Document:

Unassociated Document

  

  

 

  

EXHIBIT 10.1

 

Execution Version

 

 

 

 

AMENDMENT NO. 1

 

 

TO

 

 

FIFTH AMENDED AND RESTATED CREDIT AGREEMENT

 

 

THIS AMENDMENT NO. 1 TO FIFTH AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”), dated as of May 13, 2015, is entered into by and among Acxiom Corporation, as the Borrower, the Lenders party hereto and JPMorgan Chase Bank, N.A., as the Administrative Agent, Issuing Bank and Swingline Lender.  Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Credit Agreement referenced below.

 

 

WITNESSETH

 

 

WHEREAS, the Borrower, the Lenders and the Administrative Agent are parties to a Fifth Amended and Restated Credit Agreement, dated as of October 9, 2013 (the “Existing Credit Agreement” and as may be amended, restated, supplemented or otherwise modified from time to time (including by this Amendment), the “Credit Agreement”);

 

 

WHEREAS, the Borrower has requested that the Lenders and the Administrative Agent agree to certain amendments to the Existing Credit Agreement; and

 

 

WHEREAS, the Lenders party hereto and the Administrative Agent have agreed to such amendments on the terms and conditions set forth herein.

 

 

NOW, THEREFORE, in consideration of the premises set forth above, the terms and conditions contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

 

Section 1.                      Amendments to Existing Credit Agreement.  Subject to the satisfaction of the conditions precedent set forth in Section 2 and Section 3 below, the parties hereto agree that the Existing Credit Agreement is hereby amended as follows:

 

 

	
(a)  

	
The following defined term is hereby added to Section 1.01 of the Existing Credit Agreement in its appropriate alphabetical location:

 

 

“Adjustment Period” means the fiscal quarters ending on September 30, 2015, December 31, 2015 and March 31, 2016.

 

 

	
(b)  

	
The definition of “Adjusted EBITDA” appearing in Section 1.01 of the Existing Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

 

“Adjusted EBITDA” means, for any four fiscal quarters most recently ended (the “Subject Period”), the total of the following calculated without duplication for such period: (a) Borrower’s EBITDA; plus (b), (i) on a pro forma basis, the EBITDA attributable to each Prior Target or, as applicable, to the assets acquired from such Prior Target, for any portion of such Subject Period occurring prior to the date of the acquisition of such Prior Target or such related assets but only to the extent such pro forma EBITDA can be established in a manner reasonably satisfactory to the Administrative Agent based on financial statements of the Prior Target prepared in accordance with GAAP and (ii) solely for purposes of calculating compliance (including pro forma compliance) with Section 7.02 during the Adjustment Period, documented business separation and transformation expenses in an aggregate amount not to exceed $30,000,000 for any Subject Period during the Adjustment Period; minus (c) the EBITDA of each Prior Company and, as applicable but without duplication, the EBITDA of Borrower and each Subsidiary attributable to all Prior Assets, in each case for any portion of such Subject Period occurring prior to the date of the disposal of such Prior Companies or Prior Assets.

 

 

	
(c)  

	
The definition of “Capital Expenditures” appearing in Section 1.01 of the Existing Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

 

  

1

  

“Capital Expenditures” means, for any period: (a) the capitalized software development costs; plus (b) the capitalized data acquisition costs; plus (c) the capital expenditures of the Borrower and its consolidated Subsidiaries, in each case of clause (a), (b) and (c), as set forth (or as should be set forth) in the investing activities section of the consolidated statement of cash flow of the Borrower for such period prepared in accordance with GAAP; plus (d) on a pro forma basis, the expenditures of the type described in clause (a), (b) and (c) attributable to each Prior Target for any portion of such Subject Period occurring prior to the date of the acquisition of such Prior Target but only to the extent such pro forma expenditures can be established in a manner reasonably satisfactory to the Administrative Agent based on financial statements of the Prior Target prepared in accordance with GAAP; minus (e) on a pro forma basis, the expenditures of the type described in clause (a), (b) and (c) of each Prior Company and, as applicable but without duplication, such expenditures of Borrower and each Subsidiary attributable to all Prior Assets, in each case for any portion of such Subject Period occurring prior to the date of the disposal of such Prior Companies or Prior Assets.

 

 

	
(d)  

	
The definition of “Capital Lease Obligations” appearing in Section 1.01 of the Existing Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

 

“Capital Lease Obligations” of any Person, at the time of determination, means the obligations of such Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as capital leases on a balance sheet of such Person under GAAP, and the amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP. When calculating “Capital Lease Obligations” for purposes of determining the Leverage Ratio on a pro forma basis, “Capital Lease Obligations” shall be that of the Borrower and the Subsidiaries on a consolidated basis (without duplication) as of the date of determination.

 

 

	
(e)  

	
The definition of “Total Indebtedness” is amended by adding the following sentence to the end thereof:

 

 

“When calculating “Total Indebtedness” for purposes of determining the Leverage Ratio on a pro forma basis, “Total Indebtedness” shall be that of the Borrower and the Subsidiaries on a consolidated basis (without duplication) as of the date of determination.”

 

 

	
(f)  

	
Section 6.06(a) of the Existing Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

 

“(a)           (i) So long as on the date of any such proposed Restricted Payment and after giving effect thereto, no Default exists, Borrower may declare and pay dividends ratably with respect to its common stock in an aggregate amount not to exceed $30,000,000 in any fiscal year of the Borrower; provided that, notwithstanding the foregoing, Borrower shall not declare or pay dividends during the Adjustment Period and (ii) Subsidiaries may declare and pay dividends ratably with respect to their Equity Interests;”

 

 

	
(g)  

	
Section 6.06(f)(ii) of the Existing Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

 

“(ii)           as of the date of such payment, either:  (A) the Leverage Ratio is less than or equal to 2.25 to 1.00 calculated on a pro forma basis as of the last day of the most recently-ended fiscal quarter of Borrower as if the Restricted Payment had occurred on the first day of the four fiscal quarter period ending on the last day of such fiscal quarter; provided that with respect to Restricted Payments on account of the purchase or redemption of any Equity Interests in Borrower (collectively, “Share Repurchases”) in reliance of this clause (A) on any day during the Adjustment Period, the sum of the aggregate amount paid by the Borrower for Share Repurchases 

 

  

2

  

made pursuant to this paragraph (f) in the then current fiscal year plus the aggregate amount of the Share Repurchases to be made on such date does not exceed $100,000,000, or (B) the Leverage Ratio as so calculated for such date is more than 2.25 to 1.00, then, with respect to Restricted Payments in reliance of this clause (B), the sum of the aggregate amount paid by the Borrower for Restricted Payments made under the permission of this paragraph (f) in the then

current fiscal year plus the aggregate amount of the Restricted Payment to be made on such date does not exceed $50,000,000.”

 

 

	
(h)  

	
Section 7.02 of the Existing Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

 

 “Section 7.02.                                Fixed Charge Coverage.  As of the last day of each fiscal quarter, the Borrower shall not permit the ratio of (a) the sum of the following for Borrower and the Subsidiaries calculated on a consolidated basis in accordance with GAAP:  (i) Adjusted EBITDA; minus (ii) Capital Expenditures to (b) Fixed Charges, all calculated for the four fiscal quarters ending on the last day of such fiscal quarter, to be less than (x) for each fiscal quarter ending during the Adjustment Period, 1.00 to 1.00 and (y) commencing with the fiscal quarter ending June 30, 2016 and each fiscal quarter thereafter, 1.25 to 1.00.  As used in this Section 7.02, “Fixed Charges” means for any period, the sum of the following for the Borrower and the Subsidiaries calculated on a consolidated basis without duplication for such period:  (a) the aggregate amount of interest, including payments in the nature of interest under Capitalized Lease Obligations (when on a pro forma basis, calculated in accordance with Section 1.04(b))  and (b) the scheduled amortization of Indebtedness paid or payable.”

 

Section 2.                      Conditions of Closing.  Other than the amendments set forth in Section 1 above (which amendments shall not become effective until the Amendment No. 1 Effective Date (as defined below), this Amendment shall be effective on the date (the “Amendment No. 1 Closing Date”) each of the following conditions is satisfied (or waived in accordance with Section 10.02 of the Existing Credit Agreement):

 

 

	
(a)  

	
The Administrative Agent shall have received (i) counterparts to this Amendment, duly executed by each of the Borrower, the Required Lenders and the Administrative Agent and (ii) counterparts of a Consent and Reaffirmation substantially in the form attached hereto as Exhibit A, duly executed by each Subsidiary Guarantor.

 

 

	
(b)  

	
Borrower shall have paid (i) to the Administrative Agent, for the benefit of each Lender  party hereto, an amount equal to 0.05% of the aggregate amount of each such Lender’s Commitment immediately prior to the Amendment No. 1 Closing Date and (ii) to J.P. Morgan Securities LLC, as lead arranger with respect to this Amendment, such fees as Borrower and J.P. Morgan Securities LLC have separately agreed.

 

 

	
(c)  

	
The Administrative Agent shall have received reimbursements for all reasonable documented and out-of-pocket expenses (including reasonable fees and expenses of Sidley Austin LLP, counsel to the Administrative Agent) that are required to be reimbursed or paid by the Borrower pursuant to Section 10.03(a) of the Credit Agreement and that have been invoiced prior to the Amendment No. 1 Closing Date.

 

 

	
(d)  

	
The Contribution and Stock Purchase Agreement by and among Aspen Holdco, Inc., Acxiom Corporation, Acxiom IT Outsourcing, Inc., Acxiom Limited, Aspen Hivedown Limited, Acxiom Global Service Center Polska sp. z.o.o., Acxiom Polska sp. z.o.o. w likwidacji, and Acxiom ITO Polska sp. z.o.o., dated on or about the Amendment No. 1 Closing Date (the “PSA”) shall have become effective.

 

 

  

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Section 3.                      Conditions of Effectiveness.  The amendments to the Existing Credit Agreement set forth in Section 1 above shall become effective on the date (the “Amendment No. 1 Effective Date”) each of the following conditions is satisfied (or waived in accordance with Section 10.02 of the Existing Credit Agreement):

 

 

	
(a)  

	
The Administrative Agent shall have received from Borrower a certificate in form and substance reasonably satisfactory to the Administrative Agent, which certificate has been executed by the secretary of Borrower (or other such officer as may be acceptable to the Administrative Agent) and certifies that:

 

 

	
i.  

	
both before and after giving effect to amendments to the Existing Credit Agreement set forth in Section 1 above, the ITO Disposition and the payment of the Prepayment Amount (as defined below), no Default or Event of Default exists;

 

 

	
ii.  

	
the representations and warranties contained in Article III of the Credit Agreement and the other Loan Documents shall be true and correct in all material respects, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall have been true and correct in all material respects as of such earlier date, except that the representations and warranties contained in Section 3.04 of the Credit Agreement shall be deemed to refer to the most recent financial statements furnished pursuant to Sections 5.01(a) and (b) of the Existing Credit Agreement, respectively; and

 

 

	
iii.  

	
the Borrower shall be in compliance, on a pro forma basis (after giving effect to amendments to the Existing Credit Agreement set forth in Section 1 above, the ITO Disposition and the payment of the Prepayment Amount (as defined below)) with the requirement contained in Section 6.05(a).

