Document:

SERIES A PREFERRED STOCK PURCHASE AGREEMENT

 

This SERIES A PREFERRED
STOCK PURCHASE AGREEMENT (the “Agreement”) is dated as of April 24, 2013 by and among Point Capital, Inc., a
Delaware Corporation (formerly, Gold Swap Inc., a New York corporation) (the “Company”), and each of the purchasers
of shares of Series A Preferred Stock of the Company identified on the signature pages hereto (individually, a “Purchaser”
and collectively, the “Purchasers”).

 

The parties hereto agree
as follows:

 

Article
I.

Purchase
and Sale of Preferred Stock

 

Section 1.01    Purchase
and Sale of Stock. Upon the following terms and conditions, the Company shall issue and sell to the Purchasers and each of
the Purchasers shall purchase from the Company, the number of shares of the Company’s Series A Convertible Preferred Stock,
par value $0.0001 per share, at a purchase price equal to $100 per share (the “Preferred Shares”) in the amounts
set forth on the signature pages hereto. The designation, rights, preferences and other terms and provisions of the Series A Preferred
Stock are set forth in the Certificate of Designation attached hereto as Exhibit A (the “Certificate of Designation”).
The Company and the Purchasers are executing and delivering this Agreement in accordance with and in reliance upon the exemption
from securities registration afforded by Rule 506 of Regulation D (“Regulation D”) as promulgated by the United
States Securities and Exchange Commission (the “Commission”) under the Securities Act of 1933, as amended (the
“Securities Act”), or Section 4(2) of the Securities Act. All funds shall be deposited and held in escrow with
Grushko & Mittman, P.C., 515 Rockaway Avenue, Valley Stream, NY 11581, and promptly refunded without interest or deduction
unless at least $400,000 of Preferred Shares have been sold and paid for by April 25, 2013.

 

Section 1.02    Purchase
Price and Closing. Subject to the terms and conditions hereof, the Company agrees to issue and sell to the Purchasers and,
in consideration of and in express reliance upon the representations, warranties, covenants, terms and conditions of this Agreement,
each Purchaser, severally but not jointly with respect to the amounts set forth on such Purchaser’s signature page hereto,
agrees to purchase the Preferred Shares for an aggregate purchase price of up to $1,000,000 (the “Purchase Price”).
The closing of the purchase and sale of the Preferred Shares to be acquired by the Purchasers from the Company under this Agreement
shall take place at the offices of Grushko & Mittman, P.C., 515 Rockaway Avenue, Valley Stream, New York 11581 (the “Closing”)
at 10:00 a.m., New York time (i) on or before April 25, 2013; provided, that all of the conditions set forth in Article IV hereof
and applicable to the Closing shall have been fulfilled or waived in accordance herewith, or (ii) at such other time and place
or on such date as the Purchasers and the Company may agree upon (the “Closing Date”). Subject to the terms
and conditions of this Agreement, the Company shall deliver or cause to be delivered to the Escrow Agent (as hereinafter defined)
prior to the Closing (x) a certificate for the number of Preferred Shares set forth on such Purchaser’s signature page hereto,
and (y) any other documents required to be delivered pursuant to Article IV hereof.

 

Section 1.03    Escrow.
Pending the Closing, all funds paid hereunder shall be deposited by the Purchasers in an account maintained by Grushko & Mittman,
P.C. (the “Escrow Agent”) for the benefit of the Purchasers (the “Escrow Account”). At the
Closing, the Purchase Price shall be paid by the Purchasers to the Company by wire transfer pursuant to the release of the funds
held in the Escrow Account to an account designated in writing by the Company prior to the Closing.

 

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Article
II.

Representations
and Warranties

 

Section 2.01     Representations
and Warranties of the Company. The Company hereby represents and warrants to the Purchasers, as of the date hereof and the
Closing Date (except as set forth on the Schedule of Exceptions attached hereto with each numbered Schedule corresponding to the
section number herein), as follows:

 

(a)    Organization,
Good Standing and Power. The Company is a corporation duly incorporated, validly existing and in good standing under the laws
of the State of Delaware and has the requisite corporate power to own, lease and operate its properties and assets and to conduct
its business as it is now being conducted. The Company does not have any subsidiaries, and no subsidiaries are identified in the
Company’s Annual Report on Form 10-K for the year ended December 31, 2012, including the accompanying financial statements
filed with the Commission on March 5, 2013 (the “Form 10-K”). The Company is duly qualified as a foreign corporation
to do business and is in good standing in every jurisdiction in which the nature of the business conducted or property owned by
it makes such qualification necessary except for any jurisdiction(s) (alone or in the aggregate) in which the failure to be so
qualified will not have a Material Adverse Effect (as defined in Section 2.01(c) hereof) on the Company’s financial condition.

 

(b)    Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and perform this Agreement, the Escrow
Agreement by and among the Company, the Purchasers and the Escrow Agent, dated as of the date hereof, substantially in the form
of Exhibit B attached hereto (the “Escrow Agreement”), and the Certificate of Designation (collectively,
the “Transaction Documents”), to issue and sell the Preferred Shares in accordance with the terms hereof and
otherwise carry out its obligations thereunder. The execution, delivery and performance of the Transaction Documents by the Company
and the consummation by it of the transactions contemplated hereby and thereby have been duly and validly authorized by all necessary
corporate action, and no further consent or authorization of the Company or its Board of Directors or shareholders is required.
This Agreement has been duly executed and delivered by the Company. The other Transaction Documents will have been duly executed
and delivered by the Company at the Closing. Each of the Transaction Documents constitutes, or shall constitute when executed and
delivered, a valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as
such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, conservatorship,
receivership or similar laws relating to, or affecting generally the enforcement of, creditor’s rights and remedies or by
other equitable principles of general application.

 

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(c)    Capitalization.
The authorized capital stock of the Company, the number of shares of such capital stock issued and outstanding, and the number
of shares of capital stock reserved for issuance upon the exercise or conversion of all outstanding warrants, stock options, and
other securities issued by the Company are set forth on Schedule 2.01(c) hereto. All of the outstanding shares of the common
stock, par value $0.0001 per share (the “Common Stock”) and any other outstanding security of the Company have
been duly and validly authorized, are validly issued, fully paid and non-assessable and were issued in accordance with the registration
or qualification provisions of the Securities Act, or pursuant to valid exemptions therefrom. Except as set forth in this Agreement
and as set forth on Schedule 2.01(c) hereto, no shares of Common Stock or any other security of the Company are entitled
to preemptive rights, registration rights, rights of first refusal or similar rights and there are no outstanding options, warrants,
scrip, rights to subscribe to, call or commitments of any character whatsoever granted by the Company or existing pursuant to agreements
to which the Company is a party and relating to, or securities or rights convertible into, any shares of capital stock of the Company.
Furthermore, except as set forth in this Agreement and as set forth on Schedule 2.01(c) hereto, there are no contracts,
commitments, understandings, or arrangements by which the Company is or may become bound to issue additional shares of the capital
stock of the Company or options, securities or rights convertible into shares of capital stock of the Company. Except as set forth
on Schedule 2.01(c) hereto, the Company is not a party to or bound by any agreement or understanding granting registration
or anti-dilution rights to any person with respect to any of its equity or debt securities. Except as set forth on Schedule
2.01(c) hereto, the Company is not a party to, and it has no knowledge of, any agreement or understanding restricting the voting
or transfer of any shares of the capital stock of the Company. Except as disclosed on Schedule 2.01(c) or 2.01(k)
hereto, (i) there are no outstanding debt securities, or other form of material debt of the Company, (ii) there are no outstanding
securities of the Company or any of its subsidiaries that contain any redemption or similar provisions, and there are no contracts,
commitments, understandings, agreements or arrangements by which the Company is or may become bound to redeem a security of the
Company, (iii) the Company does not have any stock appreciation rights or “phantom stock” plans or agreements, or any
similar plan or agreement and (iv) as of the date of this Agreement, except as disclosed on Schedule 2.01(c) hereto, to
the Company’s knowledge, no Person (as defined below) or group of related Persons beneficially owns or has the right to acquire
by agreement with or by obligation binding upon the Company, beneficial ownership of in excess of 5% of the Common Stock. Except
as set forth on Schedule 2.01(c), any Person with any right to purchase securities of the Company that would be triggered
as a result of the transactions contemplated hereby or by any of the other Transaction Documents has waived such rights or the
time for the exercise of such rights has passed. Except as set forth on Schedule 2.01(c) hereto, there are no options, warrants
or other outstanding securities of the Company, the vesting of which will be accelerated by the transactions contemplated hereby
or by any of the other Transaction Documents. The Company has furnished or made available to the Purchasers true and correct copies
of the Company’s Articles of Incorporation as in effect on the date hereof (the “Articles”), and the Company’s
Bylaws as in effect on the date hereof (the “Bylaws”). For purposes of this Agreement, “Person”
shall mean 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. For the purposes
of this Agreement, “Material Adverse Effect” means any material adverse effect on the business, operations,
assets, properties, prospects or financial condition of the Company, taken as a whole, and/or any condition, circumstance, or situation
that would prohibit or otherwise interfere with the ability of the Company to perform any of its obligations under the Transaction
Documents in any material respect.

 

(d)    Issuance
of Shares. The Preferred Shares to be issued at the Closing have been duly authorized by all necessary corporate action and
the Preferred Shares, when paid for or issued in accordance with the terms hereof, shall be validly issued and outstanding, fully
paid and non-assessable and entitled to the rights and preferences set forth in the Certificate of Designation.

 

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(e)    No
Conflicts. The execution, delivery and performance of the Transaction Documents by the Company, the performance by the Company
of its obligations under the Certificate of Designation, and the consummation by the Company of the transactions contemplated herein
and therein do not and will not (i) conflict with or violate any provision of the Company’s Articles or Bylaws, (ii) conflict
with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to
others any rights of termination, amendment, acceleration or cancellation of, any agreement, mortgage, deed of trust, indenture,
note, bond, license, lease agreement, instrument or obligation to which the Company is a party or by which it or its properties
or assets are bound, (iii) create or impose a lien, mortgage, security interest, charge or encumbrance of any nature on any property
of the Company under any agreement or any commitment to which the Company is a party or by which the Company is bound or by which
any of its respective properties or assets are bound or (iv) result in a violation of any federal, state, local or foreign statute,
rule, regulation, order, judgment or decree (including federal and state securities laws and regulations) applicable to the Company
or by which any property or asset of the Company is bound or affected, except, in all cases other than violations pursuant to clauses
(i) and (iv) above, for such conflicts, defaults, terminations, amendments, accelerations, cancellations and violations as would
not, individually or in the aggregate, have or reasonably be expected to have a Material Adverse Effect.

 

(f)    Commission
Documents, Financial Statements. The Company is required to file Forms 10-K, 10-Q and 8-K under Section 15(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), and the Company has filed all reports, schedules, forms,
statements and other documents required to be filed by it with the Commission pursuant to the reporting requirements of the Exchange
Act, including material filed pursuant to Section 15(d) of the Exchange Act from November, 2011 through the date hereof (all of
the foregoing including filings incorporated by reference therein being referred to herein as the “Commission Documents”).
The Company has made available to each of the Purchasers true and complete copies of the Commission Documents. The Company has
not provided to the Purchasers any material non-public information or other information which, according to applicable law, rule
or regulation, was required to have been disclosed publicly by the Company but which has not been so disclosed, other than with
respect to the transaction contemplated by this Agreement. At the times of their respective filings, the Commission Documents
complied in all material respects with the requirements of the Exchange Act and the rules and regulations of the Commission promulgated
thereunder and other federal, state and local laws, rules and regulations applicable to such documents and, as for their respective
dates, none of the Commission Documents 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 light of the circumstances under which
they were made, not misleading. The financial statements of the Company included in the Commission Documents comply as to form
in all material respects with applicable accounting requirements and the published rules and regulations of the Commission or
other applicable rules and regulations with respect thereto. Such financial statements have been prepared in accordance with United
States generally accepted accounting principles (“GAAP”) applied on a consistent basis during the periods involved
(except (i) as may be otherwise indicated in such financial statements or the notes thereto or (ii) in the case of unaudited interim
statements, to the extent they may not include footnotes or may be condensed or summary statements), and fairly present in all
material respects the financial position of the Company and its subsidiaries as of 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 year-end audit adjustments).

 

(g)    Subsidiaries.
As of the date of this Agreement and the Closing Date, the Company has no subsidiaries. For the purposes of this Agreement, “subsidiary”
shall mean any corporation or other entity of which at least a majority of the securities or other ownership interest having ordinary
voting power (absolutely or contingently) for the election of directors or other persons performing similar functions are at the
time owned directly or indirectly by the Company and/or any of its other subsidiaries.

 

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(h)    No
Material Adverse Change. Since December 31, 2012, the Company has not experienced or suffered any Material Adverse Effect or
any event, occurrence or development that could reasonably be expected to result in a Material Adverse Effect.

 

(i)    No
Undisclosed Liabilities. Other than as set forth in the Commission Documents, the Company has no liabilities, obligations,
claims or losses (whether liquidated or unliquidated, secured or unsecured, absolute, accrued, contingent or otherwise) other than
those incurred in the ordinary course of the Company’s business since December 31, 2012 and which, individually or in the
aggregate, do not or would not have a Material Adverse Effect on the Company.

 

(j)    No
Undisclosed Events or Circumstances. No event or circumstance has occurred or exists with respect to the Company or its business,
properties, prospects, operations or financial condition, which, under applicable law, rule or regulation, requires public disclosure
or announcement by the Company but which has not been so publicly announced or disclosed.

 

(k)    Indebtedness.
Schedule 2.01(k) hereto sets forth as of a recent date all outstanding secured and unsecured Indebtedness of the Company,
or for which the Company has commitments. For the purposes of this Agreement, “Indebtedness” shall mean (a)
any liabilities for borrowed money or amounts owed in excess of $10,000 (other than trade accounts payable incurred in the ordinary
course of business), (b) all guaranties, endorsements and other contingent obligations in respect of Indebtedness of others, whether
or not the same are or should be reflected in the Company’s balance sheet (or the notes thereto), except guaranties by endorsement
of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business; and (c) the present
value of any lease payments in excess of $10,000 due under leases required to be capitalized in accordance with GAAP. The Company
is not in default with respect to any Indebtedness.

 

(l)    Title
to Assets. The Company has good and marketable title to all of its real and personal property reflected in the Form 10-K, free
and clear of any mortgages, pledges, charges, liens, security interests or other encumbrances, except for those that, individually
or in the aggregate, do not cause and are not reasonably likely to cause a Material Adverse Effect. All leases of the Company,
if any, are valid and subsisting and in full force and effect.

 

(m)    Actions
Pending. Except as disclosed in the Commission Documents, there is no action, suit, claim, investigation, arbitration, alternate
dispute resolution proceeding or any other proceeding pending or, to the knowledge of the Company, threatened, against or involving
the Company, or any of its properties or assets. There are no outstanding orders, judgments, injunctions, awards or decrees of
any court, arbitrator or governmental or regulatory body against the Company.

 

(n)    Compliance
with Law. The business of the Company has been and is presently being conducted in accordance with all applicable federal,
state, local and foreign governmental laws, rules, regulations and ordinances, except for such noncompliance that, individually
or in the aggregate, would not cause a Material Adverse Effect. The Company has all franchises, permits, licenses, consents and
other governmental or regulatory authorizations and approvals necessary for the conduct of its business as now being conducted
by it unless the failure to possess such franchises, permits, licenses, consents and other governmental or regulatory authorizations
and approvals, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.

 

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(o)    Taxes.
The Company has accurately prepared and filed all federal, state, foreign and other tax returns required by law to be filed by
it, has paid or made provisions for the payment of all taxes shown to be due and all additional assessments, and adequate provisions
have been and are reflected in the financial statements of the Company for all current taxes and other charges to which the Company
is subject and that are not currently due and payable. None of the federal income tax returns of the Company has been audited by
the Internal Revenue Service (the “IRS”). The Company has no knowledge of any additional assessments, adjustments
or contingent tax liability (whether federal or state) of any nature whatsoever, whether pending or threatened against the Company
or any subsidiary for any completed tax period, nor of any basis for any such assessment, adjustment or contingency.

 

(p)    Certain
Fees. Except as set forth on Schedule 2.01(p) hereto, no brokers, finders or financial advisory fees or commissions
will be payable by the Company or any Purchaser with respect to the transactions contemplated by this Agreement. 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 this Agreement.

 

(q)    Disclosure.
Neither this Agreement or the Schedules hereto nor any other documents, certificates or instruments furnished to the Purchasers
by or on behalf of the Company in connection with the transactions contemplated by this Agreement (the “Disclosure Materials”)
contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made
herein or therein, in the light of the circumstances under which they were made herein or therein, not misleading.

 

(r)    Intellectual
Property. Except as disclosed on Schedule 2.01(r), the Company owns or possesses all patents, trademarks, domain names
(whether or not registered) and any patentable improvements or copyrightable derivative works thereof, websites and intellectual
property rights relating thereto, service marks, trade names, copyrights, licenses and authorizations as set forth in the Form
10-K, and all rights with respect to the foregoing, which are necessary for the conduct of its business as now conducted without
any conflict with the rights of others.

