Document:

COMMITTED EQUITY FACILITY AGREEMENT

 

This Committed Equity
Facility Agreement (the “Agreement”) is dated as of the 27th day of February, 2012 the (“Effective
Date”) by and between TCA GLOBAL CREDIT MASTER FUND, LP, a Cayman Islands limited partnership (the “Investor”)
and CONO ITALIANO, INC., a Nevada corporation (the “Company”).

 

RECITALS

 

WHEREAS, the
parties desire that, upon the terms and subject to the conditions contained herein, the Company shall issue and sell to the Investor,
from time to time as provided herein, and the Investor shall purchase from the Company, up to $1,500,000 of the Company’s
common stock, $0.001 par value per share (the “Common Stock”); and

 

WHEREAS, such
investments will be made in reliance upon the provisions of Regulation D (“Regulation D”) of the Securities
Act of 1933, as amended, and the rules and regulations promulgated thereunder (collectively, the “Securities Act”),
or upon such other exemption from the registration requirements of the Securities Act as may be available with respect to any or
all of the transactions to be entered into hereunder;

 

NOW, THEREFORE,
in consideration of the premises and the mutual covenants of the parties hereinafter expressed and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties hereto, each intending to be legally bound, agree as follows:

 

ARTICLE
I

CERTAIN DEFINITIONS

 

For purposes of this
Agreement, except as otherwise expressly provided or otherwise defined elsewhere in this Agreement, or unless the context otherwise
requires, the capitalized terms in this Agreement shall have the meanings assigned to them in this Article as follows:

 

1.1           “Advance”
shall mean the portion of the Commitment Amount requested by the Company in the Advance Notice.

 

1.2           “Advance
Fee” shall mean an amount in United States funds equal to six percent (6%) of the gross amount of each Advance.

 

1.3           “Advance
Notice” shall mean a written notice in the form of Exhibit “A” attached hereto, executed
by an officer of the Company and delivered to the Investor and setting forth the Advance amount that the Company requests from
the Investor.

 

1.4           “Advance
Notice Date” shall mean each date the Company delivers (in accordance with Section 2.1(b) of this Agreement)
to the Investor an Advance Notice requiring the Investor to advance funds to the Company, subject to the terms of this Agreement. 
No Advance Notice Date will be less than five (5) Trading Days after the immediately prior Advance Notice Date given by the Company,
if any.

 

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1.5           “Advance
Settlement Date” shall mean the third (3rd) Trading Day after the relevant Pricing Period, or such earlier
day as may be available for settlement.

 

1.6           “Affiliate”
shall have the meaning set forth in Rule 405 of the Securities Act.

 

1.7           “Agreement”
shall have the meaning set forth in the preamble paragraph hereto.

 

1.8           “By-Laws”
shall have the meaning set forth in Section 4.4.

 

1.9           “Certificate
of Incorporation” shall have the meaning set forth in Section 4.4.

 

1.10         “Claims”
shall have the meaning set forth in Section 5.1.

 

1.11         “Closing”
shall mean one of the closings of a purchase and sale of Common Stock pursuant to Section 2.2.

 

1.12         “Commitment
Amount” shall mean the aggregate amount of up to $1,500,000 which the Investor has agreed to provide to the Company
in order to purchase the Shares pursuant to the terms and conditions of this Agreement.

 

1.13         “Commitment
Period” shall mean the period commencing on the Effective Date, and expiring upon the termination of this Agreement
in accordance with Section 10.2.

 

1.14         “Common
Stock” shall have the meaning set forth in the recitals of this Agreement.

 

1.15         “Company”
shall have the meaning set forth in the preamble paragraph hereto.

 

1.16         “Company
Indemnitees” shall have the meaning set forth in Section 5.2.

 

1.17         “Condition
Satisfaction Date” shall have the meaning set forth in Article VII.

 

1.18         “Consolidation
Event” shall have the meaning set forth in Section 6.9.

 

1.19         “Effective
Date” shall mean the date of this Agreement set forth in the introductory paragraph of this Agreement.

 

1.20         “Environmental
Laws” shall have the meaning set forth in Section 4.9.

 

1.21         “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

1.22         “Facility
Fee Shares” shall have the meaning set forth in Section 12.4(d).

 

1.23         “Indemnified
Liabilities” shall have the meaning set forth in Section 5.1.

 

1.24         “Indemnitee”
shall have the meaning set forth in Section 5.3.

 

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1.25         “Indemnitor”
shall have the meaning set forth in Section 5.3.

 

1.26         “Investor”
shall have the meaning set forth in the preamble paragraph hereto.

 

1.27         “Investor
Indemnitees” shall have the meaning set forth in Section 5.1.

 

1.28         “Market
Price” shall mean the lowest daily VWAP of the Common Stock during the relevant Pricing Period.

 

1.29         “Material
Adverse Effect” shall mean any condition, circumstance, or situation that has resulted in, or would reasonably be
expected to result in: (i) a material adverse effect on the legality, validity or enforceability of this Agreement or the
transactions contemplated herein; (ii) a material adverse effect on the results of operations, assets, business or condition
(financial or otherwise) of the Company, 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 this Agreement.

 

1.30         “Maximum
Advance Amount” shall mean, for each Advance Notice, the greater of: (i) an amount calculated by multiplying the
Market Price applicable to the relevant Advance Notice, multiplied by 400,000 Shares; or (ii) two hundred percent (200%) of the
average daily volume of shares of Common Stock traded during the immediately preceding five (5) consecutive trading days applicable
to the relevant Advance Notice.

 

1.31         “Nine
Month Valuation Date” shall have the meaning set forth in Section 12.4(d).

 

1.32         “Ownership
Limitation” shall have the meaning set forth in Section 2.1(a).

 

1.33         “Person”
shall mean an individual, a corporation, a partnership, an association, a trust or other entity or organization, including a government
or political subdivision or an agency or instrumentality thereof.

 

1.34         “Preferred
Stock” shall have the meaning set forth in Section 4.4.

 

1.35         “Pricing
Period” shall mean the five (5) consecutive Trading Days after the Advance Notice Date.

 

1.36         “Principal
Market” shall mean the Nasdaq Global Select Market, the Nasdaq Global Market, the Nasdaq Capital Market, the OTC
Bulletin Board, the OTC Markets, the NYSE Euronext or the New York Stock Exchange, whichever is at the time the principal trading
exchange or market for the Common Stock.

 

1.37         “Purchase
Price” shall be set at ninety-five percent (95%) of the Market Price during the Pricing Period.

 

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1.38         “Registrable
Securities” shall mean: (i) the Shares; and (ii) any securities issued or issuable with respect to the
Shares by way of exchange, stock dividend or stock split or in connection with a combination of shares, recapitalization, merger,
consolidation or other reorganization or otherwise.  As to any particular Registrable Securities, once issued such securities
shall cease to be Registrable Securities when: (a) the Registration Statement has been declared effective by the SEC and such
Registrable Securities have been disposed of pursuant to the Registration Statement; (b) such Registrable Securities have
been sold under circumstances under which all of the applicable conditions of Rule 144 (or any similar provision then in force)
under the Securities Act (“Rule 144”) are met; or (c) in the opinion of counsel to the Company
such Registrable Securities may permanently be sold without registration or without any time, volume or manner of sale limitations
pursuant to Rule 144.

 

1.39         “Registration
Rights Agreement” shall mean the Registration Rights Agreement dated the date hereof, regarding the filing of the
Registration Statement for the resale of the Registrable Securities, entered into between the Company and the Investor.

 

1.40         “Registration
Statement” shall mean a registration statement on Form S-1 or Form S-3 or on such other form promulgated
by the SEC for which the Company then qualifies and which counsel for the Company shall deem appropriate, and which form shall
be available for the registration of the resale by the Investor of the Registrable Securities under the Securities Act.

 

1.41         “Regulation
D” shall have the meaning set forth in the recitals of this Agreement.

 

1.42         “SEC”
shall mean the United States Securities and Exchange Commission.

 

1.43         “SEC
Documents” shall have the meaning set forth in Section 4.3.

 

1.44         “Securities
Act” shall have the meaning set forth in the recitals of this Agreement.

 

1.45         “Settlement
Document” shall have the meaning set forth in Section 2.2(a).

 

1.46         “Share
Value” shall have the meaning set forth in Section 12.4(d).

 

1.47         “Shares”
shall mean the shares of Common Stock to be issued from time to time hereunder pursuant to Advances.

 

1.48         “Trading
Day” shall mean any day during which the Principal Market shall be open for business.

 

1.49         “Valuation
Date” shall have the meaning set forth in Section 12.4(d).

 

1.50         “VWAP”
means, for any Trading Day, the daily volume weighted average price of the Common Stock for such date on the Principal Market as
reported by Bloomberg L.P. (based on a Trading Day from 9:00 a.m. (New York City time) to 4:02 p.m. (New York City time)).

 

ARTICLE
II

ADVANCES

 

2.1           Advances;
Mechanics. Subject to the terms and conditions of this Agreement (including, without limitation, the conditions of Article VII
hereof), the Company, at its sole and exclusive option, may issue and sell to the Investor, and the Investor shall purchase from
the Company, shares of Common Stock on the following terms:

 

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(a)          Advance
Notice.  At any time during the Commitment Period, the Company may require the Investor to purchase shares of Common Stock
by delivering an Advance Notice to the Investor, subject to the conditions set forth in Article VII; provided, however, that: (i) the
amount for each Advance as designated by the Company in the applicable Advance Notice shall not be more than the Maximum Advance
Amount; (ii) the aggregate amount of the Advances pursuant to this Agreement shall not exceed the Commitment Amount; (iii) in
no event shall the number of Shares issuable to the Investor pursuant to an Advance cause the aggregate number of Shares beneficially
owned (as calculated pursuant to Section 13(d) of the Exchange Act) by the Investor and its Affiliates to exceed 9.99%
of the then outstanding Common Stock (the “Ownership Limitation”); and (iv) in
no event shall the aggregate offering price or number of Shares, as the case may be, exceed the aggregate offering price or number
of Shares, as the case may be, available for issuance under the Registration Statement (the “Registration Limitation”).
Notwithstanding any other provision in this Agreement, the Company acknowledges and agrees that upon receipt of an Advance Notice,
the Investor may sell Shares that it is unconditionally obligated to purchase under such Advance Notice prior to taking possession
of such Shares.

 

(b)          Date
of Delivery of Advance Notice.  Advance Notices shall be delivered in accordance with the instructions set forth on the
bottom of Exhibit “A”.  An Advance Notice shall be deemed delivered on: (i) the Trading
Day it is received by the Investor, if such Advance Notice is received prior to 5:00 pm, Eastern Time; or (ii) the immediately
succeeding Trading Day if such Advance Notice is received by Investor after 5:00 pm, Eastern Time, on a Trading Day or at any time
on a day which is not a Trading Day.  No Advance Notice may be deemed delivered on a day that is not a Trading Day. The Company
may not deliver an Advance Notice to Investor unless at least five (5) Trading Days have elapsed since the immediately preceding
Advance Notice Date.

 

(c)          Ownership
Limitation.  In connection with each Advance Notice delivered by the Company, any portion of an Advance that would cause
the Investor to exceed the Ownership Limitation shall automatically be deemed to be withdrawn by the Company with no further action
required by the Company.

 

(d)          Registration
Limitation.  In connection with each Advance Notice, any portion of an Advance that would cause the Investor to exceed
the Registration Limitation shall automatically be deemed to be withdrawn by the Company with no further action required by the
Company. 

 

2.2           Closings. 
Each Closing shall take place on the Advance Settlement Date in accordance with the procedures set forth below.  In connection
with each Closing, the Company and the Investor shall fulfill each of its obligations as set forth below:

 

(a)          Within
one (1) Trading Day after the expiration of the Pricing Period applicable with respect to an Advance Notice, the Investor shall
deliver to the Company a written document (each a “Settlement Document”) setting forth: (i) the amount
of the Advance (taking into account any adjustments pursuant to Section 2.1 above); (ii) the Purchase Price; (iii) the Market
Price (as supported by a report by Bloomberg L.P. indicating the VWAP for each of the Trading Days during
the Pricing Period); and (iv) the number of Shares to be issued and subscribed for in connection with the applicable Advance
(which in no event will be greater than the Ownership Limitation or the Registration Limitation), in each case taking into account
the terms and conditions of this Agreement.  The Settlement Document shall be in the form attached hereto as Exhibit “B”.

 

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(b)          Upon
receipt of the Settlement Document with respect to each Advance, the Company shall, by promptly (and in any event not later than
one (1) Trading Day after receipt) signing the Settlement Document and returning it to the Investor, confirm that it has obtained
all permits and qualifications, if any, required for the issuance and transfer of the Shares applicable to such Advance, or shall
have the availability of exemptions therefrom, and that the sale and issuance of such Shares shall be legally permitted by all
laws and regulations to which the Company is subject. Execution of the Settlement Document by the Company shall also be deemed
a representation by the Company that all conditions to an Advance under Article VII have been fully satisfied in all material respects
as of each Condition Satisfaction Date.

 

(c)          On
each Advance Settlement Date, the Company will, or will cause its transfer agent to, electronically transfer such number of Shares
registered in the name of the Investor as shall equal: (i) the amount of the Advance specified in such Advance Notice and
confirmed in the Settlement Document signed by the Company (as may be reduced according to the terms of this Agreement); divided
by (ii) the Purchase Price, by crediting the Investor’s account or its designee’s account at the Depository Trust
Company through its Deposit Withdrawal Agent Commission System or by such other means of delivery as may be mutually agreed upon
by the parties hereto (which in all cases shall be freely tradable, registered shares in good deliverable form, covered by an effective
Registration Statement pursuant to which the Investor is permitted to resell such Shares) against payment of the Purchase Price
in same day funds to an account designated by the Company.  In the event the Shares cannot be delivered through the Deposit
Withdrawal Agent Commission System, then the Company shall cause its transfer agent, on each Advance Settlement Date, to issue
and surrender to a common carrier for overnight delivery to the Investor, certificates, registered in the name of the Investor
or its designees, representing the Shares applicable to such Advance. No fractional shares shall be issued, and any fractional
amounts shall be rounded to the next higher whole number of Shares. Any certificates evidencing Shares
delivered pursuant hereto shall be free of restrictive legends.

