Document:

Exhibit 10.2

SECURITIES PURCHASE AGREEMENT

This Securities
Purchase Agreement (this “Agreement”) is dated as of June 26, 2013 between W270, Inc., a Nevada corporation
(the “Company”), each purchaser identified on the signature pages hereto (each, including its successors and
assigns, a “Purchaser” and collectively the “Purchasers”), and W-Net Fund I, L.P., which
will serve as the representative of the Purchasers, and is referred to herein from time to time as the “Purchaser Representative”.

WHEREAS, the Company,
Saleen California Merger Corporation, a California corporation (“CA MergerCo”), Saleen Florida Merger Corporation,
a Florida corporation (“FL MergerCo”), Saleen Automotive, Inc., a Florida corporation (“Saleen Automotive”),
SMS Signature Cars, a California corporation (“SMS” and together with Saleen Automotive, collectively, the “Saleen
Entities”), and Steve Saleen (“Saleen” and together with the Saleen Entities, the “Saleen
Parties”), have entered into an Agreement and Plan of Merger, dated May 23, 2013 (as the same may be amended from time
to time) (the “Merger Agreement”), which provides, upon the terms and subject to the conditions thereof, for
the merger of (a) CA MergerCo with and into SMS and (b) FL MergerCo with and into Saleen Automotive, whereby the outstanding capital
stock of SMS and Saleen Automotive shall be cancelled and the holders of Saleen Automotive’s common stock shall receive certain
securities of the Company as further set forth in the Merger Agreement (the “Merger”);

WHEREAS, it is contemplated
that immediately following the Merger, the Company shall consummate a capital raise and in connection therewith the Purchasers
shall agree to enter into this Agreement; and

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

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

ARTICLE I. 

DEFINITIONS

1.1           
Definitions. In addition to the terms defined elsewhere in this Agreement: (a) capitalized
terms that are not otherwise defined herein have the meanings given to such terms in the Notes (as defined herein), and (b) the
following terms have the meanings set forth in this Section 1.1:

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act. With respect to a Purchaser,
any investment fund or managed account that is managed on a discretionary basis by the same investment manager as such Purchaser
will be deemed to be an Affiliate of such Purchaser.

“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 California are authorized or required by law or other governmental action
to close.

“Closing”
shall have the meaning ascribed to such term in Section 2.1(a).

“Closing
Date” shall have the meaning ascribed to such term in Section 2.1(a).

“Commission”
means the 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 into.

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

“Company
Counsel” means Stubbs Alderton & Markiles, LLP, with offices located at 15260 Ventura Boulevard, 20th
Floor, Sherman Oaks, California 91403, Attention: Greg Akselrud, fax: (818) 444-6303.

“Conversion
Price” shall have the meaning ascribed to such term in the Notes.

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

“Discussion
Time” shall have the meaning ascribed to such term in Section 3.2(f).

“Escrow
Agent” shall have the meaning ascribed to such term in Section 2.1(b).

“Escrow
Agreement” shall have the meaning ascribed to such term in Section 2.1(b).

“Europa”
means Europa International Inc.

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

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

 

“Exempt
Issuance” means the issuance of securities upon the exercise or exchange of or conversion of any Securities issued hereunder
and/or other securities exercisable or exchangeable for or convertible into shares of Common Stock issued and outstanding on the
date of this Agreement, provided that such securities have not been amended since the date of this Agreement to directly or indirectly
effectively increase the number of such securities or to decrease the exercise, exchange or conversion price of such securities.

“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(z).

“Intellectual
Property” means any and all United States and foreign: (a) patent registrations and patent applications (including all
reissues, divisions, continuations, continuations-in-part, extensions and reexaminations) and all rights therein and all improvements
to the inventions disclosed in each such registration or application, (b) trademarks, service marks, trade dress, trade names and
corporate names, whether or not registered, including but not limited to all common law rights, and registrations and applications
for registration thereof, (c) copyrights (including but not limited to copyrights on designs) (registered or otherwise) and registrations
and applications for registration thereof, (d) computer software, including, without limitation, source code, operating systems
and specifications, data, data bases, files, documentation and other materials related thereto, data and documentation, (e) trade
secrets and confidential technical and business information (including but not limited to formulas, compositions, and inventions
reduced to practice, whether or not patentable), (f) confidential technology (including know-how and show-how), manufacturing and
production processes and techniques, research and development information, drawings, specifications, designs, plans, proposals,
technical data, copyrightable works, financial, marketing and business data, pricing and cost information, business and marketing
plans and customer and supplier lists and information, (h) any right arising under any law providing protection to industrial or
other designs, (i) all rights to obtain and rights to apply for patents, and to register trademarks and copyrights, and (j) all
rights to sue or recover and retain damages and costs and attorneys fees for present and past infringement of any of the foregoing.

“IP
Security Agreement” means the Intellectual Property Security Agreement, dated the date hereof, by the Company in favor
of the Purchasers, in the form of Exhibit C attached hereto, securing the obligations of the Company under the Notes and
other Transaction Documents.

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

“Maximum
Rate” shall have the meaning ascribed to such term in Section 5.17.

“Notes”
means the 3.0% Senior Secured Convertible Notes due, subject to the terms therein, four (4) years from their date of issuance,
issued by the Company to the Purchasers hereunder, in the form of Exhibit A attached hereto.

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

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

“Purchaser
Party” shall have the meaning ascribed to such term in Section 4.10.

“Purchaser
Rep Expenses” shall have the meaning ascribed to such term in Section 2.1(c)(iii).

“Purchaser
Representative” shall have the meaning ascribed to such term in Section 2.1(c)(i).

“Registration
Rights Agreement” means the Registration Rights Agreement, dated the date hereof, among the Company, the Purchasers and
the other holders named therein, in the form of Exhibit D attached hereto.

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

“Required
Minimum” means, as of any date, the maximum aggregate number of shares of Common Stock then issued or potentially issuable
in the future pursuant to the Transaction Documents, including any Underlying Shares issuable upon exercise or conversion in full
of all Notes (including Underlying Shares issuable as payment of interest), ignoring any conversion or exercise limits set forth
therein, and assuming that the Conversion Price is at all times on and after the date of determination 75% of the then Conversion
Price on the Trading Day immediately prior to the date of determination.

“Regulation
13D-G” means Regulation 13D-G promulgated by the Commission pursuant to the Exchange Act, as such Regulation and the
Rules thereunder 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 Regulation.

“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.

“Saleen
Entities” shall have the meaning ascribed to such term in the recitals hereto.

“Saleen
Entities Financial Statements” shall have the meaning ascribed to such term in Section 3.1(h).

“Saleen
Parties Intellectual Property” shall have the meaning ascribed to such term in Section 3.1(n).

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

“Securities”
means the Notes and the Underlying Shares.

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

“Security
Agreement” means the Security Agreement, dated the date hereof, by the Company in favor of the Purchasers, in the form
of Exhibit B attached hereto, securing the obligations of the Company under the Notes and other Transaction Documents.

“Security
Documents” means any and all means any and all security agreements, pledge agreements, hypothecation agreements, collateral
assignments, mortgages, deeds of trust, control agreements and similar such agreements, executed and delivered by the Company,
any of its Subsidiaries and/or any third party in favor of the Purchasers pursuant to the Transaction Documents which secures the
Company’s obligations under the Transaction Documents and/or any of the Securities, and other documents executed, delivered
and/or filed by the Company, any of its Subsidiaries, any third party and/or the Purchasers as permitted or required under any
of the foregoing, including without limitation the Security Agreement and the IP Security Agreement.

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

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

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

“Subsidiary
Guarantee” means the Subsidiary Guarantee, in the form attached hereto as Exhibit E, executed by each Subsidiary
in favor of the Purchasers, guaranteeing the Company’s obligations under the Notes.

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

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

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

“Transfer
Agent” means Action Stock Transfer, the current transfer agent of the Company with a mailing address of 2469 E. Fort
Union Blvd., Suite 214, Salt Lake City, UT 84121, and a facsimile number of (801) 274-1099, and any successor transfer agent of
the Company.

“Underlying
Shares” means the shares of Common Stock issued and issuable upon conversion or redemption of the Notes and issued and
issuable in lieu of the cash payment of interest on the Notes in accordance with the terms of the Notes.

“Verdad”
means Verdad Telecom, Inc.

“Voting
Agreement” means the Voting Agreement, dated the date hereof, among the Company, the Purchasers and the other stockholders
named therein, in the form of Exhibit F attached hereto.

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

“W-Net”
means W-Net Fund I, L.P.

ARTICLE II. 

PURCHASE AND SALE

2.1           
Closing. 

(a)            
The purchase and sale of the Notes (the “Closing”) shall take place on
June 26, 2013, at 10:00 a.m., Pacific Time (“Closing Date”), at the offices of Company Counsel or at such other
location or time or on such other date mutually agreed upon by the Company and all of the Purchasers, subject to the conditions
precedent for the Closing as set forth in Section 2.3, and to each party’s obligations hereunder having been satisfied or
waived. At the Closing, upon the terms and subject to the conditions set forth herein, the Company agrees to sell, and the Purchasers,
severally and not jointly, agree to purchase, in the aggregate, $3,000,000 in principal amount of the Notes. On or prior to the
Closing, each Purchaser participating in the Closing shall deliver to the Escrow Agent, via wire transfer or a certified check,
immediately available funds equal to its Subscription Amount (other than Purchasers converting existing indebtedness as permitted
by the Company, who shall deliver to the Escrow Agent original versions of the instruments evidencing such indebtedness) and the
Company shall deliver to the Escrow Agent in respect of each Purchaser its respective Note, as determined pursuant to Section 2.2(a),
and the Company and each Purchaser shall deliver the other items set forth in Section 2.2 deliverable at the Closing. 

 

(b)           
Prior to the Closing, the Purchasers and the Company shall enter into an escrow agreement
(the “Escrow Agreement”) with an independent escrow agent selected by the Purchaser Representative and reasonably
acceptable to the Company (the “Escrow Agent”). Pursuant to the terms of the Escrow Agreement, the Purchasers
and the Company shall deliver the closing deliveries referenced in Section 2.2 with the Escrow Agent in connection with the Closing.
Distributions of any Subscription Amounts, Notes, and other Transaction Documents shall be governed by the terms and conditions
of the Escrow Agreement. The adoption of this Agreement shall constitute approval of the Escrow Agreement and of all the arrangements
relating thereto, including, without limitation, the placement of the Notes in escrow and the appointment of W-Net as representative
of the Purchasers. 

		(c)	Purchaser Representative.

(i)             
By virtue of the execution of this Agreement by each Purchaser, each of the Purchasers shall
be deemed to have agreed to appoint W-Net as its agent and attorney-in-fact, as the purchaser representative (the “Purchaser
Representative”) for and on behalf of the Purchasers to give and receive notices and communications, to agree to, negotiate,
enter into settlements and compromises of, and comply with orders of courts with respect to any indemnification claims, to assert,
negotiate, enter into settlements and compromises of, and comply with orders of courts with respect to, any other claim by the
Company against any Purchaser or by any such Purchaser against the Company, in each case relating to this Agreement or the transactions
contemplated hereby, and to take all other actions that are either (A) necessary or appropriate in the judgment of the Purchaser
Representative for the accomplishment of the foregoing or (B) specifically mandated by the terms of this Agreement. Such agency
may be changed by the Purchasers from time to time upon not less than thirty (30) days prior written notice to the Company; provided,
however, that the Purchaser Representative may not be removed unless Purchasers holding at least two-thirds (2/3) of the outstanding
principal amount of the Notes agree to such removal and to the identity of the substituted agent. A vacancy in the position of
Purchaser Representative, whether due to the resignation, removal or dissolution of the Purchaser Representative or for any other
reason, may be filled by the recipients of a majority in interest of the outstanding principal amount of the Notes. No bond shall
be required of the Purchaser Representative, and the Purchaser Representative shall not receive any compensation for its services.
Notices or communications to or from the Purchaser Representative shall constitute notice to or from the Purchasers.

(ii)           
The Purchaser Representative shall not be liable for any act done or omitted hereunder as
Purchaser Representative while acting (A) in good faith or (B) with the consent of the holders of a majority in interest of the
outstanding principal amount of the Notes. The Purchasers shall indemnify the Purchaser Representative and hold the Purchaser Representative
harmless against any loss, liability or expense incurred without willful misconduct or bad faith on the part of the Purchaser Representative
and arising out of or in connection with the acceptance or administration of the Purchaser Representative’s duties hereunder,
including the reasonable fees and expenses of any legal counsel, accountant or other professional advisor retained by the Purchaser
Representative. The Purchaser Representative will be entitled to the advancement and reimbursement by the Purchasers of costs and
expenses incurred by or on behalf of the Purchaser Representative in the performance of its duties hereunder, including the reasonable
fees and expenses of any legal counsel. A decision, act, consent or instruction of the Purchaser Representative, including, but
not limited to, an amendment, extension or waiver of this Agreement, shall constitute a decision of the Purchasers and shall be
final, binding and conclusive upon the Purchasers; and the Company may rely upon any such decision, act, consent or instruction
of the Purchaser Representative as being the decision, act, consent or instruction of the Purchasers. 

(iii)         
Each Purchaser agrees to pay and be responsible for such Purchaser’s pro rata portion
(based upon the portion of Notes previously subscribed for by such Purchaser) of any expenses or other costs incurred by the Purchaser
Representative in the course of performing the role of Purchaser Representative under this Agreement (“Purchaser Rep Expenses”).
From time to time as such Purchaser Rep Expenses are incurred or are reasonably anticipated to be incurred, the Purchaser Representative
may submit invoices therefor to each of the Purchasers with a calculation of the amount owed by each Purchaser based on their respective
pro rata portions thereof. Within thirty (30) days after delivery of each such invoice, each Purchaser shall pay to the Purchaser
Representative such Purchaser’s pro rata portion of such invoiced amount. All such invoiced amounts shall be deemed to be
valid and reimbursable unless (A) the amount of such Purchaser Rep Expenses is manifestly incorrect or (B) the nature of such invoiced
amounts is clearly unrelated to any reasonable activities of the Purchaser Representative under this Agreement.

 

2.2           
Deliveries.

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

		(i)	this Agreement, duly executed by the Company;

(ii)           
a Note with a principal amount equal to such Purchaser’s Subscription Amount, registered
in the name of such Purchaser;

 

(iii)         
the Security Documents, including, without limitation, the Security Agreement and the IP Security
Agreement, duly executed by the Company and each Subsidiary; 

(iv)         
the Voting Agreement, duly executed by the Company;

(v)           
the Registration Rights Agreement, duly executed by the Company; 

(vi)         
the Subsidiary Guarantee, duly executed by each Subsidiary of the Company; and

(vii)       
the Escrow Agreement, duly executed by the Company.