 

(s)    Environmental
Compliance. The Company has obtained all approvals, authorization, certificates, consents, licenses, orders and permits or
other similar authorizations of all governmental authorities, or from any other person, that are required under any Environmental
Laws and used in its business unless the failure to possess such approvals, authorizations, certificates, consents, licenses, orders
or permits, individually or in the aggregate could not reasonably be expected to have a Material Adverse Effect. “Environmental
Laws” shall mean all applicable laws relating to the protection of the environment, including, without limitation, all
requirements pertaining to reporting, licensing, permitting, controlling, investigating or remediating emissions, discharges, releases
or threatened releases of hazardous substances, chemical substances, pollutants, contaminants or toxic substances, materials or
wastes, whether solid, liquid or gaseous in nature, into the air, surface water, groundwater or land, or relating to the manufacture,
processing, distribution, use, treatment, storage, disposal, transport or handling of hazardous substances, chemical substances,
pollutants, contaminants or toxic substances, material or wastes, whether solid, liquid or gaseous in nature. Except for such instances
as would not individually or in the aggregate have a Material Adverse Effect, the Company is also in compliance with all other
limitations, restrictions, conditions, standards, requirements, schedules and timetables required or imposed under all Environmental
Laws and there are no past or present events, conditions, circumstances, incidents, actions or omissions relating to or in any
way affecting the Company that violate or may violate any Environmental Law after the Closing Date or that may give rise to any
environmental liability, or otherwise form the basis of any claim, action, demand, suit, proceeding, hearing, study or investigation
(i) under any Environmental Law, or (ii) based on or related to the manufacture, processing, distribution, use, treatment, storage
(including without limitation underground storage tanks), disposal, transport or handling, or the emission, discharge, release
or threatened release of any hazardous substance.

 

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(t)    Books
and Record Internal Accounting Controls. The books and records of the Company accurately reflect in all material respects the
information relating to the business of the Company, the location and collection of its assets, and the nature of all transactions
giving rise to the obligations or accounts receivable of the Company. The Company maintains a system of internal accounting controls
sufficient, in the judgment of the Company, to provide reasonable assurance that (i) transactions are executed in accordance with
management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial
statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance
with management’s general or specific authorization and (iv) the recorded accountability for assets is compared with the
existing assets at reasonable intervals and appropriate actions are taken with respect to any differences. The Company has established
disclosure controls and procedures for the Company and designed such disclosure controls and procedures to ensure that material
information relating to the Company is made known to the certifying officers by others within those entities.

 

(u)    Material
Agreements. Except as disclosed on Schedule 2.01(u), the Company is not a party to any written or oral contract, instrument,
agreement, commitment, obligation, plan or arrangement, a copy of which would be required to be filed with the Commission as an
exhibit to a registration statement on Form S-1 or applicable form (collectively, “Material Agreements”) if
the Company was registering securities under the Securities Act that has not been so filed with the Commission and publicly available
at the Commission’s EDGAR website. The Company has in all material respects performed all the obligations required to be
performed by it to date under the foregoing agreements, has received no notice of default and are not in default under any Material
Agreement now in effect, the result of which could cause a Material Adverse Effect. No written or oral contract, instrument, agreement,
commitment, obligation, plan or arrangement of the Company limits or shall limit the payment of dividends on the Company’s
Preferred Shares, or its Common Stock.

 

(v)    Transactions
with Affiliates. Except as set forth in the Form 10-K, or a Form 10-Q or a Form 8-K filed with the Commission after the filing
date of the Form 10-K or as contemplated by Schedule 3.16(a), there are no loans, leases, agreements, contracts, royalty
agreements, management contracts or arrangements or other continuing transactions between (i) the Company on the one hand, and
(ii) on the other hand, any officer or director of the Company, or any person owning 5% or more of any class of the Company’s
voting securities or any member of the immediate family of such officer, director or shareholder or any corporation or other entity
controlled by such officer, director or shareholder, or a member of the immediate family of such officer, director or shareholder
(each an “Affiliate”).

 

(w)    Securities
Act of 1933. Based in material part upon the representations herein of the Purchasers, the Company has complied and will comply
with all applicable federal and state securities laws in connection with the offer, issuance and sale of the Preferred Shares hereunder.
Neither the Company nor anyone acting on its behalf, directly or indirectly, has sold, offered to sell or solicited offers to buy
any of the Preferred Shares, or similar securities to, or solicited offers with respect thereto from, or entered into any preliminary
conversations or negotiations relating thereto with, any person, or has taken or will take any action so as to bring the issuance
and sale of any of the Preferred Shares under the registration provisions of the Securities Act and applicable state securities
laws, and neither the Company nor any of its affiliates, nor any person acting on its or their behalf, has engaged in any form
of general solicitation or general advertising (within the meaning of Regulation D under the Securities Act) in connection with
the offer or sale of any of the Preferred Shares.

 

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(x)    Governmental
Approvals. Except for the filing of any notice subsequent to the Closing Date that may be required under applicable state and/or
federal securities laws (which if required, shall be filed on a timely basis), including the filing of a Form D and the filing
of the Certificate of Designation with the Secretary of State for the State of Delaware, no authorization, consent, approval, license,
exemption of, filing or registration with any court or governmental department, commission, board, bureau, agency or instrumentality,
domestic or foreign, is or will be necessary for, or in connection with, the execution or delivery of the Preferred Shares for
the performance by the Company of its obligations under the Transaction Documents.

 

(y)    Employees.
The Company has no collective bargaining arrangements or agreements covering any of its employees. Except as set forth on Schedule
2.01(y) hereto, the Company has no employment contract, agreement regarding proprietary information, non-competition agreement,
non-solicitation agreement, confidentiality agreement, or any other similar contract or restrictive covenant, relating to the right
of any officer, employee or consultant to be employed or engaged by the Company. No officer, consultant or key employee of the
Company whose termination, either individually or in the aggregate, could have a Material Adverse Effect, has terminated or, to
the knowledge of the Company, has any present intention of terminating his or her employment or engagement with the Company.

 

(z)    Absence
of Certain Developments. Except as set forth on Schedule 2.01(z) hereto, since December 31, 2012 except as disclosed
in the Form 10-K or in the Information Statement filed with the Commission on December 28, 2012 pursuant to Section 14(c) of the
Exchange Act, the Company has not:

 

(i)   issued any stock,
bonds or other corporate securities or any rights, options or warrants with respect thereto;

 

(ii)   borrowed any amount
or incurred or become subject to any liabilities (absolute or contingent) in excess of $5,000, except current liabilities incurred
in the ordinary course of business that are comparable in nature and amount to the current liabilities incurred in the ordinary
course of business during the comparable portion of its prior fiscal year, as adjusted to reflect the current nature and volume
of the Company’s business;

 

(iii)   discharged or
satisfied any material lien or encumbrance or paid any material obligation or liability (absolute or contingent), other than current
liabilities paid in the ordinary course of business;

 

(iv)   declared or made
any payment or distribution of cash or other property to shareholders with respect to its stock, or purchased or redeemed, or made
any agreements so to purchase or redeem, any shares of its capital stock;

 

(v)   sold, assigned or
transferred any other tangible assets, or canceled any material debts or claims, except in the ordinary course of business;

 

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(vi)   sold, assigned
or transferred any material patent rights, trademarks, trade names, copyrights, trade secrets or other intangible assets or intellectual
property rights, or disclosed any proprietary confidential information to any person except to customers in the ordinary course
of business;

 

(vii)   suffered any substantial
losses or waived any rights of material value, whether or not in the ordinary course of business, or suffered the loss of any material
amount of prospective business from an existing customer;

 

(viii)   made any changes
in employee compensation except in the ordinary course of business and consistent with past practices;

 

(ix)   made capital expenditures
or commitments therefor that aggregate in excess of $5,000;

 

(x)   entered into any
other contract or agreement involving payment obligations of more than $5,000 other than in the ordinary course of business, or
entered into any other material contract or agreement involving payment obligations of more than $5,000 or performable over a period
of more than one year, whether or not in the ordinary course of business;

 

(xi)   made charitable
contributions or pledges;

 

(xii)   suffered any material
damage, destruction or casualty loss, whether or not covered by insurance;

 

(xiii)   experienced any
material problems with labor or management in connection with the terms and conditions of their employment; or

 

(xiv)   entered into an
agreement, written or otherwise, to take any of the foregoing actions.

 

(aa)   Reserved.

 

(bb)   ERISA.
No liability to the Pension Benefit Guaranty Corporation has been incurred with respect to any Plan (as defined below) by the Company
that is or would be materially adverse to the Company. The execution and delivery of this Agreement and the issuance and sale of
the Preferred Shares will not involve any transaction that is subject to the prohibitions of Section 406 of ERISA or in connection
with which a tax could be imposed pursuant to Section 4975 of the Internal Revenue Code of 1986, as amended (the “Code”),
provided that, if any of the Purchasers, or any Person that owns a beneficial interest in any of the Purchasers, is an “employee
pension benefit plan” (within the meaning of Section 3(2) of ERISA) with respect to which the Company is a “party in
interest” (within the meaning of Section 3(14) of ERISA), the requirements of Sections 407(d)(5) and 408(e) of ERISA, if
applicable, are met. As used in this Section 2.01(bb), the term “Plan” shall mean an “employee pension
benefit plan” (as defined in Section 3 of ERISA) that is or has been established or maintained, or to which contributions
are or have been made, by the Company or by any trade or business, whether or not incorporated, which, together with the Company
is under common control, as described in Section 414(b) or (c) of the Code.

 

(cc)   DTC
Status. The Company’s transfer agent is a participant in, and the Common Stock is eligible for transfer pursuant to the
Depository Trust Company Automated Securities Transfer Program.

 

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(dd)   No
Integrated Offering. Except as disclosed on Schedule 2.01(dd), neither the Company, nor any of its affiliates, nor any
person acting on its behalf, has directly or indirectly made any offers or sales of any security or solicited any offers to buy
any security under circumstances that would cause the offering of the Preferred Shares pursuant to this Agreement to be integrated
with prior offerings by the Company for purposes of the Securities Act that would prevent the Company from selling the Preferred
Shares pursuant to Rule 506 under the Securities Act, or any applicable exchange-related shareholder approval provisions, nor will
the Company or any of its affiliates take any action or steps that would cause the offering of the Preferred Shares to be integrated
with other offerings. The Company does not have any registration statement pending or effective before the Commission or currently
under the Commission’s review.

 

(ee)   Sarbanes-Oxley
Act. The Company is in compliance with the provisions of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”),
if applicable, and the rules and regulations promulgated thereunder that are effective, and intends to comply with other applicable
provisions of the Sarbanes-Oxley Act and the rules and regulations promulgated thereunder upon the effectiveness of such provisions.

 

(ff)   Independent
Nature of Purchasers. The Company acknowledges that the obligations of each Purchaser under the Transaction Documents are several
and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance
of the obligations of any other Purchaser under the Transaction Documents. The Company acknowledges that to the best of its knowledge,
the decision of each Purchaser to purchase securities pursuant to this Agreement has been made by such Purchaser independently
of any other purchase and independently of any information, materials, statements or opinions as to the business, affairs, operations,
assets, properties, liabilities, results of operations, condition (financial or otherwise) or prospects of the Company that may
have been made or given by any other Purchaser or by any agent or employee of any other Purchaser, and no Purchaser or any of its
agents or employees shall have any liability to any Purchaser (or any other person) relating to or arising from any such information,
materials, statements or opinions. The Company acknowledges that nothing contained herein, or in any Transaction Document, and
no action taken by any Purchaser pursuant hereto or thereto, shall be deemed to constitute the Purchasers as a partnership, an
association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in
concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents. The Company
acknowledges that 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. The Company acknowledges that it has elected
to provide all Purchasers with the same terms and Transaction Documents for the convenience of the Company and not because it was
required or requested to do so by the Purchasers.

 

(gg)   Listing.
The Company’s common stock is quoted on the OTC Bulletin Board (“OTCBB”) under the symbol GDSW. The Company
has not received any oral or written notice that its common stock is not eligible nor will become ineligible for quotation on the
OTCBB nor that its common stock does not meet all requirements for the continuation of such quotation. The Company satisfies all
the requirements for the continued quotation of its common stock on the OTCBB. The Company has filed with the Commission a Form
8-A to become subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act. As of the Closing Date, the Company
will be subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act.

 

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

 

(ii)   Foreign
Corrupt Practices. The Company nor to the knowledge of the Company, any agent or other person acting on behalf of the Company,
has (i) directly or indirectly, used any corporate 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.

 

(jj)   Off-Balance
Sheet Arrangements. There is no transaction, arrangement, or other relationship between the Company and an unconsolidated or
other off balance sheet entity that is not disclosed in its financial statements that should be disclosed in accordance with GAAP
and that would be reasonably likely to have a Material Adverse Effect.

 

(kk)   Manipulation
of Price. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly, any
action designed to cause or to result or that could reasonably be expected to cause or result, in the stabilization or manipulation
of the price of any security of the Company to facilitate the sale or resale of any of the Preferred Shares or (ii) other than
any placement agent, sold, bid for, purchased, or paid any compensation for soliciting purchases of, any of the Preferred Shares.

 

(ll)   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 and
the Company is current with respect to any fees owed to its accountants and lawyers which could affect the Company’s ability
to perform any of its obligations under any of the Transaction Documents. The Company’s accountants are set forth in the
Form 10-K. To the Company’s knowledge, such accountants are an independent registered public accounting firm as required
by the Securities Act.

 

(mm)   Material
Non-Public Information. Except with respect to the transactions contemplated hereby that will be publicly disclosed pursuant
to Section 3.13 hereto, the Company has not provided any Purchaser or its agents or counsel with any information that the Company
believes constitutes material non-public information.

 

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(nn)   Solvency.
Based on the financial condition of the Company as of the Closing Date (and assuming that the Closing shall have occurred), (i)
the Company’s fair saleable value of its assets exceeds the amount that will be required to be paid on or in respect of the
Company’s existing debts and other liabilities (including known contingent liabilities) as they mature, (ii) the Company’s
assets do not constitute unreasonably small capital to carry on its business for the current fiscal year as now conducted and as
proposed to be conducted including its capital needs taking into account the particular capital requirements of the business conducted
by the Company, and projected capital requirements and capital availability thereof, and (iii) the current cash flow of the Company,
together with the proceeds the Company would receive, were it to liquidate all of its assets, after taking into account all anticipated
uses of the cash, would be sufficient to pay all amounts on or in respect of its debt when such amounts are required to be paid.
The Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing
and amounts of cash to be payable on or in respect of its debt).

 

(oo)   Survival.
The foregoing representations and warranties shall survive the Closing Date.

 

Section 2.02   Representations
and Warranties of the Purchasers. Each of the Purchasers hereby makes the following representations and warranties to the Company
with respect solely to itself and not with respect to any other Purchaser:

 

(a)   Organization
and Standing of the Purchasers. If the Purchaser is an entity, such Purchaser is a corporation, limited liability company or
partnership duly incorporated or organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation
or organization.

 

(b)   Authorization
and Power. Each Purchaser has the requisite power and authority to enter into and perform this Agreement and to purchase the
Preferred Shares being sold to it hereunder. The execution, delivery and performance of this Agreement by such Purchaser and the
consummation by it of the transactions contemplated hereby have been duly authorized by all necessary corporate or partnership
action, and no further consent or authorization of such Purchaser or its Board of Directors, shareholders, or partners, as the
case may be, is required. This Agreement has been duly authorized, executed and delivered by such Purchaser and constitutes, or
shall constitute when executed and delivered, a valid and binding obligation of the Purchaser enforceable against the Purchaser
in accordance with the terms thereof.

 

(c)   Purchase
For Own Account. Each Purchaser is acquiring the Preferred Shares solely for its own account and not with a view to or for
sale in connection with distribution of such Preferred Shares in violation of the Securities Act. Each Purchaser does not have
a present intention to sell the Preferred Shares, nor a present arrangement (whether or not legally binding) or intention to effect
any distribution of the Preferred Shares to or through any Person; provided, however, that by making the representations
herein and subject to Section 2.02(g) below, such Purchaser does not agree to hold the Preferred Shares for any minimum or other
specific term and reserves the right to dispose of the Preferred Shares at any time in accordance with federal and state securities
laws applicable to such disposition. Each Purchaser acknowledges that it is able to bear the financial risks associated with an
investment in the Preferred Shares and that it has been given full access to such records of the Company and to the officers of
the Company and received such information as it has deemed necessary or appropriate to conduct its due diligence investigation
and has sufficient knowledge and experience in investing in companies similar to the Company in terms of the Company’s stage
of development so as to be able to evaluate the risks and merits of its investment in the Company.

 

(d)   Status
of Purchasers. Such Purchaser is an “accredited investor” as defined in Regulation D promulgated under the Securities
Act and as indicated on the attached investor questionnaire. Such Purchaser is not required to be registered as a broker-dealer
under Section 15 of the Exchange Act and such Purchaser is not a broker-dealer.

 

    	- 13 -

    	 

    

 

 

(e)   Opportunities
for Additional Information. Each Purchaser acknowledges that such Purchaser has had the opportunity to ask questions of and
receive answers from, or obtain additional information from, the executive officers of the Company concerning the financial and
other affairs of the Company, and to the extent deemed necessary in light of such Purchaser’s personal knowledge of the Company’s
affairs, such Purchaser has asked such questions and received answers to the full satisfaction of such Purchaser, and such Purchaser
desires to invest in the Company. Neither such inquiries nor any other investigation conducted by or on behalf of such Purchaser
or its representatives or counsel shall modify, amend or affect such Purchaser’s right to rely on the truth, accuracy and
completeness of the Company’s representations and warranties contained in the Transaction Documents.

 

(f)   No
General Solicitation. Each Purchaser acknowledges that the Preferred Shares were not offered to such Purchaser by means of
any form of general or public solicitation or general advertising, or publicly disseminated advertisements or sales literature,
including (i) any advertisement, article, notice or other communication published in any newspaper, magazine, or similar media,
or broadcast over television or radio or (ii) any seminar or meeting to which such Purchaser was invited by any of the foregoing
means of communications.

