Document:

SECURITIES
PURCHASE AGREEMENT

 

This
Securities Purchase Agreement (this “Agreement”) is dated as of January 4, 2013, between Senesco Technologies,
Inc., a Delaware corporation (the “Company”), and each purchaser identified on the signature pages hereto (each,
including its successors and assigns, a “Purchaser” and collectively the “Purchasers”).

 

WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to an effective registration statement under the
Securities Act of 1933, as amended (the “Securities Act”), the Company desires to issue and sell to each Purchaser,
and each Purchaser, severally and not jointly, desires to purchase from the Company, securities of the Company as more fully described
in this Agreement.

 

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

 

ARTICLE
I.

DEFINITIONS

 

1.1          Definitions.
In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms have the
meanings set forth in this Section 1.1:

 

“Acquiring
Person” shall have the meaning ascribed to such term in Section 4.5.

 

“Action”
shall have the meaning ascribed to such term in Section 3.1(j).

 

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

 

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

 

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

 

“Closing”
means the closing of the purchase and sale of the Securities pursuant to Section 2.1.

 

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

 

    	 

    	 

    

 

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

 

“Common
Stock” means the common stock of the Company, par value $.01 per share, and any other class of securities into which
such securities may hereafter be reclassified or changed.

 

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

 

“Company
Counsel” means Morgan, Lewis & Bockius LLP, with offices located at 502 Carnegie Center, Princeton, NJ 08540.

 

“Disclosure
Schedules” means the Disclosure Schedules of the Company delivered concurrently herewith.

 

“Escrow
Agent” means Sichenzia Ross Friedman Ference LLP, with offices at 61 Broadway, 32nd Floor, New York, New
York 10006.

 

“Escrow
Agreement” means the escrow agreement entered into prior to the date hereof, by and among the Company, the Escrow Agent
and Purchasers pursuant to which the Purchasers shall deposit Subscription Amounts with the Escrow Agent to be applied to the
transactions contemplated hereunder.

 

“Evaluation
Date” shall have the meaning ascribed to such term in Section 3.1(r).

 

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

 

“Exempt
Issuance” means the issuance of (a) shares of Common Stock or options to employees, consultants, officers or directors
of the Company pursuant to any stock or option plan duly adopted for such purpose and in existence on the date of this Agreement
as such plan is constituted on the date of this Agreement, by a majority of the non-employee members of the Board of Directors
or a majority of the members of a committee of non-employee directors established for such purpose, unless otherwise agreed to
by the non-employee members of the Board of Directors and the Lead Investor, (b) securities upon the exercise or exchange of or
conversion of any Securities issued hereunder and/or other securities exercisable or exchangeable for or convertible into shares
of Common Stock issued and outstanding on the date of this Agreement or as disclosed in the SEC Reports, provided that such securities
have not been amended on or after the date of this Agreement to increase the number of such securities or to decrease the exercise
price, exchange price or conversion price of such securities (it being understood that such securities may be adjusted for anti-dilution
purposes in connection with this Agreement), and (c) securities issued pursuant to acquisitions or strategic transactions approved
by a majority of the disinterested directors of the Company, provided that any such issuance shall only be to a Person (or to
the equityholders of a Person) which is, itself or through its subsidiaries, an operating company or an owner of an asset in a
business synergistic with the business of the Company and shall provide to the Company additional benefits in addition to the
investment of funds, but shall not include a transaction in which the Company is issuing securities primarily for the purpose
of raising capital or to an entity whose primary business is investing in securities.

 

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

 

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

 

“Lead
Investor” shall have the meaning ascribed to such term in Section 4.12(a).

 

“Legend
Removal Date” shall have the meaning ascribed to such term in Section 4.1(c).

 

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

 

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

 

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

 

“Per
Share Purchase Price” equals $0.10, subject to adjustment for reverse and forward stock splits, stock dividends, stock
combinations and other similar transactions of the Common Stock that occur after the date of this Agreement but prior to the Closing
Date.

 

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

 

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

 

“Prospectus”
means the final prospectus filed for the Registration Statement.

 

“Prospectus
Supplement” means the supplement to the Prospectus complying with Rule 424(b) of the Securities Act that is filed with
the Commission and delivered by the Company to each Purchaser at the Closing.

 

“Purchaser
Party” shall have the meaning ascribed to such term in Section 4.8.

 

“Public
Information Failure” shall have the meaning ascribed to such term in Section 4.2(b).

 

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“Public
Information Failure Payments” shall have the meaning ascribed to such term in Section 4.2(b).

 

“Registration
Statement” means the effective registration statement with Commission file No. 333-170140 which registers the sale of
the Shares and the Warrants to the Purchasers.

 

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

 

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

 

“Rule
424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

“SEC
Reports” shall have the meaning ascribed to such term in Section 3.1(h).

 

“Securities”
means the Shares, the Warrants and the Warrant Shares.

 

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

 

“Shares”
means the shares of Common Stock issued to each Purchaser pursuant to this Agreement and excluding the Warrant Shares.

 

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

 

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

 

“Subsidiary”
means any subsidiary of the Company as set forth in the SEC Reports, and shall, where applicable, also include any direct or indirect
subsidiary of the Company formed or acquired after the date hereof.

 

“Trading
Day” means a day on which the principal Trading Market is open for trading.

 

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“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the
New York Stock Exchange, the OTC Bulletin Board or any OTC Markets Group Inc. market (or any successors to any of the foregoing).

 

“Transaction
Documents” means this Agreement, the Warrants, the Escrow Agreement and any other documents or agreements executed in
connection with the transactions contemplated hereunder.

 

“Transfer
Agent” means American Stock Transfer & Trust Co., LLC, the current transfer agent of the Company, with a mailing
address of 6201 – 15th Avenue, Brooklyn, NY 11219 and a facsimile number of (718) 236-2641, and any successor
transfer agent of the Company.

 

“Variable
Rate Transaction” shall have the meaning ascribed to such term in Section 4.12(b).

 

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

 

“Warrants”
means, collectively, the Common Stock purchase warrants delivered to the Purchasers at the Closing in accordance with Section
2.2(a) hereof, which Warrants shall be exercisable one year and one day from the Closing Date and have a term of exercise equal
to five years, in the form of Exhibit A attached hereto.

 

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

 

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ARTICLE
II.

PURCHASE AND SALE

 

2.1         Closing.
On the Closing Date, upon the terms and subject to the conditions set forth herein, substantially concurrent with the execution
and delivery of this Agreement by the parties hereto, the Company agrees to sell, and the Purchasers, severally and not jointly,
agree to purchase, up to an aggregate of $3,000,000 of Shares and Warrants. Each Purchaser shall deliver to the Escrow Agent,
via wire transfer or a certified check, immediately available funds equal to such Purchaser’s Subscription Amount as set
forth on the signature page hereto executed by such Purchaser and the Company shall deliver to each Purchaser its respective Shares
and a Warrant as determined pursuant to Section 2.2(a), and the Company and each Purchaser shall deliver the other items set forth
in Section 2.2 deliverable at the Closing. Upon satisfaction of the covenants and conditions set forth in Sections 2.2 and 2.3,
the Closing shall occur at the offices of Company Counsel or such other location as the parties shall mutually agree. 

 

2.2         Deliveries.

 

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

 

(i)          this
Agreement duly executed by the Company;

 

(ii)         a
legal opinion of Company Counsel, substantially in the form of Exhibit B attached hereto;

 

(iii)        a
copy of the irrevocable instructions to the Transfer Agent instructing the Transfer Agent to deliver on an expedited basis via
The Depository Trust Company Deposit or Withdrawal at Custodian system (“DWAC”) the number of Shares equal
to such Purchaser’s Subscription Amount divided by the Per Share Purchase Price, registered in the name of such Purchaser;

 

(iv)        a
Warrant registered in the name of such Purchaser to purchase up to a number of shares of Common Stock equal to 100% of such Purchaser’s
Shares, with an exercise price equal to $0.12, subject to adjustment therein (such Warrant certificate may be delivered within
three Trading Days of the Closing Date); and

 

(v)         the
Prospectus and Prospectus Supplement (which may be delivered in accordance with Rule 172 under the Securities Act).

 

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

 

(i)          this
Agreement duly executed by such Purchaser; and

 

(ii)         to
Escrow Agent, such Purchaser’s Subscription Amount by wire transfer to the account specified in the Escrow Agreement.

 

2.3         Closing
Conditions.

 

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

 

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(i)          the
accuracy in all material respects on the Closing Date of the representations and warranties of the Purchasers contained herein
(unless as of a specific date therein in which case they shall be accurate as of such date);

 

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

 

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

 

(b)          The
respective obligations of the Purchasers hereunder in connection with the Closing are subject to the following conditions being
met:

 

(i)          the
accuracy in all material respects when made and on the Closing Date of the representations and warranties of the Company contained
herein (unless as of a specific date therein);

 

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

 

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

 

(iv)        there
shall have been no Material Adverse Effect with respect to the Company since the date hereof; and

 

(v)         from
the date hereof to the Closing Date, trading in the Common Stock shall not have been suspended by the Commission or the Company’s
principal Trading Market (except for any suspension of trading of limited duration agreed to by the Company, which suspension
shall be terminated prior to the Closing , and, at any time prior to the Closing Date, trading in securities generally as reported
by Bloomberg L.P. shall not have been suspended or limited, or minimum prices shall not have been established on securities whose
trades are reported by such service, or on any Trading Market, nor shall a banking moratorium have been declared either by the
United States or New York State authorities nor shall there have occurred any material outbreak or escalation of hostilities or
other national or international calamity of such magnitude in its effect on, or any material adverse change in, any financial
market which, in each case, in the reasonable judgment of such Purchaser, makes it impracticable or inadvisable to purchase the
Securities at the Closing.

 

ARTICLE
III.

REPRESENTATIONS AND WARRANTIES

 

3.1           Representations
and Warranties of the Company. Except as set forth in the Disclosure Schedules annexed
hereto, the Company hereby makes the following representations and warranties to each Purchaser:

 

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(a)          Subsidiaries.
All of the direct and indirect subsidiaries of the Company are set forth on Schedule 3.1(a). The Company owns, directly or indirectly,
all of the capital stock or other equity interests of each Subsidiary free and clear of any Liens, and all of the issued and outstanding
shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar
rights to subscribe for or purchase securities.

 

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

 

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

 

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

 

(e)          Filings,
Consents and Approvals. Except as set forth on Schedule 3.1(e), the Company is not required to obtain any consent, waiver,
authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local
or other governmental authority or other Person in connection with the execution, delivery and performance by the Company of the
Transaction Documents, other than: (i) the filings required pursuant to Section 4.4 of this Agreement, (ii) the filing with the
Commission of the Prospectus Supplement, (iii) application(s) to each applicable Trading Market for the listing of the Shares
and Warrant Shares for trading thereon in the time and manner required thereby, (iv) such filings as are required to be made under
applicable state securities laws and (v) the filing of Form D with the Commission (collectively, the “Required Approvals”).

 

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(f)          Issuance
of the Securities; Registration. The Securities are duly authorized and, when issued and paid for in accordance with the applicable
Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the
Company. The Warrant Shares, when issued in accordance with the terms of the Warrants, will be validly issued, fully paid and
nonassessable, free and clear of all Liens imposed by the Company. The Company has reserved from its duly authorized capital stock
a number of shares of Common Stock initially issuable pursuant to this Agreement and the exercise of the Warrants. The Company
has prepared and filed the Registration Statement in conformity with the requirements of the Securities Act, which Registration
Statement became effective on November 9, 2010 (the “Effective Date”), including the Prospectus, and such amendments
and supplements thereto as may have been required to the date of this Agreement. The Registration Statement is effective under
the Securities Act and no stop order preventing or suspending the effectiveness of the Registration Statement or suspending or
preventing the use of the Prospectus has been issued by the Commission and no proceedings for that purpose have been instituted
or, to the knowledge of the Company, are threatened by the Commission; provided, however, the Registration Statement will no longer
be effective following the filing of the Company’s next Annual Report on Form 10-K unless the Company’s Common Stock
is traded on a national securities exchange at the time of such filing. The Company, if required by the rules and regulations
of the Commission, proposes to file the Prospectus, with the Commission pursuant to Rule 424(b). At the time the Registration
Statement and any amendments thereto became effective, at the date of this Agreement and at the Closing Date, the Registration
Statement and any amendments thereto conformed and will conform in all material respects to the requirements of the Securities
Act and did not and 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 the Prospectus and any amendments or supplements
thereto, at time the Prospectus or any amendment or supplement thereto was issued and at the Closing Date, conformed and will
conform in all material respects to the requirements of the Securities Act and did not and will not contain an untrue statement
of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading.

 

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

 

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(h)          SEC
Reports; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents required
to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof,
for the two years preceding the date hereof (or such shorter period as the Company was required by law or regulation to file such
material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, together with
the Prospectus and the Prospectus Supplement, being collectively referred to herein as the “SEC Reports”) on
a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration
of any such extension. As of their respective dates, the SEC Reports complied in all material respects with the requirements of
the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement
of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading. The Company has never been an issuer subject
to Rule 144(i) under the Securities Act. The financial statements of the Company included in the SEC Reports comply in all material
respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect
at the time of filing. Such financial statements have been prepared in accordance with United States generally accepted accounting
principles applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified
in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes
required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated Subsidiaries
as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case
of unaudited statements, to normal, immaterial, year-end audit adjustments.

 

(i)          Material
Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial statements included
within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the date hereof, (i) there
has been no event, occurrence or development that has had or that could reasonably be expected to result in a Material Adverse
Effect, (ii) the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued
expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected
in the Company’s financial statements pursuant to GAAP or disclosed in filings made with the Commission, (iii) the Company
has not altered its method of accounting, (iv) the Company has not declared or made any dividend or distribution of cash or other
property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock
and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except pursuant to existing Company
stock option plans. The Company does not have pending before the Commission any request for confidential treatment of information.
Except for the issuance of the Securities contemplated by this Agreement or as set forth on Schedule 3.1(i), no event, liability,
fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect
to the Company or its Subsidiaries or their respective businesses, properties, operations, assets or financial condition that
would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed
made that has not been publicly disclosed at least 1 Trading Day prior to the date that this representation is made.

