Document:

Exhibit 10.1

 

SEPARATION AGREEMENT

 

This Separation Agreement
(“Agreement”) is entered into by and between Orchids Paper Products Company (together with its successors and assigns,
the “Company”) and Robert A. Snyder (“Executive”);

 

WHEREAS, the Company
and Executive (each a “Party” and together, the “Parties”) entered into an employment agreement dated August
20, 2007 and amended on August 22, 2008 and again on January 19, 2012 (the “Employment Agreement”); and

 

WHEREAS, the term of
the Employment Agreement is (absent any extensions) scheduled to end on December 31, 2013; and

 

WHEREAS, the Company
and Executive have agreed that Executive will (notwithstanding the terms of the Employment Agreement) resign as President and Chief
Executive Officer of the Company effective on or about November 8, 2013;

 

WHEREAS, the Company
and Executive have agreed that (notwithstanding the terms of the Employment Agreement) following his resignation as President and
Chief Executive Officer of the Company, in order to effect a smooth transition, Executive will continue to serve the Company in
an advisory role until his employment with the Company terminates on December 31, 2013; and

 

WHEREAS, the Company
and Executive have agreed that Executive will also resign as a member of the Company’s Board of Directors (the “Board”),
effective as of November 4, 2013:

 

NOW, THEREFORE, for
such consideration as the Company and Executive hereby declare full and adequate, the Company and Executive, each intending to
be legally bound, agree as follows:

 

		1.	Termination of Employment Agreement.

 

		a.	2013. The Company and Executive agree that (except as expressly set forth in § 2 and §
4 of this Agreement) all of the terms and conditions and respective right and obligations set forth in the Employment Agreement
shall remain in full force and effect until 11:59 pm eastern time on December 31, 2013.

 

		b.	After 2013. The Company and Executive agree that after 2013: (1) sections 2.5 and 2.6 and Sections
3.2 through 3.14 shall remain in full force and effect in accordance with the terms of such sections, the terms of which are hereby
incorporated as part of this Agreement, and (2) sections 2.1 through 2.4 and 3.1 shall have no further force or effect.

 

		2.	Separation from Employment. Executive and the Company agree that Executive’s employment
with the Company shall terminate effective 11:59 pm eastern time on December 31, 2013 and that neither Party has any right to revoke
or rescind such agreement with respect to such termination. In addition, Executive and the Company agree that Executive’s
resignation as President and Chief Executive Officer of the Company shall be effective on or about November 8, 2013, and thereafter,
in order to effect a smooth transition, Executive shall serve in advisory role with the Company until the effective time of the
termination of his employment on December 31, 2013.

 

    	 

    	 

    

 

		3.	Board Membership. Executive and the Company agree that Executive resigns his position as
a member of the Board effective November 4, 2013 and that neither Party has any right to revoke or rescind such agreement with
respect to such termination.

 

		4.	Payments and Benefits.

 

		a.	General. The Company and Executive agree that the payments and benefits described in this
§4 are in lieu of any payments or benefits otherwise due or payable under the Employment Agreement, and Executive irrevocably
waives any right he otherwise might have to any payments or benefits otherwise due or payable under the Employment Agreement.

 

		b.	Cash Severance. The Company and Executive acknowledge and agree that: (i) the amount of
Executive’s cash severance (less applicable tax withholdings) under this Agreement shall equal the cash severance which would
have been payable as if the Executive’s employment was terminated without “Cause” under the Employment Agreement
in a situation not involving a “Change in Control”, which amount shall be one year’s Base salary; and (ii) such
cash severance shall be paid in approximate equal installments in accordance with the Company’s standard payroll schedule
for salaried employees over the one year period ending December 31, 2014 as described in the Employment Agreement for a termination
of employment by the Company without “Cause.” In addition, Executive shall receive a one-time severance payment in
the amount of $20,000 to be paid on March 31, 2014.

 

		c.	Options and Restricted Stock Grants. Executive shall retain those options or restricted
awards that have vested or will vest in accordance with their terms through December 31. 2013. All unvested Options or Restricted
Stock Awards shall be revert to the Company as of 11:59 pm on December 31, 2013.

 

		d.	Health Care Continuation Coverage. If Executive timely elects COBRA coverage for Executive
(or, if applicable, for Executive and any of his COBRA eligible dependents) under the Company’s group health plan in which
he participates on December 31, 2013, or if Executive purchases alternative health insurance coverage the Company will reimburse
Executive (on an after tax basis) for the COBRA coverage premiums he pays for such coverage, or the cost of the alternative coverage
limited to a maximum of the cost of the COBRA coverage and each such reimbursement will be made, upon submission of appropriate
documentation, no later than sixty (60) days after the date that a premium is paid by Executive.. 

 

		e.	Earned but Unpaid Salary, Bonus and Expense Reimbursements. The Company will pay Executive
any earned but unpaid salary due for the period ending December 31, 2013, in accordance with customary payroll practices of the
Company, and will pay Executive any annual bonus for the 2013 calendar year that becomes payable by reason of the attainment of
the pre-established performance goal (without any exercise of negative discretion), which amount shall be paid after audited results
are delivered to the Company. The Company shall also reimburse Executive, in accordance with the Company’s standard policy
for expense reimbursements, for any expenses incurred on or before December 31, 2013, on or before March 15, 2014 if Executive
timely files an expense reimbursement claim for such expenses.

 

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		f.	Other Payments and Benefits. Executive as a result of his termination of employment on December
31, 2013 will be eligible to receive such payments and benefits which are due or payable in the ordinary course upon or following
a termination of an employee’s employment under the Company’s plans, programs and policies on the same basis and subject
to the same terms and conditions as other similarly-situated employees or officers of the Company are eligible to receive such
payments and benefits; provided, however, to the extent there is any duplication of benefits under §4 of this Agreement and
any benefits under such employee benefit plans, programs and policies, Executive hereby waives his rights to any benefits under
such employee benefit plans, programs and policies. Without limiting the foregoing, the Company acknowledges and agrees that Executive
is entitled to: (i) his health savings account, which is fully vested and non-forfeitable; (ii) payment for his accrued but unused
vacation days for 2013, as of December 31, 2013; (iii) full participation in any matching or other employer contributions to the
Company’s 401(k) plan for the 2013 calendar year (regardless of when such contributions are actually made); and (iv) indemnification,
in accordance with the Company’s current bylaws or indemnification agreement.

 

		5.	Non-Disparagement. Executive agrees that from the date hereof through the effective time
of the termination of his employment with the Company and for two (2) years following the termination of his employment with the
Company, Executive shall not make any public statement, whether oral, written, electronic or other, or induce, assist or participate
in the making of any such public statement, which libels, slanders or disparages in a material manner the Company or its directors,
officers, and employees.

