Document:

Exhibit 10.4

 

COLLATERAL AGENT AGREEMENT

 

COLLATERAL AGENT AGREEMENT
(this “Agreement”) dated as of June 11, 2013, among Greg Bloom, as collateral agent (the “Collateral
Agent”), the parties identified on the signature pages hereto, as lenders (each, individually, a “Lender”
and collectively, the “Lenders”), and Rackwise, Inc., a Nevada corporation, as borrower (the “Borrower”).

 

WHEREAS, the Lenders
have made, are making and will be making loans to Borrower to be secured by certain Collateral (as defined in the Security Agreement);
and

 

WHEREAS, it is desirable
to provide for the orderly administration of such Collateral by requiring each Lender to appoint the Collateral Agent, and the
Collateral Agent has agreed to accept such appointment and to administer such Collateral, all upon the terms and subject to the
conditions hereinafter set forth.

 

NOW, THEREFORE, in
consideration of the premises set forth herein and for other good and valuable consideration, the parties hereto agree as follows:

 

1.           Collateral.

 

(a)          Contemporaneously
with the execution and delivery of this Agreement, (i) the Lenders and the Borrower have entered into a Security Agreement (the
“Security Agreement”) regarding the grant of a security interest in the Collateral, and (i) the Lenders and
Visual Network Design, Inc., a Delaware corporation and a wholly-owned subsidiary of the Borrower (“VNDI”),
have entered into a Guaranty (the “Guaranty”) pursuant to which VNDI agreed to jointly and severally guaranty
all of the Borrower’s obligations under and with respect to the Transaction Documents (as defined in the Security Agreement).
Collectively, this Agreement, the Security Agreement, the Guaranty and other agreements referred to therein are referred to herein
as “Borrower Documents.”

 

(b)          The
Collateral Agent hereby acknowledges that the Borrowers have granted such security interest in the Collateral to the Lender and
that the Lenders are hereby appointing the Collateral Agent to administer the Collateral for the benefit of the Lenders in accordance
with this Agreement. No reference to the Borrower Documents or any other instrument or document shall be deemed to incorporate
any term or provision thereof into this Agreement unless expressly so provided.

 

(c)          The
Collateral Agent is to distribute in accordance with the Borrower Documents any proceeds received from the Collateral which are
distributable to the Lenders in proportion to their respective interests.

 

    	 

    	 

    

 

2.           Appointment
of the Collateral Agent.

 

(a)          The
Lenders hereby appoint the Collateral Agent (and the Collateral Agent hereby accepts such appointment) to take any action the Collateral
Agent deems appropriate in consultation with the Majority in Interests, including, without limitation, the registration of any
Collateral in the name of the Collateral Agent or its nominees prior to or during the continuance of an Event of Default (as defined
in the Borrower Documents), the exercise of voting rights upon the occurrence and during the continuance of an Event of Default,
the application of any cash Collateral received by the Collateral Agent to the payment of the Obligations, the making of any demand
under the Borrower Documents, the exercise of any remedies given to the Collateral Agent pursuant to the Borrower Documents and
the exercise of any authority pursuant to the appointment of the Collateral Agent as an attorney-in-fact pursuant to the Security
Agreement that the Collateral Agent deems necessary or proper for the administration of the Collateral pursuant to the Security
Agreement. Upon disposition of the Collateral in accordance with the Borrower Documents, the Collateral Agent shall promptly distribute
any cash or Collateral in accordance with the Security Agreement. The Collateral Agent will not be required to act hereunder in
connection with debt which was not disclosed in writing to the Collateral Agent nor will the Collateral Agent be required to act
on behalf of any assignee of any debt without the written consent of Collateral Agent, which shall not be unreasonably withheld,
conditioned or delayed.

 

NOTWITHSTANDING ANYTHING
CONTAINED HEREIN OR IN ANY BORROWER DOCUMENT TO THE CONTRARY, THE COLLATERAL AGENT SHALL NOT BE REQUIRED TO PERFORM ANY ACTION
(INCLUDING ANY OMISSION) WHICH COLLATERAL AGENT DEEMS UNNECESSARY OR INADVISABLE, IN ITS SOLE DISCRETION, FOR THE PROTECTION OF
THE COLLATERAL. LENDER EXPRESSLY AGREES THAT THE COLLATERAL AGENT SHALL NOT BE REQUIRED TO PERFORM ANY FUNCTION UNDER ANY BORROWER
DOCUMENT OR, IN ANY WAY, TO MONITOR, VERIFY, NOTIFY, INSTRUCT, CONTROL, ENFORCE, DEMAND PAYMENT, RECEIVE, COLLECT, EXERCISE, SETTLE,
DISCHARGE, PREPARE, FILE, OR TAKE ANY OTHER ACTION WITH RESPECT TO THE COLLATERAL, PROVIDED, HOWEVER, THAT, SUBJECT TO THE TERMS
AND CONDITIONS HEREIN CONTAINED, THE COLLATERAL AGENT SHALL FOLLOW THE WRITTEN INSTRUCTION OF THE MAJORITY IN INTEREST (AS DEFINED
BELOW), AND ONLY UPON RECEIPT OF SUCH WRITTEN INSTRUCTION, IF THE COLLATERAL AGENT DEEMS SUCH WRITTEN INSTRUCTION NECESSARY OR
ADVISABLE FOR THE PROTECTION THEREOF. COLLATERAL AGENT SHALL NOT BE LIABLE FOR ANY ACTION OR OMISSION ABSENT FRAUD, GROSS NEGLIGENCE
OR WILLFUL MISCONDUCT.

 

(b)          The
Lenders agree that in the event that the Collateral Agent is unable to perform or does not perform any of its duties or actions
under this Agreement, Majority in Interest shall act as the Collateral Agent, or appoint a designee to act as the Collateral Agent,
on behalf of the Lenders for the purposes of carrying out such duties or actions.

 

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3.           Action
by the Majority in Interest.

 

(a)          Certain
Actions. Each of the Lenders covenants and agrees that only a Lender or Lenders then holding in excess of fifty percent (50%)
of the then aggregate unpaid principal amount evidenced by the Borrower Documents (such majority, a “Majority in Interest”)
shall have the right, but not the obligation, to request that the Collateral Agent undertake any actions (it being expressly understood
that less than a Majority in Interest hereby expressly waives such rights that they may otherwise have under the Borrower Documents).
Upon receipt of written request by the Majority in Interest, the Collateral Agent shall have the right, but not the obligation,
to undertake such actions to protect or enforce the Lenders’ rights in the Collateral, including, but not limited to, the
following:

 

(i)          Acceleration.
If an Event of Default occurs, after the applicable cure period, if any, a Majority in Interest may, on behalf of all the Lenders,
instruct the Collateral Agent to provide to Borrowers notice to cure such default and/or declare the unpaid principal amount outstanding
to be due and payable, together with any and all accrued interest thereon and all costs payable;

 

(ii)         Enforcement.
Upon the occurrence of any Event of Default after the applicable cure period, if any, a Majority in Interest may instruct the Collateral
Agent to proceed to protect, exercise and enforce, on behalf of all the Lenders, their rights and remedies under the Borrower Documents
against Borrowers, and such other rights and remedies as are provided by law or equity; and

 

(iii)        Waiver
of Past Defaults. A Majority in Interest may instruct the Collateral Agent to waive any Event of Default by written notice
to Borrowers, and the other Lenders, but not waive damages accrued or accruing until the effective date of such waiver.

 

(b)          Permitted
Subordination and Release. A Majority in Interest may instruct the Collateral Agent to agree to release in whole or in part
or to subordinate any Collateral to any claim or other actual or proposed security interest and may enter into any agreement with
Borrowers to evidence such subordination.

 

(c)          Further
Actions. A Majority in Interest may instruct the Collateral Agent to take any action that it may take under this Agreement
by instructing the Collateral Agent in writing to take such action on behalf of all the Lenders.

 

4.           Power
of Attorney.

 

(a)          To
effectuate the terms and provisions hereof, the Lenders hereby appoint (i) the Collateral Agent as their attorney-in-fact (and
the Collateral Agent hereby accepts such appointment), and (ii) with respect to Section 2(b), the Majority in Interests as their
attorney-in-fact (and Majority In Interest hereby accepts such appointment, if applicable), for the purpose of carrying out the
provisions of this Agreement including, without limitation, taking any action on behalf of, or at the instruction of, the Majority
in Interest (or the Lenders as applicable) at the written direction of the Majority in Interest and executing any consent authorized
pursuant to this Agreement and taking any action and executing any instrument that the Collateral Agent (or Majority in Interest,
as applicable) may deem necessary or advisable (and lawful) to accomplish the purposes hereof.

 

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(b)          All
acts done under the foregoing authorization are hereby ratified and approved and neither the Collateral Agent, Majority in Interest
nor any of their designee nor agent thereof shall be liable for any acts of commission or omission, for any error of judgment,
for any mistake of fact or law except for acts of fraud, gross negligence or willful misconduct.

 

(c)          This
power of attorney, being coupled with an interest, is irrevocable while this Agreement remains in effect.

 

5.           Expenses
of the Collateral Agent. The Lenders shall pay any and all reasonable costs and expenses incurred by the Collateral Agent,
including, without limitation, costs and expenses relating to all waivers, releases, discharges, satisfactions, modifications and
amendments of this Agreement, the administration and holding of the Collateral, insurance expenses, and the enforcement, protection
and adjudication of the parties' rights hereunder by the Collateral Agent, including, without limitation, the disbursements, reasonable
expenses and fees of the attorneys the Collateral Agent may retain.

 

6.           Duties
of the Collateral Agent; Standard of Care.

 

(a)          The
Collateral Agent's only duties are those expressly set forth in this Agreement, and the Collateral Agent hereby is authorized to
perform those duties in accordance with commercially reasonable practices. The Collateral Agent may exercise or otherwise enforce
any of its rights, powers, privileges, remedies and interests under this Agreement and applicable law or perform any of its duties
under this Agreement by or through its officers, employees, attorneys, or agents.

 

(b)          The
Collateral Agent shall act in good faith and with that degree of care that an ordinarily prudent person in a like position would
use under similar circumstances.

 

(c)          Any
funds held by the Collateral Agent hereunder need not be segregated from other funds except to the extent required by law. The
Collateral Agent shall be under no liability for interest on any funds received by it hereunder.

 

7.           Resignation.
The Collateral Agent may resign and be discharged of its duties hereunder at any time by giving written notice of such resignation
to the other parties hereto, stating the date such resignation is to take effect. Within fifteen (15) days of the giving of such
notice, a successor collateral agent shall be appointed by the Majority in Interest; provided, however, that if the
Majority in Interest is unable so to appoint a successor within such time period, and notify the Collateral Agent during such period
of the identity of the successor collateral agent, the successor collateral agent may be a person designated by the Collateral
Agent, and any and all reasonable fees of such successor collateral agent shall be the joint and several obligation of the Lenders.
The Collateral Agent shall continue to serve until the effective date of the resignation or until its successor accepts the appointment
and receives the Collateral held by the Collateral Agent but shall not be obligated to take any action hereunder. The Collateral
Agent may deposit any Collateral with the Supreme Court of the State of New York or the Superior Court of the State of New Jersey
or any such other court in the State of New York or the State of New Jersey that accepts such Collateral.