 

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(j)          Litigation.
There is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the Company,
threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator,
governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”)
which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the
Securities or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse
Effect. Neither the Company nor any Subsidiary, nor any director or officer thereof, is or has been the subject of any Action
involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty.
There has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission
involving the Company or any current or former director or officer of the Company. The Commission has not issued any stop order
or other order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange
Act or the Securities Act.

 

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

 

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

 

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

 

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

 

(o)          Intellectual
Property. Except as set forth on Schedule 3.1(o), the Company and the Subsidiaries have, or have rights to use, all patents,
patent applications, trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses
and other intellectual property rights and similar rights necessary or required for use in connection with their respective businesses
as described in the SEC Reports and which the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual
Property Rights”). None of, and neither the Company nor any Subsidiary has received a notice (written or otherwise)
that any of, the Intellectual Property Rights has expired, terminated or been abandoned, or is expected to expire or terminate
or be abandoned, within two (2) years from the date of this Agreement. Neither the Company nor any Subsidiary has received, since
the date of the latest audited financial statements included within the SEC Reports, a written notice of a claim or otherwise
has any knowledge that the Intellectual Property Rights violate or infringe upon the rights of any Person, except as could not
have or reasonably be expected to not have a Material Adverse Effect. To the knowledge of the Company, all such Intellectual Property
Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights. The
Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all
of their intellectual properties, except where failure to do so could not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect.

 

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

 

(q)          Transactions
With Affiliates and Employees. Except as set forth on Schedule 3.1(q), none of the officers or directors of the Company or
any Subsidiary and, to the knowledge of the Company, none of the employees of the Company or any Subsidiary is presently a party
to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including
any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or
personal property to or from, providing for the borrowing of money from or lending of money to or otherwise requiring payments
to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director,
or any such employee has a substantial interest or is an officer, director, trustee, stockholder, member or partner, in each case
in excess of $120,000 other than for (i) payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses
incurred on behalf of the Company and (iii) other employee benefits, including stock option agreements under any stock option
plan of the Company.

 

(r)          Sarbanes-Oxley;
Internal Accounting Controls. The Company and the Subsidiaries are in compliance with any and all applicable requirements
of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and all applicable rules and regulations promulgated
by the Commission thereunder that are effective as of the date hereof and as of the Closing Date. The Company and the 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 GAAP 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.
The Company and the Subsidiaries have established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)
and 15d-15(e)) for the Company and the Subsidiaries and designed such disclosure controls and procedures to ensure that information
required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized
and reported, within the time periods specified in the Commission’s rules and forms. The Company’s certifying officers
have evaluated the effectiveness of the disclosure controls and procedures of the Company and the Subsidiaries as of the end of
the period covered by the most recently filed periodic report under the Exchange Act (such date, the “Evaluation Date”).
The Company presented in its most recently filed periodic report under the Exchange Act the conclusions of the certifying officers
about the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since
the Evaluation Date, there have been no changes in the internal control over financial reporting (as such term is defined in the
Exchange Act) of the Company and its Subsidiaries that have materially affected, or is reasonably likely to materially affect,
the internal control over financial reporting of the Company and its Subsidiaries.

 

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

 

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

 

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

 

(v)         Listing
and Maintenance Requirements. The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the
Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration
of the Common Stock under the Exchange Act nor has the Company received any notification that the Commission is contemplating
terminating such registration. Except as set forth on Schedule 3.1(v), the Company has not, in the 12 months preceding the date
hereof, received notice from any Trading Market on which the Common Stock is or has been listed or quoted to the effect that the
Company is not in compliance with the listing or maintenance requirements of such Trading Market. Except as set forth on Schedule
3.1(v), the Company is, and has no reason to believe that it will not in the foreseeable future continue to be, in compliance
with all such listing and maintenance requirements.

 

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

 

(x)          Disclosure.
Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company
confirms that neither it nor any other Person acting on its behalf has provided any of the Purchasers or their agents or counsel
with any information that it believes constitutes or might constitute material, non-public information which is not otherwise
disclosed in the Prospectus Supplement. The Company understands and confirms that the Purchasers will rely on the foregoing representation
in effecting transactions in securities of the Company. All of the disclosure furnished by or on behalf of the Company to the
Purchasers regarding the Company and its Subsidiaries, their respective businesses and the transactions contemplated hereby, including
the Disclosure Schedules to this Agreement, is true and correct and does not contain any untrue statement of a material fact or
omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which
they were made, not misleading. The press releases disseminated by the Company during the twelve months preceding the date of
this Agreement taken as a whole do not contain any untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were
made and when made, not misleading. The Company acknowledges and agrees that no Purchaser makes or has made any representations
or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 3.2 hereof.

 

(y)          No
Integrated Offering. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 3.2,
neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made
any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering
of the Securities to be integrated with prior offerings by the Company for purposes of (i) the Securities Act which would require
the registration of any such securities under the Securities Act, or (ii) any applicable stockholder approval provisions of any
Trading Market on which any of the securities of the Company are listed or designated.

 

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(z)           [RESERVED].

 

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

 

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

 

(cc)         Accountants.
The Company’s accounting firm is set forth in the SEC Reports. To the knowledge and belief of the Company, such accounting
firm (i) is a registered public accounting firm as required by the Exchange Act and (ii) shall express its opinion with respect
to the financial statements to be included in the Company’s Annual Report for the fiscal year ended June 30, 2013.

 

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

 

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(ee)         Acknowledgement
Regarding Purchaser’s Trading Activity. Anything in this Agreement or elsewhere herein to the contrary notwithstanding
(except for Sections 3.2(e) and 4.14 hereof), it is understood and acknowledged by the Company that: (i) none of the Purchasers
has been asked by the Company to agree, nor has any Purchaser agreed, to desist from purchasing or selling, long and/or short,
securities of the Company, or “derivative” securities based on securities issued by the Company or to hold the Securities
for any specified term; (ii) past or future open market or other transactions by any Purchaser, specifically including, without
limitation, Short Sales or “derivative” transactions, before or after the closing of this or future private placement
transactions, may negatively impact the market price of the Company’s publicly-traded securities; (iii) any Purchaser, and
counter-parties in “derivative” transactions to which any such Purchaser is a party, directly or indirectly, presently
may have a “short” position in the Common Stock, and (iv) each Purchaser shall not be deemed to have any affiliation
with or control over any arm’s length counter-party in any “derivative” transaction. The Company further understands
and acknowledges that (y) one or more Purchasers may engage in hedging activities at various times during the period that the
Securities are outstanding, including, without limitation, during the periods that the value of the Warrant Shares deliverable
with respect to Securities are being determined, and (z) such hedging activities (if any) could reduce the value of the existing
stockholders' equity interests in the Company at and after the time that the hedging activities are being conducted.  The
Company acknowledges that such aforementioned hedging activities do not constitute a breach of any of the Transaction Documents.

 

(ff)         Regulation
M Compliance.  The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly,
any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to
facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or, paid any compensation for soliciting
purchases of, any of the Securities, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase
any other securities of the Company, other than, in the case of clauses (ii) and (iii).

 

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

 

(hh)         U.S.
Real Property Holding Corporation. The Company is not and has never been a U.S. real property holding corporation within the
meaning of Section 897 of the Internal Revenue Code of 1986, as amended, and the Company shall so certify upon Purchaser’s
request.

 

(ii)           Bank
Holding Company Act. Neither the Company nor any of its Subsidiaries or Affiliates is subject to the Bank Holding Company
Act of 1956, as amended (the “BHCA”) and to regulation by the Board of Governors of the Federal Reserve System
(the “Federal Reserve”). Neither the Company nor any of its Subsidiaries or Affiliates owns or controls, directly
or indirectly, five percent (5%) or more of the outstanding shares of any class of voting securities or twenty-five percent or
more of the total equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve. Neither
the Company nor any of its Subsidiaries or Affiliates exercises a controlling influence over the management or policies of a bank
or any entity that is subject to the BHCA and to regulation by the Federal Reserve.

 

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

 

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

 

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

 

(b)          Understandings
or Arrangements. Such Purchaser is acquiring the Securities as principal for its
own account and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the
distribution of such Securities (this representation and warranty not limiting such Purchaser’s right to sell the Securities
pursuant to the Registration Statement or otherwise in compliance with applicable federal and state securities laws). Such Purchaser
understands that the Warrant Shares are “restricted securities” and have not been registered under the Securities
Act or any applicable state securities law. Such Purchaser is acquiring the Securities hereunder in the ordinary course of its
business.

 

(c)          Purchaser
Status. At the time such Purchaser was offered the Securities, it was, and as of
the date hereof it is, and on each date on which it exercises any Warrants, it will be either: (i) an “accredited investor”
as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii) a “qualified institutional
buyer” as defined in Rule 144A(a) under the Securities Act. Such Purchaser is not required to be registered as a broker-dealer
under Section 15 of the Exchange Act. 

 

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(d)          Reliance
on Exemptions. Each Purchaser understands that the Warrant Shares will be
issued to it upon exercise of a Warrant in reliance on specific exemptions from the registration requirements of United States
federal and state securities laws and that the Company is relying in part upon the truth and accuracy of, and such Purchaser’s
compliance with, the representations, warranties, agreements, acknowledgments and understandings of such Purchaser set forth herein
in order to determine the availability of such exemptions and the eligibility of such Purchaser to acquire the Warrant Shares.
Each Purchaser understands that no United States federal or state agency or any other government or governmental agency has passed
on or made any recommendation or endorsement of the Warrant Shares, or the fairness or suitability of the investment in the Warrant
Shares, nor have such authorities passed upon or endorsed the merits of the offering of the Warrant Shares

 

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

 

(f)          Certain
Transactions and Confidentiality. Other than consummating the transactions contemplated
hereunder, such Purchaser has not, nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser,
directly or indirectly executed any purchases or sales, including Short Sales, of the securities of the Company during the
period commencing as of the time that such Purchaser first received a term sheet (written or oral) from the Company or any other
Person representing the Company setting forth the material terms of the transactions contemplated hereunder and ending immediately
prior to the execution hereof. Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle
whereby separate portfolio managers manage separate portions of such Purchaser’s assets and the portfolio managers have
no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such Purchaser’s
assets, the representation set forth above shall only apply with respect to the portion of assets managed by the portfolio manager
that made the investment decision to purchase the Securities covered by this Agreement. Other than to other Persons party to this
Agreement, such Purchaser has maintained the confidentiality of all disclosures made to it in connection with this transaction
(including the existence and terms of this transaction). Notwithstanding the foregoing, for avoidance of doubt, nothing contained
herein shall constitute a representation or warranty, or preclude any actions, with respect to the identification of the availability
of, or securing of, available shares to borrow in order to effect Short Sales or similar transactions in the future.

 

(g)          No
Legal Advice From the Company. Each Purchaser acknowledges, that it had the opportunity
to review this Agreement and the transactions contemplated by this Agreement with his or its own legal counsel and investment
and tax advisors. Each Purchaser is relying solely on such counsel and advisors and not on any statements or representations of
the Company or any of its 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.

 

    	20

    	 

    

 

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

 

ARTICLE
IV.

OTHER AGREEMENTS OF THE PARTIES

 

4.1         Transfer
Restrictions on Warrant Shares. 

 

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

 

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

 

THIS
SECURITY HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE
UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF
WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED
IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

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The
Company acknowledges and agrees that a Purchaser may from time to time pledge pursuant to a bona fide margin agreement with a
registered broker-dealer or grant a security interest in some or all of the Warrant Shares to a financial institution that is
an “accredited investor” as defined in Rule 501(a) under the Securities Act and who agrees to be bound by the provisions
of this Agreement and, if required under the terms of such arrangement, such Purchaser may transfer pledged or secured Warrant
Shares to the pledgees or secured parties. Such a pledge or transfer would not be subject to approval of the Company and no legal
opinion of legal counsel of the pledgee, secured party or pledgor shall be required in connection therewith. Further, no notice
shall be required of such pledge. At the appropriate Purchaser’s expense, the Company will execute and deliver such reasonable
documentation as a pledgee or secured party of Warrant Shares may reasonably request in connection with a pledge or transfer of
the Warrant Shares.

 

(c)          Certificates
evidencing the Warrant Shares shall not contain any legend (including the legend set forth in Section 4.1(b) hereof), (i) while
a registration statement covering the resale of such security is effective under the Securities Act, (ii) following any sale of
such Warrant Shares pursuant to Rule 144, (iii) if such Warrant Shares are eligible for sale under Rule 144, without the requirement
for the Company to be in compliance with the current public information required under Rule 144 as to such Warrant Shares and
without volume or manner-of-sale restrictions, or (iv) if such legend is not required under applicable requirements of the Securities
Act (including judicial interpretations and pronouncements issued by the staff of the Commission). If all or any portion of a
Warrant is exercised at a time when there is an effective registration statement to cover the resale of the Warrant Shares, or
if such Warrant Shares may be sold under Rule 144 and the Company is then in compliance with the current public information required
under Rule 144, or if the Warrant Shares may be sold under Rule 144 without the requirement for the Company to be in compliance
with the current public information required under Rule 144 as to such Warrant Shares or if such legend is not otherwise required
under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff
of the Commission) then such Warrant Shares shall be issued free of all legends. The Company agrees that at such time as such
legend is no longer required under this Section 4.1(c), it will, no later than three Trading Days following the delivery by a
Purchaser to the Company or the Transfer Agent of a certificate representing Warrant Shares, as the case may be, issued with a
restrictive legend (such third Trading Day, the “Legend Removal Date”), deliver or cause to be delivered to
such Purchaser a certificate representing such shares that is free from all restrictive and other legends. The Company may not
make any notation on its records or give instructions to the Transfer Agent that enlarge the restrictions on transfer set forth
in this Section 4. Certificates for Warrant Shares subject to legend removal hereunder shall be transmitted by the Transfer Agent
to the Purchaser by crediting the account of the Purchaser’s prime broker with the Depository Trust Company System as directed
by such Purchaser.