 

 

	
(b)  

	
ITO Disposition has occurred or will occur on the Amendment No. 1 Effective Date.

 

 

	
(c)  

	
Borrower shall have paid the Prepayment Amount.

 

 

	
(d)  

	
Borrower shall have paid (i) to the Administrative Agent, for the benefit of each Lender  party hereto, an amount equal to 0.05% of the aggregate amount of each such Lender’s Commitment immediately prior to the Amendment No. 1 Closing Date and (ii) to J.P. Morgan Securities LLC, as lead arranger with respect to this Amendment, such fees as Borrower and J.P. Morgan Securities LLC have separately agreed; provided, however, nothing shall require the Borrower to pay such amounts if the ITO Disposition does not occur.

 

 

	
(e)  

	
The Administrative Agent shall have received reimbursements for all reasonable documented and out-of-pocket expenses (including reasonable fees and expenses of Sidley Austin LLP, counsel to the Administrative Agent) that are required to be reimbursed or paid by the Borrower pursuant to Section 10.03(a) of the Credit Agreement and that have been invoiced prior to the Amendment No. 1 Effective Date.

 

 

	
(f)  

	
The Administrative Agent shall have received such other documents as the Administrative Agent may reasonably request.

 

 

If the Amendment No. 1 Effective Date has not occurred on or before September 30, 2015, then this Amendment shall be null and void.   “Prepayment Amount” means the portion of the Net Proceeds from the ITO Disposition equal to the amount that results in the Leverage Ratio (calculated on a pro forma basis after giving effect to the ITO Disposition and the prepayment of any Indebtedness) being equal to 2.00 to 1.00.  For purposes of this Amendment, “ITO Disposition” means the Asset Sale contemplated pursuant to the PSA.

 

 

Section 4.                      Representations and Warranties of the Borrower.  The Borrower hereby represents and warrants as follows:

 

  

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(a)           This Amendment has been duly executed and delivered by it and constitutes its legal, valid and binding obligation, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding at law or in equity.

 

 

(b)           Immediately after giving effect to this Amendment, the representations and warranties of the Borrower set forth in the Credit Agreement are true and correct in all material respects (except for any representation and warranty that is qualified by materiality or reference to Material Adverse Effect, which such representation and warranty shall be true and correct in all respects), on and as of the date hereof, except to the extent any such representation or warranty is stated to relate solely to an earlier date, in which case such representation or warranty is true and correct in all material respects (except for any representation and warranty that is qualified by materiality or reference to Material Adverse Effect, which such representation and warranty shall be true and correct in all respects) on and as of such earlier date.

 

 

(c)           Immediately before and after the Amendment No. 1 Closing Date, no Default or Event of Default shall have occurred and be continuing.

 

 

Section 5.                      Effect on Credit Agreement.

 

 

(a)           Upon the effectiveness of this Amendment on the Amendment No. 1 Effective Date, each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or words of like import shall mean and be a reference to such Agreement, as amended and modified hereby.

 

 

(b)           Except as specifically amended and modified above, the Credit Agreement and all other documents, instruments and agreements executed and/or delivered in connection therewith shall remain in full force and effect, and are hereby ratified and confirmed.

 

 

(c)           The execution, delivery and effectiveness of this Amendment shall neither, except as expressly provided herein, operate as a waiver of any right, power or remedy of the Administrative Agent or any Lender, nor constitute a waiver of any provision of the Credit Agreement or any other documents, instruments and agreements executed and/or delivered in connection therewith.

 

 

Section 6.                      GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

 

Section 7.                      Headings.  Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.

 

 

Section 8.                      Counterparts.  This Amendment may be executed by one or more of the parties to this Amendment on any number of separate counterparts and all of said counterparts taken together shall be deemed to constitute one and the same instrument. A facsimile or PDF copy of any signature hereto shall have the same effect as the original thereof.

 

 

[The remainder of this page is intentionally blank.]

 

5

  

  

  

 

IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year first above written.

 

 

 

	  	
ACXIOM CORPORATION, as the Borrower

	  	  
	  	  
	  	
By:

	 /s/ Jack W. McCrary, Jr.	  
	  	  	
Name: Jack W. McCrary, Jr.

	  	  	
Title: Vice President of Finance - Treasurer

 

	  	
JPMORGAN CHASE BANK, N.A., as Administrative Agent, the Issuing Bank, the Swingline Lender and a Lender

	  	  
	  	  
	  	
By:

	 /s/ Gregory T. Martin	 
	  	  	
Name: Gregory T. Martin

	  	  	
Title: Executive Director

 

 

	 	
WELLS FARGO BANK, NATIONAL ASSOCIATION, as a Lender

	 	 
	 	 
	 	
By:

	 /s/ Charles Goldberg	 
	 	 	
Name: Charles Goldberg

	 	 	
Title: Senior Vice President

 

 

	 	
BANK OF AMERICA, N.A., as a Lender

	 	 
	 	 
	 	
By:

	 /s/ Lisa M. Chizanowski	 
	 	 	
Name: Lisa M. Chizanowski

	 	 	
Title: Senior Vice President

 

 

	 	
THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., as a Lender

	 	 
	 	 
	 	
By:

	 /s/ Matthew Antioco	 
	 	 	
Name: Matthew Antioco

	 	 	
Title: Vice President

 

 

	 	
SUNTRUST BANK, as a Lender

	 	 
	 	 
	 	
By:

	 /s/ Henry Spark	 
	 	 	
Name: Henry Spark

	 	 	
Title: Vice President

 

	 	
PNC BANK, NATIONAL ASSOCIATION, as a Lender

	 	 
	 	 
	 	
By:

	 /s/ Thomas S. Sherman	 
	 	 	
Name: Thomas S. Sherman

	 	 	
Title: Senior Vice President

	 	
REGIONS BANK, as a Lender

	 	 
	 	 
	 	
By:

	 /s/ Bruce Rudolph	 
	 	 	
Name: Bruce Rudolph

	 	 	
Title: Vice President

 

	 	
COMPASS BANK, as a Lender

	 	 
	 	 
	 	
By:

	 /s/ Frank Carvelli	 
	 	 	
Name: Frank Carvelli

	 	 	
Title: Senior Vice President

 

	 	
CAPITAL ONE BANK, as a Lender

	 	 
	 	 
	 	
By:

	 /s/ Kiel Johnson	 
	 	 	
Name: Kiel Johnson

	 	 	
Title: Vice President

 

	 	
HSBC BANK USA, N.A., as a Lender

	 	 
	 	 
	 	
By:

	 /s/ Santiago Riviere	 
	 	 	
Name: Santiago Riviere

	 	 	
Title: Senior Vice President

 

 

	 	
BRANCH BANKING AND TRUST COMPANY, as a Lender

	 	 
	 	 
	 	
By:

	 /s/ Janet L. Wheeler	 
	 	 	
Name: Janet L. Wheeler

	 	 	
Title: Vice President

	
  

	
 

	
  

	
 

	
  

	
 

Signature Page to Amendment No. 1 to Fifth A&R Credit Agreement

  

  

  

 

EXHIBIT A

 

 

 

 

CONSENT AND REAFFIRMATION

 

 

 

 

Each of the undersigned hereby acknowledges receipt of a copy of that certain Amendment No. 1 to Fifth Amended and Restated Credit Agreement, dated as of May 13, 2015 (the “Amendment”), by and among Acxiom Corporation, as the Borrower, the Lenders party thereto, and JPMorgan Chase Bank, N.A., as the Administrative Agent, the Issuing Bank and the Swingline Lender, which amends that certain Fifth Amended and Restated Credit Agreement, dated as of October 9, 2013 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among the Borrower, the Lenders, the Administrative Agent, the Swingline Lender and the Issuing Bank. Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Credit Agreement.   Without in any way establishing a course of dealing by the Administrative Agent or any Lender, each of the undersigned consents to the Amendment and acknowledges and agrees that each Loan Document executed and delivered by it remains in full force and effect and is hereby reaffirmed, ratified and confirmed.  All references to the Credit Agreement contained in the Loan Documents shall be a reference to such Agreement as so modified by the Amendment.

 

 

Dated:  May 13, 2015

 

 

[Signature Pages Follow]

 

 

 

 

 

  

  

  

 

IN WITNESS WHEREOF, this Consent and Reaffirmation has been duly executed as of the day and year first above written.

 

 

 

	  	
ACXIOM CDC, INC.

ACXIOM CH, INC.

ACXIOM DIGITAL, INC.

ACXIOM DIRECT, INC.

ACXIOM/DIRECT MEDIA, INC.

ACXIOM DUTCH HOLDINGS, LLC

ACXIOM GOVERNMENT SERVICES, INC.

ACXIOM IT OUTSOURCING, INC.

ACXIOM IDENTITY SOLUTIONS, LLC

ACXIOM ITO HOLDING I, LLC

ACXIOM ITO HOLDING II, LLC

LIVERAMP, INC.

	  	  
	  	  
	  	
By:

	 /s/ Jack W. McCrary, Jr.	  
	  	  	
Name: Jack W. McCrary, Jr.

	  	  	
Title: Vice President of Finance - Treasurer

 

 

 

 

 

 

Signature Page to Consent and Reaffirmation for 

Amendment No. 1 to Fifth Amended and Restated Credit AgreementINVESTMENT
AGREEMENT

 

This
INVESTMENT AGREEMENT (the "Agreement"), dated as of May 19, 201 5 (the "Execution Date"), is
entered into by and between Rich Pharmaceuticals, Inc., a Nevada corporation (the "Company"), with its principal
executive office at 9595 Wilshire Blvd, Suite 900, Beverly Hills, CA 90212, and LG Capital Funding, LLC, a New York limited liability
company (the "Investor"), with its principal executive office at 1218 Union Street, Suite #2, Brooklyn, NY 1 1225.

 

RECITALS:

 

WHEREAS,
the parties desire that, upon the terms and subject to the conditions contained herein, the Investor shall purchase up to 500,000,000
shares of the Company's common stock, par value $0.001 per share (the "Common Stock");

 

NOW
THEREFORE, in consideration of the foregoing recitals, which shall be considered an integral part of this Agreement, the covenants
and agreements set forth hereafter, and other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Company and the Investor hereby agree as follows:

 

SECTION
I.