 

(d)          On
or prior to the Advance Settlement Date, each of the Company and the Investor shall deliver to the other, as applicable, all documents,
instruments and writings required to be delivered by either of them pursuant to this Agreement in order to implement and effect
the transactions contemplated herein.

 

2.3           Hardship. 
In the event the Investor sells shares of the Company’s Common Stock after receipt of an Advance Notice and the Company fails
to perform its obligations as mandated in Section 2.2, the Company agrees that in addition to and in no way limiting the rights
and obligations set forth in Article V hereto, and in addition to any other remedy to which the Investor is entitled at law
or in equity, including, without limitation, specific performance, the Investor shall be entitled to an injunction or injunctions
to prevent such breaches of this Agreement and to specifically enforce, without the posting of a bond or other security, the terms
and provisions of this Agreement.

 

ARTICLE
III

REPRESENTATIONS
AND WARRANTIES OF INVESTOR

 

Investor hereby represents
and warrants to, and agrees with, the Company that the following are true and correct as of the date hereof:

 

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3.1           Organization
and Authorization.  The Investor is duly organized, validly existing and in good standing under the laws of the Cayman
Islands and has all requisite power and authority to purchase and hold the Shares.  The decision to invest and the execution
and delivery of this Agreement by such Investor, the performance by such Investor of its obligations hereunder and the consummation
by such Investor of the transactions contemplated hereby have been duly authorized and requires no other proceedings on the part
of the Investor.  The undersigned has the right, power and authority to execute and deliver this Agreement and all other instruments
on behalf of the Investor.  This Agreement has been duly executed and delivered by the Investor and, assuming the execution
and delivery hereof and acceptance thereof by the Company, will constitute the legal, valid and binding obligations of the Investor,
enforceable against the Investor in accordance with its terms.

 

3.2           Evaluation
of Risks.  The Investor has such knowledge and experience in financial, tax and business matters as to be capable of evaluating
the merits and risks of, and bearing the economic risks entailed by, an investment in the Company and of protecting its interests
in connection with this transaction.  It recognizes that its investment in the Company involves a high degree of risk.

 

3.3           Investment
Purpose. The securities are being purchased by the Investor for its own account, and for investment purposes.  The Investor
agrees not to assign or in any way transfer the Investor’s rights to the securities or any interest therein and acknowledges
that the Company will not recognize any purported assignment or transfer except in accordance with applicable Federal and state
securities laws.  No other person has or will have a direct or indirect beneficial interest in the securities.  The Investor
agrees not to sell, hypothecate or otherwise transfer the Investor’s securities unless the securities are registered under
Federal and applicable state securities laws or unless, in the opinion of counsel satisfactory to the Company, an exemption from
such laws is available.

 

3.4           Investor
Status.  The Investor is an “Accredited Investor” as that term is defined in Rule 501(a)(3) of
Regulation D of the Securities Act.

 

3.5           No
Legal Advice From the Company.  The Investor acknowledges that it had the opportunity to review this Agreement and the
transactions contemplated by this Agreement with its own legal counsel and investment and tax advisors.  The Investor is relying
solely on such counsel and advisors and not on any statements or representations of the Company or any of the Company’s representatives
or agents for legal, tax or investment advice with respect to this investment, the transactions contemplated by this Agreement
or the securities laws of any jurisdiction.

 

3.6           Not
an Affiliate.  The Investor is not an officer, director or a Person that directly or indirectly, through one or more intermediaries,
controls or is controlled by, or is under common control with the Company or any Affiliate of the Company.

 

3.7           Trading
Activities.  The Investor’s trading activities with respect to the Company’s Common Stock shall be in compliance
with all applicable federal and state securities laws, rules and regulations and the rules and regulations of the Principal
Market on which the Common Stock is listed or traded.  Neither the Investor nor its Affiliates has an open short position
in the Common Stock, and the Investor agrees that it shall not, and that it will cause its Affiliates not to engage in any short
sales of the Common Stock during the Commitment Period; provided that the Company acknowledges and agrees that upon receipt of
an Advance Notice the Investor has the right to sell the Shares to be issued to the Investor pursuant to the Advance Notice prior
to receiving such Shares, subject to the limitations set forth in this Section.

 

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ARTICLE
IV

REPRESENTATIONS
AND WARRANTIES OF THE COMPANY

 

Except as stated
below, on the disclosure schedules attached hereto, if any, or in the SEC Documents, the Company hereby represents and warrants
to the Investor that the following are true and correct as of the Effective Date:

 

4.1           SEC
Documents; Financial Statements. The Common Stock is registered pursuant to Section 12(b) of the Exchange Act and the Company
has timely filed all reports, schedules, forms, statements and other documents required to be filed by it with the SEC under the
Exchange Act (all of the foregoing filed within the two (2) years preceding the date hereof or amended after the date hereof and
all exhibits included therein and financial statements and schedules thereto and documents incorporated by reference therein, being
hereinafter referred to as the “SEC Documents”). The Company is current with its filing obligations under
the Exchange Act and all SEC Documents have been filed on a timely basis or the Company has received a valid extension of such
time of filing and has filed any such SEC Document 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 Exchange Act and the rules and regulations of
the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with
the SEC, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or
necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.
As of their respective dates, the financial statements of the Company included in the SEC Documents complied as to form in all
material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto.
Such financial statements have been prepared in accordance with generally accepted accounting principles, consistently applied,
during the periods involved (except: (i) as may be otherwise indicated in such financial statements or the notes thereto;
or (ii) in the case of unaudited interim statements, to the extent they may exclude footnotes or may be condensed or summary
statements) and fairly present the financial position of the Company as of the dates thereof and the results of its operations
and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments).
No other information provided by or on behalf of the Company to the Investor which is not included in the SEC Documents contains
any untrue statement of a material fact or omits to state any material fact necessary in order to make the statements therein,
in the light of the circumstance under which they are or were made, not misleading.

 

4.2           Organization
and Qualification.  The Company is duly incorporated, validly existing and in good standing under the laws of the jurisdiction
of its incorporation and has all requisite corporate power to own its properties and to carry on its business as now being conducted. 
Each of the Company and its subsidiaries is duly qualified as a foreign corporation to do business and is in good standing in every
jurisdiction in which the nature of the business conducted by it makes such qualification necessary, except to the extent that
the failure to be so qualified or be in good standing would not have a Material Adverse Effect.

 

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4.3           Authorization,
Enforcement, Compliance with Other Instruments.  (i) The Company has the requisite corporate power and authority
to enter into and perform this Agreement and any related agreements, in accordance with the terms hereof and thereof; (ii) the
execution and delivery of this Agreement and any related agreements by the Company and the consummation by it of the transactions
contemplated hereby and thereby, have been duly authorized by the Company’s Board of Directors and no further consent or
authorization is required by the Company, its Board of Directors or its stockholders; (iii) this Agreement and any related
agreements have been duly executed and delivered by the Company; (iv) this Agreement and assuming the execution and delivery
thereof and acceptance by the Investor, any related agreements, constitute 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 generally,
the enforcement of creditors’ rights and remedies.

 

4.4           Capitalization. 
The authorized capital stock of the Company consists of 150,000,000 shares of Common Stock, of which 99,834,988 shares of Common
Stock are issued and outstanding as of the date hereof. There is no preferred stock authorized, issued or outstanding as of the
date hereof.  All of such outstanding shares have been validly issued and are fully paid and nonassessable. The Common Stock
is currently quoted on the OTC Bulletin Board under the trading symbol “CNOZ.”  Except as disclosed in the SEC
Documents, no shares of Common Stock are subject to preemptive rights or any other similar rights or any liens or encumbrances
suffered or permitted by the Company.  Except as disclosed in the SEC Documents, as of the date hereof: (i) 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; (ii) there are no outstanding debt securities; (iii) there are no outstanding registration
statements; and (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 pursuant to this Agreement).  There are no
securities or instruments containing anti-dilution or similar provisions that will be triggered by this Agreement or any related
agreement or the consummation of the transactions described herein or therein.  The Company has furnished or made available
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 in effect on the
date hereof (the “By-laws”), and the terms of all securities convertible into or exercisable for Common
Stock and the material rights of the holders thereof in respect thereto.

 

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4.5           No
Conflict.  The execution, delivery and performance of this Agreement by the Company and the consummation by the Company
of the transactions contemplated hereby will not: (i) result in a violation of the Certificate of Incorporation, any certificate
of designations of any outstanding series of Preferred Stock of the Company or 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 on which the Common Stock
is quoted) applicable to the Company or any of its subsidiaries or by which any material property or asset of the Company is bound
or affected and which would cause a Material Adverse Effect.  Except as disclosed in the SEC Documents, neither the Company
nor its subsidiaries is in violation of any term of or in default under its Certificate of Incorporation or By-laws or their organizational
charter or by-laws, respectively, or 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 that would cause a Material
Adverse Effect.  The business of the Company and its subsidiaries is not being conducted in violation of any material law,
ordinance or regulation of any governmental entity.  Except as specifically contemplated by this Agreement and as required
under the Securities Act and any 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 in order for it to execute, deliver or perform
any of its obligations under or contemplated by this Agreement in accordance with the terms hereof or thereof.  All consents,
authorization, orders, filings and registrations which the Company is required to make or obtain pursuant to the preceding sentence
have been obtained or effected on or prior to the date hereof.  The Company and its subsidiaries are not aware of any fact
or circumstance which might give rise to any of the foregoing.

 

4.6           No
Default.  Except as disclosed in the SEC Documents, the Company is not in default in the performance or observance of
any material obligation, agreement, covenant or condition contained in any indenture, mortgage, deed of trust or other material
instrument or agreement to which it is a party or by which it is or its property is bound, and neither the execution, nor the delivery
by the Company, nor the performance by the Company of its obligations under this Agreement or any of the exhibits or attachments
hereto, will conflict with or result in the breach or violation of any of the terms or provisions of, or constitute a default or
result in the creation or imposition of any lien or charge on any assets or properties of the Company, under its Certificate of
Incorporation, By-Laws, any material indenture, mortgage, deed of trust or other material agreement applicable to the Company or
instrument to which the Company is a party or by which it is bound, or any statute, or any decree, judgment, order, rules or
regulation of any court or governmental agency or body having jurisdiction over the Company or its properties, in each case which
default, lien or charge is likely to cause a Material Adverse Effect.

 

4.7           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.  The
Company and its subsidiaries do not have any knowledge of any infringement by the Company or its subsidiaries of 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, and, to the knowledge of the Company, 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; and the Company is not aware of any facts or circumstances which might give rise to any of
the foregoing.

 

4.8           Employee
Relations.  Neither the Company nor any of its subsidiaries is involved in any labor dispute nor, to the knowledge of
the Company or any of its subsidiaries, is any such dispute threatened.  None of the Company’s or its subsidiaries’
employees is a member of a union and the Company and its subsidiaries believe that their relations with their employees are good.

 

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4.9           Environmental
Laws.  The Company and its subsidiaries are: (i) in compliance with any and all applicable material 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, in each case except where
such noncompliance or nonreceipt would not, individually or in the aggregate, have a Material Adverse Effect.

 

4.10         Title. 
Except as set forth in the SEC Documents, the Company has good and marketable title to its properties and material assets owned
by it, free and clear of any pledge, lien, security interest, encumbrance, claim or equitable interest, other than such as are
not material to the business of the Company.  Any real property and facilities held under lease by the Company and its subsidiaries
are held by them under valid, subsisting and enforceable leases 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.

 

4.11         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 for similarly situated companies in
the businesses in which the Company and its subsidiaries are engaged.  The Company has not been refused any insurance coverage
sought or applied for and the Company does not have 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 have a Material Adverse Effect.

 

4.12         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.

 

4.13         Internal
Accounting Controls.  The Company and each of its subsidiaries maintain a system of internal accounting controls sufficient
to provide reasonable assurance that: (i) transactions are executed in accordance with management’s general or specific
authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with
generally accepted accounting principles and to maintain asset accountability; (iii) access to assets is permitted only in
accordance with management’s general or specific authorization; and (iv) the recorded accountability for assets is compared
with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.

 

4.14         No
Material Adverse Breaches, etc.  Except as set forth in the SEC Documents, neither the Company nor any of its subsidiaries
is subject to any charter, corporate or other legal restriction, or any judgment, decree, order, rule or regulation which,
in the judgment of the Company’s officers, has or is expected in the future to have a Material Adverse Effect on the Company
or its subsidiaries, taken as a whole.

 

    	11

    	 

    

 

4.15         Absence
of Litigation.  Except as set forth in the SEC Documents, there is no action, suit, proceeding, inquiry or investigation
before or by any court, public board, government agency, self-regulatory organization or body pending against or affecting the
Company, the Common Stock or any of the Company’s subsidiaries, wherein an unfavorable decision, ruling or finding would
have a Material Adverse Effect.

 

4.16         Subsidiaries. 
Except as disclosed in the SEC Documents, the Company does not presently own or control, directly or indirectly, any interest in
any other Person.

 

4.17         Tax
Status.  Except as disclosed in the SEC Documents, the Company and each of its subsidiaries has made or filed all foreign,
federal and state income and all other tax returns, reports and declarations required by any jurisdiction to which it is subject
and (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) 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 the Company and its subsidiaries have set aside on their respective 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.

 

4.18         Certain
Transactions.  Except as set forth in the SEC Documents, none of the officers, directors, or employees of the Company
is presently a party to any transaction with the Company (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 corporation, partnership, trust or other entity in which any officer, director, or any such employee has a
substantial interest or is an officer, director, trustee or partner.