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

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

(ii)           
such Purchaser’s Subscription Amount by wire transfer to the account as specified in
writing by the Company or, with respect to Purchasers converting existing indebtedness as permitted by the Company, original versions
of the instruments evidencing such indebtedness; 

(iii)         
the Security Documents to which each Purchaser is a party and required by law to be signed
by such Party in order to be binding;

(iv)         
the Voting Agreement, duly executed by such Purchaser; 

(v)           
the Registration Rights Agreement, duly executed by such Purchaser; and 

(i)             
the Escrow Agreement, duly executed by such Purchaser.

2.3           
Closing Conditions. 

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

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

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

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

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

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

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

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

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

(v)           
from the date hereof to the Closing Date, trading in the Common Stock shall not have been
suspended by the Commission or the applicable Trading Market 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 each Purchaser, makes it impracticable or inadvisable to
purchase the Securities at the Closing.

ARTICLE III. 

REPRESENTATIONS AND WARRANTIES

3.1           
Representations and Warranties of the Company. Except as set forth under the corresponding
section of the disclosure schedules delivered to the Purchasers concurrently herewith (“Disclosure Schedules”)
which Disclosure Schedules shall be deemed a part hereof, the Company hereby makes the following representations and warranties
to each Purchaser. However, it is understood and agreed that, except for (a) any representations and warranties set forth in this
Section 3.1 that may apply to SMS or Saleen Automotive specifically, or by virtue of SMS’ or Saleen Automotive’s existence
as a Subsidiary, and (b) the representations and warranties set forth in Sections 3.1(f), 3.1(h)(ii), 3.1(i) (as applicable to
SMS or Saleen Automotive), 3.1(n), 3.1(s), 3.1(x), 3.1(bb), 3.1(ee), 3.1(gg), 3.1(hh) 3.1(jj) below which shall be deemed to exist
hereunder for all purposes, the representations and warranties set forth in this Section 3.1, as applicable to the Company (as
opposed to SMS or Saleen Automotive), shall apply for purposes of Section 2.3(b)(i) above, but otherwise shall not be deemed to
exist for purposes of any liability to the Purchasers or indemnification under Section 4.10 below, to the extent any such representations
and warranties are inaccurate as of the closing of the Merger.

(a)            
Subsidiaries. All of the direct and indirect subsidiaries of the Company are set forth
on Schedule 3.1(a). The Company owns, directly or indirectly, all of the capital stock or other equity interests of each
Subsidiary free and clear of any Liens, and all of the issued and outstanding shares of capital stock of each Subsidiary are validly
issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities.

(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 (as applicable), 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 articles of incorporation, bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries
is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in
which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure
to be so qualified or in good standing, as the case may be, could not have or reasonably be expected to result in (i) a material
adverse effect on the legality, validity or enforceability of any Transaction Document, (ii) a material adverse effect on the results
of operations, assets, business, prospects or condition (financial or otherwise) of the Company and the Subsidiaries, taken as
a whole, or (iii) a material adverse effect on the Company’s ability to perform in any material respect on a timely basis
its obligations under any Transaction Document (any of (i), (ii) or (iii), a “Material Adverse Effect”) and
no Proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail
such power and authority or qualification. The Company has furnished to the Purchasers true and correct copies of the Company’s
articles of incorporation and the Company’s bylaws, as each is currently in effect.

(c)            
Authorization; Enforcement. The Company and the Subsidiaries have 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 their obligations hereunder and thereunder. The execution and delivery of each of the Transaction Documents by the
Company and the Subsidiaries and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized
by all necessary action on the part of the Company and the Subsidiaries and no further action is required by the Company, the Subsidiaries,
their board of directors or their stockholders in connection therewith other than in connection with the Required Approvals. Each
Transaction Document has been (or upon delivery will have been) duly executed by the Company and the Subsidiaries, as applicable,
and, when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding obligation of the Company
and the Subsidiaries enforceable against the Company and the Subsidiaries 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 of the Transaction Documents
by the Company and the Subsidiaries and the consummation by the Company and the Subsidiaries of the other transactions contemplated
hereby and thereby do not and will not: (i) conflict with or violate any provision of the Company’s or any Subsidiary’s
articles of incorporation, bylaws or other organizational or charter documents, or (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, loan or 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 (other than Liens in favor of the Purchasers),
or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment,
injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary is subject
(including federal and state securities laws and regulations), or by which any property or asset of the Company or a Subsidiary
is bound or affected; except in the case of each of clauses (ii) and (iii), such as could not have or reasonably be expected to
result in a Material Adverse Effect.

(e)            
Filings, Consents and Approvals. Neither the Company nor any Subsidiary is 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 and the Subsidiaries of the Transaction Documents, other than (i) filings required pursuant to Section 4.6, (ii)
the notice and/or application(s) to each applicable Trading Market for the issuance and sale of the Securities and the listing
of the Underlying Shares for trading thereon in the time and manner required thereby, (iii) the filing of Form D with the Commission
and such filings as are required to be made under applicable state securities laws, and (iv) filings required under the terms of
the Security Documents (collectively, the “Required Approvals”).

(f)            
Issuance of the Securities. The Securities are duly authorized and, when issued and
paid for in accordance with the applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable,
free and clear of all Liens imposed by the Company other than restrictions on transfer provided for in the Transaction Documents.
The Underlying Shares, when issued in accordance with the terms of the Transaction Documents, will be validly issued, fully paid
and nonassessable, free and clear of all Liens imposed by the Company other than restrictions on transfer provided for in the Transaction
Documents. The Company has reserved from its duly authorized capital stock a number of shares of Common Stock for issuance of the
Underlying Shares at least equal to the Required Minimum on the date hereof. 

(g)           
Capitalization. The capitalization of the Company is as set forth on Schedule 3.1(g),
which Schedule 3.1(g) 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 in connection with the Merger. 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 set forth on Schedule 3.1(g) and a result of the purchase and sale of the Securities, 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 Securities will not obligate the Company to issue shares of Common Stock or other securities to any Person (other than the
Purchasers) 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 Securities.
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.

(h)           
SEC Reports; Financial Statements.

(i)             
The Company has filed all reports, schedules, forms, statements and other documents required
to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof,
for the two years preceding the date hereof (or such shorter period as the Company was required by law or regulation to file such
material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, 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 financial statements of the Company included in the SEC Reports comply in all material respects with
applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time
of filing. Such financial statements have been prepared in accordance with United States generally accepted accounting principles
applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in
such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required
by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated Subsidiaries as
of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited
statements, to normal, immaterial, year-end audit adjustments.

(ii)           
On Schedule 3.1(h) are set forth the following financial statements of the Saleen Entities
(collectively the “Saleen Entities Financial Statements”): audited consolidated balance sheets and statements
of income, changes in stockholders’ equity, and cash flow as of and for the fiscal years ended March 31, 2013 and 2012. The
Saleen Entities Financial Statements have been prepared in accordance with GAAP applied on a consistent basis throughout the periods
covered thereby, present fairly the financial condition of the Saleen Entities as of such dates and the results of operations of
the Saleen Entities for such periods, are correct and complete, and are consistent with the books and records of the Saleen Entities.
Since March 31, 2013, the Saleen Entities have not effected any change in any method of accounting or accounting practice, except
for any such change required because of a concurrent change in GAAP.

(i)             
Material Changes. Since the date of the latest audited financial statements included
within the SEC Reports and/or the Saleen Entities Financial Statements, except as specifically disclosed in a subsequent SEC Report
filed prior to the date hereof or disclosed on Schedule 3.1(i), (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 and the Subsidiaries have
not incurred any liabilities (contingent or otherwise) other than (A) that have been incurred since the date of the most recent
balance sheet included in the SEC Reports or the Saleen Entities Financial Statements in the ordinary course of business and are
not (singly or in the aggregate) material to the Company’s business, and (B) not due and payable or to be performed or satisfied
after the date hereof under the Company and the Subsidiaries’ material contracts in accordance with their terms, in each
case which are not (singly or in the aggregate) material to the Company’s business, (iii) the Company and the Subsidiaries
have not altered their method of accounting, (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. The Company does not have
pending before the Commission any request for confidential treatment of information. Except for the issuance of the Securities
contemplated by this Agreement or as set forth on Schedule 3.1(i), no event, liability or development has occurred or exists
with respect to the Company or its Subsidiaries or their respective business, properties, operations 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 on or prior to the date that this representation is made.

(j)             
Litigation. There is no suit, action, claim, arbitration, proceeding or investigation
pending or, to the knowledge of the Company, threatened against, relating to or involving the Company, any Subsidiary, or real
or personal property of the Company or any Subsidiary, before any Governmental Entity (as such term is defined in the Merger Agreement)
or other third party. To the knowledge of the Company, there is no basis for any such suit, action, proceeding or investigation.
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; Benefits. Schedule 3.1(k) contains a true and complete list of each benefit
plan currently sponsored, maintained or contributed to by the Company and the Subsidiaries. The Company’s records accurately
reflect the service histories of the Company and the Subsidiaries’ employees, contractors and consultants, including their
hours of service, and all such data is maintained in a usable form. Neither the Company nor any Subsidiary is a party to any employment,
contractor or consultant agreement which could result in the payment to any current, former or future director, employee, contractor
or consultant of the Company or the Subsidiaries of any money or other property or rights or accelerate or provide any other rights
or benefits to any such director, employee, contractor or consultant as a result of the transactions contemplated by the Merger
or this Agreement, whether or not (i) such payment, acceleration or provision would constitute a “parachute payment”
(within the meaning of Section 280G of the Code), or (ii) some other subsequent action or event would be required to cause such
payment, acceleration or provision to be triggered.

(l)             
Compliance. To the knowledge of the Company, the Company and the Subsidiaries are in
compliance in all material respects with all applicable laws (including, without limitation, applicable laws relating to zoning,
environmental matters and the safety and health of employees), ordinances, regulations and orders of all Governmental Entities.
Neither the Company nor any of the Subsidiaries has been charged with and, to the knowledge of the Company, is not now under investigation
with respect to, a violation of any applicable law, regulation, ordinance, order or other requirement of a Governmental Entity.
Neither the Company nor any of its Subsidiaries is a party to or bound by any order, judgment, decree or injunction of any Governmental
Entity.

(m)         
Title to Assets. The Company and the Subsidiaries have good, clear and marketable title
to all the tangible properties and tangible assets reflected in their latest balance sheet as being owned by them or acquired after
the date thereof which are, individually or in the aggregate, material to the Company’s business (except properties sold
or otherwise disposed of since the date thereof in the ordinary course of business), free and clear of all Liens. All equipment
and other items of tangible personal property and assets of the Company and the Subsidiaries (i) are in good operating condition
and in a state of good maintenance and repair, ordinary wear and tear excepted, and (ii) are usable in the regular and ordinary
course of the Company’s business. The Company and the Subsidiaries do not own any real property. Schedule 3.1(m) sets
forth all real property leases to which the Company and the Subsidiaries are a party. The Company and/or the Subsidiaries, as applicable,
have a valid leasehold interest in such leased real property, and such leases are in full force and effect. The improvements and
fixtures on such real property leased by the Company and/or the Subsidiaries are in good operating condition and in a state of
good maintenance and repair, ordinary wear and tear excepted.

(n) 
Intellectual Property.

(i)             
Saleen and/or the Saleen Entities own or have the right to use pursuant to an enforceable
contract all Intellectual Property necessary or desirable to operate the Saleen businesses as currently conducted and as currently
proposed to be conducted (the “Saleen Parties Intellectual Property”). Other than the Saleen Parties Intellectual
Property, the Company has no Intellectual Property. The Saleen Parties have taken all necessary and desirable action to maintain
and protect each item of Saleen Parties Intellectual Property.

(ii)           
The Company has delivered to the Purchasers correct and complete copies of all written documentation
evidencing ownership and prosecution (if applicable) of each item of any Saleen Parties Intellectual Property. With respect to
each such item of Saleen Parties Intellectual Property:

(A)The
Saleen Parties possess all right, title, and interest in and to the item, free and clear of any Lien;

(B)the
item is not subject to any order, judgment, decree or injunction of any Governmental Entity;

(C)no
action or proceeding is pending or, to the Company’s best knowledge, threatened (and, to the Company’s best knowledge,
there is no basis therefor) which challenges the enforceability, use, or ownership of the item; and

(D)neither
the Company nor any Subsidiary has ever agreed to indemnify any Person for or against any interference, infringement, misappropriation,
or other conflict with respect to the item.

(iii)         
The Saleen Parties Intellectual Property does not interfere with, infringe upon, misappropriate,
or otherwise violate or come into conflict with any other Person’s Intellectual Property, and neither the Company nor any
Subsidiary has received any notice alleging any such interference, infringement, misappropriation, violation, or conflict (including
any claim that the Company or any Subsidiary must license or refrain from using any other Person’s Intellectual Property).
No third Person has any Intellectual Property that interferes or would be likely to interfere with the Company’s use of any
Saleen Parties Intellectual Property. The Saleen Parties Intellectual Property will not interfere with, infringe upon, misappropriate,
or otherwise come into conflict with, any Intellectual Property rights of any other Person as a result of the continued operation
by the Company or the Subsidiaries of their businesses as currently conducted and as currently proposed to be conducted. 
No other Person has interfered with, infringed upon, misappropriated, or otherwise come into conflict with any Saleen Parties Intellectual
Property.

(iv)         
Schedule 3.1(n) identifies each contract pursuant to which the Company or any Subsidiary
has granted to a third party rights under or with respect to any Saleen Parties Intellectual Property (together with any exceptions). 
The Company has made available to the Purchasers correct and complete copies of all contracts with respect to such use as amended
to date. With respect to the Contracts (1) related to each item of Saleen Parties Intellectual Property, the statements in
clauses (A) through (H) below are true and correct, and (2) in Schedule 3.1(n), the statements in clauses (A) through (D)
below are true and correct:

(A)the
contract is enforceable against each of the parties thereto in accordance with its terms;

(B)the
contract will continue to be enforceable on identical terms following the consummation of the Merger;

(C)The
Saleen Entities are not (and no counter-party is) in breach of such contract, and no event has occurred that with notice or lapse
of time would constitute a breach thereunder;

(D)no
party to the contract has repudiated any provision thereof;

(E)with
respect to each sublicense contract, the representations and warranties set forth in (A) – (D) are true and correct with
respect to the underlying license contract;

(F)the
underlying item of Saleen Parties Intellectual Property is not subject to any outstanding order, judgment, decree or injunction
of any Governmental Entity;

(G)no
action or proceeding is pending or threatened (and there is no basis therefor) that challenges the enforceability of the underlying
item of Intellectual Property; and

(H)neither
the Company nor any Subsidiary has granted any sublicense or similar contract with respect to the contract.