 

(g)   Rule
144. Purchaser understands that the Preferred Shares must be held indefinitely unless such Preferred Shares are registered
under the Securities Act or an exemption from registration is available. Purchaser acknowledges that Purchaser is familiar with
Rule 144 of the rules and regulations of the Commission, as amended, promulgated pursuant to the Securities Act (“Rule
144”), and that such person has been advised that Rule 144 permits resales only under certain circumstances. Purchaser
understands that to the extent that Rule 144 is not available, Purchaser will be unable to sell any Preferred Shares without either
registration under the Securities Act or the existence of another exemption from such registration requirement.

 

(h)   General.
Purchaser understands that the Preferred Shares are being offered and sold in reliance on a transactional exemption from the registration
requirement of federal and state securities laws and the Company is relying upon the truth and accuracy of the representations,
warranties, agreements, acknowledgments and understandings of such Purchaser set forth herein in order to determine the applicability
of such exemptions and the suitability of such Purchaser to acquire the Preferred Shares.

 

(i)   Survival.
The foregoing representations and warranties shall survive the Closing Date.

 

Article
III.

Covenants

 

The Company covenants with
the Purchasers as follows, which covenants are for the benefit of the Purchasers and their permitted assignees.

 

Section 3.01   Legend.
Each certificate representing the Preferred Shares shall be stamped or otherwise imprinted with a legend substantially in the following
form (in addition to any legend required by applicable state securities or “blue sky” laws):

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE
(THE “SECURITIES”) HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”)
OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT
AND UNDER APPLICABLE STATE SECURITIES LAWS OR THE COMPANY SHALL HAVE RECEIVED AN OPINION OF COUNSEL THAT REGISTRATION OF SUCH SECURITIES
UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.

 

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Section 3.02   Securities
Compliance. The Company shall notify the Commission in accordance with its rules and regulations, of the transactions contemplated
by any of the Transaction Documents, including filing a Form D with respect to the Preferred Shares as required under Regulation
D, and shall take all other necessary action and proceedings as may be required and permitted by applicable law, rule and regulation,
for the legal and valid issuance of the Preferred Shares to the Purchasers or subsequent holders. The Company shall take such action
as the Company shall reasonably determine is necessary to be taken in order to obtain an exemption for or to qualify the Preferred
Shares for sale to the Purchasers at the Closing pursuant to this Agreement under applicable securities or “Blue Sky”
laws of the states of the United States and make all filings and reports relating to the offer and sale of the Preferred Shares
required under applicable securities or “Blue Sky” laws. In addition, the Company shall take all such actions and make
any filings as may be required under applicable law in connection with the offer and sale of any Preferred Shares in any foreign
jurisdictions.

 

Section 3.03   Reporting
Obligations. So long as any Purchaser holds any Preferred Shares (the “Public Reporting Period”), the Company
shall comply in all respects with its reporting and filing obligations under the Exchange Act and shall not take any action or
file any document (whether or not permitted by the Securities Act or the rules promulgated thereunder) to terminate or suspend
its reporting and filing obligations under the Exchange Act or Securities Act, except as permitted herein. Upon the request of
the Purchasers, the Company shall deliver to the Purchasers a written certification of a duly authorized officer as to whether
it has complied with such requirements. During any period in which the Company is not subject to the reporting requirements of
Section 13 or 15(d) of the Exchange Act and any Preferred Shares are outstanding, the Company will provide holders of Preferred
Shares, without cost, copies of SEC Reports that the Company would have been required to file pursuant to Section 13 or 15(d) of
the Exchange Act if the Company was subject to such provisions or, alternatively, the Company will voluntarily file SEC Reports
as if the Company was subject to Section 13 or 15(d) of the Exchange Act.

 

Section 3.04   Compliance
with Laws. The Company shall comply, and cause each subsidiary to comply, with all applicable laws, rules, regulations and
orders, noncompliance with which could have a Material Adverse Effect.

 

Section 3.05   Keeping
of Records and Books of Account. The Company shall keep and cause each subsidiary to keep adequate records and books of account,
in which complete entries will be made in accordance with GAAP consistently applied, reflecting all financial transactions of the
Company and its subsidiaries, and in which, for each fiscal year, all proper reserves for depreciation, depletion, obsolescence,
amortization, taxes, bad debts and other purposes in connection with its business shall be made.

 

Section 3.06   Amendments.
The Company shall not amend or waive any provision of the Certificate or Bylaws of the Company in any way that would adversely
affect the liquidation preferences, dividends rights, conversion rights or voting rights of the Preferred Shares; provided,
however, that any other class or series of equity securities which by its terms shall rank senior to the Preferred Shares
may be created and issued with the prior written consent of a Majority in Interest (as defined in Section 6.11).

 

    	- 15 -

    	 

    

  

Section 3.07   Other
Agreements. The Company shall not enter into any agreement in which the terms of such agreement would restrict or impair the
right or ability to perform of the Company under any Transaction Document, including, without limitation, the payment of dividends
on the Preferred Shares.

 

Section 3.08   Use
of Proceeds. The net proceeds from the sale of the Preferred Shares hereunder shall be used by the Company for the purposes
set forth on Schedule 3.08; provided, however, the net proceeds from the sale of the Preferred Shares hereunder
shall not be used to redeem any Common Stock or securities convertible, exercisable or exchangeable into Common Stock.

 

Section 3.09   Disclosure
of Material Information. The Company covenants and agrees that neither it nor any other person acting on its behalf has provided
or 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 consenting to the delivery of such information.
The Company understands and confirms that each Purchaser shall be relying on the foregoing representations in effecting transactions
in securities of the Company.

 

Section 3.10   Integration.
The Company shall not, and shall use its best efforts to ensure that no affiliate of the Company shall, 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 Preferred Shares in a manner that would require the registration under the Securities
Act of the sale of the Preferred Shares to the Purchasers.

 

Section 3.11   Disclosure
of Transaction. The Company shall file with the Commission a Current Report on Form 8-K (the “Form 8-K”)
describing the material terms of the transactions contemplated hereby (and attaching as exhibits thereto this Agreement and the
Certificate of Designation) on the first Trading Day following the Closing Date, which Form 8-K shall be subject to prior review
and comment by the Purchasers. The Purchasers shall be provided with at least two Trading Days to review the Form 8-K prior to
its filing. “Trading Day” means any day during which the New York Stock Exchange (or other principal exchange
on which the Common Stock is traded) shall be open for trading.

 

Section 3.12   Variable
Offering Restriction. Subject to the consent of a Majority in Interest, for so long as Preferred
Shares are outstanding, the Company will not enter into or exercise any Equity Line of Credit or similar agreement, nor issue nor
agree to issue any floating or Variable Priced Equity Linked Instruments nor any of the foregoing or equity with price reset rights
(collectively, the “Variable Rate Restrictions”). For purposes hereof, “Equity Line of Credit”
shall include any transaction involving a written agreement between the Company and an investor or underwriter whereby the Company
has the right to “put” its securities to the investor or underwriter over an agreed period of time and at an agreed
price or price formula, and “Variable Priced Equity Linked Instruments” shall include: (A) any debt or equity
securities which are convertible into, exercisable or exchangeable for, or carry the right to receive additional shares of Common
Stock either (1) at any conversion, exercise or exchange rate or other price that is based upon and/or varies with the trading
prices of or quotations for Common Stock at any time after the initial issuance of such debt or equity security, or (2) with a
fixed conversion, exercise or exchange price that is subject to being reset at some future date at any time after the initial issuance
of such debt or equity security due to a change in the market price of the Company’s Common Stock since date of initial issuance,
and (B) any amortizing convertible security which amortizes prior to its maturity date, where the Company is required or has the
option to (or any investor in such transaction has the option to require the Company to) make such amortization payments in shares
of Common Stock which are valued at a price that is based upon and/or varies with the trading prices of or quotations for Common
Stock at any time after the initial issuance of such debt or equity security (whether or not such payments in stock are subject
to certain equity conditions).

 

    	- 16 -

    	 

    

  

Section 3.13   Offering
Restrictions. For so long as any Preferred Shares are outstanding, except for the Excepted Issuances (defined below), the Company
will not enter into an agreement to issue nor issue any equity, convertible debt or other securities convertible into Common Stock
or equity of the Company nor modify any of the foregoing which may be outstanding at anytime, without the prior written consent
of a Majority in Interest.

 

“Excepted Issuances”
shall mean (i) full or partial consideration in connection with a bona fide strategic merger, acquisition,
consolidation or purchase of substantially all of the securities or assets of a corporation or other entity so long as such issuances
are not for the purpose of raising capital and which holders of such securities or debt are not at any time granted registration
rights, and which have been approved by a Majority in Interest, (ii) the Company’s issuance of securities or debt in connection
with bona fide strategic license agreements and other bona fide partnering arrangements so long as such issuances are not for the
purpose of raising capital and which holders of such securities or debt are not at any time granted registration rights, and which
have been approved by a Majority in Interest, (iii) the Company’s issuance of Common Stock or the issuances or grants of
options to purchase Common Stock to employees, directors, and consultants, pursuant to plans described on Schedule 3.13
, (iv) securities upon the exercise or exchange of or conversion of any securities exercisable or exchangeable for or convertible
into shares of Common Stock issued and outstanding on the date of this Agreement on the terms disclosed in the Commission Documents
and which securities are also described on Schedule 3.13, (v) up to an aggregate of 10,000 Preferred Shares at $100
per Preferred share, and (vi) Common Stock to be issued in the Qualified Offering (as defined in Section 3.16).

 

Section 3.14   Negative
Covenants. So long as at least 1,000 shares of Preferred Stock are outstanding, without the consent of the holders of a Majority
in Interest, the Company will not directly or indirectly:

 

(a)create,
incur, assume or suffer to exist any pledge, hypothecation, assignment, deposit arrangement, lien, charge, claim, security interest,
security title, mortgage, security deed or deed of trust, easement or encumbrance, or preference, priority or other security agreement
or preferential arrangement of any kind or nature whatsoever (including any lease or title retention agreement, any financing lease
having substantially the same economic effect as any of the foregoing, and the filing of, or agreement to give, any financing statement
perfecting a security interest under the Uniform Commercial Code or comparable law of any jurisdiction) (each, a “Lien”)
upon any of its property, whether now owned or hereafter acquired except for: (a) Liens imposed by law for taxes that are not yet
due or are being contested in good faith and for which adequate reserves have been established in accordance with generally accepted
accounting principles; (b) carriers’, warehousemen’s, mechanic’s, material men’s, repairmen’s and
other like Liens imposed by law, arising in the ordinary course of business and securing obligations that are not overdue by more
than 30 days or that are being contested in good faith and by appropriate proceedings; (c) pledges and deposits made in the ordinary
course of business in compliance with workers’ compensation, unemployment insurance and other social security laws or regulations;
(d) deposits to secure the performance of bids, trade contracts, leases, statutory obligations, surety and appeal bonds, performance
bonds and other obligations of a like nature, in each case in the ordinary course of business; (e) Liens created with respect to
the financing of the purchase of new property in the ordinary course of the Company’s business up to the amount of the purchase
price of such property; (f) easements, zoning restrictions, rights-of-way and similar encumbrances on real property imposed by
law or arising in the ordinary course of business that do not secure any monetary obligations and do not materially detract from
the value of the affected property and (g) Liens otherwise set forth on Schedule 3.14(a) hereto;

 

    	- 17 -

    	 

    

  

(b)amend
its articles of incorporation, bylaws or its charter documents so as to materially and adversely affect any rights of the Purchasers;

 

(c)repay,
repurchase or offer to repay, repurchase or otherwise acquire or make any cash dividend or cash distribution in respect of any
of its Common Stock, preferred stock, or other equity securities other than to the extent permitted or required under the Transaction
Documents; or

 

(d)except
as set forth on Schedule 3.14(d) hereto, engage in any transactions with any officer, director, employee or any Affiliate
of the Company, including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing
for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee
or, to the knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial interest
or is an officer, director, trustee or partner, in each case in excess of $100,000 (excluding sales commissions) other than (i)
for payment of salary, or fees for services rendered, pursuant to and on the terms of a written contract in effect at least five
days prior to the Closing Date, a copy of which has been provided to the Purchaser at least four days prior to the Closing Date,
which contracts may be extended on terms customary and reasonable within the marketplace, (ii) reimbursement for authorized expenses
incurred on behalf of the Company, (iii) for other employee benefits, including stock option agreements under any stock option
plan of the Company disclosed in the Commission Documents, or (iv) other transactions disclosed in the Commission Documents.

 

3.15   DTC Program.
So long as at least 500 shares of Preferred Stock are outstanding, the Company will employ as the transfer agent for the Common
Stock a participant in the Depository Trust Company Automated Securities Transfer Program.

 

3.16   Qualified Offering.
Not later than the sooner of (i) June 28, 2013, or (ii) five business days after the day the Company satisfies the asset coverage
requirements of Section 18(h) and 61 of the Investment Company Act of 1940, the Company will elect to be a business development
company (“BDC”) under the Investment Company Act of 1940, and file with the Commission a Form N-54 in connection
therewith. In any event, not later than July 10, 2013, the Company will satisfy all of the requirements of a BDC and be in compliance
with all such requirements. In order to satisfy requirements in connection with the filing of Form N-54 and qualifying as a business
development company, the Company will raise not less than $1,000,000 from the sale of Common Stock on the terms and conditions
set forth in Schedule 3.16 (the “Qualified Offering”). The closing of the Qualified Offering must take
place prior to June 28, 2013.

 

3.17   Articles and
Bylaws. Annexed hereto as Exhibit C are true and accurate copies of the Company’s Articles of Incorporation and
Bylaws in effect on the Closing Date.

 

Article
IV.

CONDITIONS

 

Section 4.01   Conditions
Precedent to the Obligation of the Company to Sell the Preferred Shares. The obligation hereunder of the Company to issue and
sell the Preferred Shares to the Purchasers is subject to the satisfaction or waiver, at or before the Closing, of each of the
conditions set forth below. These conditions are for the Company’s sole benefit and may be waived by the Company at any time
in its sole discretion.

 

    	- 18 -

    	 

    

 

 

(a)   Accuracy
of Each Purchaser’s Representations and Warranties. The representations and warranties of each Purchaser shall be true
and correct in all respects as of the date when made and as of the Closing Date as though made at that time, except for representations
and warranties that are expressly made as of a particular date, which shall be true and correct in all material respects as of
such date.

 

(b)   Performance
by the Purchasers. Each Purchaser shall have performed, satisfied and complied in all respects with all covenants, agreements
and conditions required by this Agreement to be performed, satisfied or complied with by such Purchaser at or prior to the Closing.

 

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

 

(d)   Delivery
of Purchase Price. The Purchase Price for the Preferred Shares shall have been delivered to the Escrow Agent.

 

(e)   Delivery
of Transaction Documents. The Transaction Documents shall have been duly executed and delivered by the Purchasers and, with
respect to the Escrow Agreement, by the Escrow Agent, to the Company.

 

Section 4.02   Conditions
Precedent to the Obligation of the Purchasers to Purchase the Preferred Shares. The obligation hereunder of each Purchaser
to acquire and pay for the Preferred Shares is subject to the satisfaction or waiver, at or before the Closing, of each of the
conditions set forth below. These conditions are for each Purchaser’s sole benefit and may be waived by such Purchaser at
any time in its sole discretion.

 

(a)   Accuracy
of the Company’s Representations and Warranties. Each of the representations and warranties of the Company shall be
true and correct in all respects as of the date when made and as of the Closing Date as though made at that time, except for representations
and warranties that are expressly made as of a particular date, which shall be true and correct in all respects as of such date.

 

(b)   Performance
by the Company. The Company shall have performed, satisfied and complied in all respects with all covenants, agreements and
conditions required by this Agreement to be performed, satisfied or complied with by the Company at or prior to the Closing.

 

(c)   No
Suspension, Etc. Trading in the Company’s Common Stock shall not have been suspended by the Commission or the OTCBB and,
at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg Financial Markets (“Bloomberg”)
shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are reported
by Bloomberg, or on the New York Stock Exchange, nor shall a banking moratorium have been declared either by the United States
or New York State authorities, nor shall there have occurred any material outbreak or escalation of hostilities or other national
or international calamity or crisis of such magnitude in its effect on, or any material adverse change in any financial market
which, in each case, in the judgment of such Purchaser, makes it impracticable or inadvisable to purchase the Preferred Shares.

 

    	- 19 -

    	 

    

 

 

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

 

(e)   No
Proceedings or Litigation. No action, suit or proceeding before any arbitrator or any governmental authority shall have been
commenced, and no investigation by any governmental authority shall have been threatened, against the Company or any subsidiary,
or any of the officers, directors or affiliates of the Company or any subsidiary seeking to restrain, prevent or change the transactions
contemplated by this Agreement, or seeking damages in connection with such transactions.

 

(f)   Certificate
of Designation. The Certificate of Designation in the form of Exhibit A attached hereto shall have been accepted for
filing with the Secretary of State of Delaware.

 

(g)   Certificates.
The Company shall have executed and delivered to the Purchasers at the Closing the certificates for the Preferred Shares in such
denominations as such Purchaser shall request.

 

(h)   Resolutions.
The Board of Directors of the Company shall have adopted resolutions consistent with Section 2.01(b) hereof in the form reasonably
acceptable to the Purchasers (the “Resolutions”).

 

(i)   Escrow
Agreement. The Company and the Escrow Agent shall have executed and delivered the Escrow Agreement to the Purchasers.

 

(j)   Minimum
Escrow Deposit. The Purchasers shall have deposited at least $400,000 into the Escrow Account and shall have delivered executed
signature pages to this Agreement to the Company committing to purchase at least an aggregate of $400,000 of Preferred Shares.

 

(k)   Secretary’s
Certificate. The Company shall have delivered to the Purchasers a secretary’s certificate, dated as of the Closing Date,
as to (i) the Resolutions, (ii) the Articles, (iii) the Bylaws, (iv) the Certificate of Designation, each as in effect at the Closing,
and (v) the authority and incumbency of the officers of the Company executing the Transaction Documents and any other documents
required to be executed or delivered in connection therewith.