 

4.19         The
Shares. The Shares have been duly authorized and, when issued, delivered and paid for pursuant to this Agreement, will be validly
issued and fully paid and non-assessable, free and clear of all liens, claims and encumbrances of any nature or kind, and will
be issued in compliance with all applicable United States federal and state securities laws. The capital stock of the Company,
including the Common Stock, shall conform in all material respects to the description thereof to be contained in the Registration
Statement. Neither the stockholders of the Company, nor any other Person, have any preemptive rights or rights of first refusal
with respect to the Shares or, except as set forth in the SEC Documents, other rights to purchase or receive any of the Shares
or any other securities or assets of the Company, and no Person has the right, contractual or otherwise, to cause the Company to
issue to it, or register pursuant to the Securities Act, any shares of capital stock or other securities or assets of the Company
upon the issuance or sale of the Shares. The Company is not obligated to offer the Shares on a right of first refusal basis or
otherwise to any third parties including, without limitation, to current or former shareholders of the Company, underwriters, brokers,
or agents.

 

4.20         Dilution. 
The Company is aware and acknowledges that issuance of the Shares could cause dilution to existing shareholders and could significantly
increase the outstanding number of shares of Common Stock.

 

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4.21         Acknowledgment
Regarding Investor’s Purchase of Shares. The Company acknowledges and agrees that the Investor is acting solely in the
capacity of an arm’s length investor with respect to this Agreement and the transactions contemplated hereunder. The Company
further acknowledges that the Investor is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity)
with respect to this Agreement and the transactions contemplated hereunder and any advice given by the Investor or any of its representatives
or agents in connection with this Agreement and the transactions contemplated hereunder is merely incidental to the Investor’s
purchase of the Shares hereunder.  The Company is aware and acknowledges that it may not be able to request Advances under
this Agreement until a Registration Statement becomes effective, and only in compliance with the rules of the Principal Market. 
The Company further is aware and acknowledges that any fees paid or shares issued pursuant to Section 12.4 hereunder shall
be earned as of the Effective Date and are not refundable or returnable under any circumstances.

 

ARTICLE
V

INDEMNIFICATION

 

The Investor and the
Company covenant to the other the following with respect to itself:

 

5.1           Indemnification
by the Company. In consideration of the Investor’s execution and delivery of this Agreement, and in addition to all of
the Company’s other obligations under this Agreement, the Company shall, and does hereby agree to, defend, protect, indemnify
and hold harmless the Investor, and all of the Investor’s affiliates and subsidiaries, and each Person who controls the Investor
within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and the officers, directors,
partners, members, employees and agents of each of them (collectively, the “Investor Indemnitees”), from
and against any and all actions, causes of action, suits, claims, demands, threats and proceedings (collectively, the “Claims”),
and the Company agrees to reimburse the Investor Indemnitees, or any of them, for any and all losses, costs, penalties, fees, liabilities,
obligations, judgments, expenses, and damages, including, without limitation, reasonable attorneys’ fees, paralegals’
fees and other costs, expenses and disbursements reasonably incurred by the Investor Indemnities, or any of them, in connection
with investigating, defending or settling any such Claims, including such expenses incurred throughout all trial and appellate
levels and administrative and bankruptcy proceedings (collectively, the “Indemnified Liabilities”), suffered
or incurred by the Investor Indemnitees, or any of them, as a result of, or arising out of, or relating to: (a) any untrue
statement or alleged untrue statement of a material fact contained in the Registration Statement for the registration of the Shares
as originally filed or in any amendment thereof, or in any related prospectus, or in supplement, or in any amendment thereof or
supplement thereto, or arising out of or which are based upon the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not misleading; provided, however, that
the Company will not be liable in any such case to the extent that any such Indemnified Liabilities arise out of or are based upon
any such untrue statement or alleged untrue statement or omission or alleged omission made therein in reliance upon and in conformity
with written information furnished to the Company by or on behalf of the Investor specifically for inclusion therein; (b) any misrepresentation
or breach of any representation or warranty made by the Company in this Agreement or any other certificate, instrument or document
contemplated hereby or thereby; (c) any breach of any covenant, agreement or obligation of the Company contained in this Agreement
or any other certificate, instrument or document contemplated hereby or thereby; and (d) any Claim brought or made against
the Investor Indemnitees, or any of them, not arising out of any action or inaction of an Investor Indemnitee, and arising out
of or resulting from the execution, delivery, performance or enforcement of this Agreement or any other instrument, document or
agreement executed pursuant hereto or thereto by any of the Investor Indemnitees.  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.

 

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5.2           Indemnification
by Investor. In consideration of the Company’s execution and delivery of this Agreement, and in addition to all of the
Investor’s other obligations under this Agreement, the Investor shall, and does hereby agree to, defend, protect, indemnify
and hold harmless the Company, and all of the Company’s subsidiaries, and each Person who controls the Company within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and the officers, directors, partners,
members, employees and agents of each of them (collectively, the “Company Indemnitees”), from and against
any and all Claims, and the Investor agrees to reimburse the Company Indemnitees, or any of them, for any and all Indemnified Liabilities,
suffered or incurred by the Company Indemnitees, or any of them, as a result of, or arising out of, or relating to: (a) any
untrue statement or alleged untrue statement of a material fact contained in the Registration Statement for the registration of
the Shares as originally filed or in any amendment thereof, or in any related prospectus, or in any amendment thereof or supplement
thereto, or arising out of or which are based upon the omission or alleged omission to state therein a material fact required to
be stated therein or necessary to make the statements therein not misleading, but only to the extent that any such untrue statement
or alleged untrue statement or omission or alleged omission was in connection with information furnished to the Company by Investor
specifically for inclusion therein; provided, however, that the Investor will not be liable in any such case to the
extent that any such Indemnified Liabilities arise out of or are based upon any such untrue statement or alleged untrue statement
or omission or alleged omission made therein by the Company; (b) any misrepresentation or breach of any representation or warranty
made by the Investor in this Agreement or any other certificate, instrument or document contemplated hereby or thereby; (c) any
breach of any covenant, agreement or obligation of the Investor contained in this Agreement or any other certificate, instrument
or document contemplated hereby or thereby; and (d) any Claim brought or made against the Company Indemnitees, or any of them,
not arising out of any action or inaction of a Company Indemnitee, and arising out of or resulting from the execution, delivery,
performance or enforcement of this Agreement or any other instrument, document or agreement executed pursuant hereto or thereto
by any of the Company Indemnitees.  To the extent that the foregoing undertaking by the Investor may be unenforceable for
any reason, the Investor shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities,
which is permissible under applicable law.

 

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5.3           Notice
of Claim. For purposes of this Article V, a party that is subject to a Claim and entitled to indemnification hereunder is sometimes
hereinafter referred to as the “Indemnitee,” and the party having the obligation to indemnify the other
is sometimes hereinafter referred to as the “Indemnitor.” Promptly after receipt by an Indemnitee of
notice of the commencement of any Claim involving an Indemnified Liability, such Indemnitee shall, if an Indemnified Liability
in respect thereof is to be made against any Indemnitor, deliver to the Indemnitor a written notice of the commencement thereof;
provided, however, that the failure to so notify the Indemnitor: (i) will not relieve the Indemnitor of liability under this Article V,
unless and to the extent the Indemnitor did not otherwise learn of such Claim and such failure results in the forfeiture by the
Indemnitor of substantial rights and defenses; and (ii) will not, in any event, relieve the Indemnitor from any obligations to
the Indemnitee, other than those indemnity obligations provided in this Article V.  In the case of parties indemnified
pursuant to Section 5.1 above, counsel to the Indemnitee shall be selected by the Company, and, in the case of parties indemnified
pursuant to Section 5.2 above, counsel to the Indemnitee shall be selected by the Investor. An Indemnitor may participate,
at its own expense, in the defense of any such Claim; provided, however, that counsel to the Indemnitor shall not
(except with the consent of the Indemnitee) also be counsel to the Indemnitee. In no event shall the Indemnitor be liable for fees
and expenses of more than one counsel (in addition to any local counsel) separate from their own counsel for all Indemnitees in
connection with any one action or separate but similar or related actions in the same jurisdiction arising out of the same general
allegations or circumstances. The Indemnitee shall cooperate fully with the Indemnitor in connection with any negotiation or defense
of any Claim, and the Indemnitee shall furnish to the Indemnitor all information reasonably available to the Indemnitee which relates
to such Claim. The Indemnitor shall keep the Indemnitee fully apprised at all times as to the status of the defense or any settlement
negotiations with respect thereto. An Indemnitor will not, without the prior written consent of the Indemnitee, settle or compromise
or consent to the entry of any judgment with respect to any pending or threatened Claim in respect of which indemnification or
contribution may be sought under this Agreement (whether or not the Indemnitees are actual or potential parties to such Claim)
unless: (i) such settlement, compromise or consent includes an unconditional release of each Indemnitee from all liability
arising out of such Claim; and (ii) such settlement, compromise or consent does not include a statement as to or an admission
of fault, culpability or a failure to act by or on behalf of any Indemnitee.  Following indemnification as provided for hereunder,
the Indemnitor shall be subrogated to all rights of the Indemnitee with respect to all third parties, firms or corporations relating
to the matter for which indemnification has been made.

 

5.4           Contribution.
In the event that the indemnity provided in Section 5.1 or Section 5.2 is unavailable to or insufficient to hold harmless
an Indemnitee for any reason, the Company and the Investor, as applicable, severally agree to contribute to the aggregate Indemnified
Liabilities to which the Company and the Investor may be subject, as applicable, in such proportion as is appropriate to reflect
the relative benefits received by the Company on the one hand and by the Investor on the other from transactions contemplated by
this Agreement. If the allocation provided by the immediately preceding sentence is unavailable for any reason, the Company and
the Investor severally shall contribute in such proportion as is appropriate to reflect not only such relative benefits but also
the relative fault of the Company on the one hand and of the Investor on the other in connection with the statements or omissions
which resulted in such Indemnified Liabilities as well as any other relevant equitable considerations. Benefits received by the
Company shall be deemed to be equal to the total proceeds from the offering (net of underwriting discounts and commissions but
before deducting expenses) received by it, and benefits received by the Investor shall be deemed to be equal to the total discounts
received by the Investor. Relative fault shall be determined by reference to, among other things, whether any untrue or any alleged
untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information provided
by the Company on the one hand or the Investor on the other, the intent of the parties and their relative knowledge, access to
information and opportunity to correct or prevent such untrue statement or omission. The Company and the Investor agree that it
would not be just and equitable if contribution were determined by pro rata allocation or any other method of allocation which
does not take account of the equitable considerations referred to above. The aggregate amount of Indemnified Liabilities incurred
by an Indemnitee and referred to above in this Article V shall be deemed to include any legal or other expenses reasonably
incurred by such Indemnitee in investigating, preparing or defending against any litigation, or any investigation or proceeding
by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue
statement or omission or alleged omission. Notwithstanding the provisions of this Section 5.4, the Investor shall not be required
to contribute any amount in excess of the amount by which the Purchase Price for Shares actually purchased pursuant to this Agreement
exceeds the amount of any damages which the Investor has otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.
For purposes of this Article V, each Person who controls the Investor within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act and each director, officer, employee and agent of the Investor shall have the same rights
to contribution as the Investor, and each Person who controls the Company within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act, each officer of the Company who shall have signed the Registration Statement and each
director of the Company shall have the same rights to contribution as the Company, subject in each case to the applicable terms
and conditions of this Section 5.4.

 

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5.5           Remedies.
The remedies provided for in this Article V are not exclusive and shall not limit any rights or remedies which may otherwise
be available to any Indemnitee.

 

5.6           Survival.
The obligations of the parties to indemnify or make contribution under this Article V shall survive termination of this Agreement.

 

ARTICLE
VI

COVENANTS OF THE COMPANY

 

6.1           Registration
Rights. The Company shall cause the Registration Rights Agreement to remain in full force and effect and the Company shall
comply in all material respects with the terms thereof.

 

6.2           Listing
of Common Stock. The Company shall maintain the Common Stock’s authorization for quotation on a Principal Market, including
the OTC Markets.

 

6.3           Exchange
Act Registration. The Company will cause its Common Stock to continue to be registered under the Exchange Act, will file in
a timely manner all reports and other documents required of it as a reporting company under the Exchange Act and will not take
any action or file any document (whether or not permitted by Exchange Act or the rules thereunder) to terminate or suspend such
registration or to terminate or suspend its reporting and filing obligations under said Exchange Act.

 

6.4           Transfer
Agent Instructions. Not later than two (2) business days after each Advance Notice Date and prior to each Closing and the effectiveness
of the Registration Statement and resale of the Common Stock by the Investor, the Company will deliver instructions to its transfer
agent to issue shares of Common Stock free of restrictive legends.

 

6.5           Corporate
Existence. The Company will take all steps necessary to preserve and continue the corporate existence of the Company.

 

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6.6           Notice
of Certain Events Affecting Registration; Suspension of Right to Make an Advance. The Company will immediately notify the Investor
upon its becoming aware of the occurrence of any of the following events in respect of a Registration Statement or related prospectus
relating to an offering of Registrable Securities: (i) receipt of any request for additional information by the SEC or any other
Federal or state governmental authority, during the period of effectiveness of the Registration Statement, for amendments or supplements
to the Registration Statement or related prospectus; (ii) the issuance by the SEC or any other Federal or state governmental authority
of any stop order suspending the effectiveness of the Registration Statement or the initiation of any proceedings for that purpose;
(iii) receipt of any notification with respect to the suspension of the qualification or exemption from qualification of any of
the Registrable Securities for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; (iv)
the happening of any event that makes any statement made in the Registration Statement or related prospectus or any document incorporated
or deemed to be incorporated therein by reference untrue in any material respect or that requires the making of any changes in
the Registration Statement, related prospectus or such other documents so that, in the case of the Registration Statement, it will
not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary
to make the statements therein not misleading, and that in the case of the related prospectus, it will not contain any untrue statement
of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading; and (v) the Company’s reasonable determination
that a post-effective amendment to the Registration Statement would be appropriate, in which event the Company will promptly make
available to the Investor any such supplement or amendment to the Registration Statement and related prospectus. The Company shall
not deliver to the Investor any Advance Notice during the continuation of any of the foregoing events.

