Document:

November 27, 2012

Trans World
Entertainment Corporation, as Lead Borrower

38 Corporate Circle

Albany, New York 12203

	
  

 	
  

 	
  

 
	
  

 	
 Re:

 	
 Specified Real Estate Sale and Specified Restricted Payment (each as
 defined below) – Trans World Entertainment Corporation, et al

 

Ladies and
Gentlemen:

          Reference
is made to that certain Amended and Restated Credit Agreement, dated as of
April 15, 2010 (as amended, restated, supplemented or otherwise modified and in
effect from time to time, the “Credit Agreement”), by, among others,
Trans World Entertainment Corporation, Record Town, Inc. (“Record Town”),
Record Town USA, LLC, Trans World New York, LLC, Trans World Florida, LLC,
Movies Plus, Inc. and Record Town Utah, LLC (each such Person, individually a “Borrower”
and collectively the “Borrowers”), Media Logic, USA, LLC, (individually
a “Facility Guarantor” and collectively with any other Person now or
hereafter party thereto as a Facility Guarantor, the “Facility Guarantors”)
(the Borrowers and the Facility Guarantors are hereinafter referred to as the “Loan
Parties”), the Lenders party thereto from time to time, and Wells Fargo
Bank, National Association (as successor to Bank of America, N.A.), as
Administrative Agent and Collateral Agent (in such capacities, the “Agent”),
Swingline Lender and Issuing Bank. Capitalized terms used herein but not
otherwise defined herein shall have the meanings assigned to such terms in the
Credit Agreement.

          The Lead
Borrower has advised the Administrative Agent that (i) Record Town desires to
sell the South Beach Real Estate to 501 Collins Owner, LLC for consideration equal to
$30,000,000 in cash (the “Specified Real Estate Sale”), and (ii) the
Lead Borrower desires to make a Restricted Payment to its shareholders in the
amount of $15,000,000 (the “Specified Restricted Payment”), utilizing
$5,000,000 consisting of cash on hand and $10,000,000 constituting proceeds of
the Specified Real Estate Sale. Section 6.05(k) of the Credit Agreement permits
the sale of the South Beach Real Estate so long as, among other things, all
Cash Receipts received by the Loan Parties as consideration therefor are
transferred to the Concentration Account in accordance with Section 2.21(c) of
the Credit Agreement. Section 6.06(a) of the Credit Agreement prohibits the making
of Restricted Payments except to the extent constituting Permitted Dividends.
Absent the consent of the Required Lenders, (i) the Lead Borrower’s use of a
portion of the proceeds of the Specified Real Estate Sale to make the Specified
Restricted Payment would constitute an Event of Default under Section 7.01(d)
as a result of a violation of Section 6.05(k) of the Credit Agreement, and (ii)
the making of the Specified Restricted Payment would constitute an Event of
Default under Section 7.01(d) as a result of a violation of Section 6.06(a) of
the Credit Agreement. Accordingly, the Lead Borrower has requested that the
Administrative Agent and the Lenders consent to the making of the Specified
Restricted Payment and to the use of $10,000,000 of proceeds of the Specified
Real Estate Sale as a portion of the Specified Restricted Payment (the
foregoing, collectively, the “Specified Transactions”) notwithstanding
the requirements and restrictions set forth in Section 6.05(k) and 6.06(a) of
the Credit 

Trans World
Entertainment Corporation, as Lead Borrower

November 27, 2012

Page 2

Agreement. The Administrative Agent and the Lenders have agreed to
provide such consent, subject to the terms and conditions hereof. 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Accordingly, the parties hereto hereby agree as follows:

 
	
  

 	
  

 	
  

 	
  

 
	
 1.

 	
 Consent.
 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 a.

 	
 Subject to the terms and conditions of this letter agreement (this “Letter
 Agreement”), the Administrative Agent and the Lenders hereby consent to
 the Specified Transactions; provided that such consent shall be
 rescinded and of no further force and effect if the Specified Transactions
 have not occurred on or before December 31, 2012. The consent provided herein
 shall in no way constitute a modification or waiver of any other obligations
 of the Loan Parties under the Credit Agreement or any other Loan Documents,
 each of which remains in full force and effect. It is hereby agreed to and
 understood by the parties that this consent is a one-time consent related to
 the making of the Specified Restricted Payment made with $10,000,000 in
 proceeds of the Specified Real Estate Sale only and is not an amendment to
 the Credit Agreement with respect to any other requirements or restrictions
 on asset sales, Restricted Payments or applications of proceeds received by
 the Loan Parties on any other occasion, nor is it a waiver of any Default or
 Event of Default now existing or hereafter arising under the Credit
 Agreement. 

 
	
  

 	
  

 	
  

 
	
  

 	
 b.

 	
 Notwithstanding the foregoing, prior to the making of the Specified
 Restricted Payment, each of the following conditions shall be satisfied:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 i.

 	
 no Default or Event of
 Default then exists or would arise as a result of the making of
 the Specified Restricted Payment other than as a result of a violation of
 Section 6.06(a) of the Credit Agreement as described above,

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 ii.

 	
 (x) at no time during the six (6) month period ending on the date of
 the Specified Restricted Payment shall there have been any Borrowings, and
 (y) after
 giving effect to the making of the Specified Restricted Payment, as projected on a pro-forma
 basis for the six (6) month
 period following the
 making of such dividend or other distribution, there are no anticipated
 Borrowings, 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 iii.

 	
 the Specified Restricted Payment shall be made in cash utilizing the
 Loan Parties’ cash on hand not consisting of Eligible Cash on Hand and not
 from proceeds of any Borrowings under the Credit Agreement,

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 iv.

 	
 the Administrative Agent shall have received evidence of satisfaction of the
 conditions contained in clauses (ii) and
 (iii) above on a basis
 (including, without limitation, giving due consideration to results for prior
 periods) reasonably satisfactory to the Administrative Agent, 

 

Trans World Entertainment
Corporation, as Lead Borrower

November 27, 2012

Page 3

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 v.

 	
 the Administrative Agent shall have received duly executed copies of
 any purchase and sale agreements and settlement statements with respect to
 the Specified Real Estate Sale, which shall provide that the Loan Parties
 shall receive consideration of not less than $30,000,000 for the South Beach
 Real Estate, 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 vi.

 	
 the Borrowers shall have transferred the net cash proceeds received
 on account of the Specified Real Estate Sale in excess of $10,000,000 to the
 Concentration Account in accordance with Section 2.21(c) of the Credit
 Agreement.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 c.

 	
 The Loan Parties hereby acknowledge that notwithstanding the
 provisions of Section 6.06(a) to the contrary, during the remainder of the
 Fiscal Year ending February 2, 2013, the Loan Parties shall not make any
 Restricted Payments (including, without limitation, any Permitted Dividend
 described in clause (d) of the definition of such term) other than the
 Specified Restricted Payment.

 
	
  

 	
  

 	
  

 
	
 2.

 	
 Miscellaneous.
 

 
	
  

 	
  

 
	
  

 	
 a.

 	
 The Loan Parties represent and warrant that, after giving effect to
 this Letter Agreement, no Default or Event of Default now exists and is
 continuing.

 
	
  

 	
  

 	
  

 
	
  

 	
 b.

 	
 Except as expressly waived or modified herein, all other terms and
 conditions of the Credit Agreement and the other Loan Documents remain in
 full force and effect. This Letter Agreement shall constitute a Loan Document
 for all purposes.

 
	
  

 	
  

 	
  

 
	
  

 	
 c.

 	
 This Letter Agreement and the other Loan Documents constitute the
 entire contract among the parties relating to the subject matter hereof and
 supersede any and all contemporaneous or previous agreements and
 understandings, oral or written, relating to the subject matter hereof. 

 
	
  

 	
  

 	
  

 
	
  

 	
 d.