 

		6.	Mutual Release.

 

		a.	Release by Executive. Executive, on behalf of himself and his heirs, executors, administrators
and legal representatives (collectively, the “Releasors”) hereby irrevocably and unconditionally releases and forever
discharges the Company and its subsidiaries and affiliates (collectively, the “Releasees”) from (and indemnifies them
against) any and all claims, actions, causes of action, rights, judgments, obligations, damages, demands, accountings or liabilities
of whatever kind or character, whether known or unknown, whether now existing or hereafter arising, at law or in equity, that the
Releasors may have, may have had, or may hereafter have, and that are based in whole or in part on facts existing prior to the
date of this Agreement (collectively, “Claims”), including without limitation any Claims based on Title VII of the
Civil Rights Act of 1964; the Americans With Disabilities Act; the Fair Labor Standards Act; the Equal Pay Act; the Family and
Medical Leave Act; the Employee Retirement Income Security Act of 1974 (except as to claims pertaining to vested benefits under
employee benefit plans maintained by the Releasees); the Age Discrimination in Employment Act, including claims alleging age discrimination;
the Occupational Safety and Health Act; the Worker Adjustment and Retraining Notification Act; the National Labor Relations Act;
the Immigration Reform and Control Act; any common law, public policy, contract (whether oral or written, express or implied) or
tort law; and any other local, state, federal or foreign law, regulation or ordinance, and that arise out of, or relate to, Executive’s
employment with, or services for, the Company or any of its affiliates, or the termination of such employment or services; provided,
however, that this paragraph shall not release (i) Executive’s rights arising under or preserved by this Agreement, or (ii)
Executive’s rights as a shareholder of the Company or (iii) any claims based on any act or omission of a Releasee which constitutes
willful misconduct, gross negligence or fraud.

 

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		b.	Release by Company. The Company, on behalf of itself and the Releasees and each of their
respective officers, directors, employees, shareholders and agents, hereby releases, acquits and forever discharges Executive and
the Releasors from (and indemnifies them against) any and all claims, causes of actions, demands, suits, costs, expenses and damages
of whatever kind or character, whether known or unknown, whether now existing or hereafter arising, at law or in equity, that any
Releasee may have, may have had, or may hereafter have, and that are based in whole or in part on facts existing prior to the date
of this Agreement, and that arise out of, or relate to, the Executive’s employment with, or services for, the Company or
any of its affiliates, or the termination of such employment or services, provided, however, that this paragraph shall not release
(i) the Company’s rights arising under or preserved by this Agreement, (ii) any claims based on any act or omission of Executive
which constitutes willful misconduct, gross negligence or fraud or a violation of any applicable statute or regulation or (iii)
any claims to the extent that the release of such claims would be inconsistent with a Releasees’ obligations or Executive’s
obligations under applicable law.

 

		7.	Miscellaneous

 

		a.	Enforceability; Jurisdictions. Any controversy or claim arising out of or relating to this
Agreement or the breach of this Agreement that is not resolved by Executive and the Company (or its subsidiaries or affiliates,
where applicable), other than those arising under sections 2.5 or 2.6 of the Employment Agreement, to the extent necessary for
the Company (or its subsidiaries or affiliates, where applicable) to avail itself of the rights and remedies provided under sections
2.5 or 2.6 of the Employment Agreement, shall be submitted to arbitration in Oklahoma in accordance with Oklahoma law and the procedures
of the American Arbitration Association. The determination of the arbitrator(s) shall be conclusive and binding on the Company
(and its subsidiaries or affiliates, where applicable) and Executive, and judgment may be entered on the arbitrator(s)’ award
in any court having jurisdiction.

 

		b.	Notices. Any notice or other communication required or permitted hereunder shall be in writing
and shall be delivered personally, telegraphed, telexed, sent by facsimile transmission or sent by certified, registered or express
mail, postage prepaid. Any such notice shall be deemed given when so delivered personally, telegraphed, telexed or sent by facsimile
transmission or, if mailed, five days after the date of deposit in the United States mails.

 

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		c.	Entire Agreement. This Agreement (and the arrangements described herein) contains the entire
agreement between the Company and Executive with respect to the subject matter hereof and supersedes all prior agreements, written
or oral, with respect to the subject matter hereof.

 

		d.	Waivers and Amendments. This Agreement may be amended, superseded, canceled, renewed or
extended, and the terms hereof may be waived, only by a written instrument that expressly identifies the applicable provision and
that is signed by the Company and Executive or, in the case of a waiver, by the party waiving compliance. No delay on the part
of any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the
part of any party of any such right, power or privilege nor any single or partial exercise of any such right, power or privilege,
preclude any other or further exercise thereof or the exercise of any other such right, power or privilege.

 

		e.	Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF OKLAHOMA WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

 

		f.	Assignment. Except as provided in this § 6(f), neither Party’s rights or obligations
under this Agreement may be assigned by such Party, and any purported assignment by either Party in violation hereof shall be null
and void. In the event of any sale, transfer or other disposition of all or substantially all of the Company’s assets or
business, whether by merger, consolidation or otherwise, the Company may assign this Agreement and its rights hereunder. In the
event of Executive’s death or a judicial determination of his incompetence, references in this Agreement to Executive shall
be deemed, where appropriate, to refer to his beneficiaries, estate, executors, or other legal representative(s).

 

		g.	Withholding. The Company shall be entitled to withhold from any payments or deemed payments
any amount of tax withholding required by law, but with respect to bonus compensation shall only withhold federal taxes at the
bonus, or supplemental rate, to the extent permitted by law.

 

		h.	Binding Effect. This Agreement shall be binding upon and inure to the benefit of the Company
and Executive and their respective successors, permitted assigns, heirs, executors and legal representatives.

 

		i.	Counterparts. This Agreement may be executed by the Company and Executive in separate counterparts,
each of which when so executed and delivered shall be an original but all such counterparts together shall constitute one and the
same instrument. Each counterpart may consist of two copies hereof each signed by either the Company or Executive.

 

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		j.	Headings. The headings in this Agreement are for reference only and shall not affect the
interpretation of this Agreement.

 

		7.	Time for Review, Revocation & Effective Date. This Agreement shall be effective seven (7) days after execution and
delivery by both parties (the "Effective Date"). The Executive shall have the right to rescind the agreement at any time
during the seven days after execution and before the Effective Date and may exercise this right by notifying the Company of his
decision to rescind in writing. By signing below, the Executive acknowledges that he has had at least twenty-one (21) days to review
this Agreement. The Executive further acknowledges that he has fully read this Agreement, understands its terms, and has been advised
to CONSULT WITH LEGAL COUNSEL PRIOR TO EXECUTING THIS AGREEMENT.

 

 

 

[Remainder of page intentionally left
blank]

 

 

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IN WITNESS WHEREOF,
the Company and Executive have signed their names on the date set forth below their signature.

  

 

	EXECUTIVE:	 	 	 
	 	 	 	 
	 	 	 	 
	/s/
    Robert A. Snyder	 	11/5/2013	 
	Robert A.
    Snyder	 	Date	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	THE
    COMPANY:	 	 	 
	 	 	 	 
	 	 	 	 
	/s/ Steven R. Berlin 	 	11/5/2013	 
	Orchids Paper
    Company	 	Date	 
	 	 	 	 
	by: Steven
R. Berlin, its Chairman	 	 	 
	 	 	 	 

 

 

 

    	[Signature Page to Separation Agreement]SECURITIES
PURCHASE AGREEMENT

 

This Securities Purchase
Agreement (this “Agreement”) is dated as of October 31, 2013, by and between Propell Technologies Group, Inc.,
a Delaware corporation (the “Company”), and Seaside 88, LP, a Florida limited partnership (such investor, including
its successors and assigns, “Seaside”).

 

WHEREAS, subject to
the terms and conditions set forth in this Agreement and pursuant to Section 4(2) of the Securities Act (as defined herein), and
Rule 506 promulgated thereunder, the Company desires to issue and sell to Seaside, and Seaside desires to purchase from the Company,
securities of the Company as more fully described in this Agreement.

 

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

 

ARTICLE I.

DEFINITIONS

 

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

 

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

 

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

 

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

 

“Agreement”
shall have the meaning ascribed to such term in the introduction hereof, as the same may be amended from time to time.

 

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

 

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

 

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

 

“Cap”
means 10 million shares of Common Stock.

 

“Closing”
means the Initial Closing and each Subsequent Closing.