 

6.7           Expectations
Regarding Advance Notices. Within ten (10) days after the commencement of each calendar quarter occurring subsequent to the
commencement of the Commitment Period, the Company must notify the Investor, in writing, as to its reasonable expectations as to
the dollar amount it intends to raise during such calendar quarter, if any, through the issuance of Advance Notices. Such notification
shall constitute only the Company’s good faith estimate and shall in no way obligate the Company to raise such amount, or
any amount, or otherwise limit its ability to deliver Advance Notices.

 

6.8           Intentionally
Deleted.

 

6.9           Consolidation;
Merger.  The Company shall not, at any time after the Effective Date, effect any merger or consolidation of the Company
with or into, or a transfer of all or substantially all the assets of the Company to, another entity (a “Consolidation
Event”), unless the resulting successor or acquiring entity (if not the Company) assumes by written instrument the
obligation to deliver to the Investor such shares of stock and/or securities as the Investor is entitled to receive pursuant to
this Agreement.

 

6.10         Issuance
of the Company’s Common Stock.  The sale of the shares of Common Stock by the Company to the Investor hereunder
shall be made in accordance with the provisions and requirements of the Securities Act and Regulation D and any applicable state
securities law.

 

6.11         Expenses. 
The Company, whether or not the transactions contemplated hereunder are consummated or this Agreement is terminated, will pay all
expenses incident to the performance of its obligations hereunder, including, without limitation: (i) the preparation, printing
and filing of the Registration Statement and each amendment and supplement thereto, of each related prospectus and of each amendment
and supplement thereto; (ii) the preparation, issuance and delivery of any Shares issued pursuant to this Agreement; (iii)
all fees and disbursements of the Company’s counsel, accountants and other advisors; (iv) the qualification of the Shares
under securities laws in accordance with the provisions of this Agreement, including filing fees in connection therewith; (v) the
fees and expenses incurred in connection with the listing or qualification of the Shares for trading on the Principal Market; or
(vi) filing fees of the SEC, the Principal Market and any other regulatory or governmental body or authority.

 

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6.12         Compliance
with Laws. The Company will not, directly or indirectly, take any action designed to cause or result in, or that constitutes
or might reasonably be expected to constitute, the stabilization or manipulation of the price of any security of the Company or
which caused or resulted in, or which would in the future reasonably be expected to cause or result in, stabilization or manipulation
of the price of any security of the Company.

 

6.13         Opinion
of Counsel. Prior to the date of the first Advance Notice, the Investor shall have received an opinion letter from counsel
to the Company reasonably acceptable to the Investor, containing, at a minimum, the opinions set forth in Exhibit “C”
attached hereto.

 

6.14         Review
of Public Disclosures.  None of the public disclosures made by the Company, including, without limitation, press releases,
investor relations materials, and scripts of analysts meetings and calls will contain any untrue statements of material fact, nor
will they omit to state any material fact required to be stated therein necessary to make the statements made in light of the circumstances
under which they were made, not misleading.

 

6.15         Opinion
of Counsel Concerning Resales.  Provided that the Investor’s resale of Common Stock received pursuant to this Agreement
may be freely sold by the Investor either pursuant to an effective Registration Statement, in accordance with Rule 144, or
otherwise, the Company shall obtain for the Investor, at the Company’s expense, any and all opinions of counsel which may
be required by the Company’s transfer agent to issue such shares free of restrictive legends, or to remove legends from such
shares.

 

6.16         Sales.
Without the written consent of the Investor, the Company will not, directly or indirectly, offer to sell, sell, contract to sell,
grant any option to sell or otherwise dispose of any shares of Common Stock (other than the Shares offered pursuant to the provisions
of this Agreement) or securities convertible into or exchangeable for Common Stock, warrants or any rights to purchase or acquire
Common Stock, during the period beginning on the 5th Trading Day immediately prior to an Advance Notice Date and ending on the
2nd Trading Day immediately following the corresponding Advance Settlement Date.

 

6.17         Insider
Trading. Notwithstanding any other provision of this Agreement, the Company shall not deliver an Advance Notice during any
period in which the Investor is in possession of material non-public information.

 

ARTICLE
VII

CONDITIONS FOR ADVANCE AND CONDITIONS
FOR CLOSING

 

The right of the Company
to deliver an Advance Notice and the obligations of the Investor hereunder to acquire Shares and pay for Shares of the Company’s
Common Stock is subject to the satisfaction by the Company, on each Advance Notice Date and on each Advance Settlement Date
(a “Condition Satisfaction Date”), of each of the following conditions:

 

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7.1           Accuracy
of the Company’s Representations and Warranties.  The representations and warranties of the Company shall be true
and correct in all material respects.

 

7.2           Registration
of the Common Stock with the SEC.  The Company shall have filed with the SEC a Registration Statement with respect to
the resale of the Registrable Securities in accordance with the terms of the Registration Rights Agreement. As set forth in the
Registration Rights Agreement, the Registration Statement shall have been declared effective by the SEC and shall remain effective
on each Condition Satisfaction Date, and: (i) neither the Company nor the Investor shall have received notice that the SEC has
issued or intends to issue a stop order with respect to the Registration Statement, or that the SEC otherwise has suspended or
withdrawn the effectiveness of the Registration Statement, either temporarily or permanently, or intends or has threatened to do
so (unless the SEC’s concerns have been addressed and the Investor is satisfied, in its sdole discretion, that the SEC no
longer is considering or intends to take such action); and (ii) no other suspension of the use or withdrawal of the effectiveness
of the Registration Statement or related prospectus shall exist. The Registration Statement must have been declared effective by
the SEC prior to the first Advance Notice Date.

 

7.3           Authority. 
The Company shall have obtained all permits and qualifications required by any applicable state for the offer and sale of the Shares,
or shall have the availability of exemptions therefrom.  The sale and issuance of the Shares shall be legally permitted by
all laws and regulations to which the Company is subject.

 

7.4           No
Material Notices. None of the following events shall have occurred and be continuing: (i) receipt by the Company
of any request for additional information from the SEC or any other federal or state governmental, administrative or self regulatory
authority during the period of effectiveness of the Registration Statement, the response to which would require any amendments
or supplements to the Registration Statement or related prospectus; (ii) the issuance by the SEC or any other federal or state
governmental authority of any stop order suspending the effectiveness of the Registration Statement or the initiation of any proceedings
for that purpose; (iii) receipt by the Company of any notification with respect to the suspension of the qualification or
exemption from qualification of any of the Shares for sale in any jurisdiction or the initiation or threatening of any proceeding
for such purpose; (iv) the occurrence of any event that makes any statement made in the Registration Statement or related
prospectus, or any document incorporated or deemed to be incorporated therein by reference, untrue in any material respect or that
requires the making of any changes in the Registration Statement, related Prospectus or documents so that, in the case of the Registration
Statement, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein not misleading, and that in the case of the related prospectus, it will not
contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances under and as of the date which they were made, not misleading; and
(v) the Company’s reasonable determination that a post-effective amendment to the Registration Statement would be required.

 

7.5           Fundamental
Changes. There shall not exist any fundamental changes to the information set forth in the Registration Statement which would
require the Company to file a post-effective amendment to the Registration Statement.

 

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7.6           Performance
by the Company.  The Company shall have performed, satisfied and complied in all material respects with all covenants,
agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Company at or prior to
each Condition Satisfaction Date.

 

7.7           No
Injunction.  No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered,
promulgated or endorsed by any court or governmental authority of competent jurisdiction that prohibits or directly and adversely
affects any of the transactions contemplated by this Agreement, and no proceeding shall have been commenced that may have a Material
Adverse Effect.

 

7.8           No
Suspension of Trading in or Delisting of Common Stock.  The Common Stock is trading on a Principal Market and all of the
Shares issuable pursuant to such Advance Notice will be listed or quoted for trading on such Principal Market and the Investor
believes, in good faith, that trading of the Common Stock on a Principal Market will continue uninterrupted for the foreseeable
future.  The issuance of Shares with respect to the applicable Advance Notice will not violate the shareholder approval requirements
of the Principal Market.  The Company shall not have received any notice threatening the continued listing of the Common Stock
on the Principal Market.

 

7.9           Authorized. 
There shall be a sufficient number of authorized but unissued and otherwise unreserved shares of Common Stock for the issuance
of all of the Shares issuable pursuant to such Advance Notice.

 

7.10         Executed
Advance Notice.  The Investor shall have received the Advance Notice executed by an officer of the Company and the representations
contained in such Advance Notice shall be true and correct as of each Condition Satisfaction Date.

 

7.11         Consecutive
Advance Notices.  Except with respect to the first Advance Notice, the Company shall have delivered all Shares relating
to all prior Advances.

 

ARTICLE
VIII

DUE DILIGENCE REVIEW; NON-DISCLOSURE
OF NON-PUBLIC INFORMATION

 

8.1           Due
Diligence Review. Prior to the filing of the Registration Statement, the Company shall make available for inspection and review
by the Investor, advisors to and representatives of the Investor and any underwriter participating in any disposition of the Registrable
Securities on behalf of the Investor pursuant to the Registration Statement, any such Registration Statement or amendment or supplement
thereto, or any blue sky, NASD, FINRA, or other filing, all financial and other records, all SEC Documents and other filings with
the SEC, and all other corporate documents and properties of the Company as may be reasonably necessary or required by the Investor
and any such advisors, representatives and underweriters, and cause the Company’s officers, directors and employees to supply
all such information requested by the Investor or any such representative, advisor or underwriter in connection with such Registration
Statement (including, without limitation, in response to all questions and other inquiries reasonably made or submitted by any
of them), prior to and from time to time after the filing and effectiveness of the Registration Statement, for the sole purpose
of enabling the Investor and such representatives, advisors and underwriters and their respective accountants and attorneys to
conduct initial and ongoing due diligence with respect to the Company and the accuracy of the Registration Statement.

 

    	20

    	 

    

 

8.2           Company
Non-Public Information.

 

(a)          Nothing
herein shall require the Company to disclose non-public information to the Investor or its advisors or representatives, unless
prior to disclosure of such information, the Company identifies such information as being non-public information and provides the
Investor, such advisors and representatives with the opportunity to accept or refuse to accept such non-public information for
review. The Company may, as a condition to disclosing any non-public information hereunder, require the Investor and its advisors
and representatives to enter into a confidentiality agreement in form reasonably satisfactory to the Company and the Investor.

 

(b)          The
Company represents that it does not disseminate non-public information in violation of the Exchange Act or Securities Act to any
investors who purchase stock in the Company in a public offering, to money managers or to securities analysts, provided, however,
that notwithstanding anything herein to the contrary, the Company will immediately notify the advisors and representatives of the
Investor and, if any, underwriters, of any event or the existence of any circumstance (without any obligation to disclose the specific
event or circumstance) of which it becomes aware, constituting non-public information (whether or not requested of the Company
specifically or generally during the course of due diligence by such persons or entities), which, if not disclosed in the prospectus
included in the Registration Statement would cause such prospectus to include a material misstatement or to omit a material fact
required to be stated therein in order to make the statements therein, in light of the circumstances in which they were made, not
misleading. Nothing contained in this Article VIII shall be construed to mean that such persons or entities other than the
Investor (without the written consent of the Investor prior to disclosure of such information) may not obtain non-public information
in the course of conducting due diligence in accordance with the terms of this Agreement and nothing herein shall prevent any such
persons or entities from notifying the Company of their opinion that based on such due diligence by such persons or entities, that
the Registration Statement contains an untrue statement of material fact or omits a material fact required to be stated in the
Registration Statement or necessary to make the statements contained therein, in light of the circumstances in which they were
made, not misleading.

 

ARTICLE
IX

CHOICE OF LAW/JURISDICTION

 

This Agreement shall
be governed by and interpreted in accordance with the laws of the State of Florida, without regard to the principles of conflict
of laws.  The parties further agree that any action between them shall be heard in a federal or state court in Broward County,
Florida, and expressly consent to the jurisdiction and venue of the state courts in and for the 17th Judicial Circuit,
sitting in Broward County, Florida and the United States District Court for the Southern District of Florida, for the adjudication
of any civil action asserted pursuant to this paragraph.

 

ARTICLE
X

ASSIGNEMNT;
TERMINATION

 

10.1         Assignment. 
Neither this Agreement nor any rights of the parties hereto may be assigned or delegated to any other Person.

 

    	21

    	 

    

 

10.2         Termination.

 

(a)          This
Agreement and the obligations of Investor to make Advances hereunder shall terminate on the earlier to occur of: (i) twenty-four
(24) months after the Registration Statement is declared effective; or (ii) six (6) months after the “Late Effecitve Deadline”
(as such term is defined in the Registration Rights Agreement), if the Registration Statement has not been declared effective by
such date.

 

(a)          This
Agreement and the obligation of the Investor to make an Advance to the Company pursuant to this Agreement shall terminate permanently
(including with respect to an Advance Settlement Date that has not yet occurred) in the event that: (i) there shall occur
any stop order or suspension of the effectiveness of the Registration Statement for an aggregate of fifty (50) Trading Days, other
than due to the acts of the Investor, during the Commitment Period (provided, however, that this termination provision shall not
apply to any period commencing upon the filing of a post-effective amendment to such Registration Statement and ending upon the
date on which such post effective amendment is declared effective by the SEC); or (ii) the Company shall at any time fail
to comply with any of the terms, covenants or provisions of this Agreement or the Registration Rights Agreement on the part of
the Company to comply with, and such failure is not cured within twenty (20) days after receipt of written notice from the Investor.

