate
of Incorporation (collectively, the “Charter”).

 

(b)          In
the event the Company proposes to undertake an issuance of New Securities, it shall give each Holder written notice of its intention,
describing the type of New Securities, and their price and the general terms upon which the Company proposes to issue the same.
Each Significant Holder shall have ten (10) days after any such notice is mailed or delivered to agree to purchase such Holder’s
pro rata share of such New Securities and to indicate whether such Holder desires to exercise its over-allotment option
for the price and upon the terms specified in the notice by giving written notice to the Company, in substantially the form attached
as Schedule 1, and stating therein the quantity of New Securities to be purchased.

 

(c)          In
the event the Holders fail to exercise fully the right of first refusal and over-allotment rights, if any within said ten (10)
day period (the “Election Period”), the Company shall have ninety (90) days thereafter
to sell or enter into an agreement (pursuant to which the sale of New Securities covered thereby shall be closed, if at all, within
ninety (90) days from the date of said agreement) to sell that portion of the New Securities with respect to which the Holders’
right of first refusal option set forth in this Section 4.1 was not exercised, at a price and upon terms no more favorable
to the purchasers thereof than specified in the Company’s notice to Holders delivered pursuant to Section 4.1(b). In
the event the Company has not sold within such ninety (90) day period following the Election Period, or such ninety (90) day period
following the date of said agreement, the Company shall not thereafter issue or sell any New Securities, without first again offering
such securities to the Holders in the manner provided in this Section 4.1.

 

    	-14-

    	 

    

 

4.2           Directors’
and Officers’ Insurance. As soon as practicable after the date of this Agreement, the Company shall procure and maintain
from financially sound and reputable insurers directors and officers insurance with terms and policy limits as determined by the
Board of Directors of the Company.

 

4.3           Director
Expenses. The reasonable out-of-pocket and travel expenses of any non-employee directors that are incurred in (i) attending
meetings of the Board of Directors of the Company (or meetings of committees thereof) or (ii) any other activities which are required
or requested by the Company, shall be paid or reimbursed promptly by the Company.

 

4.4           Employee
Vesting. Unless otherwise approved by the Board of Directors of the Company, including the Series C Directors, all stock options
and other stock equivalents issued after the date of this Agreement to employees, directors, consultants and other service providers
of the Company shall be subject to vesting as follows: (i) twenty-five percent (25%) of such stock shall vest on the first anniversary
of, in the case of a new hire or appointee, the date of issuance or grant or such person’s services commencement date with
the Company, and in the case of an additional or new issuance or grant to an existing hire or appointee, the date of issuance or
grant, and (ii) seventy-five percent (75%) of such stock shall vest in equal monthly installments over the remaining three (3)
years.

 

4.5           Real
Property Holding Corporation. The Company shall provide prompt notice to each Holder following any “determination date”
(as defined in Treasury Regulation Section 1.897-2(c)(1)) on which the Company becomes a United States real property holding corporation.
In addition, upon a written request by a Holder, the Company shall provide such Holder with a written statement informing the Holder
whether such Holder’s interest in the Company constitutes a United States real property interest. The Company’s determination
shall comply with the requirements of Treasury Regulation Section 1.897-2(h)(1) or any successor regulation, and the Company shall
provide timely notice to the Internal Revenue Service, in accordance with and to the extent required by Treasury Regulation Section
1.897-2(h)(2) or any successor regulation, that such statement has been made. The Company’s written statement to such requesting
Holder shall be delivered within ten (10) days of the Holder’s written request therefor. The Company’s obligation to
furnish such written statement shall continue notwithstanding the fact that a class of the Company’s securities may be regularly
traded on an established securities market or the fact that there is no preferred stock then outstanding.

 

Section 5

 

Miscellaneous

 

5.1           Transfer
or Assignment of Rights.  The rights of a Holder under this Agreement may be transferred or assigned by a Holder only
to an Affiliate of the Investor or to a transferee or assignee of not less than 20,000,000 shares of Registrable Securities (as
presently constituted and subject to subsequent adjustments for stock splits, stock dividends, reverse stock splits, and the like);
provided that (i) such transfer or assignment of Registrable Securities is effected in accordance with the terms of
Section 2.8 and applicable securities laws, (ii) the Company is given written notice prior to the transfer or assignment,
stating the name and address of the transferee or assignee and identifying the securities with respect to which such registration
rights are intended to be transferred or assigned and (iii) the transferee or assignee of such rights assumes in writing the
obligations of such Holder under this Agreement.