DEFINITIONS

 

For
all purposes of and under this Agreement, the following terms shall have the respective meanings below, and such meanings shall
be equally applicable to the singular and plural forms of such defined terms.

 

"1933
Act" shall have the meaning set forth in the recitals.

 

"1934
Act" shall mean the Securities Exchange Act of 1934, as amended, or any similar federal statute, and the rules and regulations
of the SEC thereunder, all as the same will then be in effect.

 

"Affiliate"
shall have the meaning set forth in Section 5.7.

 

"Agreement"
shall have the meaning set forth in the preamble.

 

"By-laws"
shall have the meaning set forth in Section 4.3

 

"Certificate
of incorporation" shall have the meaning set forth in Section 4.3.

 

"Closing"
shall have the meaning set forth in Section 2.4.

 

"Closing
Date" shall have the meaning set faith in Section 2.4.

 

"Common
Stock" shall have the meaning set forth in the recitals.

 

"Control"
or "Controls" shall have the meaning set forth in Section 5.7.

    	 

    	 

    

"Drawdown"
shall have the meaning set forth in Section 2.2.

 

"Drawdown
Amount" shall have the meaning set forth in Section 2.2.

 

"Drawdown
Notice" shall mean a written notice sent to the Investor by the Company stating the Drawdown Amount in U.S. dollars that
the Company intends to sell to the Investor pursuant to the terms of the Agreement and stating the current number of Shares issued
and outstanding on such date.

 

"Drawdown
Notice Date" shall mean the Trading Day, as set forth below, on which the Investor receives a Drawdown Notice, however
a Drawdown Notice shall be deemed delivered on (a) the Trading Day it is received by facsimile or otherwise by the Investor if
such notice is received prior to 12:00 pm Eastern Time, or (b) the immediately succeeding Trading Day if it is received by facsimile
or otherwise after 12:00 pm Eastern Time on a Trading Day. No Drawdown Notice may be deemed delivered on a day that is not a Trading
Day.

 

"Effective
Date" shall mean the date the SEC declares effective under the 1933 Act the Registration Statement covering the Securities.

 

"Environmental
Laws" shall have the meaning set forth in Section 4.13.

 

"Execution
Date" shall have the meaning set forth in the preamble.

 

"Financing
Agreements" shall mean this Agreement between the Company and the Investor as of the date herewith.

 

"Indemnified
Liabilities" shall have the meaning set forth in Section l0.

 

"Indemnitees"
shall have the meaning set forth in Section 10.

 

"Indemnitor"
shall have the meaning set forth in Section 10.

 

"Ineffective
Period'' shall mean any period of time that the Registration Statement or any supplemental registration statement becomes
ineffective or unavailable for use for the sale or resale, as applicable, of any or all of the Registerable Securities for any
reason (or in the event the prospectus under either of the above is not current and deliverable).

 

"Investor"
shall have the meaning set faith in the preamble.

 

"Market
Price" shall mean the lesser of: (1) the lowest traded price of the Company Common Stock during the Pricing Period or
(2) closing bid price on the day before the Drawdown Notice is submitted.

 

"Material
Adverse Effect" shall have the meaning set forth in Section 4.1.

 

"Maximum
Common Stock Issuance" shall have the meaning set forth in Section 2.6.

 

"Open
Period" shall mean the period beginning on and including the Trading Day immediately following the Effective Date and
ending on the earlier to occur of (a) the date which is thirty-six (36) months from the Effective Date; or (b) termination of
the Agreement in accordance with Section 8.

    	2

    	 

    

"PCAOB"
shall have the meaning set forth in Section 4.6.

 

"Pricing
Period" shall mean ten (10) consecutive Trading Days prior to the Drawdown Notice Date.

 

"Principal
Market" shall mean the New York Stock Exchange, the NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the
Nasdaq Global Select Market, the OTC Markets or the OTC Bulletin Board, whichever is the principal market on which the Common
Stock is listed.

 

"Prospectus"
shall mean the prospectus, preliminary prospectus and supplemental prospectus used in connection with the Registration Statement.

 

"Purchase
Amount" shall mean the total amount being paid by the Investor on a particular Closing Date to purchase the Securities.

 

"Purchase
Price" shall mean seventy percent (70%) of the Market Price.

 

"Registerable
Securities" means (i) the shares of Common Stock issued or issuable pursuant to this Agreement, and (ii) any shares of
capital stock issued or issuable with respect to such shares of Common Stock, if any, as a result of any stock split, stock dividend,
recapitalization, exchange or similar event or otherwise, which have not been (x) included in the Registration Statement that
has been declared effective by the SEC, or (y) sold under circumstances meeting all of the applicable conditions of Rule 1 44
(or any similar provision then in force) under the 1933 Act.

 

"Registration
Statement" means the registration statement of the Company filed under the 1933 Act covering the Securities issuable
hereunder.

 

"Related
Party" shall have the meaning set forth in Section 5.7.

 

"Resolution"
shall have the meaning set forth in Section 7.5.

 

"SEC"
shall mean the U.S. Securities and Exchange Commission.

 

"SEC
Documents" shall have the meaning set forth in Section 4.6

 

"Securities"
shall mean the Shares issued pursuant to the terms of the Agreement.

 

"Shares"
shall mean the shares of the Company's Common Stock.

 

"Subsidiaries"
shall have the meaning set forth in Section 4.1.

 

"Trading
Day" shall mean any day on which the Principal Market for the Common Stock is open for trading, from the hours of 9:30
am until 4:00 pm.

    	3

    	 

    

SECTION
II

PURCHASE
AND SALE OF COMMON STOCK

 

2.1                
PURCHASE AND SALE OF COMMON STOCK. Subject to the terms and conditions set forth herein, the Company shall issue and sell
to the Investor, and the Investor shall purchase from the Company, five hundred thousand shares of the Common Stock of the Company.

 

2.2                
DELIVERY OF DRAWDOWN NOTICES. Subject to the terms and conditions of the Financing Agreements, and from time to time during
the Open Period, but no more than once every ten trading (10) days, the Company may, in its sole discretion, deliver a Drawdown
Notice to the Investor which states the dollar amount (designated in U.S. Dollars), which the Company intends to sell to the Investor
on a Closing Date (the ''Drawdown"). The Drawdown Notice shall be in the form attached hereto as Exhibit A and incorporated
herein by reference. The maximum amount that the Company shall be entitled to Drawdown to the Investor (the "Drawdown Amount")
shall be two hundred percent (200%) of average daily trading volume (U.S. market only) of the Common Stock during the ten (10)
days preceding the Drawdown Notice, so long as such amount does not render the Investor a holder of more than 4.99% of the outstanding
Shares of the Company.

 

2.3                
CONDITIONS TO INVESTOR'S OBLIGATION TO PURCHASE SHARES. Notwithstanding anything to the contrary in this Agreement, the
Company shall not be entitled to deliver a Drawdown Notice and the Investor shall not be obligated to purchase any Shares at a
Closing unless each of the following conditions are satisfied:

 

		I.	a
                                         Registration Statement shall have been declared effective and shall remain effective
                                         and available for the resale of all the Registerable Securities at all times until the
                                         Closing with respect to the subject Drawdown Notice;

 

		II.	at
                                         all times during the period beginning on the related Drawdown Notice Date and ending
                                         on and including the related Closing Date, the Common Stock shall have been listed or
                                         quoted for trading on the Principal Market and shall not have been suspended from trading
                                         thereon for a period of two (2) consecutive Trading Days du ring the Open Period and
                                         the Company shall not have been notified of any pending or threatened proceeding or other
                                         action to suspend the trading of the Com mon Stock;

 

		III.	the
                                         Company has complied in all respects with its obligations and is otherwise not in breach
                                         of or in default under this Agreement or any other agreement executed in connection herewith
                                         which has not been cured prior to delivery of the Investor's Drawdown Notice Date;

 

		IV.	no
                                         injunction shall have been issued and remain in force, or action commenced by a govern
                                         mental authority which has not been stayed or abandoned, prohibiting the purchase or
                                         the issuance of the Securities; and

 

		V.	the
                                         issuance of the Securities will not violate any stockholder approval requirements of
                                         the Principal Market.

 

If
any of the events described in clauses (i) through (v) above occurs during a Pricing Period, then the Investor shall have no obligation
to purchase the Drawdown Amount of Common Stock set forth in the applicable Drawdown Notice.

    	4

    	 

    

2.4                
MECHANICS OF PURCHASE OF SHARES BY INVESTOR. Subject to the satisfaction of the conditions set forth in Sections 2.6, 7
and 8 of this Agreement, the closing of the purchase of the Securities by the Investor (a "Closing") shall occur on
the date (each a "Closing Date"), provided that, the Company has delivered to the Investor pursuant to this Agreement,
certificates representing the Securities to be issued to the Investor on such date and registered in the name of the Investor
(the "Certificate"), together with any supporting documentation reasonably necessary to allow the Certificate
to be cleared for trading prior to 12:00 pm Eastern Time on such date. If the Certificate is delivered for trading after 12:00
pm Eastern Time on a Trading Day, the Closing shall occur on the next Trading Day. If the Investor notifies the Company of a deficiency
in delivery within four business days of receiving such delivery, a Closing will be delayed by single consecutive Trading
Days until such deficiency is cured. If, after the expiration of the four business day period, the Investor is notified of a deficiency
in the delivery and/or the need of additional documentation to allow the Certificate to be cleared for trading, upon notification
from the Investor of the deficiency and/or necessary additional documentation, the Company agrees to use its commercially reasonable
efforts to ensure that such deficiency is cured and all additional documentation is delivered to the Investor. On the Closing
Date, the Investor shall deliver to the Company the Purchase Price to be paid for such Securities. In lieu of delivering physical
certificates representing the Securities and provided that the Company's transfer agent then is participating in The Depository
Trust Company ("DTC") Fast Automated Securities Transfer ("FAST") program, upon request of the
Investor, the Company shall use all commercially reasonable efforts to cause its transfer agent to electronically transmit the
Securities by crediting the account of the Investor's prime broker (as specified by the Investor within a time reasonably in advance
of the Investor's Drawdown Notice) with DTC through its Deposit Withdrawal Agent Commission ("DWAC") system.