 

(d)          In
addition to such Purchaser’s other available remedies, the Company shall pay to a Purchaser, in cash, as partial liquidated
damages and not as a penalty, for each $1,000 of Warrant Shares (based on the VWAP of the Common Stock on the date such Securities
are submitted to the Transfer Agent) delivered for removal of the restrictive legend and subject to Section 4.1(c), $10 per Trading
Day (increasing to $20 per Trading Day five (5) Trading Days after such damages have begun to accrue) for each Trading Day after
the Legend Removal Date until such certificate is delivered without a legend. Nothing herein shall limit such Purchaser’s
right to pursue actual damages for the Company’s failure to deliver certificates representing any Securities as required
by the Transaction Documents, and such Purchaser shall have the right to pursue all remedies available to it at law or in equity
including, without limitation, a decree of specific performance and/or injunctive relief.

 

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

 

4.2         Furnishing
of Information; Public Information.

 

(a)          Until
the earliest of the time that (i) no Purchaser owns Securities or (ii) the Warrants have expired, the Company covenants to maintain
the registration of the Common Stock under Section 12(b) or 12(g) of the Exchange Act and to timely file (or obtain extensions
in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after the date
hereof pursuant to the Exchange Act even if the Company is not then subject to the reporting requirements of the Exchange Act.

 

(b)          At
any time during the period commencing from the six (6) month anniversary of the date hereof and ending at such time that all of
the Securities may be sold without the requirement for the Company to be in compliance with Rule 144(c)(1) and otherwise without
restriction or limitation pursuant to Rule 144, if the Company shall fail for any reason to satisfy the current public information
requirement under Rule 144(c) (a “Public Information Failure”) then, in addition to such Purchaser’s
other available remedies, the Company shall pay to a Purchaser, in cash, as partial liquidated damages and not as a penalty, by
reason of any such delay in or reduction of its ability to sell the Securities, an amount in cash equal to two percent (2.0%)
of the aggregate Subscription Amount of such Purchaser’s Securities on the day of a Public Information Failure and on every
thirtieth (30th) day (pro rated for periods totaling less than thirty days) thereafter until the earlier of (a) the date such
Public Information Failure is cured and (b) such time that such public information is no longer required for the Purchasers to
transfer the Shares and Warrant Shares pursuant to Rule 144. The payments to which a Purchaser shall be entitled pursuant to this
Section 4.2(b) are referred to herein as “Public Information Failure Payments.” Public Information Failure
Payments shall be paid on the earlier of (i) the last day of the calendar month during which such Public Information Failure Payments
are incurred and (ii) the third (3rd) Business Day after the event or failure giving rise to the Public Information Failure Payments
is cured. In the event the Company fails to make Public Information Failure Payments in a timely manner, such Public Information
Failure Payments shall bear interest at the rate of 1.5% per month (prorated for partial months) until paid in full. Nothing herein
shall limit such Purchaser’s right to pursue actual damages for the Public Information Failure, and such Purchaser shall
have the right to pursue all remedies available to it at law or in equity including, without limitation, a decree of specific
performance and/or injunctive relief.

 

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4.3           Integration.
The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined
in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities for purposes of the rules
and regulations of any Trading Market such that it would require stockholder approval prior to the closing of such other transaction
unless stockholder approval is obtained before the closing of such subsequent transaction. 

 

4.4           Securities
Laws Disclosure; Publicity. The Company shall (a) by 9:00 a.m. (New York City time)
on the Trading Day immediately following the date hereof, issue a press release disclosing the material terms of the transactions
contemplated hereby, and (b) file a Current Report on Form 8-K, including the Transaction Documents as exhibits thereto, with
the Commission within the time required by the Exchange Act. From and after the issuance of such press release, the Company represents
to the Purchasers that it shall have publicly disclosed all material, non-public information delivered to any of the Purchasers
by the Company or any of its Subsidiaries, or any of their respective officers, directors, employees or agents in connection with
the transactions contemplated by the Transaction Documents. The Company and each Purchaser shall consult with each other in issuing
any other press releases with respect to the transactions contemplated hereby, and neither the Company nor any Purchaser shall
issue any such press release nor otherwise make any such public statement without the prior consent of the Company, with respect
to any press release of any Purchaser, or without the prior consent of each Purchaser, with respect to any press release of the
Company, which consent shall not unreasonably be withheld or delayed, except if such disclosure is required by law, in which case
the disclosing party shall promptly provide the other party with prior notice of such public statement or communication. Notwithstanding
the foregoing, the Company shall not publicly disclose the name of any Purchaser, or include the name of any Purchaser in any
filing with the Commission or any regulatory agency or Trading Market, without the prior written consent of such Purchaser, except
(a) as required by federal securities law in connection with the filing of final Transaction Documents with the Commission and
(b) to the extent such disclosure is required by law or Trading Market regulations, in which case the Company shall provide the
Purchasers with prior notice of such disclosure permitted under this clause (b).

 

4.5           Stockholder
Rights Plan. No claim will be made or enforced by the Company or, with the consent
of the Company, any other Person, that any Purchaser is an “Acquiring Person” under any control share acquisition,
business combination, poison pill (including any distribution under a rights agreement) or similar anti-takeover plan or arrangement
in effect or hereafter adopted by the Company, or that any Purchaser could be deemed to trigger the provisions of any such plan
or arrangement, by virtue of receiving Securities under the Transaction Documents or under any other agreement between the Company
and the Purchasers.

 

4.6           Non-Public
Information. Except with respect to the material terms and conditions of the transactions
contemplated by the Transaction Documents, the Company covenants and agrees that neither it, nor any other Person acting on its
behalf will provide any Purchaser or its agents or counsel with any information that the Company believes constitutes material
non-public information, unless prior thereto such Purchaser shall have entered into a written agreement with the Company regarding
the confidentiality and use of such information. The Company understands and confirms that each Purchaser shall be relying on
the foregoing covenant in effecting transactions in securities of the Company.

 

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4.7           Use
of Proceeds. Except as set forth in the Prospectus Supplement, the Company shall
use $600,000 of the net proceeds from the sale of the Securities hereunder for investor relations purposes and the remainder for
working capital purposes and shall not use such proceeds: (a) for the satisfaction of any portion of the Company’s debt
(other than payment of trade payables in the ordinary course of the Company’s business and prior practices), (b) for the
redemption of any Common Stock or Common Stock Equivalents, (c) for the settlement of any outstanding litigation or (d) in violation
of FCPA or OFAC regulations.

 

4.8           Indemnification
of Purchasers. Subject to the provisions of this Section 4.8, the Company will indemnify
and hold each Purchaser and its directors, officers, stockholders, members, partners, employees and agents (and any other Persons
with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title),
each Person who controls such Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange
Act), and the directors, officers, stockholders, agents, members, partners or employees (and any other Persons with a functionally
equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title) of such controlling persons
(each, a “Purchaser Party”) harmless from any and all losses,
liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements,
court costs and reasonable attorneys’ fees and costs of investigation that any such Purchaser Party may suffer or incur
as a result of or relating to (a) any breach of any of the representations, warranties, covenants or agreements made by the Company
in this Agreement or in the other Transaction Documents or (b) any action instituted against the Purchaser Parties in any capacity,
or any of them or their respective Affiliates, by any stockholder of the Company who is not an Affiliate of such Purchaser Party,
with respect to any of the transactions contemplated by the Transaction Documents (unless such action is based upon a breach of
such Purchaser Party’s representations, warranties or covenants under the Transaction Documents or any agreements or understandings
such Purchaser Party may have with any such stockholder or any violations by such Purchaser Party of state or federal securities
laws or any conduct by such Purchaser Party which constitutes fraud, gross negligence, willful misconduct or malfeasance). If
any action shall be brought against any Purchaser Party in respect of which indemnity may be sought pursuant to this Agreement,
such Purchaser Party shall promptly notify the Company in writing, and the Company shall have the right to assume the defense
thereof with counsel of its own choosing reasonably acceptable to the Purchaser Party. Any Purchaser Party shall have the right
to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such counsel
shall be at the expense of such Purchaser Party except to the extent that (i) the employment thereof has been specifically authorized
by the Company in writing, (ii) the Company has failed after a reasonable period of time to assume such defense and to employ
counsel or (iii) in such action there is, in the reasonable opinion of counsel, a material conflict on any material issue between
the position of the Company and the position of such Purchaser Party, in which case the Company shall be responsible for the reasonable
fees and expenses of no more than one such separate counsel. The Company will not be liable to any Purchaser Party under this
Agreement (y) for any settlement by a Purchaser Party effected without the Company’s prior written consent, which shall
not be unreasonably withheld or delayed; or (z) to the extent, but only to the extent that a loss, claim, damage or liability
is attributable to any Purchaser Party’s breach of any of the representations, warranties, covenants or agreements made
by such Purchaser Party in this Agreement or in the other Transaction Documents. The indemnification required by this Section
4.8 shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as and when bills
are received or are incurred. The indemnity agreements contained herein shall be in addition to any cause of action or similar
right of any Purchaser Party against the Company or others and any liabilities the Company may be subject to pursuant to law.

 

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4.9         Reservation
of Common Stock. As of the date hereof, the Company has reserved and the Company
shall continue to reserve and keep available at all times, free of preemptive rights, a sufficient number of shares of Common
Stock for the purpose of enabling the Company to issue Shares pursuant to this Agreement and Warrant Shares pursuant to any exercise
of the Warrants.

 

4.10        Listing
of Common Stock. The Company hereby agrees to use best efforts to maintain the listing
or quotation of the Common Stock on the Trading Market on which it is currently listed, and concurrently with the Closing, the
Company shall apply to list or quote all of the Shares and Warrant Shares on such Trading Market and promptly secure the listing
of all of the Shares and Warrant Shares on such Trading Market. The Company further agrees, if the Company applies to have the
Common Stock traded on any other Trading Market, it will then include in such application all of the Shares and Warrant Shares,
and will take such other action as is necessary to cause all of the Shares and Warrant Shares to be listed or quoted on such other
Trading Market as promptly as possible. The Company will then take all action reasonably necessary to continue the listing and
trading of its Common Stock on a Trading Market and will comply in all respects with the Company’s reporting, filing and
other obligations under the bylaws or rules of the Trading Market. 

 

4.11        [RESERVED].

 

4.12        Subsequent
Equity Sales. 

 

(a)          From
the date hereof until 90 days after the Closing Date, neither the Company nor any Subsidiary shall, without the written consent
of the lead investor set forth on Schedule 4.12 hereto (the “Lead Investor”) (i) issue, enter into any agreement
to issue or announce the issuance or proposed issuance of any shares of Common Stock or Common Stock Equivalents or (ii) obtain
any other additional financing.

 

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(b)          From
the date hereof until 90 days after the Closing Date, the Company shall be prohibited from effecting or entering into an agreement
to effect any issuance by the Company or any of its Subsidiaries of Common Stock or Common Stock Equivalents (or a combination
of units thereof) involving a Variable Rate Transaction. “Variable Rate Transaction” means a transaction in
which the Company (i) issues or sells any debt or equity securities that are convertible into, exchangeable or exercisable for,
or include the right to receive additional shares of Common Stock either (A) at a conversion price, exercise price or exchange
rate or other price that is based upon and/or varies with the trading prices of or quotations for the shares of Common Stock at
any time after the initial issuance of such debt or equity securities, or (B) with a conversion, exercise or exchange price that
is subject to being reset at some future date after the initial issuance of such debt or equity security or upon the occurrence
of specified or contingent events directly or indirectly related to the business of the Company or the market for the Common Stock
or (ii) enters into any agreement, including, but not limited to, an equity line of credit, whereby the Company may issue securities
at a future determined price. Any Purchaser shall be entitled to obtain injunctive relief against the Company to preclude any
such issuance, which remedy shall be in addition to any right to collect damages.

 

(c)          Notwithstanding
the foregoing, this Section 4.12 shall not apply in respect of an Exempt Issuance, except that no Variable Rate Transaction shall
be an Exempt Issuance.

 

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

 

4.14         [RESERVED].

 

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

 

4.16         Exercise
Procedures. The form of Notice of Exercise included in the Warrants sets forth the
totality of the procedures required of the Purchasers in order to exercise the Warrants. No additional legal opinion, other information
or instructions shall be required of the Purchasers to exercise their Warrants. Without limiting the preceding sentences, no ink-original
Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice
of Exercise form be required in order to exercise the Warrants. The Company shall honor exercises of the Warrants and shall deliver
Warrant Shares in accordance with the terms, conditions and time periods set forth in the Transaction Documents.

 

4.17         Capital
Changes. Until the six month anniversary of the date hereof, the Company shall
not undertake a reverse or forward stock split or reclassification of the Common Stock without the prior written consent of the
Purchasers holding a majority in interest of the Shares and Warrant Shares.

 

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ARTICLE
V.

MISCELLANEOUS

 

5.1           Termination. 
This Agreement may be terminated by any Purchaser, as to such Purchaser’s obligations hereunder only and without any effect
whatsoever on the obligations between the Company and the other Purchasers, by written notice to the other parties, if the Closing
has not been consummated on or before December 31, 2012; provided, however,
that no such termination will affect the right of any party to sue for any breach by any other party (or parties).

 

5.2           Fees
and Expenses. Except as expressly set forth in the Transaction Documents to the contrary,
each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses
incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement; provided,
however, that the Company shall, at the Closing, reimburse (a) $25,000 in legal fees and expenses of one counsel for the Purchasers
and (b) $3,000 in escrow fees required to be paid to the Escrow Agent under the terms of the Escrow Agreement. The Company shall
pay all Transfer Agent fees (including, without limitation, any fees required for same-day processing of any instruction letter
delivered by the Company and any exercise notice delivered by a Purchaser), stamp taxes and other taxes and duties levied in connection
with the delivery of any Securities to the Purchasers.

 

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

 

5.4           Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and
shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered
via facsimile at the facsimile number set forth on the signature pages attached hereto at or prior to 5:30 p.m. (New York City
time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered
via facsimile at the facsimile number set forth on the signature pages attached hereto on a day that is not a Trading Day or later
than 5:30 p.m. (New York City time) on any Trading Day, (c) the second (2nd) Trading Day following the date of mailing,
if sent by U.S. nationally recognized overnight courier service or (d) upon actual receipt by the party to whom such notice is
required to be given. The address for such notices and communications shall be as set forth on the signature pages attached hereto.

