Document:

Exhibit
10.01

 

SECURITIES
PURCHASE AGREEMENT

 

This Securities Purchase
Agreement (this “Agreement”) is dated as of May 12, 2016, between Neuralstem, Inc., a Delaware corporation (the
“Company”), and each purchaser identified on the signature pages hereto (each, including its successors and
assigns, a “Purchaser” and collectively, the “Purchasers”).

 

WHEREAS, subject to
the terms and conditions set forth in this Agreement and pursuant to Section 4(2) of the Securities Act of 1933, as amended (the
“Securities Act”), and Rule 506 promulgated thereunder, the Company desires to issue and sell to each Purchaser,
and each Purchaser, severally and not jointly, desires to purchase from the Company, securities of the Company as more fully described
in this Agreement.

 

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

 

ARTICLE I.

DEFINITIONS

 

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

 

“Acquiring
Person” shall have the meaning ascribed to such term in Section 4.4.

 

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

 

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

 

“Business
Day” means any day except Saturday, Sunday, any day which is a federal legal holiday in the United States or any day
on which banking institutions in the State of New York are authorized or required by law or other governmental action to close
and, upon the Company becoming listed or quoted on a Trading Market, except any day that the Common Stock is not trading on the
Trading Market.

 

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

 

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

 

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“Closing
Statement” means the Closing Statement in the form on Annex A attached hereto.

 

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

 

“Common
Stock” means the common stock of the Company, par value $0.01 per share, and any other class of securities into which
such securities may hereafter be reclassified or changed into.

 

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

 

“Company
Counsel” means the Silvestre Law Group, P.C., with offices located at 31200 Via Colinas, Suite 200, Westlake Village,
CA 91362.

 

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

 

“Discussion
Time” shall have the mean ascribed to such term in Section 4.9.

 

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

 

“Exempt
Issuance” means (1) the issuance of Common Stock upon the conversion or exercise of Common Stock Equivalents outstanding
as of the date of this Agreement, (2) securities issued or issuable to a director, executive officer or consultant in a registration
statement on Form S-8 or (3) the issuance of shares of Common Stock or notes convertible into or exercisable or exchangeable for
shares of Common Stock to third-party consultants as consideration for bona fide services, which issuances in this clause (3) are
approved by a majority of the independent members of the Company’s Board of Directors and shall not exceed an aggregate of
150,000 shares so issued or issuable.

 

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

 

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

 

“Knowledge
of the Company” means the actual knowledge of the Company as opposed to implied or ascribed knowledge.

 

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

 

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

 

“Market
Price” means: (a) the closing bid price reported on the Company’s Trading Market on the Trading Day immediately
preceding any applicable measuring date, (b) if the Company’s Common Shares are not then listed on a Trading Market, the
price offered by any acquirer in a Fundamental Transaction, or (b) in all other cases, the fair market value of a share of
Common Stock as determined by the Company’s Board of Directors.

 

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

 

“Per
Share Purchase Price” equals $0.40, subject to adjustment for reverse and forward stock splits, stock dividends, and
stock combinations of the Common Stock that occur after the date of this Agreement.

 

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

 

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

 

“Purchaser
Party” shall have the meaning ascribed to such term in Section 4.7.

 

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

 

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

 

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

 

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

 

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

 

“Shares”
means the shares of Common Stock issued or issuable to each Purchaser pursuant to this Agreement.

 

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

 

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

 

“Subsidiary”
means any subsidiary of the Company as set forth on Schedule 3.1(a), and shall, where applicable, also include any direct
or indirect subsidiary of the Company formed or acquired after the date hereof.

 

“Trading
Market” means the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date
in question: the American Stock Exchange, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market,
the New York Stock Exchange, the OTC Bulletin Board, or the Pink Sheets.

 

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

 

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

 

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

 

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

 

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ARTICLE II.

PURCHASE AND SALE

 

2.1           Closing.
On each Closing Date, upon the terms and subject to the conditions set forth herein, the Company agrees to sell, and the Purchasers,
severally and not jointly, agree to purchase, up to an aggregate of $1,100,000 of Shares and Warrants in all Closings of Shares
and Warrants. Each Purchaser shall deliver to the Company funds, via wire transfer, cash or a certified check immediately available
funds, equal to its Subscription Amount on or before the applicable Closing Date. At the Closing the Company shall deliver to each
Purchaser its respective Shares and a Warrant as determined pursuant to Section 2.2(a), and the Company and each Purchaser shall
deliver the other items set forth in Section 2.2 deliverable at the Closing. Upon satisfaction of the covenants and conditions
set forth in Sections 2.2 and 2.3, each Closing shall occur at the offices of Company Counsel or such other locations as the parties
shall mutually agree.

 

2.2           Deliveries.

 

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

 

(i)          this
Agreement duly executed by the Company;

 

(ii)         a
copy of the irrevocable instructions to the Transfer Agent instructing the Transfer Agent to deliver, on an expedited basis, a
certificate evidencing a number of Shares equal to such Purchaser’s Subscription Amount divided by the Per Share Purchase
Price, registered in the name of such Purchaser;

 

(iii)        a
Warrant registered in the name of such Purchaser to purchase up to a number of shares of Common Stock equal to 100% of such Purchaser’s
Shares, with an exercise price per share equal to $0.40, subject to adjustment therein (such Warrant certificate may be delivered
within ten (10) Trading Days of the Closing Date; and

 

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

 

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

 

(ii)         Such
Purchaser’s Subscription Amount.

 

2.3           Closing
Conditions. 

 

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

 

(i)          the
accuracy in all material respects on the applicable Closing Date of the representations and warranties of the Purchasers contained
herein;

 

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

 

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

 

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

 

(i)          the
accuracy in all material respects when made on each Closing Date of the representations and warranties of the Company contained
herein;

 

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

 

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

 

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

 

ARTICLE III.