 	
 This Letter Agreement may be executed in counterparts (and by
 different parties hereto on different counterparts), each of which shall constitute
 an original, but all of which when taken together shall constitute a single
 contract. Delivery of an executed counterpart of a signature page of this
 Letter Agreement by telecopy or other electronic transmission shall be
 effective as delivery of a manually executed counterpart of this Letter
 Agreement. 

 
	
  

 	
  

 	
  

 
	
  

 	
 e.

 	
 Any provision of this Letter Agreement held to be invalid, illegal or
 unenforceable in any jurisdiction shall, as to such jurisdiction, be
 ineffective to the extent of such invalidity, illegality or unenforceability
 without affecting the validity, legality and enforceability of the remaining
 provisions hereof, and the invalidity of a particular provision in a
 particular jurisdiction shall not invalidate such provision in any other
 jurisdiction.

 

Trans World Entertainment
Corporation, as Lead Borrower

November 27, 2012

Page 4

	
  

 	
  

 	
  

 
	
  

 	
 f.

 	
 The Loan Parties represent and warrant that they have consulted with
 independent legal counsel of their selection in connection with this Letter
 Agreement and are not relying on any representations or warranties of the
 Agents or the other Credit Parties or their respective counsel in entering
 into this Letter Agreement.

 
	
  

 	
  

 	
  

 
	
  

 	
 g.

 	
 This Letter Agreement shall be governed by, and construed in
 accordance with, the laws of the State of New York, without giving effect to
 the conflicts of laws principles thereof.

 

[SIGNATURE PAGES FOLLOW]

Trans World
Entertainment Corporation, as Lead Borrower 

November 27, 2012 

Page 5 

          If
the foregoing correctly sets forth our understanding, please indicate your
agreement by signing below. 

	
  

 	
  

 	
  

 
	
  

 	
 Very truly
 yours, 

 
	
  

 	
  

 	
  

 
	
  

 	
 WELLS FARGO
 BANK, NATIONAL
ASSOCIATION, as Administrative Agent,
Collateral Agent, and a
 Lender 

 
	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
 /s/ Peter Foley

 
	
  

 	
  

 	 

 
	
  

 	
 Name:

 	
Peter Foley

 
	
  

 	
  

 	 

 
	
  

 	
 Title: 

 	
Authorized Signatory

 
	
  

 	
  

 	 

 

 

Trans World
Entertainment Corporation, as Lead Borrower 

November 27, 2012 

Page 6 

The foregoing
is acknowledged, agreed and accepted: 

	
  
 	
  
 	
  
 
	
 TRANS WORLD
 ENTERTAINMENT
CORPORATION, as Lead Borrower and as
a Borrower 
 	
  
 
	
  
 	
  
 	
  
 
	
 By: 
 	
/s/ Edwin Sapienza
 	
  
 
	
  
 	  	
  
 
	
 Name:
 	
Edwin Sapienza
 	
  
 
	
  
 	  	
  
 
	
  Title: 
 	
 Corporate Secretary
 	
  
 
	
  
 	  	
  
 
	
  
 	
  
 	
  
 
	
 RECORD TOWN,
 INC., as a Borrower 
 	
  
 
	
  
 	
  
 	
  
 
	
 By: 
 	/s/ Edwin Sapienza
	
  
 
	
  
 	 	
  
 
	
 Name: 
 	Edwin Sapienza
	
  
 
	
  
 	 	
  
 
	
 Title: 
 	Corporate Secretary
	
  
 
	
  
 	  	
  
 
	
  
 	
  
 	
  
 
	
 RECORD TOWN
 USA, LLC, as a Borrower 
 	
  
 
	
  
 	
  
 	
  
 
	
 By: 
 	/s/ Edwin Sapienza
	
  
 
	
  
 	 	
  
 
	
 Name: 
 	Edwin Sapienza
	
  
 
	
  
 	 	
  
 
	
 Title: 
 	Corporate Secretary
	
  
 
	
  
 	  	
  
 
	
  
 	
  
 	
  
 
	
 TRANS WORLD
 NEW YORK, LLC, as a Borrower 
 	
  
 
	
  
 	
  
 	
  
 
	
 By: 
 	/s/ Edwin Sapienza
	
  
 
	
  
 	 	
  
 
	
 Name: 
 	Edwin Sapienza
	
  
 
	
  
 	 	
  
 
	
 Title: 
 	Corporate Secretary
	
  
 
	
  
 	  	
  
 
	
  
 	
  
 	
  
 
	
 TRANS WORLD
 FLORIDA, LLC, as a Borrower 
 	
  
 
	
  
 	
  
 	
  
 
	
 By: 
 	/s/ Edwin Sapienza
	
  
 
	
  
 	 	
  
 
	
 Name: 
 	Edwin Sapienza
	
  
 
	
  
 	 	
  
 
	
 Title: 
 	Corporate Secretary
	
  
 
	
  
 	  	
  
 

 

Trans World
Entertainment Corporation, as Lead Borrower 

November 27, 2012 

Page 7 

	
  
 	
  
 	
  
 
	
 MOVIES PLUS,
 INC., as a Borrower 
 	
  
 
	
  
 	
  
 	
  
 
	
 By: 
 	/s/ Edwin Sapienza
	
  
 
	
  
 	 	
  
 
	
 Name: 
 	Edwin Sapienza
	
  
 
	
  
 	 	
  
 
	
 Title: 
 	Corporate Secretary
	
  
 
	
  
 	  	
  
 
	
  
 	
  
 	
  
 
	
 RECORD TOWN
 UTAH, LLC, as a Borrower 
 	
  
 
	
  
 	
  
 	
  
 
	
 By: 
 	/s/ Edwin Sapienza
	
  
 
	
  
 	 	
  
 
	
 Name: 
 	Edwin Sapienza
	
  
 
	
  
 	 	
  
 
	
 Title: 
 	Corporate Secretary
	
  
 
	
  
 	  	
  
 
	
  
 	
  
 	
  
 
	
 MEDIA LOGIC
 USA, LLC, as a Facility Guarantor 
 	
  
 
	
  
 	
  
 	
  
 
	
 By:
 	
 Record Town,
 Inc., its sole member 
 	
  
 
	
  
 	
  
 	
  
 
	
 By:
 	/s/ Edwin Sapienza
	
  
 
	
  
 	 	
  
 
	
 Name:
 	Edwin Sapienza
	
  
 
	
  
 	 	
  
 
	
 Title: 
 	Corporate Secretary
	
  
 
	
  
 	  	
  
 

Signature Page to Letter Agreement
regarding 

Specified Real Estate Sale and Specified Restricted PaymentExhibit 4.1

SECURITIES PURCHASE AGREEMENT

This SECURITIES
PURCHASE AGREEMENT (the “Agreement”), dated as of November 9, 2012, by and between CLEAN WIND ENERGY TOWER,
INC., a Nevada corporation, with headquarters located at 1997 Annapolis Exchange Parkway, Annapolis, MD 21401 (the “Company”),
and ASHER ENTERPRISES, INC., a Delaware corporation, with its address at 1 Linden Place, Suite 207, Great Neck, NY 11021
(the “Buyer”).

WHEREAS:

A.The
Company and the Buyer are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by the rules and regulations as promulgated by the United States
Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended (the “1933 Act”);

B.Buyer
desires to purchase and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement, an 8% convertible note of the Company, in the form attached hereto as Exhibit
A, in the aggregate principal amount of $32,500.00 (together with any note(s) issued in replacement thereof or as a dividend thereon
or otherwise with respect thereto in accordance with the terms thereof, the “Note”), convertible into shares of common
stock, $0.0001 par value per share, of the Company (the “Common Stock”), upon the terms and subject to the limitations
and conditions set forth in such Note.