 

(b)          Nothing
in this Section 10.2 shall be deemed to release the Company from any liability for any breach under this Agreement, or to
impair the rights of the Investor to compel specific performance by the Company of its obligations under this Agreement or the
Registration Rights Agreement.  The indemnification provisions contained in Article V shall survive termination hereunder.

 

ARTICLE
XI

NOTICES

 

Any notices,
consents, waivers, or other communications required or permitted to be given under the terms of this Agreement must be in writing
and in each case properly addressed to the party to receive the same in accordance with the information below, and will be deemed
to have been delivered: (i) if mailed by certified mail, return receipt requested, postage prepaid and properly addressed to the
address below, then three (3) business days after deposit of same in a regularly maintained U.S. Mail receptacle; or (ii) if mailed
by Federal Express, UPS or other nationally recognized overnight courier service, next business morning delivery, then one (1)
business day after deposit of same in a regularly maintained receptacle of such overnight courier; or (iii) if hand delivered,
then upon hand delivery thereof to the address indicated on or prior to 5:00 p.m., EST, on a Trading Day. Any notice hand delivered
after 5:00 p.m., EST, shall be deemed delivered on the following Trading Day. Notwithstanding the foregoing, notice, consents,
waivers or other communications referred to in this Agreement may be sent by facsimile, e-mail, or other method of delivery, but
shall be deemed to have been delivered only when the sending party has confirmed (by reply e-mail or some other form of written
confirmation) that the notice has been received by the other party.  The addresses and facsimile numbers for such communications,
except for Advance Notices which shall be delivered in accordance with Section 2.1(b) hereof, shall be:

 

    	22

    	 

    

 

	If to the Company, to:	Cono Italiano, Inc.
	 	10 Main Street
	 	Keyport, New Jersey 07735
	 	Attention:	Mitchell Brown, President
	 	Telephone:	(732) 241-2699
	 	Facsimile:	(732) 728-0314
	 	E-Mail: mitchhb1@comcast.net
	 	 
	With a copy to:	Lucosky Brookman LLP
	 (which shall not constitute notice)	33 Wood Avenue South, 6th Floor
	 	Iselin, New Jersey 08830
	 	Attention:	Joseph Lucosky, Esq.
	 	Telephone:	(732) 395-4400
	 	Facsimile:	(732) 395-4401
	 	E-Mail:	jlucosky@lucbro.com
	 	 
	If to the Investor:	TCA Global Credit Master Fund, LP
	 	1404 Rodman Street
	 	Hollywood, Florida 33020
	 	Attention:	Robert Press, Director
	 	Telephone:	(786) 323-1650
	 	Facsimile:	(786) 323-1651
	 	E-Mail: bpress@trafcap.com
	 	 
	With a copy to:	David Kahan, P.A.
	 (which shall not constitute notice)	3125 W. Commercial Blvd., Suite 100
	 	Ft. Lauderdale, Florida 33309
	 	Telephone:	(954) 548-3930
	 	Facsimile:	(954) 548-3910
	 	E-Mail:	david@dkpalaw.com

 

ARTICLE
XII

MISCELLANEOUS

 

12.1         Execution;
Counterparts. This Agreement may be executed in one or more counterparts, all of which taken together shall be deemed and considered
one and the same Agreement, and same shall become effective when counterparts have been signed by each party and each party has
delivered its signed counterpart to the other party. In the event that any signature is delivered by facsimile transmission or
by e-mail delivery of a “.pdf” format file or other similar format file, such signature shall be deemed an original
for all purposes and shall create a valid and binding obligation of the party executing same with the same force and effect as
if such facsimile or “.pdf” signature page was an original thereof.

 

12.2         Entire
Agreement; Amendments.  This Agreement, together with the Registration Rights 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, and the instruments referenced herein, including the Registration Rights Agreement,
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, the Investor makes no representation, warranty, covenant or undertaking with respect to such matters. 
No provision of this Agreement may be waived or amended other than by an instrument in writing signed by the party to be charged
with enforcement.

 

    	23

    	 

    

 

12.3         Reporting
Entity for the Common Stock.  The reporting entity relied upon for the determination of the trading price or trading volume
of the Common Stock on any given Trading Day for the purposes of this Agreement shall be Bloomberg, L.P. or any successor thereto. 
The written mutual consent of the Investor and the Company shall be required to employ any other reporting entity.

 

12.4         Fees.

 

(a)          Legal
and Administrative Fee.  Each of the parties shall pay its own fees and expenses (including the fees of any attorneys,
accountants, appraisers or others engaged by such party) in connection with this Agreement and the transactions contemplated hereby,
except that the Company shall pay to Investor, upon the execution of this Agreement by the Company, a fee of $7,500 to cover the
Investor’s legal and administrative costs and expenses in connection this Agreement, $5,000 of which the Investor hereby
acknowledges was paid by the Company prior to the date hereof.

 

(b)          Due
Diligence Fees. The Company shall pay to Investor, upon execution of this Agreement by the Company, a fee of $12,500 to cover
the Investor’s due diligence costs and expenses in connection this Agreement.

 

(c)          Advance
Fee. On each Advance Settlement Date, the Company shall pay to the Investor the Advance Fee with respect to each Advance made
hereunder, which Advance Fee shall be deducted by Investor out of the gross proceeds of each Advance.

 

(d)          Facility
Fee. 

 

(i)          Share
Issuance. The Company shall pay to Investor a fee for structuring the facility contemplated hereby by issuing to Investor that
number of shares of the Company’s Common Stock that equal to a dollar amount equal to $52,500.00 (the “Share
Value”). For purposes of determining the number of shares issuable to Investor under this Section 12.4(d) (the “Facility
Fee Shares”), the Company’s Common Stock shall be valued at the VWAP as of the close of the business day immediately
prior to the date the Company executes this Agreement (the “Valuation Date”). The Investor shall confirm
to the Company in writing, the VWAP for the Common Stock as of the Valuation Date, and the corresponding number of Shares issuable
to the Investor based on such price. The Company shall instruct its transfer agent to issue certificates representing the Facility
Fee Shares issuable to the Investor immediately upon the Company’s execution of this Agreement, and shall cause its transfer
agent to deliver such certificates to Investor within within three (3) Trading Days from the date the Company executes this Agreement.
In the event such certificates representing the Facility Fee Shares issuable hereunder shall not be delivered to the Investor within
said three (3) Trading Day period, same shall be an immediate default under this Agreement and Investor shall have no obligation
to make any Advances hereunder until such default is cured. The Facility Fee Shares, when issued, shall be deemed to be validly
issued, fully paid, and non-assessable shares of the Company’s Common Stock. The Facility Fee Shares shall be deemed fully
earned as of the date the Company executes this Agreement, regardless of the amount of Advances, if any, that the Company is able
to, or chooses to, request hereunder.  The Facility Fee Shares shall be deemed Registrable Securities hereunder and shall
be included on any registration statement filed by the Company after the date hereof, unless such shares may be resold without
any limitation of any kind pursuant to Rule 144.

 

    	24

    	 

    

 

(ii)         Adjustments.
It is the intention of the Company and Investor that the value of the Facility Fee Shares on a date that is nine (9) months after
the Valuation Date (the “Nine Month Valuation Date”) shall be equal to the Share Value. Valuation of
the Facility Fee Shares at the Nine Month Valuation Date shall be undertaken by Investor using the VWAP of the Common Stock for
the five (5) Trading Days immediately prior to the Nine Month Valuation Date, as reported by Bloomberg L.P. In the event the value
of the Facility Fee Shares issued to Investor under this Section 12.4(d) (including any proceeds received by the Investor from
sales of the Facility Fee Shares at any time prior to the Nine Month Valuation Date, if any), at the Nine Month Valuation Date,
is less than the Share Value, then the Investor shall so notify the Company and the Company hereby agrees to either: (i) immediately
pay such shortfall in cash to the Investor; or (ii) immediately take all required action necessary or required in order to cause
the issuance of additional shares of the Company’s Common Stock to Investor such that at the Nine Month Valuation Date, the
Investor shall have been issued Facility Fee Shares having an aggregate value, using the valuation methodology set forth above,
equal to the Share Value. In the event the value of the Facility Shares issued to Investor under this Section 12.4(d) (including
any proceeds received by the Investor from sales of the Facility Fee Shares at any time prior to the Nine Month Valuation Date),
at the Nine Month Valuation Date, is more than the Share Value, then the Investor shall so notify the Company and the Investor
hereby agrees to return to the Company such number of Facility Fee Shares such that at the Nine Month Valuation Date, the Investor
shall only retain Facility Fee Shares (or cash proceeds from the sale of Facility Fee Shares) having an aggregate value, using
the valuation methodology set forth above, equal to the Share Value. In the event an additional issuance is required at the Nine
Month Valuation Date, the Company shall instruct its transfer agent to issue certificates representing such additional Facility
Fee Shares to the Investor immediately subsequent to the Investor’s notification to the Company that additional shares are
issuable hereunder, and the Company shall in any event cause its transfer agent to deliver such certificates to Investor within
three (3) Trading Days following the date Investor notifies the Company that additional shares are to be issued hereunder. In the
event such certificates representing such additional shares issuable hereunder shall not be delivered to the Investor within said
three (3) Trading Day period, same shall be an immediate default under this Agreement and Investor shall have no obligation to
make any Advances hereunder until such default is cured.

 

12.5         Brokerage. 
Each of the parties hereto represents that it has had no dealings in connection with this transaction with any finder or broker
who will demand payment of any fee or commission from the other party.  The Company on the one hand, and the Investor, on
the other hand, agree to indemnify the other against and hold the other harmless from any and all liabilities to any person claiming
brokerage commissions or finder’s fees on account of services purported to have been rendered on behalf of the indemnifying
party in connection with this Agreement or the transactions contemplated hereby.

 

12.6         Confidentiality. 
If for any reason the transactions contemplated by this Agreement are not consummated, each of the parties hereto shall keep confidential
any information obtained from any other party (except information publicly available or in such party’s domain prior to the
date hereof, and except as required by court order) and shall promptly return to the other parties all schedules, documents, instruments,
work papers or other written information without retaining copies thereof, previously furnished by it as a result of this Agreement
or in connection herein.

 

    	25

    	 

    

 

[SIGNATURES ON THE FOLLOWING PAGE]

 

    	26

    	 

    

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be executed as of the date and year set forth above.

 

	 	COMPANY:
	 	 
	 	CONO ITALIANO, INC.
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

	 	INVESTOR:
	 	 
	 	TCA GLOBAL CREDIT MASTER FUND, LP
	 	 	 
	 	By:	TCA Global Credit Fund GP, Ltd., its general partner

 

	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	27

    	 

    

 

EXHIBIT “A”

 

FORM OF ADVANCE NOTICE

 

[CONO ITALIANO, INC. LETTERHEAD]

 

The undersigned, ________________________,
hereby certifies, with respect to the sale of shares of Common Stock of Cono Italiano, Inc. (the “Company”)
issuable in connection with this Advance Notice, which Advance Notice is being delivered pursuant to the Committed Equity Facility
between the Company and TCA Global Credit Master Fund, LP dated as of February 27, 2012 (the “Agreement”),
as follows:

 

1.          The
undersigned is the duly elected _______________________ of the Company.

 

2.          There
are no fundamental or material changes to the information set forth in the Registration Statement which would require the Company
to file a post-effective amendment to the Registration Statement.

 

3.          The
Company has performed all of the covenants and agreements to be performed by the Company under the Agreement, and the Company has
complied in all material respects with all obligations and conditions contained in the Agreement on or prior to the Advance Notice
Date, and the Company shall continue to perform and comply with all covenants and agreements to be performed by the Company through
the applicable Advance Settlement Date. All conditions under the Agreement to the delivery of this Advance Notice are satisfied
as of the date hereof. Since the date of the Company’s last financial statements, there has been no Material Adverse Change.

 

4.          The
undersigned hereby represents, warrants and covenants that it has made all filings (“SEC Filings”) required
to be made by it pursuant to applicable securities laws (including, without limitation, all filings required under the Securities
Exchnage Act of 1934). All SEC Filings and other public disclosures made by the Company, including, without limitation, all press
releases, analysts meetings, calls, etc. (collectively, the “Public Disclosures”), have been reviewed
and approved for release by the Company’s attorneys or general counsel and, if containing financial information, the Company’s
independent certified public accountants. None of the Company’s Public Disclosures contain any 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, in the light
of the circumstances under which they were made, not misleading.

 

5.          The
Advance requested by this Advance Notice is for the sale of __________ Shares.

 

6.          9.99%
of the outstanding Common Stock of the Company as of the date hereof is _____________.

 

7.          The
sale of the number of Shares requested by this Advance Notice does not exceed the Ownership Limitation, the Registration Limitation,
the Maximum Advance Amount or the Commitment Amount.

 

    	 

    	 

    

 

The undersigned has
executed this Advance Notice as of the _____ day of _____________, 20___.

 

CONO ITALIIANO, INC.

 

By:_____________________________

Name:___________________________

Title:____________________________

 

________________________________________________________________

 

Please deliver this Advance Notice by mail, e-mail or facsimile
with a follow up phone call to:

____________________________

____________________________

____________________________

____________________________

 

    	 

    	 

    

 

EXHIBIT “B”

 

FORM OF SETTLEMENT DOCUMENT

 

Via E-Mail and Facsimile

Cono Italiano, Inc.