 

(l)   Officer’s
Certificate. The Company shall have delivered to the Purchasers a certificate of an executive officer of the Company, dated
as of the Closing Date, confirming the accuracy of the Company’s representations, warranties and covenants as of the Closing
Date and confirming the compliance by the Company with the conditions precedent set forth in this Section 4.02 as of the Closing
Date.

 

(m)   Material
Adverse Effect. Since the date of execution of this Agreement, no event or series of events shall have occurred that reasonably
could have or result in a Material Adverse Effect.

 

(o)   Opinions
of Counsel. At the Closing, the Purchasers shall have received an opinion of counsel to the Company dated the date of the Closing
and in such form as reasonably acceptable to the Purchasers.

 

    	- 20 -

    	 

    

  

Article
V.

Indemnification

 

Section 5.01   General
Indemnity. The Company agrees to indemnify and hold harmless the Purchasers (and their respective directors, officers, managers,
partners, members, shareholders, affiliates, agents, successors and assigns) from and against any and all losses, liabilities,
deficiencies, costs, damages and expenses (including, without limitation, reasonable attorneys’ fees, charges and disbursements)
incurred by the Purchasers as a result of any inaccuracy in or breach of the representations, warranties or covenants made by the
Company herein.

 

Section 5.02   Indemnification
Procedure. Any party entitled to indemnification under this Article V (an “indemnified party”) will give written
notice to the indemnifying party of any matters giving rise to a claim for indemnification; provided, that the failure of any party
entitled to indemnification hereunder to give notice as provided herein shall not relieve the indemnifying party of its obligations
under this Article V except to the extent that the indemnifying party is actually prejudiced by such failure to give notice. In
case any action, proceeding or claim is brought against an indemnified party in respect of which indemnification is sought hereunder,
the indemnifying party shall be entitled to participate in and, unless in the reasonable judgment of the indemnified party a conflict
of interest between it and the indemnifying party may exist with respect to such action, proceeding or claim, to assume the defense
thereof with counsel reasonably satisfactory to the indemnified party. In the event that the indemnifying party advises an indemnified
party that it will contest such a claim for indemnification hereunder, or fails, within thirty (30) days of receipt of any indemnification
notice to notify, in writing, such person of its election to defend, settle or compromise, at its sole cost and expense, any action,
proceeding or claim (or discontinues its defense at any time after it commences such defense), then the indemnified party may,
at its option, defend, settle or otherwise compromise or pay such action or claim. In any event, unless and until the indemnifying
party elects in writing to assume and does so assume the defense of any such claim, proceeding or action, the indemnified party’s
costs and expenses arising out of the defense, settlement or compromise of any such action, claim or proceeding shall be losses
subject to indemnification hereunder. The indemnified party shall cooperate fully with the indemnifying party in connection with
any negotiation or defense of any such action or claim by the indemnifying party and shall furnish to the indemnifying party all
information reasonably available to the indemnified party which relates to such action or claim. The indemnifying party shall keep
the indemnified party fully apprised at all times as to the status of the defense or any settlement negotiations with respect thereto.
If the indemnifying party elects to defend any such action or claim, then the indemnified party shall be entitled to participate
in such defense with counsel of its choice at its sole cost and expense. The indemnifying party shall not be liable for any settlement
of any action, claim or proceeding effected without its prior written consent, which consent shall not be unreasonably withheld.
Notwithstanding anything in this Article V to the contrary, the indemnifying party shall not, without the indemnified party’s
prior written consent, settle or compromise any claim or consent to entry of any judgment in respect thereof which imposes any
future obligation on the indemnified party or which does not include, as an unconditional term thereof, the giving by the claimant
or the plaintiff to the indemnified party of a release from all liability in respect of such claim. The indemnification required
by this Article V shall be made by periodic payments of the amount thereof during the course of investigation or defense, as and
when bills are received or expense, loss, damage or liability is incurred, so long as the indemnified party irrevocably agrees
to refund such moneys if it is ultimately determined by a court of competent jurisdiction that such party was not entitled to indemnification.
The indemnity agreements contained herein shall be in addition to (a) any cause of action or similar rights of the indemnified
party against the indemnifying party or others, and (b) any liabilities the indemnifying party may be subject to pursuant to the
law. To the extent that the foregoing undertaking by the Company is unenforceable for any reason, the Company will make the maximum
contribution to the payment and satisfaction of each of the indemnified liabilities that is permissible under applicable law.

 

    	- 21 -

    	 

    

  

Article
VI.

Miscellaneous

 

Section 6.01   Fees
and Expenses. Except as otherwise set forth in this Agreement and the other Transaction Documents, each party shall pay the
fees and expenses of its advisors, counsel, accountants and other experts, if any, and all other expenses, incurred by such party
incident to the negotiation, preparation, execution, delivery and performance of this Agreement, provided that the Company shall
pay all reasonable attorneys’ and escrow agent out-of-pocket expenses incurred by the Purchasers in connection with the preparation,
negotiation, execution and delivery of this Agreement and the other Transaction Documents and the transactions contemplated thereunder.
The Company and the Purchasers hereby agree that the prevailing party in any suit, action or proceeding arising out of or relating
to the Preferred Shares, this Agreement or the other Transaction Documents, shall be entitled to reimbursement for reasonable legal
fees from the non-prevailing party. The Company shall pay all transfer agent fees, stamp or other similar taxes and duties levied
in connection with issuance of the Preferred Shares.

 

Section 6.02   Specific
Enforcement, Consent to Jurisdiction.

 

(a)   The Company
and the Purchasers acknowledge and agree that irreparable damage would occur in the event that any of the provisions of this Agreement
or the other Transaction Documents were not performed in accordance with their specific terms or were otherwise breached. It is
accordingly agreed that the parties shall be entitled to seek an injunction or injunctions to prevent or cure breaches of the provisions
of this Agreement and to enforce specifically the terms and provisions hereof or thereof, this being in addition to any other remedy
to which any of them may be entitled by law or equity.

 

(b)   Each of
the Company and the Purchasers (i) hereby irrevocably submits to the jurisdiction of the United States District Court sitting in
the Southern District of New York and the courts of the State of New York located in New York county for the purposes of any suit,
action or proceeding arising out of or relating to this Agreement or any of the other Transaction Documents or the transactions
contemplated hereby or thereby and (ii) hereby waives, and agrees not to assert in any such suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of such court, that the suit, action or proceeding is brought in an inconvenient
forum or that the venue of the suit, action or proceeding is improper. Each of the Company and the Purchasers consents to process
being served in any such suit, action or proceeding by mailing a copy thereof 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 in this Section 6.02 shall affect or limit any right to serve process in any other manner permitted by law.

 

Section 6.03   Entire
Agreement; Amendment. This Agreement (including all exhibits and schedules hereto) and the Transaction Documents contain the
entire understanding and agreement of the parties with respect to the matters covered hereby and, except as specifically set forth
herein or in the Transaction Documents, neither the Company nor any of the Purchasers makes any representations, warranty, covenant
or undertaking with respect to such matters and they supersede all prior understandings and agreements with respect to said subject
matter, all of which are merged herein. No provision of this Agreement may be waived or amended other than by a written instrument
signed by the Company and a Majority in Interest, and no provision hereof may be waived other than by a written instrument signed
by the party against whom enforcement of any such amendment or waiver is sought. No such amendment shall be effective to the extent
that it applies to fewer than all of the holders of the Preferred Shares then outstanding. No consideration shall be offered or
paid to any person to amend or consent to a waiver or modification of any provision of any of the Transaction Documents unless
the same consideration is also offered to all of the parties to the Transaction Documents or holders of Preferred Shares, as the
case may be.

 

    	- 22 -

    	 

    

  

Section 6.04   Conversion
Procedure. The form of Notice of Conversion included in the Certificate of Designation sets forth the totality of the procedures
required of the Purchasers in order to convert the Preferred Stock. No additional legal opinion, other information or instructions
shall be required of the Purchasers to convert their Preferred Stock. The Company shall honor conversions of the Preferred Stock
and shall deliver the Common Stock issuable upon conversion of the Preferred Stock in accordance with the terms, conditions and
time periods set forth in the Certificate of Designation.

 

Section 6.05   Notices.
Any notice, demand, request, waiver or other communication required or permitted to be given hereunder shall be in writing and
shall be effective (a) upon hand delivery by telex (with correct answer back received), telecopy, e-mail or facsimile at the address
or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or
the first business day following such delivery (if delivered other than on a business day during normal business hours where such
notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid,
addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications
shall be:

  

	(a)
	 	If to the Company:
	 	 	 
	 	 	Point Capital, Inc. 
	 	 	5 Patriot Centre
	 	 	285 Grand Avenue
	 	 	Englewood, NJ 07631
	 	 	Fax No.: (201) 408-5125 
	 	 	 
	 	 	with copies to: 
	 	 	 
	 	 	David Lubin, Esq.
	 	 	David Lubin & Associates
	 	 	10 Union Avenue, Suite 5
	 	 	Lynbrook, NY 11563
	 	 	Fax No.: (516) 887-8250

  

	(b)		 If to any Purchaser at the
address of such Purchaser set forth on the signature pages hereto, with copies to:
	 	 	 
	 	 	Grushko & Mittman, P.C.
	 	 	515 Rockaway Avenue
	 	 	Valley Stream, New York 11581
	 	 	Attention: Edward M. Grushko, Esq.
	 	 	Fax No.: (212) 697-3575

 

Any party hereto may from
time to time change its address for notices by giving at least ten (10) days written notice of such changed address to the other
party hereto.

 

Section 6.06   Waivers.
No waiver by either party 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 other provisions, 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 accruing to it thereafter.

 

    	- 23 -

    	 

    

  

Section 6.07   Successors
and Assigns; Restrictions on Transfer. This Agreement shall be binding upon and inure to the benefit of the parties and their
successors and assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written
consent of the Purchasers.

 

Section 6.08   No Third
Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors
and assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

Section 6.09  Governing
Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York, without
giving effect to any of the conflicts of law principles which would result in the application of the substantive law of another
jurisdiction. This Agreement shall not be interpreted or construed with any presumption against the party causing this Agreement
to be drafted. Each party hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all rights to a
trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.

 

Section 6.10   Survival.
The representations and warranties of the Company and the Purchasers shall survive the execution and delivery hereof and the Closing
hereunder for the applicable statute of limitations period.

 

Section 6.11   Consent.
As used in this Agreement and the Transaction Documents and any other agreement delivered in connection herewith, “Consent
of the Purchasers” or similar language means the consent of holders of not less than fifty-one percent (51%) of the outstanding
Preferred Shares on the date consent is requested (such Purchasers being a “Majority in Interest”). A Majority
in Interest may consent to take or forebear from any action permitted under or in connection with the Transaction Documents, modify
any Transaction Documents or waive any default or requirement applicable to the Company, subsidiaries or Purchasers under the Transaction
Documents provided the effect of such action does not waive any accrued interest or damages and further provided that the relative
rights of the Purchasers to each other remains unchanged.

 

Section 6.12    Successor
Laws. References in the Transaction Documents to laws, rules, regulations and forms shall also include successors to and functionally
equivalent replacements of such laws, rules, regulations and forms.

 

Section 6.13   Maximum
Liability. In no event shall the liability of the Purchasers or permitted successor hereunder or
under any Transaction Document or other agreement delivered in connection herewith be greater in amount than the dollar amount
of the net proceeds actually received by such Purchaser or successor upon the sale of the Preferred Shares.

 

Section 6.14   Counterparts.
This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original
and, all of which taken together shall constitute one and the same Agreement and shall become effective when counterparts have
been signed by each party and delivered to the other parties hereto, it being understood that all parties need not sign the same
counterpart. In the event that any signature is delivered by facsimile transmission or e-mail, such signature shall create a valid
binding obligation of the party executing (or on whose behalf such signature is executed) the same with the same force and effect
as if such facsimile or e-mail signature were the original thereof.

 

    	- 24 -

    	 

    

  

Section 6.15   Publicity.
The Company agrees that it will not disclose, and will not include in any public announcement, the name of the Purchasers without
the consent of the Purchasers unless and until such disclosure is required by law or applicable regulation, and then only to the
extent of such requirement.

 

Section 6.16   Severability.
The provisions of this Agreement and the Transaction Documents are severable and, in the event that any court of competent jurisdiction
shall determine that any one or more of the provisions or part of the provisions contained in this Agreement or the Transaction
Documents shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision or part of a provision of this Agreement or the Transaction Documents and
such provision shall be reformed and construed as if such invalid or illegal or unenforceable provision, or part of such provision,
had never been contained herein, so that such provisions would be valid, legal and enforceable to the maximum extent possible.

 

Section 6.17   Further
Assurances. From and after the date of this Agreement, upon the request of any Purchaser or the Company, each of the Company
and the Purchasers shall execute and deliver such instruments, documents and other writings as may be reasonably necessary or
desirable to confirm and carry out and to effectuate fully the intent and purposes of the Transaction Documents.

 

Section 6.18   Headings.
The article, section and subsection headings in this Agreement are for convenience only and shall not constitute a part of this
Agreement for any other purpose and shall not be deemed to limit or affect any of the provisions hereof.

 

[SIGNATURE PAGE FOLLOWS]

 

    	- 25 -

    	 

    

  

[COMPANY SIGNATURE PAGES TO

SERIES A PREFERRED STOCK PURCHASE AGREEMENT]

 

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

  

	 	POINT CAPITAL, INC.
	 	 	 
	 	By:	/s/
    Richard A. Brand 
	 	 	Name: Richard A. Brand
	 	 	Title: Chief Executive Officer

 

    	- 26 -

    	 

    

  

[PURCHASER SIGNATURE PAGES TO

SERIES A PREFERRED STOCK PURCHASE AGREEMENT]

 

IN WITNESS WHEREOF, the
undersigned have caused this 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 Purchaser:	 

 

	Fax Number of Purchaser:	 

 

	Address for Notice of Purchaser:
	 
	 
	 
	 
	Address for Delivery of Securities for Purchaser (if not same as above):	 
	 
	 
	 
	 

 

	Subscription Amount: $	 

 

	Preferred Shares:	 

 

    	- 27 -

    	 

    

  

INVESTOR QUESTIONNAIRE

 

To: Point Capital, Inc. (the “Company”)

 

The information in this
Accredited Investor Questionnaire (this “Questionnaire”) is being furnished to allow the Company to confirm
that the undersigned is an “accredited investor,” as defined in Rule 501(a) of the Securities Act of 1933, as amended
(the “Securities Act”).

 

By signing the Securities
Purchase Agreement to which this Questionnaire is attached, you will be authorizing the Company to provide a completed copy of
this Questionnaire to such parties as the Company deems appropriate in order to ensure that the offer and sale of the Company’s
securities will not result in a violation of the Securities Act or the securities laws of any state and that you otherwise satisfy
the suitability standards applicable to purchasers of the Securities. All potential investors must answer all questions and complete
this Questionnaire in full.

 

I.            The undersigned hereby represents that
he, she or it is (please initial each category applicable to you in the space provided):

 

	_____	(1)	A bank as defined in Section 3(a)(2) of the Securities Act, or any savings and loan association or other institution as defined in Section 3(a)(5)(A) of the Securities Act whether acting in its individual or fiduciary capacity;
	 	 	 
	_____	(2)	A broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934, as amended;
	 	 	 
	_____	(3)	An insurance company as defined in Section 2(13) of the Securities Act;
	 	 	 
	_____	(4)	An investment company registered under the Investment Company Act of 1940 or a business development company as defined in Section 2(a)(48) of that Act;
	 	 	 
	_____	(5)	A Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958;
	 	 	 
	_____	(6)	A plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5,000,000;
	 	 	 
	_____	(7)	An employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974, if the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such act, which is either a bank, savings and loan association, insurance company, or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000 or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors;
	 	 	 
	_____	(8)	A private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940;

 

    	- 28 -

    	 

    

 

	_____	(9)	An organization described in Section 501(c)(3) of the Internal Revenue Code, a Massachusetts or similar business trust, or a partnership, not formed for the specific purpose of acquiring the Securities, with total assets in excess of $5,000,000;
	 	 	 
	_____	(10)	A trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the Shares, whose purchase is directed by a sophisticated person who has such knowledge and experience in financial and business matters that such person is capable of evaluating the merits and risks of investing in the Company;
	 	 	 
	_____	(11)	A natural person whose individual net worth (total assets minus total liabilities), or joint net worth with that person’s spouse, at the time of his purchase exceeds $1,000,000, excluding the value of the primary residence of such person;
	 	 	 
	_____	(12)	A natural person who had an individual income in excess of $200,000 in each of the two most recent years, or joint income with that person’s spouse in excess of $300,000, in each of those years, and has a reasonable expectation of reaching the same income level in the current year;
	 	 	 
	_____	(13)	An executive officer or director of the Company;
	 	 	 
	_____	(14)	An entity in which all of the equity owners qualify under any of the above subparagraphs. If the undersigned belongs to this investor category only, list below the equity owners of the undersigned, and the investor category which each such equity owner satisfies.

 

II.     Exceptions to the representations
and warranties made in Section 4(e) of the Securities Purchase Agreement (if no exceptions, write “none” – if
left blank, the response will be deemed to be “none”):

	 
	 

 

    	- 29 -

    	 

    

  

EXHIBIT A to the

SERIES A PREFERRED STOCK PURCHASE AGREEMENT
FOR

POINT CAPITAL, INC.

 

FORM OF CERTIFICATE OF DESIGNATION

 

    	- 30 -

    	 

    

  

EXHIBIT B to the

SERIES A PREFERRED STOCK PURCHASE AGREEMENT
FOR

POINT CAPITAL, INC. 

 

ESCROW AGREEMENT 

 

    	- 31 -

    	 

    

 

EXHIBIT C to the

SERIES A PREFERRED STOCK PURCHASE AGREEMENT
FOR

POINT CAPITAL, INC. 