C.The
Buyer wishes to purchase, upon the terms and conditions stated in this Agreement, such principal amount of Note as is set forth immediately below its name on the signature pages hereto; and

NOW
THEREFORE, the Company and the Buyer severally (and not jointly) hereby agree as follows:

1.Purchase and Sale of Note. 

 

a.Purchase of Note. On the Closing
Date (as defined below), the Company shall issue and sell to the Buyer and the Buyer agrees to purchase from the Company such
principal amount of Note as is set forth immediately below the Buyer’s name on the signature pages hereto.

 

    	1

    	 	

    
 

 

b.Form
of Payment. On the Closing Date (as defined below), (i) the Buyer shall pay the purchase price for the Note to be
issued and sold to it at the Closing (as defined below) (the “Purchase Price”) by wire transfer of immediately
available funds to the Company, in accordance with the Company’s written wiring instructions, against delivery of the
Note in the principal amount equal to the Purchase Price as is set forth immediately below the Buyer’s name on the
signature pages hereto, and (ii) the Company shall deliver such duly executed Note on behalf of the Company, to the Buyer,
against delivery of such Purchase Price.

c.Closing
Date. Subject to the satisfaction (or written waiver) of the conditions thereto set forth in Section 6 and Section 7 below, the date and time of the issuance and sale of the Note pursuant
to this Agreement (the “Closing Date”) shall be 12:00 noon, Eastern Standard Time on or about November 13, 2012, or
such other mutually agreed upon time. The closing of the transactions contemplated by this Agreement (the “Closing”)
shall occur on the Closing Date at such location as may be agreed to by the parties.

2.Buyer’s Representations and Warranties.
The Buyer represents and warrants to the Company that:

a.Investment
Purpose. As of the date hereof, the Buyer is purchasing the Note and the shares of Common Stock issuable upon conversion of or otherwise pursuant to the Note (including, without
limitation, such additional shares of Common Stock, if any, as are issuable (i) on account of interest on the Note, (ii) as a result
of the events described in Sections 1.3 and 1.4(g) of the Note or (iii) in payment of the Standard Liquidated Damages Amount (as
defined in Section 2(f) below) pursuant to this Agreement, such shares of Common Stock being collectively referred to herein as
the “Conversion Shares” and, collectively with the Note, the “Securities”) for its own account and not
with a present view towards the public sale or distribution thereof, except pursuant to sales registered or exempted from registration
under the 1933 Act; provided, however, that by making the representations herein, the Buyer does not agree to hold any of
the Securities for any minimum or other specific term and reserves the right to dispose of the Securities at any time in accordance
with or pursuant to a registration statement or an exemption under the 1933 Act.

b.Accredited
Investor Status. The Buyer is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D (an “Accredited Investor”).

c.Reliance
on Exemptions. The Buyer understands that the Securities are being offered and sold to it in reliance upon specific exemptions from the registration requirements of United States
federal and state securities laws and that the Company is relying upon the truth and accuracy of, and the Buyer’s compliance
with, the representations, warranties, agreements, acknowledgments and understandings of the Buyer set forth herein in order to
determine the availability of such exemptions and the eligibility of the Buyer to acquire the Securities.

    	2

    	 	

    
d.Information.
The Buyer and its advisors, if any, have been, and for so long as the Note remain outstanding will continue to be,
furnished with all materials relating to the business, finances and operations of the Company and materials relating to the
offer and sale of the Securities which have been requested by the Buyer or its advisors. The Buyer and its advisors, if any,
have been, and for so long as the Note remain outstanding will continue to be, afforded the opportunity to ask questions of
the Company. Notwithstanding the foregoing, the Company has not disclosed to the Buyer any material nonpublic information and
will not disclose such information unless such information is disclosed to the public prior to or promptly following such
disclosure to the Buyer. Neither such inquiries nor any other due diligence investigation conducted by Buyer or any of its
advisors or representatives shall modify, amend or affect Buyer’s right to rely on the Company’s representations
and warranties contained in Section 3 below. The Buyer understands that its investment in the Securities involves a
significant degree of risk. The Buyer is not aware of any facts that may constitute a breach of any of the Company's
representations and warranties made herein.

e.Governmental
Review. The Buyer understands that no United States federal or state agency or any other government or governmental agency has passed upon or made any recommendation or endorsement
of the Securities.

f.Transfer
or Re-sale. The Buyer understands that (i) the sale or re-sale of the Securities has not been and is not being
registered under the 1933 Act or any applicable state securities laws, and the Securities may not be transferred unless (a)
the Securities are sold pursuant to an effective registration statement under the 1933 Act, (b) the Buyer shall have
delivered to the Company, at the cost of the Buyer, an opinion of counsel that shall be in form, substance and scope
customary for opinions of counsel in comparable transactions to the effect that the Securities to be sold or transferred may
be sold or transferred pursuant to an exemption from such registration, which opinion shall be accepted by the Company, (c)
the Securities are sold or transferred to an “affiliate” (as defined in Rule 144 promulgated under the 1933 Act
(or a successor rule) (“Rule 144”)) of the Buyer who agrees to sell or otherwise transfer the Securities only in
accordance with this Section 2(f) and who is an Accredited Investor, (d) the Securities are sold pursuant to Rule 144, or (e)
the Securities are sold pursuant to Regulation S under the 1933 Act (or a successor rule) (“Regulation S”), and
the Buyer shall have delivered to the Company, at the cost of the Buyer, an opinion of counsel that shall be in form,
substance and scope customary for opinions of counsel in corporate transactions, which opinion shall be accepted by the
Company; (ii) any sale of such Securities made in reliance on Rule 144 may be made only in accordance with the terms of said
Rule and further, if said Rule is not applicable, any re-sale of such Securities under circumstances in which the seller (or
the person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the 1933 Act) may
require compliance with some other exemption under the 1933 Act or the rules and regulations of the SEC thereunder; and (iii)
neither the Company nor any other person is under any obligation to register such Securities under the 1933 Act or any state
securities laws or to comply with the terms and conditions of any exemption thereunder (in each
case). Notwithstanding the foregoing or anything else contained herein to the contrary, the Securities may be pledged
as collateral in connection with a bonafide margin account or other lending arrangement.

    	3

    	 	

    
g.Legends.
The Buyer understands that the Note and, until such time as the Conversion Shares have been registered under the 1933 Act
may be sold pursuant to Rule 144 or Regulation S without any restriction as to the number of securities as of a particular date
that can then be immediately sold, the Conversion Shares may bear a restrictive legend in substantially the following form (and
a stop-transfer order may be placed against transfer of the certificates for such Securities):

“NEITHER THE ISSUANCE
AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED
FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY
ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID
ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR
FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

The
legend set forth above shall be removed and the Company shall issue a certificate without such legend to the holder of any Security
upon which it is stamped, if, unless otherwise required by applicable state securities laws, (a) such Security is registered for
sale under an effective registration statement filed under the 1933 Act or otherwise may be sold pursuant to Rule 144 or Regulation
S without any restriction as to the number of securities as of a particular date that can then be immediately sold, or (b) such
holder provides the Company with an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable
transactions, to the effect that a public sale or transfer of such Security may be made without registration under the 1933 Act,
which opinion shall be accepted by the Company so that the sale or transfer is effected. The Buyer agrees to sell all Securities,
including those represented by a certificate(s) from which the legend has been removed, in compliance with applicable prospectus
delivery requirements, if any. In the event that the Company does not accept the opinion of counsel provided by the Buyer with
respect to the transfer of Securities pursuant to an exemption from registration, such as Rule 144 or Regulation S, at the Deadline,
it will be considered an Event of Default pursuant to Section 3.2 of the Note.