REPRESENTATIONS AND WARRANTIES

 

3.1           Representations
and Warranties of the Company. Except as set forth in the Disclosure Schedules or in the SEC Reports (which information contained
in the SEC Reports shall be deemed fully disclosed to Purchaser) which information contained in the Disclosure Schedules and SEC
Reports shall be deemed a part hereof and shall qualify and modify any representation or warranty contained herein, the Company
hereby makes the following representations and warranties to each Purchaser:

 

(a)          Subsidiaries.
All of the direct and indirect subsidiaries of the Company are set forth on Schedule 3.1(a). The Company owns, directly
or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any Liens, and all of the
issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free
of preemptive and similar rights to subscribe for or purchase securities. If the Company has no subsidiaries, then all other references
to the Subsidiaries or any of them in the Transaction Documents shall be disregarded.

 

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

 

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

 

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

 

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(e)          Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order with, any court or
other federal, state, local or other governmental authority or other Person in connection with the execution, delivery and performance
by the Company of the Transaction Documents, other than: (i) application(s), if any, to each applicable Trading Market for the
listing of the Securities for trading thereon in the time and manner required thereby and (ii) the filing of Form D with the Commission
and such filings as are required to be made under applicable state securities laws (collectively, the “Required Approvals”).

 

(f)          Issuance
of the Securities. The Securities are duly authorized and, when issued and paid for in accordance with the applicable Transaction
Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company other
than restrictions on transfer provided for in the Transaction Documents. The Warrant Shares, when issued in accordance with the
terms of the Transaction Documents, will be validly issued, fully paid and nonassessable, free and clear of all Liens imposed by
the Company other than restrictions on transfer provided for in the Transaction Documents. The Company has reserved from its duly
authorized capital stock the maximum number of shares of Common Stock issuable pursuant to this Agreement and the Warrants.

 

(g)          Capitalization.
Except as set forth on Schedule 3.1(g), the capitalization of the Company immediately prior to each Closing is as set forth
in the SEC Reports. All of the outstanding shares of capital stock of the Company are validly issued, fully paid and nonassessable,
have been issued in compliance with all federal and state securities laws, and none of such outstanding shares was issued in violation
of any preemptive rights or similar rights to subscribe for or purchase securities. No further approval or authorization of any
stockholder, the Board of Directors or others is required for the issuance and sale of the Securities.

 

(h)          SEC
Reports; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents required
to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof,
for the two years preceding the date hereof (or such shorter period as the Company was required by law or regulation to file such
material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, as well as
all registration statements filed by the Company with the SEC, are collectively referred to herein as the “SEC Reports”).
As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and
the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading. The financial statements of the Company included in the SEC Reports
comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect
thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with United States generally
accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”), except as
may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may
not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company and
its consolidated subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then
ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.

 

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(i)          Material
Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial statements included
within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the date hereof: (i) the Company
has not altered its method of accounting, (ii) the Company has not declared or made any dividend or distribution of cash or other
property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock
and (iii) the Company has not issued any equity securities to any officer, director or Affiliate, except pursuant to the Company’s
existing compensation plans or agreements.

 

(j)          Title
to Assets. Except as set forth in the SEC Reports, the Company and the Subsidiaries have good and marketable title in fee simple
to all real property owned by them and good and marketable title in all personal property owned by them that is material to the
business of the Company and the Subsidiaries, in each case free and clear of all Liens, except for Liens as do not materially affect
the value of such property and do not materially interfere with the use made and proposed to be made of such property by the Company
and the Subsidiaries and Liens for the payment of federal, state or other taxes, the payment of which is neither delinquent nor
subject to penalties, except in each case as could not reasonably be expected to result in a Material Adverse Effect. Any real
property and facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable
leases with which the Company and the Subsidiaries are in compliance.

 

(k)          Patents
and Trademarks. Except as set forth in the SEC Reports, the Company and the Subsidiaries have, or have rights to use, all patents,
patent applications, trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses
and other intellectual property rights and similar rights as necessary or material for use in connection with their respective
businesses and which the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual Property
Rights”). Neither the Company nor any Subsidiary has received a notice (written or otherwise) that any of the Intellectual
Property Rights used by the Company or any Subsidiary violates or infringes upon the rights of any Person. To the knowledge of
the Company, all such Intellectual Property Rights are enforceable and there is no existing infringement by another Person of any
of the Intellectual Property Rights. The Company and its Subsidiaries have taken reasonable security measures to protect the secrecy,
confidentiality and value of all of their intellectual properties, except where failure to do so could not, individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect.

 

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(l)          Certain
Fees. Except as set forth on Schedule 3.1(l), no brokerage or finder’s fees or commissions are or will be payable
by the Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person
with respect to the transactions contemplated by the Transaction Documents. The Purchasers shall have no obligation with respect
to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section
that may be due in connection with the transactions contemplated by the Transaction Documents.

 

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

 

(n)          Tax
Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a
Material Adverse Effect, the Company and each Subsidiary has filed all necessary federal, state and foreign income and franchise
tax returns and has paid or accrued all taxes shown as due thereon, and the Company has no knowledge of a tax deficiency which
has been asserted or threatened against the Company or any Subsidiary.

 

(o)          No
General Solicitation. Neither the Company nor any person acting on behalf of the Company has offered or sold any of the Securities
by any form of general solicitation or general advertising. The Company has offered the Securities for sale only to the Purchasers
and certain other “accredited investors” within the meaning of Rule 501 under the Securities Act.

 

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(p)          Foreign
Corrupt Practices. To the knowledge of the Company, neither the Company nor any agent or other person acting on behalf of the
Company, has: (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses
related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government officials or
employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any
contribution made by the Company (or made by any person acting on its behalf of which the Company is aware) which is in violation
of law or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended.

 

(q)          Accountants.
The Company’s accounting firm is Stegman & Company LLC. To the knowledge of the Company, such accounting firm is a registered
public accounting firm as required by the Exchange Act.

 

(r)          No
Disagreements with Accountants and Lawyers. There are no disagreements
of any kind presently existing, or reasonably anticipated by the Company to arise, between the Company and the accountants and
lawyers formerly or presently employed by the Company which could affect the Company’s ability to perform any of its obligations
under any of the Transaction Documents, and the Company is current with respect to any fees owed to its accountants and lawyers.