 

2.5                
OVERALL LIMIT ON COMMON STOCK ISSUABLE. Notwithstanding anything contained herein to the contrary, if during the Open Period
the Company becomes listed on an exchange that limits the number of Shares that may be issued without stockholder approval, then
the number of Shares issuable by the Company and purchasable by the Investor, shall not exceed that number of the Shares that
may be issuable without stockholder approval (the "Maximum Common Stock Issuance"). If such issuance of Shares
could cause a delisting on the Principal Market, then the Maximum Common Stock Issuance shall first be approved by the Company's
stockholders in accordance with applicable law and the Certificate of Incorporation and By-laws of the Company. The parties understand
and agree that the Company's failure to seek or obtain such stockholder approval shall in no way adversely affect the validity
and due authorization of the issuance and sale of Securities or the Investor's obligation in accordance with the terms and conditions
hereof to purchase a number of Shares in the aggregate up to the Maximum Common Stock Issuance limitation, and that such approval
pertains only to the applicability of the Maximum Common Stock Issuance limitation provided in this Section 2.5.

 

2.6                
LIMITATION ON AMOUNT OF OWNERSHIP. Notwithstanding anything to the contrary in this Agreement, in no event shall the Investor
be entitled to purchase that number of Shares, which when added to the sum of the number of Shares beneficially owned (as such
term is defined under Section 13(d) and Rule 13d-3 of the 1934 Act), by the Investor, would exceed 4.99% of the number of Shares
outstanding on the Closing Date, as determined in accordance with Rule 13d-l(j) of the 1934 Act.

 

SECTION
III

INVESTOR'S
REPRESENTATIONS, WARRANTIES AND COVENANTS

 

The
Investor represents and warrants to the Company, and covenants, that:

 

3.1               
SOPHISTICATED INVESTOR. The Investor has, by reason of its business and financial experience, such knowledge, sophistication
and experience in financial and business matters and in making investment decisions of this type that it is capable of (a) evaluating
the merits and risks of an investment in the Securities and making an informed investment decision; (b) protecting its own interest;
and (c) bearing the economic risk of such investment for an indefinite period of time.

    	5

    	 

    

3.2               
AUTHORIZATION: ENFORCEMENT. This Agreement has been duly and validly authorized, executed and delivered on behalf of the
Investor and is a valid and binding agreement of the Investor enforceable against the Investor in accordance with its terms, subject
as to enforceability to general principles of equity and to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation
and other similar laws relating to, or affecting generally, the enforcement of applicable creditors' rights and remedies.

 

3.3               
SECTION 9 OF THE 1934 ACT. During the term of this Agreement, the Investor will comply with the provisions of Section 9
of the 1934 Act, and the rules promulgated thereunder, with respect to transactions involving the Common Stock. The Investor agrees
not to sell the Company's stock short or otherwise engage in hedging transactions regarding the stock, either directly or indirectly
through its affiliates, principals or advisors during the term of this Agreement.

 

3.4               
ACCREDITED INVESTOR. Investor is an "Accredited Investor" as that term is defined in Rule 501(a) of Regulation
D of the 1933 Act.

 

3.5               
NO CONFLICTS. The execution, delivery and performance of the Financing Agreements by the Investor and the consummation
by the Investor of the transactions contemplated hereby and thereby will not result in a violation of Partnership Agreement or
other organizational documents of the Investor.

 

3.6               
OPPORTUNITY TO DISCUSS. The Investor has received all materials relating to the Company's business, finance and operations
which it has requested. The Investor has had an opportunity to discuss the business, management and financial affairs of the Company
with the Company's management

 

3.7               
INVESTMENT PURPOSES. The Investor is purchasing the Securities for its own account for investment purposes and not with
a view towards distribution and agrees to resell or otherwise dispose of the Securities solely in accordance with the registration
provisions of the 1933 Act (or pursuant to an exemption from such registration provisions).

 

3.8               
NO REGISTRATION AS A DEALER. The Investor is not and will not be required to be registered as a "dealer" under
the 1934 Act, either as a result of its execution and performance of its obligations under this Agreement or otherwise.

 

3.9               
ORGANIZATION: GOOD STANDING. The Investor is a Delaware limited liability company, duly organized, validly existing and
in good standing in the States of Delaware and New York.

 

3.10           
TAX LIABILITIES. The Investor understands that it is liable for its own tax liabilities.

 

3.11           
REGULATION M. The Investor will comply with Regulation M under the 1934 Act, if applicable.

 

3.12           
NO SHORT SALES. No short sales shall be permitted by the Investor or its affiliates during the period commencing on the
Execution Date and continuing through the termination of this Agreement.

    	6

    	 

    

3.13           
ACKNOWLEDGEMENT OF RISK. The Investor agrees, acknowledges and understands that its investment in the Securities involves
a significant degree of risk, including, without limitation that: (a) the Company is a development stage business and may require
substantial funds; (b) an investment in the Company is highly speculative and only persons who can afford the loss of their entire
investment should consider investing in the Company and the Securities; (c) the Investor may not be able to liquidate its investment;
(d) transferability of the Securities is extremely limited; and (e) in the event of a disposition of the Securities, the Investor
can sustain the loss of its entire investment. The Investor has considered carefully and understands the risks associated with
an investment in the Securities.

 

3.14           
RELIANCE ON REPRESENTATIONS. The Investor agrees, acknowledges and understands that the Company and its counsel are entitled
to rely on the representations, warranties and covenants made by the Investor herein. The Investor further represents and warrants
that this Agreement does not contain any untrue statement or a material fact or omit any material fact concerning the Investor
and that the Investor Questionnaire accompanying this Agreement in the form attached hereto as Exhibit B does not contain
any untrue statement or a material fact or on it any material fact concerning the

Investor.

 

SECTION
IV

REPRESENTATIONS
AND WARRANTIES OF THE COMPANY

 

Except
as set forth in the Schedules attached hereto, or as disclosed in the Company's SEC Documents, the Company represents and warrants
to the Investor on the date of this Agreement that:

 

4.1               
ORGANIZATION AND QUALIFICATION. The Company is a corporation duly organized and validly existing in good standing under
the laws of the State of Nevada, and has the requisite corporate power and authorization to own its properties and to carry on
its business as now being conducted. Both the Company and the companies it owns or controls ("Subsidiaries")
are duly qualified to do business and are in good standing in every jurisdiction in which its ownership of property or the nature
of the business conducted by it makes such qualification necessary. As used in this Agreement, "Material Adverse Effect"
means a change, event, circumstance, effect or state of facts that has had or is reasonably likely to have, an ad verse effect
on the business, properties, assets, operations, results of operations, financial condition or prospects of the Company and its
Subsidiaries, if any, taken as a whole, or on the transactions contemplated hereby or by the agreements and instruments to be
entered into in connection herewith, or on the authority or ability of the Company to perform its obligations under the Financing
Agreements; provided, however, that none of the following, individually or in the aggregate, shall be taken into
account in determining whether a Material Adverse Effect has occurred or insofar as reasonably can be foreseen would likely occur:
(a) changes in conditions in the U.S. or global capital, credit or financial markets generally, including changes in the availability
of capital or currency exchange rates; (b) any effect of the announcement of, or the consummation of the transactions contemplated
by, this Agreement and the other Financing Agreements on the Company's relationships, contractual or otherwise, with customers,
suppliers, vendors, bank lenders, strategic venture partners or employees; and (c) the receipt of any notice that the Common Stock
may be ineligible to continue listing or quotation on the Trading Market, other than a final and non-appealable notice that the
listing or quotation of the Common Stock on the Trading Market shall be terminated on a date certain.

    	7

    	 

    

4.2               
AUTHORIZATION: INSTRUMENTS. ENFORCEMENT: COMPLIANCE WITH OTHER

 

                                
i.            The Company has the requisite corporate power and authority
to enter into and perform the Financing Agreements, and to issue the Securities in accordance with the terms hereof and thereof.

 

                               
ii.            The execution and delivery of the Financing Agreements by
the Company and the consummation by it of the transactions contemplated hereby and thereby, including without limitation the issuance
of the Securities pursuant to this Agreement, have been duly and validly authorized by the Company's Board of Directors and no
further consent or authorization is required by the Company, its Board of Directors, or its stockholders

 

                             
iii.            The Financing Agreements have been duly and validly executed
and delivered by the Company.

 

                             
iv.            The Financing Agreements constitute the valid and binding
obligations of the Company enforceable against the Company in accordance with their terms, except as such enforceability may be
limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar
laws relating to, or affecting generally, the enforcement of creditors' rights and remedies.

 

4.3              
CAPITALIZATION. As of the date hereof, the authorized capital stock of the Company consists of 37,503,000,000 shares of the Common
Stock of which, as of May 9, 2015, 1,732,515,540 shares are issued and outstanding, and 6,000,000 shares of preferred stock are
issued and outstanding. To the knowledge of the executive officers of the Company, all of such outstanding shares have been, or
upon issuance will be, validly issued and are fully paid and non-assessable.

 

Except
as disclosed in the Company's SEC Documents or as otherwise set forth on Schedule 4.3:

 

                                
i.            no shares of the Company's capital stock are subject to preemptive
rights or any other similar rights or any liens or encumbrances suffered or permitted by the Company;

 

                               
ii.            there are no outstanding debt securities;

 

                             
iii.            there are no outstanding shares of capital stock, options,
warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights
convertible into, any shares of capital stock of the Company or any of its Subsidiaries, or contracts, commitments, understandings
or arrangements by which the Company or any of its Subsidiaries is or may become bound to issue additional shares of capita l
stock of the Company or any of its Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any
character whatsoever relating to, or securities or rights convertible into, any shares of capital stock of the Company or any
of its Subsidiaries;

 

                             
iv.            there are no agreements or arrangements under which the
Company or any of its Subsidiaries is obligated to register the sale of any of their securities under the 1933 Act;

 

                              
v.            there are no outstanding securities of the Company or any
of its Subsidiaries which contain any redemption or similar provisions, and there are no contracts, commitments, understandings
or arrangements by which the Company or any of its Subsidiaries is or may become bound to redeem a security of the Company or
any of its Subsidiaries;

    	8

    	 

    

                             
vi.            there are no securities or instruments containing anti-dilution
or similar provisions that will be triggered by the issuance of the Securities as described in this Agreement;

 

                           
vii.            the Company does not have any stock appreciation rights
or "phantom stock" plans or agreements or any similar plan or agreement; and

 

                          
viii.            there is no dispute as to the classification of any shares
of the Company's capital stock.

 

The
Investor has had access through EDGAR to, true and correct copies of the Company's Second Amended and Restated Certificate of
Incorporation, as in effect on the date hereof (the "Certificate of Incorporation"), and the Company's Amended and Restated
By-laws, as in effect on the date hereof (the "By-laws"), and the terms of all securities convertible into or exercisable
for Common Stock and the material rights of the holders thereof in respect thereto.