    	4

    	 	

    
 

h.Authorization;
Enforcement. This Agreement has been duly and validly authorized. This Agreement has been duly executed and delivered on behalf
of the Buyer, and this Agreement constitutes a valid and binding agreement of the Buyer enforceable in accordance with its terms.

i.Residency.
The Buyer is a resident of the jurisdiction set forth immediately below the Buyer’s name on the signature pages hereto.

3.Representations
and Warranties of the Company. The Company represents and warrants to the Buyer that:

a.Organization
and Qualification. The Company and each of its Subsidiaries (as defined below), if any, is a corporation duly organized, validly existing and in good standing under the laws
of the jurisdiction in which it is incorporated, with full power and authority (corporate and other) to own, lease, use and operate
its properties and to carry on its business as and where now owned, leased, used, operated and conducted. Schedule 3(a) sets forth
a list of all of the Subsidiaries of the Company and the jurisdiction in which each is incorporated. The Company and each of its
Subsidiaries is duly qualified as a foreign corporation to do business and is in good standing in every jurisdiction in which its
ownership or use of property or the nature of the business conducted by it makes such qualification necessary except where the
failure to be so qualified or in good standing would not have a Material Adverse Effect. “Material Adverse Effect”
means any material adverse effect on the business, operations, assets, financial condition or prospects of the Company or its Subsidiaries,
if any, taken as a whole, or on the transactions contemplated hereby or by the agreements or instruments to be entered into in
connection herewith. “Subsidiaries” means any corporation or other organization, whether incorporated or unincorporated,
in which the Company owns, directly or indirectly, any equity or other ownership interest.

b.Authorization;
Enforcement. (i) The Company has all requisite corporate power and authority to enter into and perform this
Agreement, the Note and to consummate the transactions contemplated hereby and thereby and to issue the Securities, in
accordance with the terms hereof and thereof, (ii) the execution and delivery of this Agreement, the Note by the Company and
the consummation by it of the transactions contemplated hereby and thereby (including without limitation, the issuance of the
Note and the issuance and reservation for issuance of the Conversion Shares issuable upon conversion or exercise thereof)
have been duly authorized by the Company’s Board of Directors and no further consent or authorization of the Company,
its Board of Directors, or its shareholders is required, (iii) this Agreement has been duly executed and delivered by the
Company by its authorized representative, and such authorized representative is the true and official representative with
authority to sign this Agreement and the other documents executed in connection herewith and bind the Company accordingly,
and (iv) this Agreement constitutes, and upon execution and delivery by the Company of the Note, each of such instruments
will constitute, a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its
terms.

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c.Capitalization. As
of the date hereof, the authorized capital stock of the Company consists of: (i) 500,000,000 shares of Common Stock,
$0.0001 par value per share, of which 266,513,251 shares are issued and outstanding; and (ii) 10,000,000 shares of Preferred
Stock, $0.0001 par value per share, of which no shares are issued and outstanding; no shares are reserved for issuance
pursuant to the Company’s stock option plans, no shares are reserved for issuance pursuant to securities (other than
the Note and four (4) prior convertible promissory notes in favor of the Buyer: (a) prior convertible promissory note in
favor of the Buyer dated April 10, 2012 in the amount of $68,500.00 (which principal has since been reduced to $25,000.00)
for which 16,223,001 shares of Common Stock are presently reserved; (b) prior convertible promissory note in favor of the
Buyer dated May 3, 2012 in the amount of $42,500.00 for which 9,770,115 shares of Common Stock are presently reserved; (c)
prior convertible promissory note in favor of the Buyer dated June 19, 2012 in the amount of $32,500.00 for which 18,000,000
shares of Common Stock are presently reserved; and (d) prior convertible promissory note in favor of the Buyer dated August
3, 2012 in the amount of $32,500.00 for which 9,400,000 shares of Common Stock are presently reserved and shares reserved
pursuant to the Original Issue Discount Secured Convertible Promissory Note issued to Hanover Holdings I, LLC) exercisable
for, or convertible into or exchangeable for shares of Common Stock and 20,000,000 shares are reserved for issuance upon
conversion of the Note. All of such outstanding shares of capital stock are, or upon issuance will be, duly authorized,
validly issued, fully paid and non-assessable. No shares of capital stock of the Company are subject to preemptive rights or
any other similar rights of the shareholders of the Company or any liens or encumbrances imposed through the actions or
failure to act of the Company. As of the effective date of this Agreement, (i) there are no outstanding options,
warrants, scrip, rights to subscribe for, puts, calls, rights of first refusal, agreements, understandings, claims or other
commitments or rights of any character whatsoever relating to, or securities or rights convertible into or exchangeable for
any shares of capital stock of the Company or any of its Subsidiaries, or arrangements by which the Company or any of its
Subsidiaries is or may become bound to issue additional shares of capital stock of the Company or any of its Subsidiaries,
(ii) there are no agreements or arrangements under which the Company or any of its Subsidiaries is obligated to register the
sale of any of its or their securities under the 1933 Act and (iii) except for the Original Issue Discount Secured
Convertible Promissory Note issued to Hanover Holdings I, LLC there are no anti-dilution or price adjustment provisions
contained in any security issued by the Company (or in any agreement providing rights to security holders) that will be
triggered by the issuance of the Note or the Conversion Shares. The Company has furnished to the Buyer true and correct
copies of the Company’s Certificate of Incorporation as in effect on the date hereof (“Certificate of
Incorporation”), the Company’s By-laws, as in effect on the date hereof (the “By-laws”), and the
terms of all securities convertible into or exercisable for Common Stock of the Company and the material rights of
the holders thereof in respect thereto. The Company shall provide the Buyer with a written update of this representation
signed by the Company’s Chief Executive on behalf of the Company as of the Closing Date.

    	6

    	 	

    
d.Issuance
of Shares. The Conversion Shares are duly authorized and reserved for issuance and, upon conversion of the Note in accordance with its respective terms, will be validly
issued, fully paid and non-assessable, and free from all taxes, liens, claims and encumbrances with respect to the issue thereof
and shall not be subject to preemptive rights or other similar rights of shareholders of the Company and will not impose personal
liability upon the holder thereof.

e.Acknowledgment
of Dilution. The Company understands and acknowledges the potentially dilutive effect to the Common Stock upon the issuance of the Conversion Shares upon conversion of
the Note. The Company further acknowledges that its obligation to issue Conversion Shares upon conversion of the Note in accordance
with this Agreement, the Note is absolute and unconditional regardless of the dilutive effect that such issuance may have on the
ownership interests of other shareholders of the Company.

f.No
Conflicts. The execution, delivery and performance of this Agreement, the Note by the Company and the consummation by
the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance and reservation
for issuance of the Conversion Shares) will not (i) conflict with or result in a violation of any provision of the
Certificate of Incorporation or By-laws, or (ii) violate or conflict with, or result in a breach of any provision of, or
constitute a default (or an event which with notice or lapse of time or both could become a default) under, or give to others
any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture, patent, patent license or
instrument to which the Company or any of its Subsidiaries is a party, or (iii) result in a violation of any law, rule,
regulation, order, judgment or decree (including federal and state securities laws and regulations and regulations of any
self-regulatory organizations to which the Company or its securities are subject) applicable to the Company or any of its
Subsidiaries or by which any property or asset of the Company or any of its Subsidiaries is bound or affected (except for
such conflicts, defaults, terminations, amendments, accelerations, cancellations and violations as would not, individually or
in the aggregate, have a Material Adverse Effect). Neither the Company nor any of its Subsidiaries is in violation of its
Certificate of Incorporation, Bylaws or other organizational documents and neither the Company nor any of its Subsidiaries is
in default (and no event has occurred which with notice or lapse of time or both could put the Company or any of its
Subsidiaries in default) under, and neither the Company nor any of its Subsidiaries has taken any action or failed to take
any action that would give to others any rights of termination, amendment, acceleration or cancellation of, any agreement,
indenture or instrument to which the Company or any of its Subsidiaries is a party or by which any property or assets of the
Company or any of its Subsidiaries is bound or affected, except for possible defaults as would not, individually or in the
aggregate, have a Material Adverse Effect. The businesses of the Company and its Subsidiaries, if any, are not being
conducted, and shall not be conducted so long as the Buyer owns any of the Securities, in violation of any law, ordinance or
regulation of any governmental entity. Except as specifically contemplated by this Agreement and as required under the
1933 Act and any applicable state securities laws, the Company is not required to obtain any consent, authorization or order
of, or make any filing or registration with, any court, governmental agency, regulatory agency, self regulatory organization
or stock market or any third party in order for it to execute, deliver or perform any of its obligations under this
Agreement, the Note in accordance with the terms hereof or thereof or to issue and sell the Note in accordance with the terms
hereof and to issue the Conversion Shares upon conversion of the Note. All consents, authorizations, orders, filings and
registrations which the Company is required to obtain pursuant to the preceding sentence have been obtained or effected on or
prior to the date hereof. The Company is not in violation of the listing requirements of the Over-the-Counter Bulletin Board
(the “OTCBB”) and does not reasonably anticipate that the Common Stock will be delisted by the OTCBB in the
foreseeable future. The Company and its Subsidiaries are unaware of any facts or circumstances which might give rise to any
of the foregoing.