 

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

 

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

 

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

 

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(b)          Own
Account. Such Purchaser understands that the Securities are “restricted securities” and have not been registered
under the Securities Act or any applicable state securities law and is acquiring the Securities as principal for its own account
and not with a view to or for distributing or reselling such Securities or any part thereof in violation of the Securities Act
or any applicable state securities law, has no present intention of distributing any of such Securities in violation of the Securities
Act or any applicable state securities law and has no direct or indirect arrangement or understandings with any other persons to
distribute or regarding the distribution of such Securities (this representation and warranty not limiting such Purchaser’s
right to sell the Securities pursuant to any registration statement or otherwise in compliance with applicable federal and state
securities laws) in violation of the Securities Act or any applicable state securities law. Such Purchaser is acquiring the Securities
hereunder in the ordinary course of its business.

 

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

 

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

 

(e)          General
Solicitation. Such Purchaser is not purchasing the Securities as a result of any advertisement, article, notice or other communication
regarding the Securities published in any newspaper, magazine or similar media or broadcast over television or radio or presented
at any seminar or any other general solicitation or general advertisement.

 

    	 	12	 

     

    

 

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

 

(g)          Acknowledgment
Regarding Purchaser’s Purchase of Securities. The Purchaser acknowledges and agrees that it is acting solely in the capacity
of an arm's length purchaser with respect to the Transaction Documents and the transactions contemplated thereby. The Purchaser
further acknowledges that it and its agents or representatives have had access to the Company’s executive officers for the
purpose of asking questions which Purchaser deems necessary or advisable and that such questions have been answered to the satisfaction
of Purchaser. The Purchaser’s decision to enter into this Agreement and the Transaction Documents has been based solely on
Purchaser’s independent evaluation of the transaction contemplated hereby. Purchaser further acknowledge that except as specifically
contained in Section 3.1 of this Agreement, neither the Company nor its employees, officers or representatives have made any representations
or warranties with regard to the Company, its securities or prospects.

 

(h)          SEC
Reports. Such Purchaser acknowledges that they have reviewed all the Company’s SEC Reports filed during the preceding
12 months, including any risk factors contained therein, and is aware that an investment in the Company carries a high degree of
risk and that the Purchaser may lose its entire investment.

 

ARTICLE IV.

OTHER AGREEMENTS OF THE PARTIES

 

4.1           Transfer
Restrictions.

 

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

 

    	 	13	 

     

    

 

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

 

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

 

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

 

    	 	14	 

     

    

 

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

 

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

 

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

 

4.3           Securities
Laws Disclosure; Publicity. The Company shall not publicly disclose the name of any Purchaser, or include the name of any Purchaser
in any filing with the Commission or any regulatory agency or Trading Market, without the prior written consent of such Purchaser,
except (a) as required by federal securities law in connection with (i) any registration statements and (ii) the filing of final
Transaction Documents (including signature pages thereto) with the Commission and (b) to the extent such disclosure is required
by law or Trading Market regulations, in which case the Company shall provide the Purchasers with prior notice of such disclosure
permitted under this clause (b).

 

    	 	15	 

     

    

 

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

 

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

 

4.6           Use
of Proceeds. The Company shall use the net proceeds from the sale of the Securities hereunder for general working capital purposes.

 

4.7           Indemnification
of Purchasers. Subject to the provisions of this Section 4.7, the Company will indemnify and hold each Purchaser and its directors,
officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent role of a
Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser (within
the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders,
agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles
notwithstanding a lack of such title or any other title) of such controlling persons (each, a “Purchaser Party”)
harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments,
amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such Purchaser
Party may suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants or
agreements made by the Company in this Agreement or in the other Transaction Documents or (b) any action instituted against a Purchaser
in any capacity, or any of them or their respective Affiliates, by any stockholder of the Company who is not an Affiliate of such
Purchaser, with respect to any of the transactions contemplated by the Transaction Documents (unless such action is based upon
a breach of such Purchaser’s representations, warranties or covenants under the Transaction Documents or any agreements or
understandings such Purchaser may have with any such stockholder or any violations by the Purchaser of state or federal securities
laws or any conduct by such Purchaser which constitutes fraud, gross negligence, willful misconduct or malfeasance). If any action
shall be brought against any Purchaser Party in respect of which indemnity may be sought pursuant to this Agreement, such Purchaser
Party shall promptly notify the Company in writing, and the Company shall have the right to assume the defense thereof with counsel
of its own choosing reasonably acceptable to the Purchaser Party. Any Purchaser Party shall have the right to employ separate counsel
in any such action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of
such Purchaser Party except to the extent that (i) the employment thereof has been specifically authorized by the Company in writing,
(ii) the Company has failed after a reasonable period of time to assume such defense and to employ counsel or (iii) in such action
there is, in the reasonable opinion of such separate counsel, a material conflict on any material issue between the position of
the Company and the position of such Purchaser Party, in which case the Company shall be responsible for the reasonable fees and
expenses of no more than one such separate counsel. The Company will not be liable to any Purchaser Party under this Agreement
(y) for any settlement by a Purchaser Party effected without the Company’s prior written consent, which shall not be unreasonably
withheld or delayed; or (z) to the extent, but only to the extent that a loss, claim, damage or liability is attributable to any
Purchaser Party’s breach of any of the representations, warranties, covenants or agreements made by such Purchaser Party
in this Agreement or in the other Transaction Documents.

 

    	 	16	 

     

    

 

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

 

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

 

ARTICLE V.

MISCELLANEOUS

 

5.1           Termination. 
This Agreement may be terminated by any Purchaser, as to such Purchaser’s obligations hereunder only and without any effect
whatsoever on the obligations between the Company and the other Purchasers, by written notice to the other parties, if the Closing
has not been consummated on or before June 30, 2016; provided, however, that no such termination will affect the
right of any party to sue for any breach by the other party (or parties).

 

5.2           Fees
and Expenses. At the Closing, the Company shall deliver to each Purchaser, prior to the Closing, a completed and executed copy
of the Closing Statement, attached hereto as Annex A. Except as expressly set forth in the Transaction Documents to the
contrary, each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other
expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement.
The Company shall pay all Transfer Agent fees (including, without limitation, any fees required for same-day processing of any
instruction letter delivered by the Company and any exercise notice delivered by a Purchaser), stamp taxes and other taxes and
duties levied in connection with the delivery of any Securities to the Purchasers.