 

5.5           Amendments;
Waivers. No provision of this Agreement may be waived, modified, supplemented or
amended except in a written instrument signed, in the case of an amendment, by the Company and the Purchasers holding at least
67% in interest of the Shares based on the initial Subscription Amounts hereunder or, in the case of a waiver, by the party against
whom enforcement of any such waived provision is sought. No waiver of any default with respect to any provision, condition or
requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or
a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any
right hereunder in any manner impair the exercise of any such right.

 

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

 

5.7           Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the
parties and their successors and permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder
without the prior written consent of each Purchaser (other than by merger). Any Purchaser may assign any or all of its rights
under this Agreement to any Person to whom such Purchaser assigns or transfers any Securities, provided that such transferee agrees
in writing to be bound, with respect to the transferred Securities, by the provisions of the Transaction Documents that apply
to the “Purchasers.”

 

5.8           No
Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties
hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced
by, any other Person, except as otherwise set forth in Section 4.8.

 

5.9           Governing
Law. All questions concerning the construction, validity, enforcement and interpretation
of the Transaction Documents shall be governed by and construed and enforced in accordance with the internal laws of the State
of New York, without regard to the principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning
the interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents
(whether brought against a party hereto or its respective affiliates, directors, officers, stockholders, partners, members, employees
or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York. Each party hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for
the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein
(including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not
to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court,
that such suit, action or proceeding is improper or is an inconvenient venue for such proceeding. Each party hereby irrevocably
waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy
thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect
for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and
notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted
by law. If either party shall commence an action, suit or proceeding to enforce any provisions of the Transaction Documents, then,
in addition to the obligations of the Company under Section 4.8, the prevailing party in such action, suit or proceeding shall
be reimbursed by the other party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation,
preparation and prosecution of such action or proceeding.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(Signature
Pages Follow)

 

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

 

	SENESCO TECHNOLOGIES,
    INC.	Address
    for Notice:

 

	By:	 	 	Fax: 908-864-4440
	 	Name: Leslie J. Browne	 
	 	Title:    President
    and CEO	 
	With a copy to (which shall not constitute notice):

 

[REMAINDER OF
PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE
FOR PURCHASER FOLLOWS]

 

    	33

    	 

    

 

[PURCHASER SIGNATURE
PAGES TO SNT SECURITIES PURCHASE AGREEMENT]

 

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

 

Name of Purchaser:
________________________________________________________

 

Signature
of Authorized Signatory of Purchaser: _________________________________

 

Name of Authorized
Signatory: _______________________________________________

 

Title of Authorized
Signatory: ________________________________________________

 

Email Address
of Authorized Signatory:_________________________________________

 

Facsimile Number of Authorized Signatory:
__________________________________________

 

Address for Notice to Purchaser:

 

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

 

Subscription Amount: $_________________

 

Shares: _________________

 

Warrant Shares: __________________

 

EIN Number: _______________________

 

o
Notwithstanding anything contained in this Agreement to the contrary, by checking this box (i) the obligations of the above-signed
to purchase the securities set forth in this Agreement to be purchased from the Company by the above-signed, and the obligations
of the Company to sell such securities to the above-signed, shall be unconditional and all conditions to Closing shall be disregarded,
(ii) the Closing shall occur on the third (3rd) Trading Day following the date of this Agreement and (iii) any condition
to Closing contemplated by this Agreement (but prior to being disregarded by clause (i) above) that required delivery by the Company
or the above-signed of any agreement, instrument, certificate or the like or purchase price (as applicable) shall no longer be
a condition and shall instead be an unconditional obligation of the Company or the above-signed (as applicable) to deliver such
agreement, instrument, certificate or the like or purchase price (as applicable) to such other party on the Closing Date.

 

[SIGNATURE PAGES
CONTINUE]

 

    	34UNIVERSAL BUSINESS PAYMENT SOLUTIONS
ACQUISITION CORPORATION

 

 

 

__________________________________________

 

 

 

SECURED CONVERTIBLE NOTE AGREEMENT

 

December 28, 2012

  

 

__________________________________________

 

 

    	 

    	 

    
 

Exhibit A – Schedule of Purchasers

Exhibit B – Form of Secured Convertible Promissory Note

Exhibit C – LLC Interests Collateral

Exhibit D – Form of Registration Rights Agreement

 

    	i

    	 

    
 

UNIVERSAL BUSINESS PAYMENT SOLUTIONS
ACQUISITION CORPORATION

 

SECURED CONVERTIBLE NOTE AGREEMENT

 

This Secured Convertible
Note Agreement (the “Agreement”), is made as of December 28, 2012, by and among Universal Business Payment Solutions
Acquisition Corporation, a Delaware corporation (the “Company”), and each of the parties listed on the Schedule
of Purchasers attached hereto as Exhibit A (each a “Purchaser” and collectively, the “Purchasers”).

 

ARTICLE 1

The Notes

 

1.1 
Authorization of Notes. The Company has duly authorized the sale and issuance to the Purchasers of Secured Convertible
Promissory Notes, in the form attached hereto as Exhibit B (the “Notes”) in the principal amount of up
to Ten Million Dollars ($10,000,000), with a maturity date of December 31, 2014. The proceeds from the Notes will be used to facilitate
the closings under (a) the Agreement and Plan of Merger, dated as of July 6, 2012, as amended, by and among the Company, JP Merger
Sub, LLC, WLES, L.P. and certain other parties thereto and (b) the Agreement and Plan of Merger, dated as of July 6, 2012, as amended,
by and among the Company, ADC Merger Sub, Inc., AD Computer Corporation (“ADC”), Payroll Tax Filing Services,
Inc., and certain other stockholders party thereto (such agreements collectively, the “Acquisition Agreements”).
This Agreement and the Issuance of the Notes, and the parties obligations related thereto, are contingent upon the closing of the
transactions contemplated by the Acquisition Agreements.

 

ARTICLE 2

Closings; Delivery

 

2.1 
Closing. At the Closing (as defined below), the Company will issue to each Purchaser, and each Purchaser is obligated
to purchase severally, and not jointly, from the Company, Notes in the principal amount set forth opposite such Purchaser’s
name in Exhibit A attached hereto (“Purchaser’s Commitment”), or a total principal amount of up
to Ten Million Dollars ($10,000,000) for the Purchasers collectively. The closing of such purchase and sale of the Notes hereunder
(the “Closing”) shall be held at the offices of Dechert LLP, 2929 Arch Street, Philadelphia, PA 19104 at 10:00
a.m. local time on the date hereof or at such other place or time upon which the Company and the Purchasers mutually agree (the
“Closing Date”). The obligations of the Company to issue and the Purchasers to purchase the Notes shall arise
immediately prior to the consummation of the transactions contemplated by the Acquisition Agreements.

 

2.2 
Delivery. At the Closing, the Company shall deliver to each Purchaser a Note in the principal amount for such Purchaser
determined as provided herein, against payment of the purchase price therefor by check payable to the Company or by wire transfer
made pursuant to the Company’s instructions.

 

    	 

    	 

    
 

ARTICLE 3 

 

Representations,
Warranties and Covenants of the Company

 

In this Agreement,
any reference to a “Material Adverse Effect” means any event, change or effect that is materially adverse to
the business, operations, assets, liabilities, condition (financial or otherwise) or results of operations of the Company.

 

The Company represents
and warrants to each of the Purchasers at the Closing as follows:

 

3.1 
Corporate Organization. The Company is a corporation duly organized and validly existing under the laws of the State
of Delaware and has all requisite corporate power and authority to carry on its business as presently conducted and as presently
proposed to be conducted by it. The Company is duly qualified to transact business and is in good standing in each jurisdiction
in which the failure to so qualify would have a Material Adverse Effect. JetPay, LLC (“JetPay”) is a limited
liability company duly organized, validly existing and in good standing under the laws of the State of Texas and has all requisite
limited liability company power and authority to carry on its business as presently conducted and as presently proposed to be conducted
by it. JetPay is duly qualified to transact business and is in good standing in each jurisdiction in which the failure to so qualify
would have a Material Adverse Effect. ADC is a corporation duly organized, validly existing and in good standing under the laws
of the Commonwealth of Pennsylvania and has all requisite corporate power and authority to carry on its business as presently conducted
and as presently proposed to be conducted by it. The Company is duly qualified to transact business and is in good standing in
each jurisdiction in which the failure to so qualify would have a Material Adverse Effect.

 

3.2 
Authorization. The Company has all requisite corporate power and authority to execute and deliver this Agreement, to
sell and issue the Notes hereunder, and to carry out and perform its obligations hereunder and thereunder. All corporate action
on the part of the Company, its directors and shareholders necessary for the authorization, execution, delivery and performance
of this Agreement and the Notes by the Company, the authorization, sale, issuance and delivery of the Notes and the performance
of the Company’s obligations hereunder or thereunder has been taken. This Agreement and the Notes, when executed and delivered
by the Company, will constitute the legal, valid and binding obligations of the Company, enforceable against the Company in accordance
with their respective terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance
and other laws of general application affecting enforcement of creditors’ rights generally and as limited by laws relating
to the availability of specific performance, injunctive relief or other equitable remedies.

 

3.3 
Capitalization. Assuming consummation of the transactions contemplated by the Acquisition Agreements, the Company will
own 100% of the issued and outstanding equity interests in JetPay, 50% of which will be unencumbered and free of any Liens.

 

3.4 
Government Consents. No consent, approval or authorization of or designation, declaration or filing with any federal,
state, local or foreign governmental authority on the part of the Company is required in connection with the valid execution and
delivery of this Agreement or the offer, sale or issuance of the Notes or the consummation of any other transaction contemplated
hereby or thereby, except filings pursuant to Regulation D of the Securities Act of 1933, as amended (the “Securities
Act”) and qualification (or taking such action as may be necessary to secure an exemption from qualification, if available)
under the California Corporations Code and other applicable blue sky laws of the offer and sale of the Notes, which filings and
qualification, if required, will be accomplished in a timely manner prior to or promptly upon completion of each Closing.

 

    	2

    	 

    
 

3.5 
Offering. Based in part upon the Purchasers’ representations in Article 4 hereof, the offer, and the sale and
issuance, of the Notes and the shares of capital stock of the Company issuable upon conversion of the Notes (the “Conversion
Stock”) constitute a transaction exempt from the registration requirements of Section 5 of the Securities Act.

 

3.6 
Valid Issuance of Securities. The Company shall, prior to the conversion of the Notes, reserve from its authorized but
unissued shares of its capital stock for issuance and delivery upon the conversion of the Notes, such number of shares of Conversion
Stock, and, from time to time, will take all steps necessary to amend its Certificate of Incorporation to provide sufficient authorized
numbers of shares of Conversion Stock issuable upon the conversion of the Notes. All such shares shall be duly authorized, and
when issued upon any such conversion, shall be validly issued, fully paid and non-assessable, free and clear of all liens, security
interests, charges and other encumbrances or restrictions on sale and free and clear of all preemptive rights, except encumbrances
or restrictions arising under federal or state securities laws.

 

3.7 
Compliance with Other Instruments. The Company is not in violation or default of any provisions of its Certificate of
Incorporation or its bylaws, in each case as amended and currently in effect, or of any provision of any federal, state or local
law, statute, rule or regulation applicable to the Company. The execution, delivery and performance of this Agreement and the Notes,
and the consummation of the transactions contemplated hereby or thereby, will not result in any such violation or be in conflict
with or constitute, with or without the passage of time or the giving of notice, either a default under any such provision, agreement,
instrument, judgment, injunction, order or degree or an event which results in the creation of any material lien, charge, pledge,
security interest, mortgage or other encumbrance (each a “Lien”) upon any assets or properties of the Company.

 

ARTICLE 4 

 

Representations,
Warranties and Covenants of the Purchasers

 

Each Purchaser hereby
represents, warrants and covenants, severally and not jointly, to the Company as follows:

 

4.1 
Accredited Investor. The Purchaser is an “accredited investor” within the meaning of Regulation D under
the Securities Act.

 

4.2 
Restricted Securities; Rule 144. The Purchaser understands that the Notes (and the Conversion Stock) are characterized
as “restricted securities” under the federal securities laws inasmuch as they are being acquired from the Company
in a transaction not involving a public offering and that, under such laws and applicable regulations, the Notes (and the Conversion
Stock) may be resold without registration under the Securities Act only in certain limited circumstances. The Purchaser acknowledges
that the Notes (and all capital stock of the Company issuable upon conversion of the Notes) must be held indefinitely unless subsequently
registered under the Securities Act or an exemption from such registration is available. The Purchaser is aware of the provisions
of Rule 144 promulgated under the Securities Act which permit limited resale of shares purchased in a private placement subject
to the satisfaction of certain conditions.

 

    	3

    	 

    
 

4.3 
No Public Market. The Purchaser understands that no public market now exists for the Notes and that there can be no
assurance that a public market will ever exist for the Notes (or the Conversion Stock).

 

4.4 
Further Limitations on Disposition of Conversion Stock. Without in any way limiting the representations set forth above,
except with respect to transfers to fund entities affiliated with Purchasers, or in the case of an individual Purchaser, to an
entity wholly-owned by such individual Purchaser, the Purchaser agrees not to make any disposition of all or any portion of the
Conversion Stock issuable upon conversion of the Notes, unless and until:

 

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

 

(b) (i) the Purchaser
shall have notified the Company of the proposed disposition and shall have furnished the Company with a detailed statement of the
circumstances surrounding the proposed disposition, and (ii) such Purchaser shall have furnished the Company with an opinion of
counsel, reasonably satisfactory to the Company, that such disposition will not require, or is exempt from, registration under
the Securities Act; or

 

(c) there is an
applicable exemption under the Securities Act, including but not limited to an exemption under Rule 144 of the Securities Act

 

4.5 
Registration Rights. At the Closing, the Company and Purchaser shall enter into a Registration Rights Agreement in the
form attached hereto as Exhibit D. For the avoidance of doubt, the Company agrees to use its best efforts to file a registration
statement with respect to all of the Conversion Stock as soon as practicable following the Closing and to maintain the effectiveness
of such registration statement so long as the Conversion Stock is issuable or the Purchaser holds the Conversion Stock. Furthermore,
in the event that a registration statement is not declared effective by June 30, 2013, the conversion price shall be reduced by
$0.15 per share and then by an additional $0.05 per share for every 30 days after June 30, 2013 that the registration statement
has not been declared effective.