    	7

    	 	

    
g.SEC
Documents; Financial Statements. The Company has timely filed all reports, schedules, forms, statements and other
documents required to be filed by it with the SEC pursuant to the reporting requirements of the Securities Exchange Act of
1934, as amended (the “1934 Act”) (all of the foregoing filed prior to the date hereof and all exhibits included
therein and financial statements and schedules thereto and documents (other than exhibits to such documents) incorporated by
reference therein, being hereinafter referred to herein as the “SEC Documents”). Upon written request the Company
will deliver to the Buyer true and complete copies of the SEC Documents, except for such exhibits and incorporated documents.
As of their respective dates, the SEC Documents complied in all material respects with the requirements of the 1934 Act and
the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents,
at the time they were filed with the SEC, contained any untrue statement of a material fact or omitted to state a material
fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under
which they were made, not misleading. None of the statements made in any such SEC Documents is, or has been, required to be
amended or updated under applicable law (except for such statements as have been amended or updated in subsequent filings
prior the date hereof). As of their respective dates, the financial statements of the Company included in the SEC Documents
complied as to form in all material respects with applicable accounting requirements and the published rules and regulations
of the SEC with respect thereto. Such financial statements have been prepared in accordance with United States generally
accepted accounting principles, consistently applied, during the periods involved and fairly present in all material respects
the consolidated financial position of the Company and its consolidated Subsidiaries as of the dates thereof and the
consolidated results of their operations and cash flows for the periods then ended (subject, in the case of unaudited
statements, to normal year-end audit adjustments). Except as set forth in the financial statements of the Company included in
the SEC Documents, the Company has no liabilities, contingent or otherwise, other than (i) liabilities incurred in the
ordinary course of business subsequent to September 30, 2012, and (ii) obligations under contracts and commitments
incurred in the ordinary course of business and not required under generally accepted accounting principles to be reflected
in such financial statements, which, individually or in the aggregate, are not material to the financial condition or
operating results of the Company. The Company is subject to the reporting requirements of the 1934 Act.

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h.Absence
of Certain Changes. Since September 30, 2012, there has been no material adverse change and no material adverse development in the assets, liabilities, business, properties, operations,
financial condition, results of operations, prospects or 1934 Act reporting status of the Company or any of its Subsidiaries.

i.Absence
of Litigation. There is no action, suit, claim, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body
pending or, to the knowledge of the Company or any of its Subsidiaries, threatened against or affecting the Company or any of its
Subsidiaries, or their officers or directors in their capacity as such, that could have a Material Adverse Effect. Schedule 3(i)
contains a complete list and summary description of any pending or, to the knowledge of the Company, threatened proceeding against
or affecting the Company or any of its Subsidiaries, without regard to whether it would have a Material Adverse Effect. The Company
and its Subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing.

j.Patents,
Copyrights, etc. The Company and each of its Subsidiaries owns or possesses the requisite licenses or rights to use all patents, patent applications, patent rights, inventions,
know-how, trade secrets, trademarks, trademark applications, service marks, service names, trade names and copyrights (“Intellectual
Property”) necessary to enable it to conduct its business as now operated (and, as presently contemplated to be operated
in the future); there is no claim or action by any person pertaining to, or proceeding pending, or to the Company’s knowledge
threatened, which challenges the right of the Company or of a Subsidiary with respect to any Intellectual Property necessary to
enable it to conduct its business as now operated (and, as presently contemplated to be operated in the future); to the best of
the Company’s knowledge, the Company’s or its Subsidiaries’ current and intended products, services and processes
do not infringe on any Intellectual Property or other rights held by any person; and the Company is unaware of any facts or circumstances
which might give rise to any of the foregoing. The Company and each of its Subsidiaries have taken reasonable security measures
to protect the secrecy, confidentiality and value of their Intellectual Property.

k.No
Materially Adverse Contracts, Etc. Neither the Company nor any of its Subsidiaries is subject to any charter, corporate
or other legal restriction, or any judgment, decree, order, rule or regulation which in the judgment of the Company’s
officers has or is expected in the future to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries
is a party to any contract or agreement which in the judgment of the Company’s officers has or is expected to have a
Material Adverse Effect.

    	9

    	 	

    
l.Tax
Status. Except as disclosed on Schedule 3(l), the Company and each of its Subsidiaries has made or filed all federal, state
and foreign income and all other tax returns, reports and declarations required by any jurisdiction to which it is subject (unless
and only to the extent that the Company and each of its Subsidiaries has set aside on its books provisions reasonably adequate
for the payment of all unpaid and unreported taxes) and has paid all taxes and other governmental assessments and charges that
are material in amount, shown or determined to be due on such returns, reports and declarations, except those being contested
in good faith and has set aside on its books provisions reasonably adequate for the payment of all taxes for periods subsequent
to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed
to be due by the taxing authority of any jurisdiction, and the officers of the Company know of no basis for any such claim. The
Company has not executed a waiver with respect to the statute of limitations relating to the assessment or collection of any foreign,
federal, state or local tax. None of the Company’s tax returns is presently being audited by any taxing authority.

m.Certain
Transactions. Except for arm’s length transactions pursuant to which the Company or any of its Subsidiaries makes payments in the ordinary course of business upon terms no less favorable
than the Company or any of its Subsidiaries could obtain from third parties and other than the grant of stock options disclosed
on Schedule 3(c), none of the officers, directors, or employees of the Company is presently a party to any transaction with the
Company or any of its Subsidiaries (other than for services as employees, officers and directors), including any contract, agreement
or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or
from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any
corporation, partnership, trust or other entity in which any officer, director, or any such employee has a substantial interest
or is an officer, director, trustee or partner.

n.Disclosure.
All information relating to or concerning the Company or any of its Subsidiaries set forth in this Agreement and provided to the Buyer pursuant to Section 2(d) hereof and otherwise
in connection with the transactions contemplated hereby is true and correct in all material respects and the Company has not omitted
to state any material fact necessary in order to make the statements made herein or therein, in light of the circumstances under
which they were made, not misleading. No event or circumstance has occurred or exists with respect to the Company or any of its
Subsidiaries or its or their business, properties, prospects, operations or financial conditions, which, under applicable law,
rule or regulation, requires public disclosure or announcement by the Company but which has not been so publicly announced or disclosed
(assuming for this purpose that the Company’s reports filed under the 1934 Act are being incorporated into an effective registration
statement filed by the Company under the 1933 Act).