 

    	 	17	 

     

    

 

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

 

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

 

5.5           Amendments;
Waivers. No provision of this Agreement may be waived or amended except in a written instrument signed, in the case of an amendment,
by the Company and the Purchasers holding at least 51% of the Shares then outstanding or, in the case of a waiver, by the party
against whom enforcement of any such waived provision is sought. No waiver of any default with respect to any provision, condition
or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default
or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any
right hereunder in any manner impair the exercise of any such right.

 

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

 

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

 

5.8           No
Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors
and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise
set forth in Section 4.7.

 

    	 	18	 

     

    

 

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

 

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

 

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

 

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

 

    	 	19	 

     

    

 

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

 

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

 

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

 

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

 

5.17         Independent
Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction Document are several
and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance
or non-performance of the obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any
other Transaction Document, and no action taken by any Purchaser pursuant thereto, shall be deemed to constitute the Purchasers
as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are
in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction
Documents. Each Purchaser shall be entitled to independently protect and enforce its rights including, without limitation, the
rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser
to be joined as an additional party in any proceeding for such purpose. Each Purchaser has been represented by its own separate
legal counsel in their review and negotiation of the Transaction Documents.

 

    	 	20	 

     

    

 

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

 

5.19         Construction.
The parties agree that each of them and/or their respective counsel has reviewed and had an opportunity to revise the Transaction
Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting
party shall not be employed in the interpretation of the Transaction Documents or any amendments hereto.

 

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

 

(Signature Pages Follow)

 

    	 	21	 

     

    

 

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

 

 

	
        NEURALSTEM, INC.

         

        
	 	Address for Notice:
	By:	                 	 	Fax:
	Name:	 	 
	Title:	 	 
	With a copy to (which shall not constitute notice):	 	 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOR PURCHASER FOLLOWS]

 

    	 	22	 

     

    

 

[PURCHASER SIGNATURE PAGES TO NEURALSTEM
SECURITIES PURCHASE AGREEMENT]

 

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

 

Name of Purchaser:                                                                                                                                                             

 

Signature of Authorized Signatory of
Purchaser:                                                                                                                     

 

Name of Authorized Signatory:                                                                                                                                                     

 

Title of Authorized Signatory:                                                                                                                                                       

 

Email Address of Authorized Signatory:                                                                                                                                    

 

Fax Number of Authorized Signatory:                                                                                                                                       

 

Address for Notice of Purchaser:                                                                                                                                              

 

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

 

Subscription Amount: $_________________

 

Shares: _________________

 

Warrant Shares: __________________

 

EIN Number: [PROVIDE THIS UNDER SEPARATE COVER]

 

[SIGNATURE PAGES CONTINUE]

 

    	 	23Exhibit 4.13

 

(Summary Translation)

 

Cooperation Agreement

 

for

 

The Project of Block A1, IT Industrial
Park of Electronics Zone

 

Beijing Electronics Zone Investment and
Development Co., Ltd.

 

Beijing Chengshi Wanglin Information Technology
Co., Ltd.

 

September 25, 2014

 

Beijing

 

     

     

    

 

Party A: Beijing Electronics
Zone Investment and Development Co., Ltd.

Postal Address: Building 205,
Jia No. 10 Yard, North Jiuxianqiao Road, Chaoyang District,

Beijing

Zip Code: 100015

Business License Registration
No.: 110000005030270

Legal Representative or Person
in Charge: Wang Yan

Tel: 010-58833501

 

Party B: Beijing Chengshi Wanglin
Information Technology Co., Ltd.

Postal Address: Suite E, North
America International Business Center, Yi No. 108 Beiyuan

Road, Chaoyang District, Beijing

Zip Code: 1000010

Business License Registration
No.: 110000450129310

Legal Representative or Person
in Charge: Yao Jinbo

Tel: 010-51395858

 

WHEREAS

 

		1	The number of the Certificate for Use of the State-owned Land of the land located in Zone A of the IT Industrial Park in the
Electronics Zone with an area of 69,122.42 square meters (area for exclusive use) is Jing Chao Guo Yong (2008 Chu) No. 0108; the
purpose of the land specified therein is for industrial use, and the land use right will expire on December 7, 2056. Such land
use right of the State-owned land and the projects being constructed thereon that already obtained by Party A are all free of any
mortgage, litigation, arbitration or any other legal proceedings; the buildings are originally planned to serve as the purpose
of industrial facilities, and is currently under planning adjustment, and Party A will carry out the construction subject to the
planning approval and construction drawings.

 

		2	After a full understanding of the relevant details of construction and situation of the IT Industrial Park of Zhongguancun
Electronics Zone, Party B decides to purchase Block 1, Zone A of the IT Industrial Park and will perform the relevant admittance
approval procedures according to the admittance conditions of Zhongguancun Electronics Zone, and further undertakes that after
the entry, it will move its registered address and tax source to IT Industrial Park of Zhongguancun Electronics Zone as soon as
practicable and will not change the intended purpose of the building.

 

In accordance with the relevant laws and regulations and on
the basis of equal, voluntary and fair negotiations, Party A and Party B hereby agree as follows in connection with the matters
of their cooperation:

 

Article 1         Target Building

 

		1.1.	Scope of the Target Building

 

The target building in this Agreement refers to Block
1, Zone A, Jia No. 10 Yard, North Jiuxianqiao Road, Chaoyang District, Beijing, the main structure of which is frame structure;
the building has two floors underground and seven floors above ground, with the total floor area temporarily estimated as approximately
28,169.29 square meters, of which the floor area above ground is approximately 21,405.97 square meters and the floor area underground
is approximately 6,763.32 square meters (Note: the areas provided in this paragraph are estimated areas, and the final figures
shall be subject to the surveying and mapping report after the completion.)