(v)           
Except as set forth in Schedule 3.1(n), all former and current employees, contractors
and consultants of the Saleen Entities have executed written contracts with the Saleen Entities that assign to the Saleen Entities
all rights to any inventions, improvements, discoveries or information relating to the Saleen Entities’ business. No employee,
contractor or consultant of the Saleen Entities has entered into any contract that restricts or limits in any way the scope or
type of work in which the employee, contractor or consultant may be engaged or requires the employee, contractor or consultant
to transfer, assign, or disclose information concerning his or her work to any Person other than Saleen Entities.

(vi)         
To the Company’s knowledge, there are no new products, inventions, procedures, or methods
of manufacturing or processing that any competitors or other Person have developed which reasonably could be expected to supersede
or make obsolete any, or any planned, product or process of the Saleen Entities.

(o)           
Insurance. The Company and the Subsidiaries do not maintain any insurance policies.

(p)           
Transactions with Affiliates and Employees. The Company and the Subsidiaries are not
a party to any contract, lease, license, commitment or arrangement, written or oral, which, were the Saleen Entities “registrants”
under the Exchange Act, would be required to be disclosed pursuant to Item 404(a) or (c) of Regulation S-K as promulgated by the
SEC, and there are no loans outstanding to or from any Person specified in Item 404(a) of Regulation S-K from or to the Company
or the Subsidiaries.

(q)           
Sarbanes-Oxley; Internal Accounting Controls. The Company is in material compliance
with all provisions of the Sarbanes-Oxley Act of 2002 which are applicable to it 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.

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

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

(t)             
Investment Company. The Company is not, and is not an Affiliate of, and immediately
after receipt of payment for the Securities, 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 subject to the Investment Company Act of 1940, as amended.

(u)           
Registration Rights. Except as provided in those certain Registration Rights Agreements,
each dated March 13, 2013 disclosed in the SEC Reports, no Person has any right to cause the Company to effect the registration
under the Securities Act of any securities of the Company.

(v)           
Listing and Maintenance Requirements. The Common Stock is registered pursuant to Section
12(b) of the Exchange Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect
of, terminating the registration of the Common Stock under the Exchange Act nor has the Company received any notification that
the Commission is contemplating terminating such registration. Except as set forth in the SEC Reports, the Company has not, in
the twelve (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. Except as set forth in the SEC Reports, 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.

(w)          
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 articles
of incorporation or the laws of its state of incorporation that is or could become applicable to the Purchasers as a result of
the Purchasers and the Company fulfilling their obligations or exercising their rights under the Transaction Documents, including,
without limitation, as a result of the Company’s issuance of the Securities and the Purchasers’ ownership of the Securities.

(x)           
Disclosure. None of the Transaction Documents, nor any Schedule or Exhibit thereto,
nor any other statements, documents or certificates made or delivered in connection herewith or therewith contains any untrue statement
of a material fact or omits to state a material fact necessary to make the statements contained herein and therein not misleading
in light of the circumstances under which such statements were made.

(y)           
No Integrated Offering. Assuming the accuracy of the Purchasers’ 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 Securities 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.

(z)            
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 Securities 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 which 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(z) 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 (a) 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), (b) all guaranties, endorsements and other contingent obligations in respect of indebtedness
of others, whether or not the same are or should be reflected in the Company’s balance sheet (or the notes thereto), except
guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of
business, and (c) the present value of any lease payments in excess of $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.

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

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

(cc)         
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.

(dd)        
Accountants. The Company’s accounting firm is Weinberg & Company. 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 March 31, 2013.

(ee)         
Seniority. As of the Closing Date, no Indebtedness or other claim against the Company
is senior to the Notes in right of payment, whether with respect to interest or upon liquidation or dissolution, or otherwise,
other than indebtedness secured by purchase money security interests (which is senior only as to underlying assets covered thereby)
and capital lease obligations (which is senior only as to the property covered thereby).

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

(hh)        
Acknowledgment Regarding Purchasers’ Trading Activity. Notwithstanding
anything in this Agreement or elsewhere herein to the contrary (except for Section 3.2(f)), it is understood and acknowledged by
the Company that (i) none of the Purchasers has been asked to agree by the Company, nor has any Purchaser 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 Securities for any specified term, (ii) past or future open market or other transactions by
any Purchaser, 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) any Purchaser, and counter-parties in “derivative” transactions to which any such Purchaser is a
party, directly or indirectly, may presently have a “short” position in the Common Stock, and (iv) each Purchaser 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 (a) one or more Purchasers
may engage in hedging activities at various times during the period that the Securities are outstanding, including, without limitation,
during the periods that the value of the Underlying Shares deliverable with respect to Securities are being determined and (b)
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.

(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 Securities, (ii) sold, bid for, purchased,
or paid any compensation for soliciting purchases of, any of the securities of the Company 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 Securities.

(jj)           
Significant Shareholders.Except for Steve Saleen, no Person has any direct or indirect
beneficial ownership (as determined in accordance with Regulation 13D-G) of shares of Common Stock which exceeds in the aggregate
(together with other Persons which would constitute a “group” under Regulation 13D-G) five percent (5%) of the total
number of outstanding shares of Common Stock as of the date hereof and the Closing Date, including, without limitation, as a result
of any Person’s beneficial interest in a trust. For purposes of the calculations under this paragraph, any limitations on
beneficial ownership contained in any instrument directly or indirectly convertible, exchangeable or exercisable into or for Common
Stock shall be ignored and any such instruments shall be deemed to be currently convertible, exchangeable or exercisable in full.

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

(a)            
Organization; Authority. Such Purchaser is 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 such Purchaser
of the transactions contemplated by the Transaction Documents have been duly authorized by all necessary corporate or similar action
on the part of such Purchaser. Each Transaction Document to which it is a party has been duly executed by such Purchaser, and when
delivered by such Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of such
Purchaser, enforceable against it in accordance with its terms, except (i) as limited by general equitable principles and applicable
bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’
rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable
remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

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

(c)            
Purchaser Status. At the time such Purchaser was offered the Securities, it was, and
at the date hereof it is, and on each date on which it or its permitted assignee converts any Notes it or such permitted assignee,
as the case may be, will be an “accredited investor” as defined in Rule 501 under the Securities Act. Such Purchaser
is not required to be registered as a broker-dealer under Section 15 of the Exchange Act.

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

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

(f)            
Short Sales and Confidentiality Prior To The Date Hereof. Other than
consummating the transactions contemplated hereunder, such Purchaser has not directly or indirectly, nor has any Person acting
on behalf of or pursuant to any understanding with such Purchaser, executed any purchases or sales, including Short Sales, of
the securities of the Company during the period commencing from the time that such Purchaser
first received a term sheet (written or oral) from the Company or any other Person representing the Company setting forth the material
terms of the transactions contemplated hereunder until the date hereof (“Discussion Time”).
Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio
managers manage separate portions of such Purchaser's assets and the portfolio managers have no direct knowledge of the investment
decisions made by the portfolio managers managing other portions of such Purchaser's assets, the representation set forth above
shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase
the Securities covered by this Agreement. Other than to other Persons party to this Agreement, such Purchaser has maintained the
confidentiality of all disclosures made to it in connection with this transaction (including the existence and terms of this transaction).

ARTICLE IV. 

OTHER AGREEMENTS OF THE PARTIES

4.1           
Transfer Restrictions.

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

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

[NEITHER] THIS SECURITY [NOR THE
SECURITIES INTO WHICH THIS SECURITY IS CONVERTIBLE] 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. THIS SECURITY [AND THE SECURITIES ISSUABLE UPON
CONVERSION OF THIS SECURITY] MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

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

(c)  
Certificates evidencing the Underlying Shares shall not contain any legend (including the
legend set forth in Section 4.1(b) hereof), except for any legend reasonably referring to any applicable transfer restrictions
under state securities laws: (i) while a registration statement covering the resale of such security is effective under the Securities
Act, or (ii) if such Underlying Shares are eligible for resale under Rule 144 and the holder thereof is not an Affiliate of the
Company, or (iii) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations
and pronouncements issued by the staff of the Commission). If required by the Transfer Agent to effect the removal of the legend
hereunder, the Company shall cause its counsel to issue a legal opinion to the Transfer Agent promptly after the date which is
six (6) months following the Closing Date (if the Company has been subject to the reporting requirements of Section 13 or 15(d)
of the Exchange Act for the then preceding ninety (90) days and has filed all reports required to be filed thereunder during the
then preceding twelve (12) months (or such shorter period that the Company was required to file such reports) and the holder thereof
is not an Affiliate of the Company). If all or any portion of a Note is converted or exercised (as applicable) at a time when there
is an effective registration statement to cover the resale of the Underlying Shares, or if such Underlying Shares may be sold under
Rule 144 or if such legend is not otherwise required under applicable requirements of the Securities Act (including judicial interpretations
and pronouncements issued by the staff of the Commission) then such Underlying Shares shall be issued free of all legends, except
for any legend reasonably referring to any applicable transfer restrictions under state securities laws. The Company agrees that
at such 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 a Purchaser to the Company or the Transfer Agent of a certificate representing Underlying Shares, as applicable,
issued with a restrictive legend (such third Trading Day, the “Legend Removal Date”), deliver or cause to be
delivered to such Purchaser a certificate representing such shares that is free from all restrictive and other legends. 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. Certificates for Underlying Shares subject to legend removal hereunder shall be transmitted by the Transfer
Agent to the Purchaser by crediting the account of the Purchaser’s prime broker with the Depository Trust Company System
as directed by such Purchaser.

 

(d)           
In addition to such Purchaser’s other available remedies, the Company shall be subject
to the liquidated damage provisions and other remedies for failing timely to provide proper certificates to a Purchaser which are
set forth in such Purchaser’s Note. Nothing herein shall limit such Purchaser’s right to pursue actual damages for
the Company’s failure to deliver certificates representing any Securities as required by the Transaction Documents, and such
Purchaser 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)            
Each Purchaser, severally and not jointly with the other Purchasers, agrees that such Purchaser
will sell any Securities pursuant to either Rule 144 or the registration requirements of the Securities Act, including any applicable
prospectus delivery requirements, or an exemption therefrom, and that if Securities are sold pursuant to a registration statement
filed under the Securities Act, they will be sold in compliance with the plan of distribution set forth therein, and acknowledges
that the removal of the restrictive legend from certificates representing Securities as set forth in this Section 4.1 is predicated
upon the Company’s reliance upon this understanding.

(f)            
The Company represents and warrants that, except as may otherwise be set forth in the Disclosure
Schedules, none of the Purchasers is currently nor has been, nor upon consummation of the Closing will become, an affiliate of
the Company for purposes of Rule 144. With respect to each Purchaser, the Company covenants and agrees to take the position at
all times in the future that such Purchaser is not an affiliate of the Company for purposes of Rule 144 solely as result of such
Purchaser’s ownership of the Securities, except that this covenant shall not apply if such Purchaser beneficially owns (as
determined in accordance with Regulation 13D-G of the Exchange Act) in excess of ten percent (10%) of the outstanding shares of
Common Stock.

4.2           
Acknowledgment of Dilution. The Company acknowledges that the issuance of the Securities
may result in dilution of the outstanding shares of Common Stock, which dilution may be substantial under certain market conditions.
The Company further acknowledges that its obligations under the Transaction Documents, including, without limitation, its obligation
to issue the Underlying Shares pursuant to the Transaction Documents, are unconditional and absolute and not subject to any right
of set off, counterclaim, delay or reduction, regardless of the effect of any such dilution or any claim the Company may have against
any Purchaser and regardless of the dilutive effect that such issuance may have on the ownership of the other stockholders of the
Company.

4.3           
Furnishing of Information. Until the time that no Purchaser owns Securities, 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 the Exchange Act even if the Company is not then subject to the reporting
requirements of the Exchange Act. As long as any Purchaser owns Securities, if the Company is not required to file reports pursuant
to the Exchange Act, it will prepare and furnish to the Purchasers and make publicly available in accordance with Rule 144(c) such
information as would be required if the Purchasers were able to sell the Securities under Rule 144. The Company further covenants
that it will take such further action as any holder of Securities may reasonably request, to the extent required from time to time
to enable such Person to sell such Securities without registration under the Securities Act within the requirements of the exemption
provided by Rule 144 if such exemption becomes available. So long as any Securities are outstanding, the Company shall cause itself
to be subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act and timely file all reports required to
be filed thereunder. 

4.4           
Integration. The Company shall not sell, offer for sale or solicit offers to buy or
otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that would be integrated with the
offer or sale of the Securities to the Purchasers in a manner that would require the registration under the Securities Act of the
sale of the Securities to the Purchasers or that would be integrated with the offer or sale of the Securities for purposes of the
rules and regulations of any Trading Market.

4.5           
Conversion Procedures. The form of Notice of Conversion included in the Notes set
forth the totality of the procedures required of the Purchasers in order to convert the Notes. No additional legal opinion or other
information or instructions shall be required of the Purchasers to convert their Notes. The Company shall honor conversions of
the Notes and shall deliver Underlying Shares in accordance with the terms, conditions and time periods set forth in the Transaction
Documents.

4.6           
Securities Laws Disclosure; Publicity. The Company shall, by 8:30 a.m. (New York City
time) on the Trading Day following the date hereof, issue a Current Report on Form 8-K disclosing the material terms of the transactions
contemplated hereby and attaching the Transaction Documents as exhibits thereto. The Company and each Purchaser shall consult with
each other in issuing any other press releases with respect to the transactions contemplated hereby, and neither the Company nor
any Purchaser shall issue any such press release or otherwise make any such public statement without the prior consent of the Company,
with respect to any press release of any Purchaser, or without the prior consent of each Purchaser, 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 any Purchaser, or include the name of any Purchaser in any filing
with the Commission or any regulatory agency or Trading Market, without the prior written consent of such Purchaser, except (a)
as required by federal securities law in connection with (i) any registration statement filed under the Securities Act covering
the resale of the Securities, and (ii) the filing of final Transaction Documents (including signature pages thereto) with the Commission
and (b) to the extent such disclosure is required by law or Trading Market regulations, in which case the Company shall provide
the Purchasers with prior notice of such disclosure permitted under this clause (b).