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o.Acknowledgment
Regarding Buyer’ Purchase of Securities. The Company acknowledges and agrees that the Buyer is acting solely in the
capacity of arm’s length purchasers with respect to this Agreement and the transactions contemplated hereby. The Company
further acknowledges that the Buyer is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity)
with respect to this Agreement and the transactions contemplated hereby and any statement made by the Buyer or any of its respective
representatives or agents in connection with this Agreement and the transactions contemplated hereby is not advice or a recommendation
and is merely incidental to the Buyer’ purchase of the Securities. The Company further represents to the Buyer that the
Company’s decision to enter into this Agreement has been based solely on the independent evaluation of the Company and its
representatives.

p.No Integrated
Offering. 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 in any security or solicited any offers to buy any security under circumstances that would require registration
under the 1933 Act of the issuance of the Securities to the Buyer. The issuance of the Securities to the Buyer will not be integrated
with any other issuance of the Company’s securities (past, current or future) for purposes of any shareholder approval provisions
applicable to the Company or its securities.

q.No Brokers.
The Company has taken no action which would give rise to any claim by any person for brokerage commissions, transaction fees or
similar payments relating to this Agreement or the transactions contemplated hereby.

r.Permits;
Compliance. The Company and each of its Subsidiaries is in possession of all franchises, grants, authorizations, licenses,
permits, easements, variances, exemptions, consents, certificates, approvals and orders necessary to own, lease and operate its
properties and to carry on its business as it is now being conducted (collectively, the “Company Permits”), and there
is no action pending or, to the knowledge of the Company, threatened regarding suspension or cancellation of any of the Company
Permits. Neither the Company nor any of its Subsidiaries is in conflict with, or in default or violation of, any of the Company
Permits, except for any such conflicts, defaults or violations which, individually or in the aggregate, would not reasonably be
expected to have a Material Adverse Effect. Since September 30, 2012, neither the Company nor any of its Subsidiaries has received
any notification with respect to possible conflicts, defaults or violations of applicable laws, except for notices relating to
possible conflicts, defaults or violations, which conflicts, defaults or violations would not have a Material Adverse Effect.

    	11

    	 	

    
s.Environmental
Matters.

(i)There are, to the Company’s knowledge,
with respect to the Company or any of its Subsidiaries or any predecessor of the Company, no past or present violations of Environmental
Laws (as defined below), releases of any material into the environment, actions, activities, circumstances, conditions, events,
incidents, or contractual obligations which may give rise to any common law environmental liability or any liability under the
Comprehensive Environmental Response, Compensation and Liability Act of 1980 or similar federal, state, local or foreign laws
and neither the Company nor any of its Subsidiaries has received any notice with respect to any of the foregoing, nor is any action
pending or, to the Company’s knowledge, threatened in connection with any of the foregoing. The term “Environmental
Laws” means all federal, state, local or foreign laws relating to pollution or protection of human health or the environment
(including, without limitation, ambient air, surface water, groundwater, land surface or subsurface strata), including, without
limitation, laws relating to emissions, discharges, releases or threatened releases of chemicals, pollutants contaminants, or
toxic or hazardous substances or wastes (collectively, “Hazardous Materials”) into the environment, or otherwise relating
to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials,
as well as all authorizations, codes, decrees, demands or demand letters, injunctions, judgments, licenses, notices or notice
letters, orders, permits, plans or regulations issued, entered, promulgated or approved thereunder.

(ii)Other than
those that are or were stored, used or disposed of in compliance with applicable law, no Hazardous Materials are contained on or about any real property currently owned,
leased or used by the Company or any of its Subsidiaries, and no Hazardous Materials were released on or about any real property
previously owned, leased or used by the Company or any of its Subsidiaries during the period the property was owned, leased or
used by the Company or any of its Subsidiaries, except in the normal course of the Company’s or any of its Subsidiaries’
business.

(iii)There are
no underground storage tanks on or under any real property owned, leased or used by the Company or any of its Subsidiaries that are not in compliance with applicable law.

t.Title
to Property. The Company and its Subsidiaries have good and marketable title in fee simple to all real property and good and marketable title to all personal property owned by them
which is material to the business of the Company and its Subsidiaries, in each case free and clear of all liens, encumbrances and
defects except such as are described in Schedule 3(t) or such as would not have a Material Adverse Effect. Any real property and
facilities held under lease by the Company and its Subsidiaries are held by them under valid, subsisting and enforceable leases
with such exceptions as would not have a Material Adverse Effect.

u.Insurance. The
Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility against such losses and
risks and in such amounts as management of the Company believes to be prudent and customary in the businesses in which
the Company and its Subsidiaries are engaged. Neither the Company nor any such 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 at a cost that would not have a Material Adverse Effect.
Upon written request the Company will provide to the Buyer true and correct copies of all policies relating to
directors’ and officers’ liability coverage, errors and omissions coverage, and commercial general liability
coverage.

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v.Internal
Accounting Controls. The Company and each of its Subsidiaries maintain a system of internal accounting controls sufficient,
in the judgment of the Company’s board of directors, to provide reasonable assurance that (i) transactions are executed
in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with generally accepted accounting principles 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.

w.Foreign
Corrupt Practices. Neither the Company, nor any of its Subsidiaries, nor any director, officer, agent, employee or other person acting on behalf of the Company or any Subsidiary
has, in the course of his actions for, or on behalf of, the Company, used any corporate funds for any unlawful contribution, gift,
entertainment or other unlawful expenses relating to political activity; made any direct or indirect unlawful payment to any foreign
or domestic government official or employee from corporate funds; violated or is in violation of any provision of the U.S. Foreign
Corrupt Practices Act of 1977, as amended, or made any bribe, rebate, payoff, influence payment, kickback or other unlawful payment
to any foreign or domestic government official or employee.

x.Solvency.
The Company (after giving effect to the transactions contemplated by this Agreement) is not solvent (i.e., its assets have a fair market value in excess of the
amount required to pay its probable liabilities on its existing debts as they become absolute and matured). The Company did receive
a qualified opinion from its auditors with respect to its most recent fiscal year end.

y.No Investment
Company. The Company is not, and upon the issuance and sale of the Securities as contemplated by this Agreement will not be an “investment company” required
to be registered under the Investment Company Act of 1940 (an “Investment Company”). The Company is not controlled
by an Investment Company.

z.Breach
of Representations and Warranties by the Company. If the Company breaches any of the representations or warranties set forth in this Section 3, and in addition to any other remedies
available to the Buyer pursuant to this Agreement, it will be considered an Event of default under Section 3.4 of the Note.

4. COVENANTS.

    	13

    	 	

    
 

a.Best Efforts. The parties shall use their best efforts to satisfy timely each of the conditions described
in Section 6 and 7 of this Agreement.

b.Form
D; Blue Sky Laws. The Company agrees to file a Form D with respect to the Securities as required under Regulation D and to
provide a copy thereof to the Buyer promptly after such filing. The Company shall, on or before the Closing Date, take such action
as the Company shall reasonably determine is necessary to qualify the Securities for sale to the Buyer at the applicable closing
pursuant to this Agreement under applicable securities or “blue sky” laws of the states of the United States (or to
obtain an exemption from such qualification), and shall provide evidence of any such action so taken to the Buyer on or prior to
the Closing Date.

c.Use
of Proceeds. The Company shall use the proceeds for general working capital purposes.

d.[INTENTIONALLY
DELETED].