 

    	 	2	 

     

    

 

		1.2.	Confirmation on Area of the Target Building

 

The Parties agree to confirm the areas on the basis
of the floor area, and the actual aggregate floor area shall be subject to the area confirmed in the surveying and mapping report.
If the absolute value of the error ratio in respect of the total floor area falls within 3% (included), the price will be settled
based on the actual area and at the price agreed herein; if the actual total floor area is larger than the estimated floor area
agreed herein, the part of the price corresponding to the area exceeding 3% error ratio shall be borne by Party A, and such area
in excess shall be owned by Party B; if the actual total floor area is smaller than the estimated floor area agreed herein, the
part of the price corresponding to the area exceeding 3% error ratio shall be refunded by Party A to Party B in double amount.

 

Article 2         Price of Target
Building and Payment Schedule

 

		2.1.	Calculation Method for the Price of the Target Building:

 

The Parties acknowledge that the transaction price
of the target building shall be calculated on the basis of RMB23,000 (twenty-three thousand) per square meter for the total floor
area.

 

		2.2.	Estimated Price of the Target Building

 

According to the estimated calculation of the floor
area provided in Article 1 hereof, the estimated basic price payable by Party B to Party A for purchase of the target building
shall be RMB647,893,670 (i.e. six hundred and forty-seven million eight hundred and ninety-three thousand six hundred and seventy)
(hereinafter referred to as the “Estimated Total Price”). The final price shall be adjusted and settled as agreed
in Article 1.2 by refunding the amounts in excess and making up for the shortfall.

 

		2.3.	Payment Schedule

 

Party B will pay the full amount of the Estimated
Total Price to Party A in several instalments according to the following schedule:

 

		2.3.1.	within 20 working days after this Agreement takes effect, Party B will pay 10% of the Estimated Total Price to Party A, i.e.
RMB 64,789,367 (sixty-four million seven hundred and eighty-nine thousand three hundred and sixty-seven);

 

		2.3.2.	prior to September 30, 2015, Party B will pay 40% of the Estimated Total Price to Party A, i.e. RMB 259,157,468 (two hundred
and fifty-nine million one hundred and fifty-seven thousand four hundred and sixty-eight);

 

		2.3.3.	prior to December 31, 2015, Party B will pay 50% of the Estimated Total Price to Party A, i.e. RMB 323,946,835 (three hundred
and twenty-three million nine hundred and forty-six thousand eight hundred and thirty-five);

 

    	 	3	 

     

    

 

Article 3         Delivery of
Target Building

 

		3.1.	Party A shall complete the construction, inspection and acceptance of the target building no later than December 31, 2015.
Party A shall deliver the building to Party B after Party B has made full payment of the entire Estimated Total Price.

 

Article 4         Ownership Certificate

 

		4.1.	Party A acknowledges that after the target building has been delivered to Party B and the handover procedures in respect thereof
have been completed pursuant to Article 3, and after Party B has paid up the full price for purchase of the building in the amount
adjusted pursuant to Article 2.2 hereof, Party A shall have the obligation to complete the procedures for the Building Ownership
Certificate within 2 years after Party B has provided all relevant materials that should be provided by it and paid up all relevant
taxes and fees.

 

		4.2.	Both Parties agree to bear any taxes and expenses incurred arising from the handling of the building ownership certificate
according to relevant regulations of the State.

 

		4.3.	Given that the building is located within the Technical Park of Zhongguancun Electronics Zone, Party B shall not transfer the
building in principle according to the relevant regulations; in case of a transfer, Party A shall have a pre-emptive buyback right
under the equivalent conditions, unless in cases where such regulations are invalidated at the time of transfer.

 

Article 5         Liabilities
for Breach

 

		5.1.	Principles

 

The Parties shall enjoy the rights and perform the
obligations provided hereunder under the principles of honesty and good faith. In cases of any default, the defaulting Party shall
assume the liabilities for breach and pay a penalty fine to the non-defaulting Party. If there is an express provision governing
the percentage of the penalty fine, such provision shall prevail. In case both Parties are in breach, the Parties shall undertake
their respective liabilities according to their respective degree of fault or level of responsibilities.

 

In case of breach by any Party, the non-defaulting
Party shall be entitled to require the defaulting Party to rectify such breach. The legal liabilities thus brought about shall
be assumed by the defaulting Party.

 

		5.2.	Party A’s Liabilities for Breach

 

If Party A fails to perform its own obligations within
the period agreed herein, the following provisions shall prevail:

 

    	 	4	 

     

    

 

		5.2.1.	If Party A fails to deliver the target building to Party B by June 30, 2016 as required in Article 3.1 and Exhibit 2 for reasons
attributable to Party A, Party A shall pay 0.01% of the price already paid by Party B as penalty for each day of delay. In case
such delay lasts over 90 days, Party B shall be entitled to terminate this Agreement, in which case Party A shall refund all paid
amounts to Party B within 30 days upon the date of the termination notice, and pay 0.01% of the paid amounts as penalty to Party
B for each day of delay. If Party B elects not to terminate this Agreement, Party A shall pay 0.01% of the paid amounts as penalty
to Party B for each day during the period starting from the day immediately following the due delivery date agreed herein and ending
on the actual delivery date, and this Agreement shall continue to be performed.

 

		5.2.2.	If Party A fails to make the initial registration for Party B within the agreed time limit, or fails to go through the procedures
of the Building Ownership Certificate for reasons attributable to Party A, Party A shall pay 0.01% of the price already paid by
Party B as penalty for each day of delay. In case such delay lasts over 90 days, Party B shall be entitled to terminate this Agreement,
in which case Party A shall refund all paid amounts to Party B within 30 days upon the date of the termination notice, and pay
0.01% of the paid amounts as penalty to Party B for each day during the period starting from the day on which the procedures for
the ownership certificate should be completed and ending on the date of refunding.

 

		5.2.3.	Except as agreed herein, Party A undertakes that it will not resell the building to others and that the target building is
free of any security interest, failing to comply with which Party A has to pay Party B a penalty fine equivalent to 30% of the
Estimated Total Price hereunder, and the performance of this Agreement may be continued at the election of Party B.