 

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8.           Exculpation.
The Collateral Agent and its officers, employees, attorneys and agents, shall not incur any liability whatsoever for the holding
or delivery of documents or the taking of any other action in accordance with the terms and provisions of this Agreement, for any
mistake or error in judgment, for compliance with any applicable law or any attachment, order or other directive of any court or
other authority (irrespective of any conflicting term or provision of this Agreement), or for any act or omission of any other
person engaged by the Collateral Agent in connection with this Agreement, unless occasioned by the exculpated person's own fraud
or gross negligence or willful misconduct; and subject to the foregoing, each party hereto hereby waives any and all claims and
actions whatsoever against the Collateral Agent and its officers, employees, attorneys and agents, arising out of or related directly
or indirectly to any or all of the foregoing acts, omissions and circumstances.

 

9.           Delegation
of Duties. The Collateral Agent may execute any of its duties under this Agreement by or through agents, employees or attorneys
in fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties. The Collateral Agent shall
not be responsible for the negligence or misconduct of any agent or attorney in fact that it selects with reasonable care.

 

10.         Liability
of Collateral Agent. None of the Collateral Agent Related Persons (as defined below) shall (i) be liable for any action taken
or omitted to be taken by any of them under or in connection with this Agreement or any other Borrower Document or the transactions
contemplated hereby (except for its own fraud or gross negligence or willful misconduct), or (ii) be responsible in any manner
to any of the Lenders for any recital, statement, representation or warranty made by any other party, or any officer thereof, contained
in this Agreement or in any Borrower Document, or in any certificate, report, statement or other document referred to or provided
for in, or received by the Collateral Agent under or in connection with, this Agreement or any Borrower Document, or the validity,
effectiveness, genuineness, enforceability or sufficiency of this Agreement or any Borrower Document, or for any failure of any
other party to this Agreement or any Borrower Document to perform its obligations hereunder or thereunder. No Collateral Agent
Related Person shall be under any obligation to any Lender to ascertain or to inquire as to the observance or performance of any
of the agreements contained in, or conditions of, this Agreement or any Borrower Document, or to inspect the properties, books
or records of the Borrower or any of the Borrower’s subsidiaries or affiliates. “Collateral Agent Related Persons”
means the Collateral Agent, its shareholders, members, officers, directors, employees, agents and any successor agent arising hereunder,
together with their respective affiliates, and the officers, directors, employees, agents and attorneys-in-fact of such persons
and affiliates.

 

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11.         Reliance
by Collateral Agent. The Collateral Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing,
resolution, notice, consent, certificate, affidavit, letter, telegram, facsimile, telex or telephone message, statement or other
document or conversation believed by it to be genuine and correct and to have been signed, sent or made by the proper person or
persons, and upon advice and statements of legal counsel (including counsel to the Borrower), independent accountants and other
experts selected by the Collateral Agent. The Collateral Agent shall be fully justified in failing or refusing to take any action
under this Agreement or any Borrower Document unless it shall first receive such advice or concurrence of the Majority in Interest
as it deems appropriate and, if it so requests, it shall first be indemnified jointly and severally to its satisfaction by the
Majority in Interest against any and all liability and expense which may be incurred by it by reason of taking or continuing to
take any such action. The Collateral Agent shall in all cases be fully protected in acting, or in refraining from acting, under
this Agreement or any Borrower Document in accordance with a request or consent of the Majority in Interest and such request and
any action taken or failure to act pursuant thereto shall be binding upon all of the Lenders.

 

12.         Notice of
Default. The Collateral Agent shall not be deemed to have knowledge or notice of the occurrence of any default or Event of
Default unless the Collateral Agent shall have received written notice from Majority in Interest, describing such default or Event
of Default and stating that such notice is a “notice of default”. The Collateral Agent shall take such reasonable action
with respect to such Default or Event of Default as may be requested by the Majority in Interest in accordance with this Agreement;
provided, however, that unless and until the Collateral Agent has received any such request, the Collateral Agent may (but shall
not be obligated to) take such action, or refrain from taking such action, with respect to such default or Event of Default as
it shall deem advisable or in the best interest of the Lenders.

 

13.         Indemnification.
The Lenders shall, jointly and severally, indemnify upon demand the Collateral Agent Related Persons, from and against any and
all Indemnified Liabilities (as defined below); provided, however, that no Lender shall be liable for the payment to the Collateral
Agent of any portion of such Indemnified Liabilities resulting solely from such Person’s fraud, gross negligence or willful
misconduct. Without limitation of the foregoing, each Lender shall reimburse the Collateral Agent upon demand for any costs or
expenses (including reasonable fees and disbursements of legal counsel) incurred by the Collateral Agent in connection with the
preparation, execution, delivery, administration, modification, amendment or enforcement (whether through negotiations, legal proceedings
or otherwise) of, or legal advice in respect of rights or responsibilities under, the Borrower Documents, or any document contemplated
by or referred to herein or therein, to the extent that the Collateral Agent is not reimbursed for such expenses by or on behalf
of the Borrower. The undertaking in this paragraph shall survive the payment of all obligations hereunder and the resignation or
replacement of the Collateral Agent. “Indemnified Liabilities” means all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, charges, expenses and disbursements (including reasonable fees and disbursements of
legal counsel) of any kind or nature whatsoever which may at any time (including at any time following repayment of the debt evidenced
by the Borrower Documents and the termination, resignation or replacement of the Collateral Agent) be imposed on, incurred by or
asserted against any Collateral Agent Related Persons, in any way relating to or arising out of this Agreement, any Borrower Document
or any document contemplated by or referred to herein or therein, or the transactions contemplated hereby and thereby, or any action
taken or omitted by any the Collateral Agent under or in connection with any of the foregoing, including with respect to any investigation,
litigation or proceeding (including any bankruptcy or insolvency proceeding or appellate proceeding) related to or arising out
of this Agreement or and Borrower Document or the use of the proceeds thereof, whether or not any Collateral Agent is a party thereto.
The agreements in this Section will survive the payment of all obligations under the Borrower Documents.

 

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14.         Other
Activities. Collateral Agent
may generally engage in any kind of business with the Lender or Borrower any subsidiary or affiliate thereof as if it had not entered
into this Agreement. Collateral Agent and its affiliates and their officers, directors, employees, and agents (including legal
counsel) may now or hereafter be engaged in one or more transactions with either the Lender or the Borrower or may act as trustee,
agent or representative of either the Lender or the Borrower, or otherwise be engaged in other transactions with such parties.
Without limiting the forgoing, Collateral Agent and its affiliates and their officers, directors, employees, and agents (including
legal counsel) shall not be responsible to account to the Lender or the Borrower for such other activities. 

 

15.         Miscellaneous.

 

(a)          Rights
and Remedies Not Waived. No act, omission or delay by the Collateral Agent shall constitute a waiver of the Collateral Agent's,
the Majority in Interest or Lender’s rights and remedies hereunder or otherwise. No single or partial waiver by the Collateral
Agent of any default hereunder or right or remedy that it may have shall operate as a waiver of any other default, right or remedy
or of the same default, right or remedy on a future occasion.

 

(b)          No
Attorney/Client Relationship. The parties hereto expressly acknowledge and agree that no attorney/client relationship has been
established by virtue of executing this Agreement.

 

(c)          Governing
Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York without regard
to conflicts of laws that would result in the application of the substantive laws of another jurisdiction.

 

(d)          Waiver
of Jury Trial and Setoff; Consent to Jurisdiction; Etc.

 

(i)          In
any litigation in any court with respect to, in connection with, or arising out of this Agreement or any instrument or document
delivered pursuant to this Agreement, or the validity, protection, interpretation, collection or enforcement hereof or thereof,
or any other claim or dispute howsoever arising, between the Collateral Agent and the Lenders or any Lender, then each Lender,
to the fullest extent it may legally do so, (A) waives the right to interpose any setoff, recoupment, counterclaim or cross-claim
in connection with any such litigation, irrespective of the nature of such setoff, recoupment, counterclaim or cross-claim, unless
such setoff, recoupment, counterclaim or cross-claim could not, by reason of any applicable federal or state procedural laws, be
interposed, pleaded or alleged in any other action; and (B) WAIVES TRIAL BY JURY IN CONNECTION WITH ANY SUCH LITIGATION AND
ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH LITIGATION ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY
DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES. EACH LENDER AGREES THAT THIS SECTION 11(d) IS A SPECIFIC AND MATERIAL ASPECT
OF THIS AGREEMENT AND ACKNOWLEDGE THAT THE COLLATERAL AGENT WOULD NOT ENTER THIS AGREEMENT IF THIS SECTION 11(d) WERE NOT PART
OF THIS AGREEMENT.

 

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(ii)         Each
Lender irrevocably consents to the exclusive jurisdiction of any State or Federal Court located within the County of New York,
State of New York, in connection with any action or proceeding arising out of or relating to this Agreement or any document or
instrument delivered pursuant to this Agreement or otherwise. In any such litigation, each Lender waives, to the fullest extent
it may effectively do so, personal service of any summons, complaint or other process and agree that the service thereof may be
made by certified or registered mail directed to such Lender at its address for notice. Each Lender hereby waives, to the fullest
extent it may effectively do so, the defenses of forum non conveniens and improper venue.

 

(e)          Admissibility
of this Agreement. Each of the Lenders agrees that any copy of this Agreement signed by it and transmitted by facsimile for
delivery to the Collateral Agent shall be admissible in evidence as the original itself in any judicial or administrative proceeding,
whether or not the original is in existence.

 

(f)          Address
for Notices. Any notice or other communication under the provisions of this Agreement shall be given in writing and delivered
in person, by reputable overnight courier or delivery service, by facsimile machine (receipt confirmed) with a copy sent by first
class mail on the date of transmissions, or by registered or certified mail, return receipt requested, directed to such party’s
addresses set forth below (or to any new address of which any party hereto shall have informed the others by the giving of notice
in the manner provided herein):

 

In the case
of the Collateral Agent, to:

 

Gregory Bloom

c/o Gregory
E. Bloom, P.A.

11720 SW 122
PL.

Miami, FL 33186

Tel: (305)
283-8960

Fax: (305)
373-7668 (must use cover sheet)

 

In the case of the Lenders,
to:

 

To the address
and facsimile number set forth on

the signature
pages hereto

 

In the case of Borrower,
to:

 

To the address
and facsimile number set forth on

the signature
pages hereto

 

(g)          Amendments
and Modification; Additional Lender. No provision hereof shall be modified, altered, waived or limited except by written instrument
expressly referring to this Agreement and to such provision, and executed by the Collateral Agent and the Majority in Interest.
Any transferee of any debt evidenced by any Borrower Document who acquires such debt after the date hereof will become a party
hereto by signing the signature page and sending an executed copy of this Agreement to the Collateral Agent and receiving a signed
acknowledgement from the Collateral Agent.

 

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(h)          Fee.
In addition to any other fees and expenses required to be paid to the Collateral Agent in this Agreement, the Collateral Agent
will be paid a non-refundable engagement fee of $2,500 upon the execution hereof. Collateral Agent shall be paid on an hourly basis
for any time spent performing any function hereunder. Hourly fees are subject to change. All payments due to the Collateral Agent
under this Agreement including reimbursements must be paid when billed.  The Collateral Agent may refuse to act on behalf
of or make a distribution to any Lender who is not current in payments to the Collateral Agent. All Lenders shall be jointly and
severally liable for the full amount of such payments. The Collateral Agent is hereby authorized to deduct any sums due the Collateral
Agent from Collateral in the Collateral Agent's possession.