e.Expenses.
At the Closing, the Company shall reimburse Buyer for expenses incurred by them in connection with the negotiation, preparation,
execution, delivery and performance of this Agreement and the other agreements to be executed in connection herewith (“Documents”),
including, without limitation, reasonable attorneys’ and consultants’ fees and expenses, transfer agent fees, fees
for stock quotation services, fees relating to any amendments or modifications of the Documents or any consents or waivers of provisions
in the Documents, fees for the preparation of opinions of counsel, escrow fees, and costs of restructuring the transactions contemplated
by the Documents. When possible, the Company must pay these fees directly, otherwise the Company must make immediate payment for
reimbursement to the Buyer for all fees and expenses immediately upon written notice by the Buyer or the submission of an invoice
by the Buyer.The Company’s obligation with respect to this transaction is to reimburse Buyer’ expenses shall be $2,500.

f.Financial
Information. Upon written request the Company agrees to send or make available the following reports to the Buyer until the
Buyer transfers, assigns, or sells all of the Securities: (i) within ten (10) days after the filing with the SEC, a copy of its
Annual Report on Form 10-K its Quarterly Reports on Form 10-Q and any Current Reports on Form 8-K; (ii) within one (1) day after
release, copies of all press releases issued by the Company or any of its Subsidiaries; and (iii) contemporaneously with the making
available or giving to the shareholders of the Company, copies of any notices or other information the Company makes available
or gives to such shareholders.

g.[INTENTIONALLY
DELETED] 

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h.Listing.
The Company shall promptly secure the listing of the Conversion Shares upon each national securities exchange or automated
quotation system, if any, upon which shares of Common Stock are then listed (subject to official notice of issuance) and, so long
as the Buyer owns any of the Securities, shall maintain, so long as any other shares of Common Stock shall be so listed, such
listing of all Conversion Shares from time to time issuable upon conversion of the Note. The Company will obtain and, so long
as the Buyer owns any of the Securities, maintain the listing and trading of its Common Stock on the OTCBB or any equivalent replacement
exchange, the Nasdaq National Market (“Nasdaq”), the Nasdaq SmallCap Market (“Nasdaq SmallCap”), the New
York Stock Exchange (“NYSE”), or the American Stock Exchange (“AMEX”) and will comply in all respects
with the Company’s reporting, filing and other obligations under the bylaws or rules of the Financial Industry Regulatory
Authority (“FINRA”) and such exchanges, as applicable. The Company shall promptly provide to the Buyer copies of any
notices it receives from the OTCBB and any other exchanges or quotation systems on which the Common Stock is then listed regarding
the continued eligibility of the Common Stock for listing on such exchanges and quotation systems.

i.Corporate
Existence. So long as the Buyer beneficially owns any Note, the Company shall maintain its corporate existence and shall not sell all or substantially all of the Company’s
assets, except in the event of a merger or consolidation or sale of all or substantially all of the Company’s assets, where
the surviving or successor entity in such transaction (i) assumes the Company’s obligations hereunder and under the agreements
and instruments entered into in connection herewith and (ii) is a publicly traded corporation whose Common Stock is listed for
trading on the OTCBB, Nasdaq, Nasdaq SmallCap, NYSE or AMEX.

j.No Integration.
The Company shall not make any offers or sales of any security (other than the Securities) under circumstances that would require registration of the Securities being offered
or sold hereunder under the 1933 Act or cause the offering of the Securities to be integrated with any other offering of securities
by the Company for the purpose of any stockholder approval provision applicable to the Company or its securities.

k.Breach
of Covenants. If the Company breaches any of the covenants set forth in this Section 4, and in addition to any other remedies available to the Buyer pursuant to this Agreement,
it will be considered an event of default under Section 3.4 of the Note.

l.Failure
to Comply with the 1934 Act. So long as the Buyer beneficially owns the Note, the Company shall comply with the reporting requirements of the 1934 Act; and the Company shall continue
to be subject to the reporting requirements of the 1934 Act.

m.Trading
Activities. Neither the Buyer nor its affiliates has an open short position in the common stock of the Company and the Buyer
agree that it shall not, and that it will cause its affiliates not to, engage in any short sales of or hedging transactions with
respect to the common stock of the Company.

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5.Transfer
Agent Instructions. The Company shall issue irrevocable instructions to its transfer agent to issue certificates, registered
in the name of the Buyer or its nominee, for the Conversion Shares in such amounts as specified from time to time by the Buyer
to the Company upon conversion of the Note in accordance with the terms thereof (the “Irrevocable Transfer Agent Instructions”).
In the event that the Borrower proposes to replace its transfer agent, the Borrower shall provide, prior to the effective date
of such replacement, a fully executed Irrevocable Transfer Agent Instructions in a form as initially delivered pursuant to the
Purchase Agreement (including but not limited to the provision to irrevocably reserve shares of Common Stock in the Reserved Amount)
signed by the successor transfer agent to Borrower and the Borrower. Prior to registration of the Conversion Shares under the
1933 Act or the date on which the Conversion Shares may be sold pursuant to Rule 144 without any restriction as to the number
of Securities as of a particular date that can then be immediately sold, all such certificates shall bear the restrictive legend
specified in Section 2(g) of this Agreement. The Company warrants that: (i) no instruction other than the Irrevocable Transfer
Agent Instructions referred to in this Section 5, and stop transfer instructions to give effect to Section 2(f) hereof (in the
case of the Conversion Shares, prior to registration of the Conversion Shares under the 1933 Act or the date on which the Conversion
Shares may be sold pursuant to Rule 144 without any restriction as to the number of Securities as of a particular date that can
then be immediately sold), will be given by the Company to its transfer agent and that the Securities shall otherwise be freely
transferable on the books and records of the Company as and to the extent provided in this Agreement and the Note; (ii) it will
not direct its transfer agent not to transfer or delay, impair, and/or hinder its transfer agent in transferring (or issuing)(electronically
or in certificated form) any certificate for Conversion Shares to be issued to the Buyer upon conversion of or otherwise pursuant
to the Note as and when required by the Note and this Agreement; and (iii) it will not fail to remove (or directs its transfer
agent not to remove or impairs, delays, and/or hinders its transfer agent from removing) any restrictive legend (or to withdraw
any stop transfer instructions in respect thereof) on any certificate for any Conversion Shares issued to the Buyer upon conversion
of or otherwise pursuant to the Note as and when required by the Note and this Agreement. Nothing in this Section shall affect
in any way the Buyer’s obligations and agreement set forth in Section 2(g) hereof to comply with all applicable prospectus
delivery requirements, if any, upon re-sale of the Securities. If the Buyer provides the Company, at the cost of the Buyer, with
(i) an opinion of counsel in form, substance and scope customary for opinions in comparable transactions, to the effect that a
public sale or transfer of such Securities may be made without registration under the 1933 Act and such sale or transfer is effected
or (ii) the Buyer provides reasonable assurances that the Securities can be sold pursuant to Rule 144, the Company shall permit
the transfer, and, in the case of the Conversion Shares, promptly instruct its transfer agent to issue one or more certificates,
free from restrictive legend, in such name and in such denominations as specified by the Buyer. The Company acknowledges that
a breach by it of its obligations hereunder will cause irreparable harm to the Buyer, by vitiating the intent and purpose of the
transactions contemplated hereby. Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations
under this Section 5 may be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions
of this Section, that the Buyer shall be entitled, in addition to all other available remedies, to an injunction restraining any
breach and requiring immediate transfer, without the necessity of showing economic loss and without any bond or other security
being required.

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6.Conditions
to the Company’s Obligation to Sell. The obligation of the Company hereunder to issue and sell the Note to the Buyer
at the Closing is subject to the satisfaction, at or before the Closing Date of each of the following conditions thereto, provided
that these conditions are for the Company’s sole benefit and may be waived by the Company at any time in its sole discretion:

a.The Buyer
shall have executed this Agreement and delivered the same to the Company.

b.The Buyer
shall have delivered the Purchase Price in accordance with Section 1(b) above.

c.The representations
and warranties of the Buyer shall be true and correct in all material respects as of the date when made and as of the Closing Date as though made at that time (except for
representations and warranties that speak as of a specific date), and the Buyer shall have performed, satisfied and complied in
all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied
with by the Buyer at or prior to the Closing Date.

d.No litigation,
statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by or in any court or governmental authority of
competent jurisdiction or any self-regulatory organization having authority over the matters contemplated hereby which prohibits
the consummation of any of the transactions contemplated by this Agreement.