 

		5.3.	Party B’s Liabilities for Breach

 

If Party B fails to perform its own obligations within
the period agreed herein, the following provisions shall prevail:

 

		5.3.1.	Party A shall be entitled to unilaterally terminate this Agreement if Party B fails to pay the first instalment of the Estimated
Total Price to Party A as agreed herein.

 

		5.3.2.	In case the payment is delayed for less than 90 days for reasons attributable to Party B, Party B shall pay 0.01% of the outstanding
and payable amounts as penalty to Party B for each day during the period starting from the day immediately following the due payment
date agreed herein and ending on the actual full payment date, and this Agreement shall continue to be performed.

 

		5.3.3.	In case the delay in payment lasts over 90 days for reasons attributable to Party B, Party A shall be entitled to terminate
this Agreement and resell the building contemplated hereunder to any third person, in which case Party B shall pay 0.01% of the
outstanding and payable amounts as penalty to Party A for each day of delay, and Party A shall refund the remaining paid amounts
after deducting such penalty fine. If Party A elects not to terminate this Agreement, Party B shall pay 0.01% of the outstanding
and payable amounts as penalty to Party A for each day during the period starting from the day immediately following the due payment
date of such outstanding amounts agreed herein and ending on the actual payment date, and this Agreement shall continue to be performed.

 

    	 	5	 

     

    

 

		5.4.	Except for the right of unilateral termination exercisable by the Parties pursuant to this Agreement, neither Party may terminate
this Agreement without justified reasons, and either Party that terminates this Agreement for reasons not stipulated by the law
or agreed herein shall pay a penalty fine equivalent to 30% of the Estimated Total Price to the non-defaulting Party. However,
neither Party may terminate this agreement by applying this paragraph after the other Party has performed the primary obligations
hereunder. The primary obligations mentioned in this paragraph, with respect to Party A, shall mean the obligations to deliver
the building and complete the procedures for ownership transfer, and with respect to Party B, shall mean the obligation to pay
the Estimated Total Price of the building.

 

		5.5.	If either Party is required to refund amounts and/or pay penalty fine to the other Party for its default pursuant to this Agreement,
the defaulting Party shall refund the amounts as agreed and pay the penalty fine within 30 days upon the delivery of the written
notice by the non-defaulting Party to the defaulting Party, failing to do which the defaulting Party shall pay 0.01% of the Estimated
Total Price for each day during the period from the day on which the penalty fine should be paid to the day on which the penalty
is actually paid in full.

 

Article 6         Termination
of Agreement

 

		6.1.	In case any of the following situation occurs, this Agreement will terminate:

 

		(1)	this Agreement will terminate earlier upon a new written agreement entered into between the Parties after negotiations;

 

		(2)	this Agreement will terminate automatically after the Parties have completed their obligations hereunder;

 

		(3)	where a Party is deprived of its legal capacity due to bankruptcy, closedown, revocation of business license, the other Party
is entitled to terminate this Agreement immediately upon delivery of a written notice;

 

		(4)	upon the occurrence of a force majeure event, which renders that the purpose of this Agreement cannot be realized, either Party
may terminate this Agreement via a notice to the other Party; or

 

		(5)	other circumstances under which this Agreement may be terminated or dissolved as provided by laws, regulations or agreed in
this Agreement.

 

		6.2.	Either Party that terminates or dissolves this Agreement as provided by laws, regulations or agreed in this Agreement shall
send a written notice to the other Party to terminate or dissolve this Agreement, and this Agreement shall be terminated or dissolved
upon the receipt of such written notice by the other Party. The non-defaulting Party is entitled to claim the defaulting liabilities
against the defaulting Party according to the laws, regulations and this Agreement.

 

Article 7         Confidentiality

 

Article 8         Force Majeure

 

Article 9         Effectiveness
and Counterparts

 

		9.1.	This Agreement shall take effect upon being signed and stamped by the Parties and after being approved by the shareholders
of Party A and the board of directors of Party B.

 

    	 	6	 

     

    

 

		9.2.	This Agreement shall be made in six counterparts, three for each Party, all of which shall be equally binding.

 

		9.3.	In case of any conflicts between this Agreement and the laws and regulations of the State, the latter shall prevail.

 

Article 10         Dispute Resolution

 

		10.1.	In case of any disputes between the Parties, the Parties shall first resort to amicable negotiations to resolve such disputes;
if the negotiations fail, such disputes shall be filed to the court of competent jurisdiction over the target building for resolution.

 

Article 11         Exhibits of
the Agreement

 

    	 	7	 

     

    

 

(Summary Translation)

 

Cooperation Agreement

 

for

 

The Project of Block A5, IT Industrial
Park of Electronics Zone

 

Beijing Electronics Zone Investment and
Development Co., Ltd.

 

Beijing Chengshi Wanglin Information Technology
Co., Ltd.

 

September 25, 2014

 

Beijing

 

    	 	8	 

     

    

 

Party A: Beijing Electronics Zone Investment and Development
Co., Ltd.

Postal Address: Building 205,
Jia No. 10 Yard, North Jiuxianqiao Road, Chaoyang District,

Beijing

Zip Code: 100015

Business License Registration
No.: 110000005030270

Legal Representative or Person
in Charge: Wang Yan

Tel: 010-58833501

 

Party B: Beijing Chengshi Wanglin
Information Technology Co., Ltd.

Postal Address: Suite E, North
America International Business Center, Yi No. 108 Beiyuan

Road, Chaoyang District, Beijing

Zip Code: 1000010

Business License Registration
No.: 110000450129310

Legal Representative or Person
in Charge: Yao Jinbo

Tel: 010-51395858

 

WHEREAS

 

		1	The number of the Certificate for Use of the State-owned Land of the land located in Zone A of the IT Industrial Park in the
Electronics Zone with an area of 69,122.42 square meters (area for exclusive use) is Jing Chao Guo Yong (2008 Chu) No. 0108; the
purpose of the land specified therein is for industrial use, and the land use right will expire on December 7, 2056. Such land
use right of the State-owned land and the projects being constructed thereon that already obtained by Party A are all free of any
mortgage, litigation, arbitration or any other legal proceedings; as of the date of this agreement, the Parties acknowledge that
Party A has obtained the 2013 Gui (Chao) Jian Zi No. 0113 Construction Engineering Planning Permit (Jian Zi No. 110105201300273)
for Block 5 from relevant governmental authority, the buildings are originally planned to serve as the purpose of industrial facilities,
and relevant construction design drawings have been completed, and Party A will carry out the construction subject to the planning
approval and construction drawings. The buildings have completed the structural roof sealing.

