Document:

SUBSCRIPTION ESCROW AGREEMENT

 

Subscription Escrow
Agreement (this “Escrow Agreement”) dated as of the effective date (the “Effective Date”) set forth on
schedule 1 attached hereto (“Schedule 1”) by and among the corporation identified on Schedule 1 (the “Issuer”),
the corporation identified on Schedule 1 (as applicable) (the “Depositor”) and CSC Trust Company of Delaware, as escrow
agent hereunder (the “Escrow Agent”).

 

WHEREAS, the
Issuer intends to offer and sell to investors in a private placement transaction (the “Offering”) the securities identified
on Schedule 1 (the “Securities”), at the purchase price of $200,000.00 per Unit identified
on Schedule 1 (the “Purchase Price”) up to the maximum escrow deposit amount identified
on Schedule 1 (the “Maximum Amount”);

 

WHEREAS, the
Offering is being made on an “any or all” basis to “accredited investors” in accordance with Rule 506 of
Regulation D under the Securities Act, as amended (the “Securities Act”), and/or to “non-U.S. Persons”
in accordance with Rule 903 of Regulation S under the Securities Act;

 

WHEREAS, the
Issuer may accept any Subscriber’s subscription for a fraction of a Unit at any Initial Closing or Subsequent Closing;

 

WHEREAS, Securities
will be offered through the date specified on Schedule 1 (the “Initial Offering Period”), which period
may be extended in writing by the Issuer and Depositor (this additional period and the Initial Offering Period shall be referred
to as the “Offering Period”);

 

WHEREAS, the
initial closing of the Offering (the “Initial Closing”) is conditioned on the receipt of subscriptions in form acceptable
to the Issuer and certain other conditions (collectively, the “Initial Closing Conditions”);

 

WHEREAS, after
the Initial Closing, the Issuer may continue the Offering until the Maximum Amount has been reached or the end of the Offering
Period, whichever is earlier, and subsequent closings (each, a “Subsequent Closing”) may take place on an intermittent
basis, as determined by the Issuer and the Depositor, conditioned on the receipt of subscriptions in form acceptable to the Issuer
and certain other conditions (collectively, the “Subsequent Closing Conditions”);

 

WHEREAS, the
subscribers in the Offering (the “Subscribers”), in connection with their intent to purchase Securities in the Offering,
shall execute and deliver Securities Purchase Agreements and certain related documents memorializing the Subscribers’ agreements
to purchase and the Issuer’s agreement to sell the number of Securities set forth therein at the Purchase Price;

 

WHEREAS, the
parties hereto desire to provide for the safekeeping of the Escrow Deposit (as defined below) until such time as the Escrow Deposit
is released by the Escrow Agent in accordance with the terms and conditions of this Agreement; and

 

    	 

    	 

    

 

WHEREAS, the
Escrow Agent has agreed to accept, hold, and disburse the Escrow Deposit deposited with it and the earnings thereon in accordance
with the terms of this Escrow Agreement.

 

NOW
THEREFORE, in consideration of the foregoing and of the mutual covenants hereinafter set forth, the parties hereto agree
as follows:

 

1.          Appointment.
The Issuer and Depositor hereby appoint the Escrow Agent as their escrow agent for the purposes set forth herein, and the Escrow
Agent hereby accepts such appointment under the terms and conditions set forth herein.

 

2.          Escrow
Fund. On or before the Initial Closing, or on or before any Subsequent Closing with respect to Securities sold after the Initial
Closing, each Subscriber shall have delivered to the Escrow Agent the full Purchase Price for the number of Securities subscribed
for by such Subscriber by wire transfer of immediately available funds pursuant to the wire transfer instructions set forth on
Schedule 2 (“Schedule 2”) hereto, to the account of the Escrow Agent referenced on Schedule 2 hereto. All funds received
from the Subscribers in connection with the sale of Securities in the Offering shall be deposited with the Escrow Agent (the “Escrow
Deposit”). The Escrow Agent shall hold the Escrow Deposit and, subject to the terms and conditions hereof, shall invest and
reinvest the Escrow Deposit and the proceeds thereof (the “Escrow Fund”) as directed in Section 3.

 

3.          Investment
of Escrow Fund. During the term of this Escrow Agreement, the Escrow Fund shall be invested and reinvested by the Escrow Agent
in the investment indicated on Schedule 1 or such other investments as shall be directed in writing by the Issuer and the Depositor
and as shall be acceptable to the Escrow Agent. All investment orders involving U.S. Treasury obligations, commercial paper and
other direct investments may be executed through broker-dealers selected by the Escrow Agent. Periodic statements will be provided
to Issuer and Depositor reflecting transactions executed on behalf of the Escrow Fund. The Issuer and Depositor, upon written request,
will receive a statement of transaction details upon completion of any securities transaction in the Escrow Fund without any additional
cost. The Escrow Agent shall have the right to liquidate any investments held in order to provide funds necessary to make required
payments under this Escrow Agreement. The Escrow Agent shall have no liability for any loss sustained as a result of any investment
in an investment indicated on Schedule 1 or any investment made pursuant to the instructions of the parties hereto or as a result
of any liquidation of any investment prior to its maturity or for the failure of the parties to give the Escrow Agent instructions
to invest or reinvest the Escrow Fund. The Escrow Agent may earn compensation in the form of short-term interest (“float”)
on items like uncashed distribution checks (from the date issued until the date cashed), funds that we are directed not to invest,
deposits awaiting investment direction or received too late to be invested overnight in previously directed investments.

 

4.          Disposition
and Termination. The Depositor and the Issuer agree to notify the Escrow Agent in writing of the Initial Closing date of the
Offering. Additionally, subsequent to an Initial Closing, Depositor and the Issuer agree to notify the Escrow Agent in writing
of any Subsequent Closing date, if any, and of the termination of the Offering. Upon receipt of such written notification(s), the
following procedures will take place.

 

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i.            Release
of Escrow Fund upon Initial Closing. Prior to the Initial Closing, the Issuer and the Depositor shall deliver to the Escrow
Agent joint written instructions executed by a duly authorized executive officer of each of the Issuer and the Depositor (“Instructions”),
which Instructions shall provide the day designated as the Initial Closing date, and acknowledge and agree that as of the Initial
Closing date the Initial Closing Conditions have been or will be fully satisfied and shall specify the time, places and method
of delivery of the Escrow Fund, including with respect to Depositor fees that may be disbursed to the Depositor or to any other
co-placement agent or selected dealer. The Escrow Agent shall, at the time and place and by the method specified in the Instructions,
deliver the Escrow Fund (along with the interest earned on the investment of the Escrow Fund pursuant to Section 3 above).