 

    	-15-

    	 

    

 

5.2           Amendment. 
Except as expressly provided herein, neither this Agreement nor any term hereof may be amended, waived, discharged or terminated
other than by a written instrument referencing this Agreement and signed by the Company and the Holders holding a majority of the
Registrable Securities. Any such amendment, waiver, discharge or termination effected in accordance with this paragraph shall be
binding upon each Holder and each future holder of all such securities of Holder. Each Holder acknowledges that by the operation
of this paragraph, the holders of a majority of the Registrable Securities will have the right and power to diminish or eliminate
all rights of such Holder under this Agreement.

 

5.3           Notices.
All notices and other communications required or permitted hereunder shall be in writing and shall be mailed by registered or certified
mail, postage prepaid, sent by facsimile or electronic mail or otherwise delivered by hand, messenger or courier service addressed
to the Holder’s address, facsimile number or electronic mail address as shown in the Company’s records, as may be updated
in accordance with the provisions hereof;

 

Each such notice or
other communication shall for all purposes of this Agreement be treated as effective or having been given (i) if delivered by hand,
messenger or courier service, when delivered (or if sent via a nationally-recognized overnight courier service, freight prepaid,
specifying next-business-day delivery, one business day after deposit with the courier), or (ii) if sent via mail, at the earlier
of its receipt or five days after the same has been deposited in a regularly-maintained receptacle for the deposit of the United
States mail, addressed and mailed as aforesaid, or (iii) if sent via facsimile, upon confirmation of facsimile transfer or, if
sent via electronic mail, upon confirmation of delivery when directed to the relevant electronic mail address, if sent during normal
business hours of the recipient, or if not sent during normal business hours of the recipient, then on the recipient’s next
business day.

 

5.4           Successors
and Assigns; Third Party Beneficiaries. Except as otherwise provided in this Agreement, the terms and conditions of this Agreement
shall inure to the benefit of and be binding upon the respective successors, assigns and legal representatives of the parties.
Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective
successors, assigns and legal representatives any rights, remedies, obligations, or liabilities under or by reason of this Agreement,
except as expressly provided in this Agreement.

 

5.5           Entire
Agreement. This Agreement constitutes the entire agreement between the parties hereto pertaining to the subject matter hereof,
and supersedes any and all other written or oral agreements relating to the subject matter hereof existing between the parties
hereto. Upon the effectiveness of this Agreement, the Prior Rights Agreement shall be deemed amended and restated and superseded
and replaced in its entirety by this Agreement, and shall be of no further force or effect.

 

5.6           Delays
or Omissions. Except as expressly provided herein, no delay or omission to exercise any right, power or remedy accruing to
any party to this Agreement upon any breach or default of any other party under this Agreement shall impair any such right, power
or remedy of such non-defaulting party, nor shall it be construed to be a waiver of any such breach or default, or an acquiescence
therein, or of or in any similar breach or default thereafter occurring, nor shall any waiver of any single breach or default be
deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of
any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any
party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically
set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any party to this Agreement,
shall be cumulative and not alternative.

 

    	-16-

    	 

    

 

5.7           Severability.
If any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or
void, portions of such provision, or such provision in its entirety, to the extent necessary, shall be severed from this Agreement,
and such court will replace such illegal, void or unenforceable provision of this Agreement with a valid and enforceable provision
that will achieve, to the extent possible, the same economic, business and other purposes of the illegal, void or unenforceable
provision. The balance of this Agreement shall be enforceable in accordance with its terms.

 

5.8           Titles
and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement. All references in this Agreement to sections, paragraphs and exhibits shall, unless
otherwise provided, refer to sections and paragraphs hereof and exhibits attached hereto.

 

5.9           Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be enforceable against the parties that execute
such counterparts, and all of which together shall constitute one instrument.

 

5.10         Jurisdiction;
Venue. Each of the parties hereby submits and consents irrevocably to the exclusive jurisdiction of the courts of the State
of Delaware and the United States District Court for the District of Delaware for the interpretation and enforcement of the provisions
of this Agreement. Each of the parties also agrees that the jurisdiction over the person of such parties and the subject matter
of such dispute shall be effected by the mailing of process or other papers in connection with any such action in the manner provided
for in Section 5.3 or in such other manner as may be lawful, and that service in such manner shall constitute valid and sufficient
service of process.

 

5.11         Further
Assurances. Each party hereto agrees to execute and deliver, by the proper exercise of its corporate, limited liability company,
partnership or other powers, all such other and additional instruments and documents and do all such other acts and things as may
be necessary to more fully effectuate this Agreement.

 

5.12         Conflict.
In the event of any conflict between the terms of this Agreement and the Charter or the Company’s bylaws, the terms of the
Charter or the Company’s bylaws, as the case may be, will control.