4.7           
Shareholder Rights Plan. No claim will be made or enforced by the Company or, with
the consent of the Company, any other Person, that any Purchaser is an “Acquiring Person” under any control share acquisition,
business combination, poison pill (including any distribution under a rights agreement) or similar anti-takeover plan or arrangement
in effect or hereafter adopted by the Company, or that any Purchaser could be deemed to trigger the provisions of any such plan
or arrangement, by virtue of receiving Securities under the Transaction Documents or under any other agreement between the Company
and the Purchasers.

4.8           
Non-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 any Purchaser or its agents or counsel with any information that the Company believes constitutes
material non-public information, unless prior thereto such Purchaser shall have executed a written agreement regarding the confidentiality
and use of such information. The Company understands and confirms that each Purchaser shall be relying on the foregoing covenant
in effecting transactions in securities of the Company.

4.9           
Use of Proceeds. Except as set forth on Schedule 4.9 attached hereto or as provide
in Section 5.2 hereof, the Company shall use the net proceeds from the sale of the Securities hereunder for working capital 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 and prior practices), (b) the redemption of any Common Stock or
Common Stock Equivalents or (c) the settlement of any outstanding litigation.

4.10        
Indemnification of Purchasers. Subject to the provisions of this Section 4.10, the
Company will indemnify and hold each Purchaser and its directors, officers, shareholders, members, partners, employees and agents
(and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title
or any other title), each Person who controls such Purchaser (within the meaning of Section 15 of the Securities Act and Section
20 of the Exchange Act), and the directors, officers, shareholders, agents, members, partners or employees (and any other Persons
with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title) of
such controlling person (each, a “Purchaser Party”) harmless from any and all losses, liabilities, obligations,
claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable
attorneys’ fees and costs of investigation that any such Purchaser Party may suffer or incur as a result of or relating to
(a) any breach of any of the representations, warranties, covenants or agreements made by the Company in this Agreement or in the
other Transaction Documents or (b) any action instituted against a Purchaser in any capacity, or any of them or their respective
Affiliates, by any stockholder of the Company who is not an Affiliate of such Purchaser, with respect to any of the transactions
contemplated by the Transaction Documents (unless such action is based upon a breach of such Purchaser’s representations,
warranties or covenants under the Transaction Documents or any agreements or understandings such Purchaser may have with any such
stockholder or any violations by the Purchaser of state or federal securities laws or any conduct by such Purchaser which constitutes
fraud, gross negligence, willful misconduct or malfeasance). If any action shall be brought against any Purchaser Party in respect
of which indemnity may be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the Company in writing,
and the Company shall have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable to the
Purchaser Party. Any Purchaser Party shall have the right to employ separate counsel in any such action and participate in the
defense thereof, but the fees and expenses of such counsel shall be at the expense of such Purchaser Party except to the extent
that (i) the employment thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a
reasonable period of time to assume such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion
of such separate counsel, a material conflict on any material issue between the position of the Company and the position of such
Purchaser Party, in which case the Company shall be responsible for the reasonable fees and expenses of no more than one such separate
counsel. The Company will not be liable to any Purchaser Party under this Agreement (i) for any settlement by a Purchaser Party
effected without the Company’s prior written consent, which shall not be unreasonably withheld or delayed; or (ii) to the
extent, but only to the extent that a loss, claim, damage or liability is attributable to any Purchaser Party’s breach of
any of the representations, warranties, covenants or agreements made by such Purchaser Party in this Agreement or in the other
Transaction Documents.

4.11        
Reservation and Listing of Securities.

(a)            
The Company shall maintain a reserve from its duly authorized shares of Common Stock for issuance
pursuant to the Transaction Documents in such amount as may be required to fulfill its obligations in full under the Transaction
Documents.

(b)           
If, on any date, the number of authorized but unissued (and otherwise unreserved) shares of
Common Stock is less than the Required Minimum on such date, then the Board of Directors shall use commercially reasonable efforts
to amend the Company’s articles of incorporation to increase the number of authorized but unissued shares of Common Stock
to at least the Required Minimum at such time, as soon as possible and in any event not later than the seventy-fifth (75th)
day after such date.

(c)            
If applicable, the Company shall (i) in the time and manner required by the principal Trading
Market, prepare and file with such Trading Market an additional shares listing application covering a number of shares of Common
Stock at least equal to the Required Minimum on the date of such application, (ii) take all steps necessary to cause such shares
of Common Stock to be approved for listing on such Trading Market as soon as possible thereafter, (iii) provide to the Purchasers
evidence of such listing, and (iv) maintain the listing of such Common Stock on any date at least equal to the Required Minimum
on such date on such Trading Market or another Trading Market. 

4.12        
Corporate Structure. For a period of twelve (12) months following the Closing, the
Company and its Subsidiaries shall maintain and conduct its business at a physical office or offices, hire and retain key employees
and other personnel, and otherwise operate its business in a reasonable and customary manner similar to other public reporting
companies engaged in similar businesses.

4.13        
Bank Account Signatures. So long as any Notes remain outstanding, any check written
against or other withdrawal from the Company or any of its Subsidiaries’ bank account(s) in an amount greater than $5,000.00
shall require the signature of two executive officers.

4.14        
Equal Treatment of Purchasers. No consideration shall be offered or paid to any Person
to amend or consent to a waiver or modification of any provision of any of the Transaction Documents unless the same consideration
is also offered to all of the parties to the Transaction Documents. Further, the Company shall not make any payment of principal
or interest on the Notes in amounts which are disproportionate to the respective principal amounts outstanding on the Notes at
any applicable time. For clarification purposes, this provision constitutes a separate right granted to each Purchaser by the Company
and negotiated separately by each Purchaser, and is intended for the Company to treat the Purchasers as a class and shall not in
any way be construed as the Purchasers acting in concert or as a group with respect to the purchase, disposition or voting of Securities
or otherwise.

4.15        
Form D; Blue Sky Filings. The Company agrees to timely file a Form D with respect to
the Securities as required under Regulation D and to provide a copy thereof, promptly upon request of any Purchaser. The Company
shall take such action as the Company shall reasonably determine is necessary in order to obtain an exemption for, or to qualify
the Securities for, sale to the Purchasers at the Closing under applicable securities or “Blue Sky” laws of the states
of the United States, and shall provide evidence of such actions promptly upon request of any Purchaser.

4.16        
Security. The Company’s and any Subsidiaries’ obligations under the Notes
and other Transaction Documents shall be secured by all the assets of the Company and its Subsidiaries. As of the Closing, the
Purchasers participating therein shall be granted a security interest in all the assets of the Company, including, without limitation,
all of its Intellectual Property Rights and its ownership of any and all Subsidiaries, and in the assets of any such Subsidiaries,
to be memorialized in the Security Documents. The Company shall execute such other agreements, documents and financing statements
reasonably requested by Purchasers, which will be filed at the Company’s expense with the applicable jurisdictions and authorities.
The Company shall also execute all such documents reasonably necessary in the opinion of the Purchasers to memorialize and further
protect the security interests described herein. The Purchasers may appoint a collateral agent to represent them collectively in
connection with the security interests being granted to the Purchasers.

4.17        
Additional Guarantors. The Company shall cause each of its Subsidiaries, including
those formed or acquired on or after the date hereof, to execute and deliver to the Purchasers a Subsidiary Guarantee and a Security
Agreement in conformity with those executed and delivered at the Closing.

4.18        
Investor Relations. For a period of 12 months after the Closing Date, the Company shall
expend at least $10,000 per month on investor relations activities.

ARTICLE V. 

MISCELLANEOUS

5.1           
Termination.  This Agreement may be terminated by any Purchaser, as to such Purchaser’s
obligations hereunder only and without any effect whatsoever on the obligations between the Company and the other Purchasers, by
written notice to the other parties, if the Closing has not been consummated on or before June 26, 2013; provided, however,
that such termination will not affect the right of any party to sue for any breach by the other party (or parties).

5.2           
Fees and Expenses. The Company and Purchasers agree that, except as set forth in this
Section 5.2, all fees and expenses shall be paid (or advanced and repaid, as applicable) as set forth in the Merger Agreement.
For the avoidance of doubt, W-Net shall advance all legal fees incurred by the Company, Europa, Verdad and W-Net in connection
with the Transaction Documents, which fees will be repaid in full by the Company upon the Closing from the proceeds thereof, up
to a maximum of $35,000. Except as expressly set forth in the Transaction Documents to the contrary, each party shall pay the fees
and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident
to the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all transfer agent
fees, stamp taxes and other taxes and duties levied in connection with the delivery of any Securities to the Purchasers. The amounts
set forth in this paragraph as payable by the Company shall be so payable regardless of whether the Closing occurs.

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

5.4           
Notices. Any and all notices or other communications or deliveries required or permitted
to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission
or delivery, if such notice or communication is delivered via facsimile at the facsimile number, or delivered by a U.S. nationally
recognized overnight courier service to the address, 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 facsimile at the facsimile number, or delivered by such courier service to the address, 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, or (c) upon actual receipt
by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth
on the signature pages attached hereto.

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

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

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

5.8           
No Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties
hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced
by, any other Person, except as otherwise set forth in Section 4.10.

5.9           
Governing Law. All questions concerning the construction, validity, enforcement and
interpretation of the Transaction Documents shall be governed by and construed and enforced in accordance with the internal laws
of the State of California, 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 County of Los Angeles. Each party hereby
irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the County of Los Angeles for the
adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein
(including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not
to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court,
that such suit, action or proceeding is improper or is an inconvenient venue for such proceeding. Each party hereby irrevocably
waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy
thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect
for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and
notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted
by law. If either party shall commence an action or proceeding to enforce any provisions of the Transaction Documents, then the
prevailing party in such action or proceeding shall be reimbursed by the other party for its reasonable attorneys’ fees and
other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.

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

5.11        
Execution. This Agreement may be executed in two or more counterparts, all of which
when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed
by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the
event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” or other document
image 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” or other document image format
data file signature page were an original thereof.

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

5.13        
Rescission and Withdrawal Right. Notwithstanding anything to the contrary contained
in (and without limiting any similar provisions of) any of the other Transaction Documents, whenever any Purchaser exercises a
right, election, demand or option under a Transaction Document and the Company does not timely perform its related obligations
within the periods therein provided, then, until the earlier of sixty (60) days after such failure by the Company or the Company
performs such obligations, such Purchaser may rescind or withdraw, in its sole discretion from time to time upon written notice
to the Company, any relevant notice, demand or election in whole or in part without prejudice to its future actions and rights;
provided, however, in the case of a rescission of a conversion of a Note, the Purchaser shall be required to return
any shares of Common Stock delivered in connection with any such rescinded conversion or exercise notice.

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

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

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

5.17        
Usury. To the extent it may lawfully do so, the Company hereby agrees not to insist
upon or plead or in any manner whatsoever claim, and will resist any and all efforts to be compelled to take the benefit or advantage
of, usury laws wherever enacted, now or at any time hereafter in force, in connection with any claim, action or proceeding that
may be brought by any Purchaser in order to enforce any right or remedy under any Transaction Document. Notwithstanding any provision
to the contrary contained in any Transaction Document, it is expressly agreed and provided that the total liability of the Company
under the Transaction Documents for payments in the nature of interest shall not exceed the maximum lawful rate authorized under
applicable law (the “Maximum Rate”), and, without limiting the foregoing, in no event shall any rate of interest
or default interest, or both of them, when aggregated with any other sums in the nature of interest that the Company may be obligated
to pay under the Transaction Documents exceed such Maximum Rate. It is agreed that if the maximum contract rate of interest allowed
by law and applicable to the Transaction Documents is increased or decreased by statute or any official governmental action subsequent
to the date hereof, the new maximum contract rate of interest allowed by law will be the Maximum Rate applicable to the Transaction
Documents from the effective date forward, unless such application is precluded by applicable law. If under any circumstances whatsoever,
interest in excess of the Maximum Rate is paid by the Company to any Purchaser with respect to indebtedness evidenced by the Transaction
Documents, such excess shall be applied by such Purchaser to the unpaid principal balance of any such indebtedness or be refunded
to the Company, the manner of handling such excess to be at such Purchaser’s election.

5.18        
Independent Nature of Purchasers’ Obligations and Rights. The obligations of
each Purchaser under any Transaction Document are several and not joint with the obligations of any other Purchaser, and no Purchaser
shall be responsible in any way for the performance or non-performance of the obligations of any other Purchaser under any Transaction
Document. Nothing contained herein or in any other Transaction Document, and no action taken by any Purchaser pursuant thereto,
shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or
create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the
transactions contemplated by the Transaction Documents. In furtherance of the foregoing, the signature page of the Company and
each Purchaser to each Transaction Document shall evidence the binding agreement of the Company and such Purchaser to such Transaction
Document, and no Purchaser shall be entitled to receive a copy of the signature page of any other Purchaser to any other Transaction
Document. Each Purchaser shall be entitled to independently protect and enforce its rights, including without limitation the rights
arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser
to be joined as an additional party in any proceeding for such purpose. Each Purchaser has been represented by its own separate
legal counsel in their review and negotiation of the Transaction Documents. For reasons of administrative convenience only, Purchasers
and their respective counsel have chosen to communicate with the Company through W-Net. W-Net does not represent all of the Purchasers
but only W-Net. The Company has elected to provide all Purchasers with the same terms and Transaction Documents for the convenience
of the Company and not because it was required or requested to do so by the Purchasers.

5.19        
Liquidated 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.

5.20        
Saturdays, Sundays, Holidays, etc.If the last or appointed day for the taking of
any action or the expiration of any right required or granted herein shall not be a Business Day, then such action may be taken
or such right may be exercised on the next succeeding Business Day.

5.21        
Construction. The parties agree that each of them and/or their respective counsel has
reviewed and had an opportunity to revise the Transaction Documents and, therefore, the normal rule of construction to the effect
that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of the Transaction
Documents or any amendments hereto.

5.22        
Waiver of Jury Trial. In any action, suit or proceeding in any jurisdiction brought
by any party against any other party, the parties each knowingly and intentionally, to the greatest extent permitted by applicable
law, hereby absolutely, unconditionally, irrevocably and expressly waives forever trial by jury.

 

(Signature Pages
Follow)

 

    	 

    	 

    

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.

	
        W270, Inc. 

         
	
        Address for Notice:

         

        1328 W. Balboa Blvd., Ste. C

        Newport Beach, CA 92661

	
        By:__/s/ Eric Stoppenhagen________________

        Name: Eric Stoppenhagen

        Title: President

         
	Fax: (949) 258-5379
	
        With a copy to (which shall not constitute notice):

         

        Stubbs Alderton & Markiles, LLP

        15260 Ventura Boulevard, 20th Floor

        Sherman Oaks, CA 91403

        Attn: Gregor Akselrud, Esq.