 

		2	After a full understanding of the relevant details of construction and situation of the IT Industrial Park of Zhongguancun
Electronics Zone, Party B decides to purchase Block 5, Zone A of the IT Industrial Park and will perform the relevant admittance
approval procedures according to the admittance conditions of Zhongguancun Electronics Zone, and further undertakes that after
the entry, it will move its registered address and tax source to IT Industrial Park of Zhongguancun Electronics Zone as soon as
practicable and will not change the intended purpose of the building.

 

In accordance with the relevant laws and regulations and on
the basis of equal, voluntary and fair negotiations, Party A and Party B hereby agree as follows in connection with the matters
of their cooperation:

 

Article 1         Target Building

 

		1.1.	Scope of the Target Building

 

The target building in this Agreement refers to Block
5, Zone A, Jia No. 10 Yard, North Jiuxianqiao Road, Chaoyang District, Beijing, the main structure of which is frame structure;
the building has seven floors above ground, with the total floor area temporarily estimated as approximately 16,745.71 square meters
(Note: the areas provided in this paragraph are estimated areas, and the final figures shall be subject to the surveying and mapping
report after the completion.)

 

    	 	9	 

     

    

 

		1.2.	Confirmation on Area of the Target Building

 

The Parties agree to confirm the areas on the basis
of the floor area, and the actual aggregate floor area shall be subject to the area confirmed in the surveying and mapping report.
If the absolute value of the error ratio in respect of the total floor area falls within 3% (included), the price will be settled
based on the actual area and at the price agreed herein; if the actual total floor area is larger than the estimated floor area
agreed herein, the part of the price corresponding to the area exceeding 3% error ratio shall be borne by Party A, and such area
in excess shall be owned by Party B; if the actual total floor area is smaller than the estimated floor area agreed herein, the
part of the price corresponding to the area exceeding 3% error ratio shall be refunded by Party A to Party B in double amount.

 

Article 2         Price of Target
Building and Payment Schedule

 

		2.1.	Calculation Method for the Price of the Target Building:

 

The Parties acknowledge that the transaction price
of the target building shall be calculated on the basis of RMB23,000 (twenty-three thousand) per square meter for the total floor
area.

 

		2.2.	Estimated Price of the Target Building

 

According to the estimated calculation of the floor
area provided in Article 1 hereof, the estimated basic price payable by Party B to Party A for purchase of the target building
shall be RMB385,151,330 (i.e. three hundred and eighty-five million one hundred and fifty-one thousand three hundred and thirty)
(hereinafter referred to as the “Estimated Total Price”). The final price shall be adjusted and settled as agreed
in Article 1.2 by refunding the amounts in excess and making up for the shortfall.

 

		2.3.	Payment Schedule

 

Party B will pay the full amount of the Estimated
Total Price to Party A in several instalments according to the following schedule:

 

		2.3.1.	within 20 working days after this Agreement takes effect, Party B will pay 10% of the Estimated Total Price to Party A, i.e.
RMB 38,515,133 (thirty-eight million five hundred and fifteen thousand one hundred and thirty-three);

 

		2.3.2.	prior to March 31, 2015, Party B will pay 80% of the Estimated Total Price to Party A, i.e. RMB 308,121,064 (three hundred
and eight million one hundred and twenty-one thousand and sixty-four);

 

		2.3.3.	within 10 working days prior to the delivery of the target building, Party B will pay the remaining part of the Estimated Total
Price to Party A, i.e. RMB 38,515,133 (thirty-eight million five hundred and fifteen thousand one hundred and thirty-three);

 

    	 	10	 

     

    

 

Article 3         Delivery of
Target Building

 

		3.1.	Party A shall complete the construction, inspection and acceptance of the target building no later than August 31, 2015. Party
A shall deliver the building to Party B after Party B has made full payment of the entire Estimated Total Price.

 

Article 4         Ownership Certificate

 

		4.1.	Party A acknowledges that after the target building has been delivered to Party B and the handover procedures in respect thereof
have been completed pursuant to Article 3, and after Party B has paid up the full price for purchase of the building in the amount
adjusted pursuant to Article 2.2 hereof, Party A shall have the obligation to complete the procedures for the Building Ownership
Certificate within 2 years after Party B has provided all relevant materials that should be provided by it and paid up all relevant
taxes and fees.

 

		4.2.	Both Parties agree to bear any taxes and expenses incurred arising from the handling of the building ownership certificate
according to relevant regulations of the State.

 

		4.3.	Given that the building is located within the Technical Park of Zhongguancun Electronics Zone, Party B shall not transfer the
building in principle according to the relevant regulations; in case of a transfer, Party A shall have a pre-emptive buyback right
under the equivalent conditions, unless in cases where such regulations are invalidated at the time of transfer.

 

Article 5         Liabilities
for Breach

 

		5.1.	Principles

 

The Parties shall enjoy the rights and perform the
obligations provided hereunder under the principles of honesty and good faith. In cases of any default, the defaulting Party shall
assume the liabilities for breach and pay a penalty fine to the non-defaulting Party. If there is an express provision governing
the percentage of the penalty fine, such provision shall prevail. In case both Parties are in breach, the Parties shall undertake
their respective liabilities according to their respective degree of fault or level of responsibilities.

 

In case of breach by any Party, the non-defaulting
Party shall be entitled to require the defaulting Party to rectify such breach. The legal liabilities thus brought about shall
be assumed by the defaulting Party.