 

“Closing
Dates” means the Initial Closing Date and each Subsequent Closing Date.

 

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

 

“Common
Stock” means the common stock of the Company, par value $0.001 per share, and any other class of securities into which
such securities may hereafter be reclassified or changed.

 

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

 

“Company”
shall have the meaning ascribed to such term in the introduction hereof, including any successor or assign thereof.

 

“Company
Counsel” means Gracin & Marlow LLP or other counsel reasonably acceptable to Seaside.

 

“Disclosure
Schedules” shall have the meaning ascribed to such term in Section 3.1.

 

“Dollar
Limit” shall have the meaning ascribed to such term in Section 2.5(b).

 

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

 

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

 

“Federal
Reserve” shall have the meaning ascribed to such term in Section 3.1(mm).

 

“Final
Subsequent Closing Date” shall mean the date of the Subsequent Closing that occurs on the earlier of (a) such time as
Seaside has purchased that number of Shares equal to the Cap, and (b) the one-year anniversary of the Initial Closing Date.

 

“Floor”
shall mean $0.15 (as the same may be proportionately adjusted in respect of any stock split, stock dividend, combination, recapitalization
or the like with respect to the Common Stock).

 

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

 

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

 

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

 

“Initial
Closing Date” means the date when all of the Transaction Documents and all other documents required to be executed and
delivered in connection with the Initial Closing pursuant this Agreement have been executed and delivered by the applicable parties
thereto, and all conditions precedent to Seaside’s obligations to purchase the Shares, and the Company’s obligations
to issue and deliver the Shares, have been satisfied or waived with respect to the Initial Closing.

 

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

 

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

 

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

 

“Material
Adverse Effect” means any condition, event, change or effect that would reasonably be expected to have a material adverse
effect on (a) the legality, validity or enforceability of any Transaction Document, (b) the results of operations, assets, business,
prospects or financial condition of the Company and its Subsidiaries, taken as a whole, or (c) the Company’s ability to perform
in any material respect on a timely basis its obligations under any Transaction Document, but shall not mean or include any condition,
event or change which (1) is or results from events or occurrences relating to the economy in general (including arising from terrorist
attacks, acts of war or civil unrest) or the Company’s industry in general and not specifically relating to the Company or
having a disproportionate impact on the Company, or (2) results from the announcement of this Agreement or the transactions contemplated
hereby or by the other Transaction Documents.

 

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

 

“Money
Laundering Laws” shall have the meaning ascribed to such term in Section 3.1(nn).

 

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

 

“Per
Share Purchase Price” shall be an amount equal to the average of the high and low trading prices (measured in hundredths
of cents) of the Common Stock on the Trading Market during normal trading hours for the five (5) consecutive Trading Days immediately
prior to a Closing Date, multiplied by 0.50.

 

“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.

 

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

 

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

 

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

 

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

 

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

 

 

“Seaside”
shall have the meaning ascribed to such term in the introduction hereof.

 

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

 

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

 

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

 

“Share
Amount” means the number of Shares to be purchased at a Closing, such number to be equal to ten percent (10.0%) of the
total number of shares of Common Stock traded during normal trading hours during the 20 Trading Days immediately preceding such
Closing, as reported by Bloomberg Financial Markets.

 

“Shares”
means the shares of Common Stock issued or issuable to Seaside pursuant to this Agreement (as the same may be proportionately adjusted
in respect of any stock split, stock dividend, combination, recapitalization or the like with respect to the Common Stock).

 

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

 

“Subscription
Amount” means the amount to be paid for Shares at a Closing by Seaside in United States dollars and in immediately available
funds, calculated as the product of (a) the Share Amount for such Closing and (b) the Per Share Purchase Price for such Closing.

 

“Subsequent
Closing” means each closing of the purchase and sale of the Shares pursuant to Section 2.2.

 

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“Subsequent
Closing Date” means the date that is one (1) month subsequent to the previous Closing Date (or, if such day is not a
Trading Day, then the first day thereafter that is a Trading Day) commencing the month after the Initial Closing Date and ending
on the Final Subsequent Closing Date, or in each case, such later dates when all conditions precedent to Seaside’s obligations
to purchase the Shares, and the Company’s obligations to issue and deliver the Shares, have been satisfied or waived with
respect to the Subsequent Closing, unless this Agreement is earlier terminated pursuant to the terms hereof.

 

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

 

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

 

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

 

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

 

“Transfer
Agent” means Nevada Agency and Transfer Company, with a mailing address of 50 West Liberty Street, Suite 880, Reno
NV 89501 and a telephone number of 775-322-0626 and a facsimile number of 775-322-5623, and any successor transfer agent of the
Company.

 

“VWAP”
means the daily volume weighted average of actual trading prices measured in hundreths of cents of the Common Stock of the Company
on the Trading Market on the applicable date(s).

 

ARTICLE II.

PURCHASE AND SALE

 

2.1Initial
Closing. On the Initial Closing Date, upon the terms and subject to the conditions
set forth herein, substantially concurrent with the execution and delivery of this Agreement by the parties hereto, the Company
agrees to sell, and Seaside agrees to purchase, the Share Amount at the Per Share Purchase Price as calculated for the Initial
Closing. Seaside shall deliver to the Company, via wire transfer of immediately available funds, the Subscription Amount for the
Initial Closing, and the Company shall deliver to Seaside the Share Amount for the Initial Closing, and the Company and Seaside
shall deliver the other items set forth in Section 2.3 deliverable at the Initial Closing. Upon satisfaction or waiver of the covenants
and conditions set forth in Sections 2.3 and 2.4, the Initial Closing shall occur on the Initial Closing Date electronically or
at such physical location as the parties shall mutually agree.

 

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2.2Subsequent
Closings. On each Subsequent
Closing Date, upon the terms and subject to the conditions set forth herein, including but not limited to Section 2.5, the Company
agrees to sell, and Seaside agrees to purchase, the Share Amount at the Per Share Purchase Price as calculated for such Subsequent
Closing. Seaside shall deliver to the Company, via wire transfer of immediately available funds, the Subscription Amount, and the
Company shall deliver to Seaside the Share Amount, for such Subsequent Closing, subject to Section 2.5, and the Company and Seaside
shall deliver the other items set forth in Section 2.3 deliverable at such Subsequent Closing. Upon satisfaction or waiver of the
covenants and conditions set forth in Sections 2.3, 2.4 and 2.5, each Subsequent Closing shall occur on the applicable Subsequent
Closing Date electronically or at such physical location as the parties shall mutually agree.

 

2.3Deliveries.

 

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

 

(i)solely
on the Initial Closing Date, this Agreement duly executed by the Company;

 

(ii)solely
on the Initial Closing Date, the opinion of Company Counsel, substantially in the form of Exhibit A hereto;

 

(iii)an
officer’s certificate of the Company’s Chief Executive Officer or Chief Financial Officer in the form of Exhibit
B attached hereto; and

 

(iv)a
copy of the irrevocable instructions to the Transfer Agent instructing the Transfer Agent to deliver, on an expedited basis, a
certificate evidencing the applicable Share Amount purchased by Seaside at such Closing, registered in the name of Seaside.

 

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

 

(i)solely
on the Initial Closing Date, this Agreement duly executed by Seaside; and

 

(ii)the
applicable Subscription Amount by wire transfer to the account as specified in writing by the Company, and in each case less the
amount due Seaside for reimbursement of its expenses pursuant to Section 5.2 hereof.

 

2.4Closing
Conditions. 