        Fax: (818) 444-6309

         
	 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGES FOR PURCHASERS FOLLOWS]

 

    	 

    	 

    

[PURCHASER
SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT]

 

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

Name of Purchaser: ________________________________________________________

Signature of Authorized Signatory of
Purchaser: __________________________________

Name of Authorized Signatory: ____________________________________________________

Title of Authorized Signatory: _____________________________________________________

Email Address of Purchaser: ________________________________________________

Facsimile Number of Purchaser: ________________________________________________

 

Address for Notice of Purchaser:

 

 

 

 

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

 

 

 

 

 

Subscription Amount: $_____________

 

    	 

    	 

    

EXHIBIT A

 

NOTES

    	 

    	 

    

EXHIBIT B

 

SECURITY AGREEMENT

    	 

    	 

    

EXHIBIT C

 

INTELLECTUAL PROPERTY SECURITY AGREEMENT

    	 

    	 

    

EXHIBIT D

 

REGISTRATION RIGHTS AGREEMENT

    	 

    	 

    

EXHIBIT E

 

SUBSIDIARY GUARANTEE

    	 

    	 

    

EXHIBIT F

 

VOTING AGREEMENTExhibit 10.3

REGISTRATION RIGHTS AGREEMENT

THIS REGISTRATION
RIGHTS AGREEMENT (this “Agreement”) is made and entered into June 26, 2013, by and among, W270, Inc., a
Nevada corporation (“W270” or, the “Company”), those stockholders of the Company set forth
on the signature pages to this Agreement (the “Stockholders”) and those investors of the Company set forth on
the signature pages to this Agreement (the “Purchasers”, and together with the Stockholders, the “Holders”).

WITNESSETH:

WHEREAS, the
Company and certain Stockholders are parties to those certain Registration Rights Agreements, each dated March 13, 2013 (the “Registration
Rights Agreements”) pursuant to which such Stockholders were given registration rights with respect to their shares of
W270 Common Stock (“Common Stock”);

WHEREAS, the
Company, Saleen California Merger Corporation, a California corporation (“CA MergerCo”), Saleen Florida Merger
Corporation, a Florida corporation (“FL MergerCo”), Saleen Automotive, Inc., a Florida corporation (“Saleen
Automotive”), SMS Signature Cars, a California corporation (“SMS”), and Steve Saleen have entered
into an Agreement and Plan of Merger, dated May 23, 2013 (as the same may be amended from time to time) (the “Merger Agreement”),
which provides, upon the terms and subject to the conditions thereof, for the merger of (a) CA MergerCo with and into SMS and (b)
FL MergerCo with and into Saleen Automotive, whereby the outstanding capital stock of SMS and Saleen Automotive shall be cancelled
and the holders of Saleen Automotive’s common stock shall receive certain securities of the Company as further set forth
in the Merger Agreement (the “Merger”);

WHEREAS, in
connection with the Merger, and in further connection with the Securities Purchase Agreement by and among the Purchasers and the
Company dated June 26, 2013 (the “Securities Purchase Agreement”), the Company has agreed, upon the terms and
subject to the conditions set forth in the Securities Purchase Agreement to issue and sell to the Purchasers, $3,000,000 in proceeds
in a private placement offering (the “Offering”) of its (i) 3.0% Senior Secured Promissory Notes (the “Notes”),
which will, among other things, be convertible into shares of Common Stock (the “Conversion Shares”) in accordance
with the terms of the Notes;

WHEREAS, it
is a condition of the Offering that the Stockholders terminate the registration rights provided by the Registration Rights Agreements
and enter into a new registration rights agreement in the form hereof; and

WHEREAS, to
induce the Purchasers to execute and deliver the Securities Purchase Agreement, the Company has agreed to provide certain registration
rights under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute
(collectively the “Securities Act”), and applicable state securities laws.

NOW, THEREFORE,
in consideration of the premises and the mutual covenants contained herein and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Company and each of the Holders hereby agree as follows:

1.    
Definitions.

Capitalized terms
used herein and not otherwise defined herein shall have the respective meanings set forth in the Securities Purchase Agreement.
As used in this Agreement, the following terms shall have the following meanings:

a.               
“Business Day” means any day other than Saturday, Sunday or any other day on which commercial banks in
the City of New York are authorized or required by law to remain closed.

b.              
“Closing Date” shall have the meaning set forth in the Securities Purchase Agreement.

c.               
“Cutback Note Amount” the principal amount of Notes cut back pursuant to clause (A) of the definition
of Required Registration Amount.

d.              
“Cutback Shares” means any of the Required Registration Amount included in the Registration Statement
as a result of a limitation on the maximum number of shares of Common Stock permitted to be registered by the staff of the SEC
pursuant to Rule 415.

e.               
“Effective Date” means the date the Registration Statement has been declared effective by the SEC.

f.               
“Effectiveness Deadline” means the earlier of the date which is (i) in the event that the Registration
Statement is not subject to a full review by the SEC, one hundred fifty (150) calendar days after the Closing Date or (ii) in the
event that the Registration Statement is subject to a full review by the SEC, one-hundred eighty (180) calendar days after the
Closing Date.

g.              
“Filing Deadline” means the date thirty (30) calendar days after the Closing Date.

h.              
“Investor” means a Holder or any transferee or assignee thereof to whom a Holder assigns its rights as
a holder of Registrable Securities under this Agreement and who agrees to become bound by the provisions of this Agreement in accordance
with Section 10 and any transferee or assignee thereof to whom a transferee or assignee assigns its rights as a holder of Registrable
Securities under this Agreement and who agrees to become bound by the provisions of this Agreement in accordance with Section 10.

i.                
“Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation,
a trust, an unincorporated organization and a government or any department or agency thereof.

j.                
“register,” “registered,” and “registration” refer to a registration
effected by preparing and filing one or more Registration Statements (as defined below) in compliance with the Securities Act and
pursuant to Rule 415 and the declaration or ordering of effectiveness of such Registration Statement(s) by the SEC.

k.              
“Registrable Securities” means (i)  the Conversion Shares issued or issuable upon conversion of
the Notes, and (ii) any shares of capital stock of the Company issued or issuable with respect to the Conversion Shares, the Notes
as a result of any stock split, stock dividend, recapitalization, exchange or similar event or otherwise, without regard to any
limitations on conversions of the Notes.

l.                
“Registration Statement” means a registration statement or registration statements of the Company filed
under the Securities Act covering the Registrable Securities.

m.            
“Required Holders” means Investors that hold at least a majority of the Registrable Securities.

n.              
“Required Registration Amount” for the Registration Statement means (i) one hundred thirty percent (130%)
of the aggregate of the maximum number of Conversion Shares issued and issuable pursuant to the Notes at the then applicable Conversion
Price as of the Trading Day (as defined in the Notes) immediately preceding the applicable date of determination subject to adjustment
as provided in Section 3(e) (without regard to any limitations on conversion of the Notes) or (ii) such other amount as may be
required by the staff of the SEC pursuant to Rule 415 with any cutback applied among the Investors pro rata: (A) first, to any
Conversion Shares being registered under such Registration Statement until such number of Conversion Shares issuable upon conversion
of $500,000.00 in principal amount of the Notes are cutback; and (B) thereafter, to all other Registrable Securities. For purposes
of calculating the Required Registration Amount for any Registration Statement other than the initial Registration Statement, the
Conversion Shares subject to the initial Registration Statement or any other prior Registration Statement shall not be counted.

o.              
“Rule 415” means Rule 415 promulgated under the Securities Act or any successor rule providing for offering
securities on a continuous or delayed basis.

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

2.    
Termination of Registration Rights Agreements. Effective upon the date hereof, and without necessity of any further
action or approval by W270 or the Stockholders, the Registration Rights Agreements shall be terminated, and neither W270 nor the
Stockholders shall have any further rights, obligations or liabilities of any nature whatsoever pursuant to, or arising out of,
the Registration Rights Agreements. W270 and the Stockholders party to the Registration Rights Agreements each represent that they
have full power and authority to terminate the Registration Rights Agreements.

3.    
Registration.

a.               
Mandatory Registration. The Company shall prepare, and, as soon as practicable but in no event later than the Filing
Deadline, file with the SEC a Registration Statement on Form S-1 covering the resale of at least the number of shares of Common
Stock equal to the Required Registration Amount determined as of date the Registration Statement is initially filed with the SEC.
The Registration Statement shall contain (except if otherwise directed by the Required Holders) the “Selling Stockholders”
and “Plan of Distribution” sections for the Investors in substantially the form attached hereto as Exhibit
B. The Company shall use its reasonable best efforts to have the Registration Statement declared effective by the SEC as soon
as practicable, but in no event later than the Effectiveness Deadline. By 9:30 am on the Business Day following the Effective Date,
the Company shall file with the SEC in accordance with Rule 424 under the Securities Act the final prospectus to be used in connection
with sales pursuant to such Registration Statement. Notwithstanding anything herein to the contrary, the Company has no obligation
hereunder to include Cutback Shares, if any, on any Registration Statement.

b.              
Allocation of Registrable Securities. The initial number of Registrable Securities included in any Registration Statement
and any increase or decrease in the number of Registrable Securities included therein shall be allocated pro rata among the Investors
based on the number of Registrable Securities held by each Investor at the time the Registration Statement covering such initial
number of Registrable Securities or increase or decrease thereof is declared effective by the SEC. In the event that an Investor
sells or otherwise transfers any of such Investor’s Registrable Securities, each transferee shall be allocated a pro rata
portion of the then remaining number of Registrable Securities included in such Registration Statement for such transferor. Any
shares of Common Stock included in a Registration Statement and which remain allocated to any Person which ceases to hold any Registrable
Securities covered by such Registration Statement shall be allocated to the remaining Investors, pro rata based on the number of
Registrable Securities then held by such Investors which are covered by such Registration Statement. In no event shall the Company
include any securities other than Registrable Securities on any Registration Statement without the prior written consent of the
Required Holders.

c.     
Legal Counsel. Subject to Section 6 hereof, the Required Holders shall have the right to select one legal counsel
to review and oversee any registration pursuant to this Section 3 (“Legal Counsel”), which shall be Stubbs Alderton
& Markiles, LLP or such other counsel as thereafter designated by the Required Holders with the consent of the Company, which
consent shall not be unreasonably withheld or delayed. The Company and Legal Counsel shall reasonably cooperate with each other
in performing the Company's obligations under this Agreement.

d.    
Ineligibility for Form S-3. As Form S-3 is not available for the initial registration of the resale of Registrable
Securities hereunder, the Company shall undertake to register the Registrable Securities on Form S-3 as soon as such form is available,
provided that the Company shall maintain the effectiveness of the Registration Statement then in effect until such time as a Registration
Statement on Form S-3 covering the Registrable Securities has been declared effective by the SEC.

e.     
Sufficient Number of Shares Registered. In the event the number of shares available under a Registration Statement
filed pursuant to Section 3(a) is insufficient to cover the Required Registration Amount or an Investor’s allocated portion
of such Registrable Securities pursuant to Section 3(b), the Company shall amend the applicable Registration Statement, or file
a new Registration Statement (on the short form available therefor, if applicable), or both, so as to cover at least the Required
Registration Amount as of the Trading Day immediately preceding the date of the filing of such amendment or new Registration Statement,
in each case, as soon as practicable, but in any event not later than fifteen (15) days after the necessity therefor arises. The
Company shall use its reasonable best efforts to cause such amendment and/or new Registration Statement to become effective as
soon as practicable following the filing thereof. For purposes of the foregoing provision, the number of shares available under
a Registration Statement shall be deemed “insufficient to cover the Required Registration Amount” if at any time the
number of shares of Common Stock available for resale under the Registration Statement is less than the product determined by multiplying
(i) the Required Registration Amount as of such time by (ii) 0.90. The calculation set forth in the foregoing sentence shall be
made without regard to any limitations on the conversion of the Notes and such calculation shall assume that the Notes are then
convertible into shares of Common Stock at the then prevailing Conversion Rate (as defined in the Notes).

f.     
Effect of Failure to File and Obtain and Maintain Effectiveness of Registration Statement. If (i) a Registration
Statement covering all of the Registrable Securities required to be covered thereby and required to be filed by the Company pursuant
to this Agreement is (a) not filed with the SEC on or before the Filing Deadline (a “Filing Failure”) or (b)
not declared effective by the SEC on or before the Effectiveness Deadline or Resolution Date (as defined below, if applicable)
(an “Effectiveness Failure”) or (ii) on any day during the Registration Period, and after the Effective Date,
sales of all of the Registrable Securities required to be included on such Registration Statement cannot be made (other than during
an Allowable Grace Period (as defined in Section 4(r)) pursuant to such Registration Statement (including, without limitation,
because of a failure to keep such Registration Statement effective, to disclose such information as is necessary for sales to be
made pursuant to such Registration Statement or to register a sufficient number of shares of Common Stock) (a “Maintenance
Failure”) then, as partial relief for the damages to any Investor by reason of any such delay in or reduction of its
ability to sell the underlying shares of Common Stock (which remedy shall not be exclusive of any other remedies available at law
or in equity), the Company shall pay to each Investor relating to such Registration Statement an amount in cash equal to one percent
(1%) of the aggregate Subscription Amount (as such term is defined in the Securities Purchase Agreement) of such Investor’s
Registrable Securities included in such Registration Statement on each of the following dates: (i) the day of a Filing Failure
and on every thirtieth (30th) day (pro rated for periods totaling less than thirty (30) days) thereafter until the date
such Filing Failure is cured; (ii) the day of an Effectiveness Failure and on every thirtieth (30th) day (pro rated
for periods totaling less than thirty (30) days) thereafter until the date such Effectiveness Failure is cured; and (iii) the initial
day of a Maintenance Failure and on every thirtieth (30th) day (pro rated for periods totaling less than thirty (30)
days) thereafter until the date such Maintenance Failure is cured. The payments to which an Investor shall be entitled pursuant
to this Section 3(f) are referred to herein as “Registration Delay Payments.” Registration Delay Payments shall
be paid on the earlier of (I) the last day of the calendar month during which such Registration Delay Payments are incurred and
(II) the third (3rd) Business Day after the event or failure giving rise to the Registration Delay Payments is cured.
In the event the Company fails to make Registration Delay Payments in a timely manner, such Registration Delay 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. Notwithstanding
anything herein to the contrary, (1) no Registration Delay Payments shall accrue with respect to Cutback Shares, if any; and (2)
in the event that the SEC has not declared a Registration Statement effective on or before the Effectiveness Deadline solely as
a result of unresolved comments or inquiries based on or arising from facts or circumstances of the Company occurring prior to
the closing date of the Merger, and for no other reason, then the Registration Delay Payments applicable to an Effectiveness Failure
shall not accrue and shall toll for each day following the Effectiveness Deadline until the earlier of (x) the date that the Company
and the SEC resolve all such comments or inquiries (the “Resolution Date”), and (y) the effective date of the
Registration Statement.

g.    
Neither the Company nor any Subsidiary (as defined in the Securities Purchase Agreement) nor affiliate thereof shall identify
any Holder as an underwriter in any public disclosure or filing with the SEC or any Trading Market (as defined in the Securities
Purchase Agreement) and any Holder being deemed an underwriter by the SEC shall not relieve the Company of any obligations it has
under this Agreement or any other Transaction Document (as defined in the Securities Purchase Agreement) provided, however, that
the foregoing shall not prohibit the Company from including the disclosure found in the “Plan of Distribution”
section attached hereto as Exhibit B in the Registration Statement.