 

NEW ARTICLES AND BYLAWS

 

    	- 32 -State
    of Delware
	 	Secretary
    of State
	 	Division
    of Corporations
	 	Delivered
    02:39 PM 03/18/2013
		Filed 02:39 PM 03/18/2013
	 	SRV
    130326954 - 5251646 FILE

 

POINT
CAPITAL, INC.

 

CERTIFICATE
OF DESIGNATION OF PREFERENCES, 

RIGHTS
AND LIMITATIONS

OF

SERIES
A CONVERTIBLE PREFERRED STOCK

 

PURSUANT
TO SECTION 151 OF THE 

Delaware
GENERAL CORPORATION LAW

 

The
undersigned, Richard A. Brand, Chief Executive Officer, does hereby certify that:

 

1.    He
is the Chief Executive Officer of Point Capital, Inc.,a Delaware corporation (the
“Corporation”).

 

2.    The
Corporation is authorized to issue five million (5,000,000) shares of preferred stock, none of which are
presently issued and outstanding.

 

3.    The
following resolutions were duly adopted by the board of directors of the Corporation (the “Board of Directors”):

 

WHEREAS,
the certificate of incorporation of the Corporation provides for a class of its authorized stock known as preferred stock, consisting
of 5,000,000 shares, $0.0001 par value per share, issuable from time to time in one or more series;

 

WHEREAS,
the Board of Directors is authorized to fix the dividend rights, dividend rate, voting rights, conversion rights, rights and terms
of redemption and liquidation preferences of any wholly unissued series of preferred stock and the number of shares constituting
any series and the designation thereof, of any of them; and

 

WHEREAS,
it is the desire of the Board of Directors, pursuant to its authority as aforesaid, to fix the rights, preferences, restrictions
and other matters relating to a series of the preferred stock, which shall consist of, except as otherwise set forth in the Purchase
Agreement, up to 1,000,000 shares of the preferred stock which the Corporation has the authority to issue, as follows:

 

NOW,
THEREFORE, BE IT RESOLVED, that the Board of Directors does hereby provide for the issuance of a series of preferred stock for
cash or exchange of other securities, rights or property and does hereby fix and determine the rights, preferences, restrictions
and other matters relating to such series of preferred stock as follows:

 

TERMS
OF PREFERRED STOCK

 

Section
1.    Definitions. For the purposes hereof, the following terms shall have the following meanings:

 

“1940
Act” means the Investment Company Act of 1940, as amended, or any successor statute.

 

    	1

    	 

    

 

“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 of the Securities Act.

 

“Alternate
Consideration” shall have the meaning set forth in Section 7(e).

 

“Asset
Coverage” and “asset coverage,” as defined for purposes of Sections 18(h) and 61 of the 1940 Act, of at
least 200% with respect to all outstanding senior securities of the Corporation, including all outstanding shares of Preferred
Stock (or such other asset coverage as may in the future be specified in or under the 1940 Act or by rule, regulation or order
of United States Securities and Exchange Commission as the minimum asset coverage for senior securities of a Business Development
Company), calculated as of the time of such determination.

 

“Asset
Coverage Cure Date” means, with respect to the failure by the Corporation to maintain Asset Coverage as of the close
of business on the last Business Day of a Calendar Quarter (as required by Section 8(c)), the date that is thirty (30) calendar
days following the Filing Date with respect to such Calendar Quarter.

 

“Bankruptcy
Event” means any of the following events: (a) the Corporation or any Significant Subsidiary (as such term is defined
in Rule 1-02(w) of Regulation S-X) thereof commences a case or other proceeding under any bankruptcy, reorganization, arrangement,
adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction relating to the
Corporation or any Significant Subsidiary thereof, (b) there is commenced against the Corporation or any Significant Subsidiary
thereof any such case or proceeding that is not dismissed within 60 days after commencement, (c) the Corporation or any Significant
Subsidiary thereof is adjudicated insolvent or bankrupt or any order of relief or other order approving any such case or proceeding
is entered, (d) the Corporation or any Significant Subsidiary thereof suffers any appointment of any custodian or the like for
it or any substantial part of its property that is not discharged or stayed within 60 calendar days after such appointment, (e)
the Corporation or any Significant Subsidiary thereof makes a general assignment for the benefit of creditors, (f) the Corporation
or any Significant Subsidiary thereof calls a meeting of its creditors with a view to arranging a composition, adjustment or restructuring
of its debts, or (g) the Corporation or any Significant Subsidiary thereof, by any act or failure to act, expressly indicates
its consent to, approval of or acquiescence in any of the foregoing or takes any corporate or other action for the purpose of
effecting any of the foregoing.

 

“Base
Conversion Price” shall have the meaning set forth in Section 7(b).

 

“Beneficial
Ownership Limitation” shall have the meaning set forth in Section 6(d).

 

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

 

“Business
Development Company” shall have the meaning set forth in Section 2(a)(48) of the 1940 Act, or any successor provision.

 

“Buy-In”
shall have the meaning set forth in Section 6(c)(iv).

 

    	2

    	 

    

 

“Calendar
Quarter” shall mean any of the three month periods ending March 31, June 30, September 30, or December 31, of each year.

 

“Change
of Control Transaction” means the occurrence after the date hereof of any of (a) an acquisition after the date hereof
by an individual or legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act),
other than a legal entity majority owned by, or a group wholly consisting of, officers and directors of the corporation and their
Affiliates, of effective control (whether through legal or beneficial ownership of capital stock of the Corporation, by contract
or otherwise) of in excess of 40% of the voting securities of the Corporation (other than by means of conversion or exercise of
Preferred Stock and the Securities issued together with the Preferred Stock), (b) the Corporation merges into or consolidates
with any other Person, or any Person merges into or consolidates with the Corporation and, after giving effect to such transaction,
the stockholders of the Corporation immediately prior to such transaction own less than 50% of the aggregate voting power of the
Corporation or the successor entity of such transaction, (c) the Corporation sells or transfers all or substantially all of its
assets to another Person and the stockholders of the Corporation immediately prior to such transaction own less than 50% of the
aggregate voting power of the acquiring entity immediately after the transaction, (d) a replacement at one time or within a one
year period of more than one-half of the members of the Board of Directors which is not approved by a majority of those individuals
who are members of the Board of Directors on the Original Issue Date (or by those individuals who are serving as members of the
Board of Directors on any date whose nomination to the Board of Directors was approved by a majority of the members of the Board
of Directors who are members on the Original Issue Date), or (e) the execution by the Corporation of an agreement to which the
Corporation is a party or by which it is bound, providing for any of the events set forth in clauses (a) through (d) above.

 

“Closing”
means a closing of the purchase and sale of the Securities pursuant to Section 1.02 of the Purchase Agreement.

 

“Closing
Date” means a Trading Day on which all of the Transaction Documents have been executed and delivered by the Corporation
and each of the purchasers purchasing shares of Preferred Stock at the Closing, and all conditions precedent to (i) the purchasers’
obligations to pay the Purchase Price, and (ii) the Corporation’s obligations to deliver the shares of Preferred Stock have
been satisfied or waived.

 

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

 

“Common
Stock” means the Corporation’s common stock, par value $0.0001 per share, and stock of any other class of
securities into which such securities may hereafter be reclassified or changed.

 

“Common
Stock Equivalents” means any securities of the Corporation 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.

 

“Conversion
Amount” means the sum of the Stated Value at issue.

 

“Conversion
Date” shall have the meaning set forth in Section 6(a).

 

    	3

    	 

    

 

“Conversion
Price” shall have the meaning set forth in Section 6(b).

 

“Conversion
Shares” means, collectively, the shares of Common Stock issuable upon conversion of the shares of Preferred Stock in
accordance with the terms hereof.

 

“Default”
shall have the meaning as set forth in Section 3(g)(i).

 

“Default
Period” shall have the meaning as set forth in Section 3(g)(i).

 

“Default
Rate” shall have the meanings as set forth in Section 3(g)(i).

 

“Dilutive
Issuance” shall have the meaning set forth in Section 7(b).

 

“Dilutive
Issuance Notice” shall have the meaning set forth in Section 7(b).

 

“Dividend
Default” shall have the meaning as set forth in Section 3(g)(i).

 

“Dividend
Payment Date” means the last Business Day of each Dividend Period.

 

“Dividend
Notice Period” shall have the meaning set forth in Section 3(a).

 

“Dividend
Payment Date” shall have the meaning set forth in Section 3(a).

 

“Dividend
Period” means, with respect to each share of Preferred Stock, in the case of the first Dividend Period, the period beginning
on the Date of Original Issue and ending on and including December 31, 2013 and for each subsequent Dividend Period, the period
beginning on and including the first calendar day of the year following the month in which the previous Dividend Period ended
and ending the last calendar day of such year.

 

“Dividend
Rate” means, as of any date, the Fixed Dividend Rate as adjusted, if a Default Period shall be in existence on such
date, in accordance with the provisions of Section 2.2(g).

 

“Equity
Conditions” means, during the period in question, (a) the Corporation shall have duly
honored all conversions scheduled to occur or occurring by virtue of one or more Notices of Conversion of the applicable
Holder on or prior to the dates so requested or required, if any, (b) the Corporation shall have paid all liquidated damages
and other amounts owing to the applicable Holder in respect of the Preferred Stock,(c) all of the Conversion Shares
issuable pursuant to the Transaction Documents may be resold pursuant to Rule 144 without volume or manner-of-sale
restrictions or current public information requirements as determined by the counsel to the Corporation as set forth in a
written opinion letter to such effect, addressed and acceptable to the Transfer Agent and the affected Holders,(d) the Common
Stock is trading on a Trading Market and all of the shares issuable pursuant to the Transaction Documents are listed or
quoted for trading on such Trading Market (and the Corporation believes, in good faith, that trading of the Common Stock on a
Trading Market will continue uninterrupted for the foreseeable future), (e) there is a sufficient number of authorized, but
unissued and otherwise unreserved, shares of Common Stock for the issuance of all of the shares then issuable pursuant to the
Transaction Documents, (f) there is no existing Triggering Event and no existing event which, with the passage of time or the
giving of notice, would constitute a Triggering Event, (g) the issuance of the shares in question to the applicable Holder
would not violate the limitations set forth in Section 6(d) herein, (h) there has been no public
announcement of a pending or proposed Fundamental Transaction or Change of Control Transaction that has not been consummated,
(i) the applicable Holder is not in possession of any information provided by the Corporation that constitutes, or may
constitute, material non-public information, and (j) for each Trading Day in a period of 20 consecutive Trading Days prior to
the applicable date in question, the closing price for the Common Stock on the principal Trading Market exceeds the
Conversion Price.

 

    	4

    	 

    

 

“Electronic
Means” means email transmission, facsimile transmission or other similar electronic means of communication providing
evidence of transmission (but excluding online communications systems covered by a separate agreement) acceptable to the sending
party and the receiving party, in any case if operative as between any two parties, or, if not operative, by telephone (promptly
confirmed by any other method set forth in this definition), which, in the case of notices to the Redemption and Paying Agent
and the Custodian, shall be sent by such means to each of its representatives set forth in the Redemption and Paying Agent Agreement
and the Custodian Agreement, respectively.

 

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

 

“Exempt
Issuance” means the issuance of (a) shares of Common Stock or options to employees, officers or directors of
the Corporation pursuant to any stock or option plan duly adopted by a majority of the non-employee members of the Board
of Directors of the Corporation or a majority of the members of a committee of non-employee directors established for
such purpose, (b) the Qualified Offering (as defined in the Purchase Agreement), (c) securities upon the exercise or exchange
of or conversion of any securities issued pursuant to the Purchase Agreement and/or other securities exercisable or
exchangeable for or convertible into shares of Common Stock issued and outstanding on the date of the Purchase Agreement,
provided that such securities have not been amended since the date of the Purchase Agreement to increase the number of such
securities or to decrease the exercise price, exchange price or conversion price of any such securities, and (d) securities
issued pursuant to acquisitions or strategic transactions approved by a majority of the disinterested directors of the
Corporation, provided that any such issuance shall only be to a Person (or to the equity holders of a Person) which is,
itself or through its subsidiaries, an operating company or an asset in a business synergistic with the business of the
Corporation and shall provide to the Corporation additional benefits in addition to the investment of funds, but shall not
include a transaction in which the Corporation is issuing securities primarily for the purpose of raising capital or to an
entity whose primary business is investing in securities.

 

“Filing
Date” means, with respect to any Calendar Quarter, the date of filing of the Corporation’s SEC Report with respect
to such Calendar Quarter.

 

“Forced
Conversion Date” shall have the meaning set forth in Section 8(a).

 

“Forced
Conversion Notice” shall have the meaning set forth in Section 8(a).

 

“Forced
Conversion Notice Date” shall have the meaning set forth in Section 8(a).

 

    	5

    	 

    

 

“Fundamental
Transaction” shall have the meaning set forth in Section 7(e).

 

“GAAP”
means United States generally accepted accounting principles.

 

“Holder”
shall have the meaning given such term in Section 2.

 

“Indebtedness”
means (a) any liabilities for borrowed money or amounts owed in excess of $250,000 (other than trade accounts payable incurred
in the ordinary course of business), (b) all guaranties, endorsements and other contingent obligations in respect of indebtedness
of others, whether or not the same are or should be reflected in the Corporation’s balance sheet (or the notes thereto),
except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course
of business, and (c) the present value of any lease payments in excess of $250,000 due under leases required to be capitalized
in accordance with GAAP.

 

“Junior
Securities” means the Common Stock and all other Common Stock Equivalents of the Corporation.

 

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

 

“Liquidation”
shall have the meaning set forth in Section 5.

 

“Liquidation
Preference” means $100.00 per share.

 

“Network
1” shall mean Network 1 Financial Services, Inc.

 

“Mandatory
Redemption Price” shall have the meaning as set forth in Section 8(c)(i).

 

“New
York Courts” shall have the meaning set forth in Section 11(d).

 

“Notice
of Conversion” shall have the meaning set forth in Section 6(a).

 

“Optional
Redemption” shall have the meaning set forth in Section 8(b).

 

“Optional
Redemption Amount” shall have the meaning set forth in Section 8(b).

 

“Optional
Redemption Date” shall have the meaning set forth in Section 8(b).

 

“Optional
Redemption Notice” shall have the meaning set forth in Section 8(b).

 

“Optional
Redemption Notice Date” shall have the meaning set forth in Section 8(b).

 

“Original
Issue Date” means the date of the first issuance of any shares of the Preferred Stock regardless of the number of transfers
of any particular shares of Preferred Stock and regardless of the number of certificates which may be issued to evidence such
Preferred Stock.

 

“Permitted
Indebtedness” means (a) the Indebtedness existing on the Original Issue Date,(b) lease obligations and purchase money
indebtedness of up to $100,000, in the aggregate, incurred in connection with the acquisition of capital assets and lease obligations
with respect to newly acquired or leased assets, and (c) Indebtedness incurred in connection with a Qualified Offering.

 

    	6

    	 

    

 

“Permitted
Lien” means the individual and collective reference to the following: (a) Liens for taxes, assessments and other governmental
charges or levies not yet due or Liens for taxes, assessments and other governmental charges or levies being contested in good
faith and by appropriate proceedings for which adequate reserves (in the good faith judgment of the management of the Corporation)
have been established in accordance with GAAP, (b) Liens imposed by law which were incurred in the ordinary course of the Corporation’s
business, such as carriers’, warehouse men’s and mechanics’ Liens, statutory landlords’ Liens, and other
similar Liens arising in the ordinary course of the Corporation’s business, and which (x) do not individually or in the
aggregate materially detract from the value of such property or assets or materially impair the use thereof in the operation of
the business of the Corporation and its consolidated Subsidiaries or (y) are being contested in good faith by appropriate proceedings,
which proceedings have the effect of preventing for the foreseeable future the forfeiture or sale of the property or asset subject
to such Lien, (c) Liens incurred in connection with Permitted Indebtedness under clause (a) thereunder, (d) Liens incurred
in connection with Permitted Indebtedness under clause (b) thereunder, provided that such Liens are not secured by assets of the
Corporation or its Subsidiaries other than the assets so acquired or leased, and (e) the rights granted to Network 1 pursuant
to the Engagement Agreement dated March __, 2013 between the Corporation and Network 1.

 

“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.

 

“Preferred
Stock” shall have the meaning set forth in Section 2.

 

“Purchase
Agreement” means the Securities Purchase Agreement, dated as of March__, 2013, among the Corporation and the
original Holders, as amended, modified or supplemented from time to time in accordance with its terms.

 

“Purchase
Price” shall mean, as to each Holder, the aggregate amount to be paid for the Preferred Stock purchased pursuant to
the Purchase Agreement as specified below such Holder’s name on the signature page of the Purchase Agreement in United States
dollars and in immediately available funds.

 

“Purchase
Rights” shall have the meaning set forth in Section 7(c)

 

“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.

 

“Securities”
means the Preferred Stock and the Conversion Shares.

 

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

 

“Share
Delivery Date” shall have the meaning set forth in Section 6(c).

 

“Stated
Value” shall have the meaning set forth in Section 2.

 

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

 

    	7

    	 

    

 

“Successor
Entity” shall have the meaning set forth in Section 7(e).

 

“Trading
Day” means a day on which the principal Trading Market is open for trading; provided, that in the event that the Common
Stock is not listed or quoted for trading on a Trading Market on the date in question, then Trading Day shall mean a Business
Day.

 

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

 

“Transaction
Documents” means this Certificate of Designation, the Purchase Agreement, all exhibits and schedules thereto and hereto
and any other documents or agreements executed in connection with the transactions contemplated pursuant to the Purchase Agreement.

 

“Transfer
Agent” means a transfer agent for the Corporation’s Common Stock and the Securities, and any successor transfer
agent of the Corporation.