 

(i)          
Counterparts/Execution. This Agreement may be executed in any number of counterparts and by the different signatories hereto
on separate counterparts, each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute
but one and the same instrument. This Agreement may be executed by facsimile signature and delivered by facsimile transmission.

 

(j)          Successors
and Assigns. Whenever in this Agreement reference is made to any party, such reference shall be deemed to include the successors,
assigns, heirs and legal representatives of such party. No party hereto may transfer any rights under this Agreement, unless the
transferee agrees to be bound by, and comply with all of the terms and provisions of this Agreement, as if an original signatory
hereto on the date hereof.

 

(k)          Captions:
Certain Definitions. The captions of the various sections and paragraphs of this Agreement have been inserted only for the
purposes of convenience; such captions are not a part of this Agreement and shall not be deemed in any manner to modify, explain,
enlarge or restrict any of the provisions of this Agreement. As used in this Agreement the term “person” shall
mean and include an individual, a partnership, a joint venture, a corporation, a limited liability company, a trust, an unincorporated
organization and a government or any department or agency thereof.

 

(l)          Severability.
In the event that any term or provision of this Agreement shall be finally determined to be superseded, invalid, illegal or otherwise
unenforceable pursuant to applicable law by an authority having jurisdiction and venue, that determination shall not impair or
otherwise affect the validity, legality or enforceability (i) by or before that authority of the remaining terms and provisions
of this Agreement, which shall be enforced as if the unenforceable term or provision were deleted, or (ii) by or before any other
authority of any of the terms and provisions of this Agreement.

 

(m)          Entire
Agreement. This Agreement contains the entire agreement of the parties and supersedes all other agreements and understandings,
oral or written, with respect to the matters contained herein.

 

[signature pages follow]

 

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IN WITNESS WHEREOF,
the parties hereto have caused this Collateral Agent Agreement to be signed, by their respective duly authorized officers or directly,
as of the date first written above.

 

	LENDERS:	 
	 	 
	NAVESINK RACK, LLC	 
	 	 
	By:	/s/ Alan D. Goddard 	 
	Name:	Alan D. Goddard	 
	Title:	Managing Member	 
	 	 
	Address:	 
	Facsimile:	 

 

	BLACK DIAMOND FINANCIAL GROUP, LLC	 
	 	 
	By:	/s/ Patrick Imeson	 
	Name:	Patrick Imeson	 
	Title:	CEO	 
	 	 
	Address:	 
	Facsimile:	 

 

[Signature page to Collateral Agent Agreement]

 

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	BORROWER:	 
	 	 
	RACKWISE, INC.	 
	 	 	 
	By: 	/s/ Guy A. Archbold	 
	Name: Guy A. Archbold	 
	Title: Chief Executive Officer	 
	 	 
	Address:	 
	Facsimile:	 

 

[signature page to Collateral Agent Agreement]

 

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	COLLATERAL AGENT:	 
	 	 
	/s/ Greg Bloom	 
	Name:  Greg Bloom	 

 

[signature page to Collateral Agent Agreement]

 

    	12Exhibit 10.5

 

PLACEMENT AGENCY AGREEMENT

 

April 10, 2013

 

Gottbetter Capital Markets, LLC

Mr. Julio A. Marquez, President

488 Madison Avenue

12th Floor

New York, New York 10022

 

Re:     NAVESINK RACK, LLC

 

Dear Mr. Marquez:

 

This Placement Agency
Agreement (“Agreement”) sets forth the terms upon which Gottbetter Capital Markets, LLC, a registered broker-dealer
and member of the Financial Industry Regulatory Authority (“FINRA”), (hereinafter referred to as the “Placement
Agent” or “Markets”), shall be engaged by Navesink RACK, LLC (hereinafter referred to as “Navesink”
or the “Company”), a Delaware limited liability company, to act as the exclusive placement agent of its Class B LLC
Membership Interests (the “Membership Interests”) in Navesink (“Navesink Offering”). Navesink was formed
for the express and limited purpose to purchase the RACK Units (as defined below) in the Rackwise Offering (as defined below).
The Navesink Offering will be made on a best efforts basis until the Navesink Offering expires May 31, 2013, which date may be
extended at the discretion of Navesink and the Placement Agent for an additional 90 days (the last
date of the Navesink Offering shall be referred to as the “Termination Date”).

 

The Placement Agent
shall accept subscriptions only from (i) persons or entities who qualify as “accredited investors,” as such term is
defined in Rule 501 of Regulation D (“Regulation D”) as promulgated by the U.S. Securities and Exchange Commission
(the “SEC”) under Section 4(2) of the Securities Act of 1933, as amended (the “Act”) and (ii) persons or
entities who are offered and purchase the Membership Interests in an Offshore Transaction (as such term is defined in Regulation
S (“Regulation S”) as promulgated by the SEC under the Act) and who are not U.S. Persons (as such term is defined in
Regulation S) and are not acting for the account or benefit of a person in the United States or a U.S. Person.

 

With respect to the
Navesink Offering, the Company shall provide the Placement Agent, on terms set forth herein, the right to offer and sell all of
the available Membership Interests being offered during the Navesink Offering Period. It is understood that no sale shall be regarded
as effective unless and until accepted by the Company. The Company may, in its sole discretion, accept or reject, in whole or in
part, any prospective investment in the membership Interests or allot to any prospective subscriber less than the number Membership
Interests that such subscriber desires to purchase. Purchases of the Membership Interests may be made by the Placement Agent and
its officers, directors, employees and affiliates and by the officers, directors, employees and affiliates of the Company for the
Navesink Offering.

 

    	 

    	 

    

 

The Navesink Offering
will be made by the Company pursuant to the LLC Membership Interest Purchase Agreement, as amended or supplemented from time to
time, including all attachments, schedules and exhibits thereto (the “LLC Membership Interest Agreement”), which at
all times will be in form and substance reasonably acceptable to the Company and the Placement Agent and their respective counsel
and contain such legends and other information as the Company and the Placement Agent and their respective counsel, may, from time
to time, deem necessary and desirable to be set forth therein.

 

Rackwise, Inc.,
a publicly traded Nevada corporation (hereinafter referred to as “Rackwise” or the “RACK”), is engaging
in the private placement (the “Rackwise Offering”) of units of its securities (the “RACK Units”) at a
purchase price of Ten Thousand United States Dollars ($10,000 USD) per RACK Unit.1 Each RACK Unit consists of (i) a
$10,000 principal amount of Secured Promissory Note of Rackwise (each a “RACK Note” and collectively the “RACK
Notes”) that will have a term of one (1) year (“Maturity”) and will bear interest at a rate of twelve percent
(12%) per annum, compounding annually, payable at Maturity or earlier conversion and (ii) eighty thousand (80,000) five (5) year
warrants (each, an “RACK Investor Warrant” and collectively, the “RACK Investor Warrants”), each to purchase
one (1) share of Rackwise’s common stock (the “RACK Common Stock”) at an exercise price of $0.01 per share.
The Rackwise Offering will consist of a maximum of five hundred (500) Membership Interests or Five Million United States Dollars
($5,000,000 USD) (the “Maximum Offering Amount”). No minimum amount of RACK Units must be sold to close and complete
the Navesink Offering. The Rackwise Offering will continue through May 31, 2013 (the “RACK
Initial Offering Period”), which date may be mutually extended at the discretion of Rackwise, the Placement Agent
and Navesink for up to an additional 90 days (the last date of the Rackwise Offering shall be referred to as the “RACK Termination
Date”).

 

The
RACK Notes mature one year from the date of issuance and are convertible at any time, in whole or in part, at the holder’s
option, into shares of RACK common stock at a price per share (the “Conversion Price”) equal to the lesser of (i) $0.05
and (ii) 80% of the five (5) day VWAP immediately preceding the conversion date. “VWAP” means, for any date, the price
determined by the first of the following clauses that applies: (a) if RACK common stock is then listed or quoted on a Trading Market
(as defined below), the daily volume weighted average price of RACK common stock for such date (or the nearest preceding date)
on the Trading Market on which RACK 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 4:00 p.m. (New York City time)), (b) if the OTC Bulletin Board is not a Trading Market,
the volume weighted average price of RACK common stock for such date (or the nearest preceding date) on the OTC Bulletin Board,
(c) if RACK common stock is not then listed or quoted for trading on the OTC Bulletin Board and if prices for RACK common stock
are then reported in the “Pink Sheets” published by Pink OTC Markets, Inc. (or a similar organization or agency succeeding
to its functions of reporting prices), the most recent bid price per share of RACK common stock so reported, or (d) in all other
cases, the fair market value of a share of RACK common stock as determined by an independent appraiser selected in good faith by
the holders of a majority in interest of the principal amount of RACK Notes then outstanding and reasonably acceptable to RACK,
the fees and expenses of which shall be paid by RACK. “Trading Market” means any of the following markets or exchanges
on which RACK common stock is listed or quoted for trading on the date in question: the NYSE AMEX, the Nasdaq Capital Market, the
Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange or the OTC Bulletin Board (or any successors
to any of the foregoing).

 

 

1
Provided that the full amount of the purchase price paid by each investor in the Navesink Offering (the “Navesink
RACK Purchase Price”) shall be considered as the purchase price for the purposes of Navesink purchasing RACK Units from
Rackwise, notwithstanding that the aggregate Navesink RACK Purchase Price will be lower than the aggregate purchase price for
the number of RACK Units to be sold by Rackwise to Navesink RACK.

 

    	2

    	 

    

 

1.          Appointment
of Placement Agent. On the basis of the written and documented representations and warranties of the Company provided herein
and the representations and warranties of Rackwise, subject to the terms and conditions set forth herein, the Placement Agent is
appointed as an exclusive Placement Agent of the Company during the Navesink Offering Period to assist the Company in finding qualified
subscribers for the Navesink Offering. The Placement Agent may sell Membership Interests through other broker-dealers who are FINRA
members and may reallow all or a portion of the Brokers’ Fees (as defined in Section 3(a) below) it receives to such other
broker-dealers or pay a finders or consultant fee as allowed by applicable law. On the basis of such representations and warranties
and subject to such terms and conditions, the Placement Agent hereby accepts such appointment and agrees to perform its services
hereunder diligently and in good faith and in a professional and businesslike manner and in compliance with applicable law and
to use its best efforts to assist the Company in (A) finding subscribers of the Membership Interests who either (i) qualify as
“accredited investors,” as such term is defined in Rule 501 of Regulation D, or (ii) are offered and purchase the Membership
Interests outside the United States in an Offshore Transaction (as such term is defined in Regulation S) and who are not U.S. Persons
(as such term is defined in Regulation S) and are not acting for the account or benefit of a person in the United States or a U.S.
Person and (B) completing the Navesink Offering. The Placement Agent has no obligation to purchase any of the Membership Interests.
Unless sooner terminated in accordance with this Agreement, the engagement of the Placement Agent hereunder shall continue until
the later of the Termination Date or the Final Closing (as defined below).

 

2.          Representations,
Warranties and Covenants.

 

A.          Representations,
Warranties and Covenants of the Company. Except as previously disclosed herein, the representations and warranties of the Company
contained in this Section 2A are true and correct as of the date of execution of this Agreement by the Company and the Company
covenants as follows, as applicable.