 

(a)The
obligations of the Company hereunder in connection with each Closing are subject to the satisfaction by Seaside, or waiver by the
Company, of the following conditions:

 

(i)the
accuracy on the Closing Date of the representations and warranties of Seaside contained herein (provided that representations
and warranties that speak as of a specific date shall continue to be true and correct as of the Closing with respect to such date);

 

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(ii)the
performance or satisfaction by Seaside of all obligations, covenants and agreements required to be performed by Seaside at or prior
to the Closing Date;

 

(iii)the
delivery by Seaside of the items set forth in Section 2.3(b) of this Agreement; and

 

(iv)with
respect to any Subsequent Closing, the satisfaction of the conditions set forth in Section 2.5 of this Agreement.

 

(b)The
obligations of Seaside hereunder in connection with each Closing are subject to the satisfaction by the Company, or waiver by Seaside,
of the following conditions:

 

(i)the
accuracy on the Closing Date of the representations and warranties of the Company contained herein (provided that representations
and warranties that speak as of a specific date shall continue to be true and correct as of the Closing with respect to such date);

 

(ii)the
performance or satisfaction by the Company of all obligations, covenants and agreements required to be performed by the Company
at or prior to the Closing Date, including obtaining all Required Approvals;

 

(iii)the
delivery by the Company of the items set forth in Section 2.3(a) of this Agreement;

 

(iv)with
respect to any Subsequent Closing, the satisfaction of the conditions set forth in Section 2.5 of this Agreement;

 

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

 

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

 

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2.5The
Floor; Limitation on Purchases; The Cap.

 

(a)With
respect to each Subsequent Closing, in the event the Per Share Purchase Price does not equal or exceed the Floor as calculated
with respect to such Subsequent Closing, then such Subsequent Closing will not occur. In each such event, there will be one fewer
Closing pursuant to this Agreement. The failure to have a Subsequent Closing due to failure to meet the Floor will not impact any
other Subsequent Closing.

 

(b)If,
for any Subsequent Closing, the proposed Subscription Amount to be invested by Seaside at such Subsequent Closing is greater than
two and one-half times the Subscription Amount invested by Seaside at the immediately preceding Closing (the “Dollar Limit”),
then Seaside shall have the option to reduce the number of Shares purchased at such Subsequent Closing such that the amount of
the investment at such Closing is an amount equal to as near as possible the applicable Dollar Limit.

 

(c)In
no event will any Subsequent Closing occur if, as a result of Seaside’s purchase of Shares at such Subsequent Closing, Seaside’s
beneficial ownership of the Common Stock, calculated in accordance with Rule 13d-3 promulgated by the Commission, will exceed 9.9%
of the Company’s outstanding Common Stock immediately after such Subsequent Closing. In such event, Seaside will purchase
only that number of Shares that will cause its beneficial ownership, calculated in accordance with Rule 13d-3, to remain below
9.9%.

 

(d)In
no event will any Subsequent Closing occur if, as a result of Seaside’s purchase of the applicable Share Amount at such Subsequent
Closing, Seaside will have purchased an aggregate number of Shares in excess of the Cap. In such event, Seaside will purchase only
that number of Shares at such Subsequent Closing that will cause its purchase of Shares to be equal to as near as possible the
Cap.

 

 

 

ARTICLE III.

REPRESENTATIONS AND WARRANTIES

 

3.1Representations
and Warranties of the Company. Except as set forth under the corresponding section
of the disclosure schedules delivered concurrently herewith, which disclosure schedules shall be deemed a part hereof (the “Disclosure
Schedules”), the Company hereby makes the representations and warranties set
forth below as of the date hereof and as of each Closing Date (provided
that representations and warranties that speak as of a specific date shall continue to be true and correct as of such Closing with
respect to such date): 

 

(a)Subsidiaries.
All of the significant subsidiaries (as that term is defined in Rule 1-02 of Regulation S-X promulgated by the Commission) of the
Company are listed in the Company’s most recent Annual Report on Form 10-K as modified by any subsequent SEC Reports filed
with the SEC (each a “Subsidiary”). The Company owns, directly or indirectly, all of the capital stock or other
equity interests of each Subsidiary free and clear of any Liens, and all of the issued and outstanding shares of capital stock
of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe
for or purchase securities. If the Company has no subsidiaries, all other references to the Subsidiaries or any of them in the
Transaction Documents shall be disregarded.

 

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(b)Organization
and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly
existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power
and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company
nor any Subsidiary is in violation or default of any of the provisions of its respective certificate or articles of incorporation,
bylaws or other organizational or charter documents. The Company is duly qualified to conduct business and is in good standing
as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by
it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, could
not have or reasonably be expected to result in a Material Adverse Effect, and no Action has been instituted in any such jurisdiction
revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

 

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

 

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

 

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(e)Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other
Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than: (i)
the filings required pursuant to Section 4.4 of this Agreement, and (ii) the filing of Form D with the Commission and such filings
as are required to be made under applicable state securities laws (collectively, the “Required Approvals”).

 

(f)Issuance
of the Shares. The Shares are duly authorized and, when issued and paid for in accordance with the applicable Transaction Documents,
will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company other than restrictions
on transfer provided for in the Transaction Documents.

 

(g)Capitalization.
The capitalization of the Company is as set forth on Schedule 3.1(g)(1), which Schedule 3.1(g)(1) shall also include
the number of shares of Common Stock owned beneficially, and of record, by Affiliates of the Company as of the date hereof. The
Company has not issued any capital stock since its most recently filed periodic report under the Exchange
Act, other than pursuant to the exercise of employee stock options under the Company’s stock option plans, the issuance
of shares of Common Stock to employees pursuant to the Company’s employee stock purchase plans and pursuant to the conversion
and/or exercise of Common Stock Equivalents outstanding as of the date of the most recently filed periodic report under the Exchange
Act. No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in
the transactions contemplated by the Transaction Documents. Except as a result of the purchase and sale of the Shares or as disclosed
on Schedule 3.1 (g)(2), there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character
whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any
Person any right to subscribe for or acquire any shares of Common Stock, or contracts, commitments, understandings or arrangements
by which the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents.
The issuance and sale of the Shares will not obligate the Company to issue shares of Common Stock or other securities to any Person
(other than Seaside) and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange
or reset price under any of such securities. All of the outstanding shares of capital stock of the Company are validly issued,
fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and none of such outstanding
shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. No further approval
or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale of the Shares. There
are no stockholders agreements, voting agreements or other similar agreements with respect to the Company’s capital stock
to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s stockholders.

 

    	10

    	 

    

 

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

 

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

 

    	11

    	 

    

 

(j)Litigation.
There is no action, claim, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the
Company, threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by any court,
arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign and including,
without limitation, an informal investigation or partial proceeding, such as a deposition) (collectively, an “Action”)
which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the Shares
or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect. Neither
the Company nor any Subsidiary, nor any director or officer thereof, is or has been the subject of any Action involving a claim
of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty. There has not been,
and to the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission involving the Company
or any current or former director or officer of the Company. The Commission has not issued any stop order or other order suspending
the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the Securities
Act.

 

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

 

    	12

    	 

    

 

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

 

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

 

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

 

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

 

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

 

(q)Transactions
With Affiliates and Employees. Except as set forth in the SEC Reports, none of the officers or directors of the Company and,
to the knowledge of the Company, none of the employees of the Company is presently a party to any transaction with the Company
or any Subsidiary (other than for services as employees, officers and directors), including any contract, agreement or other arrangement
providing for the furnishing of services to or by, providing for rental of real or personal property to or from, 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 $120,000 other than for: (i) payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses incurred
on behalf of the Company and (iii) other employee benefits, including stock option agreements under any stock option plan of the
Company.