 

5.13         Attorneys’
Fees. In the event that any suit or action is instituted to enforce any provision in this Agreement, the prevailing party in
such dispute shall be entitled to recover from the losing party all fees, costs and expenses of enforcing any right of such prevailing
party under or with respect to this Agreement, including without limitation, such reasonable fees and expenses of attorneys and
accountants, which shall include, without limitation, all fees, costs and expenses of appeals.

 

5.14         Aggregation
of Stock. All shares of capital stock of the Company held or acquired by Affiliated persons shall be aggregated together for
the purpose of determining the availability of any rights under this Agreement and such Affiliated persons may apportion such rights
as among themselves in any manner they deem appropriate. As used in this Agreement, “Affiliate” means
(i) with respect to any Person, any other Person who directly or indirectly, through one or more intermediaries, controls, is controlled
by, or is under common control with, such Person, or (ii) with respect to any Person that is controlled by a trust, any other Person
that is directly or indirectly controlling, controlled by or under common control with such trust or a Person who is a beneficiary
of such trust or another trust with a common beneficiary. The term “control” means the possession, directly or indirectly,
of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting
securities, by contract or otherwise, and the terms “controlled” and “controlling” have meanings correlative
thereto. The term “Person” means an individual, partnership, corporation, limited liability company,
joint stock company, unincorporated organization or association, trust, joint venture, association or other similar entity, whether
or not a legal entity.

 

    	-17-

    	 

    

 

5.15         Jury
Trial. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ALL RIGHT TO TRIAL BY
JURY IN ANY LEGAL PROCEEDING (WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATED TO THIS AGREEMENT.

 

(signature page follows)

 

    	-18-

    	 

    

 

The parties have executed
this Investors’ Rights Agreement as of the date first written above.

 

	PROPELL TECHNOLOGIES GROUP, INC.	 	ERVINGTON INVESTMENTS LIMITED
	 	 	 
	/s/ John Huemoeller	 	/s/ Maria Damianou
	 	 	 
	By:________________________________	 	By:________________________________
	 	 	 
	Name:  John Huemoeller	 	Name: Maria Damianou
	 	 	 
	Title: Chief Executive Officer	 	Title: Director
	 	 	 
	 	 	Address:
	 	 	 
	 	 	c/o Meritservus Secretaries Limited
	 	 	Eftapaton Court, 256 Makarios Avenue
	 	 	CY-3105, Limassol, Cyprus

 

    	 

    	 

    

 

SCHEDULE 1

 

NOTICE AND WAIVER/ELECTION OF

RIGHT OF FIRST REFUSAL

 

I do hereby waive
or exercise, as indicated below, my rights of first refusal under the Investors’ Rights Agreement dated as of February ___,
2015 (the “Agreement”):

 

		1.	Waiver of [___] days’ notice period in which to exercise right of first refusal: (please
check only one)

 

		 ̈	WAIVE in full, on behalf of all Holders, the [___]-day notice period provided to exercise
my right of first refusal granted under the Agreement.

 

		 ̈	DO NOT WAIVE the notice period described above.

 

		2.	Issuance and Sale of New Securities: (please check only one)

 

		 ̈	WAIVE in full the right of first refusal granted under the Agreement with respect to the
issuance of the New Securities.

 

		 ̈	ELECT TO PARTICIPATE in $__________ (please provide amount) in New Securities proposed
to be issued by [insert company name], a [insert company jurisdiction] corporation, representing LESS than my pro
rata portion of the aggregate of $[_______] in New Securities being offered in the financing.

 

		 ̈	ELECT TO PARTICIPATE in $__________ in New Securities proposed to be issued by [insert
company name], a [insert company jurisdiction] corporation, representing my FULL pro rata portion of the aggregate
of $[_______] in New Securities being offered in the financing.

 

		 ̈	ELECT TO PARTICIPATE in my full pro rata portion of the aggregate of $[_______] in
New Securities being made available in the financing AND, to the extent available, the greater of (x) an additional $__________
(please provide amount) or (y) my pro rata portion of any remaining investment amount available in the event
other Significant Holders do not exercise their full rights of first refusal with respect to the $[_______] in New Securities being
offered in the financing.

 

Date: ________________

 

	 	 
	 	(Print investor name)
	 	 
	 	 
	 	(Signature)
	 	 
	 	 
	 	(Print name of signatory, if signing for an entity)
	 	 
	 	 
	 	(Print title of signatory, if signing for an entity)

 

This is neither a commitment to purchase
nor a commitment to issue the New Securities described above. Such issuance can only be made by way of definitive documentation
related to such issuance.

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