Attn: CEO

Fax: _________________

E-Mail: mitchhb1@comcast.net

 

Below please find the settlement information with respect
to the Advance Notice dated:___________

 

	1.	(a) Amount of Advance Notice:	$
	 	 
	(b) Amount of Advance Notice after adjusting for Ownership Limitation, Registration Limitation, Maximum Advance Amount and Committed Amount, if applicable:	$
	 	 	 
	2. 	Market Price: (VWAP of the Common Stock during the relevant Pricing Period of ________________ to __________________).	$
	 	 	 
	3. 	Purchase Price (Market Price X 95%) per share:	$
	 	 	 
	4. 	Number of Shares due to Investor computed by dividing 1(b) above by 3 above:	 

 

Please issue the number of Shares due to the Investor to
the account of the Investor as follows:

______________________

______________________

______________________

 

	 	Sincerely,
	 	 
	 	TCA Global Credit Master Fund, LP

 

Approved by:

 

CONO ITALIANO, INC.

 

By:_________________________

Name:______________________

Title:_______________________

 

    	 

    	 

    

 

EXHIBIT “C”

 

REQUIRED OPINIONS

 

1.        
The Company is a corporation validly existing and in good standing under the laws of Nevada, with corporate power and authority
to own, lease and operate its properties and to conduct its business as described in the Company’s latest Form 10-K or 10-Q
(or similar form for filing a quarterly or annual report) filed by the Company under the Securities Exchange Act of 1934, as amended,
(the “Exchange Act”) and the rules and regulations of the SEC thereunder (the “Public Filings”)
and to enter into and perform its obligations under the Committed Equity Facility Agreement (the “Agreement”).
The Company is also duly qualified as a foreign corporation to do business and is in good standing in every jurisdiction in which
the nature of the business conducted by it as described in the Public Filings makes such qualification necessary.

 

2.        
The Company has the requisite corporate power and authority to enter into and perform its obligations under the Agreement and to
issue the Shares in accordance with their terms.  The execution and delivery of the Agreement by the Company and the consummation
by it of the transactions contemplated thereby have been duly authorized by all necessary corporate action, and no further consent
or authorization of the Company or its Board of Directors or stockholders is required.  The Agreement, and each document executed
or delivered in connection therewith, has each been duly executed and delivered, and the Agreement, and each document executed
or delivered in connection therewith, each constitutes valid and binding obligations of the Company, enforceable against the Company
in accordance with their respective terms, except as my 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.

 

3.        
The Shares are duly authorized and, upon issuance in accordance with the terms of the Agreement, will be duly and validly issued,
fully paid and non-assessable, free of any liens, encumbrances and preemptive or similar rights contained, to our knowledge, in
any agreement filed by the Company as an exhibit to the Company’s Public Filings.

 

4.        
The execution, delivery and performance of the Agreement by the Company will not: (i) result in a violation of the Company’s
Certificate of Incorporation or By-Laws; (ii) conflict with, or constitute a default (or an event that 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 or, indenture by which the Company or any of its assets or properties is bound, including, without limitation,
and agreement or document filed by the Company as an exhibit to the Company’s Public Filings; or (iii) to our knowledge,
result in a violation of any foreign, federal, state or local law, rule or regulation, order, judgment or decree applicable to
the Company.

 

5.        
To our knowledge, and other then as set forth in the Public Filings, there are no legal or governmental proceedings pending to
which the Company is a party or of which any property or assets of the Company is subject which is required to be disclosed in
any Public Filings.EXHIBIT 10.1

	 

AMENDMENT NO. 1

TO

PURCHASE AND SALE AGREEMENT

 

            This constitutes Amendment No. 1 to that certain Purchase and Sale Agreement (the
“Agreement”), dated as of April 18, 2012, by and between AllEnergy Corporation, a Delaware
corporation (“Buyer”), and Gerald D. Holden, an individual resident of the State of Texas (“Seller”).

 

            For good and adequate consideration, the receipt and adequacy of which is hereby
acknowledged, Buyer and Seller hereby agree, as follows:

 

            A.        Section 2.01 of the Agreement is hereby deleted in its entirety and replaced with
the following:

 

“2.01 - Purchase Price. The purchase price (the “Purchase Price”) payable by Buyer
for the Properties shall be Two Hundred Fifty Thousand Dollars ($250,000.00).

 

                        The Purchase Price shall be payable, as follows:

 

                                    (a)       upon the mutual execution of this Agreement, the sum of Fifty
Thousand Dollars ($50,000.00) cash, in immediately available funds;

 

                                    (b)       on or before May 17, 2012, the sum of Fifty Thousand Dollars
($50,000.00) cash, in immediately available funds; and

 

                                    (c)       on or before the Closing Date (defined below), the sum of One
Hundred Fifty Thousand Dollars ($150,000.00) cash, in immediately
available funds, subject to the provisions of Section 6.01(c) below.”

 

            B.        Section 6.01(c) of the Agreement is hereby deleted in its entirety and replaced
with the following:

 

“(c)Seller and Buyer shall have entered into an agreement to re-work the
Well on the Lease, in a mutually acceptable form, pursuant to which Seller would
place $50,000 of the Purchase Price in a separate bank account, the sole signatory on
which shall be Dean E. Sukowatey, for use in such re-work efforts.”

 

            C.        A new Section 6.01(d) shall be added to the Agreement, as follows:

 

“(d)Seller shall have obtained the permit relating to the pending permit
application relating to the injection well to which the Consent to Inject Salt Water
described in Exhibit F relates (the ‘Permit’).  The date on which the Permit is issued
is referred to as the ‘Permit Date’.”

 

            D.        A new Article VI-A shall be added to the Agreement, as follows:

 

                                                                             “ARTICLE VI-A

                                                                     FURTHER AGREEMENT

 

Buyer and Seller specifically agree that, should the Permit not have been
issued on or before the close of business on August 16, 2012, Seller shall return the
portion of the Purchase Price already paid to him by Buyer.  The return of such funds
to Buyer by Seller shall be made by wire transfer to a bank account designated by
Buyer within three (3) business days.”

 

            E.        Section 7.01 of the Agreement is hereby deleted in its entirety and replaced with
the following:

 

“7.01 - Closing. Unless the parties hereto agree otherwise and subject to the
conditions stated in this Agreement, the consummation of the transactions
contemplated hereby (herein called the “Closing”) shall be held at the offices of Dan
M. Fergus, Jr., Esq., 400 Pine Street, Suite 765, Abilene, Texas 79601, at 2:00 p.m.,
CDT, on that date that is three (3) business days immediately following the Permit
Date.  The date on which closing occurs is referred to herein as the ‘Closing Date’.”

 

            F.        Section 7.02(c) of the Agreement is hereby deleted in its entirety and replaced
with the following:

 

“(c)Buyer shall pay One Hundred Fifty Thousand Dollars ($150,000.00)
of the Purchase Price to Seller by wire transfer in immediately available funds.”

 

            G.       A new Section 9.01(b-1) shall be added to the Agreement, as follows:

 

“(b-1)By Buyer if the Permit shall not have been issued by the close of
business on August 16, 2012.”

 

            In all other aspects, the Agreement is ratified and affirmed this 11th day of May, 2012.

 

            BUYER:                                                        SELLER:

 

            ALL ENERGY CORPORATION

                                                                                    /s/ GERAL HOLDEN

                                                                                    Gerald D. Holden

            By: /s/ DEAN E. SUKOWATEY

                        Dean E. Sukowatey

                        President
	 

 

PURCHASE AND SALE AGREEMENT

 

            This Purchase and Sale Agreement (this “Agreement”) dated as of the 18th day of April,
2012, is executed by All Energy Corporation, a Delaware corporation (“Buyer”), and Gerald D.
Holden, an individual resident of the State of Texas (“Seller”).

 

            In consideration of the mutual promises contained herein, the benefits to be derived by each
party hereunder and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Seller and Buyer agree as follows:

 

ARTICLE I

PURCHASE AND SALE

 

            1.01 - Purchase and Sale. Subject to the terms and conditions of this Agreement, Seller
agrees to sell and convey to Buyer, or Assigns, and Buyer agrees to purchase and pay for the
following described assets (hereinafter referred to as the “Properties”):

 

                        (a)       The interests described in Exhibit “A” hereto, in and to the oil and gas lease
described in Exhibit “A” hereto (the “Lease”) insofar as they cover the land (the “Lands”) also
described in Exhibit “A” hereto, together with corresponding undivided interests in (i) all rights,
privileges, benefits, and powers conferred upon the holder of the Lease with respect to the use and
occupation of the surface of the Lands that may be necessary, convenient, or incidental to the
possession and enjoyment of the Lease, (ii) all rights in respect of any pooled or unitized acreage
located in whole or in part within the Lands by virtue of the Lease, including rights to production
from the pool or unit allocated to any Lease being a part thereof, regardless of whether such
production is from the Lands, (iii) all rights, options, titles, and interests of Seller granting Seller the
right to obtain, or otherwise earn interests within the Lands no matter how earned, (iv) all tenements,
hereditaments, and appurtenances belonging to any of the foregoing, and (v) any and all geological
data and reports, subject to all applicable licensing and other agreements and all restrictions on
transfer, including but not limited to all well logs, core reports, seismic data, interpreted maps,
contour maps, isopach maps, etc.;

 

                        (b)       All permits, licenses, servitudes, rights-of-way, division orders, gas purchase
and sale agreements, including without limitation gas contracts, crude oil purchase and sale
agreements (wherein Seller is a selling party), surface leases, farmin agreements, farmout
agreements, bottom hole agreements, acreage contribution agreements, operating agreements, unit
agreements, processing agreements, options, leases of equipment or facilities, and other contracts,
agreements, and rights that are owned by Seller in whole or in part, and that are appurtenant to the
Properties or used or held for use in connection with the ownership or operation of the Properties
or with the production, treatment, sale, or disposal of water, hydrocarbons and associated substances
therefrom or thereon; and

 

                        (c)       All of the real, personal and mixed property used in the operation of the
Properties (whether located on or off the Properties, but excluding all vehicles used in the operation
of the Properties) owned by Seller in whole of in part or credited to the joint account of Seller
including, but not limited to (i) the well (“Well”) described on Exhibit “B” hereto, all wellhead
equipment, fixtures (including, but not limited to, field separators and liquid extractors), pipe, casing,
and tubing; (ii) all production, gathering, treating, processing, compression, dehydration, salt water
disposal, injection, gathering line and pipeline equipment and facilities; (iii) all tanks, machines,
equipment, tools, dies, vessels and other facilities; and

 

                        (d) All of the files, records, documents, correspondence and data now in the
possession or control of Seller that relates to the items described in sub-paragraphs (a), (b) or (c)
above, without limitation (the “Records”).

 

            1.02 - Effective Time. The purchase and sale of the Properties shall be effective as of 5:00
p.m. on April 18, 2012, local time at the location of the Properties (herein called the “Effective
Time”).

 

ARTICLE II

PURCHASE PRICE

 

            2.01 - Purchase Price. The purchase price (the “Purchase Price”) payable by Buyer for the
Properties shall be Two Hundred Fifty Thousand Dollars ($250,000.00).

 

            The Purchase Price shall be payable, as follows:

 

                        (a)       upon the mutual execution of this Agreement, the sum of Fifty Thousand
Dollars ($50,000.00) cash, in immediately available funds; and

 

                        (b)       on or before May 17, 2012, the Closing Date (defined below), the sum of Two
Hundred Thousand Dollars ($200,000.00) cash, in immediately available funds.

 

            2.02 - Adjustments to Purchase Price. The Purchase Price shall be subject to adjustment
as follows:

 

                        (a)       The Purchase Price shall be adjusted upward as follows:

 

                                    (i)        The value of all merchantable, allowable oil in storage at the Effective
Time, above the pipeline connection, which is sold and which is credited to the Properties and paid
to Buyer, such value to be the actual price received less taxes and deductions by the purchaser,

 

                                    (ii)        The amount of all verifiable expenditures under applicable operating
agreements or other similar arrangements or agreements and, in the absence of such agreements, such
expenses of the sort customarily billed thereunder, paid by Seller or any affiliate of Seller in
connection with the operation of the Properties in accordance with this Agreement for work actually
performed subsequent to the Effective Time;

 

                                    (iii)       An amount equal to all prepaid expenses attributable to the Properties
that are paid by Seller or any affiliate of Seller prior to the Closing Date (defined below) that inure
to the benefit of Buyer and that are, in accordance with generally accepted accounting principles,
attributable to the period after the Effective Time, including without limitation, prepaid ad valorem,
property, production, severance and similar taxes (but not including income taxes) based upon or
measured by the ownership of property or the production of hydrocarbons or the receipt of proceeds
therefrom; and

 

                                    (iv)      Any other amount agreed upon by Seller and Buyer.

 

                        (b)       The Purchase Price shall be adjusted downward as follows:

 

                                    (i)        An amount equal to all unpaid ad valorem, property, production,
severance and similar taxes and assessments (but not including income taxes) based upon or
measured by the ownership of property or the production of hydrocarbons or the receipt of proceeds
therefrom accruing to the Properties prior to the Effective Time;

 

                                    (ii)       The amount of all verifiable expenditures paid by Buyer for work
actually done and performed in connection with the Properties prior to the Effective Time;

 

                                    (iii)      Any reductions for Defective Interests as provided in Article V; and

 

                                    (iv)      Any other amount agreed upon by Seller and Buyer.

 

                                                                  ARTICLE III

REPRESENTATIONS AND WARRANTIES

 

            3.01 - Representations and Warranties of Seller. Except as provided below, Seller
represents and warrants to Buyer as follows:

 

                        (a)       Seller is an individual and is under no legal disbility with respect to his
execution and performance of this Agreement.

 

                        (b)       Except as provided for or disclosed in Exhibit “C” attached hereto and made
a part hereof, since April 1, 2012, there has not been and will not be:

 

                                    (i)        Any material damage, destruction or loss to or of Properties, whether
or not covered by insurance;

 

                                    (ii)       Any sale, lease or other disposition of Properties, except as permitted
by the terms of this Agreement;

 

                                    (iii)       Any mortgage, pledge or grant of a lien or security interest in any of
the Properties, other than in the ordinary course of business (except any such encumbrance that will
be released at or before the Closing); or

 

                                    (iv)      Any contract or commitment to do any of the foregoing.