4.    
Related Obligations.

At such time as the
Company is obligated to file a Registration Statement with the SEC pursuant to Section 3(a), 3(d) or 3(e), the Company will use
its reasonable best efforts to effect the registration of the Registrable Securities in accordance with the intended method of
disposition thereof and, pursuant thereto, the Company shall have the following obligations:

a.     
The Company shall submit to the SEC, within two (2) Business Days after the Company learns that no review of a particular
Registration Statement will be made by the staff of the SEC or that the staff has no further comments on a particular Registration
Statement, as the case may be, a request for acceleration of effectiveness of such Registration Statement to a time and date not
later than 48 hours after the submission of such request. The Company shall use its reasonable best efforts to keep each Registration
Statement effective pursuant to Rule 415 at all times until the date on which the Investors shall have sold all of the Registrable
Securities covered by such Registration Statement (the “Registration Period”). The Company shall ensure that
each Registration Statement (including any amendments or supplements thereto and prospectuses contained therein) shall not contain
any untrue statement of a material fact or omit to state a material fact required to be stated therein, or necessary to make the
statements therein (in the case of prospectuses, in the light of the circumstances in which they were made) not misleading.

b.    
The Company shall prepare and file with the SEC such amendments (including post-effective amendments) and supplements to
a Registration Statement and the prospectus used in connection with such Registration Statement, which prospectus is to be filed
pursuant to Rule 424 promulgated under the Securities Act, as may be necessary to keep such Registration Statement effective at
all times during the Registration Period, and, during such period, comply with the provisions of the Securities Act with respect
to the disposition of all Registrable Securities of the Company covered by such Registration Statement until such time as all of
such Registrable Securities shall have been disposed of in accordance with the intended methods of disposition by the seller or
sellers thereof as set forth in such Registration Statement. In the case of amendments and supplements to a Registration Statement
which are required to be filed pursuant to this Agreement (including pursuant to this Section 4(b)) by reason of the Company filing
a report on Form 10-Q, Form 10-K or any analogous report under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), the Company shall have incorporated such report by reference into such Registration Statement, if applicable,
or shall file such amendments or supplements with the SEC within one (1) Business Day of the day on which the Exchange Act report
is filed which created the requirement for the Company to amend or supplement such Registration Statement.

c.     
The Company shall (i) permit Legal Counsel to review and comment upon (A) a Registration Statement at least two (2) Business
Days prior to its filing with the SEC and (B) all amendments and supplements to all Registration Statements (except for Annual
Reports on Form 10-K and Reports on Form 10-Q and any similar or successor reports) within a reasonable number of days prior to
their filing with the SEC, and (ii) not file any Registration Statement or amendment or supplement thereto in a form to which Legal
Counsel reasonably and timely objects. The Company shall not submit a request for acceleration of the effectiveness of a Registration
Statement or any amendment or supplement thereto without the prior approval of Legal Counsel, which consent shall not be unreasonably
withheld or delayed. The Company shall furnish to Legal Counsel, without charge, (i) copies of any correspondence from the SEC
or the staff of the SEC to the Company or its representatives relating to any Registration Statement, (ii) promptly after the same
is prepared and filed with the SEC, one copy of any Registration Statement and any amendment(s) thereto, including financial statements
and schedules, all documents incorporated therein by reference, if requested by an Investor, and all exhibits (unless such Registration
Statement is available on EDGAR) and (iii) upon the effectiveness of any Registration Statement, one copy of the prospectus included
in such Registration Statement and all amendments and supplements thereto. The Company shall reasonably cooperate with Legal Counsel
in performing the Company’s obligations pursuant to this Section 4.

d.    
The Company shall furnish to each Investor whose Registrable Securities are included in any Registration Statement, without
charge, (i) promptly after the same is prepared and filed with the SEC, at least one copy of such Registration Statement and any
amendment(s) thereto, including financial statements and schedules, all documents incorporated therein by reference, if requested
by an Investor, all exhibits and each preliminary prospectus (unless such Registration Statement is available on EDGAR), (ii) upon
the effectiveness of any Registration Statement, ten (10) copies of the prospectus included in such Registration Statement and
all amendments and supplements thereto (unless such amendments and supplements are available on EDGAR) and (iii) such other documents,
including copies of the foregoing (regardless of whether such documents are available upon EDGAR) and any preliminary or final
prospectus, as such Investor may reasonably request from time to time in order to facilitate the disposition of the Registrable
Securities owned by such Investor.

e.     
The Company shall use its reasonable best efforts to (i) register and qualify, unless an exemption from registration and
qualification applies, the resale by Investors of the Registrable Securities covered by a Registration Statement under the applicable
other securities or “blue sky” laws of such jurisdictions in the United States as shall be reasonably requested by
such Investors holding at least a majority in interest of the Registrable Securities included in that Registration Statement, (ii)
prepare and file in those jurisdictions, such amendments (including post-effective amendments) and supplements to such registrations
and qualifications as may be necessary to maintain the effectiveness thereof during the Registration Period, (iii) take such other
actions as may be reasonably necessary to maintain such registrations and qualifications in effect at all times during the Registration
Period, and (iv) take all other actions reasonably necessary or advisable to qualify the Registrable Securities for sale in such
jurisdictions; provided, however, that the Company shall not be required in connection therewith or as a condition
thereto to (x) qualify to do business in any jurisdiction where it would not otherwise be required to qualify but for this Section
4(e), (y) subject itself to general taxation in any such jurisdiction, or (z) file a general consent to service of process in any
such jurisdiction. The Company shall promptly notify Legal Counsel and each Investor who holds Registrable Securities of the receipt
by the Company of any notification with respect to the suspension of the registration or qualification of any of the Registrable
Securities for sale under the securities or “blue sky” laws of any jurisdiction in the United States or its receipt
of notice of the initiation or threatening of any proceeding for such purpose.

f.     
The Company shall notify Legal Counsel and each Investor in writing of the happening of any event, as promptly as practicable
after becoming aware of such event, as a result of which the prospectus included in a Registration Statement, as then in effect,
includes an untrue statement of a material fact or omission to state a material fact required to be stated therein or necessary
to make the statements therein, in the light of the circumstances under which they were made, not misleading (provided that in
no event shall such notice contain any material, nonpublic information), and, subject to Section 4(r), promptly prepare a supplement
or amendment to such Registration Statement to correct such untrue statement or omission, and deliver ten (10) copies of such supplement
or amendment to Legal Counsel and each Investor (or such other number of copies as Legal Counsel or such Investor may reasonably
request) (unless such supplements or amendments are available on EDGAR). The Company shall also promptly notify Legal Counsel and
each Investor in writing (i) when a prospectus or any prospectus supplement or post-effective amendment has been filed, and when
a Registration Statement or any post-effective amendment has become effective (notification of such effectiveness shall be delivered
to Legal Counsel and each Investor by facsimile no later than the second (2nd) Business Day after such effectiveness
and by overnight mail), (ii) of any request by the SEC for amendments or supplements to a Registration Statement or related prospectus
or related information, and (iii) of the Company's reasonable determination that a post-effective amendment to a Registration Statement
would be appropriate.

g.    
The Company shall use its reasonable best efforts to prevent the issuance of any stop order or other suspension of effectiveness
of a Registration Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction
and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest possible moment
and to notify Legal Counsel and each Investor who holds Registrable Securities being sold of the issuance of such order and the
resolution thereof or its receipt of notice of the initiation or threat of any proceeding for such purpose.

h.    
If any Investor is required under applicable securities law to be described in the Registration Statement as an underwriter,
at the reasonable request of such Investor, the Company shall furnish to such Investor, on the date of the effectiveness of the
Registration Statement and thereafter from time to time on such dates as an Investor may reasonably request (i) a letter, dated
such date, from the Company’s independent certified public accountants in form and substance as is customarily given by independent
certified public accountants to underwriters in an underwritten public offering, addressed to the Investors, and (ii) an opinion,
dated as of such date, of counsel representing the Company for purposes of such Registration Statement, in form, scope and substance
as is customarily given in an underwritten public offering, addressed to the Investors.

i.      
If, after the execution of this Agreement, an Investor believes that it could reasonably be deemed to be an underwriter
of Registrable Securities, upon the request of such Investor, the Company shall make available for inspection by (i) any Investor,
(ii) Legal Counsel and (iii) one firm of accountants or other agents retained by the Investors (collectively, the “Inspectors”),
all pertinent financial and other records, and pertinent corporate documents and properties of the Company (collectively, the “Records”),
as shall be reasonably deemed necessary by each Inspector, and cause the Company’s officers, directors and employees to supply
all information which any Inspector may reasonably request; provided, however, that each Inspector shall agree to hold in strict
confidence and shall not make any disclosure (except to an Investor) or use of any Record or other information which the Company
determines in good faith to be confidential, and of which determination the Inspectors are so notified, unless (a) the disclosure
of such Records is necessary to avoid or correct a misstatement or omission in any Registration Statement or is otherwise required
under the Securities Act, (b) the release of such Records is ordered pursuant to a final, non-appealable subpoena or order from
a court or government body of competent jurisdiction, or (c) the information in such Records has been made generally available
to the public other than by disclosure in violation of this or any other Transaction Document. Each Investor agrees that it shall,
upon learning that disclosure of such Records is sought in or by a court or governmental body of competent jurisdiction or through
other means, give prompt notice to the Company and allow the Company, at its expense, to undertake appropriate action to prevent
disclosure of, or to obtain a protective order for, the Records deemed confidential. Nothing herein (or in any other confidentiality
agreement between the Company and any Investor) shall be deemed to limit the Investors' ability to sell Registrable Securities
in a manner which is otherwise consistent with applicable laws and regulations.

j.      
The Company shall hold in confidence and not make any disclosure of information concerning an Investor provided to the Company
unless (i) disclosure of such information is necessary to comply with federal or state securities laws, (ii) the disclosure of
such information is necessary to avoid or correct a misstatement or omission in any Registration Statement, (iii) the release of
such information is ordered pursuant to a subpoena or other final, non-appealable order from a court or governmental body of competent
jurisdiction or (iv) such information has been made generally available to the public other than by disclosure in violation of
this Agreement, any other agreement to which the Company is a party, or, to the Company’s knowledge, any other agreement.
The Company agrees that it shall, upon learning that disclosure of such information concerning an Investor is sought in or by a
court or governmental body of competent jurisdiction or through other means, give prompt written notice to such Investor and allow
such Investor, at the Investor’s expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective
order for, such information.

k.    
The Company shall use its reasonable best efforts, to the extent then reasonably feasible, either to (i) cause all of the
Registrable Securities covered by a Registration Statement to be listed on each securities exchange on which securities of the
same class or series issued by the Company are then listed, if any, if the listing of such Registrable Securities is then permitted
under the rules of such exchange, or (ii) secure designation and quotation of all of the Registrable Securities covered by a Registration
Statement on NYSE Amex or (iii) if, despite the Company's reasonable best efforts to satisfy, the preceding clauses (i) and (ii)
the Company is unsuccessful in satisfying the preceding clauses (i) and (ii), to secure the inclusion for quotation on the The
New York Stock Exchange, The NASDAQ Capital Market or The NASDAQ Global Market for such Registrable Securities and, without limiting
the generality of the foregoing, to use its best efforts to arrange for at least two (2) market makers to register with the Financial
Industry Regulatory Authority (the “FINRA”) as such with respect to such Registrable Securities. The Company
shall pay all fees and expenses in connection with satisfying its obligation under this Section 4(k).

l.      
The Company shall cooperate with the Investors who hold Registrable Securities being offered and, to the extent applicable,
facilitate the timely preparation and delivery of certificates (not bearing any restrictive legend) representing the Registrable
Securities to be offered pursuant to a Registration Statement and enable such certificates to be in such denominations or amounts,
as the case may be, as the Investors may reasonably request and registered in such names as the Investors may request.

m.  
If requested by an Investor, the Company shall (i) as soon as practicable incorporate in a prospectus supplement or post-effective
amendment such information as an Investor reasonably requests to be included therein relating to the sale and distribution of Registrable
Securities, including, without limitation, information with respect to the number of Registrable Securities being offered or sold,
the purchase price being paid therefor and any other terms of the offering of the Registrable Securities to be sold in such offering;
(ii) as soon as practicable make all required filings of such prospectus supplement or post-effective amendment after being notified
of the matters to be incorporated in such prospectus supplement or post-effective amendment; and (iii) as soon as practicable,
supplement or make amendments to any Registration Statement if reasonably requested by an Investor holding any Registrable Securities.

n.    
The Company shall use its reasonable best efforts to cause the Registrable Securities covered by a Registration Statement
to be registered with or approved by such other governmental agencies or authorities as may be necessary to consummate the disposition
of such Registrable Securities.

o.    
The Company shall make generally available to its security holders as soon as practical, but not later than ninety (90)
days after the close of the period covered thereby, an earnings statement (in form complying with, and in the manner provided by,
the provisions of Rule 158 under the Securities Act) covering a twelve (12)-month period beginning not later than the first (1st)
day of the Company's fiscal quarter next following the effective date of a Registration Statement.

p.    
The Company shall otherwise use its reasonable best efforts to comply with all applicable rules and regulations of the SEC
in connection with any registration hereunder.

q.    
Within two (2) Business Days after a Registration Statement which covers Registrable Securities is ordered effective by
the SEC, the Company shall deliver, and shall cause legal counsel for the Company (which may be the General Counsel of the Company)
to deliver, to the transfer agent for such Registrable Securities (with copies to the Investors whose Registrable Securities are
included in such Registration Statement) confirmation that such Registration Statement has been declared effective by the SEC in
the form attached hereto as Exhibit A (with any reasonable limitations required to comply with applicable state securities laws).

r.     
Notwithstanding anything to the contrary herein, at any time after the Effective Date, the Company may delay the disclosure
of material, non-public information concerning the Company the disclosure of which at the time is not, in the good faith opinion
of the Board of Directors of the Company, in the best interest of the Company or otherwise required (a “Grace Period”);
provided, that the Company shall promptly (i) notify the Investors in writing of the existence of material, non-public information
giving rise to a Grace Period (provided that in each notice the Company will not disclose the content of such material, non-public
information to the Investors) and the date on which the Grace Period will begin, and (ii) notify the Investors in writing of the
date on which the Grace Period ends; and, provided further, that no Grace Period shall exceed five (5) consecutive Trading Days
and during any three hundred sixty five (365) day period such Grace Periods shall not exceed an aggregate of twenty (20) Trading
Days and the first day of any Grace Period must be at least five (5) Trading Days after the last day of any prior Grace Period
(each, an “Allowable Grace Period”). For purposes of determining the length of a Grace Period above, the Grace
Period shall begin on and include the date the Investors receive the notice referred to in clause (i) and shall end on and include
the later of the date the Investors receive the notice referred to in clause (ii) and the date referred to in such notice. The
provisions of Section 4(g) hereof shall not be applicable during the period of any Allowable Grace Period. Upon expiration of the
Grace Period, the Company shall again be bound by the first sentence of Section 4(f) with respect to the information giving rise
thereto unless such material, non-public information is no longer applicable. Notwithstanding anything to the contrary, the Company
shall cause its transfer agent to deliver unlegended shares of Common Stock to a transferee of an Investor in accordance with the
terms of the Securities Purchase Agreement in connection with any sale of Registrable Securities with respect to which an Investor
has entered into a contract for sale, and delivered a copy of the prospectus included as part of the applicable Registration Statement
(unless an exemption from such prospectus delivery requirement exists), prior to the Investor's receipt of the notice of a Grace
Period and for which the Investor has not yet settled. For the avoidance of doubt, no portion of this Section 4(r) shall require,
or be deemed to require, disclosure to the Investors of material, non-public information concerning the Company.