 

4.6 
Legends. It is understood that each certificate representing the Conversion Stock issuable upon conversion of the Notes
and any securities issued in respect thereof or in exchange therefor shall bear a legend in substantially the following form (in
addition to any legend required under applicable state securities laws):

 

    	4

    	 

    
 

THIS SECURITY HAS NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THIS SECURITY MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS SECURITY UNDER SAID ACT AND APPLICABLE
STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

 

The
Company hereby agrees to instruct the transfer agent to remove such legend immediately upon the effectiveness of the Company’s
registration statement with respect to the Conversion Shares.

 

4.7 
No Transfer of Notes. The Purchaser shall not sell, contract to sell, pledge or otherwise transfer or dispose of the
Notes, or any economic interest therein, without the prior written consent of the Company, which consent shall not be unreasonably
withheld, except to fund entities affiliated with Purchasers, or in the case of an individual Purchaser, to an entity wholly-owned
by such individual Purchaser.

 

4.8 
Listing. The Company shall use its reasonable best efforts to maintain a listing on a nationally recognized securities
exchange market for its shares of common stock.

 

ARTICLE 5

Covenants

 

5.1 
Security Interest. This Agreement constitutes a “security agreement” within the meaning of the UCC. In order
to secure payment and performance of the Secured Obligations, the Company hereby grants, assigns, transfers, pledges, for the benefit
of the Purchasers hereunder, a security interest in, and a Lien on, all of Company’s right, title, estate, claim and interest
in and to any or all of the items listed on Exhibit C to this Agreement whether now owned or hereafter acquired and wherever
located (collectively, the “LLC Interests Collateral”).

 

5.2 
Financing Statements. The Company will promptly cooperate with the Purchasers in executing such financing statements,
continuation statements, assignments, certificates and other documents with respect to the LLC Interests Collateral, pursuant to
the applicable Uniform Commercial Code and otherwise, as any Purchaser may reasonably request in order to enable such Purchaser
to perfect and from time to time to renew the security interest granted, all in form reasonably satisfactory to such Purchaser,
and the Company will pay the costs of filing the same in all public offices where such Purchaser deems such financing to be necessary
or desirable.

 

5.3 
Return of LLC Interests Collateral. Upon payment in full of the Note and any other amounts due hereunder, or upon the
full conversion of the Note into securities of the Company, the security interest in granted herein shall be released.

 

5.4 
Further Assurances. The Company agrees that at any time and from time to time, at its expense, the Company will promptly
execute and deliver all further instruments and documents, and take all further action that any Purchaser may reasonably request,
in order to perfect and protect the security interests granted or purported to be granted hereby and to enable such Purchaser to
exercise and enforce its rights and remedies hereunder with respect to any LLC Interests Collateral.

 

    	5

    	 

    
 

5.5 
Company’s Continuing Rights. Notwithstanding the security interest in the LLC Interests Collateral granted to
and created in favor of the Purchasers under this Agreement, the Company shall have the right until the occurrence and continuance
of an Event of Default, to sell, lease or otherwise dispose of the Assets and to collect the Accounts, in each case only in the
ordinary course of the Company’s business.

 

5.6 
Limitation on Debt. For so long as any Note (or portion thereof) remains outstanding, the Company will not raise any
additional indebtedness ranking pari passu with or senior to the Notes and will be precluded from incurring additional subsidiary
level indebtedness such that consolidated debt/EBITDA ratio would exceed 3.0 times EBITDA.

 

5.7 
Opinion of Counsel. In connection with the Closing, the Company shall deliver an opinion of Counsel that the membership
interests underlying the LLC Interests Collateral constitute the legal valid binding obligation of the obligor and such interests
have been validly issued under the Texas Limited Liability Company Act.

 

5.8 
Collateral Impairment. To the extent the Purchasers determine in their reasonable discretion that the LLC Interests
Collateral has become materially impaired and provide a notice to the Company detailing the analysis underlying such determination,
Purchasers shall have the right to demand that the Company replace within a commercially reasonable time such LLC Interests Collateral
with replacement collateral of JetPay or the Company; provided, however, that in no event shall the Company be obligated to provide
such replacement collateral if the provision of such collateral would cause the Company to breach any existing material contractual
obligations then in effect at the time of such request.

 

5.9 
Financial Statements. For so long as any Note (or portion thereof) remains outstanding, the Company shall deliver or
cause to be delivered upon request of the Payees within 15 business days: (i) a balance sheet for each of the Company, ADC and
JetPay as of the last day of the previous calendar month, (ii) a statement of income for each of the Company, ADC and JetPay for
the monthly period ending on the last day of the previous calendar month and (iii) a statement of cash flows for each of the Company,
ADC and JetPay for the monthly period ending on the last day of the previous calendar month.

 

5.10  No Further Liens. For so long as any Note (or portion thereof) remains outstanding, the Company will maintain good title
to, or the right to use, the Assets and the LLC Interests Collateral, as the case may be, free and clear of any Liens or restrictions
on the transfer thereof except for (i) the Permitted Liens or (ii) Liens approved by each of the Purchasers.

 

5.11  Definitions. For purposes of this Agreement, each of the following terms has the meaning set forth below:

 

“Accounts”
means all bona fide rights of the Company, now existing or hereafter acquired, to payment for goods sold or leased or for services
rendered or for royalty payments or payments under any license, which are not evidenced by an instrument or Chattel Paper, whether
or not earned by performance.

 

    	6

    	 

    
 

“Assets”
means all assets of the Company whether now existing or hererafter arising or acquired, including all proceeds thereof, provided,
however, that Assets shall not include the LLC Interests Collateral.

 

“Chattel Paper”
means a writing or writings which evidence both a monetary obligation and a security interest in, or a lease of, specific goods.
When a transaction is evidenced both by such a security agreement or a lease and by an instrument or a series of instruments, the
group of writings taken together constitutes Chattel Paper.

 

“EBITDA”
means total revenues minus total expenses, plus taxes, depreciation, amortization, and interest expense.

 

“Permitted
Liens” means: (i) Liens for any taxes, fees, assessments or other governmental charges or levies, either not delinquent
or being contested in good faith by appropriate proceedings; (ii) Liens in favor of customs and revenue authorities arising as
a matter of law to secure payments of custom duties in connection with the importation of goods; (iii) deposits in the ordinary
course of business under worker’s compensation, unemployment insurance, social security and other similar laws, or to secure
the performance of bids, tenders or contracts (other than for the repayment of borrowed money) or to secure indemnity, performance
or other similar bonds for the performance of bids, tenders or contracts (other than for the repayment of borrowed money) or to
secure statutory obligations (other than liens arising under ERISA or environmental liens) or surety or appeal bonds, or to secure
indemnity, performance or other similar bonds; (iv) leases or subleases and nonexclusive licenses and sublicenses granted to others
in the ordinary course of the Company’s business; (v) easements, reservations, rights-of-way, restrictions, minor defects
or irregularities in title and other similar charges or encumbrances affecting real property that do not materially adversely impact
the Company's ability to utilize such real properties; (vi) Liens of materialmen, mechanics, warehousemen, carriers, artisan’s
or other similar Liens arising in the ordinary course of the Company’s business or by operation of law with respect to amounts
not yet due and payable and (vii) Liens arising out of the Loan Agreement, dated as of May 31, 201, by and among Ten Lords Ltd,
Providence Interactive Capital, LLC, JetPay, JetPay ISO Services, LLC, JetPay Merchant Services, LLC, JT Holdings, L.P., JT Holdings
Management, LLC, WLES, Ltd. and Trent Voigt.

 

“Secured Obligations”
means all money, debts, obligations and liabilities which now are or have been or at any time hereafter may be or become due, owing
or incurred by the Company to the Purchasers, whether direct or indirect, absolute or contingent, due or to become due, or now
existing or hereafter incurred, and which, in all instances, arise under, out of, or in connection with this Agreement and the
Notes.

 

“UCC”
means the Uniform Commercial Code of the State of Delaware as in effect on the date hereof and as amended from time to time hereafter.

 

    	7

    	 

    
 

ARTICLE 6

Miscellaneous

 

6.1 
Governing Law. This Agreement shall be governed in all respects by the laws of the State of Delaware, as applied to
contracts made and to be fully performed entirely within such State between residents of such State.

 

6.2 
Survival. The representations, warranties, covenants and agreements made herein shall survive any investigation made
by any Purchaser or the Company and the closing of the transactions contemplated hereby.

 

6.3 
Successors and Assigns. Except as otherwise provided herein, the provisions hereof shall inure to the benefit of, and
be binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto. Neither this Agreement nor
any term or provision hereof may be assigned to another party without the prior written consent of the other parties hereto; provided,
however, that the rights of any Purchaser to purchase the Notes shall be assignable to fund entities affiliated with such
Purchaser without the prior written consent of the other parties hereto.

 

6.4 
Fees and Expenses. Each party shall bear its own fees and expenses in connection with this Agreement and the transactions
contemplated hereby.

 

6.5 
Entire Agreement; Amendment. This Agreement and the other documents delivered pursuant hereto constitute the full and
entire understanding and agreement among the parties with regard to the subjects hereof and thereof. Neither this Agreement nor
any term hereof may be amended, waived, discharged or terminated other than by a written instrument signed by the Company and Purchasers
holding a majority of the then outstanding principal amount of the Notes (or if the Notes have been converted, a majority of the
shares of Conversion Stock, none of which having been sold to the public) or transferees of such Purchasers.

 

6.6 
Notices, etc. All notices, demands, requests or other communications that may be or are required to be given, served
or sent by any party permitted herein will be in writing and shall be mailed by first class, registered or certified mail, return
receipt requested, postage prepaid, or transmitted by hand delivery, overnight courier or facsimile transmission, addressed as
follows: (a) if to the Company, to Universal Business Payment Solutions Acquisition Corporation, Radnor Financial Center, 150 North
Radnor-Chester Road, Suite F-200, Radnor PA 19087, Attention: Chief Executive Officer, with a copy to Dechert LLP, 2929 Arch Street,
Philadelphia, PA 19104, Attention: James A. Lebovitz, Facsimile (215) 994-2222 and (b) if to a Purchaser, at the address set forth
in Exhibit A for such Purchaser, or at such other address or addresses as shall have been furnished in writing to the Company.
Each notice or other communication that is mailed, delivered or transmitted in the manner described above shall be deemed sufficiently
given, served, sent and received for all purposes at such time as it is delivered to the addressee (with the return receipt, the
delivery receipt, the fax confirmation sheet or the affidavit of messenger being deemed conclusive evidence of such delivery) or
at such time as delivery is refused by the addressee upon presentation.

 

    	8

    	 

    
 

6.7 
Delays or Omissions. No delay or omission to exercise any right, power or remedy accruing to any holder of the Notes
(and the Conversion Stock) upon any breach or default of the Company under this Agreement, shall impair any such right, power or
remedy of such holder nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of
or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver
of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character
on the part of any holder of the Notes (and the Conversion Stock) of any breach or default under this Agreement, or any waiver
on the part of such holder of any provisions or conditions of this Agreement, must be in writing and shall be effective only to
the extent specifically set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to
any such holder, shall be cumulative and not alternative.

 

6.8 
Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be enforceable against
the parties actually executing such counterparts, and all of which together shall constitute one instrument.

 

6.9 
Severability. In the event that any provision of this Agreement becomes or is declared by a court of competent Jurisdiction
to be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision; provided that
no such severability shall be effective if it materially changes the economic benefit of this Agreement to any party.

 

    	9

    	 

    
 

IN WITNESS WHEREOF,
the parties have executed this Secured Convertible Note Agreement as of the date first written above.

 

	 	COMPANY:
	 	 	 
	 	UNIVERSAL BUSINESS PAYMENT SOLUTIONS ACQUISITION CORPORATION,
	 	a Delaware Company
	 	 	 
	 	By: 	/s/ Bipin C. Shah
	 	Name: Bipin C. Shah
	 	Title: Chief Executive Officer

 

	 	Address: 	Radnor Financial Center
	 	 	150 North Radnor-Chester Road
	 	 	Suite F-200
	 	 	Radnor, PA 19087

 

 

 

 

[Signature
Page to Note Purchase Agreement]

 

    	 

    	 

    
 

	 	PURCHASERS:
	 	 	 
	 	MENDOTA INSURANCE COMPANY
	 	 	 
	 	By: 	/s/  William A. Hickey, Jr.
	 	Name: William A. Hickey, Jr.
	 	Title: President

 

 

 

 

[Signature
Page to Note Purchase Agreement]

 

    	 

    	 

    
 

	 	PURCHASERS:
	 	 	 
	 	IRA LUBERT
	 	 	 
	 	By: 	/s/  Ira Lubert
	 	Name:
	 	Title:

 

 

 

 

[Signature
Page to Note Purchase Agreement] 

 

    	 

    	 

    
 

	 	PURCHASERS:
	 	 	 
	 	AMERICAN SERVICE INSURANCE COMPANY
	 	 	 
	 	By: 	/s/ Scott D. Wollney
	 	Name: Scott D. Wollney
	 	Title: President and CEO

 

 

 

 

[Signature
Page to Note Purchase Agreement]

 

    	 

    	 

    
 

	 	PURCHASERS:
	 	 	 
	 	R8 CAPITAL PARTNERS, LLC
	 	 	 
	 	By: 	/s/ Bruce V. Rauner
	 	Name: Bruce V. Rauner
	 	Title: President

 

 

 

 

[Signature
Page to Note Purchase Agreement]

 

    	 

    	 

    
 

	 	PURCHASERS:
	 	 	 
	 	Special Opportunities
Fund, Inc.
	 	 	 