 

4.4               
ISSUANCE OF SECURITIES. The Company has reserved 500,000,000 Shares for issuance pursuant to the Financing Agreements,
which have been duly authorized and reserved (subject to adjustment pursuant to the Company's covenant set forth in Section 5.5
below) pursuant to this Agreement. Upon issuance in accordance with this Agreement, the Securities, will be validly issued, fully
paid for and non-assessable and free from all taxes, liens and charges with respect to the issuance thereof. I n the event the
Company cannot register a sufficient number of Securities for issuance pursuant to this Agreement, the Company will use its commercially
reasonable efforts to authorize and reserve for issuance the number of Securities required for the Company to perform its obligations
hereunder as soon as reasonably practicable.

    	9

    	 

    

4.5               
NO CONFLICTS. The execution, delivery and performance of the Financing Agreements by the Company and the consummation by
the Company of the transactions contemplated hereby and thereby will not (i) result in a violation of the Certificate of Incorporation,
any Certificate of Designations, Preferences and Rights of any outstanding series of preferred stock of the Company or the By-laws;
or (ii) conflict with, or constitute a material default (or an event which with notice or lapse of time or both would become a
material default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any material
agreement, contract, indenture mortgage, indebtedness or instrument to which the Company or any of its Subsidiaries is a party,
or to the Company's knowledge result in a violation of any law, rule, regulation, order, judgment or decree (including United
States federal and state securities laws and regulations and the rules and regulations of the Principal Market or principal securities
exchange or trading market on which the Common Stock is traded or listed) applicable to the Company or any of its Subsidiaries
or by which any property or asset of the Company or any of its Subsidiaries is bound or affected. Neither the Company nor its
Subsidiaries is in violation of any term of, or in default under, the Certificate of Incorporation, any Certificate of Designations,
Preferences and Rights of any outstanding series of preferred stock of the Company or the By-laws or their organizational charter
or by-laws, respectively, or any contract, agreement, mortgage, indebtedness, indenture, instrument, judgment, decree or order
or any statute, rule or regulation applicable to the Company or its Subsidiaries, except for possible conflicts, defaults, terminations,
amendments, accelerations, cancellations and violations that would not individually or in the aggregate have or constitute a Material
Ad verse Effect. The business of the Company and its Subsidiaries is not being conducted, and shall not be conducted, in violation
of any law, statute, ordinance, rule, order or regulation of any govern mental authority or agency, regulatory or self-regulatory
agency, or court, except for possible violations the sanctions for which either individually or in the aggregate would not have
a Material Adverse Effect. Except as specifically contemplated by this Agreement and as required under the 1933 Act or any securities
laws of any states, to the Company's knowledge, the Company is not required to obtain any consent, authorization, permit or order
of, or make any filing or registration (with, any court, governmental authority or agency, regulatory or self-regulatory agency
or other third party in order for it to execute, deliver or perform any of its obligations under, or contemplated by, the Financing
Agreements in accordance with the terms hereof or thereof. Except for state blue sky filings and filings required as a result
of the transactions contemplated herein pursuant to the federal securities laws or regulation, all consents, authorizations, permits,
orders, filings and registrations which the Company is required to obtain pursuant to the preceding sentence have been obtained
or effected on or prior to the date hereof and are in full force and effect as of the date hereof. The Company and its Subsidiaries
are unaware of any facts or circumstances which might give rise to any of the foregoing. The Company is not, and will not be,
in violation of the listing requirements of the Principal Market as in effect on the date hereof and on each of the Closing Dates
and is not aware of any facts which would reasonably lead to delisting of the Common Stock by the Principal Market in the foreseeable
future.

    	10

    	 

    

4.6               
SEC DOCUMENTS: FINANCIAL STATEMENTS. As of the date hereof, the Company has filed all reports, schedules, forms, statements
and other documents required to be filed by it with the SEC pursuant to the reporting requirements of the 1 934 Act (all of the
foregoing filed prior to the date hereof and all exhibits included therein and financial statements and schedules thereto and
documents incorporated by reference therein, and amendments thereto, being hereinafter referred to as the "SEC Documents").
The Company has delivered to the Investor or its representatives, or they have had access through EDGAR to, true and complete
copies of the SEC Documents. As of their respective filing dates, the SEC Documents complied in all material respects with the
requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents,
and none of the SEC Documents, at the time they were filed with the SEC or the time they were amended, if amended, contained any
untrue statement of a material fact or omitted to state a 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. As of their respective dates, the
financial statements of the Company included in the SEC Documents complied as to form in all material respects with applicable
accounting requirements and the published rules and regulations of the SEC with respect thereto. Such financial statements have
been prepared in accordance with generally accepted accounting principles, by a firm that is a member of the Public Companies
Accounting Oversight Board ("PCAOB") consistently applied, during the periods involved (except (i) as may be
otherwise indicated in such financial statements or the notes thereto, or (ii) in the case of unaudited interim statements, to
the extent they may exclude footnotes or may be condensed or summary statements) and fairly present in al l material respects
the financial position of the Company as of the dates thereof and the results of its operations and cash flows for the periods
then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments). No other written information
provided by or on behalf of the Company to the Investor which is not included in the SEC Documents, including, without l imitation,
information referred to in Section 4.3 of this Agreement, contains any untrue statement of a material fact or omits to state any
material fact necessary to make the statements therein, in the light of the circumstance under which they are or were made, not
misleading. Neither the Company nor any of its Subsidiaries or any of their officers, directors, or agents have provided the Investor
with any material, nonpublic information which was not publicly disclosed prior to the date hereof and any material, nonpublic
information provided to the Investor by the Company or its Subsidiaries or any of their officers, directors, or agents prior to
any Closing Date shall be publicly disclosed by the Company prior to such Closing Date.

    	11

    	 

    

4.7               
ABSENCE OF CERTAIN CHANGES. Except as otherwise set forth in the SEC Documents, the Company does not intend to change the
business operations of the Company in any material way. The Company has not taken any steps, and does not currently expect to
take any steps, to seek protection pursuant to any bankruptcy law nor does the Company or its Subsidiaries have any knowledge
or reason to believe that its creditors intend to initiate involuntary bankruptcy proceedings.

 

4.8               
ABSENCE OF LITIGATION AND/OR REGULATORY PROCEEDINGS. Except as set forth in the SEC Documents, there is no material action,
sui t, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization
or body pending or, to the knowledge of the executive officers of Company or any of its Subsidiaries, threatened against or affecting
the Company, the Common Stock or any of the Company's Subsidiaries or any of the Company's or the Company's Subsidiaries' officers
or directors in their capacities as such.

 

4.9               
ACKNOWLEDGMENT REGARDING INVESTOR'S PURCHASE OF SHARES. The Company acknowledges and agrees that the Investor is acting
solely in the capacity of an arm's length purchaser with respect to the Financing Agreements and the transactions contemplated
hereby and thereby. The Company further acknowledges that the Investor is not acting as a financial advisor or fiduciary of the
Company (or in any similar capacity) with respect to the Financing Agreements and the transactions contemplated hereby and thereby
and any ad vice given by the Investor or any of its respective representatives or agents in connection with the Financing Agreements
and the transactions contemplated here by and thereby is merely incidental to the Investor's purchase of the Securities, and is
not being relied on by the Company. The Company further represents to the Investor that the Company's decision to enter into the
Financing Agreements has been based solely on the independent evaluation by the Company and its representatives.

 

4.10           
NO UNDISCLOSED EVENTS·LIABILITIES·DEVELOPMENTS OR CIRCUMSTANCES. Except as set forth in the SEC Documents,
as of the date hereof, no event, liability, development or circumstance has occurred or exists, or to the Company's knowledge
is contemplated to occur, with respect to the Company or its Subsidiaries or their respective business, properties, assets, prospects,
operations or financial condition, that would be required to be disclosed by the Company under applicable securities laws on a
registration statement filed with the SEC relating to an issuance and sale by the Company of its Common Stock and which has not
been publicly announced.

 

4.11           
EMPLOYEE RELATIONS. Neither the Company nor any of its Subsidiaries is involved in any union labor dispute nor, to the
knowledge of the Company or any of its Subsidiaries, is any such dispute threatened. Neither the Company nor any of its Subsidiaries
is a party to a collective bargaining agreement, and the Company and its Subsidiaries believe that relations with their employees
are good. No executive officer (as defined in Rule 50 I (f) of the 1933 Act) has notified the Company that such officer intends
to leave the Company's employ or otherwise terminate such officer's employment with the Company.

    	12

    	 

    

4.12           
INTELLECTUAL PROPERTY RIGHTS. The Company and its Subsidiaries own or possess adequate rights or licenses to use all trademarks,
trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights, inventions, licenses,
approvals, governmental authorizations, trade secrets and rights necessary to conduct their respective businesses as now conducted.
Except as set forth in the SEC Documents, none of the Company's trademarks, trade names, service marks, service mark registrations,
service names, patents, patent rights, copyrights, inventions, licenses, approvals, government authorizations, trade secrets or
other intellectual property rights necessary to conduct its business as now or as proposed to be conducted have expired or terminated,
or are expected to expire or terminate with in two (2) years from the date of this Agreement. Except as set forth in the SEC Documents,
the Company and its Subsidiaries do not have any knowledge of any infringement by the Company or its Subsidiaries of trademark,
trade name rights, patents, patent rights, copyrights, inventions, licenses, service names, service marks, service mark registrations,
trade secret or other similar rights of others, or of any such development of similar or identical trade secrets or technical
information by others and, except as set forth in the SEC Documents, there is no claim, action or proceeding being made or brought
against, or to the Company's knowledge, being threatened against, the Company or its Subsidiaries regarding trademark, trade name,
patents, patent rights, invention, copyright, license, service names, service marks, service mark registrations, trade secret
or other infringement; and the Company and its Subsidiaries are unaware of any facts or circumstances which might give rise to
any of the foregoing. The Company and its Subsidiaries have taken commercially reasonable security measures to protect the secrecy,
confidentiality and value of all of their intellectual properties.

 

4.13           
ENVIRONMENTAL LAWS. The Company and its Subsidiaries (i) are, to the knowledge of the executive officers and directors
of the Company and its Subsidiaries, in compliance with any and all applicable foreign, federal, state and local laws and regulations
relating to the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants
or contaminants ("Environmental Laws''); (ii) have, to the knowledge of the executive officers and directors of the Company,
received all perm its, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective
businesses; and (iii) are in compliance, to the knowledge of the executive officers and directors of the Company, with all terms
and conditions of any such permit, license or approval where, in each of the three (3) foregoing cases, the failure to so comply
would have, individually or in the aggregate, a Material Adverse Effect

 

4.14           
TITLE. The Company and its Subsidiaries have good and marketable title to all personal property owned by them which is
material to the business of the Company and its Subsidiaries, in each case free and clear of all liens, encumbrances and defects
except such as are described in the SEC Documents or such as do not materially affect the value of such property and do not interfere
with the use made and proposed to be made of such property by the Company or any of its Subsidiaries. Any real property and facilities
held under lease by the Company or any of its Subsidiaries are held by them under valid, subsisting and enforceable leases with
such exceptions as are not material and do not interfere with the use made and proposed to be made of such property and buildings
by the Company and its Subsidiaries.