5.    
Obligations of the Investors.

a.     
At least five (5) Business Days prior to the first anticipated filing date of a Registration Statement, the Company shall
notify each Investor in writing of the information the Company requires from each such Investor if such Investor elects to have
any of such Investor’s Registrable Securities included in such Registration Statement. It shall be a condition precedent
to the obligations of the Company to complete the registration pursuant to this Agreement with respect to the Registrable Securities
of a particular Investor that such Investor shall furnish to the Company such information regarding itself, the Registrable Securities
held by it and the intended method of disposition of the Registrable Securities held by it as shall be reasonably required to effect
the effectiveness of the registration of such Registrable Securities and shall execute such documents in connection with such registration
as the Company may reasonably request.

b.    
Each Investor, by such Investor’s acceptance of the Registrable Securities, agrees to cooperate with the Company as
reasonably requested by the Company in connection with the preparation and filing of any Registration Statement hereunder, unless
such Investor has notified the Company in writing of such Investor's election to exclude all of such Investor's Registrable Securities
from such Registration Statement.

c.     
Each Investor agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described
in Section 4(g) or the first sentence of 4(f), such Investor will immediately discontinue disposition of Registrable Securities
pursuant to any Registration Statement(s) covering such Registrable Securities until such Investor's receipt of the copies of the
supplemented or amended prospectus contemplated by Section 4(g) or the first sentence of 4(f) or receipt of notice that no supplement
or amendment is required. Notwithstanding anything to the contrary, the Company shall cause its transfer agent to deliver unlegended
shares of Common Stock to a transferee of an Investor in accordance with the terms of the Securities Purchase Agreement in connection
with any sale of Registrable Securities with respect to which an Investor has entered into a contract for sale prior to the Investor’s
receipt of a notice from the Company of the happening of any event of the kind described in Section 4(g) or the first sentence
of 4(f) and for which the Investor has not yet settled.

d.    
Registrable

6.    
Expenses of Registration.

All expenses of Legal
Counsel, which will lead the effort for the Company with respect to the initial filing of any Registration Statement (but not the
maintenance thereof) will be paid by the Investors (jointly and severally), provided, however, if any Investor fails to pay their
pro rata portion of such expenses, (i) the Registrable Securities held by such Investor shall be removed from the applicable Registration
Statement (and accordingly, not registered thereunder), and (ii) the balance of such unpaid expenses shall be paid by the remaining
Investors, pro rata. All other reasonable expenses, other than underwriting discounts and commissions incurred in connection with
registrations, filings or qualifications pursuant to Sections 3 and 4, including, without limitation, all registration, listing
and qualifications fees, printers and accounting fees, and fees and disbursements of counsel for the Company, shall be paid by
the Company.

7.    
Indemnification.

In the event any Registrable
Securities are included in a Registration Statement under this Agreement:

a.     
To the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend each Investor,
the directors, officers, members, partners, employees, agents, representatives of, and each Person, if any, who controls any Investor
within the meaning of the Securities Act or the Exchange Act (each, an “Indemnified Person”), against any losses,
claims, damages, liabilities, judgments, fines, penalties, charges, costs, reasonable attorneys' fees, amounts paid in settlement
or expenses, joint or several, (collectively, “Claims”) incurred in investigating, preparing or defending any
action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental,
administrative or other regulatory agency, body or the SEC, whether pending or threatened, whether or not an indemnified party
is or may be a party thereto (“Indemnified Damages”), to which any of them may become subject insofar as such
Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any
untrue statement or alleged untrue statement of a material fact in a Registration Statement or any post-effective amendment thereto
or in any filing made in connection with the qualification of the offering under the securities or other "blue sky" laws
of any jurisdiction in which Registrable Securities are offered (“Blue Sky Filing”), or the omission or alleged
omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading, (ii)
any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus if used prior to the
effective date of such Registration Statement, or contained in the final prospectus (as amended or supplemented, if the Company
files any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein any material
fact necessary to make the statements made therein, in the light of the circumstances under which the statements therein were made,
not misleading, (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any other law,
including, without limitation, any state securities law, or any rule or regulation thereunder relating to the offer or sale of
the Registrable Securities pursuant to a Registration Statement or (iv) any violation of this Agreement (the matters in the foregoing
clauses (i) through (iv) being, collectively, “Violations”). Subject to Section 7(c), the Company shall reimburse
the Indemnified Persons, promptly as such expenses are incurred and are due and payable, for any legal fees or other reasonable
expenses incurred by them in connection with investigating or defending any such Claim. Notwithstanding anything to the contrary
contained herein, the indemnification agreement contained in this Section 7(a): (i) shall not apply to a Claim by an Indemnified
Person arising out of or based upon a Violation which occurs in reliance upon and in conformity with information furnished in writing
to the Company by such Indemnified Person for such Indemnified Person expressly for use in connection with the preparation of the
Registration Statement or any such amendment thereof or supplement thereto, if such prospectus was timely made available by the
Company pursuant to Section 4(d) and (ii) shall not apply to amounts paid in settlement of any Claim if such settlement is effected
without the prior written consent of the Company, which consent shall not be unreasonably withheld or delayed. Such indemnity shall
remain in full force and effect regardless of any investigation made by or on behalf of the Indemnified Person and shall survive
the transfer of the Registrable Securities by the Investors pursuant to Section 10.

b.    
In connection with any Registration Statement in which an Investor is participating, each such Investor agrees to severally
and not jointly indemnify, hold harmless and defend, to the same extent and in the same manner as is set forth in Section 7(a),
the Company, each of its directors, each of its officers who signs the Registration Statement and each Person, if any, who controls
the Company within the meaning of the Securities Act or the Exchange Act (each, an “Indemnified Party”), against
any Claim or Indemnified Damages to which any of them may become subject, under the Securities Act, the Exchange Act or otherwise,
insofar as such Claim or Indemnified Damages arise out of or are based upon any Violation, in each case to the extent, and only
to the extent, that such Violation occurs in reliance upon and in conformity with written information furnished to the Company
by such Investor expressly for use in connection with such Registration Statement; and, subject to Section 7(c), such Investor
shall reimburse the Indemnified Party, promptly as such expenses are incurred and are due and payable, for any legal fees or other
reasonable expenses incurred by it in connection with investigating or defending any such Claim; provided, however, that the indemnity
agreement contained in this Section 7(b) and the agreement with respect to contribution contained in Section 8 shall not apply
to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of such Investor, which
consent shall not be unreasonably withheld or delayed; provided, further, however, that the Investor shall be liable under this
Section 7(b) for only that amount of a Claim or Indemnified Damages as does not exceed the net proceeds to such Investor as a result
of the sale of Registrable Securities pursuant to such Registration Statement. Such indemnity shall remain in full force and effect
regardless of any investigation made by or on behalf of such Indemnified Party and shall survive the transfer of the Registrable
Securities by the Investors pursuant to Section 10.

c.     
Promptly after receipt by an Indemnified Person or Indemnified Party under this Section 7 of notice of the commencement
of any action or proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified
Party shall, if a Claim in respect thereof is to be made against any indemnifying party under this Section 7, deliver to the indemnifying
party a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to
the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of
the defense thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified
Party, as the case may be; provided, however, that an Indemnified Person or Indemnified Party shall have the right
to retain its own counsel with the fees and expenses of not more than one counsel for such Indemnified Person or Indemnified Party
to be paid by the indemnifying party, if, in the reasonable opinion of counsel retained by the indemnifying party, the representation
by such counsel of the Indemnified Person or Indemnified Party and the indemnifying party would be inappropriate due to actual
or potential differing interests between such Indemnified Person or Indemnified Party and any other party represented by such counsel
in such proceeding. In the case of an Indemnified Person, legal counsel referred to in the immediately preceding sentence shall
be selected by the Investors holding at least a majority in interest of the Registrable Securities included in the Registration
Statement to which the Claim relates. The Indemnified Party or Indemnified Person shall cooperate fully with the indemnifying party
in connection with any negotiation or defense of any such action or Claim by the indemnifying party and shall furnish to the indemnifying
party all information reasonably available to the Indemnified Party or Indemnified Person which relates to such action or Claim.
The indemnifying party shall keep the Indemnified Party or Indemnified Person reasonably apprised at all times as to the status
of the defense or any settlement negotiations with respect thereto. No indemnifying party shall be liable for any settlement of
any action, claim or proceeding effected without its prior written consent; provided, however, that the indemnifying
party shall not unreasonably withhold, delay or condition its consent. No indemnifying party shall, without the prior written consent
of the Indemnified Party or Indemnified Person, consent to entry of any judgment or enter into any settlement or other compromise
which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified
Person of a release from all liability in respect to such Claim or litigation, and such settlement shall not include any admission
as to fault on the part of the Indemnified Party. Following indemnification as provided for hereunder, the indemnifying party shall
be subrogated to all rights of the Indemnified Party or Indemnified Person with respect to all third parties, firms or corporations
relating to the matter for which indemnification has been made. The failure to deliver written notice to the indemnifying party
within a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability to the
Indemnified Person or Indemnified Party under this Section 7, except to the extent that the indemnifying party is prejudiced in
its ability to defend such action.

d.    
The indemnification required by this Section 7 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 Indemnified Damages are incurred.

e.     
The indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified
Party or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject
to pursuant to the law.

8.    
Contribution.

To the extent any
indemnification by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution
with respect to any amounts for which it would otherwise be liable under Section 7 to the fullest extent permitted by law; provided,
however, that: (i) no Person involved in the sale of Registrable Securities, which Person is guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) in connection with such sale, shall be entitled to contribution from
any Person involved in such sale of Registrable Securities who was not guilty of fraudulent misrepresentation; and (ii) contribution
by any seller of Registrable Securities shall be limited in amount to the amount of net proceeds received by such seller from the
sale of such Registrable Securities pursuant to such Registration Statement.

9.    
Reports Under the Exchange Act.

With a view to making
available to the Investors the benefits of Rule 144 promulgated under the Securities Act or any other similar rule or regulation
of the SEC that may at any time permit the Investors to sell securities of the Company to the public without registration (“Rule
144”), the Company agrees to:

a.     
make and keep public information available, as those terms are understood and defined in Rule 144;

b.    
file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and
the Exchange Act so long as the Company remains subject to such requirements and the filing of such reports and other documents
is required for the applicable provisions of Rule 144; and

c.     
furnish to each Investor so long as such Investor owns Registrable Securities, promptly upon request, (i) a written statement
by the Company, if true, that it has complied with the reporting requirements of Rule 144, the Securities Act and the Exchange
Act, (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by
the Company and (iii) such other information as may be reasonably requested to permit the Investors to sell such securities pursuant
to Rule 144 without registration.

10. 
Assignment of Registration Rights.

The rights under this
Agreement shall be automatically assignable by the Investors to any transferee of all or any portion of such Investor's Registrable
Securities if: (i) the Investor agrees in writing with the transferee or assignee to assign such rights and a copy of such agreement
is furnished to the Company within a reasonable time after such assignment; (ii) the Company is, within a reasonable time after
such transfer or assignment, furnished with written notice of (a) the name and address of such transferee or assignee and (b) the
securities with respect to which such registration rights are being transferred or assigned; (iii) immediately following such transfer
or assignment the further disposition of such securities by the transferee or assignee is restricted under the Securities Act or
applicable state securities laws; (iv) at or before the time the Company receives the written notice contemplated by clause (ii)
of this sentence the transferee or assignee agrees in writing with the Company to be bound by all of the provisions contained herein;
and (v) such transfer shall have been made in accordance with the applicable requirements of the Securities Purchase Agreement.

11. 
Amendment of Registration Rights.

Provisions of this
Agreement may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively
or prospectively), only with the written consent of the Company and the Required Holders. Any amendment or waiver effected in accordance
with this Section 11 shall be binding upon each Investor and the Company. No such amendment shall be effective to the extent that
it applies to less than all of the Investors. No consideration shall be offered or paid to any Person to amend or consent to a
waiver or modification of any provision of any of this Agreement unless the same consideration also is offered to all of the parties
to this Agreement.

12. 
Miscellaneous.

a.     
A Person is deemed to be a holder of Registrable Securities whenever such Person owns or is deemed to own of record such
Registrable Securities. If the Company receives conflicting instructions, notices or elections from two or more Persons with respect
to the same Registrable Securities, the Company shall act upon the basis of instructions, notice or election received from the
record owner of such Registrable Securities.

b.    
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement
must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when
sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending
party); or (iii) one (1) Business Day after deposit with a nationally recognized overnight delivery service, in each case properly
addressed to the party to receive the same. The addresses and facsimile numbers for such communications shall be:

If to the Company:

 

W270, Inc.