	 	By: 	/s/ Andrew Dakos
	 	Name: Andrew Dakos
	 	Title: President

 

 

 

 

[Signature
Page to Note Purchase Agreement]

 

    	 

    	 

    
 

	 	PURCHASERS:
	 	 	 
	 	Bulldog Investors
General Partnership
	 	 	 
	 	By: 	/s/ Andrew Dakos
	 	Name: Andrew Dakos
	 	Title: Managing General Partner

 

 

 

 

[Signature
Page to Note Purchase Agreement]

 

    	 

    	 

    
 

EXHIBIT A

 

SCHEDULE OF PURCHASERS

 

	Name and Address	Loan Amount
	AMERICAN SERVICE INSURANCE COMPANY	1,000,000
	MENDOTA INSURANCE COMPANY	2,000,000
	SPECIAL OPPORTUNITIES FUND, INC.	234,000
	BULLDOG INVESTORS GENERAL PARTNERS	1,766,000
	R8 Capital Partners, LLC	3,000,000
	IRA LUBERT	2,000,000
	Total:	$10,000,000

 

 

[Signature
Page to Note Purchase Agreement]

 

    	 

    	 

    
 

EXHIBIT B

 

FORM OF SECURED CONVERTIBLE PROMISSORY
NOTE

    	 

    	 

    
 

THIS NOTE HAS NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THIS NOTE MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED
OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS NOTE UNDER SAID ACT AND APPLICABLE STATE SECURITIES
LAWS OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

 

SECURED CONVERTIBLE PROMISSORY NOTE

 

	[  ]	December 28, 2012

 

FOR VALUE RECEIVED,
the undersigned, UNIVERSAL BUSINESS PAYMENT SOLUTIONS ACQUISITION CORPORATION, a Delaware corporation (the “Company”)
with its principal place of business at Radnor Financial Center, Suite F-200, Radnor, PA 19087, promises to pay to the order of
Special Opportunities Fund, Inc., or its registered transferees or assigns (the “Payee”), the principal sum of [ ]
together with simple interest on the unpaid principal balance from time to time outstanding, computed from the date of original
issuance of this Note, at the rate of twelve percent (12%) per annum, on the basis of a 365-day year, until paid in full; provided,
however that upon the occurrence and during the continuance of an Event of Default (as defined below), this Note will bear
interest at a rate of eighteen percent (18%) per annum as measured from the date of the occurrence of such Event of Default. Interest
shall be payable in cash on a quarterly basis in arrears within five (5) business days of the end of each calendar quarter commencing
on the completion of the first full calendar quarter following the Closing Date.

 

1.                                                
Notes. This Convertible Promissory Note (the “Note”) is issued as a part of a series of similar notes
issued by the Company in the aggregate principal amount of up to Ten Million Dollars ($10,000,000) pursuant to a certain Secured
Convertible Note Agreement, dated as of December __, 2012, by and among the Company, the Payee and any other Purchaser named therein
(the “Note Agreement”) (together, all such notes sometimes referred to as the “Notes”). The Note Agreement
is incorporated by reference herein.

 

2.                                                
Payment and Interest. Subject to earlier conversion or repayment as provided in Sections 3 and 4 below, the outstanding
principal amount of the Note, along with any and all accrued but unpaid interest hereunder, shall become due and payable on the
earliest to occur of (i) December 31, 2014 (the “Maturity Date”), or (ii) an Event of Default (as defined in Section
4 below). All payments hereunder, whether for principal, interest or otherwise shall be made in immediately available United States
funds sent to the Payee at the address set forth for the Payee in the preamble to this Note or such other address furnished in
writing to the Company for that purpose or by wire-transfer to an account specified in writing by Payee. Interest hereunder shall
accrue on the outstanding principal amount of this Note from the Closing Date until the earlier of (a) the repayment in full of
the principal amount hereunder and the payment of all accrued but unpaid interest hereunder or (b) the earlier conversion of the
outstanding principal amount hereunder and all accrued but unpaid interest hereunder in accordance with Section 3 below. All payments
received by the Payee will be applied first to costs of collection, if any, then to interest, and the balance to principal. Capitalized
terms used herein without definition are used herein with the meanings ascribed to such terms in the Note Agreement. The Company
shall not prepay without the written consent of holders of 100% of the outstanding principal of the Notes.

 

    	-2-

    	 

    
 

3.      Optional Conversion.

 

(a)Upon the election of the Payee,
(i) following the consummation (the “Closing”) of the transactions contemplated by each of (A) the Agreement and Plan
of Merger, dated as of July 6, 2012, as amended, by and among the Company, JP Merger Sub, LLC, WLES, L.P. and certain other parties
thereto and (B) the Agreement and Plan of Merger, dated as of July 6, 2012, as amended, by and among the Company, ADC Merger Sub,
Inc., AD Computer Corporation, Payroll Tax Filing Services, Inc., and certain other stockholders party thereto and (ii) prior to
the Maturity Date, all or any portion, of the unpaid principal and accrued interest under the Note shall convert into a number
of shares of Common Stock of the Company, par value $0.001, (the “Financing Stock”) and
shall be appropriately adjusted in the event of stock dividends, stock splits, consolidations, reclassifications and combinations.
equal to the quotient obtained by dividing (i) the amount of the unpaid principal and accrued interest on the Note that the Purchaser
elects to convert, by (ii) $5.15 (subject to any adjustments as set forth herein, including for the avoidance of doubt, Section
4.5 of the Note Agreement), with any resulting fraction of a share being rounded downward to the nearest whole share and with the
Company paying the Payee any remaining amount of unpaid principal or interest not converted into such whole number of shares.

 

(b)If the
Payee elects to convert all of the unpaid principal and accrued interest under the Note in accordance with Section 3(a), then
the Payee shall, following the Closing and at least ten (10) business days prior to the Maturity Date, deliver a written notice
to the Company indicating the Payee’s election to convert this Note pursuant to Section 3(a). In the event of a conversion
of this Note pursuant to Section 3(a), the Payee shall (i) surrender this Note to the Company for cancellation and exchange into
the Financing Stock, and (ii) execute and deliver all agreements, documents, instruments and
certificates, as may be reasonably requested by the Company in connection with the conversion of this Note. At the time of conversion
of this Note, the Company will issue to the Payee, or its registered nominee or assigns, certificate(s) for the number of shares
of Financing Stock, into which this Note is then convertible, with any resulting fraction of a share being rounded downward to
the nearest whole share, and the Company will pay to the Payee cash for the amounts not so converted as a result of the above-referenced
downward rounding. The issuance of certificate(s) for shares of the Financing Stock, shall be made without charge to the Payee
for any issuance tax in respect thereof or other cost incurred by the Company in connection with such conversion and the related
issuance of the Financing Stock. Upon conversion of this Note, the Company shall take all such actions as are necessary in order
to ensure that the Financing Stock issuable with respect to such conversion shall be validly issued, fully paid and nonassessable.

 

(c)
(i)  If the Company shall at any time or from time to time after the date hereof, effect a split or combination of the
Common Stock of the Company affecting the Financing Stock (or pay a stock dividend), then the number of shares of Financing Stock
shall be proportionately adjusted. Any such adjustments shall be effective at the close of business on the date the split or combination
becomes effective or the date of payment of the dividend, as applicable. 

 

    	-3-

    	 

    
 

 (ii) Merger
Sale, Reclassification, Etc.  In case of any (A) consolidation or merger (including a merger in which the Company is the surviving
entity), (B) sale or other disposition of all or substantially all of the Company’s assets or distribution of property to
members (other than distributions payable out of earnings or retained earnings), or reclassification, change or conversion of the
outstanding securities of the Company or of any reorganization of the Company (or any other company the stock or securities of
which are at the time receivable upon the conversion of this Note) or any similar corporate reorganization on or after the date
hereof, then and in each such case the Payee of this Note, upon the exercise of the Note, shall be entitled to receive, in lieu
of the Financing Stock, the number of shares of Financing Stock to which such Payee would have been entitled upon such consummation
if such Payee had exercised this Note immediately prior thereto."

 

(iii)Share Issuance.
If at any time following the delivery of this Note the Company shall have issued shares of Common Stock or securities issuable
or convertible into shares of Common Stock at a price below $5.15 per share (which for the avoidance of doubt shall be measured
by taking into account any transfers of Common Stock from existing stockholders of the Company to the recipient of such issuances
at a price below $5.15 per share), the Conversion Price shall be such lower price and shall be the basis for any further adjustments
as set forth herein.

 

4.      Event of Default. The outstanding
principal and accrued interest hereunder shall, at the option of the Payee, become due and payable without notice or demand, upon
the happening of any one of the following specified events (each, an “Event of Default”): (a) the Company shall fail
to pay any principal or interest hereunder when due; (b) the Company shall fail to perform or observe any other material term,
covenant or agreement contained herein or in the Note Agreement on its part to be performed or observed and any such failure remains
unremedied for ten (10) business days after the occurrence of such event; (c) material breach of any of the representations or
warranties made by the Company in the Note Agreement (d) an Event of Default has occurred and is continuing under any of the Notes
after the Company has been provided with ten (10) business days to cure (e) the Company shall (i) admit in writing its inability
to pay its debts generally as they become due; (ii) commence a voluntary case under Title 11 of the United States Code as
from time to time in effect; (iii) file an answer or other pleading admitting or failing to deny the material allegations of a
petition filed against it commencing an involuntary case under said Title 11, or seek, consent to or acquiesce in the relief
therein provided, or fail to controvert timely the material allegations of any such petition; (iv) have a petition filed commencing
involuntary bankruptcy proceedings against the Company in any involuntary case commenced under said Title 11; (v) seek relief
as a debtor under any applicable law, other than said Title 11, of any jurisdiction relating to the liquidation or reorganization
of debtors or to the modification or alteration of the rights of creditors, or consent to or acquiesce in such relief; (vi) have
an order entered against the Company by a court of competent jurisdiction (A) finding it to be bankrupt or insolvent, (B) ordering
or approving its liquidation, reorganization or any modification or alteration of the rights of its creditors, or (C) assuming
custody of, or appointing a receiver or other custodian for, all or a substantial part of its property; or (vii) make a general
assignment for the benefit of its creditors, or appoint or consent to the appointment of a receiver or other custodian for all
or a substantial part of its property. Notwithstanding anything to the contrary contained herein, an Event of Default occurring
with respect to any Note issued pursuant to the Note Agreement shall constitute an Event of Default hereunder.

 

    	-4-

    	 

    
 

5.      Security. This Note is secured
pursuant to the Note Agreement. Reference is hereby made to the Note Agreement for a description of the nature and the extent of
the security for this Note and the rights with respect to such security of the Payee.

 

6.      Suits for Enforcement. Upon
the occurrence of any one or more Events of Default, the Payee may proceed to protect and enforce its rights by suit in equity,
action at law or by other appropriate proceeding, whether for the specific performance of any covenant or agreement contained in
this Note or the Note Agreement, or in aid of the exercise of any power granted in this Note or the Note Agreement, or may proceed
to enforce the payment of this Note, or to enforce any other legal or equitable right of the Payee. The Payee may direct the time,
method and place of conducting any proceeding for any remedy available to it. In case of any Event of Default under this Note,
the Company will pay to the Payee such amount as shall be sufficient to cover the reasonable costs and expenses of such Payee due
to such Event of Default or in enforcing or collecting this Note.

 

7.      Notices. All notices, demands,
requests or other communications that may be or are required to be given, served or sent by any party pursuant to this Note will
be in writing, will reference this Note and shall be mailed by first class, registered or certified mail, return receipt requested,
postage prepaid, or transmitted by hand delivery, overnight courier or facsimile transmission, addressed as follows: (a) if to
the Company, to Universal Business Payment Solutions Acquisition Corporation, Radnor Financial Center, 150 North Radnor-Chester
Road, Suite F-200, Radnor PA 19087, Attention: Chief Executive Officer, with a copy to Dechert LLP, 2929 Arch Street, Philadelphia,
PA 19104, Attention: James A. Lebovitz, Facsimile (215) 994-22220 and (b) if to the Payee, at the address set forth for the Payee
in the preamble to this Note, or at such other address or addresses as shall have been furnished in writing by such party to the
others, Attention: General Counsel. Each notice or other communication that is mailed, delivered or transmitted in the manner described
above shall be deemed sufficiently given, served, sent and received for all purposes at such time as it is delivered to the addressee
(with the return receipt, the delivery receipt, the fax confirmation sheet or the affidavit of messenger being deemed conclusive
evidence of such delivery) or at such time as delivery is refused by the addressee upon presentation.

 

    	-5-

    	 

    
 

8.      General. No remedy herein
conferred upon the Payee is intended to be exclusive of any other remedy and each and every such remedy shall be cumulative and
shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute or otherwise.
No course of dealing between the Company and the Payee or any delay on the part of the Payee in exercising any rights hereunder
shall operate as a waiver of any right. To the extent permitted by law, the Company hereby expressly waives presentment, demand,
and protest, notice of demand, dishonor and nonpayment of this Note, and all other notices or demands of any kind in connection
with the delivery, acceptance, performance, default or enforcement hereof, and hereby consents to any delays, extensions of time,
renewals, waivers or modifications that may be granted or consented to by the Payee with respect to the time of payment. This Note
may not be amended or modified, and no provisions hereof may be waived, without the written consent of the Company and the holders
of all outstanding principal under the Notes at the time such modification or amendment shall become effective. Notwithstanding
the foregoing, the Payee may make any waiver to any action hereunder as to its own rights without a similar action being taken
by the holders of the other Notes, provided that such waiver is in writing. If any provision of this Note shall be declared void
or unenforceable by any judicial or administrative authority, the validity of any other provision and of the entire Note shall
not be affected thereby. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation
of the Note, the Company will issue a new Note, of like tenor and amount and dated the date to which interest has been paid, in
lieu of such lost, stolen, destroyed or mutilated Note. This Note shall be binding upon and inure to the benefit of Payee and its
successors and assigns. This Note and the rights and obligations herein may not be assigned by the Payee, except to fund entities
affiliated with Payee or in the case of an individual Payee to an entity wholly-owned by such individual Payee, without the prior
written consent of the Company.

 

9.      Governing Law. This Agreement
shall be governed by and construed in accordance with the laws of the State of Delaware.

 

    	-6-

    	 

    
 

IN WITNESS WHEREOF, the Company has executed
this Note as an instrument under seal as of the day and year first above written.