 

ii.         Release
of Escrow Fund upon a Subsequent Closing. Prior to a Subsequent Closing, the Issuer and the Depositor shall deliver to the
Escrow Agent Instructions, which Instructions shall provide the day designated as the Subsequent Closing date, and acknowledge
and agree that as of the Subsequent Closing date the Subsequent Closing Conditions have been or will be fully satisfied and shall
specify the time, places and method of delivery of the then Escrow Fund, including with respect to Depositor fees that may be disbursed
to the Depositor or to any other co-placement agent or selected dealer. The Escrow Agent shall, at the time and place and by the
method specified in the Instructions, deliver the then Escrow Fund (along with the interest earned on the investment of the Escrow
Fund pursuant to Section 3 above).

 

iii.         Return
of Escrow Fund on Termination of Offering. In the event that the Escrow Agent shall have received written notice executed by
a duly authorized executive officer of each of the Issuer and the Depositor indicating that the Offering has been terminated prior
to the Initial Closing and designating a termination date, the Escrow Agent shall return to each Subscriber, the Purchase Price
(without interest and deduction) delivered by such Subscriber to the Escrow Agent. The Issuer and the Depositor shall provide the
Escrow Agent with time, place and method of delivery for each Subscriber whose Purchase Price the Escrow Agent is to deliver pursuant
to this Section (but in no case shall the Escrow Agent deliver such Purchase Price more than thirty (30) days following receipt
by the Escrow Agent of such delivery instructions). In this case, the Escrow Agent shall, at the time and place and by the method
specified in the notice of termination of the Offering, deliver to the Depositor any and all interest earned on the investment
of the Escrow Fund pursuant to Section 3 above.

 

iv.         Return
of Escrow Fund on Rejection of Subscription. In the event the Issuer reasonably determines it is necessary or appropriate to
reject the subscription of any Subscriber for whom the Escrow Agent has received an Escrow Deposit, the Issuer shall deliver written
notice of such event to the Escrow Agent and Depositor which notice shall include the reason for such rejection and the time, place
and method of delivery for the return to such Subscriber of the Purchase Price delivered by such Subscriber. The Escrow Agent shall
deliver such funds (without interest and deduction) pursuant to such written notice.

 

v.           Delivery
Pursuant to Court Order. Notwithstanding any provision contained herein, upon receipt by the Escrow Agent of a final and non-appealable
judgment, order, decree or award of a court of competent jurisdiction (a “Court Order”), the Escrow Agent shall deliver
the Escrow Fund in accordance with the Court Order. Any Court Order shall be accompanied by an opinion of counsel for the party
presenting the Court Order to the Escrow Agent (which opinion shall be satisfactory to the Escrow Agent) to the effect that the
court issuing the Court Order has competent jurisdiction and that the Court Order is final and non-appealable.

 

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Upon delivery of the
Escrow Fund by the Escrow Agent (i) to the Issuer following the Initial Closing, if there are to be no Subsequent Closings, (ii)
following a final Subsequent Closing, or (iii) to the Subscribers upon termination of the Offering prior to the Initial Closing,
as the case may be, and in each case notice of termination of the Offering having been delivered by the Issuer and the Depositor
to the Escrow Agent, this Escrow Agreement shall terminate, subject to the provisions of Section 8.

 

5.          Escrow
Agent. The Escrow Agent undertakes to perform only such duties as are expressly set forth herein and no duties shall be implied.
The Escrow Agent shall have no liability under and no duty to inquire as to the provisions of any agreement other than this Escrow
Agreement. The Escrow Agent may rely upon and shall not be liable for acting or refraining from acting upon any written notice,
instruction or request furnished to it hereunder and believed by it to be genuine and to have been signed or presented by the proper
party or parties. The Escrow Agent shall be under no duty to inquire into or investigate the validity, accuracy or content of any
such document. The Escrow Agent shall have no duty to solicit any payments which may be due it or the Escrow Fund. The Escrow Agent
shall not be liable for any action taken or omitted by it in good faith except to the extent that a court of competent jurisdiction
determines that the Escrow Agent’s gross negligence or willful misconduct was the primary cause of any loss to the Issuer
or Depositor. The Escrow Agent may execute any of its powers and perform any of its duties hereunder directly or through agents
or attorneys (and shall be liable only for the careful selection of any such agent or attorney) and may consult with counsel, accountants
and other skilled persons to be selected and retained by it. The Escrow Agent shall not be liable for anything done, suffered or
omitted in good faith by it in accordance with the advice or opinion of any such counsel, accountants or other skilled persons.
In the event that the Escrow Agent shall be uncertain as to its duties or rights hereunder or shall receive instructions, claims
or demands from any party hereto which, in its opinion, conflict with any of the provisions of this Escrow Agreement, it shall
be entitled to refrain from taking any action and its sole obligation shall be to keep safely all property held in escrow until
it shall be directed otherwise in writing by all of the other parties hereto or by a final order or judgment of a court of competent
jurisdiction. Anything in this Escrow Agreement to the contrary notwithstanding, in no event shall the Escrow Agent be liable for
special, indirect or consequential loss or damage of any kind whatsoever (including but not limited to lost profits), even if the
Escrow Agent has been advised of the likelihood of such loss or damage and regardless of the form of action.

 

6.          Succession.
The Escrow Agent may resign and be discharged from its duties or obligations hereunder by giving 10 business days advance notice
in writing of such resignation to the other parties hereto specifying a date when such resignation shall take effect. The Escrow
Agent shall have the right to withhold an amount equal to any amount due and owing to the Escrow Agent, plus any costs and expenses
the Escrow Agent shall reasonably believe may be incurred by the Escrow Agent in connection with the termination of the Escrow
Agreement. Any corporation or association into which the Escrow Agent may be merged or converted or with which it may be consolidated
shall be the Escrow Agent under this Escrow Agreement without further act.

 

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7.          Fees.
The Issuer and Depositor agree jointly and severally to (i) pay the Escrow Agent upon the Initial Closing and from time to time
thereafter reasonable compensation for the services to be rendered hereunder, which unless otherwise agreed in writing shall be
as described in Schedule 4 attached hereto, and (ii) pay or reimburse the Escrow Agent upon request for all expenses, disbursements
and advances, including reasonable attorney’s fees and expenses, incurred or made by it in connection with the preparation,
execution, performance, delivery, modification and termination of this Escrow Agreement. The Escrow Agent is authorized to deduct
such fees from the Escrow Fund at the time of the Initial Closing without prior authorization from the Issuer or Depositor. In
the event that the Offering is terminated prior to an Initial Offering, the Issuer and Depositor agree to pay the Escrow Agent
the Review Fee and the Acceptance Fee as described in Schedule 4 hereto.

 

8.          Indemnity.
The Issuer and the Depositor shall jointly and severally indemnify, defend and save harmless the Escrow Agent and its directors,
officers, agents and employees (the “indemnitees”) from all loss, liability or expense (including the reasonable fees
and expenses of in house or outside counsel) arising out of or in connection with (i) the Escrow Agent’s execution and performance
of this Escrow Agreement, except in the case of any indemnitee to the extent that such loss, liability or expense is due to the
gross negligence or willful misconduct of such indemnitee, or (ii) its following any instructions or other directions from the
Issuer or the Depositor, except to the extent that its following any such instruction or direction is expressly forbidden by the
terms hereof. The parties hereto acknowledge that the foregoing indemnities shall survive the resignation or removal of the Escrow
Agent or the termination of this Escrow Agreement.