 

(r)Sarbanes-Oxley;
Internal Accounting Controls. The Company is in compliance with any and all applicable requirements of the Sarbanes-Oxley Act
of 2002 that are effective as of the date hereof, and any and all applicable rules and regulations promulgated by the Commission
thereunder that are effective as of the date hereof and as of the Closing Date. The Company and the
Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that: (i) transactions
are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary
to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets
is permitted only in accordance with management’s general or specific authorization, and (iv) the recorded accountability
for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.
The Company has established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the
Company and designed such disclosure controls and procedures to ensure that information required to be disclosed by the Company
in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods
specified in the Commission’s rules and forms. The Company’s certifying officers have evaluated the effectiveness of
the Company’s disclosure controls and procedures as of the end of the period covered by the Company’s most recently
filed periodic report under the Exchange Act (such date, the “Evaluation Date”). The Company presented in its
most recently filed periodic report under the Exchange Act the conclusions of the certifying officers about the effectiveness of
the disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since the Evaluation Date, there have
been no changes in the Company’s internal control over financial reporting (as such term is defined in the Exchange Act)
that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial
reporting.

 

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

 

(t)Private
Placement. Assuming the accuracy of Seaside’s representations and warranties set forth in Section 3.2, no registration
under the Securities Act is required for the offer and sale of the Shares by the Company to Seaside as contemplated hereby. The
issuance and sale of the Shares hereunder does not contravene the rules and regulations of the Trading Market.

 

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

 

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

 

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(w)Listing
and Maintenance Requirements. The Company has not, in the 12 months preceding the date hereof, received notice from any Trading
Market on which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance with the listing
or maintenance requirements of such Trading Market. The Company is, and has no reason to believe that it will not in the foreseeable
future continue to be, in compliance with all such listing and maintenance requirements.

 

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

 

(y)Disclosure.
Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company
confirms that neither it nor any other Person acting on its behalf has provided Seaside or its agents or counsel with any information
that it believes constitutes or might constitute material, non-public information. The Company understands and confirms that Seaside
will rely on the foregoing representation in effecting transactions in securities of the Company. All of the disclosure furnished
by or on behalf of the Company to Seaside regarding the Company, its business and the transactions contemplated hereby, including
the Disclosure Schedules to this Agreement, is true and correct and does not contain any untrue statement of a material fact or
omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which
they were made, not misleading. The press releases disseminated by the Company during the twelve months preceding the date of this
Agreement taken as a whole do not contain any untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made
and when made, not misleading. The Company acknowledges and agrees that Seaside does not make and has not made any representations
or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 3.2 hereof.

 

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

 

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(aa)Solvency.
Based on the consolidated financial condition of the Company as of the Closing Date, after giving effect to the receipt by the
Company of the proceeds from the sale of the Shares hereunder: (i) the fair saleable value of the Company’s 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 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 liabilities 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).
The Company has no knowledge of any facts or circumstances that lead it to believe that it will file for reorganization or liquidation
under the bankruptcy or reorganization laws of any jurisdiction within one year from the Closing Date. Schedule 3.1(aa)
sets forth as of the date hereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which
the Company or any Subsidiary has commitments. For the purposes of this Agreement, “Indebtedness” means (x)
any liabilities for borrowed money or amounts owed in excess of $50,000 (other than trade accounts payable incurred in the ordinary
course of business), (y) 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 (z) the present
value of any lease payments in excess of $50,000 due under leases required to be capitalized in accordance with GAAP. Neither the
Company nor any Subsidiary is in default with respect to any Indebtedness.

 

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

 

(cc)No
General Solicitation. Neither the Company nor any person acting on behalf of the Company has offered or sold any of the Shares
by any form of general solicitation or general advertising. The Company has offered the Shares for sale only to Seaside.

 

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(dd)Foreign
Corrupt Practices. Neither 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 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.

 

(ee)Accountants.
The Company’s accounting firm is Liggett, Vogt and Webb P.A. To the knowledge and belief of the Company, such accounting
firm: (i) is a registered public accounting firm as required by the Exchange Act and (ii) shall express its opinion with respect
to the financial statements to be included in the Company’s Annual Report for the year ending December 31, 2013.

 

(ff)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. 

 

(gg)
Acknowledgment Regarding Seaside’s Purchase of Shares. The Company acknowledges and agrees that Seaside is acting
solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated
thereby. The Company further acknowledges that Seaside is not acting as a financial advisor or fiduciary of the Company (or in
any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby and any advice given
by Seaside or any of its representatives or agents in connection with the Transaction Documents and the transactions contemplated
thereby is merely incidental to Seaside’s purchase of the Shares. The Company further represents to Seaside that the Company’s
decision to enter into this Agreement and the other Transaction Documents has been based solely on the independent evaluation of
the transactions contemplated hereby by the Company and its representatives.

 

(hh)Acknowledgment
Regarding Seaside’s Trading Activity. Anything in this Agreement or elsewhere
herein to the contrary notwithstanding (except for Sections 3.2(f) and 4.10 hereof), it is understood and acknowledged by the
Company that: (i) Seaside has not been asked by the Company to agree, nor has Seaside agreed, to desist from purchasing or selling,
long and/or short, securities of the Company, or “derivative” securities based on securities issued by the Company
or to hold the Shares for any specified term, (ii) past or future open market or other transactions by Seaside, specifically including,
without limitation, Short Sales or “derivative” transactions, before or after the closing of this or future private
placement transactions, may negatively impact the market price of the Company’s publicly-traded securities, (iii) Seaside,
and counter-parties in “derivative” transactions to which Seaside is a party, directly or indirectly, may presently
have a “short” position in the Common Stock and (iv) Seaside shall not be deemed to have any affiliation with or control
over any arm’s length counter-party in any “derivative” transaction. The Company further understands
and acknowledges that (y) Seaside may engage in hedging activities at various times during the period that the Shares are outstanding,
and (z) such hedging activities (if any) could reduce the value of the existing stockholders’ equity interests in the Company
at and after the time that the hedging activities are being conducted.  The Company acknowledges that such aforementioned
hedging activities do not constitute a breach of any of the Transaction Documents.

 

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

 

(jj)Stock
Option Plans. Each stock option granted by the Company under the Company’s stock option plan was granted (i) in accordance
with the terms of the Company’s stock option plan and (ii) with an exercise price at least equal to the fair market value
of the Common Stock on the date such stock option would be considered granted under GAAP and applicable law. No stock option granted
under the Company’s stock option plan has been backdated. The Company has not knowingly granted, and there is no and has
been no Company policy or practice to knowingly grant, stock options prior to, or otherwise knowingly coordinate the grant of stock
options with, the release or other public announcement of material information regarding the Company or its Subsidiaries or their
financial results or prospects.

 

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

 

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

 

(mm)Bank
Holding Company Act. Neither the Company nor any of its Subsidiaries or Affiliates is subject to the Bank Holding Company Act
of 1956, as amended (the “BHCA”) and to regulation by the Board of Governors of the Federal Reserve System (the
“Federal Reserve”). Neither the Company nor any of its Subsidiaries or Affiliates owns or controls, directly
or indirectly, five percent (5%) or more of the outstanding shares of any class of voting securities or twenty-five percent (25%)
or more of the total equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve. Neither
the Company nor any of its Subsidiaries or Affiliates exercises a controlling influence over the management or policies of a bank
or any entity that is subject to the BHCA and to regulation by the Federal Reserve.