 

 

 

 

	 	
        UNIVERSAL BUSINESS PAYMENT SOLUTIONS ACQUISITION CORPORATION

         

         

        By:__________________

        Name: Bipin C. Shah

        Title:Chief Executive Officer

         

	 	 
	 	 
	 	
        [INVESTOR]

         

        By:__________________

        Name: ________________

        Title:_________________

         

 

    	 

    	 

    
 

EXHIBIT C

 

LLC INTERESTS COLLATERAL

 

“All of the LLC Interests of JetPay, LLC owned free and
clear of liens by the Company, which consists of 50% of the issued and outstanding LLC interests of JetPay, LLC”

 

    	 

    	 

    

 

EXHIBIT D

 

Form of Registration Rights Agreement

 

    	 

    	 

    
 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS AGREEMENT (this
“Agreement”) is entered into as December 28, 2012, by and among Universal Business Payment Solutions Acquisition
Corporation, a Delaware corporation (the “Company”), and the undersigned party whose name appears listed under
the heading “Stockholder” on the signature page hereto.

   

1.                 
Definitions.

 

“Common Stock” means (i) shares of the Common
Stock, par value $0.001 per share, of the Company and (ii) any shares of capital stock of the Company issued or issuable with respect
to securities referred to in clause (i) above by way of a stock dividend or distribution payable thereon or stock split, reverse
stock split, recapitalization, reclassification, reorganization, exchange, subdivision or combination thereof.

 

“Damages” has the meaning set forth in Section
6(a) hereof.

 

“Demand Registration” has the meaning set
forth in Section 4(a) hereof.

 

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

 

“Incidental Registration” has the meaning
set forth in Section 3(a) hereof.

 

“Prospectus” means the prospectus included
in any Registration Statement, as amended or supplemented by any prospectus supplement with respect to the terms of the offering
of any portion of the Registrable Securities covered by such Registration Statement and all other amendments and supplements to
the Prospectus, including post-effective amendments, and all material incorporated by reference in such Prospectus.

 

“Registration Expenses” means (i) all registration
and filing fees, (ii) fees and expenses of compliance with any securities or blue sky laws (including reasonable fees and disbursements
of counsel in connection with blue sky qualifications of the securities registered), (iii) printing expenses, (iv) internal expenses
of the Company (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting
duties), (v) reasonable fees and disbursements of counsel for the Company and customary fees and expenses for independent certified
public accountants retained by the Company (including the expenses relating to any comfort letters or costs associated with the
delivery by independent certified public accountants of a comfort letter or comfort letters requested pursuant to Section 5(g)
hereof), (vi) reasonable fees and expenses of any special experts retained by the Company in connection with such registration,
(vii) reasonable fees and expenses of one counsel for all of the holders of Registrable Securities participating in the offering
selected (A) by the Stockholders, or (B) in any other case, by the holders of the majority of Registrable Securities to be sold
for the account of all holders of Registrable Securities in the offering, (viii) fees and expenses in connection with any review
of underwriting arrangements by the Financial Industry Regulatory Authority (“FINRA”) including fees and expenses
of any “qualified independent underwriter” and (ix) fees and disbursements of underwriters customarily paid by issuers
or sellers of securities, but shall not include any underwriting fees, discounts or commissions attributable to the sale of Registrable
Securities, or any out-of-pocket expenses (except as set forth in clause (vii) above) of the holders of Registrable Securities
to be sold in the offering (or the agents who manage their accounts) or any fees and expenses of underwriter’s counsel.

 

    	 

    	 

    

 

“Registration Statement” means any registration
statement of the Company which covers any of the Registrable Securities pursuant to the terms hereof, including the Prospectus,
amendments and supplements to such Registration Statement, including post-effective amendments, all exhibits and all material incorporated
by reference in such Registration Statement.

 

“Registrable Securities” has the meaning
set forth in Section 2 hereof.

  

“Special Registration Statement” means (i)
a registration statement on Forms S-8 or S-4 or any similar or successor form or any other registration statement relating to an
exchange offer or an offering of securities solely to the Company’s security holders, employees, directors, consultants or
other business associates or (ii) a registration statement registering a Unit Offering.

 

“Underwritten Registration” or “Underwritten
Offering” means a registration in which securities of the Company are sold to an underwriter for reoffering to the public.

  

2.                 
Registrable Securities. The securities entitled to the benefits set forth herein are the Registrable Securities.
As used herein, “Registrable Securities” means the shares of Common Stock that are issued (or issuable) and outstanding
as a result of the Stockholder’s conversion rights under that certain Secured Convertible Promissory Note, dated as of December
28, 2012, executed by the Company in favor of the Stockholder; provided, however, that each share of Common Stock
shall cease to be a Registrable Security when (i) it has been effectively registered under the Securities Act and disposed of in
accordance with the registration statement covering it; (ii) it is distributed to the public pursuant to Rule 144 (or any similar
provisions then in force) under the Securities Act or all shares of Common Stock held by an Investor or its Affiliates are then
distributable at one time under Rule 144 (or any similar provisions then in force) under the Securities Act; or (iii) it has otherwise
been transferred and a new certificate or other evidence of ownership for it not bearing or requiring a legend and not subject
to any stop transfer order has been delivered by or on behalf of the Company and no other restriction on transfer exists under
the Securities Act.

 

    	 

    	 

    
 

3.                 
Incidental Registration.

 

(a)               
Right to Include Common Stock. If at any time or from time to time following the date the Company proposes to register
any of its Common Stock under the Securities Act (other than on a Special Registration Statement), whether or not for sale for
its own account, it will each such time, as promptly as practicable following the date of filing with the Commission or other applicable
regulatory authority of a registration statement or similar document with respect to such registration, give written notice (the
“Incidental Registration Notice”) to all holders of Registrable Securities of its intention to register its
Common Stock under the Securities Act, and of such holders’ rights under this Section 3. Upon the written request of
any such holders of Registrable Securities made within five business (5) days of the date of the Incidental Registration Notice
(which request shall specify the aggregate number of the Registrable Securities to be registered and will also specify the intended
method of disposition thereof), the Company will effect the registration under the Securities Act of all Registrable Securities
which the Company has been so requested to register by the holders thereof (an “Incidental Registration”), to
the extent required to permit the public disposition (in accordance with such intended methods thereof) of the Registrable Securities
to be so registered; provided, however, that (i) if, at any time after giving written notice of its intention to
register shares of Common Stock and prior to the effective date of the registration statement filed in connection with such registration,
the Company shall determine for any reason not to register the Company’s Common Stock, the Company shall give written notice
of such determination to each holder of Registrable Securities and, thereupon, shall be relieved of its obligation to register
any Registrable Securities in connection with such registration (but not from its obligation to pay the Registration Expenses in
connection therewith); (ii) if a registration requested pursuant to this Section 3 shall involve an underwritten public offering,
any holder of Registrable Securities requesting to be included in such registration may elect, in writing at least five (5) days
prior to the effective date of the registration statement filed in connection with such registration, not to register such securities
in connection with such registration; and (iii) if, at any time after the 180-day or shorter period specified in Section 3(b),
the sale of the securities has not been completed, the Company may withdraw from the registration the Registrable Securities which
the Company has been requested to register and which have not been sold.

 

(b)              
Priority in Incidental Registrations. If a registration pursuant to Section 3(a) involves an Underwritten Offering
and the managing underwriter advises the Company in writing that, in its opinion, the total number of shares of Common Stock to
be included in such registration, including the Registrable Securities requested to be included pursuant to this Section 3, exceeds
the maximum number of shares of Common Stock specified by the managing underwriter that may be distributed without adversely affecting
the price, timing or distribution of such shares of Common Stock, then the Company shall include in such registration only such
maximum number of Registrable Securities which, in the reasonable opinion of such underwriter or underwriters, can be sold in the
following order of priority: (i) first, all of the shares of Common Stock that the Company proposes to sell for its own account,
if any, (ii) second, all of the shares of Common Stock being registered by holder(s) of Registrable Securities pursuant to a Demand
Registration (as hereinafter defined), and (iii) third, the Registrable Securities of the holder(s) of Registrable Securities requested
to be included in such Incidental Registration. To the extent that shares of Common Stock to be included in the Incidental Registration
must be allocated among the holder(s) of Registrable Securities pursuant to clause (iii) above, such shares shall be allocated
pro rata among the holder(s) of Registrable Securities based on the number of shares of Common Stock that such holder(s) of Registrable
Securities shall have requested to be included therein. Notwithstanding the foregoing, if an Incidental Registration is an Underwritten
Offering, the managing underwriter or underwriters may select shares for inclusion, or exclude shares completely, in such Incidental
Registration on a basis other than a pro rata basis if, in the reasonable opinion of such underwriter or underwriters, selection
on such other basis, or inclusion of such shares, would be material to the success of the offering.

 

    	 

    	 

    
 

(c)               
Expenses. The Company will pay all Registration Expenses in connection with any registration of Registrable Securities
requested pursuant to this Section 3.

 

(d)              
Liability for Delay. The Company shall not be held responsible for any delay in the filing or processing of a registration
statement which includes any Registrable Securities due to requests by holders of Registrable Securities pursuant to this Section
3 nor for any delay in requesting the effectiveness of such registration statement.

 

(e)               
Participation in Underwritten Registrations. No holder of Registrable Securities may participate in any Underwritten
Registration hereunder unless such holder (i) agrees to sell such holder’s Common Stock on the basis provided in any underwriting
arrangements approved by the persons who have selected the underwriter and (ii) accurately completes in a timely manner and executes
all questionnaires, powers of attorney, escrow agreements, underwriting agreements and other documents customarily required under
the terms of such underwriting arrangements.

 

4.                 
Demand Registration.

 

(a)               
Right to Demand Registration. Subject to Section 4(b) below, the Stockholder shall be entitled to make a written
request (“Demand Registration Request”) to the Company for registration with the Commission under and in accordance
with the provisions of the Securities Act of all or part of the Registrable Securities owned by it (a “Demand Registration”)
(which Demand Registration Request shall specify the intended number of Registrable Securities to be disposed of by such holder
and the intended method of disposition thereof); provided, however, that (i) the Company may, if the Board of Directors
so determines in the exercise of its reasonable judgment that due to a pending or contemplated acquisition or disposition or public
offering it would be inadvisable to effect such Demand Registration at such time, defer such Demand Registration for a single period
not to exceed ninety (90) days but, if requested by the party requesting such Demand Registration, the Company shall prepare for
such Demand Registration so that it will be in a position to file for such Demand Registration promptly following the expiration
of such period; provided, however, that the Company may not defer Demand Registrations more than once in any 365-day
period, and (ii) if the Company elects not to effect the Demand Registration pursuant to the terms of this sentence, no Demand
Registration shall be deemed to have occurred for purposes hereof. Promptly after receipt of the Demand Registration Request, the
Company will serve written notice (the “Demand Notice”) of such Demand Registration Request to all holders of
Registrable Securities and, subject to paragraph (c) below, the Company will include in such registration all Registrable Securities
of such holders with respect to which the Company has received written requests for inclusion therein from such holders within
five (5) business days after the receipt by the applicable holder of the Demand Notice. All requests made pursuant to this Section
4(a) will specify the aggregate number of the Registrable Securities to be registered and will also specify the intended methods
of disposition thereof.

 

    	 

    	 

    
 

(b)              
Number of Demand Registrations. The Stockholder shall be entitled to make up to three (3) Demand Registration Requests
at any time. A Demand Registration shall not be counted as a Demand Registration hereunder until such Demand Registration has been
declared effective and maintained continuously effective for a period of at least six (6) months or such shorter period when all
Registrable Securities included therein have been sold in accordance with such Demand Registration.

 

(c)               
Priority on Demand Registration. If any of the Registrable Securities proposed to be registered pursuant to a Demand
Registration are to be sold in a firm commitment Underwritten Offering and the managing underwriter or underwriters of a Demand
Registration advise the Company and the holders of such Registrable Securities in writing that in its or their reasonable opinion
the number of shares of Common Stock proposed to be sold in such Demand Registration exceeds the maximum number of shares specified
by the managing underwriter that may be distributed without adversely affecting the price, timing or distribution of the Common
Stock, the Company shall include in such registration only such maximum number of Registrable Securities which, in the reasonable
opinion of such underwriter or underwriters can be sold in the following order of priority: (i) first, the Registrable Securities
requested to be included in such Demand Registration held by the party requesting such Demand Registration and such party’s
Permitted Transferees; (ii) second, shares of Common Stock to be offered by the Company in such Demand Registration; and (iii)
third, shares of Common Stock requested to be included in such Demand Registration held by all other holders of Common Stock, provided
that such amount shall be allocated among such other holders as provided in Section 3(b).

 

(d)              
Expenses. The Company will pay all Registration Expenses in connection with any registration of Registrable Securities
requested pursuant to this Section 4.