 

9.          TINs.
The Issuer and the Depositor each represent that its correct TIN assigned by the Internal Revenue Service or any other taxing authority
is set forth in Schedule 1. All interest or other income earned under the Escrow Agreement shall be allocated and/or paid as directed
in a joint written direction of the Issuer and the Depositor and reported by the recipient to the Internal Revenue Service or any
other taxing authority. Notwithstanding such written directions, Escrow Agent shall report and, as required withhold any taxes
as it determines may be required by any law or regulation in effect at the time of the distribution. In the absence of timely direction,
all proceeds of the Escrow Fund shall be retained in the Escrow Fund and reinvested from time to time by the Escrow Agent as provided
in Section 3. In the event that any earnings remain undistributed at the end of any calendar year, Escrow Agent shall report to
the Internal Revenue Service or such other authority such earnings as it deems appropriate or as required by any applicable law
or regulation or, to the extent consistent therewith, as directed in writing by the Issuer and the Depositor. In addition, Escrow
Agent shall withhold any taxes it deems appropriate and shall remit such taxes to the appropriate authorities.

 

10.         Notices.
All communications hereunder shall be in writing and shall be deemed to be duly given and received:

 

(i)          upon
delivery if delivered personally or upon confirmed transmittal if by facsimile;

 

(ii)         on
the next Business Day (as hereinafter defined) if sent by overnight
courier; or

 

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(iii)       four
(4) Business Days after mailing if mailed by prepaid registered mail, return receipt requested, to the appropriate notice
address set forth on Schedule 1 or at such other address as any party hereto may have furnished to the other parties in writing
by registered mail, return receipt requested.

 

Notwithstanding the
above, in the case of communications delivered to the Escrow Agent pursuant to (ii) and (iii) of this Section 10, such communications
shall be deemed to have been given on the date received by the Escrow Agent. In the event that the Escrow Agent, in its sole discretion,
shall determine that an emergency exists, the Escrow Agent may use such other means of communication as the Escrow Agent deems
appropriate. “Business Day” shall mean any day other than
a Saturday, Sunday or any other day on which the Escrow Agent located at the notice address set forth on Schedule 1 is authorized
or required by law or executive order to remain closed.

 

11.         Security
Procedures. In the event funds transfer instructions are given (other than in writing at the time of execution of this Escrow
Agreement), whether in writing, by telecopier or otherwise, the Escrow Agent is authorized to seek confirmation of such instructions
by telephone call-back to the person or persons designated on schedule 3 hereto (“Schedule 3”), and the Escrow Agent
may rely upon the confirmation of anyone purporting to be the person or persons so designated. The persons and telephone numbers
for call-backs may be changed only in a writing actually received and acknowledged by the Escrow Agent. The Escrow Agent and the
beneficiary’s bank in any funds transfer may rely solely upon any account numbers or similar identifying numbers provided
by the Issuer or the Depositor to identify (i) the beneficiary, (ii) the beneficiary’s bank, or (iii) an intermediary bank.
The Escrow Agent may apply any of the escrowed funds for any payment order it executes using any such identifying number, even
where its use may result in a person other than the beneficiary being paid, or the transfer of funds to a bank other than the beneficiary’s
bank or an intermediary bank designated. The parties to this Escrow Agreement acknowledge that these security procedures are commercially
reasonable.

 

12.         Miscellaneous.
The provisions of this Escrow Agreement may be waived, altered, amended or supplemented, in whole or in part, only by a writing
signed by all of the parties hereto. Neither this Escrow Agreement nor any right or interest hereunder may be assigned in whole
or in part by any party, except as provided in Section 6, without the prior consent of the other parties, which consent shall not
be unreasonably withheld. This Escrow Agreement shall be governed by and construed under the laws of the State of Delaware. Each
party hereto irrevocably waives any objection on the grounds of venue, forum non conveniens or any similar grounds and irrevocably
consents to service of process by mail or in any other manner permitted by applicable law and consents to the jurisdiction of the
courts located in the State of Delaware. The parties further hereby waive any right to a trial by jury with respect to any lawsuit
or judicial proceeding arising or relating to this Escrow Agreement. No party to this Escrow Agreement is liable to any other party
for losses due to, or if it is unable to perform its obligations under the terms of this Escrow Agreement because of, acts of God,
fire, floods, strikes, equipment or transmission failure, or other causes reasonably beyond its control. This Escrow Agreement
may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF,
the parties hereto have executed this Escrow Agreement as of the date set forth in Schedule 1. 

 

	 	CSC Trust Company of Delaware,
	 	as Escrow Agent

 

	 	By:	/s/ Alan R. Halpern
	 	 	Name: Alan R. Halpern
	 	 	Title:   President

 

	 	ISSUER:
	 	 
	 	BOLDFACE Group, Inc.

 

	 	By:	/s/ Nicole Ostoya
	 	 	Name: Nicole Ostoya
	 	 	Title: Chief Executive Officer and President

 

	 	DEPOSITOR:
	 	 
	 	Aegis Capital Corp.

 

	 	By:	/s/ Kevin C. McKenna
	 	 	Name: Kevin C. McKenna
	 	 	Title:   Chief Compliance Officer

 

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Schedule
1

 

	Effective Date:	December 19, 2012
	 	 
	Name of Issuer:	BOLDFACE Group, Inc.
	Issuer Notice Address:	1309 Pico Blvd., Suite A
	 	Santa Monica, CA 90405
	Issuer IRS EIN	02-0811868
	 	 
	With a copy to (which	Gottbetter & Partners, LLP
	shall not constitute notice):	488 Madison Avenue, 12th Floor
	 	New York, NY  10022
	 	Attn:  Adam S. Gottbetter
	 	 
	Name of Depositor:	Aegis Capital Corp.
	Depositor Notice Address:	810 Seventh Avenue, 18th Floor
	 	New York, NY 10019
	Depositor TIN:	11-2671906
	 	 
	Escrow Deposit:	$3,000,000 maximum deposit, in whole or in part
	 	 
	Security:	Units, with each Unit consisting of: (i) a Note in denomination of Two Hundred Thousand Dollars ($200,000), which will be convertible into shares of the Issuer’s common stock and (ii) five-year warrants to purchase 800,000 shares of the Issuer’s common stock, half of which will be exercisable at $0.50 per share and half of which will be exercisable at $1.00 per share.
	 	 
	Purchase Price:	$200,000.00 per Unit
	 	 
	End of Initial Offering Period:	January 31, 2013
	 	 
	End of Offering Period:	n/a (subject to a mutual extension in writing by Aegis Capital Corp. and the Issuer)

 

Investment:

		 ̈	Goldman Sachs Financial Square Funds Prime Obligations Fund (the
“Share Class”), an institutional money market mutual fund for which the Escrow Agent serves as shareholder servicing
agent and/or custodian or subcustodian. The parties hereto: (i) acknowledge Escrow Agent’s disclosure of the services CSC
is providing to and the fees it receives from Goldman Sachs; (ii) consent to the Escrow Agent’s receipt of these fees in
return for providing shareholder services for the Share Class; and (iii) acknowledge that the Escrow Agent has provided on or before
the date hereof a Goldman Sachs Financial Square Funds Prime Obligations Fund prospectus which discloses, among other things, the
various expenses of the Share Class and the fees to be received by the Escrow Agent. 