 

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

 

3.2Representations
and Warranties of Seaside. Seaside hereby makes the representations and warranties
set forth below to the Company as of the date hereof and as of each Closing Date (provided
that representations and warranties that speak as of a specific date shall continue to be true and correct as of such Closing with
respect to such date):

 

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

 

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

 

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

 

(d)Certain
Transactions and Confidentiality. Other than consummating the transactions contemplated hereunder, Seaside has not directly
or indirectly, nor has any Person acting on behalf of or pursuant to any understanding with Seaside, executed any purchases or
sales, including Short Sales, of the securities of the Company during the period commencing as of the time that Seaside
first received a term sheet (written or oral) from the Company or any other Person representing the Company setting forth the material
terms of the transactions contemplated hereunder and ending immediately prior to the execution hereof. Other than to other Persons
party to this Agreement, Seaside has maintained the confidentiality of all disclosures made to it in connection with this transaction
(including the existence and terms of this transaction). Notwithstanding the foregoing, for avoidance of doubt, nothing contained
herein shall constitute a representation or warranty, or preclude any actions, with respect to the identification of the availability
of, or securing of, available shares to borrow in order to effect Short Sales or similar transactions in the future.

 

(e)No
Brokers or Finders. No agent, broker, investment bank or firm is or will be entitled to any broker’s or finder’s
fee, or any commission or similar fee, from Seaside in connection with any of the transactions contemplated by this Agreement or
any other Transaction Document.

 

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

 

ARTICLE IV.

OTHER AGREEMENTS OF THE PARTIES

 

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

 

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

 

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

 

The Company
acknowledges and agrees that Seaside may from time to time pledge pursuant to a bona fide margin agreement with a registered broker-dealer
or grant a security interest in some or all of the Shares to a financial institution that is an “accredited investor”
as defined in Rule 501(a) under the Securities Act and that agrees to be bound by the provisions of this Agreement and, if required
under the terms of such arrangement, Seaside may transfer pledged or secured Shares to the pledgees or secured parties. At Seaside’s
expense, the Company will execute and deliver such reasonable documentation as a pledgee or secured party of Shares may reasonably
request in connection with a pledge or transfer of the Shares, including, if the Shares are then registered for resale, the preparation
and filing of any required prospectus supplement under Rule 424(b)(3) under the Securities Act or other applicable provision of
the Securities Act to appropriately amend the list of selling stockholders.

 

(c)Certificates
evidencing the Shares shall not contain any legend (including the legend set forth in Section 4.1(b) hereof), (i) while a registration
statement covering the resale of such security is effective under the Securities Act, (ii) following any sale of such Shares pursuant
to Rule 144, (iii) if such Shares are eligible for sale under Rule 144, without the requirement for the Company to be in compliance
with the current public information required under Rule 144 as to such Shares and without volume or manner-of-sale restrictions,
or (iv) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations
and pronouncements issued by the staff of the Commission). From and after six (6) months from the applicable Closing Date, unless
Seaside is then an Affiliate of the Company, at such time as Seaside has sold or proposes to sell all or any portion of the Shares
then eligible to be sold pursuant to Rule 144, the Company shall cause its counsel to issue a legal opinion to the Transfer Agent
if required by the Transfer Agent to effect the removal of the legend hereunder with respect to the Shares sold or proposed to
be sold. The Company agrees that following the time as such legend is no longer required under this Section 4.1(c), it will, no
later than three Trading Days following the delivery by Seaside to the Company or the Transfer Agent of a certificate representing
Shares issued with a restrictive legend (such third Trading Day, the “Legend Removal Date”), deliver or cause
to be delivered to Seaside a certificate representing such shares that is free from all restrictive and other legends. The Company
may not make any notation on its records or give instructions to the Transfer Agent that enlarge the restrictions on transfer set
forth in this Section 4. Certificates for Shares subject to legend removal hereunder shall be transmitted by the Transfer Agent
to Seaside by crediting the account of Seaside’s prime broker with the Depository Trust Company System as directed by Seaside.

 

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

 

(e)Seaside
agrees with the Company that Seaside will sell any Shares pursuant to either the registration requirements of the Securities Act,
including any applicable prospectus delivery requirements, or an exemption therefrom, and that if Shares are sold pursuant to a
registration statement, they will be sold in compliance with the plan of distribution set forth therein, and acknowledges that
the removal of the restrictive legend from certificates representing Shares as set forth in this Section 4.1 is predicated upon
the Company’s reliance upon this understanding.

 

4.2Furnishing
of Information; Public Information. 

 

(a)For
a period of two (2) years from the Closing Date, the Company covenants to timely file (or obtain extensions in respect thereof
and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to
Section 15(d) of the Exchange Act even if the Company is not then subject to the reporting requirements of the Exchange Act. As
long as Seaside owns Shares, if the Company is not required to file reports pursuant to the Exchange Act, it will prepare and furnish
to Seaside and make publicly available in accordance with Rule 144(c) such information as is required for Seaside to sell the Shares,
including without limitation, under Rule 144. The Company further covenants that it will take such further action as any holder
of Shares may reasonably request, to the extent required from time to time to enable such Person to sell such Shares without registration
under the Securities Act, including without limitation, within the requirements of the exemption provided by Rule 144.

 

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(b)At
any time during the period commencing on the Initial Closing Date and ending at such time that all of the Shares may be sold without
the requirement for the Company to be in compliance with Rule 144(c)(1) and otherwise without restriction or limitation pursuant
to Rule 144, if the Company shall fail for any reason to satisfy the current public information requirement under Rule 144(c) (a
“Public Information Failure”) then, in addition to Seaside’s other available remedies, the Company shall
pay to Seaside, in cash, as liquidated damages and not as a penalty, for each $1,000 of Shares (based on the VWAP of the Common
Stock on the date on which Seaside shall first attempt a sale) sought to be sold by Seaside, $10 per Trading Day (increasing to
$20 per Trading Day five (5) Trading Days after such damages have begun to accrue) for each Trading Day that the Public Information
Failure remains uncured by the Company. The payments to which Seaside shall be entitled pursuant to this Section 4.2(b) are referred
to herein as “Public Information Failure Payments.”  Public Information Failure Payments shall be
paid within five (5) Business Days of the first occurrence of the Public Information Failure and on or before the last day of each
calendar month thereafter if the Public Information Failure continues beyond the first month.  In the event the Company fails
to make Public Information Failure Payments in a timely manner, such Public Information Failure Payments shall bear
interest at the rate of one and one-half percent (1.5%) per month (prorated for partial months) until paid in full. Nothing herein
shall limit Seaside’s right to pursue actual damages for the Public Information Failure, and Seaside shall have the right
to pursue all remedies available to it at law or in equity including, without limitation, a decree of specific performance and/or
injunctive relief.

 

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

 

4.4Securities
Laws Disclosure; Publicity. The Company shall timely file a Current Report on Form
8-K and press release disclosing the material terms of the transactions contemplated hereby, and including the Transaction Documents
as exhibits thereto, in each case reasonably acceptable to Seaside and its counsel. From and after the issuance of such press release,
the Company shall have publicly disclosed all material, non-public information delivered to Seaside by the Company or any of its
Subsidiaries, or any of their respective officers, directors, employees or agents in connection with the transactions contemplated
by the Transaction Documents. The Company and Seaside shall consult with each other in issuing any other press releases with respect
to the transactions contemplated hereby, and neither the Company nor Seaside shall issue any such press release nor otherwise make
any such public statement without the prior consent of the Company, with respect to any press release of Seaside, or without the
prior consent of Seaside, with respect to any press release of the Company, which consent shall not unreasonably be withheld or
delayed, except if such disclosure is required by law, in which case the disclosing party shall promptly provide the other party
with prior notice of such public statement or communication. Notwithstanding the foregoing, the Company shall not publicly disclose
the name of Seaside, or include the name of Seaside in any filing with the Commission or any regulatory agency or Trading Market,
without the prior written consent of Seaside, except: (a) as required by federal securities law in connection with (i) any registration
statement contemplated by Section 4.13 and (ii) the filing of final Transaction Documents (including signature pages thereto) with
the Commission, and (b) to the extent such disclosure is required by law or Trading Market regulations, in which case the Company
shall provide Seaside with prior notice of such disclosure permitted under this clause (b).