 

5.                 
Registration Procedures. If and whenever the Company is required to effect or cause the registration of any Registrable
Securities under the Securities Act as provided herein, the Company will, as expeditiously as possible:

 

(a)               
prepare and file with the Commission a registration statement with respect to such Registrable Securities, and use its best
efforts to cause such registration statement to become effective; provided, however, that the Company may discontinue
any registration of its securities which is being effected pursuant to Sections 3 or 4 herein at any time prior to the effective
date of the registration statement relating thereto, provided, however, that any such discontinuance is conducted
in accordance with all other applicable provisions hereof;

 

    	 

    	 

    
 

(b)              
prepare and file with the Commission such amendments and supplements to such registration statement and the prospectus used
in connection therewith as may be necessary to keep such registration statement effective for a period of not less than 180 days
or such shorter period which will terminate when all Registrable Securities covered by such registration statement have been sold
(but not before the expiration of the applicable period referred to in Section 4(3) of the Securities Act and Rule 174 thereunder,
if applicable) and comply with the provisions of the Securities Act with respect to the disposition of all securities covered by
such registration statement during such period in accordance with the intended methods of disposition by the seller or sellers
thereof set forth in such registration statement;

 

(c)               
furnish to each seller of such Registrable Securities such number of copies of such registration statement and of each such
amendment and supplement thereof (in each case including all exhibits), such number of copies of the prospectus included in such
registration statement (including each preliminary prospectus and summary prospectus), in conformity with the requirements of the
Securities Act, and such other documents as such seller may reasonably request in order to facilitate the disposition of the Registrable
Securities by such seller;

 

(d)              
use its best efforts to register or qualify such Registrable Securities covered by such registration statement under such
other securities or blue sky laws of such jurisdictions as each seller shall request, and do any and all other acts and things
which may be necessary or advisable to enable such seller to consummate the disposition in such jurisdictions of the Registrable
Securities owned by such seller; provided, however, that the Company shall not be required to qualify generally to
do business in any jurisdiction where it is not then so qualified or subject itself to general taxation in any jurisdiction where
it is not then so subject;

 

(e)               
immediately notify each seller of any Registrable Securities covered by such registration statement, at any time when a
prospectus relating thereto is required to be delivered under the Act within the appropriate period mentioned in clause (b) of
this Section 5, of the Company becoming aware that the prospectus included in such registration statement, as then in effect, includes
an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the
statements therein not misleading in the light of the circumstances then existing, and within ten (10) days prepare and furnish
to all sellers a reasonable number of copies of an amended or supplemental prospectus as may be necessary so that, as thereafter
delivered to the purchasers of such Registrable Securities, such prospectus shall not include an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading
in the light of the circumstances then existing;

 

(f)               
The Company will have the right, in its sole discretion, to select an underwriter or underwriters. In connection with any
Public Offering, the Company will enter into customary agreements (including an underwriting agreement in customary form) and take
such other actions as are reasonably required in order to expedite or facilitate the disposition of such Registrable Securities
in any such Public Offering, including the engagement of a “qualified independent underwriter” in connection with the
qualification of the underwriting arrangements with the FINRA;

 

    	 

    	 

    
 

(g)              
if such Registrable Securities are not already listed or quoted and if such listing is then permitted under the rules of
an exchange on which the Common Stock is then listed, use its best efforts to list such Registrable Securities on any securities
exchange on which the Common Stock is then listed, and provide an independent transfer agent and registrar for such Registrable
Securities covered by such registration statement not later than the effective date of such registration statement;

 

(h)              
furnish to each seller of Registrable Securities covered by such registration statement a signed counterpart, addressed
to such seller (and the underwriters, if any) of:

 

(i)an opinion of counsel
for the Company, dated the effective date of such registration statement (or, if such registration involves an underwritten public
offering, dated the date of the closing under the underwriting agreement), reasonably satisfactory in form and substance to the
sellers of not less than fifty percent (50%) of such Registrable Securities (and the managing underwriter, if any); and

 

(ii) a “comfort”
letter, dated the effective date of such registration statement (and, if such registration involves an underwritten public offering,
dated the date of the closing under the underwriting agreement), signed by the independent public accountants who have certified
the Company’s financial statements included in such registration statement, covering such matters with respect to such registration
statement as are customarily covered in accountants’ letters delivered to the underwriters in underwritten offerings of securities
as may reasonably be requested by the sellers of not less than fifty percent (50%) of such Registrable Securities (and the managing
underwriter, if any);

 

(i)                
make available for inspection by any seller of such Registrable Securities covered by such registration statement, by any
underwriter participating in any disposition to be effected pursuant to such registration statement and by any attorney, accountant
or other agent retained by any such seller or any such underwriter (individually, an “Inspector” and collectively,
the “Inspectors”), all pertinent financial and other records, pertinent corporate documents and properties of
the Company as shall be reasonably necessary to enable them to exercise their due diligence responsibility (collectively, the “Records”),
and cause all of the Company’s officers, directors and employees to supply all information reasonably requested by any such
seller, underwriter, attorney, accountant or agent in connection with such registration statement; provided, however,
that any Records that are designated by the Company in writing as confidential shall be kept confidential by the Inspectors unless
(i) the disclosure of such Records is necessary to avoid or correct a misstatement or omission in such registration statement or
(ii) the release of such Records is ordered pursuant to a subpoena or other order from a court of competent jurisdiction or by
any regulatory authority having jurisdiction. Each Investor agrees that non-public information obtained by it as a result of such
Inspections shall be deemed confidential and acknowledges its obligations under the Federal securities laws not to trade any securities
of the Company on the basis of material non-public information; and

 

(j)                
cause appropriate officers of the Company to (i) prepare and make presentations at any “road shows” and before
analysts and rating agencies, as the case may be, (ii) take other actions to obtain ratings for any Registrable Securities and
(iii) otherwise use their reasonable best efforts to cooperate as reasonably requested by the underwriters in the offering, marketing
or selling of the Registrable Securities.

 

    	 

    	 

    
 

(k)              
The Company may require each seller of Registrable Securities as to which any registration is being effected promptly to
furnish to the Company such information regarding the distribution of such Registrable Securities as may be legally required. Such
information shall be furnished in writing and shall state that it is being furnished for use in the registration statement.

 

(l)                
Each holder of Registrable Securities agrees by acquisition of such Registrable Securities that, upon receipt of any notice
from the Company of the happening of any event of the kind described in clause (e) of this Section 5, such holder will forthwith
discontinue disposition of Registrable Securities pursuant to the registration statement covering such Registrable Securities until
such holder’s receipt of the copies of the supplemented or amended prospectus contemplated by clause (e) of this Section 5,
and, if so directed by the Company, such holder will deliver to the Company (at the Company’s expense) all copies, other
than permanent file copies then in such holder’s possession, of the prospectus covering such Registrable Securities current
at the time of receipt of the Company’s notice. In the event the Company shall give any such notice, the period mentioned
in clause (b) of this Section 5 shall be extended by the number of days during the period from and including the date of the giving
of such notice pursuant to clause (e) of this Section 5 and including the date when each seller of Registrable Securities covered
by such registration statement shall have received the copies of the supplemented or amended prospectus contemplated by clause
(e) of this Section 5.

 

6.                 
Indemnification.

 

(a)               
Indemnification by the Company. The Company hereby agrees to indemnify and hold harmless each holder of Registrable
Securities which shall have been registered under the Securities Act, and such holder’s officers, directors and agents and
each other Person, if any, who controls such holder within the meaning of the Securities Act and each other Person (including underwriters)
who participates in the offering of such Registrable Securities against any losses, claims, damages, liabilities, reasonable attorneys’
fees, costs or expenses (collectively, the “Damages”), joint or several, to which such holder or controlling
Person or participating Person may become subject under the Securities Act or otherwise, insofar as such Damages (or proceedings
in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact made by
the Company or its agents contained in any registration statement under which such Registrable Securities are registered under
the Securities Act, in any preliminary prospectus or final prospectus contained therein, or in any amendment or supplement thereof,
or arise out of or 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, and will reimburse such holder of Registrable Securities or such controlling
Person or participating Person in connection with investigating or defending any such Damages or proceeding; provided, however,
that the Company will not be liable in any such case to the extent that any such Damages arise out of or are based upon (i) an
untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, such preliminary
or final prospectus or such amendment or supplement in reliance upon and in conformity with written information furnished to the
Company by such holder or such controlling or participating Person, as the case may be, specifically for inclusion in any such
document; or (ii) an untrue statement or alleged untrue statement, omission or alleged omission in a prospectus if such untrue
statement or alleged untrue statement, omission or alleged omission is corrected in an amendment or supplement to the prospectus
which amendment or supplement is delivered to such holder in a timely manner and such holder thereafter fails to deliver such prospectus
as so amended or supplemented prior to or concurrently with the sale of such Registrable Securities to the Person asserting such
Damages and such Damages would have been avoided if such holder had so delivered such prospectus as so amended or supplemented.

 

    	 

    	 

    
 

(b)              
Indemnification by the Holders of Registrable Securities Which Are Registered. It shall be a condition of the Company’s
obligations herein to effect any registration under the Securities Act that there shall have been delivered to the Company an agreement
or agreements duly executed by each holder of Registrable Securities to be so registered, whereby such holder agrees to indemnify
and hold harmless the Company, its directors, officers and agents and each other Person, if any, which controls the Company within
the meaning of the Securities Act against any Damages, joint or several, to which the Company, or such other Person or such Person
controlling the Company may become subject under the Securities Act or otherwise, but only to the extent that such Damages (or
proceedings in respect thereof) arise out of or are based upon any untrue statements or alleged untrue statement of any material
fact contained, on the effective date thereof, in any registration statement under which such Registrable Securities are registered
under the Securities Act, in any preliminary prospectus or final prospectus contained therein or in any amendment or supplement
thereto, or arise out of or 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, which, in each such case, has been made in or omitted from
such registration statement, such preliminary or final prospectus or such amendment or supplement in reliance upon, and in conformity
with, written information furnished to the Company by such holder of Registrable Securities specifically for inclusion in such
document. The Company shall be entitled to receive indemnities from underwriters, selling brokers, dealer managers and similar
securities industry professionals participating in the distribution, to the same extent as provided above, with respect to information
furnished in writing by such Persons specifically for inclusion in any prospectus or registration statement.

 

(c)               
Conduct of Indemnification Proceedings. Any Person entitled to indemnification hereunder shall (i) give prompt written
notice to the indemnifying party of the commencement of any action or proceeding involving a claim referred to in the preceding
Sections 6(a) and 6(b); and (ii) unless the indemnified party has been advised by its counsel that a conflict of interest exists
between such indemnified and indemnifying parties with respect to such claim, permit such indemnifying party to assume the defense
of such claim with counsel reasonably satisfactory to the indemnified party. Whether or not such defense is assumed by the indemnifying
party, the indemnifying party will not be subject to any liability for any settlement made without its consent (but such consent
will not be unreasonably withheld). No indemnifying party will consent to the entry of any judgment or enter into any settlement
which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a
release from all liability in respect of such claim or litigation; provided, however, that no indemnifying party
will consent to the entry of any judgment or enter into any settlement (other than for the payment of money only) without the consent
of the indemnified party (which consent will not be unreasonably withheld). An indemnifying party who is not entitled to, or elects
not to, assume the defense of the claim, will not be obligated to pay the fees and expenses of more than one counsel for all parties
indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party a
conflict of interest may exist between such indemnified party and any other such indemnified parties with respect to such claim,
in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel or counsels.

 

    	 

    	 

    
 

(d)              
Contribution. If for any reason the indemnification provided for in the preceding Sections 6(a) or 6(b) is unavailable
to an indemnified party in respect of any Damages referred to therein, the indemnifying party shall contribute to the amount paid
or payable by the indemnified party as a result of such Damages in such proportion as is appropriate to reflect not only the relative
benefits received by the indemnified party and the indemnifying party, but also the relative fault of the indemnified party and
the indemnifying party, as well as any other relevant equitable considerations. The relative fault of such indemnifying party and
indemnified parties shall be determined by reference to, among other things, whether any action in question, including any untrue
or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates
to information supplied by, such indemnifying party or indemnified parties, and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such action; provided, however, that in no event shall
the liability of any selling holder of Registrable Securities hereunder be greater in amount than the difference between the dollar
amount of the proceeds received by such holder upon the sale of the Registrable Securities giving rise to such contribution obligation
and all amounts previously contributed by such holder with respect to such Damages. 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 fraudulent misrepresentation.

 

6.10         
.

 

7.                 
Liquidated Damages. In the event that a Registration Statement is not declared effective by June 30, 2013, the conversion
price as set forth in the Secured Convertible Note pursuant to the Note Agreement shall be reduced by $0.15 per share and then
by an additional $0.05 per share for every 30 days after June 30, 2013 that the Registration Statement has not been declared effective

 

8.                 
Hold-Back Agreements.

 

(a)               
Restrictions on Public Sale by Company and Holders of Common Stock. The Company and each holder of Common Stock whose
Common Stock is eligible for inclusion in a Registration Statement filed pursuant to Sections 3 or 4, if requested by the managing
underwriter or underwriters in an Underwritten Offering of any Registrable Securities, agrees not to, directly or indirectly (except
with respect to the Company in connection with a Special Registration Statement), (i) offer for sale, sell, pledge or otherwise
dispose of (or enter into any transaction or device that is designed to, or could be expected to, result in the disposition by
any person at any time in the future of) any Common Stock (including, without limitation, Common Stock that may be deemed to be
beneficially owned by the undersigned in accordance with the rules and regulations of the Commission and Common Stock that may
be issued upon exercise of any option or warrant) or securities convertible into or exchangeable for Common Stock , or (ii) enter
into any swap or other derivatives transaction that transfers to another, in whole or in part, any of the economic benefits or
risks of ownership of such Common Stock , whether any such transaction described in clause (i) or (ii) above is to be settled by
delivery of Common Stock or other securities, in cash or otherwise, during the ten (10) day period prior to, and for a period of
180 days after, the effective date of the Registration Statement, to the extent timely notified in writing by the managing underwriter,
or, with respect to each such holder of Common Stock, the Company. Additionally, the Company agrees to use reasonable efforts to
cause each holder of Common Stock purchased from the Company at any time after the date of the Agreement (other than in a registered
public offering) to agree to the provisions of this Section 7(a).

 

    	 

    	 

    
 

(b)              
Certain Holders of Registrable Securities Excepted. The provisions of Section 7(a) shall not apply to any holder
of Registrable Securities if such holder is prevented by applicable statute or regulation from entering into any such agreement;
provided, however, that any such holder shall undertake, in its request to participate in any such Underwritten Offering,
not to effect any public sale or distribution of Registrable Securities (except as part of such Underwritten Registration) during
such period unless it has provided forty-five (45) days prior written notice of such sale or distribution to the managing underwriter
or underwriter.

 

9.                                         
Underwritten Registration. If any of the Registrable Securities covered by any Incidental Registration or a Demand
Registration are to be sold in an Underwritten Offering, the investment banker or investment bankers and manager or managers that
will administer the offering will be selected by the Company. Notwithstanding anything herein to the contrary, no Person may participate
in any Underwritten Registration hereunder unless such Person (a) agrees to sell such Person’s securities on the basis provided
in any underwritten arrangements approved by the Persons entitled hereunder to approve such arrangement and (b) accurately completes
and executes all questionnaires, powers of attorney, indemnities, custody agreements, underwriting agreements and other documents
required under the terms of such underwriting arrangements.

 

* * * * *

 

    	 

    	 

    
 

IN WITNESS WHEREOF,
each Stockholder and the Company has caused its signature page to this Registration Rights Agreement to be duly executed as of
the date first written above.

 

	 	COMPANY:
	 	 
	 	UNIVERSAL BUSINESS PAYMENT SOLUTIONS ACQUISITION CORPORATION
	 	 
	 	By:_____________________________________
	 	Name:  Bipin C. Shah
	 	Title:    Chairman and Chief Executive Officer

 

    	 

    	 

    
 

	 	STOCKHOLDER:
	 	 
	 	By:_____________________________________
	 	Name:
	 	Address:

Facsimile:

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