2735 Wardlow Road

Corona, CA 92882

Facsimile: (888) 729-4827

Attention: Chief Executive Officer

 

If to Legal Counsel:

 

			Stubbs Alderton & Markiles, LLP

			15260 Ventura Blvd., 20th Floor

			Telephone: (818) 444-4503

			Facsimile: (818) 444-6303

			Attention: Greg Akselrud, Esq.

 

If to a Holder, to its address and facsimile
number set forth on such Holder’s signature page to the Securities Purchase Agreement, or to such other address and/or facsimile
number and/or to the attention of such other Person as the recipient party has specified by written notice given to each other
party five (5) days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such
notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender's facsimile machine
containing the time, date, recipient facsimile number and an image of the first page of such transmission or (C) provided by a
courier or overnight courier service shall be rebuttable evidence of personal service, receipt by facsimile or receipt from a nationally
recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.

c.     
Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising
such right or remedy, shall not operate as a waiver thereof.

d.    
All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed
by the internal laws of the State of California, without giving effect to any choice of law or conflict of law provision or rule
(whether of the State of California or any other jurisdictions) that would cause the application of the laws of any jurisdictions
other than the State of California. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal
courts sitting in the County of Los Angeles, for the adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action
or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding
is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably
waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy
thereof to such party at the address for such 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 manner permitted by law. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction,
such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that
jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction. EACH PARTY HEREBY
IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER
OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

e.     
This Agreement, the other Transaction Documents and the instruments referenced herein and therein constitute the entire
agreement among the parties hereto with respect to the subject matter hereof and thereof. There are no restrictions, promises,
warranties or undertakings, other than those set forth or referred to herein and therein. This Agreement, the other Transaction
Documents and the instruments referenced herein and therein supersede all prior agreements and understandings among the parties
hereto with respect to the subject matter hereof and thereof.

f.     
Subject to the requirements of Section 10, this Agreement shall inure to the benefit of and be binding upon the permitted
successors and assigns of each of the parties hereto.

g.    
The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning
hereof.

h.    
This Agreement may be executed in identical counterparts, each of which shall be deemed an original but all of which shall
constitute one and the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto by
facsimile transmission of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

i.      
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 any 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.

j.      
All consents and other determinations required to be made by the Investors pursuant to this Agreement shall be made, unless
otherwise specified in this Agreement, by the Required Holders.

k.    
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.

l.      
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.

m.  
The obligations of each Investor hereunder are several and not joint with the obligations of any other Investor, and no
provision of this Agreement is intended to confer any obligations on any Investor vis-à-vis any other Investor. Nothing
contained herein, and no action taken by any Investor pursuant hereto, shall be deemed to constitute the Investors as a partnership,
an association, a joint venture or any other kind of entity, or create a presumption that the Investors are in any way acting in
concert or as a group with respect to such obligations or the transactions contemplated herein.

* * * * * *

    	 

    	 

    

IN WITNESS WHEREOF,
each Holder and the Company have caused their respective signature page to this Registration Rights Agreement to be duly executed
as of the date first written above.

	 	COMPANY:
	 	 
	 	W270, INC.
	 	 
	 	 
	 	 
	 	By:___/s/
    Eric Stoppenhagen_________________
 Name:   Eric Stoppenhagen
 Title:    President
	 	 

 

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
each Holder and the Company have caused their respective signature page to this Registration Rights Agreement to be duly executed
as of the date first written above.

 

PURCHASER:

[NAME]

 

 

By:

Name:

Title:

 

    	 

    	 

    

IN WITNESS WHEREOF,
each Holder and the Company have caused their respective signature page to this Registration Rights Agreement to be duly executed
as of the date first written above.

STOCKHOLDERS:

W-NET FUND I, L.P.

 

By: W-Net Fund GP I LLC

Title: General Partner

 

By:/s/ David Weiner

Name: David Weiner

Title: Manager

 

VERDAD TELECOM, INC.

 

 

By:/s/ Eric Stoppenhagen

Name: Eric Stoppenhagen

Title: President

 

    	 

    	 

    

EXHIBIT A

 

FORM OF NOTICE OF EFFECTIVENESS

OF REGISTRATION STATEMENT

Action Stock Transfer Corporation

2469 E. Fort Union Blvd., Ste. 214

Salt Lake City, UT 84121

Attention: Justeen Blankenchip

 

Re:W270, Inc.

Ladies and Gentlemen:

[We are][I am] counsel
to W270, Inc., a Nevada corporation (the “Company”), and have represented the Company in connection with that
certain Securities Purchase Agreement (the “Securities Purchase Agreement”) entered into by and among the Company
and the Purchasers named therein (collectively, the “Holders”) pursuant to which the Company issued to the Holders
senior secured convertible notes (the “Notes”) convertible into the Company’s common stock, $0.001 par
value per share (the “Common Stock”). Pursuant to the Securities Purchase Agreement, the Company also has
entered into a Registration Rights Agreement with the Holders (the “Registration Rights Agreement”) pursuant
to which the Company agreed, among other things, to register the Registrable Securities (as defined in the Registration Rights
Agreement), including the shares of Common Stock issuable upon conversion of the Notes, under the Securities Act of 1933, as amended
(the "Securities Act"). In connection with the Company’s obligations under the Registration Rights Agreement,
on ____________ ___, 20__, the Company filed a Registration Statement on Form S-3 (File No. 333-_____________) (the “Registration
Statement”) with the Securities and Exchange Commission (the “SEC”) relating to the Registrable Securities
which names each of the Holders as a selling stockholder thereunder.

In connection with
the foregoing, [we][I] advise you that a member of the SEC’s staff has advised [us][me] by telephone that the SEC has entered
an order declaring the Registration Statement effective under the Securities Act at [ENTER TIME OF EFFECTIVENESS]
on [ENTER DATE OF EFFECTIVENESS] and [we][I] have no knowledge, after telephonic inquiry of a member of the SEC’s
staff, that any stop order suspending its effectiveness has been issued or that any proceedings for that purpose are pending before,
or threatened by, the SEC and the Registrable Securities are available for resale under the Securities Act pursuant to the Registration
Statement.

This letter shall
serve as our standing instruction to you that the shares of Common Stock are freely transferable by the Holders pursuant to the
Registration Statement. You need not require further letters from us to effect any future legend-free issuance or reissuance of
shares of Common Stock to the Holders as contemplated by the Company's Irrevocable Transfer Agent Instructions dated ________ __,
2013, provided at the time of such reissuance, the Company has not otherwise notified you that the Registration Statement is unavailable
for the resale of the Registrable Securities.

.

Very truly yours,

Stubbs Alderton & Markiles, LLP

 

 

 

By:_____________________

Name:

Title:

 

CC:[LIST NAME OF HOLDER]

 

 

 

    	 

    	 

    

 

EXHIBIT B

 

SELLING STOCKHOLDERS

The shares of Common
Stock being offered by the selling stockholders are issuable upon conversion of the convertible notes and in payment of interest
on the convertible notes. For additional information regarding the issuance of those convertible notes, see “Private Placement
of Convertible Notes” above. We are registering the shares of Common Stock in order to permit the selling stockholders to
offer the shares for resale from time to time. Except for the ownership of the convertible notes issued pursuant to the Securities
Purchase Agreement, the selling stockholders have not had any material relationship with us within the past three years.

The table below
lists the selling stockholders and other information regarding the beneficial ownership of the shares of Common Stock by each of
the selling stockholders. The second column lists the number of shares of Common Stock beneficially owned by each selling stockholder,
based on its ownership of the convertible notes, as of ________, 2013, assuming conversion of all convertible notes held by the
selling stockholders on that date, without regard to any limitations on conversions.

The third column
lists the shares of Common Stock being offered by this prospectus by each selling stockholder.

In accordance with
the terms of a registration rights agreement among the Company and the selling stockholders, this prospectus generally covers the
resale of at least 130% of the aggregate number of shares of Common Stock issued or issuable upon conversion of the convertible
notes as of the trading day immediately preceding the date the registration statement is initially filed with the SEC. Because
the conversion price of the convertible notes may be adjusted, the number of shares that will actually be issued may be more or
less than the number of shares being offered by this prospectus. The fourth column assumes the sale of all of the shares offered
by the selling stockholders pursuant to this prospectus.

Under the terms
of the convertible notes, a selling stockholder may not convert the convertible notes to the extent such conversion would cause
such selling stockholder, together with its affiliates, to beneficially own a number of shares of Common Stock which would exceed
4.9% of our then outstanding shares of Common Stock following such conversion, excluding for purposes of such determination shares
of Common Stock issuable upon conversion of the convertible notes which have not been converted. The number of shares in the second
column does not reflect this limitation. The selling stockholders may sell all, some or none of their shares in this offering.
See “Plan of Distribution.”

 

	

 

Name of Selling Stockholder	

Number of Shares Owned Prior to Offering	Maximum Number of Shares to be Sold Pursuant to this Prospectus	

Number of Shares Owned After Offering

    	 

    	 

    

 

PLAN OF DISTRIBUTION

We are registering
the shares of Common Stock issuable upon conversion of the convertible notes, and as interest on the convertible notes to permit
the resale of these shares of Common Stock by the holders of the convertible notes from time to time after the date of this prospectus.
We will not receive any of the proceeds from the sale by the selling stockholders of the shares of Common Stock. We will bear all
fees and expenses incident to our obligation to register the shares of Common Stock.

The selling stockholders
may sell all or a portion of the shares of Common Stock beneficially owned by them and offered hereby from time to time directly
or through one or more underwriters, broker-dealers or agents. If the shares of Common Stock are sold through underwriters or broker-dealers,
the selling stockholders will be responsible for underwriting discounts or commissions or agent’s commissions. The shares
of Common Stock may be sold in one or more transactions at fixed prices, at prevailing market prices at the time of the sale, at
varying prices determined at the time of sale, or at negotiated prices. These sales may be effected in transactions, which may
involve crosses or block transactions,

		·	on any national securities exchange or quotation service on which the securities may be listed
or quoted at the time of sale;

		·	in the over-the-counter market;

		·	in transactions otherwise than on these exchanges or systems or in the over-the-counter market;

		·	through the writing of options, whether such options are listed on an options exchange or otherwise;

		·	ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

		·	block trades in which the broker-dealer will attempt to sell the shares as agent but may position
and resell a portion of the block as principal to facilitate the transaction;

		·	purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

		·	an exchange distribution in accordance with the rules of the applicable exchange;

		·	privately negotiated transactions;

		·	short sales;

		·	sales pursuant to Rule 144;

		·	broker-dealers may agree with the selling securityholders to sell a specified number of such shares
at a stipulated price per share;

		·	a combination of any such methods of sale; and

		·	any other method permitted pursuant to applicable law.

If the selling stockholders
effect such transactions by selling shares of Common Stock to or through underwriters, broker-dealers or agents, such underwriters,
broker-dealers or agents may receive commissions in the form of discounts, concessions or commissions from the selling stockholders
or commissions from purchasers of the shares of Common Stock for whom they may act as agent or to whom they may sell as principal
(which discounts, concessions or commissions as to particular underwriters, broker-dealers or agents may be in excess of those
customary in the types of transactions involved). In connection with sales of the shares of Common Stock or otherwise, the selling
stockholders may enter into hedging transactions with broker-dealers, which may in turn engage in short sales of the shares of
Common Stock in the course of hedging in positions they assume. The selling stockholders may also sell shares of Common Stock short
and deliver shares of Common Stock covered by this prospectus to close out short positions and to return borrowed shares in connection
with such short sales. The selling stockholders may also loan or pledge shares of Common Stock to broker-dealers that in turn may
sell such shares.

The selling stockholders
may pledge or grant a security interest in some or all of the convertible notes or shares of Common Stock owned by them and, if
they default in the performance of their secured obligations, the pledgees or secured parties may offer and sell the shares of
Common Stock from time to time pursuant to this prospectus or any amendment to this prospectus under Rule 424(b)(3) or other applicable
provision of the Securities Act of 1933, as amended, amending, if necessary, the list of selling stockholders to include the pledgee,
transferee or other successors in interest as selling stockholders under this prospectus. The selling stockholders also may transfer
and donate the shares of Common Stock in other circumstances in which case the transferees, donees, pledgees or other successors
in interest will be the selling beneficial owners for purposes of this prospectus.

The selling stockholders
and any broker-dealer participating in the distribution of the shares of Common Stock may be deemed to be “underwriters”
within the meaning of the Securities Act, and any commission paid, or any discounts or concessions allowed to, any such broker-dealer
may be deemed to be underwriting commissions or discounts under the Securities Act. At the time a particular offering of the shares
of Common Stock is made, a prospectus supplement, if required, will be distributed which will set forth the aggregate amount of
shares of Common Stock being offered and the terms of the offering, including the name or names of any broker-dealers or agents,
any discounts, commissions and other terms constituting compensation from the selling stockholders and any discounts, commissions
or concessions allowed or reallowed or paid to broker-dealers.

Under the securities
laws of some states, the shares of Common Stock may be sold in such states only through registered or licensed brokers or dealers.
In addition, in some states the shares of Common Stock may not be sold unless such shares have been registered or qualified for
sale in such state or an exemption from registration or qualification is available and is complied with.

There can be no
assurance that any selling stockholder will sell any or all of the shares of Common Stock registered pursuant to the registration
statement, of which this prospectus forms a part.

The selling stockholders
and any other person participating in such distribution will be subject to applicable provisions of the Securities Exchange Act
of 1934, as amended, and the rules and regulations thereunder, including, without limitation, Regulation M of the Exchange Act,
which may limit the timing of purchases and sales of any of the shares of Common Stock by the selling stockholders and any other
participating person. Regulation M may also restrict the ability of any person engaged in the distribution of the shares of Common
Stock to engage in market-making activities with respect to the shares of Common Stock. All of the foregoing may affect the marketability
of the shares of Common Stock and the ability of any person or entity to engage in market-making activities with respect to the
shares of Common Stock.

We will pay all
expenses of the registration of the shares of Common Stock pursuant to the registration rights agreement, estimated to be $[ ]
in total, including, without limitation, Securities and Exchange Commission filing fees and expenses of compliance with state securities
or “blue sky” laws; provided, however, that a selling stockholder will pay all underwriting discounts and selling commissions,
if any. We will indemnify the selling stockholders against liabilities, including some liabilities under the Securities Act, in
accordance with the registration rights agreements, or the selling stockholders will be entitled to contribution. We may be indemnified
by the selling stockholders against civil liabilities, including liabilities under the Securities Act, that may arise from any
written information furnished to us by the selling stockholder specifically for use in this prospectus, in accordance with the
related registration rights agreement, or we may be entitled to contribution.

Once sold under
the registration statement, of which this prospectus forms a part, the shares of Common Stock will be freely tradable in the hands
of persons other than our affiliates.

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