 

                        ( c)      To the knowledge of Seller there are no material defects in the personal
property and fixtures to be conveyed to Buyer pursuant to the terms hereof which would prevent the
continued operation of the Properties in accordance with prior practice.

 

                        (d)       To the knowledge of Seller, all material royalties (other than royalties held
in suspense), rentals and other payments due under the Lease have been properly and timely paid,
all conditions necessary to keep the Seller’s Lease in force have been fully performed. No notices
have been received by Seller of any claim to the contrary and the Seller’s Lease is in full force and
effect.

 

                        (e)       Seller is not obligated by virtue of any prepayment arrangement under any
contract for the sale of hydrocarbons and containing a “take or pay” or similar provision or a
production payment or any other arrangement to deliver hydrocarbons produced from the Properties
at some future time without then or thereafter receiving full payment therefor. Seller has not
produced a share of gas greater than its ownership percentage and Seller is under no obligation to
reduce its share of production under any gas balancing agreement or similar contract to allow
under-produced parties to come back into balance.

 

                        (f)        All ad valorem, property, production, severance and similar taxes and
assessments based on or measured by the ownership of property or the production of hydrocarbons
or the receipt of proceeds therefrom on the Properties have been properly paid and all such taxes and
assessments which become due and payable prior to the Effective Time shall be properly paid by
Seller.

 

                        (g)       To the knowledge of Seller, all material valid laws, regulations and orders of
all governmental agencies having jurisdiction over the Properties have been and shall continue to
be complied with until the Closing. To the best of Seller’s knowledge, all material necessary permits
from governmental agencies having jurisdiction in connection with the Properties have been obtained
and have been timely, properly and accurately made and will continue to be timely, properly and
accurately made through Closing. To the knowledge of Seller, all plugged wells, if any, located on
the Properties have been properly plugged and there are no abandoned unplugged wellbores located
on the Properties which good oil field practice would require plugging.

 

                        (h)       Seller has incurred no liability, contingent or otherwise, for brokers’ or
finders’ fees relating to the transactions contemplated by this Agreement for which Buyer shall have
any responsibility whatsoever.

 

                        (i)        Except as disclosed on Exhibit “D’ attached hereto and made a part hereof,
to the knowledge of Seller, none of the Properties is subject to any top leases or reversionary
interests, and there exists no unrecorded document or agreement which may result in impairment or
loss of Seller’s ability to convey the Properties.

 

                        (j)        With respect to the “Basic Documents” (defined below), in all material
respects to the knowledge of Seller: (i) all of such Basic Documents are in full force and effect and
are the valid and legally binding obligations of the parties thereto, (ii) Seller is not in breach or
default with respect to any material obligations pursuant to any such Basic Document or any
regulations incorporated therein or governing same; (iii) all material payments (including, without
limitation, royalties, delay rentals, shut-in royalties, and joint interest or other billings under unit or
operating agreements) due thereunder have been made by Seller or will be made by Seller prior to
Closing; (iv) no other party to any Basic Document (or any successor in interest thereto) is in breach
or default with respect to any of its material obligations thereunder; and (v) neither Seller nor any
other party to any Basic Document has given or threatened to give notice of any action to terminate,
cancel, rescind or procure a judicial reformation of any Basic Document or any provision thereof.
As used herein the term “Basic Documents” shall mean the Seller’s Lease, contracts for the sale and
purchase of gas produced from the Properties (“Gas Contracts”), farmout, dry hole, bottom hole,
acreage contribution, purchase and acquisition agreements, area of mutual interest agreements, salt
water disposal agreements, servicing contracts, easement and/or right-of-way agreements, unitization
or pooling agreements and all other material executory contracts and agreements relating to the
Properties.

 

                        (k)       There are no Properties with respect to which (i) deliveries of natural gas
dedicated to interstate commerce have been terminated or diverted therefrom without there having
been obtained appropriate abandonment orders or other required regulatory approvals or (ii) Seller
is not receiving on a current basis the payments required under the terms of the Gas Contracts, or (iii)
Seller is not receiving now, or may not receive for the period of time from the effective date of the
information contained in the data furnished by Seller to Buyer until Closing, the price (per MMBTU)
for natural gas reflected in the data furnished by Seller to Buyer. During the time period from the
effective date of the information contained in the data furnished by Seller to Buyer until the date of
execution of this Agreement, no purchaser of natural gas under the Gas Contracts has (i) curtailed
(other than seasonal curtailment) its takes of natural gas, or (ii) given notice (either written or verbal)
that it desires to amend any of the Gas Contracts with respect to price or quantity of deliveries under
take-or-pay provisions, to such extent that any such action may materially affect the economic value
of the reserves attributable to the Properties affected by such action.

 

                        (l)        (i) Seller has not caused or allowed the generation, treatment, storage, disposal
or release of hazardous substances on the Properties except in accordance with local, state, and
federal statutes, ordinances, rules and regulations, (ii) The Properties operated by Seller, and to the
knowledge of Seller, all of the Properties not operated by Seller have been operated in compliance
with all applicable local, state, and federal statutes, ordinances, rules and regulations concerning the
handling of hazardous substances, (iii) Seller has complied with all laws, regulations and orders of
all governmental agencies having jurisdiction over the Properties in connection with laws regarding
protection of the environment, (iv) all material necessary permits have been obtained from
governmental agencies having jurisdiction over the Properties in connection with laws regarding
protection of the environment, (v) Seller has not received notice of any proceeding, claim or lawsuit
relating to the breach of any law regarding protection of the environment and (vi) to the best of
Seller’s knowledge no hazardous substance has ever been disposed of on the Properties except in
accordance with local, state, and federal statutes, ordinances, rules and regulations.

 

                        (m)      Except as may be set forth in Exhibit “E” attached hereto and made a part
hereof, on the date hereof no suit, action or other proceeding is pending before any court or
governmental agency to which Seller is a party and which might result in impairment or loss of
Seller’s title to any part of the Properties or that might hinder or impede operation of the Properties
and to the knowledge of Seller, no such suit, action or other proceeding is threatened. Seller shall
promptly notify Buyer of any such proceeding arising prior to the Closing.

 

            3.02 - Representations and Warranties of Buyer. Each Buyer for itself only separately
hereby represents and warrants to the Seller that:

 

                        (a)       Buyer is a corporation duly organized, validly existing and in good standing
under the laws of the State of Delaware.

 

                        (b)       Buyer has all requisite corporate power and authority to execute and deliver
this Agreement, to consummate the transactions contemplated hereby and to perform all the terms
and conditions hereof to be performed by it. The execution and delivery of this Agreement by Buyer,
the performance by Buyer of all the terms and conditions hereof to be performed by it and the
consummation of the transactions contemplated hereby have been duly authorized and approved by
the Board of Directors of Buyer. This Agreement has been duly executed and delivered by Buyer and
constitutes the valid and binding obligation of Buyer, enforceable against it in accordance with its
terms, except as such enforceability may be limited by bankruptcy, insolvency or other laws relating
to or affecting the enforcement of creditors’ rights generally and general principles of equity
(regardless of whether such enforceability is considered in a proceeding in equity or at law).

 

                        (c)       This Agreement and the execution and delivery hereof by Buyer does not, and
the fulfillment and compliance with the terms and conditions hereof and the consummation of the
transactions contemplated hereby will not conflict with, or require the consent of any person under,
any of the terms, conditions or provisions of the certificate of incorporation or bylaws of Buyer.

 

                        (d)       Buyer has or will have prior to the Closing Date, sufficient cash, available
lines of credit or other sources of immediately available funds to enable it to make the cash portion
of the Purchase Price at the Closing.

 

                        (e)       There is no action, suit, proceeding or governmental investigation or inquiry
pending, or to the knowledge of Buyer, threatened against Buyer or its subsidiaries or any of its
properties that might delay, prevent or hinder the consummation of the transactions contemplated
hereby.

 

ARTICLE VI 

COVENANTS

 

            4.01 - Covenants of Seller. Seller agrees with Buyer that:

 

                        (a)       Seller will, prior to Closing, make available to Buyer for examination, at a
Seller’s offices, title and other information relating to the Properties insofar as the same are in
Seller’s possession and will cooperate with Buyer in Buyer’s efforts to obtain, at Buyer’s expense,
such additional information relating to the Properties as Buyer may reasonably desire. Such
information shall include:

 

                                    (i)        Title opinions and title status reports pertaining to the Properties;

 

                                    (ii)       Copies of the Seller’s Lease, prior conveyances of the Properties,
unitization, pooling and operating agreements, division and transfer orders, mortgages, deeds of
trust, security agreements, chattel mortgages, financing statements and other encumbrances not
discharged and affecting the title to or the value of the Properties and all other information contained
in the land files of Seller and relating to the Properties;

 

                                    (iii)      Records relating to the payment of rentals, royalties and other
payments due under the Seller’s Lease;

 

                                    (iv)      Records relating to the payment of ad valorem, property, production,
severance, excise and similar taxes and assessments based on or measured by the ownership of
property or the production of hydrocarbons or the receipt of proceeds therefrom on the Properties;

 

                                    (v)       Ownership maps, surveys, logs and seismic information relating to the
Properties;

 

                                    (vi)      Copies of all purchase, sale, processing and transportation agreements
relating to the Properties;

 

                                    (vii)     Copies of all agreements including the leases, permits, easements,
licenses and orders relating to the Properties;

 

                                    (viii)    Production and operational records relating to the Properties, including
filings made with regulatory agencies;

 

                                    (ix)      Inventories of personal property and fixtures included in the
Properties; and

 

                                    (x)       Accounting records, and engineering and technical data, and geological
and geophysical data, relating to the Properties.

 

                        Seller shall permit Buyer, at Buyer’s expense, to inspect and photocopy such
information and records at any reasonable time but only to the extent, in each case, that Seller may
do so without violating any obligation of confidence or contractual commitment to a third party.
Seller shall not be obligated to furnish any updating abstracts, title opinions or additional title
information, but shall cooperate with Buyer in Buyer’s efforts to obtain, at Buyer’s expense, such
additional title information as Buyer may reasonably deem prudent.

 

                        (b)       After the Effective Time and prior to Closing, Seller has and will continue to
cause the Properties to be produced, operated and maintained in a good and workmanlike manner
consistent with prior practices, will not abandon any of the Properties, will maintain insurance now
in force with respect to the Properties, will pay or cause to be paid all costs and expenses in
connection therewith, will keep the Seller’s Lease in full force and effect and will perform and
comply with all the covenants and conditions contained in the Seller’s Lease and all agreements
relating to the Properties; provided, however, in the absence of Buyer’s written consent, Seller after
the Effective Time and prior to Closing shall not conduct or authorize any operation on the Seller’s
Lease requiring Authority for Expenditure approval by working interest owners.

 

                        (c)       Without the prior written consent of Buyer, Seller shall not enter into any new
agreements or commitments with respect to the Properties, will not modify, terminate or settle any
dispute arising out of any of the agreements relating to the Properties, including, without limitation,
the Basic Documents, and will not encumber, sell, transfer, assign, convey, farmout or otherwise
dispose of any of the Properties other than personal property which is replaced by equivalent
property or consumed in the operation of the Properties.

 

                        (d)       Seller shall immediately make requests of such third parties in compliance
with applicable agreements, that any required consents be given or waived and that any preferential
rights be waived; provided, however, nothing contained in this Section 4.01(d) shall require Seller
to pay money or undertake any additional legal obligation.

 

                        (e)       Seller shall permit Buyer’s authorized representatives to consult with Seller
and its agents and employees during reasonable business hours and to conduct, at Buyer’s sole risk
and expense, on-site inspections, tests and inventories of the Properties and inspect and examine all
well logs and geological and geophysical data relating to such properties.

 

                        (f)        Seller will use its best efforts to obtain the satisfaction of the conditions to
Closing set forth in Section 6.01 hereof.

 

            4.02 - Covenants of Buyer. Buyer covenants and agrees with Seller as follows:

 

                        (a)       Buyer will use its best efforts to obtain the satisfaction of the conditions to
Closing set forth in Section 6.02 hereof.

 

                        (b)       In the event that this Agreement is terminated or, if not terminated, until the
Closing, the confidentiality of any data or information received by Buyer regarding the business and
assets of Seller shall be maintained by Buyer.

 

ARTICLE V

TITLE MATTERS AND DEFECTIVE INTERESTS

 

            5.01 - Defensible Title.

 

                        (a)       As used herein, the term “Defensible Title” shall mean, as to the Properties
and each of them, such title which (i) is free and clear (except for Permitted Encumbrances) of
mortgages, liens, security interests, pledges, charges, encumbrances, claims, limitations,
irregularities, burdens or defects, and (A) is otherwise only subject to contractually binding
arrangements which are conventional and which are customarily experienced in the oil and gas
industry and (B) is not subject to any matters which will result in a breach of any warranty or
representation made by Seller hereunder; (ii) entitles Seller to receive not less than the “Net Revenue
Interests” set forth in Exhibit “A” and Exhibit “B” hereto of all oil, gas and associated liquid and
gaseous hydrocarbons produced, saved and marketed from the Properties, after deducting all royalty,
overriding royalty and other leasehold burdens (and such interest will not change in the future except
as disclosed on Exhibit “A” and Exhibit “B”.