 

4.15           
INSURANCE. The Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility against
such losses and risks and in such amounts as the executive officers of the Company reasonably believe to be prudent and customary
in the businesses in which the Company and its Subsidiaries are engaged. Neither the Company nor any of its Subsidiaries has been
refused any insurance coverage sought or applied for and neither the Company nor its Subsidiaries has any reason to believe that
it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from
similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect.

 

4.16           
REGULATORY PERMITS. The Company and its Subsidiaries have in full force and effect all ce1tificates, approvals, authorizations
and permits from the appropriate federal, state, local or foreign regulatory authorities and comparable foreign regulatory agencies,
necessary to own, lease or operate their respective properties and assets and conduct their respective businesses, and neither
the Company nor any such Subsidiary has received any notice of proceedings relating to the revocation or modification of any such
certificate, approval, authorization or permit, except for such certificates, approvals, authorizations or perm its which if not
obtained, or such revocations or modifications which would not have a Material Adverse Effect.

    	13

    	 

    

4.17           
INTERNAL ACCOUNTING CONTROLS. Except as otherwise set forth in the SEC Documents, the Company maintains a system of internal
accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management's
general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements
in conformity with generally accepted accounting principles by a firm with membership to the PCAOB and to maintain asset accountability;
(iii) access to assets is permitted only in accordance with management's general or specific authorization; and (iv) the recorded
accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect
to any differences. The Company's executive officers have determined that the Company's internal accounting controls were effective
as of the date of this Agreement as further described in the SEC Documents.

 

4.18           
NO MATERIALLY ADVERSE CONTRACTS, ETC. Neither the Company nor any of its Subsidiaries is subject to any charter, corporate
or other legal restriction, or any judgment, decree, order, rule or regulation which in the judgment of the Company's officers
has or is expected in the future to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries is a party
to any contract or agreement which in the judgment of the Company's officers has or is expected to have a Material Adverse Effect.

 

4.19           
TAX STATUS. The Company and each of its Subsidiaries has made or filed all United States federal and state income and all
other tax returns, reports and declarations required by any jurisdiction to which it is subject (unless and only to the extent
that the Company and each of its Subsidiaries has set aside on its books provisions reasonably adequate for the payment of all
unpaid and unreported taxes) and has paid all taxes and other govern mental assessments and charges that are material in amount,
shown or determined to be due on such returns, reports and declarations, except those being contested in good faith and has set
aside on its books provision reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such
returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority
of any jurisdiction, and the officers of the Company know of no basis for any such claim.

 

4.20           
CERTAIN TRANSACTIONS. Except as set forth in the SEC Documents filed at least ten (10) days prior to the date hereof and/or
except for arm 's length transactions pursuant to which the Company makes payments in the ordinary course of business upon terms
no less favorable than the Company could obtain from disinterested third parties and other than the grant of stock options disclosed
in the SEC Documents, none of the officers, directors, or employees of the Company is presently a party to any transaction with
the Company or any of its Subsidiaries (other than for services as employees, officers and directors), including any contract,
agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property
to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company,
any corporation, partnership, trust or other entity in which any officer, director, or any such employee has a substantial interest
or is an officer, director, trustee or partner, such that disclosure would be required in the SEC Documents.

    	14

    	 

    

4.21           
DILUTIVE EFFECT. The Company understands and acknowledges that the number of Shares issuable upon purchases pursuant to
this Agreement will increase in certain circumstances including, but not necessarily limited to, the circumstance wherein the
trading price of the Common Stock declines during the period between the Effective Date and the end of the Open Period. The Company's
executive officers and directors have studied and fully understand the nature of the transactions contemplated by this Agreement
and recognize that they have a potential dilutive effect on the stockholders of the Company. The Board of Directors of the Company
has concluded, in its good faith business judgment, and with full understanding of the implications, that such issuance is in
the best interests of the Company. The Company specifically acknowledges that, subject to such limitations as are expressly set
forth in the Financing Agreements, its obligation to issue Shares upon purchases pursuant to this Agreement is absolute and unconditional
regardless of the dilutive effect that such issuance may have on the ownership interests of other stockholders of the Company.

 

4.22           
NO GENERAL SOLICITATION. Neither the Company, nor any of its affiliates, nor any person acting on its behalf, has engaged
in any form of general solicitation or general advertising (within the meaning of Regulation D of the 1933 Act) in connection
with the offer or sale of the Common Stock to the Investor as set forth in this Agreement.

 

4.23           
NO BROKERS FINDERS OR FINANCIAL ADVISORY FEES OR COMMISSIONS. No brokers, finders or financial advisory fees or commissions
will be payable by the Company, its agents or Subsidiaries, with respect to the transactions contemplated by this Agreement.

 

SECTION
V 

COVENANTS
OF THE COMPANY

 

5.1                
REASONABLE EFFORTS. The Company shall use all commercially reasonable efforts to timely satisfy each of the conditions
set forth in Section 7 of this Agreement.

 

5.2                
REPORTING STATUS. Until one of the following occurs, the Company shall file all reports required to be fi led with the
SEC pursuant to the 1 934 Act, and the Company shall not terminate its status, or take an action or fail to take any action, which
would terminate its status as a reporting company under the 1934 Act: (i) this Agreement terminates pursuant to Section 8 and
the Investor has the right to sell all of the Securities without restrictions pursuant to Ru le 144 promulgated under the 1933
Act, or such other exemption, or (ii) the date on which the Investor has sold all the Securities and this Agreement has been terminated
pursuant to Section 8.

 

5.3                
USE OF PROCEEDS. The Company will use the proceeds from the sale of the Securities (excluding amounts paid by the Company
for fees as set forth in the Financing Agreements) for general corporate and working capital purposes and acquisitions or assets,
businesses or operations or for other purposes that the board of directors, in its good faith deem to be in the best interest
of the Company.

 

5.4                
FINANCIAL INFORMATION. During the Open Period, the Company agrees to make available to the Investor via EDGAR or other
electronic means the following documents and information on the forms set forth: (i) within five (5) Trading Days after the filing
thereof with the SEC, a copy of its Annual Reports on Form 10-K, its Quarterly Reports on Form 10-Q, any Current Reports on Form
8-K and any Registration Statements or amendments filed pursuant to the 1933 Act; (ii) copies of any notices and other information
made available or given to the stockholders of the Company generally, contemporaneously with the making available or giving thereof
to the stockholders; and (iii) within two (2) calendar days of filing or delivery thereof, copies of all documents filed with,
and all correspondence sent to, the Principal Market, any securities exchange or market, or the Financial Industry Regulatory
Association, unless such information is material nonpublic information.

    	15

    	 

    

5.5                
RESERVATION OF SHARES. The Company shall take all action necessary to at all times have authorized, and reserved the amount
of Shares, included in the Company's registration statement for issuance pursuant to the Financing Agreements. In the event that
the Company determines that it does not have a sufficient number of authorized Shares to reserve and keep available for issuance
as described in this Section 5.5, the Company shall use all commercially reasonable efforts to increase the number of authorized
Shares by seeking stockholder approval for the authorization of such additional Shares.

 

5.6                
LISTING. The Company shall promptly secure and maintain the listing of all of the Registerable Securities on the Principal
Market and each other national securities exchange and automated quotation system, if any, upon which Shares are then listed (subject
to official notice of issuance) and shall maintain, such listing of all Registerable Securities from time to time issuable under
the terms of the Financing Agreements. Neither the Company nor any of its Subsidiaries shall take any action which would be reasonably
expected to result in the delisting or suspension of the Common Stock on the Principal Market (excluding suspensions of not more
than two (2) Trading Days resulting from business announcements by the Company). The Company shall promptly provide to the Investor
copies of any notices it receives from the Principal Market regarding the continued eligibility of the Common Stock for listing
on such automated quotation system or securities exchange. The Company shall pay all fees and expenses in connection with satisfying
its obligations under this Section 5.6.

 

5.7                
FILING OF FORM 8-K. On or before the date which is four (4) Trading Days after the Execution Date, the Company shall file
a Current Report on Form 8-K with the SEC describing the terms of the transaction contemplated by the Financing Agreements in
the form required by the I 934 Act, if such filing is required.

 

5.8                
CORPORATE EXISTENCE. The Company shall use all commercially reasonable efforts to preserve and continue the corporate existence
of the Company.

 

5.9                
NOTICE OF CERTAIN EVENTS AFFECTING REGISTRATION: SUSPENSION OF RIGHT TO MAKE A DRAWDOWN. The Company shall promptly notify
the Investor upon the occurrence of any of the following events in respect of a Registration Statement or related prospectus in
respect of an offering of the Securities: (i) receipt of any request for additional information by the SEC or any other federal
or state governmental authority during the period of effectiveness of the Registration Statement for amendments or supplements
to the Registration Statement or related prospectus; (ii) the issuance by the SEC or any other federal or state governmental authority
of any stop order suspending the effectiveness of any Registration Statement or the initiation of any proceedings for that purpose;
(iii) receipt of any notification with respect to the suspension of the qualification or exemption from qualification of any of
the Securities for sale in any jurisdiction or the initiation or notice of any proceeding for such purpose; (iv) the happening
of any event that makes any statement made in such Registration Statement or related prospectus or any document incorporated or
deemed to be incorporated therein by reference untrue in any material respect or that requires the making of any changes in the
Registration Statement, related prospectus or documents so that, in the case of a Registration Statement, it will not contain
any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make
the statements therein not misleading, and that in the case of the related prospectus, it will not contain any untrue statement
of a material fact or om it to state any material fact required to be stated therein or necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading; and (v) the Company's reasonable determination that
a post-effective amendment or supplement to the Registration Statement would be appropriate, and the Company shall promptly make
available to Investor any such supplement or amendment to the related prospectus. The Company shall not deliver to Investor any
Drawdown Notice during the continuation of any of the foregoing events in this Section .10.

    	16

    	 

    

5.10             
TRANSFER AGENT. Upon effectiveness of the Registration Statement, and for so long as the Registration Statement is effective,
following delivery of a Drawdown Notice, the Company shall deliver instructions to its transfer agent to issue Shares to the Investor
that are covered for resale by the Registration Statement free of restrictive legends.

 

5.11             
OTC PROGRAM. If the Company is eligible for DTC's "FAST" program, it will, for a period of at least two (2) years
from the Execution Date, use its best effectors to employ as the transfer agent for the Securities a participant in the DTC's
Automated Securities Transfer Program that is eligible to deliver shares via the DWAC System.