 

    	3

    	 

    

 

(a) The LLC Membership
Interest Agreement has been and/or will be prepared by the Company, in conformity with all applicable laws, and in compliance with
Regulation D, Regulation S and/or Section 4(2) of the Act and the requirements of all other rules and regulations (the “Regulations”)
of the SEC relating to offerings of the type contemplated by the Navesink Offering, and the applicable securities laws and the
rules and regulations of those jurisdictions wherein the Placement Agent notifies the Company that the Membership Interests are
to be offered and sold excluding any foreign jurisdictions. The Membership Interests will be offered and sold pursuant to the registration
exemption provided by Regulation D, Regulation S and/or Section 4(2) of the Act as a transaction not involving a public offering
and the requirements of any other applicable state securities laws and the respective rules and regulations thereunder in those
United States jurisdictions in which the Placement Agent notifies the Company that the Membership Interests are being offered for
sale. None of the Company, its affiliates, or any person acting on its or their behalf (other than the Placement Agent, its affiliates
or any person acting on its behalf, in respect of which no representation is made) has taken nor will it take any action that conflicts
with the conditions and requirements of, or that would make unavailable with respect to the Navesink Offering, the exemption(s)
from registration available pursuant to Rule 506 of Regulation D, Rule 903 of Regulation S and/or Section 4(2) of the Act, or knows
of any reason why any such exemption would be otherwise unavailable to it (including, without limitation, any Directed Selling
Efforts (as such term is defined in Regulation S)). None of the Company, its predecessors or affiliates has been subject to any
order, judgment or decree of any court of competent jurisdiction temporarily, preliminarily or permanently enjoining such person
for failing to comply with Section 503 of Regulation D. The Company has not, for a period of six months prior to the commencement
of the offering of Membership Interests, sold, offered for sale or solicited any offer to buy any of its securities in a manner
that would cause the exemption from registration set forth in Rule 506 of Regulation D to become unavailable with respect to the
offer and sale of the Membership Interests pursuant to this Agreement in the United States or to, by or for the benefit or account
of, U.S. Persons, or would cause the exclusion from registration provided by Rule 903 of Regulation S to become unavailable for
offers and sales of the Membership Interests pursuant to this Agreement outside the United States to non-U.S. Persons.

 

(b) As to the Company,
the LLC Membership Interest Agreement will not and does not include any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which
they were made, not misleading: provided, however, the foregoing does not apply to any statements or omissions made solely in reliance
on and in conformity with written information furnished to the Company by the Placement Agent specifically for use in the preparation
thereof. To the knowledge of the Company, none of the statements, documents, certificates or other items made, prepared or supplied
by the Company with respect to the transactions contemplated hereby contains an untrue statement of a material fact or omits to
state a material fact necessary to make the statements contained therein not misleading in light of the circumstances in which
they were made. There is no fact which the Company has not disclosed in the LLC Membership Interest Agreement and of which the
Company is aware that materially adversely affects or that could reasonably be expected to have a material adverse effect on the
(i) assets, liabilities, results of operations, condition (financial or otherwise), business or business prospects of the Company
or (ii) ability of the Company to perform its obligations under this Agreement and the other LLC Membership Interest Agreement
(the “Company Material Adverse Effect”). Notwithstanding anything to the contrary herein, the Company makes no representation
or warranty with respect to any estimates, projections and other forecasts and plans (including the reasonableness of the assumptions
underlying such estimates, projections and other forecasts and plans) that may have been delivered to the Placement Agent or its
representatives, except that such estimates, projections and other forecasts and plans have been prepared in good faith on the
basis of assumptions stated therein, which assumptions were believed to be reasonable at the time of such preparation.

 

    	4

    	 

    

 

(c) The Company is
a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware and is
qualified and in good standing as a foreign corporation in each jurisdiction in which the nature of the business conducted by the
Company or the property owned or leased by the Company requires such qualification, except to the extent that the failure to be
so qualified or be in good standing would not have a Company Material Adverse Effect. The Company has all requisite corporate power
and authority to conduct its business as presently conducted and as proposed to be conducted (as described in the LLC Membership
Interest Agreement), has all the necessary and requisite documents and approvals from all state authorities, has all requisite
corporate power and authority to enter into and perform its obligations under this Agreement and the LLC Membership Interest Agreement
and the other agreements contemplated hereby (this Agreement, LLC Membership Interest Agreement, and the other agreements contemplated
hereby that the Company is required to execute and deliver are collectively referred to herein as the “Company Transaction
Documents”) and subject to necessary approvals, to issue, sell and deliver the Membership Interests, and to make the
representations in this Agreement accurate and not misleading. Prior to the First Closing, as defined herein, each of the Company
Transaction Documents will have been duly authorized. This Agreement has been duly authorized, executed and delivered and constitutes,
and each of the other Company Transaction Documents, upon due execution and delivery, will constitute, valid and binding obligations
of the Company, enforceable against the Company in accordance with their respective terms (i) except as enforceability may be limited
by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect related to laws
affecting creditors’ rights generally, including the effect of statutory and other laws regarding fraudulent conveyances
and preferential transfers, and except that no representation is made herein regarding the enforceability of the Company’s
obligations to provide indemnification and contribution remedies under the securities laws and (ii) subject to the limitations
imposed by general equitable principles (regardless of whether such enforceability is considered in a proceeding at law or in equity).

 

(d) Except as described
in the LLC Membership Interest Agreement, none of the execution and delivery of or performance by the Company under this Agreement
or any of the other Company Transaction Documents or the consummation of the transactions herein or therein contemplated conflicts
with or violates, or will result in the creation or imposition of, any lien, charge or other encumbrance upon any of the assets
of the Company under any agreement or other instrument to which the Company is a party or by which the Company or its assets may
be bound, or any term of the certificate of formation or limited liability company operating agreement, or any license, permit,
judgment, decree, order, statute, rule or regulation applicable to the Company or any of its assets, except in the case of a conflict,
violation, lien, charge or other encumbrance (except with respect to the Company’s certificate of formation or limited liability
company operating agreement) which would not, or could not reasonably be expected to, have a Company Material Adverse Effect.

 

    	5

    	 

    

 

(e) The Company was
formed for the exclusive purpose of investing in the Rackwise Offering and does not have any financial statements. The Company
will keep and maintain books and records and accounts which will be in reasonable detail and which will fairly and accurately reflect
the activities of the Company in all material respects, subject only to year-end adjustments. Except as disclosed in the LLC Membership
Interest Agreement, subsequent to the date of the LLC Membership Interest Agreement and prior to the date of the First Closing
it shall not enter into any material transactions or commitments without promptly thereafter notifying the Placement Agent in writing
of any such material transaction or commitment.

 

(f) Immediately prior
to the First Closing, the Membership Interests will have been duly authorized and, when issued and delivered against payment therefor
as provided in the Company Transaction Documents, will be validly issued, fully paid and nonassessable. No holder of any of the
shares of Membership Interests will be subject to personal liability solely by reason of being such a holder.

 

(g) The Company has
no subsidiaries and does not own any equity interest and has not made any loans or advances to or guarantees of indebtedness to
any person, corporation, partnership or other entity. The conduct of business by the Company as presently and proposed to be conducted
is not subject to continuing oversight, supervision, regulation or examination by any governmental official or body of the United
States, or any other jurisdiction wherein the Company conducts or proposes to conduct such business, except as such regulation
is applicable to commercial enterprises generally. The Company has obtained all material licenses, permits and other governmental
authorizations necessary to conduct its business as presently conducted. The Company has not received any notice of any violation
of, or noncompliance with, any federal, state, local or foreign laws, ordinances, regulations and orders (including, without limitation,
those relating to environmental protection, occupational safety and health, securities laws, equal employment opportunity, consumer
protection, credit reporting, “truth-in-lending”, and warranties and trade practices) applicable to its business, the
violation of, or noncompliance with, would have a Company Material Adverse Effect, and the Company knows of no facts or set of
circumstances which could give rise to such a notice.

 

(h) Except as described
in the LLC Membership Interest Agreement, no default by the Company or, to the knowledge of the Company, any other party, exists
in the due performance under any material agreement to which the Company is a party or to which any of its assets is subject (collectively,
the “Company Agreements”). The Company Agreements, if any, disclosed in the LLC Membership Interest Agreement are the
only material agreements to which the Company is bound or by which its assets are subject, are accurately described in the LLC
Membership Interest Agreement and are in full force and effect in accordance with their respective terms, subject to any applicable
bankruptcy, insolvency or other laws affecting the rights of creditors generally and to general equitable principles and the availability
of specific performance.

 

(i) Subsequent to the
respective dates as of which information is given in the LLC Membership Interest Agreement, the Company has operated its business
in the ordinary course and, except as may otherwise be set forth in the LLC Membership Interest Agreement, there has been no: (i)
Company Material Adverse Effect; (ii) material transaction otherwise than in the ordinary course of business consistent with
past practice; (iii) damage, loss or destruction, whether or not covered by insurance, with respect to any material asset or property
of the Company; or (iv) agreement to permit any of the foregoing.

 

    	6

    	 

    

 

(j) Except as set forth
in the LLC Membership Interest Agreement, there are no actions, suits, claims, hearings or proceedings pending before any court
or governmental authority or, to the knowledge of the Company, threatened, against the Company, or involving its assets or any
of its officers or directors (in their capacity as such) which, if determined adversely to the Company or such officer or director,
could reasonably be expected to have a Company Material Adverse Effect or adversely affect the transactions contemplated by this
Agreement or the enforceability hereof.

 

(k) The Company is
not: (i) in violation of its Certificate of Formation or limited liability company operating agreement; (ii) in default of any
contract, indenture, mortgage, deed of trust, note, loan agreement, security agreement, lease, alliance agreement, joint venture
agreement or other agreement, license, permit, consent, approval or instrument to which the Company is a party or by which it is
or may be bound or to which any of its assets may be subject, the default of which could reasonably be expected to have a Company
Material Adverse Effect; (iii) in violation of any statute, rule or regulation applicable to the Company, the violation of which
would have a Company Material Adverse Effect; or (iv) in violation of any judgment, decree or order of any court or governmental
body having jurisdiction over the Company and specifically naming the Company, which violation or violations individually, or in
the aggregate, could reasonably be expected to have a Company Material Adverse Effect.

 

(l) Except as disclosed
in the LLC Membership Interest Agreement, as of the date of this Agreement, no current or former stockholder, director, officer
or employee of the Company, nor, to the knowledge of the Company, any affiliate of any such person is presently, directly or indirectly
through his/her affiliation with any other person or entity, a party to any loan from the Company or any other transaction (other
than as an employee) with the Company providing for the furnishing of services by, or rental of any personal property from, or
otherwise requiring cash payments to any such person.

 

(m) The Company is
not obligated to pay, and has not obligated the Placement Agent to pay, a finder’s or origination fee in connection with
the Navesink Offering (other than to the Placement Agent and other participating broker dealers, if any), and hereby agrees to
indemnify the Placement Agent from any such claim made by any other person as more fully set forth in Section 8 hereof. The Company
has not offered for sale or solicited offers to purchase the Membership Interests except for negotiations with the designated Placement
Agent. Except as set forth in the LLC Membership Interest Agreement, no other person has any right to participate in any offer,
sale or distribution of the Company’s securities to which the Placement Agent’s rights, described herein, shall apply.

 

(n) Until the earlier
of (i) the Termination Date or (ii) the Final Closing (as hereinafter defined), the Company will not issue any press release, grant
any interview, or otherwise communicate with the media in any manner whatsoever with respect to the Navesink Offering without the
Placement Agent’s prior written consent, which consent will not unreasonably be withheld or delayed.