 

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

 

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

 

4.7Use
of Proceeds. Except as set forth on Schedule 4.7
attached hereto, the Company shall use the net proceeds from the sale of the Shares hereunder for working capital and general corporate
purposes and shall not use such proceeds for: (a) the satisfaction of any portion of the Company’s debt (other than payment
of trade payables in the ordinary course of the Company’s business consistent with prior practices), (b) the redemption of
any Common Stock or Common Stock Equivalents, (c) the settlement of any outstanding litigation, or (d) in violation of the FCPA
or OFAC regulations.

 

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4.8Indemnification
of Seaside. Subject to the provisions of this Section 4.8, the Company will indemnify
and hold Seaside, Seaside 88 Advisors, LLC, and their respective directors, officers, shareholders, members, partners, employees,
agents and Affiliates (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding
a lack of such title or any other title), each Person who controls Seaside (within the meaning of Section 15 of the Securities
Act and Section 20 of the Exchange Act), and the directors, officers, shareholders, agents, members, partners or employees (and
any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any
other title) of such controlling persons (each, a “Seaside Party”)
harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments,
amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any Seaside Party
may suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants or agreements
made by the Company in this Agreement or in the other Transaction Documents or (b) any action instituted against Seaside in any
capacity, or any of them or their respective Affiliates, by any stockholder of the Company who is not an Affiliate of Seaside,
with respect to any of the transactions contemplated by the Transaction Documents (unless such action is based upon a breach of
Seaside’s representations, warranties or covenants under the Transaction Documents or any agreements or understandings Seaside
may have with any such stockholder or any violations by Seaside of state or federal securities laws or any conduct by Seaside which
constitutes fraud, gross negligence, willful misconduct or malfeasance). If any action shall be brought against any Seaside Party
in respect of which indemnity may be sought pursuant to this Agreement, Seaside Party shall promptly notify the Company in writing,
and the Company shall have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable to Seaside
Party. Any Seaside Party shall have the right to employ separate counsel in any such action and participate in the defense thereof,
but the fees and expenses of such counsel shall be at the expense of Seaside Party except to the extent that (i) the employment
thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time
to assume such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion of counsel, a material
conflict on any material issue between the position of the Company and the position of Seaside Party, in which case the Company
shall be responsible for the reasonable fees and expenses of no more than one such separate counsel. The Company will not be liable
to any Seaside Party under this Agreement (y) for any settlement by a Seaside Party effected without the Company’s prior
written consent, which shall not be unreasonably withheld or delayed; or (z) to the extent, but only to the extent that a loss,
claim, damage or liability is attributable to any Seaside Party’s breach of any of the representations, warranties, covenants
or agreements made by Seaside Party in this Agreement or in the other Transaction Documents. The indemnification required by this
Section 4.8 shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as and
when bills are received or are incurred. The indemnity agreements contained herein shall be in addition to any cause of action
or similar right of any Seaside Party against the Company or others, and (y) any liabilities the Company may be subject to pursuant
to law.

  

4.9Listing
of Common Stock. The Company agrees to use its best efforts to maintain the listing
or quotation (as applicable) of the Common Stock on its current Trading Market and all other Trading Markets on which such Common
Stock may hereafter be listed or quoted (as applicable) and will comply in all respects with the Company’s reporting, filing
and other obligations under the bylaws or rules of such Trading Market(s). The Company further agrees that, if the Company applies
to have the Common Stock traded on any Trading Market other than its current Trading Market, it will include in such application
all of the Shares and will take such other action as is reasonably necessary to cause all of the Shares to be listed on such other
Trading Market. 

 

 

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4.10Certain
Transactions and Confidentiality. Seaside covenants that neither it, nor any Person
acting on its behalf or pursuant to any understanding with it, will execute any purchases or sales, including Short Sales, of any
of the Company’s securities during the period commencing with the execution of this Agreement and ending upon the earlier
of the date of termination of this Agreement or the Final Subsequent Closing Date.  Seaside
covenants that until such time as the transactions contemplated by this Agreement are publicly disclosed by the Company pursuant
to the initial press release as described in Section 4.4, Seaside will maintain the confidentiality of the existence and terms
of this transaction and the information included in the Transaction Documents and the Disclosure Schedules.  Notwithstanding
the foregoing, and notwithstanding anything contained in this Agreement to the contrary, the Company expressly acknowledges and
agrees that (i) Seaside makes no representation, warranty or covenant hereby that it will
not engage in effecting transactions in any securities of the Company after the time end of the period contemplated by this Section
4.10, (ii) Seaside shall not be restricted or prohibited from effecting any transactions
in any securities of the Company in accordance with applicable securities laws from and after such time, and (iii) Seaside
shall have no duty of confidentiality to the Company or its Subsidiaries after such time, provided,
that Seaside will not engage in any Short
Sales while it holds any of the Shares.  

 

4.11Form
D; Blue Sky Filings. The Company agrees to timely file a Form D with respect to the
Shares as required under Regulation D and to provide a copy thereof, promptly upon request of Seaside. The Company shall take such
action as the Company shall reasonably determine is necessary in order to obtain an exemption for, or to qualify the Shares for,
sale to Seaside at the Closing under applicable securities or “Blue Sky” laws of the states of the United States, and
shall provide evidence of such actions promptly upon request of Seaside.

 

4.12Delivery
of Shares After Closing. The Company shall deliver, or cause to be delivered, to Seaside
a certificate representing the applicable Share Amount purchased by Seaside at each Closing within three (3) Trading Days of the
applicable Closing Date.

 

4.13Piggyback
Registration Rights. If, at any time after the Initial Closing Date, the Company shall
propose to file with the Commission a registration statement under the Securities Act (other than on Forms S-4 or S-8 or any successor
to such forms), the Company shall give notice to Seaside and include in such registration statement all or any part of the Shares
that Seaside requests to be registered; provided, however,
that the Company shall not be required to register any Shares pursuant to this Section 4.13 that are eligible for resale pursuant
to Rule 144 under the Securities Act without any requirement for the Company to maintain current public information and without
any limitation on volume or manner of sale and provided, further that the Company shall not be required to register any Shares
pursuant to this Section 4.13 if the managing underwriter of an underwritten public offering determines and advises the Company
in writing that the inclusion of all securities proposed to be included by the Company and any other holders of Company securities
requesting inclusion of their securities in the underwritten public offering would materially and adversely interfere with
the successful marketing of the offering. The Company shall use best efforts to cause such registration statement to become effective
as soon as practicable.

 

 

    	27

    	 

    

 

ARTICLE V.

MISCELLANEOUS

 

5.1Termination. 
This Agreement may be terminated:

 

(a)by
Seaside, upon written notice to the Company, if the Initial Closing has not been consummated on or before November 8, 2013;
or

 

(b)by
the Company, upon written notice to the Company, at any time following the Initial Closing;

 

provided, however, that no
such termination pursuant to this Section 5.1 will affect the right of any party to sue for any breach by the other party (or parties).