 

5.12             
ACKNOWLEDGEMENT OF TERMS. The Company hereby represents and warrants to the Investor that: (i) it is voluntarily entering
into this Agreement of its own free will, (ii) it is not entering this Agreement under economic duress, (iii) the terms of this
Agreement are reasonable and fair to the Company, and (iv) the Company has had independent legal counsel of its own choosing review
this Agreement, advise the Company with respect to this Agreement, and represent the Company in connection with this Agreement.

 

SECTION
VI

CONDITIONS
OF THE COMPANY'S OBLIGATION TO SELL

 

The
obligation hereunder of the Company to issue and sell the Securities to the Investor is further subject to the satisfaction, at
or before each Closing Date, of each of the following conditions set forth below. These conditions are for the Company's sole
benefit and may be waived by the Company at any time in its sole discretion.

 

6.1              
The Investor shall have executed the Financing Agreements and delivered the same to the Company.

 

6.2              
The Investor shall have delivered to the Company the Purchase Price for the Securities being purchased by the Investor between
the end of the Pricing Period and the Closing Date via a Drawdown Settlement Sheet (hereto attached as Exhibit C). After receipt
of confirmation of delivery and clearance for trading of such Securities to the Investor, the Investor, by wire transfer of immediately
available funds pursuant to the wire instructions provided by the Company will disburse the funds constituting the Purchase Amount.
The Investor shall have no obligation to disburse the Purchase Amount until the Company delivers the Securities pursuant to a
Drawdown Notice.

 

6.3              
No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed
by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated
by this Agreement.

 

SECTION
VII

FURTHER
CONDITIONS OF THE INVESTOR'S OBLIGATION TO PURCHASE

 

The
obligation of the Investor hereunder to purchase Securities is subject to the satisfaction, on or before each Closing Date, of
each of the following conditions set forth below.

 

7.1                
The Company shall have executed the Financing Agreements and delivered the same to the Investor.

    	17

    	 

    

7.2                
The Common Stock shall be authorized for quotation on the Principal Market and trading in the Common Stock shall not have been
suspended by the Principal Market or the SEC, at any time beginning on the date hereof and through and including the respective
Closing Date (excluding suspensions of not more than two (2) Trading Days resulting from business announcements by the Company,
provided that such suspensions occur prior to the Company's delivery of the Drawdown Notice related to such Closing).

 

7.3                
The representations and warranties of the Company shall be true and correct in all material respects as of the date when made
and as of the applicable Closing Date as though made at that time and the Company shall have performed satisfied and complied
in all material respects with the covenants, agreements and conditions required by the Financing Agreements to be performed, satisfied
or complied with by the Company on or before such Closing Date, or shall have cured any such non performance or non-compliance
on or before such Closing Date. The Investor may request an update as of such Closing Date regarding the representation contained
in Section 4.3.

 

7.4                
The Company shall have executed and delivered to the Investor the certificates representing, or have executed electronic book-entry
transfer of, the Securities (in such denominations as the Investor shall request) being purchased by the Investor at such Closing.

 

7.5                
The Board of Directors of the Company shall have adopted resolutions consistent with Section 4.2(ii) (the "Resolutions")
and such Resolutions shall not have been amended or rescinded prior to such Closing Date.

 

7.6                
No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed
by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated
by this Agreement.

 

7.7                
The Registration Statement shall be effective on each Closing Date and no stop order suspending the effectiveness of the Registration
Statement shall be in effect or to the Company's knowledge shall be pending or threatened. Furthermore, on each Closing Date (I)
neither the Company nor the Investor shall have received notice that the SEC has issued or intends to issue a stop order with
respect to such Registration Statement or that the SEC otherwise has suspended or withdrawn the effectiveness of such Registration
Statement, either temporarily or permanently, or intends or has threatened to do so (unless the SEC's concerns have been addressed),
and (II) no other suspension of the use or withdrawal of the effectiveness of such Registration Statement or related prospectus
shall exist.

 

7.8                
At the time of each Closing, the Registration Statement (including information or documents incorporated by reference therein)
and any amendments or supplements thereto shall not contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein not misleading or which would require public disclosure
or an update supplement to the prospectus.

 

7.9                
If applicable, the stockholders of the Company shall have approved the issuance of any Shares in excess of the Maxim um Common
Stock Issuance in accordance with Section 2.5 or the Company shall have obtained appropriate approval pursuant to the requirements
of Nevada law and the Company's Certificate of Incorporation and By-laws.

 

7.10             
The conditions to such Closing set forth in Section 2.3 shall have been satisfied on or before such Closing Date.

    	18

    	 

    

7.11             
The Company shall have certified to the Investor the number of Shares of Common Stock outstanding when a Drawdown Notice is given
to the Investor. The Company's delivery of a Drawdown Notice to the Investor constitutes the Company's certification of the existence
of the necessary number of Shares reserved for issuance and that the representations contained herein are and remain true.

 

SECTION
VIII

TERMINATION

 

This
Agreement shall terminate upon any of the following events:

 

8.1               
when the Investor has purchased an aggregate of five hundred thousand shares of the Common Stock of the Company pursuant to this
Agreement; or

 

8.2               
on the date which is twenty four (24) months after the Effective Date; or

 

8.3               
at such time that the Registration Statement is no longer in effect, not including such periods as the effectiveness may be temporarily
suspended in order to amend or update the Registration Statement.

 

Any
and all Shares or penalties, if any, due under this Agreement shall be immediately payable and due upon termination of this Agreement.
Notwithstanding anything in this Agreement to the contrary, no termination of this Agreement by any party affect any rights of
any holder thereof,

 

SECTION
IX

SUSPENSION

 

This
Agreement shall be suspended upon any of the following events, and shall remain suspended until such event is rectified:

 

                                            
i.                       
The trading of the Common Stock is suspended by the SEC, the Principal Market or FIN RA for a period of two (2) consecutive Trading
Days during the Open Period; or

 

                                           
ii.                       
The Common Stock ceases to be registered under the 1934 Act or listed or traded on the Principal Market or the Registration Statement
is no longer effective (except as permitted hereunder). Immediately upon the occurrence of one of the above-described events,
the Company shall send written notice of such event to the Investor.

    	19

    	 

    

SECTION
X

INDEMNIFICATION

 

In
consideration of the parties mutual obligations set forth in the Financing Documents, each of the parties (in such capacity, an
"Indemnitior") shall defend, protect, indemnify and hold harmless the other and all of the other party's stockholders,
officers, directors, employees, counsel, and direct or indirect investors and any of the foregoing person's agents or other representatives
(including, without limitation, those retained in connection with the transactions contemplated by this Agreement) (collectively,
the "Indemnitees") from and against any and all actions, causes of action, suits, claims, losses, costs, penalties,
fees, liabilities and damages, and reasonable expenses in connection therewith (i1Tespective of whether any such Indemnitee is
a party to the action for which indemnification hereunder is sought), and including reasonable attorneys' fees and disbursements
(the "Indemnified Liabilities"), incurred by any Indemnitee as a result of, or arising out of, or relating to (I) any
misrepresentation or breach of any representation or warranty made by the Indemnitor or any other certificate, instrument or document
contemplated hereby or thereby; (II) any breach of any covenant, agreement or obligation of the Indemnitor contained in the Financing
Agreements or any other certificate, instrument or document contemplated hereby or thereby; or (Ill) any cause of action, suit
or claim brought or made against such Indemnitee by a third party and arising out of or resulting from the execution, delivery,
performance or enforcement of the Financing Agreements or any other certificate, instrument or document contemplated here by or
thereby, except insofar as any such m is representation, breach or any untrue statement, alleged untrue statement, omission or
alleged omission is made in reliance upon and i n conformity with information furnished to Indemnitor which is specifically intended
for use in the preparation of any such Registration Statement, preliminary prospectus, prospectus or amendments to the prospectus.
To the extent that the foregoing undertaking by the Indemnitor may be unenforceable for any reason, the Indemnitor shall make
the maxi m um contribution to the payment and satisfaction of each of the Indemnified Liabilities which is permissible under applicable
law. The indemnity provisions contained herein shall be in addition to any cause of action or similar rights Indemnitor may have,
and any liabilities the Indemnitor or the Indemnitees may be subject to.

 

SECTION
XI

MISCELLANEOUS

 

11.1           
LAW GOVERNING THIS AGREEMENT. This Agreement shall be governed by and construed in accordance with the laws of the State
of New York without regard to principles of conflicts of laws. Any action brought by either party against the other concerning
the transactions contemplated by this Agreement shall be brought only in the state courts of New York or in the federal courts
located in the state and county of New York. The parties to this Agreement hereby irrevocably waive any objection to jurisdiction
and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based
upon forum non conveniens. The parties executing this Agreement and other agreements referred to herein or delivered
in connection herewith on behalf of the Company agree to submit to herein person am jurisdiction of such courts and hereby irrevocably
waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney's fees
and costs. In the event that any provision of this Agreement or any other agreement delivered in connection herewith is invalid
or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that
it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may
prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement.
Each party hereby it irrevocably waives personal service of process and consents to process being served in any suit, action or
proceeding in connection with this Agreement or any other Financing Agreements by mailing a copy thereof via registered or certified
mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement
and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

    	20

    	 

    

11.2           
LEGAL FEES: AND MISCELLANEOUS FEES. Except as otherwise set forth in the Financing Agreements, each party shall pay the
fees and expenses of its advisers, counsel, the accountants and other experts, if any, and all other expenses incurred by such
party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. Any attorneys' fees and
expenses incurred by either the Company or the Investor in connection with the preparation, negotiation, execution and delivery
of any amendments to this Agreement or relating to the enforcement of the rights of any party, after the occurrence of any breach
of the terms of this Agreement by another party or any default by another party in respect of the transactions contemplated hereunder,
shall be paid on demand by the party which breached the Agreement and/or defaulted, as the case may be. All legal expenses, other
than underwriting discounts and commissions and other than as set forth in this Agreement, incurred in connection with registrations
including comments, filings or qualifications, including, without limitation, all registration, listing and qualifications fees,
printing fees, and the legal fees of Investor's counsel of $3,750, shall be paid by the Company from each the first and the second
Drawdown's totaling $7.500. The Company shall pay all stamp and other taxes and duties levied in connection with the issuance
of any Securities.

 

11.3           
COUNTERPARTS. 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 transmission, PDF, electronic signature or other similar
electronic means with the same force and effect as if such signature page were an original thereof.

 

11.4           
HEADINGS: SINGULAR/PLURAL. The headings of this Agreement are for convenience of reference and shall not form part of,
or affect the interpretation of, this Agreement. Whenever required by the context of this Agreement, the singular shall include
the plural and masculine shall include the feminine.