 

    	7

    	 

    

 

(o) No representation
or warranty contained in Section 2A of this Agreement contains any untrue statement of a material fact or omits to state a material
fact necessary to make the statements herein not misleading in the context of such representations and warranties. The Placement
Agent shall be entitled to rely on such representations and warranties.

 

(p) No consent, authorization
or filing of or with any court or governmental authority is required in connection with the issuance or the consummation of the
transactions contemplated herein or in the other Company Transaction Documents and the applicable state securities commissions
relating specifically to the Navesink Offering (all of which filings will be duly made by, or on behalf of, the Company), and those
which are required to be made after the First Closing (all of which will be duly made on a timely basis).

 

(q) The Company acknowledges
that Adam S. Gottbetter is the owner of Gottbetter Capital Group, Inc., Gottbetter & Partners,
LLP and Gottbetter Capital Markets, LLC.  Gottbetter Capital Group owns shares of Rackwise.  Gottbetter &
Partners, LLP is counsel to the Company and Rackwise and has represented the Company and Rackwise in the proposed transaction
for which it will receive legal fees in accordance with executed retainer agreements.  Gottbetter & Partners, LLP will
continue to serve as securities and corporate counsel to Rackwise for which it will receive legal fees in accordance with executed retainer
agreement. Gottbetter Capital Markets, LLC is a placement agent for the Navesink Offering in the proposed transaction for
which it may receive placement agent fees in accordance with this Agreement.

 

(r)
Neither the sale of the Membership Interests by the Company nor its use of the proceeds thereof will violate the Trading with the
Enemy Act, as amended, nor do any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle
B, Chapter V, as amended) or any enabling legislation or executive order relating thereto. Without limiting the foregoing, the
Company is not (a) a person whose property or interests in property are blocked pursuant to Section 1 of Executive Order 13224
of September 23, 2001 Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism
(66 Fed. Reg. 49079 (2001)) or (b) a person who engages in any dealings or transactions, or be otherwise associated, with any such
person. The Company and its subsidiaries, if any, are in compliance, in all material respects, with the USA Patriot Act of 2001
(signed into law October 26, 2001).

 

                2B.          Representations, Warranties
and Covenants of Placement Agent. The Placement Agent hereby represents and warrants to the Company that the following representations
and warranties are true and correct as of the date of this Agreement:

 

(a) The Placement Agent
is a limited liability company duly organized, validly existing and in good standing under the laws of the State of New York and
has all requisite corporate power and authority to enter into this Agreement and to carry out and perform its obligations under
the terms of this Agreement.

 

(b) This Agreement
has been duly authorized, executed and delivered by the Placement Agent, and upon due execution and delivery by the Company, this
Agreement will be a valid and binding agreement of the Placement Agent enforceable against it in accordance with its terms, except
as may be limited by principles of public policy and, as to enforceability, subject to applicable bankruptcy, insolvency, reorganization,
moratorium and similar laws relating to or affecting creditor’s rights from time to time in effect and subject to general
equity principles.

 

    	8

    	 

    

 

(c) The Placement Agent
is a member of FINRA and is registered as a broker-dealer under the Exchange Act (as defined below), and under the securities acts
of each state into which it is making offers or sales of the Membership Interests. None of the Placement Agent or its affiliates,
or any person acting on behalf of the foregoing (other than the Company, its or their affiliates or any person acting on its or
their behalf, in respect of which no representation is made) has taken nor will it take any action that conflicts with the conditions
and requirements of, or that would make unavailable with respect to the Navesink Offering, the exemption(s) from registration available
pursuant to Rule 506 of Regulation D, Rule 903 of Regulation S or Section 4(2) of the Act, or knows of any reason why any such
exemption would be otherwise unavailable to it. The Placement Agent will conduct the Navesink Offering in compliance with all applicable
securities laws.

 

(d) None of the Placement
Agent or its affiliates, or any person acting on behalf of the foregoing, has engaged or will engage in any Directed Selling Efforts
(as such term is defined in Regulation S).

 

(e) Any offer or solicitation
of an offer to buy the Membership Interests made by the Placement Agent or its affiliates, or any person acting on behalf of the
foregoing, in reliance on Rule 903 of Regulation S and in reliance upon similar exemptions from registration available under applicable
state securities laws, will be made outside of the United States exclusively to persons or entities that are, and will be at the
time of the delivery of the Membership Interests, not a U.S. Person (as such term is defined in Regulation S) and were, and are
at the time of the delivery of the Membership Interests, not acting for the account or benefit of a person in the United States
or a U.S. Person.

 

(f) Adam S. Gottbetter
is the owner of Gottbetter Capital Group, Inc., Gottbetter & Partners, LLP and Gottbetter Capital Markets, LLC. 
Gottbetter Capital Group owns shares of Rackwise.  Gottbetter & Partners, LLP is counsel to the Company
and Rackwise and has represented the Company and Rackwise in the proposed transaction for which it will receive legal fees in accordance
with executed retainer agreements.  Gottbetter Capital Markets, LLC is a placement agent for the private placement Navesink
Offering in the proposed transaction for which it may receive placement agent fees in accordance with an executed placement
agent agreement.

 

3.          Placement
Agent Compensation.

 

(a) In connection with
the Navesink Offering, the Company will pay a cash fee (the “Agent Cash Fee”) to the Placement Agent at each Closing
equal to Ten Percent (10%) of the funds raised in the Navesink Offering. In addition, the Company will deliver to the Placement
Agent Class B Membership Interests equal to Five Percent (5%) of the number of Class B Membership Interests sold in the Navesink
Offering (“Agent Membership Interests”). The Placement Agent will also be paid a non-accountable expense allowance
at each closing not to exceed Three Percent (3%) of the gross proceeds raised in the Navesink Offering. The “Agent Cash Fee”
and “Agent Membership Interests” are sometimes referred to collectively as (“Brokers’ Fees”).

 

    	9

    	 

    

 

(b)The Company
shall also pay to the Placement Agent a broker’s fee if any person or entity contacted by the Placement Agent in connection
with the Navesink Offering, which person had not been introduced to the Company prior to or during the Navesink Offering by someone
other than the Placement Agent, invests in the Company at any time prior to the date that is twelve (12) months after the Termination
Date or the Final Closing, whichever is applicable, regardless of whether such Post-Closing Investor purchased Membership Interests
in the Navesink Offering. Any such broker’s fee payable pursuant to this Section 3(b) will be based on the fee structure
in place for broker-dealers participating in the applicable offering. In the event there are no participating broker-dealers, the
broker’s fee payable pursuant to this Section 3(b) will be based on a fee arrangement negotiated between Placement Agent
and the Company.

 

(c) To the extent there
is more than one Closing, payment of the proportional amount of the Brokers’ Fees will be made out of the proceeds of subscriptions
for the Membership Interests sold at each Closing.

 

4.          Subscription
and Closing Procedures.

 

(a) The Company shall
cause to be delivered to the Placement Agent copies of the LLC Membership Interest Agreement and has consented, and hereby consents,
to the use of such copies for the purposes permitted by the Act and applicable securities laws and in accordance with the terms
and conditions of this Agreement, and hereby authorizes the Placement Agent and its agents and employees to use the LLC Membership
Interest Agreement in connection with the sale of the Membership Interests until the earlier of (i) the Termination Date or (ii)
the Final Closing, and no person or entity is or will be authorized to give any information or make any representations other than
those contained in the LLC Membership Interest Agreement or to use any offering materials other than those contained in the LLC
Membership Interest Agreement in connection with the sale of the Membership Interests, unless the Company first provides the Placement
Agent with notification of such information, representations or offering materials.

 

(b) The Company shall
make available to the Placement Agent and its representatives such information, including, but not limited to, financial information,
and other information regarding the Company (the “Information”), as may be reasonably requested in making a reasonable
investigation of the Company and its affairs. The Company shall provide access to the officers, directors, employees, independent
accountants, legal counsel and other advisors and consultants of the Company as shall be reasonably requested by the Placement
Agent. The Company recognizes and agrees that the Placement Agent (i) will use and rely primarily on the Information and generally
available information from recognized public sources in performing the services contemplated by this Agreement without independently
verifying the Information or such other information, (ii) does not assume responsibility for the accuracy of the Information or
such other information, and (iii) will not make an appraisal of any assets or liabilities owned or controlled by the Company or
its market competitors.

 

    	10

    	 

    

 

(c) Each prospective
purchaser will be required to complete and execute the LLC Membership Interest Agreement, Anti-Money Laundering Form and other
documents which will be forwarded or delivered to the Placement Agent at the Placement Agent’s offices at the address set
forth in Section 12 hereof.

 

(d) Simultaneously
with the delivery to the Placement Agent of the LLC Membership Interest Agreement, the subscriber’s check or other good funds
will be forwarded directly by the subscriber to the escrow agent and deposited into a non interest bearing escrow account (the
“Escrow Account”) established for such purpose (the “Escrow Agent”). All such funds for subscriptions will
be held in the Escrow Account pursuant to the terms of an escrow agreement among the Company, Rackwise, the Placement Agent and
the Escrow Agent. The Company will pay all fees related to the establishment and maintenance of the Escrow Account. Subject
to the receipt of subscriptions, the Company will either accept or reject, for any or no reason, the LLC Membership Interest Agreement
in a timely fashion and at each Closing will countersign the LLC Membership Interest Agreement and provide duplicate copies of
such documents to the Placement Agent for distribution to the subscribers. The acceptance of any LLC Membership Interest Agreement
will be subject to the reasonable approval of the Company. The Company will give notice to the Placement Agent of its acceptance
of each subscription. The Company, or the Placement Agent on the Company’s behalf, will promptly return to subscribers incomplete,
improperly completed, improperly executed and rejected subscriptions and give written notice thereof to the Placement Agent upon
such return.

 

(e) If subscriptions
for a Closing have been accepted prior to the Termination Date, the funds therefor have been collected by the Escrow Agent and
all of the conditions set forth elsewhere in this Agreement are fulfilled, a closing shall be held promptly with respect to the
Membership Interests sold (the “First Closing”). Thereafter, the remaining Membership Interests will continue to be
offered and sold until the Termination Date. Additional closings (“Closings”) may from time to time be conducted at
times mutually agreed to between the Placement Agent and the Company with respect to additional Membership Interests sold, with
the final closing (“Final Closing”) to occur within 10 days after the earlier of the Termination Date. Delivery of
payment for the accepted subscriptions for Membership Interests from the funds held in the Escrow Account will be made at each
Closing at the Placement Agent’s offices against delivery of the Membership Interests by the Company at the address set forth
in Section 12 hereof (or at such other place as may be mutually agreed upon between the Company and the Placement Agent),
net of amounts due to the Placement Agent and the Company’s Blue Sky counsel as of such Closing. Executed certificates for
the Membership Interests will be in such authorized denominations and registered in such names as the Placement Agent may request
on or before the date of each Closing (“Closing Date”). The certificates will be forwarded to the subscriber directly
by the Company’s designated agent at each Closing. The Company will issue the certificates for the Membership Interests within
twenty (20) days of each Closing.

 

(f) If the LLC Membership
Interest Agreement has not been received and accepted by the Company on or before the Termination Date for any reason, the Navesink
Offering will be terminated, no Membership Interests will be sold, and the Escrow Agent will, at the request of the Placement Agent,
cause all monies received from subscribers for the Membership Interests to be promptly returned to such subscribers without interest,
penalty, expense or deduction.