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		 ̈	Such other investments as Issuer, Depositor and Escrow Agent may
from time to time mutually agree upon in a writing executed and delivered by the Issuer and the Depositor and accepted by the Escrow
Agent. 

 

		x	The funds shall not be invested. 

 

	Escrow Agent notice address:	CSC Trust Company of Delaware
	 	2711 Centerville Road
	 	One Little Falls Centre
	 	Wilmington, DE 19808
	 	Attention:  Alan R. Halpern
	 	Fax No.:  302-636-8666
	 	 
	Escrow Agent’s compensation:	See Appended Schedule 4.

 

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Schedule
2

 

Wire
Instructions

 

PNC Bank

300 Delaware Avenue

Wilmington DE 19899

ABA# 031100089

Account Name: CSC Trust Company of Delaware

Account Number: 5605012373

FFC: BOLDFACE Group, Inc. #2; 79-1828 [insert Purchaser’s
name]

 

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Schedule 3

 

Telephone Number(s) for Call-Backs and

Person(s) Designated to Confirm Funds
Transfer Instructions

 

If to
Issuer:

 

	Name	 	Telephone Number
	 	 	 
	1. Nicole Ostoya	 	(415) 602-5265
	 	 	 
	2. Ashumi Kothary	 	(310) 450-4501

 

If to
Depositor:

 

Aegis
Capital Corp.

 

	Name	 	Telephone Number
	 	 	 
	1. Daniel Kordash	 	(917) 206-8985 or (917) 297-5009 (cell)
	 	 	 
	2. Adam Stern	 	(917) 445-3331

 

Telephone call-backs may be made to each
Issuer and Depositor if joint instructions are required pursuant to this Escrow Agreement.

 

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Schedule 4*

 

REVIEW FEE:

For initial examination of the Escrow Agreement
and all supporting documents. This is a one-time fee payable upon execution of the agreement.

 

$500.00

 

ACCEPTANCE FEE:

For initial services associated with establishing
the Escrow Account. This is a one-time fee payable upon execution of the agreement.

 

$500.00

 

ANNUAL ADMINISTRATION FEE:

An annual charge or any portion of a 12-month
period thereof. This fee is payable 45 days after the opening of the Escrow Account or prior to the final disbursement of the Escrow
Fund, whichever event occurs first, and in advance of the annual anniversary date thereafter. This charge is not prorated for
the first year. There is an additional annual charge of 250.00/subaccount opened.

 

$1,500.00

 

TRANSACTION FEES:

Wire transfer of fund: $35.00/domestic wire
initiated; $50.00/international wire initiated

Checks Cut: $10.00/check cut

Securities Purchase (Buy and Sell): $50.00/transaction

Returned Check: $30.00/returned item

 

*Out-of-pocket expenses, fees and disbursements
and services of an unanticipated or unexpected nature are not included in the above schedule.

 

    	12REGISTRATION RIGHTS AGREEMENT

 

This Registration Rights
Agreement (this “Agreement”) is made and entered into effective as of December 21, 2012 between BOLDFACE Group, Inc.,
a Nevada corporation (the “Company”), and the persons who have executed the signature page(s) hereto (each, a “Purchaser”
and collectively, the “Purchasers”).

 

RECITALS:

 

WHEREAS, the Company
offered, in compliance with Rule 506 of Regulation D and/or Regulation S of the Securities Act (as defined herein), to investors
in a private placement transaction (the “PPO”), units (the “Units”) of its securities, with each Unit consisting
of (i) a Note in denomination of Two Hundred Thousand Dollars ($200,000), which will be convertible into shares of the Company’s
Common Stock and (ii) the Purchaser Warrants;

 

WHEREAS, the final
closing of the PPO took place on December 21, 2012; and

 

WHEREAS, in connection
with the PPO, the Company agreed to provide certain registration rights related to the Warrant Shares and the Conversion Shares,
on the terms set forth herein.

 

NOW, THEREFORE, in
consideration of the mutual promises, representations, warranties, covenants, and conditions set forth herein, the parties mutually
agree as follows:

 

1.          Certain
Definitions. Capitalized terms used and not otherwise defined herein shall have the meanings ascribed to them in that certain
Securities Purchase Agreement (the “Purchase Agreement”), dated December 21, 2012, among the Company and the Purchasers
signatory thereto. As used in this Agreement, the following terms shall have the following respective meanings:

 

“Approved
Market” means the Over-the-Counter Bulletin Board, the Nasdaq Stock Market, the New York Stock Exchange or the American
Stock Exchange.

 

“Blackout
Period” means, with respect to a registration, a period, in each case commencing on the day immediately after the Company
notifies the Purchasers that they are required, because of the occurrence of an event of the kind described in Section 4(f) hereof,
to suspend offers and sales of Registrable Securities during which the Company, in the good faith judgment of its board of directors,
determines (because of the existence of, or in anticipation of, any acquisition, financing activity, or other transaction involving
the Company, or the unavailability for reasons beyond the Company’s control of any required financial statements, disclosure
of information which is in its best interest not to publicly disclose, or any other event or condition of similar significance
to the Company) that the registration and distribution of the Registrable Securities to be covered by such Registration Statement,
if any, would be seriously detrimental to the Company and its stockholders and ending on the earlier of (1) the date upon which
the material non-public information commencing the Blackout Period is disclosed to the public or ceases to be material and (2)
such time as the Company notifies the selling Holders that the Company will no longer delay such filing of the Registration Statement,
recommence taking steps to make such Registration Statement effective, or allow sales pursuant to such Registration Statement to
resume.

 

    	 

    	 

    

 

“Business
Day” means any day of the year, other than a Saturday, Sunday, or other day on which the Commission is required or authorized
to close.

 

“Commission”
means the U. S. Securities and Exchange Commission or any other federal agency at the time administering the Securities Act.

 

“Common Stock”
means the common stock of the Company and any and all shares of capital stock or other equity securities of: (i) the Company which
are added to or exchanged or substituted for the Common Stock by reason of the declaration of any stock dividend or stock split,
the issuance of any distribution or the reclassification, readjustment, recapitalization or other such modification of the capital
structure of the Company; and (ii) any other corporation, now or hereafter organized under the laws of any state or other governmental
authority, with which the Company is merged, which results from any consolidation or reorganization to which the Company is a party,
or to which is sold all or substantially all of the shares or assets of the Company, if immediately after such merger, consolidation,
reorganization or sale, the Company or the stockholders of the Company own equity securities having in the aggregate more than
50% of the total voting power of such other corporation.