 

                        (b)       (i)        Lessors’ royalties, overriding royalties and other burdens, reversionary
interests and similar burdens if the net cumulative effect of such burdens does not operate to reduce
the Net Revenue Interests of any of the Properties to less than the Net Revenue Interest set forth in
Exhibit “A”;

 

                                    (ii)       The term “Permitted Encumbrances” as used herein shall mean:
Preferential rights to purchase and required third party consents to assignments and similar
agreements with respect to which prior to Closing (A) waivers or consent are obtained from the
appropriate parties, (B) the appropriate time period for asserting such rights has expired without an
exercise of such rights, and (C) with respect to consent, such consent is not necessary to the validity
of an assignment to Buyer and need not be obtained prior to an assignment;

 

                                    (iii)      Liens for taxes or assessments not yet due or not yet delinquent or, if
delinquent, that are being contested in good faith in the normal course of business;

 

                                    (iv)      All rights to consent by, required notices to, filings with, or other
actions by governmental entities in connection with the sale or conveyance of oil and gas leases or
interests therein if the same are customarily obtained subsequent to such sale or conveyance;

 

                                    (v)       The terms and conditions of the Lease;

 

                                    (vi)      Rights of reassignment in the event of intended release or surrender
of any of the Properties;

 

                                    (vii)     Easements, rights-of-way, servitudes, permits, surface leases and other
rights in respect of surface operations, pipelines, grazing, logging, canals, ditches, reservoirs or the
like; and easements for streets, alleys, highways, pipelines, telephone lines, power lines, railways and
other easements and rights-of-way, on, over or in respect of any of the Properties;

 

                                    (viii)    Rights reserved to or vested in any municipality or governmental,
statutory or public authority to control or regulate any of the Properties in any manner, and all
applicable laws, rules and orders of any governmental authority;

 

                                    (ix)      Such Title Defects (defined below) or other defects as Buyer have
waived; and

 

                                    (x)       Liens released at Closing.

 

                        (c)       The term “Title Defect” as used herein shall mean any encumbrances,
encroachment, irregularity, defect in or objection to Seller’s title to the Properties (expressly
excluding Permitted Encumbrances), that alone or in combination with other defects renders Seller’s
title to the Properties less than Defensible Title.

 

ARTICLE VI

CONDITIONS TO CLOSING

 

            6.01 - Conditions to the Obligations of Buyer. The obligations of Buyer to proceed with
the Closing contemplated hereby are subject to the satisfaction on or prior to the Closing of all of
the following conditions, any one or more of which may be waived, in whole or in part, in writing
by Buyer:

 

                        (a)       The representations and warranties made herein by Seller shall be correct at
and as of the Closing as though such representations and warranties were made at and as of the
Closing, and the factual matters contained in any representation and warranty made by Seller “to
Seller’s knowledge,” or similar language, shall be true and correct at and as of Closing without
regard to Seller’s knowledge of same, and Seller shall have complied with all the covenants hereof
required by this Agreement to be performed by them at or prior to the Closing.

 

                        (b)       Seller shall have executed an assignment in favor of Buyer, which assignment
shall be in the form of Exhibit F, whereby Seller would assign all of his right, title and interest in and
to the Consent to Inject Salt Water described in Exhibit F.

 

                        (c)       Seller and Buyer shall have entered into an agreement to re-work the Well on
the Lease, in a mutually acceptable form, pursuant to which Seller would place $50,000 in a separate
bank account for use in such re-work efforts.

 

                        6.02 - Conditions to the Obligations of Seller. The obligations of Seller to proceed
with the Closing contemplated hereby are subject to the satisfaction on or prior to the Closing of all
of the following conditions, any one or more of which may be waived, in whole or in part, in writing
by Seller:

 

                        (a)       The representations and warranties made herein by Buyer shall be correct at
and as of the Closing as though such representations and warranties were made at and as of the
Closing, and Buyer shall have complied with all the covenants hereof required by this Agreement
to be performed by them at or prior to the Closing.

 

                        (b)       Seller shall have received a certificate dated the Closing Date of an executive
officer of Buyer certifying as to the matters specified in Section 6.02(a) hereof.

 

                        (c)       Seller shall have received from legal counsel for Buyer reasonably acceptable
to Seller an opinion, dated the Closing Date, in substantially the form attached as Exhibit “G” hereto
and made a part hereof.

 

                        (d)       Seller and Buyer shall have entered into an operating agreement, in a mutually
acceptable form, pursuant to which Seller would be paid $500.00 for well operating services.

 

ARTICLE VII

CLOSING

 

            7.01 - Closing. Unless the parties hereto agree otherwise and subject to the conditions stated
in this Agreement, the consummation of the transactions contemplated hereby (herein called the
“Closing”) shall be held at the offices of Seller, on May 17, 2012. The date on which closing occurs
is referred to herein as the “Closing Date.”

 

            7.02 - Closing Obligations. At the Closing, the following events shall occur, each being a
condition precedent to the others and each being deemed to have occurred simultaneously with the
others: 

 

                        (a)       Seller shall assign transfer and convey the Properties to Buyer. Seller shall
execute one or more assignments of all or part of the Properties to be conveyed by it, as may be
reasonably requested by Buyer.  Seller shall also execute such additional deeds, conveyances and
bills of sale as may be necessary to convey the Properties to Buyer, provided that any such additional
deeds, conveyances or bills of sale shall not warrant the condition of personal property but shall
warrant title by, through and under Seller. In addition to the foregoing, the instruments executed
pursuant to this Section 7.02(a) shall be executed in multiple originals and counterparts sufficient
to facilitate recording.

 

                        (b)       Seller and Buyer shall execute and deliver a settlement statement that shall
set forth the Closing Amount (as hereinafter defined) and each adjustment and the calculation of
such adjustments used to determine such amount. The term “Closing Amount” shall mean the
Purchase Price adjusted as provided in Section 2.02, using for such adjustments the best information
(including estimated data) then available.

 

                        (c)       Buyer shall pay Two Hundred Thousand Dollars ($200,000.00) of the
Purchase Price to Seller by wire transfer in immediately available funds.

 

                        (d)       Seller shall deliver to Buyer exclusive possession of the Properties.

 

                        (e)       Seller shall deliver to Buyer, and Buyer shall deliver to Seller, the opinions
and certificates referred to in Article VI hereof.

 

                        (f)        Seller and Buyer shall execute transfer orders or letters in lieu thereof
directing all purchasers of production to make payment to Buyer of proceeds attributable to
production from the Properties assigned to Buyer.

 

                        (g)       Seller shall deliver to Buyer all sums held in suspense by Seller for any reason
together with a report in sufficient detail to allow Buyer to determine the reasons such amounts are
held in suspense, and the Properties with respect to which such amounts are held in suspense.

 

ARTICLE VIII

OBLIGATIONS AFTER CLOSING 

 

            8.01 - Sales Taxes and Recording Fees. Buyer shall pay all sales taxes occasioned by the
sale of the Properties and all documentary, filing and recording fees required in connection with the
filing and recording of any assignments.

 

            8.02 - Further Assurances. After Closing, Seller and Buyer shall execute, acknowledge and
deliver or cause to be executed, acknowledged and delivered such instruments and take such other
action including payment of monies as may be necessary or advisable to carry out their obligations
under this Agreement and under any document, certificate or other instrument delivered pursuant
hereto or required by law.

 

            8.03 - Buyer’s Post-Closing Obligations. If at any time subsequent to the Closing, Buyer
comes into possession of money or property belonging to the Seller such money or other property
shall be promptly delivered to the Seller. By the consummation of the transactions contemplated
hereby, Buyer assumes all duties and obligations of the owner of the Properties which accrue or arise
from and after the Effective Time, and Buyer shall indemnify Seller from all loss, cost, expense
(including attorney’s fees and expenses), penalties and liabilities arising from Buyer’s failure to
perform such obligations.

 

            8.04 - Seller’s Post-Closing Obligations. If at any time subsequent to the Closing, Seller
comes into possession of money or property belonging to the Buyer such money or other property
shall be promptly delivered to the Buyer. Seller shall be responsible for and discharge all claims,
costs, expenses and liabilities with respect to the Properties which accrue or relate to the times prior
to the Effective Time, including all costs attributable to the operation of the Properties for work
actually performed and expense actually incurred prior to the Effective Time. Seller shall save
harmless and indemnify Buyer, its directors, officers and stockholders from all loss, cost, expense
(including attorney’s fees and expenses), penalties and liabilities from Seller’s failure to perform
such obligations.

 

            8.05 - Files and Records. At the Closing, Seller shall deliver all records relating to the
Properties.

 

            8.06 - Survival. The representations, warranties, covenants, agreements and indemnities
included or provided in Section 3.01(q), in Section 7.02(b), in this Article VIII, in Article X and in
the assignments and agreements to be delivered at the Closing shall survive the Closing. All other
representations, warranties, covenants and agreements contained in this Agreement shall survive
closing for two (2) years from the Closing Date.

 

ARTICLE IX

TERMINATION OF AGREEMENT

 

            9.01 - Termination. This Agreement and the transactions contemplated hereby may be
terminated in the following instances:

 

                        (a)       By Seller if the conditions set forth in Section 6.01 are not satisfied in all
material respects or waived prior to the Closing Date;

 

                        (b)       By Buyer if the conditions set forth in Section 6.02 are not satisfied in all
material respects or waived prior to the Closing Date; or

 

                        (c)       At any time by the mutual written agreement of Buyer and Seller.

 

            9.02 - Liabilities Upon Termination. If Closing does not occur due to Seller’s violation of
the terms of this Agreement, then Buyer may seek such legal or equitable remedies as Buyer may
desire, including, without limitation, damages for the breach or failure of any representation,
warranty, covenant or agreement contained herein and the right to enforce specific performance of
this Agreement. If Closing does not occur due to Buyer’s violation of the terms of this Agreement,
Seller may seek such legal or equitable remedies as Seller may desire, including, without limitation,
damages for the breach or failure of any representation, warranty, covenant or agreement contained
herein and the right to enforce specific performance of this Agreement.

 

ARTICLE X

GENERAL

 

            10.01 - Claims. Buyer shall be entitled to the rights and benefits of all claims Seller have
against third parties with respect to the Properties arising out of events occurring prior and
subsequent to the Effective Time including, without limitation, all rights and benefits under the Gas
Contracts. Seller shall cooperate with Buyer in the prosecution of such claims, but Buyer shall bear
all expenses related to the prosecution of such claims.

 

            10.02 - Expenses. All fees, costs and expenses incurred by Buyer or Seller in negotiating this
Agreement or in consummating the transactions contemplated by this Agreement shall be paid by
the party incurring the same including, without limitation, legal and accounting fees, costs and
expenses.

 

            10.03 - Notices. All communications required or permitted under this Agreement shall be
in writing, and any communications hereunder shall be deemed to have been duly made if delivered
by (i) hand, (ii) overnight delivery service, (iii) telecopy, or (iv) three days after being placed in first
class certified mail, postage prepaid, with return receipt requested to the following addresses:

 

                        All notices to Seller shall be delivered to:

 

                        Gerald D. Holden

                        ______________________

                        ______________________

                        ______________________

 

                        All notices to Buyer shall be delivered to:

 

                        All Energy Corporation

                        Attention: Dean E. Sukowatey

                        6165 N.W. 86th Street

                        Des Moines, Iowa 50131

 

            10.04 - Amendments. This Agreement may not be amended nor any rights hereunder waived
except by an instrument in writing signed by the party to be charged with such amendment or waiver
and delivered by such party to the party claiming the benefit of such amendment or waiver.

 

            10.05 - Headings. The headings of the articles and sections of this Agreement are for
guidance and convenience of reference only and shall not limit or otherwise affect any of the terms
or provisions of this Agreement.

 

            10.06 - Counterparts. This Agreement may be executed by Buyer and Seller in any number
of counterparts, each of which shall be deemed an original instrument, but all of which together shall
constitute but one and the same instrument.

 

            10.07 - References. References made in this Agreement, including use of a pronoun, shall
be deemed to include where applicable, masculine, feminine, singular or plural, individuals,
partnerships or corporations. As used in this Agreement, “person” shall mean any natural person,
corporation, partnership, trust, estate or other entity.

 

            10.08 - Governing Law. This Agreement and the transactions contemplated hereby shall be
construed in accordance with, and governed by, the laws of the State of Texas.

 

            10.09 - Entire Agreement. This Agreement (including the Exhibits hereto) constitutes the
entire understanding among the parties with respect to the subject matter hereof, superseding all
negotiations, prior discussions and prior agreements and understandings relating to such subject
matter.

 

            10.10 - Parties in Interest. This Agreement shall be binding upon and shall inure to the
benefit of, the parties hereto and, except as otherwise prohibited, their respective successors and
assigns; and except as otherwise stated herein, nothing contained in this Agreement, or implied
herefrom, is intended to confer upon any other person or entity any benefits, rights or remedies.

 

            10.11 - Assignment. Except as otherwise provided herein, Buyer and Seller may assign all
or any portion of their respective rights or delegate any portion of their duties hereunder, so long as
the respective assigning parties remain liable for the performance of their obligations hereunder.

 

            10.12 - Public Announcements. No party shall issue a press release or otherwise make any
public statements with respect to the transaction contemplated hereby, without the prior consent of
the other party; provided, however, that Buyer may, without the prior consent of Seller, issue a press
release or otherwise make public statements with respect to the transactions contemplated hereby,
should such press release or public statements be deemed, in good faith, necessary by Buyer to assure
its compliance with applicable securities laws.

 

            10.13 - Notices After Closing. Buyer and Seller hereby agree that each party shall notify the
other of its receipt, after each Closing Date, of any instrument, notification or other document
affecting the Properties while owned by such other party.

 

            10.14 - Severability. If a court of competent jurisdiction determines that any clause or
provision of this agreement is void, illegal or unenforceable, the other clauses and provisions of the
Agreement shall remain in full force and effect and the clauses and provisions which are determined
to be void, illegal or unenforceable shall be limited so that they shall remain in effect to the extent
permissible by law.

 

            IN WITNESS WHEREOF, the parties have executed or caused the Agreement to be executed
as of the day and year first above written.

 

            BUYER:                                                        SELLER:

 

            ALL ENERGY CORPORATION

                                                                                    /s/ GERALD HOLDEN

                                                                                    Gerald D. Holden

            By: /s/ DEAN E. SUKOWATEY

                        Dean E. Sukowatey

                        President

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