7.Conditions to The Buyer’s Obligation
to Purchase. The obligation of the Buyer hereunder to purchase the Note at the Closing is subject to the satisfaction, at
or before the Closing Date of each of the following conditions, provided that these conditions are for the Buyer’s sole
benefit and may be waived by the Buyer at any time in its sole discretion:

a.The Company shall have executed this Agreement
and delivered the same to the Buyer.

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b.The
Company shall have delivered to the Buyer the duly executed Note (in such denominations as the Buyer shall request) in
accordance with Section 1(b) above.

c.The Irrevocable
Transfer Agent Instructions, in form and substance satisfactory to a majority-in-interest of the Buyer, shall have been delivered to and acknowledged in writing by the
Company’s Transfer Agent.

d.The representations
and warranties of the Company shall be true and correct in all material respects as of the date when made and as of the Closing Date as though made at such time (except
for representations and warranties that speak as of a specific date) and the Company shall have performed, satisfied and complied
in all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or
complied with by the Company at or prior to the Closing Date. The Buyer shall have received a certificate or certificates, executed
by the chief executive officer of the Company, dated as of the Closing Date, to the foregoing effect and as to such other matters
as may be reasonably requested by the Buyer including, but not limited to certificates with respect to the Company’s Certificate
of Incorporation, By-laws and Board of Directors’ resolutions relating to the transactions contemplated hereby.

e.No litigation,
statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by or in any court or governmental authority of
competent jurisdiction or any self-regulatory organization having authority over the matters contemplated hereby which prohibits
the consummation of any of the transactions contemplated by this Agreement.

f.No event
shall have occurred which could reasonably be expected to have a Material Adverse Effect on the Company including but not limited to a change in the 1934 Act reporting status
of the Company or the failure of the Company to be timely in its 1934 Act reporting obligations.

g.The Conversion
Shares shall have been authorized for quotation on the OTCBB and trading in the Common Stock on the OTCBB shall not have been suspended by the SEC or the OTCBB.

h.The Buyer
shall have received an officer’s certificate described in Section 3(c) above, dated as of the Closing Date.

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8.Governing
Law; Miscellaneous.

a.Governing Law. This Agreement shall
be governed by and construed in accordance with the laws of the State of New York without regard to principles of conflicts of
laws. Any action brought by either party against the other concerning the transactions contemplated by this Agreement shall be
brought only in the state courts of New York or in the federal courts located in the state and county of Nassau. The parties to
this Agreement hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not
assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The Company and Buyer waive
trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney's fees and costs.
In the event that any provision of this Agreement or any other agreement delivered in connection herewith is invalid or unenforceable
under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict
therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid
or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party
hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in
connection with this Agreement or any other Transaction Document 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.

b.Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which shall constitute one and the same agreement and shall
become effective when counterparts have been signed by each party and delivered to the other party.

c.Headings.
The headings of this Agreement are for convenience of reference only and shall not form part of, or affect the interpretation of, this Agreement.

d.Severability.
In the event that any provision of this Agreement is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative
to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any provision
hereof which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision
hereof.

e.Entire
Agreement; Amendments. This Agreement and the instruments referenced herein contain the entire understanding of the parties with respect to the matters covered herein and therein
and, except as specifically set forth herein or therein, neither the Company nor the Buyer makes any representation, warranty,
covenant or undertaking with respect to such matters. No provision of this Agreement may be waived or amended other than by an
instrument in writing signed by the majority in interest of the Buyer.

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f.Notices.
All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in
writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified,
return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted
by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified
most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed
effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile
machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice
is to be received), or the first business day following such delivery (if delivered other than on a business day during normal
business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express
courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur.
The addresses for such communications shall be:

If to the Company, to:

CLEAN WIND ENERGY TOWER, INC.

1997 Annapolis Exchange Parkway

Annapolis, MD 21401

Attn: RONALD W. PICKETT, Chief Executive Officer

facsimile: [enter fax number]

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

Fleming PLLC

Attn: Stephen M. Fleming

49 Front Street, Suite
206

Rockville Centre, NY 11570

facsimile(516) 977-1209

If to the Buyer:

ASHER ENTERPRISES, INC.

1 Linden Pl., Suite 207

Great Neck, NY. 11021

Attn: Curt Kramer, President

facsimile: 516-498-9894

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

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Naidich Wurman Birnbaum &Maday LLP

80 Cuttermill Road, Suite 410

Great Neck, NY11021

Attn: Bernard S. Feldman, Esq.

facsimile: 516-466-3555

Each party shall provide notice to
the other party of any change in address.

g.Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and assigns. Neither the Company nor the Buyer shall assign this
Agreement or any rights or obligations hereunder without the prior written consent of the other. Notwithstanding the foregoing,
subject to Section 2(f), the Buyer may assign its rights hereunder to any person that purchases Securities in a private transaction
from the Buyer or to any of its “affiliates,” as that term is defined under the 1934 Act, without the consent of the
Company.

h.Third
Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any
provision hereof be enforced by, any other person.

i.Survival.
The representations and warranties of the Company and the agreements and covenants set forth in this Agreement shall survive the closing hereunder notwithstanding any due diligence
investigation conducted by or on behalf of the Buyer. The Company agrees to indemnify and hold harmless the Buyer and all their
officers, directors, employees and agents for loss or damage arising as a result of or related to any breach or alleged breach
by the Company of any of its representations, warranties and covenants set forth in this Agreement or any of its covenants and
obligations under this Agreement, including advancement of expenses as they are incurred.

j.Publicity.
The Company, and the Buyer shall have the right to review a reasonable period of time before issuance of any press releases, SEC, OTCBB or FINRA filings, or any other public statements
with respect to the transactions contemplated hereby; provided, however, that the Company shall be entitled, without the
prior approval of the Buyer, to make any press release or SEC, OTCBB (or other applicable trading market) or FINRA filings with
respect to such transactions as is required by applicable law and regulations (although the Buyer shall be consulted by the Company
in connection with any such press release prior to its release and shall be provided with a copy thereof and be given an opportunity
to comment thereon).

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

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l.No Strict
Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will
be applied against any party.

m.Remedies.
The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Buyer by vitiating the intent and purpose of the transaction contemplated
hereby. Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under this Agreement will
be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions of this Agreement, that
the Buyer shall be entitled, in addition to all other available remedies at law or in equity, and in addition to the penalties
assessable herein, to an injunction or injunctions restraining, preventing or curing any breach of this Agreement and to enforce
specifically the terms and provisions hereof, without the necessity of showing economic loss and without any bond or other security
being required.

IN WITNESS WHEREOF,
the undersigned Buyer and the Company have caused this Agreement to be duly executed as of the date first above written.

 

	CLEAN WIND ENERGY TOWER, INC.	 
	 	 	 
	By:	 	 
	 	RONALD W. PICKETT 
 Chief Executive Officer	 
	 	 	 
	 	 	 
	 	 	 
	ASHER ENTERPRISES, INC.	 
	 	 	 
	By:	 	 
	Name: Curt Kramer 
 Title: President	 
	1 Linden Pl., Suite 207 
 Great Neck, NY. 11021	 

 

	AGGREGATE SUBSCRIPTION AMOUNT:	 
	Aggregate Principal Amount of Note:	$32,500.00
	Aggregate Purchase Price:	$32,500.00
	 	 
	 	 

 

2977(7) 11/9/12

maschair@aol.com

 

 

 

 

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