 

5.2Fees
and Expenses. Except as otherwise set forth in this Agreement and as set forth in
this Section 5.2 below, each party shall pay the fees and expenses of its own advisers, counsel, accountants and other experts,
if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance
of this Agreement. The Company shall pay all stamp and other taxes and duties levied in connection with the delivery of the Shares.
Notwithstanding the foregoing, the Company shall reimburse Seaside for the fees and expenses of its counsel, White White &
Van Etten PC, in an amount equal to (a) $7,500 at the Initial Closing and (b) $2,500 at every Subsequent Closing. Such legal fees
may be withheld by Seaside from the Subscription Amount to be paid for the Shares at such Closings.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

    	29

    	 

    

 

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

 

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

 

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

 

5.13Replacement
of Shares. If any certificate or instrument evidencing any Shares is mutilated, lost,
stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof
(in the case of mutilation), or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of
evidence reasonably satisfactory to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument
under such circumstances shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance
of such replacement Shares.

 

5.14Remedies.
In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of
Seaside and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that monetary
damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the Transaction
Documents and hereby agree to waive and not to assert in any action for specific performance of any such obligation the defense
that a remedy at law would be adequate.

 

5.15Payment
Set Aside. To the extent that either party hereto makes a payment or payments to the
other party hereto pursuant to any Transaction Document or enforces or exercises its rights thereunder, and such payment or payments
or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or
preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the other
party, a trustee, receiver or any other person under any law (including, without limitation, any bankruptcy law, state or federal
law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally
intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such enforcement
or setoff had not occurred.

 

    	30

    	 

    

 

 

5.16Liquidated
Damages. The Company’s obligations to pay any partial liquidated damages or
other amounts owing under the Transaction Documents is a continuing obligation of the Company and shall not terminate until all
unpaid partial liquidated damages and other amounts have been paid notwithstanding the fact that the instrument or security pursuant
to which such partial liquidated damages or other amounts are due and payable shall have been canceled.

 

5.17Saturdays,
Sundays, Holidays, etc.If the last or appointed day for the taking of any action
or the expiration of any right required or granted herein shall not be a Business Day, then such action may be taken or such right
may be exercised on the next succeeding Business Day.

 

5.18Construction.
The parties agree that each of them and/or their respective counsel has reviewed and had an opportunity to revise the Transaction
Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting
party shall not be employed in the interpretation of the Transaction Documents or any amendments hereto. In addition, each and
every reference to share prices and shares of Common Stock in any Transaction Document shall be subject to adjustment for reverse
and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after
the date of this Agreement.

 

5.19WAIVER
OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT
BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE
LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY. 

 

  

(Signature Pages Follow)

    	31

    	 

    

 

 

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

 

	
        Propell Technologies Group, Inc.

         

        

         
	Address for Notice:
	
        By: /s/ John Huemoeller II                                 

        Name: John Huemoeller II

        Title: President

         
	
        1701 Commerce Street

        Houston, TX 77002

        Attention: John Huemoeller

        Fax: 713-513-5700

        Email: jh@propell.com

	
         

        With a copy (which shall not constitute notice) to:

         
	
         

        Firm Name: Gracin & Marlow

        Address: 405 Lexington Avenue

        Address: New York, NY 10174

        Attention: Leslie Marlow

        Fax: 212-208-4657

        Email: lmarlow@gracinmarlow.com

         

         

 

	
        Seaside 88, LP

         

        By: Seaside 88 Advisors, LLC
	Address for Notice:
	 	 
	
        

        

        By: /s/ William J. Ritger                            

        Name: William J. Ritger

        Title: Manager

         
	
        750 Ocean Royale Way

        Suite 805

        North Palm Beach, FL 33408

        Attention: William J. Ritger and

        Denis M. O’Donnell, M.D.

        Fax: 866-358-6721

        Email: wjr@seaside88.com

        dod@seaside88.com

         

	
        With a copy (which shall not constitute notice) to:

         

         

         
	
        White White & Van Etten PC

        45 School Street

        Boston, MA 02108

        Attention: David A. White, Esq.

        Fax: 617-225-0205

        Email: daw@wwvlaw.com

 

    	32

    	 

    

 

Exhibit A

 

1.The Company is
a corporation duly organized under the General Corporation Law of the State of Delaware, with corporate power and authority to
enter into the Agreement and the other Transaction Documents and perform its obligations thereunder. The Company is validly existing
and in good standing under the laws of the State of Delaware and is qualified to do business and in good standing under the laws
of Delaware and Texas, the only states where the failure to be so qualified and in good standing could have a Material Adverse
Effect.

 

2.The execution
and delivery of the Agreement and the other Transaction Documents and the issuance and sale of the Shares thereunder has been duly
authorized by all necessary corporate action of the Company, no further action is required by the Company or its stockholders in
connection therewith; and the Agreement and each other Transaction Document has been duly executed and delivered by the Company
and is enforceable against the Company in accordance with its terms.

 

3.The Shares have
been duly authorized and, when issued and delivered in accordance with the terms of the Agreement, will be validly issued, fully
paid and non-assessable, and the issuance of such Shares will not be subject to any preemptive or similar rights set forth in the
Company’s Certificate of Incorporation or Bylaws (or similar organizational documents) or any agreement known to us or filed
as an exhibit to any SEC Report.

 

4.The execution
and delivery by the Company of, and the performance by the Company of its obligations under, the Agreement (including the issuance
and sale of the Shares) and the other Transaction Documents will not contravene any provision of any statute, law, rule or regulation
applicable to the Company, any agreement filed as an exhibit to any SEC Report, or any judgment, order or decree of any governmental
body, agency or court having jurisdiction over the Company that is applicable to the Company or its properties.

 

5.No consent, approval,
authorization, order, registration or qualification of or with any court or arbitrator or governmental body, regulatory authority
or Trading Market is required for the execution, delivery and performance by the Company of its obligations under the Agreement
or any other Transaction Document, other than any notice filings as are required to be made after the Closing Date under applicable
federal and state securities laws.

 

6.The Company is
not, and will not be after consummation of the Agreement, the sale of the Shares to Seaside and the application of the proceeds
thereof, an “investment company” as defined in the Investment Company Act of 1940, as amended.

 

 

    	33

    	 

    

Exhibit B

 

Officer’s Certificate

 

In connection with
a Closing on the date set forth below pursuant to that certain Securities Purchase Agreement dated as of October 31, 2013 (the
“Agreement”) by and between Propell Technologies Group, Inc., a Delaware corporation (the “Company”) and
Seaside 88, LP, a Florida limited partnership (“Seaside”), the undersigned, the duly elected and qualified President
of the Company, does hereby certify to Seaside as follows:

 

		(i)	all representations and warranties of the Company contained in the Agreement are true and correct
on and as of the date hereof as if made on and as of the date hereof (provided that representations and warranties that
speak as of a specific date shall continue to be true and correct as of the Closing with respect to such date); and

 

		(ii)	the Company has performed or complied with all of its covenants and agreements contained in the
Agreement and required to be performed or complied with by the Company on or before the date hereof.

 

Capitalized terms used
but not defined herein shall have the meanings given to them in the Agreement.

 

IN WITNESS WHEREOF,
the undersigned has caused this Officer’s Certificate to be executed this __th day of _____________, 2013.

 

 

	 	 	 
	 	Propell Technologies Group, Inc.
	 	 	 
	 	 	 
	 	 	 
	 	By:	 
	 	 	Name: John Huemoeller II
	 	 	Title: President

 

    	34

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