 

    	11

    	 

    

 

5.          Further
Covenants.

 

The Company hereby
covenants and agrees that:

 

(a) Except upon prior
written notice to the Placement Agent, the Company shall not, at any time prior to the Final Closing, knowingly take any action
which would cause any of the representations and warranties made by it in this Agreement not to be complete and correct in all
material respects on and as of each Closing Date with the same force and effect as if such representations and warranties had been
made on and as of each such date (except to the extent any representation or warranty relates to an earlier date).

 

(b) If, at any time
prior to the Final Closing, any event shall occur that causes a Company Material Adverse Effect which as a result it becomes necessary
to amend or supplement the LLC Membership Interest Agreement so that the representations and warranties herein remain true and
correct in all material respects, or in case it shall be necessary to amend or supplement the LLC Membership Interest Agreement
to comply with Regulation D or any other applicable securities laws or regulations, the Company will promptly notify the Placement
Agent and shall, at its sole cost, prepare and furnish to the Placement Agent copies of appropriate amendments and/or supplements
in such quantities as the Placement Agent may reasonably request. The Company will not at any time before the Final Closing prepare
or use any amendment or supplement to the LLC Membership Interest Agreement of which the Placement Agent will not previously have
been advised and furnished with a copy, or which is not in compliance in all material respects with the Act and other applicable
securities laws. As soon as the Company is advised thereof, the Company will advise the Placement Agent and its counsel, and confirm
the advice in writing, of any order preventing or suspending the use of the LLC Membership Interest Agreement, or the suspension
of any exemption for such qualification or registration thereof for offering in any jurisdiction, or of the institution or threatened
institution of any proceedings for any of such purposes, and the Company will use their best efforts to prevent the issuance of
any such order and, if issued, to obtain as soon as reasonably possible the lifting thereof.

 

(c) The Company shall
comply with the Act, the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations
thereunder, all applicable state securities laws and the rules and regulations thereunder in the states in which Placement Agent’s
Blue Sky counsel has advised the Placement Agent and/or the Company that the Membership Interests are qualified or registered for
sale or exempt from such qualification or registration, so as to permit the continuance of the sales of the Membership Interests,
and will file or cause to be filed with the SEC, and shall promptly thereafter forward or cause to be forwarded to the Placement
Agent, any and all reports on Form D as are required. The Company will pay the attorney’s fee and out of pocket expenses
related to the filings for registrations of sale or exemption from such qualifications with any state securities commissions and
any other regulatory agencies. Such fees will be paid at the time of invoicing, or at the time of Closing, if known, and if not
yet invoiced, funds will remain in escrow to cover the estimated invoice.

 

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(d) The Company shall
use best efforts to qualify the Membership Interests for sale under the securities laws of such jurisdictions in the United States
as may be mutually agreed to by the Company and the Placement Agent, and the Company will make or cause to be made such applications
and furnish information as may be required for such purposes, provided that the Company will not be required to qualify as a foreign
corporation in any jurisdiction or execute a general consent to service of process. The Company will, from time to time, prepare
and file such statements and reports as are or may be required to continue such qualifications in effect for so long a period as
the Placement Agent may reasonably request with respect to the Navesink Offering.

 

(e) The Company shall
place a legend on the certificates representing the Membership Interests that the securities evidenced thereby have not been registered
under the Act or applicable state securities laws, setting forth or referring to the applicable restrictions on transferability
and sale of such securities under the Act and applicable state laws.

 

(f) The Company shall
apply the net proceeds from the sale of the Membership Interests for the purposes substantially as described in the LLC Membership
Interest Agreement. The Company will purchase the number of RACK Units in an amount equal to the gross funds raised in the Navesink
Offering, notwithstanding the deductions from the gross funds raised.

 

(g) During the Navesink
Offering Period, the Company shall afford each prospective purchaser of the Membership Interests the opportunity to ask questions
of and receive answers from an officer of the Company concerning the terms and conditions of the Navesink Offering and the opportunity
to obtain such other additional information necessary to verify the accuracy of the LLC Membership Interest Agreement to the extent
the Company possesses such information or can acquire it without unreasonable expense.

 

(h) Except as provided
in the LLC Membership Interest Agreement or with the prior written consent of the Placement Agent, the Company shall not, at any
time prior to the earlier of the Final Closing or the Termination Date, except as contemplated by the LLC Membership Interest Agreement
(i) engage in or commit to engage in any transaction outside the ordinary course of business as described in the LLC Membership
Interest Agreement, (ii) issue, agree to issue or set aside for issuance any securities (debt or equity) or any rights to acquire
any such securities, (iii) incur, outside the ordinary course of business, any material indebtedness, (iv) dispose of any material
assets, (v) make any material acquisition or (vi) change its business or operations in any material respect.

 

(i) The Company shall
pay all reasonable expenses incurred in connection with the preparation and printing of all necessary offering documents and instruments
related to the Navesink Offering and the issuance of the Membership Interests and will also pay for the Company’s expenses
for accounting fees, legal fees, printing costs, and other costs involved with the Navesink Offering. The Company will provide
at its own expense such quantities of the LLC Membership Interest Agreement and other documents and instruments relating to the
Navesink Offering as the Placement Agent may reasonably request. The Company will pay at its own expense in connection with the
creation, authorization, issuance, transfer and delivery of the Membership Interests, including, without limitation, fees and expenses
of any transfer agent or registrar; the fees and expenses of the Escrow Agent; all fees and expenses of legal, accounting and other
advisers to the Company; the registration or qualification of the Membership Interests for offer and sale under the securities
or Blue Sky laws of such jurisdictions, payable within five (5) days of being invoiced.

 

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6.          Conditions
of Placement Agent’s Obligations.

 

The obligations of
the Placement Agent hereunder to affect a Closing are subject to the fulfillment, at or before each Closing, of the following additional
conditions:

 

(a) Each of the representations
and warranties made by the Company (when read without regard to any qualification as to materiality or Material Adverse Effect
contained therein) shall be true and correct on each Closing Date, except to the extent any such representation or warranty expressly
speaks as of an earlier date, in which case such representation or warranty shall be true and correct as of such earlier date except
for any untrue or incorrect representation and warranty that, individually or in the aggregate, does not have a Company Material
Adverse Effect.

 

(b) The Company shall
have performed and complied in all material respects with all agreements, covenants and conditions required to be performed, and
complied with by it at or before the Closing.

 

(c) The LLC Membership
Interest Agreement does not, and as of the date of any amendment or supplement thereto will not, include any untrue statement of
a material fact or omit to state any material fact necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading.

 

(d) No order suspending
the use of the LLC Membership Interest Agreement or enjoining the Navesink Offering or sale of the Membership Interests shall have
been issued, and no proceedings for that purpose or a similar purpose shall have been initiated or pending, or, to the best of
the Company’s knowledge, be contemplated or threatened.

 

(e) The Placement Agent
shall have received a certificate from the authorized officer of the Company, dated as of the Closing Date, certifying, as to the
fulfillment of the conditions set forth in subparagraphs (a), (b), (c) and (d) above.

 

(f) The Company shall
have delivered to the Placement Agent resolutions of the Company approving this Agreement and the transactions and agreements contemplated
by this Agreement, and the LLC Membership Interest Agreement, all as certified by the authorized officer of the Company.

 

(g) At each Closing,
the Company shall pay and/or issue to the Placement Agent the Brokers’ Fees earned in such Closing.

 

7.          Conditions of the Company’s Obligations.

 

The obligations of
the Company hereunder are subject to the satisfaction of each of the following conditions:

 

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		a.	The satisfaction or waiver of all conditions to closing as set forth herein.

		b.	As of each Closing, each of the representations and warranties made by Placement Agent herein being
true and correct as of the Closing Date for such Closing.

		c.	At each Closing, the Company shall have received the proceeds from the sale of the Membership Interests
that are part of such Closing less applicable Brokers’ Fees and other offering expenses.

 

7A. Mutual Condition.
The obligations of the Placement Agent and the Company hereunder are subject to the execution by each investor of a Securities
Purchase Agreement in form and substance acceptable to the Placement Agent and the Company and deposit by such investor with the
escrow agent of all funds required to be so deposited by such investor.

 

8.          Indemnification.

 

(a) The Company will:
(i) indemnify and hold harmless the Placement Agent, its agents and their respective officers, directors, employees, selected dealers
and each person, if any, who controls the Placement Agent within the meaning of the Act and such agents (each an “Indemnitee”
or a “Placement Agent Party”) against, and pay or reimburse each Indemnitee for, any and all losses, claims, damages,
liabilities or expenses whatsoever (or actions or proceedings or investigations in respect thereof), severally (which will, for
all purposes of this Agreement, include, but not be limited to, all reasonable costs of defense and investigation and all reasonable
attorneys’ fees, including appeals), to which any Indemnitee may become subject (a) under the Act or otherwise, in connection
with the offer and sale of the Membership Interests and (b) as a result of the breach of any representation, warranty or covenant
made by the Company herein, regardless of whether such losses, claims, damages, liabilities or expenses shall result from any claim
by any Indemnitee or by any third party; and (ii) reimburse each Indemnitee for any legal or other expenses reasonably incurred
in connection with investigating or defending against any such loss, claim, action, proceeding or investigation; provided, however,
the Company will not be liable in any such case to the extent that any such claim, damage or liability is finally judicially determined
to have resulted from (A) an untrue statement or alleged untrue statement of a material fact made in the LLC Membership Interest
Agreement, or an omission or alleged omission to state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, made solely in reliance upon and in conformity with written information furnished to the
Company by the Placement Agent specifically for use in the LLC Membership Interest Agreement or (B) any violations by the Placement
Agent of the Act or state securities laws which does not result from a violation thereof by the Company or any of their respective
affiliates or (C) due to the intentional or negligent misrepresentation and/or malfeasance of the Placement Agent. In addition
to the foregoing agreement to indemnify and reimburse, the Company will indemnify and hold harmless each Indemnitee against any
and all losses, claims, damages, liabilities or expenses whatsoever (or actions or proceedings or investigations in respect thereof),
joint or several (which shall, for all purposes of this Agreement, include, but not be limited to, all reasonable costs of defense
and investigation and all reasonable attorneys’ fees, including appeals) to which any Indemnitee may become subject insofar
as such costs, expenses, losses, claims, damages or liabilities arise out of or are based upon the claim of any person or entity
that he or it is entitled to broker’s or finder’s fees from any Indemnitee in connection with the Navesink Offering
as a result of the Company obligating itself or any Indemnitee to pay such a fee, other than fees due to the Placement Agent, its
dealers, sub-agents or finders. The foregoing indemnity agreements will be in addition to any liability the Company may otherwise
have.