 

11.5           
SEVERABILITY. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity
or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or
the validity or enforceability of any provision of this Agreement in any other jurisdiction.

 

11.6           
ENTIRE AGREEMENT: AMENDMENTS. This Agreement is the FINAL AGREEMENT between the Company and the Investor with respect to
the terms and conditions set forth herein, and, the terms of this Agreement may not be contradicted by evidence of prior, contemporaneous,
or subsequent oral agreements of the parties. No provision of this Agreement may be amended other than by an instrument in writing
signed by the Company and the Investor, and no provision hereof may be waived other than by an instrument in writing signed by
the party against whom enforcement is sought. The execution and delivery of the Financing Agreements shall not alter the force
and effect of any other agreements between the parties, and the obligations under those agreements.

    	21

    	 

    

11.7           
NOTICES. Any notices or other communications required or permitted to be given under the terms of this Agreement must be in writing
and will be deemed to have been delivered (I) upon receipt, when delivered personally; (II) upon receipt, when sent by facsimile
(provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or
(Ill) one ( I ) day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to
the party to receive the same. The addresses and facsimile numbers for such communications shall be:

 

I
f to the Company:

Rich
Pharmaceuticals, Inc.

9595
Wilshire Blvd., Suite 900

Beverly
Hills, CA 90212

Attn:
Ben Chang

Email:

 

With
a copy to:

Steven
J. Davis, Esq.

6118
Pasco Delicias

Rancho
Santa Fe, California 92067

Facsimile:

Email:

 

If
to the Investor:

LG
Capital Funding, LLC

1218
Union Street, Suite #2,

Brooklyn,
NY I 1225

Attn:
Joseph Lerman

Email:

 

With
a copy to:

New
Venture Attorneys, PC

101
Church Street, Suite 22

Los
Gatos, CA 95030

Attn:
Tomer Tai, Esq.

Facsimile:

Email:

 

Each
party shall provide five (5) days prior written notice to the other party of any change in address or facsimile number.

    	22

    	 

    

11.8           
NO ASSIGNMENT. This Agreement may not be assigned.

 

11.9           
NO THIRD PARTY BENEFICIARIES. This Agreement is intended for the benefit of the parties hereto and is not for the benefit
of, nor may any provision hereof be enforced by, any other person, except that the Company acknowledges that the rights of the
Investor may be enforced by its general partner.

 

11.10        
SURVIVAL. The representations and warranties of the Company and the Investor contained i n Sections 3 and 4, the agreements
and covenants set forth in Sections 5 and 6, and the indemnification provisions set forth in Section I 0, shall survive until
the termination of the Agreement.

 

11.11        
PUBLICITY. The Company and the Investor shall consult with each other in issuing any press releases or otherwise making
public statements with respect to the transactions contemplated hereby and no party shall issue any such press release or otherwise
make any such public statement without the prior consent of the other party, which consent shall not be unreasonably withheld
or delayed, except that no prior consent shall be required if such disclosure is required by law, in which such case the disclosing
party shall provide the other party with prior notice of such public statement. Notwithstanding the foregoing, the Company shall
not publicly disclose the name of the Investor without the prior consent of the Investor, except to the extent required by law.
The Investor acknowledges that this Agreement and all or part of the Financing Agreements may be deemed to be "material contracts"
as that term is defined by Item 60!(b)(1 0) of Regulation S-K, and that the Company may therefore be required to fi le such documents
as exhibits to reports or registration statements filed under the 1933 Act or the 1934 Act. The Investor further agrees that the
status of such documents and materials as material contracts shall be determined solely by the Company, in consultation with its
counsel.

 

11.12        
FURTHER ASSURANCES. Each party shall do and perform, or cause to be done and performed, all such further acts and things,
and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably
request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions
contemplated hereby.

 

11.13        
NO STRICT CONSTRUCTION. The language used in this Agreement will be deemed to be the language chosen by the parties to
express their mutual intent, and no rules of strict construction will be applied against any party, as the parties mutually agree
that each has had a full and fair opportunity to review this Agreement and seek the advice of counsel on it.

 

11.14        
REMEDIES. The Investor shall have all rights and remedies set forth in this Agreement and all of the rights which the Investor
has by law. Any person having any rights under any provision of this Agreement shall be entitled to enforce such rights specifically
(without posting a bond or other security), to recover damages by reason of any default or breach of any provision of this Agreement,
including the recovery of reasonable attorney’s fees and costs, and to exercise al l other rights granted by law. NEITHER
PARTY NOR ANY OF ITS AFFILIATES SHALL BE LIABLE IN CONTRACT, TORT, NEGLIGENCE, BREACH OF STATUTORY DUTY OR OTHERWISE FOR ANY SPECIAL,
CONSEQUENTIAL, INDIRECT OR PUNITIVE DAMAGES OR FOR LOSS OF PROFITS SUFFERED BY THE OTHER PARTY.

 

11.15        
PAYMENT SET ASIDE. To the extent that the Company makes a payment or payments to the Investor hereunder or the Investor enforces
or exercises its rights hereunder or thereunder, and such payment or payments or the proceeds of such enforcement or exercise
or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged
by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other person under
any law (including, without l imitation, any bankruptcy Jaw, state or federal Jaw, common Jaw or equitable cause of action), then
to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived and
continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

 

11.16        
PRICING OF COMMON STOCK. For purposes of this Agreement, the bid price of the Common Stock shall be as reported on Quotestream.

    	23

    	 

    

SECTION
XII

NON-DISCLOSURE
OF NON-PUBLIC INFORMATION

 

The
Company shall not disclose non-public information to the Investor, or to the investor's advisors or representatives.

 

Nothing
herein shall require the Company to disclose non-public information to the Investor or its advisors or representatives, and the
Company represents that it does not disseminate non-public information to any investors who purchase stock in the Company in a
public offering, to money managers or to securities analysts, provided, however, that notwithstanding anything herein to the contrary,
the Company will, as herein above provided, immediately notify the advisors and representatives of the Investor and, if any, underwriters,
of any event or the existence of any circumstance (without any obligation to disclose the specific event or circumstance) of which
it becomes aware, constituting nonpublic information (whether or not requested of the Company specifically or generally during
the course of due diligence by such persons or entities), which, if not disclosed in the prospectus included in the Registration
Statement would cause such prospectus to include a material misstatement or to om it a material fact required to be stated therein
in order to make the statements, therein, in light of the circumstances i n which they were made, not misleading. Nothing contained
in this Section 1 2 shall be construed to mean that such persons or entities other than the Investor (without the written consent
of the Investor prior to disclosure of such information) may not obtain non-public information in the course of conducting due
diligence in accordance with the terms of this Agreement and nothing herein shall prevent any such persons or entities from notifying
the Company of their opinion that based on such due diligence by such persons or entities, that the Registration Statement contains
an untrue statement of material fact or omits a material fact required to be stated in the Registration Statement or necessary
to make the statements contained therein, in light of the circumstances in which they were made, not misleading.

 

SECTION
XIII

ACKNOWLEDGEMENTS
OF THE PARTIES

 

Notwithstanding
anything in this Agreement to the contrary, the parties hereto hereby acknowledge and agree to the following: (i) the Investor
makes no representations or covenants that it will not engage in trading in the securities of the Company, other than the Investor
will not short or engage in hedging transactions with regard to, the Company's Common Stock at any time during this Agreement;
(ii) the Company shall, by 8:30 a.m. EST on the fourth Trading Day following the date hereof, file a current report on From 8-K
disclosing the material terms of the transactions contemplated hereby and in the other Financing Agreements; (iii) the Company
has not and shall not provide material non-public information to the Investor unless prior thereto the Investor shall have executed
a written agreement regarding the confidentiality and use of such information; and (iv) the Company understands and confirms that
the Investor will be relying on the acknowledgements set forth in clauses (i) through (iii) above if the Investor effects any
transactions in the securities of the Company.

 

[Signature
page follows]

    	24

    	 

    

Your
signature on this signature page evidences your agreement to be bound by the terms and conditions of this Agreement as of the
date first written above. The undersigned signatory hereby certifies that he has read and understands this Agreement, and the
representations made by the undersigned in this Agreement are true and accurate, and agrees to be bound by its terms.

 

RICH
PHACEUTICALS, INC.

 

By:
/s/ Ben Chang

Name:
Ben Chang

Title:
Chief Executive Officer

 

 

LG
CAPITA/ZING, LLC

 

By:
/s/ Joseph Lerman

Name:
Joseph Lerman

Title:
Manager

 

 

 

[SIGNATURE
PAGE OF INVESTMENT AGREEMENT]

    	25

    	 

    

 

LIST
OF EXHIBITS

 

EXHIBIT
A Form of Drawdown Notice

EXHIBIT
B Investor Questionnaire

EXHIBIT
CDrawdown Settlement Sheet

    	26

    	 

    

EXHIBIT
A

FORM
OF DRAWDOWN NOTICE

 

Date:

 

RE:
Drawdown Notice N umber

 

Dear------

 

This
is to inform you that as of today, Rich Pharmaceuticals, Inc., a Nevada corporation (the "Company"), hereby elects to
exercise its right pursuant to the Investment Agreement to require LG Capital Funding, LLC to purchase shares of its common stock.
The Company hereby certifies that:

 

The
amount of this Drawdown is $-----

 

The
Pricing Period runs from-------until-------

 

The
Purchase Price is: $-------

 

The
n umber of Drawdown Shares Due:

The
ctment number of shares of common stock issued and outstanding is:

 

The
number of shares currently available for issuance on the Registration Statement on Form S-1 1s:

 

Regards,

 

Rich
Pharmaceuticals, Inc.

 

 

By:

Name:

Title:

    	27

    	 

    

EXHIBIT
B

 

Form
of Investor Questionnaire

    	28

    	 

    

EXHIBIT
C

 

DRAWDOWN
SETTLEMENT SHEET

 

Date:

 

Dear

Pursuant
to the Drawdown given by Rich Pharmaceuticals, Inc. (the "Company") to LG Capital Funding, LLC (the "Investor")
on _____201_, we are now submitting the amount of common shares for you to issue to the Investor.

 

Please
have a certificate bearing no restrictive legend totaling _______shares issued to Investor immediately and send via its Deposit
Withdrawal Agent Commission ("DWAC") system to the following account:

 

[INSERT]

 

If
not DWAC eligible, please send Fed Ex Priority Overnight to:

 

[INSERT
ADDRESS]

 

Once
these shares are received by us, we will have the funds wired to the Company.

 

Regards,

LG
CAPITAL FUNDING, LLC

  

By:

Name:

Title:

    	29

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