 

“Effective
Date” means the later of (i) the date set forth in the preamble to this Agreement and (ii) the date of the final closing
of the PPO.

 

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

 

“Family Member”
means (a) with respect to any individual, such individual’s spouse, any descendants (whether natural or adopted), any trust
all of the beneficial interests of which are owned by any of such individuals or by any of such individuals together with any organization
described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, the estate of any such individual, and any corporation,
association, partnership or limited liability company all of the equity interests of which are owned by those above described individuals,
trusts or organizations and (b) with respect to any trust, the owners of the beneficial interests of such trust.

 

“Holder”
means each Purchaser or any of such Purchaser’s respective successors and Permitted Assignees who acquire rights in accordance
with this Agreement with respect to any Registrable Securities directly or indirectly from a Purchaser or from any Permitted Assignee.

 

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“Majority
Holders” means at any time Holders representing a majority of the Registrable Securities.

 

“Permitted
Assignee” means (a) with respect to a partnership, its partners or former partners in accordance with their partnership
interests, (b) with respect to a corporation, its stockholders in accordance with their interest in the corporation, (c) with respect
to a limited liability company, its members or former members in accordance with their interest in the limited liability company,
(d) with respect to an individual party, any Family Member of such party, (e) an entity that is controlled by, controls, or is
under common control with a transferor, or (f) a party to this Agreement.

 

“Piggyback
Registration” means, in any registration of Common Stock as set forth in Section 3(b), the ability of holders of Registrable
Securities to include Registrable Securities in such registration.

 

“PPO”
has the meaning given it in the recitals of this Agreement.

 

The terms “register,”
“registered,” and “registration” refers to a registration effected by preparing and filing
a registration statement in compliance with the Securities Act, and the declaration or ordering of the effectiveness of such registration
statement.

 

“Registrable
Securities” means the Warrant Shares and Conversion Shares but excluding (i) any Registrable Securities that have been
publicly sold or may be sold immediately without registration under the Securities Act either pursuant to Rule 144 of the Securities
Act or otherwise; (ii) any Registrable Securities sold by a person in a transaction pursuant to a registration statement filed
under the Securities Act; (iii) any Registrable Securities that are at the time subject to an effective registration statement
under the Securities Act; or (iv) any shares underlying the warrant commission issued to the placement agent and sub-agents in
the PPO.

 

“Registration
Default Date” means the date that is 90 days after the date the Registration Statement is actually filed with the Commission.

 

“Registration
Default Period” means the period during which any Registration Event occurs and is continuing.

 

“Registration
Event” means the occurrence of any of the following events:

 

(a)          the
Company fails to file with the Commission the Registration Statement on or before the Registration Filing Date;

 

(b)          the
Company fails to use its commercially reasonable efforts to cause the Registration Statement to be declared effective by the Commission
on or before the Registration Default Date;

 

    	3

    	 

    

 

(c)          after
the SEC Effective Date, sales of Registrable Securities cannot be made pursuant to the Registration Statement for any reason (including
without limitation by reason of a stop order, or the Company’s failure to update the Registration Statement) other than the
occurrence of an event of the kind described in Section 4(f) which gives rise to a Blackout Period and except as excused pursuant
to Section 3(e); or

 

(d)          the
Common Stock generally or the Registrable Securities specifically are not listed or included for quotation on an Approved Market,
or trading of the Common Stock is suspended or halted on the Approved Market, which at the time constitutes the principal market
for the Common Stock, for more than two full, consecutive Trading Days; provided, however, a Registration Event shall not be deemed
to occur if all or substantially all trading in equity securities (including the Common Stock) is suspended or halted on the Approved
Market for any length of time.

 

“Registration
Filing Date” means the date that is 45 days after date of the final closing of the PPO.

 

“Registration
Statement” means the registration statement that the Company is required to file pursuant to this Agreement to register
the Registrable Securities.

 

“Rule 144”
means Rule 144 promulgated by the Commission under the Securities Act.

 

“Rule 145”
means Rule 145 promulgated by the Commission under the Securities Act.

 

“Rule 415”
means Rule 415 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 purpose and effect as such Rule.

 

“Securities
Act” means the Securities Act of 1933, as amended, or any similar federal statute promulgated in replacement thereof,
and the rules and regulations of the Commission thereunder, all as the same shall be in effect at the time.

 

“SEC Effective
Date” means the date the Registration Statement is declared effective by the Commission.

 

“Trading Day”
means (a) if the Common Stock is listed or quoted on an Approved Market, then any day during which securities are generally eligible
for trading on the Approved Market, or (b) if the Common Stock is not then listed or quoted and traded on an Approved Market, then
any business day.

 

“Units”
has the meaning given it in the recitals of this Agreement.

 

2.          Term.  This
Agreement shall expire two years from the SEC Effective Date, unless terminated sooner hereunder.

 

    	4

    	 

    

 

3.          Registration.

 

(a)          Registration
on Form S-1. Not later than the Registration Filing Date, the Company shall use its best efforts to file with the Commission
a Registration Statement on Form S-1, or other applicable form, relating to the resale by the Holders of all of the Registrable
Securities, and the Company shall use its commercially reasonable efforts to cause such Registration Statement to be declared effective
prior to the Registration Default Date.

 

(b)          Piggyback
Registration. The Holders of any shares of Common Stock removed from the Registration Statement as the result of a cutback
comment from the Commission shall be entitled to Piggyback Registration with respect to such removed shares at any time following
the SEC Effective Date with respect to a registration statement filed by the Company which would permit the inclusion of such shares.
Accordingly, if the Company shall determine to register for sale for cash any of its Common Stock, for its own account or for the
account of others (other than the Holders), other than (i) a registration relating solely to employee benefit plans or securities
issued or issuable to employees, consultants (to the extent the securities owned or to be owned by such consultants could be registered
on Form S-8) or any of their Family Members (including a registration on Form S-8) or (ii) a registration relating solely to a
Securities Act Rule 145 transaction or a registration on Form S-4 in connection with a merger, acquisition, divestiture, reorganization
or similar event, the Company shall promptly give to the Holders written notice thereof (and in no event shall such notice be given
less than 20 calendar days prior to the filing of such registration statement), and shall, subject to Section 3(c), include as
a Piggyback Registration all of the Registrable Securities specified in a written request delivered by the Holder thereof within
10 calendar days after receipt of such written notice from the Company. However, the Company may, without the consent of the Holders,
withdraw such registration statement prior to its becoming effective if the Company or such other stockholders have elected to
abandon the proposal to register the securities proposed to be registered thereby. Notwithstanding the foregoing, Piggyback Registration
will not apply to any shares which can be sold without limitation under Rule 144.