 

“Triggering
Event” shall have the meaning set forth in Section 10(a).

 

“Triggering
Redemption Amount” means, for each share of Preferred Stock, the sum of (a) the greater of (i) 100% of the Stated Value
and (ii) the product of (y) the VWAP on the Trading Day immediately preceding the date of the Triggering Event and (z) the Stated
Value divided by the then Conversion Price, (b) all accrued but unpaid dividends thereon and (c) all liquidated damages and other
costs, expenses or amounts due in respect of the Preferred Stock.

 

“Triggering
Redemption Payment Date” shall have the meaning set forth in Section 10(b).

 

“Underlying
Shares” means the shares of Common Stock issued and issuable upon conversion of the Preferred Stock in accordance
with the terms of this Certificate of Designation.

 

“Variable
Rate Transaction” shall have the meaning ascribed to such term in Section 4.13(b) of the
Purchase Agreement.

 

“Voting
Period” shall have the meaning as set forth in Section 4(b)(i).

 

“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 as reported by Bloomberg L.P. (based
on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if the Common Stock is not then listed
or quoted for trading on a Trading Market and if prices for the Common Stock are then reported on the OTC Pink Marketplace maintained
by OTC Markets Group Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent
closing price per share of the Common Stock so reported, or (c) 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 Holders of a majority in interest of the Securities
then outstanding and reasonably acceptable to the Corporation, the fees and expenses of which shall be paid by the Corporation.

 

    	8

    	 

    

 

Section
2.    Designation, Amount and Par Value. The series of preferred stock shall be designated as
the Corporation’s Series A Convertible Preferred Stock (the “Preferred Stock”) and the number of
shares so designated shall be up to 10,000,000 (which shall not be subject to increase without the written consent of all of the
holders of the Preferred Stock (each, a “Holder” and collectively, the “Holders”)).
Each share of Preferred Stock shall have a par value of $0.0001 per share and a stated value equal to $100,subject to
increase set forth in Section 3 below (the “Stated Value”).

 

Section
3.    Dividends and Distributions.

 

a)
The holders of the shares of Preferred Stock shall be entitled to receive dividends, on an as-converted basis when, as, and if
paid on any Junior Securities stock.

 

b)    Other
Securities. So long as at least 15% of the originally issued shares of Preferred Stock shall remain outstanding, neither
the Corporation nor any Subsidiary thereof shall redeem, purchase or otherwise acquire directly or indirectly any Junior
Securities except as expressly permitted by Section 10(b). So long as any shares of Preferred Stock are outstanding, the
Corporation may not, without the vote or consent of a Majority in Interest, authorize, establish and create and issue and
sell shares of one or more series of a class of senior securities of the Corporation representing stock under Sections 18 and
61 of the 1940 Act, ranking senior to or on a parity with the Preferred Stock as to the payment of dividends and the
distribution of assets upon dissolution, liquidation or the winding up of the affairs of the Corporation.

 

c)    Special
Reserves. The Corporation acknowledges and agrees that the capital of the Corporation (as such term is used in Section
154 of the Delaware General Corporation Law) in respect of the Preferred Stock and any future issuances of the
Corporation’s capital stock shall be equal to the aggregate par value of such Preferred Stock or capital stock, as the
case may be, and that, on or after the date of the Purchase Agreement, it shall not increase the capital of the Corporation
with respect to any shares of the Corporation’s capital stock issued and outstanding on such date. The Corporation also
acknowledges and agrees that it shall not create any special reserves under Section 171 of the Delaware General Corporation
Law without the prior written consent of each Holder.

 

Section
4.    Voting.

 

a)    Voting
Rights. Except as otherwise provided herein or as otherwise required by law, the Preferred Stock shall have no
voting rights. Holders of Preferred Stock shall vote together with the holders of Common Stock on an as converted basis but
may not vote such Preferred Stock, which would exceed the Beneficial Ownership Limitation. In any event, and notwithstanding
the foregoing limitation, as long as any shares of Preferred Stock are outstanding, the Corporation shall not, without
the affirmative vote of the Holders of at least 67% in Stated Value of the then outstanding shares of the Preferred Stock provided
such holders must include Alpha Capital Anstalt so long as Alpha Capital Anstalt holds not less than $100,000 of
Preferred Stock, (a) alter or change adversely the powers, preferences or rights given to the Preferred Stock or alter
or amend this Certificate of Designation, (b) authorize or create any class of stock ranking as to dividends, redemption
or distribution of assets upon a Liquidation (as defined in Section 5) senior to, or otherwise pari passu with,
the Preferred Stock, (c) amend its certificate of incorporation or other charter documents in any manner that adversely
affects any rights of the Holders, (d) increase the number of authorized shares of Preferred Stock, or (e) enter into any
agreement with respect to any of the foregoing.

 

    	9

    	 

    

 

b)    Voting
For Additional Directors.

 

(i)    During
any period in which any one or more of the conditions described in this Section 4(b) shall exist (such period
being referred to herein as a “Voting Period”), the number of Directors constituting the Board of Directors
shall be automatically increased by the smallest number that, when added to the two Directors elected exclusively by the holders
of shares of Preferred Stock, would constitute a majority of the Board of Directors as so increased by such smallest number; and
the Holders of Preferred Stock, shall be entitled, voting as a class on a one-vote-per-share basis (to the exclusion of the holders
of all other securities and classes of capital stock of the Corporation), to elect such smallest number of additional Directors,
together with the two Directors that such Holders are in any event entitled to elect. A Voting Period shall commence: if at any time Holders of shares of
Preferred Stock are otherwise entitled under the 1940 Act to elect a majority of the Board of Directors.

 

(ii)    As
soon as practicable after the accrual of any right of the Holders of shares of Preferred Stock to elect additional Directors as
described in Section 4(b)(i), the Corporation shall call a special meeting of such Holders (i) by mailing or delivery by Electronic
Means or (ii) in such other manner and by such other means as are specified in the terms of such Preferred Stock, a notice of
such special meeting to such Holders, such meeting to be held not less than ten (10) nor more than thirty (30) calendar days after
the date of the delivery by Electronic Means or mailing of such notice. If the Corporation fails to call such a special meeting,
it may be called at the expense of the Corporation by any such Holder on like notice. The record date for determining the Holders
of shares of Preferred Stock entitled to notice of and to vote at such special meeting shall be the close of business on the fifth
(5th) Business Day preceding the calendar day on which such notice is mailed. At any such special meeting and at each meeting
of Holders of shares of Preferred Stock held during a Voting Period at which Directors are to be elected, such Holders, voting
together as a class (to the exclusion of the Holders of all other securities and classes of capital stock of the Corporation),
shall be entitled to elect the number of Directors prescribed in Section 4(b)(i) on a one-vote-per-share basis.

 

(iii)    The
terms of office of the incumbent Directors of the Corporation at the time of a special meeting of Holders of the shares of Preferred
Stock to elect additional Directors in accordance with Section 4(b)(i) shall not be affected by the election at such meeting by
the Holders of shares of Preferred Stock of the number of Directors that they are entitled to elect, and the Directors so elected
by the Holders of shares of Preferred Stock together with the two (2) Directors elected by the Holders of shares of Preferred
Stock in accordance with Section 4(a) hereof and the remaining Directors elected by the holders of the shares of Common Stock
and Preferred Stock, shall constitute the duly elected Directors of the Corporation.

 

    	10

    	 

    

 

(iv)    Simultaneously
with the termination of a Voting Period, the terms of office of the additional Directors elected by the Holders of the shares
of Preferred Stock pursuant to Section 4(b)(i) shall terminate, the remaining Directors shall constitute the Directors of the
Corporation and the voting rights of the Holders of shares of Preferred Stock to elect additional Directors pursuant to Section
4(b)(i) shall cease, subject to the provisions of the last sentence of Section 4(b)(i).

 

c)    1940
Act Matters. Unless a higher percentage is provided for in the Certificate of Incorporation, the affirmative vote of the Holders
of at least a Majority in Interest voting as a separate class, shall be required (A) to approve the Corporation ceasing to be
a Business Development Company, or to approve the Corporation’s withdrawal of its election as a Business Development Company,
or (B) to approve any plan of reorganization (as such term is used in the 1940 Act) adversely affecting such shares.

 

d)    Voting
Rights Set Forth Herein Are Sole Voting Rights. Unless otherwise required by law or the Certificate of Incorporation, the
Holders of shares of Preferred Stock shall not have any relative rights or preferences or other special rights with respect to
voting other than those specifically set forth in this Section 4.

 

e)    No
Cumulative Voting. The Holders of shares of Preferred Stock shall have no rights to cumulative voting.

 

Section
5. Liquidation. Upon any liquidation, dissolution or winding-up of the Corporation, whether voluntary or involuntary
(a “Liquidation”), the Holders shall be entitled to receive out of the assets, whether capital or surplus,
of the Corporation an amount equal to the Stated Value, plus any other fees or liquidated damages then due and owing thereon under
this Certificate of Designation, for each share of Preferred Stock before any distribution or payment shall be made to the holders
of any Junior Securities and if the assets of the Corporation shall be insufficient to pay in full such amounts, then the entire
assets to be distributed to the Holders shall be ratably distributed among the Holders in accordance with the respective amounts
that would be payable on such shares if all amounts payable thereon were paid in full. A Fundamental Transaction or Change of
Control Transaction shall not be deemed a Liquidation. The Corporation shall mail written notice of any such Liquidation, not
less than 45 days prior to the payment date stated therein, to each Holder.

  

Section
6.    Conversion.

 

a)    Conversions
at Option of Holder. Each share of Preferred Stock shall be convertible, at any time and from time to time from and
after the Original Issue Date at the option of the Holder thereof, into that number of shares of Common Stock (subject to the
limitations set forth in Section 6(d)) determined by dividing the Stated Value of such share of Preferred Stock by the
Conversion Price. Holders shall effect conversions by providing the Corporation with the form of conversion notice attached
hereto as Annex A (a “Notice of Conversion”). Each Notice of Conversion shall specify the number of
shares of Preferred Stock to be converted, the number of shares of Preferred Stock owned prior to the conversion at issue,
the number of shares of Preferred Stock owned subsequent to the conversion at issue and the date on which such conversion is
to be effected, which date may not be prior to the date the applicable Holder delivers by facsimile such Notice of Conversion
to the Corporation (such date, the “Conversion Date”). If no Conversion Date is specified in a Notice of
Conversion, the Conversion Date shall be the date that such Notice of Conversion to the Corporation is deemed delivered
hereunder. The calculations and entries set forth in the Notice of Conversion shall control in the absence of manifest or
mathematical error. To effect conversions of shares of Preferred Stock, a Holder shall not be required to surrender the
certificate(s) representing the shares of Preferred Stock to the Corporation unless all of the shares of Preferred Stock
represented thereby are so converted, in which case such Holder shall deliver the certificate representing such shares of
Preferred Stock promptly following the Conversion Date at issue. Shares of Preferred Stock converted into Common Stock or
redeemed in accordance with the terms hereof shall be canceled and shall not be reissued.

 

    	11

    	 

    

 

b)    Conversion
Price. The conversion price for the Preferred Stock shall equal $0.20, subject to adjustment herein(the “Conversion
Price”).

 

c)    Mechanics
of Conversion

 

i.    Delivery
of Certificate Upon Conversion. Not later than five(5) Trading Days after each Conversion Date (the “Share
Delivery Date”), the Corporation shall deliver, or cause to be delivered, to the converting Holder  a
certificate or certificates representing the Conversion Shares which, on or after the one year anniversary of the Closing
Date (provided that the Holder provides the Corporation or the Corporation’s counsel with any reasonable certifications
requested by the Corporation with respect to future sales of such Conversion Shares) shall be free of restrictive legends and
trading restrictions (other than those which may then be required by the Purchase Agreement) representing the number of
Conversion Shares being acquired upon the conversion of the Preferred Stock. On or after the earlier of the one year anniversary of the Closing Date, the Corporation shall use
commercially reasonable efforts to deliver any certificate or certificates required to be delivered by the Corporation under
this Section 6 electronically through the Depository Trust Company or another established clearing corporation performing
similar functions if the Corporation if then a participant in such system.

 

ii.    Failure
to Deliver Certificates. If, in the case of any Notice of Conversion, such certificate or certificates are not delivered to
or as directed by the applicable Holder by the Share Delivery Date, the Holder shall be entitled to elect by written notice to
the Corporation at any time on or before its receipt of such certificate or certificates, to rescind such Conversion, in which
event the Corporation shall promptly return to the Holder any original Preferred Stock certificate delivered to the Corporation
and the Holder shall promptly return to the Corporation the Common Stock certificates issued to such Holder pursuant to the rescinded
Conversion Notice.

 

    	12

    	 

    

 

iii.    Obligation
Absolute; Partial Liquidated Damages. Except as otherwise set forth in this Section 6(c)(iii),the Corporation’s obligation
to issue and deliver the Conversion Shares upon conversion of Preferred Stock in accordance with the terms hereof are absolute
and unconditional, irrespective of any action or inaction by a Holder to enforce the same, any waiver or consent with respect
to any provision hereof, the recovery of any judgment against any Person or any action to enforce the same, or any setoff, counterclaim,
recoupment, limitation or termination, or any breach or alleged breach by such Holder or any other Person of any obligation to
the Corporation or any violation or alleged violation of law by such Holder or any other person, and irrespective of any other
circumstance which might otherwise limit such obligation of the Corporation to such Holder in connection with the issuance of
such Conversion Shares; provided, however, that such delivery shall not operate as a waiver by the Corporation of
any such action that the Corporation may have against such Holder. In the event a Holder shall elect to convert any or all of
the Stated Value of its Preferred Stock, the Corporation may not refuse conversion based on any claim that such Holder or any
one associated or affiliated with such Holder has been engaged in any violation of law, agreement or for any other reason, unless
an injunction from a court, on notice to Holder, restraining and/or enjoining conversion of all or part of the Preferred Stock
of such Holder shall have been sought and obtained, and the Corporation posts a surety bond for the benefit of such Holder in
the amount of 150% of the Stated Value of Preferred Stock which is subject to the injunction, which bond shall remain in effect
until the completion of arbitration/litigation of the underlying dispute and the proceeds of which shall be payable to such Holder
to the extent it obtains judgment. In the absence of such injunction, the Corporation shall issue Conversion Shares and, if applicable,
cash, upon a properly noticed conversion. If the Corporation fails to deliver to a Holder such certificate or certificates pursuant
to Section 6(c)(i) on the second Trading Day after the Share Delivery Date applicable to such conversion, the Corporation shall
pay to such Holder, in cash, as liquidated damages and not as a penalty, for each $5,000 of Stated Value of Preferred Stock being
converted, $50 per Trading Day for each Trading Day after such second Trading Day after the Share Delivery Date until such certificates
are delivered or Holder rescinds such conversion. Nothing herein shall limit a Holder’s right to pursue actual damages or
declare a Triggering Event pursuant to Section 10 hereof for the Corporation’s failure to deliver Conversion Shares within
the period specified herein and such Holder shall have the right to pursue all remedies available to it hereunder, at law or in
equity including, without limitation, a decree of specific performance and/or injunctive relief. The exercise of any such rights
shall not prohibit a Holder from seeking to enforce damages pursuant to any other Section hereof or under applicable law. The
maximum amount of liquidated damages payable to a Holder pursuant to this Section 6(c)(iii) shall not exceed 6% of the Stated
Value of Preferred Stock purchased by such Holder.

 

iv.    Compensation
for Buy-In on Failure to Timely Deliver Certificates Upon Conversion. In addition to any other rights available to
the Holder, if the Corporation fails for any reason to deliver to a Holder the applicable certificate or certificates by the
Share Delivery Date pursuant to Section 6(c)(i), and if after such Share Delivery Date such Holder is required by its
brokerage firm to purchase (in an open market transaction or otherwise), or the Holder’s brokerage firm otherwise
purchases, shares of Common Stock to deliver in satisfaction of a sale by such Holder of the Conversion Shares which such
Holder was entitled to receive upon the conversion relating to such Share Delivery Date (a “Buy-In”), then
the Corporation shall (A) pay in cash to such Holder (in addition to any other remedies available to or elected by
such Holder) the amount, if any, by which (x) such Holder’s total purchase price (including any brokerage commissions)
for the Common Stock so purchased exceeds (y) the product of (1) the aggregate number of shares of Common Stock that such
Holder was entitled to receive from the conversion at issue multiplied by (2) the actual sale price at which the sell order
giving rise to such purchase obligation was executed (including any brokerage commissions) and (B) at the option of such
Holder, either reissue (if surrendered) the shares of Preferred Stock equal to the number of shares of Preferred Stock
submitted for conversion (in which case, such conversion shall be deemed rescinded) or deliver to such Holder the number of
shares of Common Stock that would have been issued if the Corporation had timely complied with its delivery requirements
under Section 6(c)(i). For example, if a Holder purchases shares of Common Stock having a total purchase price of $11,000 to
cover a Buy-In with respect to an attempted conversion of shares of Preferred Stock with respect to which the actual sale
price of the Conversion Shares (including any brokerage commissions) giving rise to such purchase obligation was a total of
$10,000 under clause (A) of the immediately preceding sentence, the Corporation shall be required to pay such Holder $1,000.
The Holder shall provide the Corporation written notice indicating the amounts payable to such Holder in respect of the
Buy-In and, upon request of the Corporation, evidence of the amount of such loss. Nothing herein shall limit a Holder’s
right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of
specific performance and/or injunctive relief with respect to the Corporation’s failure to timely deliver certificates
representing shares of Common Stock upon conversion of the shares of Preferred Stock as required pursuant to the terms
hereof.