 

		5.2.	Party A’s Liabilities for Breach

 

If Party A fails to perform its own obligations within
the period agreed herein, the following provisions shall prevail:

 

		5.2.1.	If Party A fails to deliver the target building to Party B by August 31, 2015 as required in Article 3.1 and Exhibit 2 for
reasons attributable to Party A, Party A shall pay 0.01% of the price already paid by Party B as penalty for each day of delay.
In case such delay lasts over 90 days, Party B shall be entitled to terminate this Agreement, in which case Party A shall refund
all paid amounts to Party B within 30 days upon the date of the termination notice, and pay 0.01% of the paid amounts as penalty
to Party B for each day of delay. If Party B elects not to terminate this Agreement, Party A shall pay 0.01% of the paid amounts
as penalty to Party B for each day during the period starting from the day immediately following the due delivery date agreed herein
and ending on the actual delivery date, and this Agreement shall continue to be performed.

 

    	 	11	 

     

    

 

		5.2.2.	If Party A fails to make the initial registration for Party B within the agreed time limit, or fails to go through the procedures
of the Building Ownership Certificate for reasons attributable to Party A, Party A shall pay 0.01% of the price already paid by
Party B as penalty for each day of delay. In case such delay lasts over 90 days, Party B shall be entitled to terminate this Agreement,
in which case Party A shall refund all paid amounts to Party B within 30 days upon the date of the termination notice, and pay
0.01% of the paid amounts as penalty to Party B for each day during the period starting from the day on which the procedures for
the ownership certificate should be completed and ending on the date of refunding.

 

		5.2.3.	Except as agreed herein, Party A undertakes that it will not resell the building to others and that the target building is
free of any security interest, failing to comply with which Party A has to pay Party B a penalty fine equivalent to 30% of the
Estimated Total Price hereunder, and the performance of this Agreement may be continued at the election of Party B.

 

		5.3.	Party B’s Liabilities for Breach

 

If Party B fails to perform its own obligations within
the period agreed herein, the following provisions shall prevail:

 

		5.3.1.	Party A shall be entitled to unilaterally terminate this Agreement if Party B fails to pay the first instalment of the Estimated
Total Price to Party A as agreed herein.

 

		5.3.2.	In case the payment is delayed for less than 90 days for reasons attributable to Party B, Party B shall pay 0.01% of the outstanding
and payable amounts as penalty to Party B for each day during the period starting from the day immediately following the due payment
date agreed herein and ending on the actual full payment date, and this Agreement shall continue to be performed. In case Party
B fails to make payments pursuant to Article 2.3.2, it shall pay breach penalty from the sixth working day after the last payment
date as required in Article 2.3.2.

 

		5.3.3.	In case the delay in payment lasts over 90 days for reasons attributable to Party B, Party A shall be entitled to terminate
this Agreement and resell the building contemplated hereunder to any third person, in which case Party B shall pay 0.01% of the
outstanding and payable amounts as penalty to Party A for each day of delay, and Party A shall refund the remaining paid amounts
after deducting such penalty fine. If Party A elects not to terminate this Agreement, Party B shall pay 0.01% of the outstanding
and payable amounts as penalty to Party A for each day during the period starting from the day immediately following the due payment
date of such outstanding amounts agreed herein and ending on the actual payment date, and this Agreement shall continue to be performed.

 

    	 	12	 

     

    

 

		5.4.	Except for the right of unilateral termination exercisable by the Parties pursuant to this Agreement, neither Party may terminate
this Agreement without justified reasons, and either Party that terminates this Agreement for reasons not stipulated by the law
or agreed herein shall pay a penalty fine equivalent to 30% of the Estimated Total Price to the non-defaulting Party. However,
neither Party may terminate this agreement by applying this paragraph after the other Party has performed the primary obligations
hereunder. The primary obligations mentioned in this paragraph, with respect to Party A, shall mean the obligations to deliver
the building and complete the procedures for ownership transfer, and with respect to Party B, shall mean the obligation to pay
the Estimated Total Price of the building.

 

		5.5.	If either Party is required to refund amounts and/or pay penalty fine to the other Party for its default pursuant to this Agreement,
the defaulting Party shall refund the amounts as agreed and pay the penalty fine within 30 days upon the delivery of the written
notice by the non-defaulting Party to the defaulting Party, failing to do which the defaulting Party shall pay 0.01% of the Estimated
Total Price for each day during the period from the day on which the penalty fine should be paid to the day on which the penalty
is actually paid in full.

 

Article 6         Termination
of Agreement

 

		6.1.	In case any of the following situation occurs, this Agreement will terminate:

 

		(1)	this Agreement will terminate earlier upon a new written agreement entered into between the Parties after negotiations;

 

		(2)	this Agreement will terminate automatically after the Parties have completed their obligations hereunder;

 

		(3)	where a Party is deprived of its legal capacity due to bankruptcy, closedown, revocation of business license, the other Party
is entitled to terminate this Agreement immediately upon delivery of a written notice;

 

		(4)	upon the occurrence of a force majeure event, which renders that the purpose of this Agreement cannot be realized, either Party
may terminate this Agreement via a notice to the other Party; or

 

		(5)	other circumstances under which this Agreement may be terminated or dissolved as provided by laws, regulations or agreed in
this Agreement.

 

		6.2.	Either Party that terminates or dissolves this Agreement as provided by laws, regulations or agreed in this Agreement shall
send a written notice to the other Party to terminate or dissolve this Agreement, and this Agreement shall be terminated or dissolved
upon the receipt of such written notice by the other Party. The non-defaulting Party is entitled to claim the defaulting liabilities
against the defaulting Party according to the laws, regulations and this Agreement.

 

    	 	13	 

     

    

 

Article 7         Confidentiality

 

Article 8         Force Majeure

 

Article 9         Effectiveness
and Counterparts

 

		9.1.	This Agreement shall take effect upon being signed and stamped by the Parties and after being approved by the shareholders
of Party A and the board of directors of Party B.

 

		9.2.	This Agreement shall be made in six counterparts, three for each Party, all of which shall be equally binding.

 

		9.3.	In case of any conflicts between this Agreement and the laws and regulations of the State, the latter shall prevail.

 

Article 10         Dispute Resolution

 

		10.1.	In case of any disputes between the Parties, the Parties shall first resort to amicable negotiations to resolve such disputes;
if the negotiations fail, such disputes shall be filed to the court of competent jurisdiction over the target building for resolution.

 

Article 11         Exhibits of
the Agreement

 

    	 	14

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