 

(c)          Underwriting.
If a Piggyback Registration is for a registered public offering that is to be made by an underwriting, the Company shall so advise
the Holders of the Registrable Securities eligible for inclusion in such Registration Statement pursuant to Sections 3(b). In that
event, the right of any Holder to Piggyback Registration shall be conditioned upon such Holder’s participation in such underwriting
and the inclusion of such Holder’s Registrable Securities in the underwriting to the extent provided herein. All Holders
proposing to sell any of their Registrable Securities through such underwriting shall (together with the Company and any other
stockholders of the Company selling their securities through such underwriting) enter into an underwriting agreement in customary
form with the underwriter selected for such underwriting by the Company or the selling stockholders, as applicable. Notwithstanding
any other provision of this Section, if the underwriter or the Company determines that marketing factors require a limitation on
the number of shares of Common Stock or the amount of other securities to be underwritten, the underwriter may exclude some or
all Registrable Securities from such registration and underwriting. The Company shall so advise all Holders (except those Holders
who failed to timely elect to include their Registrable Securities through such underwriting or have indicated to the Company their
decision not to do so), and indicate to each such Holder the number of shares of Registrable Securities that may be included in
the registration and underwriting, if any. The number of shares of Registrable Securities to be included in such registration and
underwriting shall be allocated among such Holders as follows:

 

    	5

    	 

    

 

(i)          If
the Piggyback Registration was initiated by the Company, the number of shares that may be included in the registration and underwriting
shall be allocated first to the Company and then, subject to obligations and commitments existing as of the date hereof, to all
selling stockholders, including the Holders, who have requested to sell in the registration on a pro rata basis according to the
number of shares requested to be included therein; and

 

(ii)         If
the Piggyback Registration was initiated by the exercise of demand registration rights by a stockholder or stockholders of the
Company (other than the Holders), then the number of shares that may be included in the registration and underwriting shall be
allocated first to such selling stockholders who exercised such demand and then, subject to obligations and commitments existing
as of the date hereof, to all other selling stockholders, including the Holders, who have requested to sell in the registration
on a pro rata basis according to the number of shares requested to be included therein.

 

No Registrable Securities
excluded from the underwriting by reason of the underwriter’s marketing limitation shall be included in such registration.
If any Holder disapproves of the terms of any such underwriting, such Holder may elect to withdraw such Holder’s Registrable
Securities therefrom by delivering a written notice to the Company and the underwriter. The Registrable Securities so withdrawn
from such underwriting shall also be withdrawn from such registration; provided, however, that, if by the withdrawal of such Registrable
Securities, a greater number of Registrable Securities held by other Holders may be included in such registration (up to the maximum
of any limitation imposed by the underwriters), then the Company shall offer to all Holders who have included Registrable Securities
in the registration the right to include additional Registrable Securities pursuant to the terms and limitations set forth herein
in the same proportion used above in determining the underwriter limitation.

 

    	6

    	 

    

 

(d)          Occurrence
of Registration Event. If a Registration Event occurs, then the Company will make payments in cash to each Holder of Registrable
Securities (a “Qualified Purchaser”), as liquidated damages for the amount of damages to the Qualified Purchaser by
reason thereof, at a rate equal to 0.5% of the purchase price per Unit paid by such Holder in the PPO for the Registrable Securities
then held by each Qualified Purchaser for each full period of 30 days of the Registration Default Period (which shall be pro rated
for any period less than 30 days); provided, however, if a Registration Event occurs (or is continuing) on a date more than one
year after the Effective Date, liquidated damages shall be paid only with respect to that portion of the Qualified Purchaser’s
Registrable Securities that cannot then be immediately resold in reliance on Rule 144. Notwithstanding the foregoing, the maximum
amount of liquidated damages that may be paid to any Qualified Purchaser pursuant to this Section 3(d) shall be an amount equal
to 6% of the purchase price per Unit paid by such Holder in the PPO for the Registrable Securities held by such Qualified Purchaser
at the time of the first occurrence of a Registration Event. Each such payment shall be due and payable within five days after
the end of each full 30-day period of the Registration Default Period until the termination of the Registration Default Period
and within five days after such termination. Such payments shall constitute the Qualified Purchaser’s exclusive remedy for
such events. If the Company fails to pay any partial liquidated damages or refund pursuant to this Section in full within seven
days after the date payable, the Company will pay interest thereon at a rate of 8% per annum (or such lesser maximum amount that
is permitted to be paid by applicable law) to the Holder, accruing daily from the date such partial liquidated damages are due
until such amounts, plus all such interest thereon, are paid in full. The Registration Default Period shall terminate upon (i)
the filing of the Registration Statement in the case of clause (a) of the definition of Registration Event, (ii) the SEC Effective
Date in the case of clause (b) of the definition of Registration Event, (iii) the ability of the Qualified Purchaser to effect
sales pursuant to the Registration Statement in the case of clause (c) of the definition of Registration Event, (iv) the listing
or inclusion and/or trading of the Common Stock on an Approved Market, as the case may be, in the case of clause (d) of the definition
of Registration Event, and (v) in the case of the events described in clauses (b) and (c) of the definition of Registration Event,
the earlier termination of the Registration Default Period. The amounts payable as liquidated damages pursuant to this Section
3(d) shall be payable in lawful money of the United States.

 

(e)          Notwithstanding
the provisions of Section 3(d) above, (a) if the Commission does not declare the Registration Statement effective on or before
the Registration Default Date, or (b) if the Commission allows the Registration Statement to be declared effective at any time
before or after the Registration Default Date, subject to the withdrawal of certain Registrable Securities from the Registration
Statement, and the reason for (a) or (b) is the Commission’s determination that (x) the offering of any of the Registrable
Securities constitutes a primary offering of securities by the Company, (y) Rule 415 may not be relied upon for the registration
of the resale of any or all of the Registrable Securities, and/or (z) a Holder of any Registrable Securities must be named as an
underwriter, the Holders understand and agree that in the case of (b) the Company may reduce, on a pro rata basis, the total number
of Registrable Securities to be registered on behalf of each such Holder, and, in the case of (a) or (b), and that a Holder shall
not be entitled to any liquidated damages with respect to the Registrable Securities not registered for the reason set forth in
(a), or so reduced on a pro rata basis as set forth in (b). In any such pro rata reduction, the number of Registrable Securities
to be registered on such Registration Statement will first be reduced by the Registrable Securities represented by the Warrant
Shares (applied, in the case that some Warrant Shares may be registered, to the Holders on a pro rata basis based on the total
number of unregistered Warrant Shares held by such Holders on a fully diluted basis), and second by Registrable Securities represented
by Conversion Shares (applied, in the case that some Conversion Shares may be registered, to the Holders on a pro rata basis based
on the total number of unregistered Conversion Shares held by such Holders). In addition, any such affected Holder shall be entitled
to Piggyback Registration rights after the Registration Statement is declared effective by the Commission until the earlier of
such time as: (AA) all Registrable Securities have been registered pursuant to an effective Registration Statement, (BB) the Registrable
Securities may be resold without restriction pursuant to Rule 144 of the Securities Act, or (CC) the Holder agrees to be named
as an underwriter in any such registration statement. The Holders acknowledge and agree the provisions of this paragraph may apply
to the Registration Statement and Piggyback Registrations.