 

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v.    Reservation
of Shares Issuable Upon Conversion. The Corporation covenants that it will at all times reserve and keep available out of
its authorized and unissued shares of Common Stock for the sole purpose of issuance upon conversion of the Preferred Stock and
payment of dividends on the Preferred Stock, each as herein provided, free from preemptive rights or any other actual contingent
purchase rights of Persons other than the Holder (and the other holders of the Preferred Stock), not less than such aggregate
number of shares of the Common Stock as shall (subject to the terms and conditions set forth in the Purchase Agreement) be issuable
(taking into account the adjustments and restrictions of Section 7) upon the conversion of the then outstanding shares of Preferred
Stock and payment of dividends hereunder. The Corporation covenants that all shares of Common Stock that shall be so issuable
shall, upon issue, be duly authorized, validly issued, fully paid and nonassessable.

 

vi.    Fractional
Shares. No fractional shares or scrip representing fractional shares shall be issued upon the conversion of the Preferred
Stock. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such conversion, the Corporation
shall at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied
by the Conversion Price or round up to the next whole share.

 

vii.    Transfer
Taxes and Expenses. The issuance of certificates for shares of the Common Stock on conversion of the Preferred Stock shall
be made without charge to any Holder for any documentary stamp or similar taxes that may be payable in respect of the issue or
delivery of such certificates, provided that the Corporation shall not be required to pay any tax that may be payable in respect
of any transfer involved in the issuance and delivery of any such certificate upon conversion in a name other than that of the
Holders of such shares of Preferred Stock and the Corporation shall not be required to issue or deliver such certificates unless
or until the Person or Persons requesting the issuance thereof shall have paid to the Corporation the amount of such tax or shall
have established to the satisfaction of the Corporation that such tax has been paid. The Corporation shall pay all Transfer Agent
fees required for same-day processing of any Notice of Conversion.

 

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d)    Beneficial
Ownership Limitation. The Corporation shall not affect any conversion of the Preferred Stock, and a Holder shall not
have the right to convert any portion of the Preferred Stock, to the extent that, after giving effect to the conversion set
forth on the applicable Notice of Conversion, such Holder (together with such Holder’s Affiliates, and any Persons
acting as a group together with such Holder or any of such Holder’s Affiliates) would beneficially own in excess of
the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of shares of
Common Stock beneficially owned by such Holder and its Affiliates shall include the number of shares of Common Stock issuable
upon conversion of the Preferred Stock with respect to which such determination is being made, but shall exclude the number
of shares of Common Stock which are issuable upon (i) conversion of the remaining, unconverted Stated Value of Preferred
Stock beneficially owned by such Holder or any of its Affiliates and (ii) exercise or conversion of the unexercised or
unconverted portion of any other securities of the Corporation subject to a limitation on conversion or exercise analogous to
the limitation contained herein (including, without limitation, the Preferred Stock) beneficially owned by such Holder or any
of its Affiliates. Except as set forth in the preceding sentence, for purposes of this Section 6(d), beneficial ownership
shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated
thereunder. To the extent that the limitation contained in this Section 6(d) applies, the determination of whether the
Preferred Stock is convertible (in relation to other securities owned by such Holder together with any Affiliates) and of how
many shares of Preferred Stock are convertible shall be in the sole discretion of such Holder, and the submission of a Notice
of Conversion shall be deemed to be such Holder’s determination of whether the shares of Preferred Stock may be
converted (in relation to other securities owned by such Holder together with any Affiliates) and how many shares of the
Preferred Stock are convertible, in each case subject to the Beneficial Ownership Limitation. To ensure compliance with this
restriction, each Holder will be deemed to represent to the Corporation each time it delivers a Notice of Conversion that
such Notice of Conversion has not violated the restrictions set forth in this paragraph and the Corporation shall have no
obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status
as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and
regulations promulgated thereunder. For purposes of this Section 6(d), in determining the number of outstanding shares of
Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as stated in the most recent of the
following: (i) the Corporation’s most recent periodic or annual report filed with the Commission, as the case may be,
(ii) a more recent public announcement by the Corporation or (iii) a more recent written notice by the Corporation or the
Transfer Agent setting forth the number of shares of Common Stock outstanding. Upon the written or oral request of a Holder,
the Corporation shall within two Trading Days confirm orally and in writing to such Holder the number of shares of Common
Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect
to the conversion or exercise of securities of the Corporation, including the Preferred Stock, by such Holder or its
Affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The
“Beneficial Ownership Limitation” shall be 9.99% of the number of shares of the Common Stock outstanding
immediately after giving effect to the issuance of shares of Common Stock issuable upon conversion of Preferred Stock held by
the applicable Holder. A Holder, upon not less than 61 days’ prior notice to the Corporation, may increase or decrease
the Beneficial Ownership Limitation provisions of this Section 6(d) applicable to its Preferred Stock provided that the
Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately
after giving effect to the issuance of shares of Common Stock upon conversion of the Preferred Stock held by the Holder and
the provisions of this Section 6(d) shall continue to apply. Any such increase or decrease will not be effective until the
61st day after such notice is delivered to the Corporation and shall only apply to such Holder and no other
Holder. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity
with the terms of this Section 6(d) to correct this paragraph (or any portion hereof) which may be defective or inconsistent
with the intended Beneficial Ownership Limitation contained herein or to make changes or supplements necessary or desirable
to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of
Preferred Stock.

 

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Section
7.    Certain Adjustments.

 

a)    Stock
Dividends and Stock Splits. If the Corporation, at any time while the Preferred Stock is outstanding: (i) pays a stock dividend
or otherwise makes a distribution or distributions payable in shares of Common Stock on shares of Common Stock or any other Common
Stock Equivalents (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Corporation upon
conversion of, or payment of a dividend on,the Preferred Stock), (ii) subdivides outstanding shares of Common Stock into a larger
number of shares, (iii) combines (including by way of a reverse stock split) outstanding shares of Common Stock into a smaller
number of shares, or (iv) issues, in the event of a reclassification of shares of the Common Stock, any shares of capital stock
of the Corporation, then the Conversion Price shall be multiplied by a fraction of which the numerator shall be the number of
shares of Common Stock (excluding any treasury shares of the Corporation) outstanding immediately before such event, and of which
the denominator shall be the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant
to this Section 7(a) shall become effective immediately after the record date for the determination of stockholders entitled to
receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision,
combination or re-classification.

 

b)    Subsequent
Equity Sales. If, at any time while the Preferred Stock is outstanding, the Corporation or any Subsidiary, as applicable
sells or grants any option to purchase or sells or grants any right to reprice, or otherwise disposes of or issues (or
announces any sale, grant or any option to purchase or other disposition), any Common Stock or Common Stock Equivalents
entitling any Person to acquire shares of Common Stock at an effective price per share that is lower than the then Conversion
Price (such lower price, the “Base Conversion Price” and such issuances, collectively, a
“Dilutive Issuance”) (if the holder of the Common Stock or Common Stock Equivalents so issued shall at any
time, whether by operation of purchase price adjustments, reset provisions, floating conversion, exercise or exchange prices
or otherwise, or due to warrants, options or rights per share which are issued in connection with such issuance, be entitled
to receive shares of Common Stock at an effective price per share that is lower than the Conversion Price, such issuance
shall be deemed to have occurred for less than the Conversion Price on such date of the Dilutive Issuance), then the
Conversion Price shall be reduced to equal the Base Conversion Price. Such adjustment shall be made whenever such Common
Stock or Common Stock Equivalents are issued. Notwithstanding the foregoing, no adjustment will be
made under this Section 7(b) in respect of an Exempt Issuance. If the Corporation enters into a Variable Rate
Transaction, despite the prohibition set forth in the Purchase Agreement, the Corporation shall be deemed to have issued
Common Stock or Common Stock Equivalents at the lowest possible conversion price at which such securities may be converted or
exercised. The Corporation shall notify the Holders in writing, no later than the Trading Day following the issuance of any
Common Stock or Common Stock Equivalents subject to this Section 7(b), indicating therein the applicable issuance price, or
applicable reset price, exchange price, conversion price and other pricing terms (such notice, the
“Dilutive Issuance Notice”). For purposes of clarification, whether or not the Corporation provides a
Dilutive Issuance Notice pursuant to this Section 7(b), upon the occurrence of any Dilutive Issuance, the Holders are
entitled to receive a number of Conversion Shares based upon the Base Conversion Price on or after the date of such Dilutive
Issuance, regardless of whether a Holder accurately refers to the Base Conversion Price in the Notice of
Conversion.

 

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c)    Subsequent
Rights Offerings. In addition to any adjustments pursuant to Section 7(a) above, if at any time
the Corporation grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other
property pro rata to the record holders of any class of shares of Common Stock (the “Purchase Rights”), then
the Holder of will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which
the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete conversion
of such Holder’s Preferred Stock (without regard to any limitations on exercise hereof, including without limitation, the
Beneficial Ownership Limitation) immediately before the date on which a record is taken for the grant, issuance or sale of such
Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined
for the grant, issue or sale of such Purchase Rights (provided, however, to the extent that the Holder’s right to participate
in any such Purchase Right would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not
be entitled to participate in such Purchase Right to such extent (or beneficial ownership of such shares of Common Stock as a
result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder
until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

d)    Pro
Rata Distributions. If the Corporation, at any time while the Preferred Stock is outstanding, distributes to all holders of
Common Stock (and not to the Holders) evidences of its indebtedness or assets (including cash and cash dividends) or rights or
warrants to subscribe for or purchase any security (other than the Common Stock, which shall be subject to Section 7(c)), then
in each such case the Conversion Price shall be adjusted by multiplying such Conversion Price in effect immediately prior to the
record date fixed for determination of stockholders entitled to receive such distribution by a fraction of which the denominator
shall be the VWAP determined as of the record date mentioned above, and of which the numerator shall be such VWAP on such record
date less the then fair market value at such record date of the portion of such assets or evidence of indebtedness or rights or
warrants so distributed applicable to one outstanding share of the Common Stock as determined by the Board of Directors of the
Corporation in good faith. In either case the adjustments shall be described in a statement delivered to the Holders describing
the portion of assets or evidences of indebtedness so distributed or such subscription rights applicable to one share of Common
Stock. Such adjustment shall be made whenever any such distribution is made and shall become effective immediately after the record
date mentioned above.

 

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e)    Fundamental
Transaction. If, at any time while the Preferred Stock is outstanding, (i) the Corporation, directly or indirectly, in
one or more related transactions effects any merger or consolidation of the Corporation with or into another Person, (ii) the
Corporation, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition
of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase
offer, tender offer or exchange offer (whether by the Corporation or another Person) is completed pursuant to which holders
of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property and has been
accepted by the holders of 50% or more of the outstanding Common Stock, (iv) the Corporation, directly or indirectly, in one
or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any
compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities,
cash or property, (v) the Corporation, directly or indirectly, in one or more related transactions consummates a stock or
share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization,
spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than 50% of the outstanding
shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party
to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other
business combination) (each a “Fundamental Transaction”), then, upon any subsequent conversion of the
Preferred Stock, the Holder shall have the right to receive, for each Conversion Share that would have been issuable upon
such conversion immediately prior to the occurrence of such Fundamental Transaction (without regard to any limitation in
Section 6(d) on the conversion of the Preferred Stock), the number of shares of Common Stock of the successor or acquiring
corporation or of the Corporation, if it is the surviving corporation, and any additional consideration (the
“Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the
number of shares of Common Stock for which the Preferred Stock is convertible immediately prior to such Fundamental
Transaction (without regard to any limitation in Section 6(d) on the conversion of the Preferred Stock). For purposes of any
such conversion, the determination of the Conversion Price shall be appropriately adjusted to apply to such Alternate
Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such
Fundamental Transaction, and the Corporation shall apportion the Conversion Price among the Alternate Consideration in a
reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of
Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then
the Holder shall be given the same choice as to the Alternate Consideration it receives upon any conversion of
the Preferred Stock following such Fundamental Transaction. To the extent necessary to effectuate the foregoing provisions,
any successor to the Corporation or surviving entity in such Fundamental Transaction shall file a new Certificate of
Designation with the same terms and conditions and issue to the Holders new preferred stock consistent with the foregoing
provisions and evidencing the Holders’ right to convert such preferred stock into Alternate Consideration. The
Corporation shall cause any successor entity in a Fundamental Transaction in which the Corporation is not the survivor (the
“Successor Entity”) to assume in writing all of the obligations of the Corporation under this Certificate
of Designation and the other Transaction Documents in accordance with the provisions of this Section 7(e) pursuant to written
agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable
delay) prior to such Fundamental Transaction and shall, at the option of the holder of the Preferred Stock, deliver to the
Holder in exchange for Preferred Stock a security of the Successor Entity evidenced by a written instrument substantially
similar in form and substance to the Preferred Stock which is convertible for a corresponding number of shares of capital
stock of such Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon
conversion of the Preferred Stock (without regard to any limitations on the conversion of the Preferred Stock) prior to such
Fundamental Transaction, and with a conversion price which applies the conversion price hereunder to such shares of capital
stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and
the value of such shares of capital stock, such number of shares of capital stock and such conversion price being for the
purpose of protecting the economic value of the Preferred Stock immediately prior to the consummation of such Fundamental
Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such
Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date
of such Fundamental Transaction, the provisions of this Certificate of Designation and the other Transaction Documents
referring to the “Corporation” shall refer instead to the Successor Entity), and may exercise every right and
power of the Corporation and shall assume all of the obligations of the Corporation under this Certificate of Designation and
the other Transaction Documents with the same effect as if such Successor Entity had been named as the Corporation
herein.

 

f)    Calculations.
All calculations under this Section 7 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be.
For purposes of this Section 7, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall
be the sum of the number of shares of Common Stock (excluding any treasury shares of the Corporation) issued and outstanding.

 

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g)    Notice
to the Holders.

 

i.    Adjustment
to Conversion Price. Whenever the Conversion Price is adjusted pursuant to any provision of this Section 7, the Corporation
shall promptly deliver to each Holder a notice setting forth the Conversion Price after such adjustment and setting forth a brief
statement of the facts requiring such adjustment.

 

ii.    Notice
to Allow Conversion by Holder. If (A) the Corporation shall declare a dividend (or any other distribution in whatever
form) on the Common Stock, (B) the Corporation shall declare a special nonrecurring cash dividend on or a redemption of the
Common Stock, (C) the Corporation shall authorize the granting to all holders of the Common Stock of rights or warrants to
subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of
the Corporation shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to
which the Corporation is a party, any sale or transfer of all or substantially all of the assets of the Corporation, or any
compulsory share exchange whereby the Common Stock is converted into other securities, cash or property or (E) the
Corporation shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the
Corporation, then, in each case, the Corporation shall cause to be filed at each office or agency maintained for the purpose
of conversion of the Preferred Stock, and shall cause to be delivered to each Holder at its last address as it shall appear
upon the stock books of the Corporation, at least twenty (20) calendar days prior to the applicable record or effective date
hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such
dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders
of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be
determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is
expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record
shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such
reclassification, consolidation, merger, sale, transfer or share exchange, provided that the failure to deliver such notice
or any defect therein or in the delivery thereof shall not affect the validity of the corporate action required to be
specified in such notice. To the extent that any notice provided hereunder constitutes, or contains, material, non-public
information regarding the Corporation or any of the Subsidiaries, the Corporation shall simultaneously file such notice with
the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled to convert the Conversion Amount of
the Preferred Stock(or any part hereof) during the 20-day period commencing on the date of such notice through the effective
date of the event triggering such notice except as may otherwise be expressly set forth herein.

 

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Section
8.    Conversion and Redemption.

 

a)    Forced
Conversion. Notwithstanding anything to the contrary in this Certificate of Designation and subject to the limitation
set forth in Section 6(d), if (i) there is an effective and current registration statement which includes for resale
all of the Common Stock underlying the Preferred Stock or such Common Stock is freely resellable pursuant to Rule 144 without
any volume or manner of sale restrictions, (ii) the VWAP for each of any 20 trading days during any 30 consecutive Trading
Day period, which 30 consecutive Trading Day period shall not include any days prior to the execution date of the Purchase
Agreement (“Threshold Period”), exceeds 200% of the Conversion Price each day during the Threshold Period
(subject to adjustment for reverse and forward stock splits and the like), and (iii) the average daily dollar volume of the
Corporation’s Common Stock during such 30 day period exceeds $25,000 per day, the Corporation may, within one Trading
Day after the end of any such Threshold Period, deliver a written notice to all Holders (a “Forced Conversion
Notice” and the date such notice is delivered to all Holders, the “Forced Conversion Notice
Date”) to cause each Holder to convert all or part of such Holder’s Preferred Stock (as specified in such
Forced Conversion Notice), it being agreed that the “Conversion Date” for purposes of Section 6 shall be deemed
to occur on the third (3rd) Trading Day following the Forced Conversion Notice Date (such third Trading Day, the
“Forced Conversion Date”). The Corporation may not deliver a Forced Conversion Notice, and any Forced
Conversion Notice delivered by the Corporation shall not be effective, unless all of the Equity Conditions have been met on
each Trading Day during the applicable Threshold Period through and including the date that the Conversion Shares issuable
pursuant to such conversion are actually delivered to the Holders pursuant to the Forced Conversion Notice. Any
Forced Conversion Notices shall be applied ratably to all of the Holders based on each Holder’s initial purchases of
Preferred Stock hereunder, provided that any voluntary conversions by a Holder shall be applied against such Holder’s pro
rata allocation, thereby decreasing the aggregate amount forcibly converted hereunder if less than all shares of the
Preferred Stock are forcibly converted. For purposes of clarification, a Forced Conversion shall be subject to all of the
provisions of Section 6, including, without limitation, the provisions requiring payment of liquidated damages and
limitations on conversions. A Forced Conversion will not be effective in excess of the Beneficial Ownership Limitation under
Section 6(d).