 

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(b) The Placement Agent
will indemnify and hold harmless the Company, its subsidiaries, and their respective officers, directors, and each person, if any,
who controls such entity within the meaning of the Act (collectively, the “Company Indemnitees”) against, and pay or
reimburse any such person for, any and all losses, claims, damages, liabilities or expenses whatsoever (or actions, proceedings
or investigations in respect thereof) to which the Company or any such person may become subject under the Act or otherwise, whether
such losses, claims, damages, liabilities or expenses shall result from any claim of the Company or any such person who controls
the Company within the meaning of the Act or by any third party, but only to the extent that such losses, claims, damages or liabilities
are based upon any violations by the Placement Agent of the Act or state securities laws which does not result from a violation
thereof by the Company or any of their respective affiliates, any untrue statement or alleged untrue statement of any material
fact contained in the LLC Membership Interest Agreement made in reliance upon and in conformity with information contained in the
LLC Membership Interest Agreement relating to the Placement Agent, or an omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein not misleading, in either case, if made or omitted
in reliance upon and in conformity with written information furnished to the Company by the Placement Agent, specifically for use
in the preparation thereof or due to the intentional or negligent misrepresentation and/or malfeasance of the Placement Agent.
The Placement Agent will reimburse the Company or any such person for any legal or other expenses reasonably incurred in connection
with investigating or defending against any such loss, claim, damage, liability or action, proceeding or investigation to which
such indemnity obligation applies. In addition to the foregoing agreement to indemnify and reimburse, the Placement Agent will
indemnify and hold harmless each Company Indemnitee against any and all losses, claims, damages, liabilities or expenses whatsoever
(or actions or proceedings or investigations in respect thereof), joint or several (which shall, for all purposes of this Agreement,
include, but not be limited to, all reasonable costs of defense and investigation and all reasonable attorneys’ fees, including
appeals) to which any Company Indemnitee may become subject insofar as such costs, expenses, losses, claims, damages or liabilities
arise out of or are based upon the claim of any person or entity that he or it is entitled to broker’s or finder’s
fees from any Company Indemnitee in connection with the Navesink Offering as a result of the Placement Agent obligating itself
or any Company Indemnitee to pay such a fee. The foregoing indemnity agreements are in addition to any liability which the Placement
Agent may otherwise have.

 

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(c) Promptly after
receipt by an indemnified party under this Section 8 of notice of the commencement of any action, claim, proceeding or investigation
(the “Action”), such indemnified party, if a claim in respect thereof is to be made against the indemnifying party
under this Section 8, will notify the indemnifying party of the commencement thereof, but the omission to so notify the indemnifying
party will not relieve it from any liability that it may have to any indemnified party under this Section 8 unless the indemnifying
party has been substantially prejudiced by such omission. The indemnifying party will be entitled to participate in and, to the
extent that it may wish, jointly with any other indemnifying party, to assume the defense thereof subject to the provisions herein
stated, with counsel reasonably satisfactory to such indemnified party. The indemnified party will have the right to employ separate
counsel in any such Action and to participate in the defense thereof, but the fees and expenses of such counsel will not be at
the expense of the indemnifying party if the indemnifying party has assumed the defense of the Action with counsel reasonably satisfactory
to the indemnified party, provided, however, that if the indemnified party shall be requested by the indemnifying party to participate
in the defense thereof or shall have concluded in good faith and specifically notified the indemnifying party either that there
may be specific defenses available to it that are different from or additional to those available to the indemnifying party or
that such Action involves or could have a material adverse effect upon it with respect to matters beyond the scope of the indemnity
agreements contained in this Agreement, then the counsel representing it, to the extent made necessary by such defenses, shall
have the right to direct such defenses of such Action on its behalf and in such case the reasonable fees and expenses of such counsel
in connection with any such participation or defenses shall be paid by the indemnifying party. No settlement of any Action against
an indemnified party will be made without the consent of the indemnifying party and the indemnified party, which consent shall
not be unreasonably withheld or delayed in light of all factors of importance to such party, and no indemnifying party shall be
liable to indemnify any person for any settlement of any such claim effected without such indemnifying party’s consent.

 

9.          Contribution.

 

To provide for just
and equitable contribution, if: (i) an indemnified party makes a claim for indemnification pursuant to Section 8 hereof and it
is finally determined, by a judgment, order or decree not subject to further appeal that such claims for indemnification may not
be enforced, even though this Agreement expressly provides for indemnification in such case; or (ii) any indemnified or indemnifying
party seeks contribution under the Act, the Exchange Act, or otherwise, then each indemnifying party shall contribute to such amount
paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative benefits but also
the relative fault of the Company on the one hand and the Placement Agent on the other in connection with the statements or omissions
which resulted in such losses, claims, damages, liabilities or expenses (or actions in respect thereof), as well as any other relevant
equitable considerations. The relative benefits received by the Company on the one hand and the Placement Agent on the other shall
be deemed to be in the same proportion as the total net proceeds from the Navesink Offering (before deducting expenses) received
by the Company bear to the total Brokers’ Fees received by the Placement Agent. The relative fault, in the case of an untrue
statement, alleged untrue statement, omission or alleged omission will be determined by, among other things, whether such statement,
alleged statement, omission or alleged omission relates to information supplied by the Company or by the Placement Agent, and the
parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement, alleged
statement, omission or alleged omission. The Company and the Placement Agent agree that it would be unjust and inequitable if the
respective obligations of the Company and the Placement Agent for contribution were determined by pro rata allocation of the aggregate
losses, liabilities, claims, damages and expenses or by any other method or allocation that does not reflect the equitable considerations
referred to in this Section 9. No person guilty of a fraudulent misrepresentation (within the meaning of Section 10(f) of the Act)
will be entitled to contribution from any person who is not guilty of such fraudulent misrepresentation. For purposes of this Section
9, each person, if any, who controls the Placement Agent within the meaning of the Act will have the same rights to contribution
as the Placement Agent, and each person, if any, who controls the Company within the meaning of the Act will have the same rights
to contribution as the Company, subject in each case to the provisions of this Section 9. Anything in this Section 9 to the contrary
notwithstanding, no party will be liable for contribution with respect to the settlement of any claim or action effected without
its written consent. This Section 9 is intended to supersede, to the extent permitted by law, any right to contribution under the
Act, the Exchange Act or otherwise available.

 

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10.          Termination.

 

(a) The Navesink Offering
may be terminated by the Placement Agent at any time prior to the expiration of the Navesink Offering Period in the event that:
(i) any of the representations, warranties or covenants of the Company contained herein or in the LLC Membership Interest Agreement
shall prove to have been false or misleading in any material respect when actually made; (ii) the Company shall have failed to
perform any of its material obligations hereunder or under any other Company Transaction Document or any other transaction document;
(iii) there shall occur any event, within the control of the Company that is reasonably likely to materially and adversely affect
the transactions contemplated hereunder or the ability of the Company to perform hereunder; or (iv) the Placement Agent determines
that it is reasonably likely that any of the conditions to Closing to be fulfilled by the Company set forth herein will not, or
cannot, be satisfied.

 

(b) The Navesink Offering
may be terminated by the Company at any time prior to the expiration of the Navesink Offering Period (i) in the event that the
Placement Agent shall have failed to perform any of its material obligations hereunder, or (ii) on account of the Placement Agent’s
fraud, illegal or willful misconduct or gross negligence or (iii) a material breach of this Agreement by the Placement Agent. In
the event of any such termination by the Company, the Placement Agent shall not be entitled to any amounts whatsoever except (i)
as may be due under any indemnity or contribution obligation provided herein or in any other Company Transaction Document, at law
or otherwise and (ii) it shall retain any Brokers’ Fees received for Closings that occurred prior to the Termination Date.

 

(c) This Navesink Offering
may be terminated upon mutual agreement of the Company and the Placement Agent at any time prior to the expiration of the Navesink
Offering Period.

 

(d) Before any termination
by the Placement Agent under Section 10(a) or by the Company under Section 10(b) shall become effective, the terminating party
shall give five (5) days prior written notice to the other party of its intention to terminate the Navesink Offering (the “Termination
Notice”). The Termination Notice shall specify the grounds for the proposed termination. If the specified grounds for termination,
or their resulting adverse effect on the transactions contemplated hereby, are curable, then the other party shall have three (3)
days from the Termination Notice within which to remove such grounds or to eliminate all of their material adverse effects on the
transactions contemplated hereby; otherwise, the Navesink Offering shall terminate.

 

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(e) Upon any termination
pursuant to this Section 10, the Placement Agent and the Company will instruct the Escrow Agent to cause all monies received with
respect to the subscriptions for the Membership Interests not accepted by the Company to be promptly returned to such subscribers
without interest, penalty or deduction.

 

11.          Survival.

 

(a) The obligations
of the parties to pay any costs and expenses hereunder and to provide indemnification and contribution as provided herein shall
survive any termination hereunder. In addition, the provisions of Sections 3, 8 through 17 shall survive the sale of the Membership
Interests or any termination of the Navesink Offering hereunder.

 

(b) The respective
indemnities, covenants, representations, warranties and other statements of the Company and the Placement Agent set forth in or
made pursuant to this Agreement will remain in full force and effect, regardless of any investigation made by or on behalf of,
and regardless of any access to information by the Company or the Placement Agent, or any of their officers or directors or any
controlling person thereof, and will survive the sale of the Membership Interests or any termination of the Navesink Offering hereunder.
Notwithstanding the foregoing, if either party effects a Closing with knowledge that one or more of the other party’s representations
and warranties has become untrue or inaccurate in any material respect or that such other party has failed to comply or satisfy
in any material respect a covenant, condition or agreement of it or them, the party so effecting the Closing shall be deemed to
have waived any claim based on the breach of such inaccurate representation and warranty or the failure to have complied with the
specific covenant or condition.

 

12.          Notices.

 

All
communications hereunder will be in writing and, except as otherwise expressly provided herein or after notice by one party to
the other of a change of address, if sent to the Placement Agent, will be mailed, postage prepaid, certified mail, return receipt
request or overnight courier or delivered by hand and signed by addressee to Gottbetter Capital Markets, LLC 488 Madison Avenue,
12th Floor, New York, New York 10022, Attention: Mr. Julio A. Marquez, President, telefax number (212) 400-6999, with a copy to:
Law Offices of Barbara J. Glenns, Esq. 30 Waterside Plaza, Suite 25G, New York, New York 10010, Attn: Barbara J. Glenns, Esq.,
telefax number (212) 689-6578, if sent to Navesink RACK, LLC will be mailed, postage prepaid, certified mail, return receipt or
overnight courier or delivered by hand and signed by addressee to: Alan D. Goddard, Managing Member, c/o Navesink RACK, LLC 1200
Federal Highway, Suite 300, Boca Raton, FL 33432, telefax number (561) 997-0041, and if to Rackwise, Inc. will be mailed, postage
prepaid, certified mail, return receipt or overnight courier or delivered by hand and signed by addressee to 2365 Iron Point Road,
Suite 190, Folsom, CA 95630 Attn: Guy A. Archbold, Chairman and CEO,
telefax number (415) 358-4665. A copy shall be sent to: Gottbetter & Partners, LLP, 488 Madison Avenue, 12th Floor,
New York, NY 10022 telefax: 212-400-6901 Attn: Scott Rapfogel, Esq. Notices sent by certified mail shall
be deemed received five days thereafter, notices sent by hand delivery or overnight delivery shall be deemed received on the date
of the relevant written record of receipt.

 

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13.          Governing
Law, Jurisdiction.

 

This Agreement shall
be deemed to have been made and delivered in New York City and shall be governed as to validity, interpretation, construction,
effect and in all other respects by the internal laws of the State of New York without regard to principles of conflicts of law
thereof.