 

    	7

    	 

    

 

4.          Registration
Procedures for Registrable Securities.  The Company will keep each Holder reasonably advised as to the filing and
effectiveness of the Registration Statement. At its expense with respect to the Registration Statement, the Company will:

 

(a)          prepare
and file with the Commission with respect to the Registrable Securities, a Registration Statement on Form S-1, or any other form
for which the Company then qualifies or which counsel for the Company shall deem appropriate and which form shall be available
for the sale of the Registrable Securities in accordance with the intended methods of distribution thereof, and use its commercially
reasonable efforts to cause such Registration Statement to become effective and shall remain effective for a period of one year
or for such shorter period ending on the earlier to occur of (i) the date as of which all of the Holders as selling stockholders
thereunder may sell all of the Registrable Securities registered for resale thereon without restriction pursuant to Rule 144 (or
any successor rule thereto) promulgated under the Securities Act or (ii) the date when all of the Registrable Securities registered
thereunder shall have been sold (the “Effectiveness Period”). Thereafter, the Company shall be entitled to withdraw
such Registration Statement and the Investors shall have no further right to offer or sell any of the Registrable Securities registered
for resale thereon pursuant to the respective Registration Statement (or any prospectus relating thereto);

 

(b)          if
the Registration Statement is subject to review by the Commission, promptly respond to all comments and diligently pursue resolution
of any comments to the satisfaction of the Commission;

 

(c)          prepare
and file with the Commission such amendments and supplements to such Registration Statement as may be necessary to keep such Registration
Statement effective during the Effectiveness Period;

 

    	8

    	 

    

 

(d)          furnish,
without charge, to each Holder of Registrable Securities covered by such Registration Statement such number of copies of the prospectus
included in such Registration Statement (including each preliminary prospectus and any other prospectus filed under Rule 424 of
the Securities Act) as such Holders may reasonably request, in conformity with the requirements of the Securities Act, to the extent
required in order for the Holder to meet any prospectus delivery requirement applicable to the disposition of the Registrable Securities
owned by such Holder, but only during the Effectiveness Period;

 

(e)          use
its commercially reasonable efforts to register or qualify such registration under such other applicable securities laws of such
jurisdictions in the United States as any Holder of Registrable Securities covered by such Registration Statement reasonably requests
and as may be necessary for the marketability of the Registrable Securities (such request to be made by the time the applicable
Registration Statement is deemed effective by the Commission) and do any and all other acts and things necessary to enable such
Holder to consummate the disposition in such jurisdictions of the Registrable Securities owned by such Holder; provided, that the
Company shall not be required to (i) qualify generally to do business in any jurisdiction where it would not otherwise be required
to qualify but for this paragraph, (ii) subject itself to taxation in any such jurisdiction, or (iii) consent to general service
of process in any such jurisdiction.

 

(f)          notify
each Holder of Registrable Securities, the disposition of which requires delivery of a prospectus relating thereto under the Securities
Act, of the happening of any event (as promptly as practicable after becoming aware of such event), which comes to the Company’s
attention, that will after the occurrence of such event cause the prospectus included in such Registration Statement, if not amended
or supplemented, to contain an untrue statement of a material fact or an omission to state a material fact required to be stated
therein or necessary to make the statements therein not misleading and the Company shall promptly thereafter prepare and furnish
to such Holder a supplement or amendment to such prospectus (or prepare and file appropriate reports under the Exchange Act) so
that, as thereafter delivered to the purchasers of such Registrable Securities, such prospectus shall not contain an untrue statement
of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein
not misleading, unless suspension of the use of such prospectus otherwise is authorized herein or in the event of a Blackout Period,
in which case no supplement or amendment need be furnished (or Exchange Act filing made) until the termination of such suspension
or Blackout Period;

 

(g)          comply,
and continue to comply during the Effectiveness Period, in all material respects with the Securities Act and the Exchange Act and
with all applicable rules and regulations of the Commission with respect to the disposition of all securities covered by such Registration
Statement;

 

(h)          as
promptly as practicable after becoming aware of such event, notify each Holder of Registrable Securities being offered or sold
pursuant to the Registration Statement of the issuance by the Commission of any stop order or other suspension of effectiveness
of the Registration Statement;

 

    	9

    	 

    

 

(i)          use
its commercially reasonable efforts to cause all the Registrable Securities covered by the Registration Statement to be quoted
on the OTC Bulletin Board or such other principal securities market on which securities of the same class or series issued by the
Company are then listed or traded;

 

(j)          
provide a transfer agent and registrar, which may be a single entity, for the shares of Common Stock at all times;

 

(k)          if
requested by the Holders, cooperate with the Holders to facilitate the timely preparation and delivery of certificates representing
Registrable Securities transferred by such Holders to a transferee pursuant to the Registration Statement, which certificates shall
be free, to the extent permitted by applicable law, of all restrictive legends, and to enable such Registrable Securities to be
in such denominations and registered in such names as any such Holders may request;

 

(l)          during
the Effectiveness Period, refrain from bidding for or purchasing any Common Stock or any right to purchase Common Stock or attempting
to induce any person to purchase any such security or right if such bid, purchase or attempt would in any way limit the right of
the Holders to sell Registrable Securities by reason of the limitations set forth in Regulation M of the Exchange Act; and

 

(m)          take
all other reasonable actions necessary to expedite and facilitate the disposition by the Holders of the Registrable Securities
pursuant to the Registration Statement.

 

5.          Suspension
of Offers and Sales.  Each Holder agrees that, upon receipt of any notice from the Company of the happening of any
event of the kind described in Section 4(f) hereof or of the commencement of a Blackout Period, such Holder shall discontinue the
disposition of Registrable Securities included in the Registration Statement until such Holder’s receipt of the copies of
the supplemented or amended prospectus contemplated by Section 4(f) hereof or notice of the end of the Blackout Period, and, if
so directed by the Company, such Holder shall deliver to the Company (at the Company’s expense) all copies (including, without
limitation, any and all drafts), other than permanent file copies, then in such Holder’s possession, of the prospectus covering
such Registrable Securities current at the time of receipt of such notice.

 

6.          Registration
Expenses.  The Company shall pay all expenses in connection with any registration obligation provided herein, including,
without limitation, all registration, filing, stock exchange fees, printing expenses, all fees and expenses of complying with applicable
securities laws, and the fees and disbursements of counsel for the Company and of its independent accountants; provided, that,
in any registration, each party shall pay for its own underwriting discounts and commissions and transfer taxes. Except as provided
in this Section and Section 9, the Company shall not be responsible for the expenses of any attorney or other advisor employed
by a Holder.

 

    	10

    	 

    

 

7.          Assignment
of Rights.  No Holder may assign its rights under this Agreement to any party without the prior written consent of
the Company; provided, however, that any Holder may assign its rights under this Agreement without such consent to a Permitted
Assignee as long as (a) such transfer or assignment is effected in accordance with applicable securities laws; (b) such transferee
or assignee agrees in writing to become subject to the terms of this Agreement; and (c) such Holder notifies the Company in writing
of such transfer or assignment, stating the name and address of the transferee or assignee and identifying the Registrable Securities
with respect to which such rights are being transferred or assigned.