 

b)    Optional
Redemption at Election of Corporation. Subject to the provisions of this Section 8, at any time after the issue date of
Preferred Stock, the Corporation may deliver a notice to the Holders (an “Optional Redemption Notice” and
the date such notice is deemed delivered hereunder, the “Optional Redemption Notice Date” ) of its
irrevocable election to redeem some or all of the then outstanding Preferred Stock, for cash in an amount equal to the Stated
Value of the outstanding Preferred Stock (“Optional
Redemption Amount”) on the 20th Trading Day following the Optional Redemption Notice Date (such date,
the “Optional Redemption Date” and such redemption, the “Optional Redemption” ). The
Optional Redemption Amount is payable in full on the Optional Redemption Date. The Corporation may only effect an Optional
Redemption if (i) each of the Equity Conditions shall have been met on each Trading Day occurring during the period
commencing on the Optional Redemption Notice Date through the Optional Redemption Date and through and including the date
payment of the Optional Redemption Amount is actually made, and (ii) the conditions set forth in Section 8(a)(i), (ii) and
(iii) have been satisfied each such date. If any of the Equity Conditions or the conditions set forth in Sections 8(a)(i),
(ii) and (iii) shall cease to be satisfied at any time during such period, then a Holder may elect to cancel the Optional
Redemption Notice as to such Holder by notice to the Corporation within 3 Trading Days after the first day on which any such
Equity Condition or other condition has not been met (provided that if, by a provision of the Transaction Documents, the
Corporation is obligated to notify the Holders of the non-existence of an Equity Condition, such notice period shall be
extended to the third Trading Day after proper notice from the Corporation) in which case the Optional Redemption Notice
shall be null and void, ab initio. The Corporation covenants and agrees that it will honor all Notices of Conversion
tendered from the time of delivery of the Optional Redemption Notice through the date the Optional Redemption Amount is paid
in full. An Optional Redemption Notice will not be effective in connection with an amount of Preferred Stock which on an as
converted basis would be in excess of the Beneficial Ownership Limitation under Section 6(d).

 

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c)    Asset
Coverage Mandatory Redemption. For so long as any shares of Preferred Stock are outstanding and the Company is a
Business Development Company, the Corporation shall have Asset Coverage of at least 200% as of the close of business on the last
Business Day of a Calendar Quarter, such Asset Coverage to be determined exclusively by reference to the asset coverage ratio
reported as of the last Business Day of such Calendar Quarter in the Corporation’s SEC Report with respect to such
Calendar Quarter.

 

(i)    If
the Corporation fails to comply with the Asset Coverage requirement as provided in Section 8(c) as of the last Business Day of
any Calendar Quarter and such failure is not cured as of the Asset Coverage Cure Date, the Corporation shall, to the extent permitted
by the 1940 Act and Delaware law, by the close of business on such Asset Coverage Cure Date, fix a redemption date and proceed
to redeem a sufficient number of shares of Preferred Stock, to enable it to meet the requirements of Section 8(c)(ii). In the
event that any shares of Preferred Stock then outstanding are to be redeemed pursuant to this Section 8(c)(i), the Corporation
shall redeem such shares at a price per share (the “Mandatory Redemption Price”) equal to (y) the Liquidation
Preference per share plus (z) an amount equal to any unpaid dividends and distributions on such share accumulated to (but
excluding) the date fixed for such redemption by the Board of Directors (whether or not earned or declared by the Corporation,
but excluding interest thereon).

 

(ii)    On
the Redemption Date for a redemption contemplated by Section 8(c)(i), the Corporation shall redeem, out of funds legally
available therefor, such number of shares of Preferred Stock as shall be equal to the lesser of (x) the minimum number of
shares of Preferred Stock, the redemption of which, if deemed to have occurred immediately prior to the opening of business
on the Asset Coverage Cure Date, would result in the Corporation having Asset Coverage on such Asset Coverage Cure Date of at
least 200% (provided, however, that if there is no such minimum number of shares of Preferred Stock the
redemption or retirement of which would have such result, all shares of Preferred Stock then outstanding shall be redeemed),
and (y) the maximum number of shares of Preferred Stock that can be redeemed out of funds expected to be legally available
therefor in accordance with the certificate of incorporation of the Corporation and applicable law, provided further,
that in connection with redemption for failure to maintain such Asset Coverage requirement, the Corporation may at its sole
option, but is not required to (unless Holder exercises its rights under Section 10), redeem a sufficient number of shares of
Preferred Stock pursuant to this Section 8(c) that would result, if deemed to have occurred immediately prior to the opening
of business on the Asset Coverage Cure Date, in the Corporation having Asset Coverage on such Asset Coverage Cure Date of up
to and including 215%. The Corporation shall effect such redemption on the date fixed by the Corporation therefor, which date
shall not be later than ninety (90) calendar days after such Asset Coverage Cure Date, except that if the Corporation does
not have funds legally available for the redemption of all of the required number of shares of Preferred Stock which have
been designated to be redeemed or the Corporation otherwise is unable to effect such redemption on or prior to ninety (90)
calendar days after such Asset Coverage Cure Date, the Corporation shall redeem those shares of Preferred Stock which it was
unable to redeem on the earliest practicable date on which it is able to effect such redemption. If fewer than all of the
outstanding shares of Preferred Stock are to be redeemed pursuant to this Section 8(c), the number of shares of
Preferred Stock to be redeemed shall be redeemed pro rata among the outstanding shares of Preferred Stock.

 

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d)    Compliance
with Law. To the extent that any redemption is not made by reason of the absence of legally available funds therefor in accordance
with the certificate of incorporation of the Corporation and applicable law, such redemption shall be made as soon as practicable
to the extent such funds become available. In effecting any redemption pursuant to this Section 8, the Corporation shall use its
best efforts to comply with all applicable conditions precedent to effecting such redemption under the 1940 Act and any applicable
Delaware law, but shall effect no redemption except in accordance with the 1940 Act and any applicable Delaware law.

 

Section
9.    Negative Covenants. As long as at least 15% of the originally
issued shares of Preferred Stock are outstanding, unless the holders of at least 67% in Stated Value of the then outstanding
shares of Preferred Stock, which holders must include Alpha Capital Anstalt so long as Alpha Capital Anstalt holds not less
than $100,000 of Preferred Stock, shall have otherwise given prior written consent, the Corporation shall not, and shall not
permit any of the Subsidiaries to, directly or indirectly:

 

a)    other
than Permitted Indebtedness, enter into, create, incur, assume, guarantee or suffer to exist any indebtedness for borrowed money
of any kind, including but not limited to, a guarantee, on or with respect to any of its property or assets now owned or hereafter
acquired or any interest therein or any income or profits therefrom;

 

b)    other
than Permitted Liens, enter into, create, incur, assume or suffer to exist any Liens of any kind, on or with respect to any of
its property or assets now owned or hereafter acquired or any interest therein or any income or profits therefrom;

 

c)    repay,
repurchase or offer to repay, repurchase or otherwise acquire more than a de minimis number of shares of its Common
Stock, Common Stock Equivalents or Junior Securities, other than as to the Conversion Shares as permitted or required under
the Transaction Documents;

 

d)    other
than as permitted pursuant to Section 3(c), pay cash dividends or distributions on Junior Securities of the Corporation;

 

e)    enter
into any transaction with any Affiliate of the Corporation which would be required to be disclosed in any public filing with the
Commission, unless such transaction is made on an arm’s-length basis and expressly approved by a majority of the disinterested
directors of the Corporation (even if less than a quorum otherwise required for board approval); or

 

f)    enter
into any agreement with respect to any of the foregoing.

 

In
addition, as long as any shares of Preferred Stock are outstanding, unless the holders of at least 67% in Stated Value of the
then outstanding shares of Preferred Stock, which holders must include Alpha Capital Anstalt so long
as Alpha Capital Anstalt holds not less than $100,000 of Preferred Stock, shall have otherwise given prior written consent,
the Corporation shall not, directly or indirectly, amend its charter documents, including, without
limitation, its certificate of incorporation and bylaws, in any manner that materially and adversely affects any rights of the
Holder.

  

    	22

    	 

    

 

 Section
10.    Redemption Upon Triggering Events.

 

a)    “Triggering
Event” means, wherever used herein any of the following events (whatever the reason for such event and whether such
event shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any court,
or any order, rule or regulation of any administrative or governmental body):

 

i.    the
Corporation shall fail to deliver certificates representing Conversion Shares issuable upon a conversion hereunder that comply
with the provisions hereof prior to the seventh Trading Day after such shares are required to be delivered hereunder, or the Corporation
shall provide written notice to any Holder, including by way of public announcement, at any time, of its intention not to comply
with requests for conversion of any shares of Preferred Stock in accordance with the terms hereof;

 

ii.    the
Corporation shall fail for any reason to pay in full the amount of cash due pursuant to a Buy-In within five calendar days after
notice therefor is delivered hereunder;

 

iii.    the
Corporation shall fail to have available a sufficient number of authorized and unreserved shares of Common Stock to issue to such
Holder upon a conversion hereunder;

 

iv.    unless
specifically addressed elsewhere in this Certificate of Designation as a Triggering Event, the Corporation shall fail to observe
or perform any other covenant, agreement or warranty contained in, or otherwise commit any breach of the Transaction Documents,
which failure or breach could have a Material Adverse Effect, and such failure or breach shall not, if subject to the possibility
of a cure by the Corporation, have been cured within 30 calendar days after the date on which written notice of such failure or
breach shall have been delivered;

 

v.    the
Corporation shall be party to a Change of Control Transaction;

 

vi.    there
shall have occurred a Bankruptcy Event;

 

vii.    the
Common Stock shall fail to be listed or quoted for trading on a Trading Market for more than twenty Trading Days in any
twelve month period, which need not be consecutive Trading Days;

 

viii.    any
monetary judgment, writ or similar final process shall be entered or filed against the Corporation, any subsidiary or any of
their respective property or other assets for more than $100,000, and such judgment, writ or similar final process shall
remain unvacated, unbonded or unstayed for a period of 45 calendar days; or

 

ix.    the
Corporation shall not have been in compliance with the Asset Coverage requirements.

 

b)    Upon
the occurrence of a Triggering Event, each Holder shall (in addition to all other rights it may have hereunder or under
applicable law) have the right, exercisable at the sole option of such Holder, to require the Corporation with respect to
each share of Preferred Stock to redeem each share of Preferred Stock then held by such Holder for a redemption price, in
cash, equal to the Triggering Redemption Amount or increase the dividend rate on all of the outstanding Preferred Stock held
by such Holder to 6% per annum (“Default Rate”) thereafter. The Triggering Redemption Amount shall be due
and payable within five Trading Days of the date on which the notice for the payment therefor is provided by a Holder (the
“Triggering Redemption Payment Date”). If the Corporation fails to pay in full the Triggering Redemption
Amount hereunder on the date such amount is due in accordance with this Section, the Corporation will pay interest thereon at
a rate equal to the lesser of 18% per annum or the maximum rate permitted by applicable law, accruing daily from such date
until the Triggering Redemption Amount, plus all such interest thereon, is paid in full. For purposes of this Section, a
share of Preferred Stock is outstanding until such date as the applicable Holder shall have received Conversion Shares upon a
conversion (or attempted conversion) thereof that meets the requirements hereof or has been paid the Triggering Redemption
Amount in cash.

 

    	23

    	 

    

 

Section
11.    Miscellaneous.

 

a)    Notices.
Any and all notices or other communications or deliveries to be provided by the Holders hereunder including, without
limitation, any Notice of Conversion, shall be in writing and delivered as set forth in the Purchase Agreement, or such other
facsimile number or address as the Corporation may specify for such purposes by notice to the Holders delivered in accordance
with this Section 11. Any and all notices or other communications or deliveries to be provided by the Corporation hereunder
shall be in writing and delivered personally, by facsimile, or sent by a nationally recognized overnight courier service
addressed to each Holder at the facsimile number or address of such Holder appearing on the books of the Corporation, or if
no such facsimile number or address appears on the books of the Corporation, at the principal place of business of such
Holder, as set forth in the Purchase Agreement. Any notice or other communication or deliveries hereunder shall be deemed
given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via
facsimile at the facsimile number set forth in this Section prior to 5:30 p.m. (New York City time) on any date, (ii) the
next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile
number set forth in this Section on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any
Trading Day, (iii) the second Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight
courier service, or (iv) upon actual receipt by the party to whom such notice is required to be given.

 

b)    Absolute
Obligation. Except as expressly provided herein, no provision of this Certificate of Designation shall alter or impair the
obligation of the Corporation, which is absolute and unconditional, to pay liquidated damages, accrued dividends and accrued interest,
as applicable, on the shares of Preferred Stock at the time, place, and rate, and in the coin or currency, herein prescribed.

 

c)    Lost
or Mutilated Preferred Stock Certificate. If a Holder’s Preferred Stock certificate shall be mutilated, lost, stolen
or destroyed, the Corporation shall execute and deliver, in exchange and substitution for and upon cancellation of a mutilated
certificate, or in lieu of or in substitution for a lost, stolen or destroyed certificate, a new certificate for the shares of
Preferred Stock so mutilated, lost, stolen or destroyed, but only upon receipt of evidence of such loss, theft or destruction
of such certificate, and of the ownership hereof reasonably satisfactory to the Corporation.

 

    	24

    	 

    

 

d)    Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Certificate of
Designation shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware,
without regard to the principles of conflict of laws thereof. Each party agrees that all legal proceedings concerning the
interpretation, enforcement and defense of the transactions contemplated by any of the Transaction Documents (whether brought
against a party hereto or its respective Affiliates, directors, officers, shareholders, employees or agents) shall be
commenced in the state and federal courts sitting in New Jersey (the “New Jersey
Courts”). Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the New York Courts 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
such New Jersey Courts, or such New Jersey Courts are improper or 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 Certificate of Designation 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 applicable law. Each party hereto hereby irrevocably waives, to the
fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or
relating to this Certificate of Designation or the transactions contemplated hereby. If any party shall commence an action or
proceeding to enforce any provisions of this Certificate of Designation, then the prevailing party in such action
or proceeding shall be reimbursed by the other party for its attorneys’ fees and other costs and expenses incurred in
the investigation, preparation and prosecution of such action or proceeding.

 

e)    Waiver.
Any waiver by the Corporation or a Holder of a breach of any provision of this Certificate of Designation shall not operate as
or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Certificate
of Designation or a waiver by any other Holders. The failure of the Corporation or a Holder to insist upon strict adherence to
any term of this Certificate of Designation on one or more occasions shall not be considered a waiver or deprive that party (or
any other Holder) of the right thereafter to insist upon strict adherence to that term or any other term of this Certificate of
Designation on any other occasion. Any waiver by the Corporation or a Holder must be in writing.

 

f)    Severability.
If any provision of this Certificate of Designation is invalid, illegal or unenforceable, the balance of this Certificate of Designation
shall remain in effect, and if any provision is inapplicable to any Person or circumstance, it shall nevertheless remain applicable
to all other Persons and circumstances. If it shall be found that any interest or other amount deemed interest due hereunder violates
the applicable law governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the
maximum rate of interest permitted under applicable law.

 

g)    Next
Business Day. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment
obligation shall be made on the next succeeding Business Day.

 

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

 

    	25

    	 

    

 

i)    Status
of Converted or Redeemed Preferred Stock. Shares of Preferred Stock may only be issued pursuant to the Purchase Agreement.
If any shares of Preferred Stock shall be converted, redeemed or reacquired by the Corporation, such shares shall resume the status
of authorized but unissued shares of preferred stock and shall no longer be designated as Series A Convertible Preferred Stock.

 

    	26

    	 

    

 

RESOLVED,
FURTHER, that the Chairman, the president or any vice-president, and the secretary or any assistant secretary, of the Corporation
be and they hereby are authorized and directed to prepare and file this Certificate of Designation of Preferences, Rights and
Limitations in accordance with the foregoing resolution and the provisions of Delaware law.

 

IN
WITNESS WHEREOF, the undersigned has executed this Certificate this 18th day of March, 2013.

 

/s/ Richard
A. Brand

Name:
Richard A. Brand

Title:
Chief Executive Officer

 

    	27

    	 

    

 

ANNEX
A

 

NOTICE
OF CONVERSION

 

(To
be Executed by the Registered Holder in order to Convert Shares of Preferred Stock)

 

The
undersigned hereby elects to convert the number of shares of Series A Convertible Preferred Stock indicated below into
shares of common stock, par value $0.0001 per share (the “Common Stock”), of Point Capital, Inc., a
Delaware corporation (the “Corporation”), according to the conditions hereof, as of the date written
below. If shares of Common Stock are to be issued in the name of a Person other than the undersigned, the undersigned will
pay all transfer taxes payable with respect thereto and is delivering herewith such certificates and opinions as may be
required by the Corporation in accordance with the Purchase Agreement. No fee will be charged to the Holders for any
conversion, except for any such transfer taxes.

 

Conversion
calculations:

 

	Date
                                                                                                                 to Effect Conversion:
                                                                                                                 _____________________________________________

         

	Number
                                                                                                    of shares of Preferred Stock
                                                                                                    owned prior to Conversion:
                                                                                                    _______________

         

	Number
                                                                                                    of shares of Preferred Stock
                                                                                                    to be Converted: ________________________

         

	Stated
                                                                                                    Value of shares of Preferred
                                                                                                    Stock to be Converted: ____________________

         

	Number
                                                                                                    of shares of Common Stock
                                                                                                    to be Issued: ___________________________

         

	Applicable
                                                                                                    Conversion Price:____________________________________________

         

	Number
                                                                                                    of shares of Preferred Stock
                                                                                                    subsequent to Conversion:
                                                                                                    ________________

         

	Address
                                                                                                    for Delivery: ______________________

        or

        DWAC
        Instructions:

        Broker
        no: _________

        Account
        no: ___________

 

	 	[HOLDER]
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	28

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