 

THE
PARTIES HERETO AGREE TO SUBMIT ALL CONTROVERSIES TO the exclusive jurisdiction of finra ARBITRATION IN ACCORDANCE WITH THE PROVISIONS
SET FORTH BELOW AND UNDERSTAND THAT (A) ARBITRATION IS FINAL AND BINDING ON THE PARTIES, (B) THE PARTIES ARE WAIVING THEIR RIGHTS
TO SEEK REMEDIES IN COURT, INCLUDING THE RIGHT TO A JURY TRIAL, (C) PRE-ARBITRATION DISCOVERY IS GENERALLY MORE LIMITED AND DIFFERENT
FROM COURT PROCEEDINGS, (D) THE ARBITRATOR’S AWARD IS NOT REQUIRED TO INCLUDE FACTUAL FINDINGS OR LEGAL REASONING AND ANY
PARTY’S RIGHT TO APPEAL OR TO SEEK MODIFICATION OF RULES BY ARBITRATORS IS STRICTLY LIMITED, (E) THE PANEL OF FINRA ARBITRATORS
WILL TYPICALLY INCLUDE A MINORITY OF ARBITRATORS WHO WERE OR ARE AFFILIATED WITH THE SECURITIES INDUSTRY, AND (F) ALL CONTROVERSIES
WHICH MAY ARISE BETWEEN THE PARTIES CONCERNING THIS AGREEMENT SHALL BE DETERMINED BY ARBITRATION PURSUANT TO THE RULES THEN PERTAINING
TO FINRA. ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS AGREEMENT SHALL BE GOVERNED
BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEw york. JUDGMENT ON ANY AWARD OF ANY SUCH ARBITRATION
MAY BE ENTERED IN THE SUPREME COURT OF THE STATE OF NEW YORK OR IN ANY OTHER COURT HAVING JURISDICTION OVER THE PERSON OR PERSONS
AGAINST WHOM SUCH AWARD IS RENDERED. THE PARTIES AGREE THAT THE DETERMINATION OF THE ARBITRATORS SHALL BE BINDING AND CONCLUSIVE
UPON THEM. THE PREVAILING PARTY, AS DETERMINED BY SUCH ARBITRATORS, IN A LEGAL PROCEEDING SHALL BE ENTITLED TO COLLECT ANY COSTS,
DISBURSEMENTS AND REASONABLE ATTORNEY’S FEES FROM THE OTHER PARTY. 
PRIOR TO FILING AN ARBITRATION, THE PARTIES HEREBY AGREE THAT THEY WILL ATTEMPT TO RESOLVE THEIR DIFFERENCES FIRST BY SUBMITTING
THE MATTER FOR RESOLUTION TO A MEDIATOR, ACCEPTABLE TO ALL PARTIES, AND WHOSE EXPENSES WILL BE BORNE EQUALLY BY ALL PARTIES. THE
MEDIATION WILL BE HELD IN THE COUNTY OF NEW YORK, STATE OF NEW YORK, ON AN EXPEDITED BASIS. IF THE PARTIES CANNOT SUCCESSFULLY
RESOLVE THEIR DIFFERENCES THROUGH MEDIATION, THE MATTER WILL BE RESOLVED BY ARBITRATION. THE ARBITRATION SHALL TAKE PLACE IN THE
COUNTY OF NEW YORK, THE STATE OF NEW YORK, ON AN EXPEDITED BASIS.

 

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14.          Miscellaneous.

 

A.          No provision
of this Agreement may be changed or terminated except by a writing signed by the party or parties to be charged therewith. Unless
expressly so provided, no party to this Agreement will be liable for the performance of any other party’s obligations hereunder.
Either party hereto may waive compliance by the other with any of the terms, provisions and conditions set forth herein; provided,
however, that any such waiver shall be in writing specifically setting forth those provisions waived thereby. No such waiver shall
be deemed to constitute or imply waiver of any other term, provision or condition of this Agreement. Neither party may assign its
rights or obligations under this Agreement to any other person or entity without the prior written consent of the other party.

 

B.          Each party shall,
without payment of any additional consideration by any other party, at any time on or after the date of any Closings, take such
further action and execute such other and further documents and instruments as the other party may reasonably request in order
to provide the other party with the benefits of this Agreement.

 

C.          The Parties to
this Agreement each hereby confirm that they will cooperate with each other to the extent that it may become necessary to enter
into any revisions or amendments to this Agreement, in the future to conform to any federal or state regulations as long as such
revisions or amendments do not materially alter the obligations or benefits of either party under this Agreement.

 

15.          Entire
Agreement; Severability.

 

This Agreement together
with any other agreement referred to herein supersedes all prior understandings and written or oral agreements between the parties
with respect to the Navesink Offering and the subject matter hereof. If any portion of this Agreement shall be held invalid or
unenforceable, then so far as is reasonable and possible (i) the remainder of this Agreement shall be considered valid and enforceable
and (ii) effect shall be given to the intent manifested by the portion held invalid or unenforceable.

 

16.          Counterparts.

 

This Agreement may
be executed in multiple counterparts, each of which may be executed by less than all of the parties and shall be deemed to be an
original instrument which shall be enforceable against the parties actually executing such counterparts and all of which together
shall constitute one and the same instrument. The exchange of copies of this Agreement and of signature pages by facsimile transmission
or in pdf format shall constitute effective execution and delivery of this Agreement as to the parties and may be used in lieu
of the original Agreement for all purposes. Signatures of the parties transmitted by facsimile or in pdf format shall be deemed
to be their original signatures for all purposes.

 

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17.          Confidentiality.

 

(a)          The Placement
Agent will maintain the confidentiality of the Information and, unless and until such information shall have been made publicly
available by the Company or by others without breach of a confidentiality agreement, shall disclose the Information only as authorized
by the Company or as required by law or by order of a governmental authority or court of competent jurisdiction. In the event the
Placement Agent is legally required to make disclosure of any of the Information, the Placement Agent will give prompt notice to
the Company prior to such disclosure, to the extent the Placement Agent can practically do so.

 

(b)          The foregoing
paragraph shall not apply to information that:

 

(i)          at the time of
disclosure by the Company, is or thereafter becomes, generally available to the public or within the industries in which the Company
conducts business, other than as a result of a breach by the Placement Agent of its obligations under this Agreement;

 

(ii)          prior to or at
the time of disclosure by the Company, was already in the possession of, the Placement Agent or any of its affiliates, or could
have been developed by them from information then lawfully in their possession, by the application of other information or techniques
in their possession, generally available to the public; at the time of disclosure by the Company thereafter, is obtained by the
Placement Agent or any of its affiliates from a third party who the Placement Agent reasonably believes to be in possession of
the information not in violation of any contractual, legal or fiduciary obligation to the Company with respect to that information;
or is independently developed by the Placement Agent or its affiliates.

 

The exclusions set forth in sub-section
(b) above shall not apply to pro forma financial information of the Company, which pro forma Information shall in all events be
subject to sub-section (a) above.

 

(c)          Nothing in this
Agreement shall be construed to limit the ability of the Placement Agent or its affiliates to pursue, investigate, analyze, invest
in, or engage in investment banking, financial advisory or any other business relationship with entities other than the Company,
notwithstanding that such entities may be engaged in a business which is similar to or competitive with the business of the Company,
and notwithstanding that such entities may have actual or potential operations, products, services, plans, ideas, customers or
supplies similar or identical to the Company’s, or may have been identified by the Company as potential merger or acquisition
targets or potential candidates for some other business combination, cooperation or relationship. The Company expressly acknowledges
and agrees that they do not claim any proprietary interest in the identity of any other entity in its industry or otherwise, and
that the identity of any such entity is not confidential information.

 

[Signatures on following page.]

 

    	22

    	 

    

 

If the foregoing is
in accordance with your understanding of the agreement among the Company, Rackwise, Inc. and the Placement Agent, kindly sign and
return this Agreement, whereupon it will become a binding agreement as provided herein, among the Company, Rackwise, Inc. and the
Placement Agent in accordance with its terms.

 

	 	NAVESINK RACK, LLC
	 	 	 
	 	By:	/s/ Alan D. Goddard
	 	 	 Alan D. Goddard
	 	 	 Managing Member
	 	 	 1200 Federal Highway
	 	 	 Suite 200
	 	 	 Boca Raton, FL  33432
	 	 	 
	 	RACKWISE, INC.
	 	 	 
	 	By: 	/s/ Guy A. Archbold
	 	 	 Guy A. Archbold
	 	 	 CEO
	 	 	 2365 Iron Point Road
	 	 	 Suite 190
	 	 	 Folsom, CA 95630

 

Accepted and agreed to this

10th day of April, 2013:

 

GOTTBETTER CAPITAL MARKETS, LLC

 

	By: 	/s/ Julio A. Marquez	 
	 	 Julio A. Marquez	 
	 	 President	 

 

    	 

    	 

    

 

AMENDMENT

 

This Amendment (“Amendment”)
is entered into as of the 5th day of June 2013, by and between Navesink RACK, LLC (“Company”), Rackwise,
Inc. and Gottbetter Capital Markets, LLC (“Placement Agent”) and amends the Placement Agency Agreement (“PAA”)
dated 10th day of April 2013.

 

The Parties to the
Agreement hereby amend Paragraph 3(a) Placement Agent Compensation as follows:

 

		a)	In connection with the Navesink Offering, the Company will pay a cash fee (the “Agent Cash
Fee”) to the Placement Agent at each Closing and as a condition to closing, equal to Ten Percent (10%) of the gross sales
price of the securities purchased by those Investor(s) directly introduced to the Company by Markets or through other sub agents
pursuant to executed subagency agreements (collectively referred to as “Markets Clients”), as listed on the attached
Schedule A as amended and updated from time to time. In addition, the Placement Agent will also be paid a non-accountable expense
allowance at each closing not to exceed Three Percent (3%) of the gross sales price of the securities purchased by Markets Clients.
Additionally, the Company will pay an Agent Cash Fee to the Placement Agent at each Closing equal to Ten Percent (10%) of the gross
sales price of the securities purchased by those Investors identified as Referral Clients listed on Schedule A.

 

Further, the Company will deliver
to the Placement Agent Class B Membership Interests equal to Five Percent (5%) of the number of Class B Membership Interests sold
in the Navesink Offering (“Agent Membership Interests”) to Markets Clients and Referral Clients. The “Agent Cash
Fee” and “Agent Membership Interests” are sometimes referred to collectively as (“Brokers’ Fees”).

 

This Amendment may
be executed in multiple counterparts, each of which may be executed by less than all of the parties and shall be deemed to be an
original instrument which shall be enforceable against the parties actually executing such counterparts and all of which together
shall constitute one and the same instrument. The exchange of copies of this Amendment and of signature pages by facsimile transmission
or in pdf format shall constitute effective execution and delivery of this Amendment as to the parties and may be used in lieu
of the original Amendment for all purposes. Signatures of the parties transmitted by facsimile or in pdf format shall be deemed
to be their original signatures for all purposes.

 

    	 

    	 

    

 

This Amendment and
Schedule A, as amended, is hereby made part of and incorporated into the Placement Agency Agreement, with all the terms and conditions
of the Agreement remaining in full force and effect, except to the extent modified hereby. The Parties agree for and on behalf
of their respective party this 5th day of June 2013.

 

	NAVESINK RACK, LLC	 
	 	 	 
	By:	/s/ Alan D. Goddard	 
	 	 Alan D. Goddard	 
	 	 Managing Member	 
	 	 	 
	RACKWISE, INC.	 
	 	 	 
	By:	/s/ Guy A. Archbold	 
	 	 Guy A. Archbold	 
	 	 President	 
	 	 	 
	GOTTBETTER CAPITAL MARKETS, LLC	 
	 	 	 
	By: 	/s/ Julio A. Marquez	 
	 	 Julio A. Marquez	 
	 	 President

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