 

8.          Information
by Holder. Each Holder agrees to furnish to the Company a completed selling securityholder notice and questionnaire in the
form attached to this Agreement as Annex A not later than three (3) Business Days following a request therefor from
the Company. The Company’s obligations in Section 3 with respect to each Holder shall be conditioned upon such Holder’s
furnishing to the Company promptly upon request such information regarding itself, the Registrable Securities held by it, the intended
method of disposition of such securities, and such other information as shall be required in order to comply with any applicable
law or regulation in connection with the registration of such Holder’s Registrable Securities or any qualification or compliance
with respect to such Holder’s Registrable Securities and referred to in this Agreement. The Company’s obligations in
Section 3 with respect to each Holder shall also be conditioned upon such Holder’s disposition of its Registrable Securities
in accordance with applicable law.

 

    	11

    	 

    

 

9.          Indemnification.

 

(a)          In
the event of the offer and sale of Registrable Securities under the Securities Act, the Company shall, and hereby does, indemnify
and hold harmless, to the fullest extent permitted by law, each Holder, its directors, officers, partners, each other person who
participates as an underwriter in the offering or sale of such securities, and each other person, if any, who controls or is under
common control with such Holder or any such underwriter within the meaning of Section 15 of the Securities Act, against any losses,
claims, damages or liabilities, joint or several, and expenses to which the Holder or any such director, officer, partner or underwriter
or controlling person may become subject under the Securities Act, the Exchange Act, or any other federal or state law, insofar
as such losses, claims, damages, liabilities or expenses (or actions or proceedings, whether commenced or threatened, in respect
thereof) arise out of or are based upon any untrue statement of any material fact contained in any registration statement prepared
and filed by the Company under which Registrable Securities were registered under the Securities Act, any preliminary prospectus,
final prospectus or summary prospectus contained therein, or any amendment or supplement thereto, or any omission to state therein
a material fact required to be stated or necessary to make the statements therein in light of the circumstances in which they were
made not misleading, or any violation or alleged violation of the Securities Act, the Exchange Act, any state securities law or
any rule or regulation promulgated under the Securities Act, the Exchange Act or any state securities law by the Company in connection
with this Agreement; and the Company shall reimburse the Holder, and each such director, officer, partner, underwriter and controlling
person for any legal or any other expenses reasonably incurred by them in connection with investigating, defending or settling
any such loss, claim, damage, liability, action or proceeding; provided, that such indemnity agreement found in this Section 9(a)
shall in no event exceed the net proceeds from the PPO received by the Company; and provided further, that the Company shall not
be liable in any such case (i) to the extent that any such loss, claim, damage, liability (or action or proceeding in respect thereof)
or expense arises out of or is based upon (a) an untrue statement in or omission from such registration statement, any such preliminary
prospectus, final prospectus, summary prospectus, amendment or supplement in reliance upon and in conformity with written information
furnished to the Company by the Holder specifically for use in the preparation thereof or (b) any failure of a Holder to distribute
Registrable Securities in accordance with applicable laws, or (ii) if the person asserting any such loss, claim, damage, liability
(or action or proceeding in respect thereof) who purchased the Registrable Securities that are the subject thereof did not receive
a copy of an amended preliminary prospectus or the final prospectus (or the final prospectus as amended or supplemented) at or
prior to the written confirmation of the sale of such Registrable Securities to such person because of the failure of such Holder
or underwriter to so provide such amended preliminary or final prospectus and the untrue statement or omission of a material fact
made in such preliminary prospectus was corrected in the amended preliminary or final prospectus (or the final prospectus as amended
or supplemented). Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of
the Holders, or any such director, officer, partner, underwriter or controlling person and shall survive the transfer of such shares
by the Holder.

 

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(b)          As
a condition to including Registrable Securities in any registration statement filed pursuant to this Agreement, each Holder agrees
to be bound by the terms of this Section 9 and to indemnify and hold harmless, to the fullest extent permitted by law, the Company,
its directors and officers, and each other person, if any, who controls the Company within the meaning of Section 15 of the Securities
Act, against any losses, claims, damages or liabilities, joint or several, to which the Company or any such director or officer
or controlling person may become subject under the Securities Act, the Exchange Act, or any other federal or state law, to the
extent arising out of or based upon: (x) such Holder’s failure to comply with the prospectus delivery requirements of the
Securities Act, (y) any failure of a Holder to distribute Registrable Securities in accordance with applicable laws, or (z) any
untrue or alleged untrue statement of a material fact contained in any registration statement, any prospectus, or any form of prospectus,
or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged
omission of a material fact required to be stated therein or necessary to make the statements therein not misleading (i) to the
extent, but only to the extent, that such untrue statement or omission is contained in any information so furnished in writing
by such Holder to the Company specifically for inclusion in the registration statement or such prospectus or (ii) to the extent
that (1) such untrue statements or omissions are based upon information regarding such Holder furnished in writing to the Company
by such Holder expressly for use therein, or to the extent that such information relates to such Holder or such Holder’s
proposed method of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly
for use in the Registration Statement, such prospectus or such form of prospectus or in any amendment or supplement thereto or
(2) in the case of an occurrence of an event of the type specified in Section 4(f) hereof, the use by such Holder of an outdated
or defective prospectus after the Company has notified such Holder in writing that the prospectus is outdated or defective and
prior to the receipt by such Holder of the advice contemplated in Section 4(f). In no event shall the liability of any selling
Holder hereunder be greater in amount than the dollar amount of the net proceeds received by such Holder upon the sale of the Registrable
Securities giving rise to such indemnification obligation.

 

(c)          Promptly
after receipt by an indemnified party of notice of the commencement of any action or proceeding involving a claim referred to in
this Section (including any governmental action), such indemnified party shall, if a claim in respect thereof is to be made against
an indemnifying party, give written notice to the indemnifying party of the commencement of such action; provided, that the failure
of any indemnified party to give notice as provided herein shall not relieve the indemnifying party of its obligations under this
Section, except to the extent that the indemnifying party is actually prejudiced by such failure to give notice. In case any such
action is brought against an indemnified party, unless in the reasonable judgment of counsel to such indemnified party a conflict
of interest between such indemnified and indemnifying parties may exist or the indemnified party may have defenses not available
to the indemnifying party in respect of such claim, the indemnifying party shall be entitled to participate in and to assume the
defense thereof, with counsel reasonably satisfactory to such indemnified party and, after notice from the indemnifying party to
such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified
party for any legal or other expenses subsequently incurred by the latter in connection with the defense thereof, unless in such
indemnified party’s reasonable judgment a conflict of interest between such indemnified and indemnifying parties arises in
respect of such claim after the assumption of the defenses thereof or the indemnifying party fails to defend such claim in a diligent
manner, other than reasonable costs of investigation. Neither an indemnified nor an indemnifying party shall be liable for any
settlement of any action or proceeding effected without its consent. No indemnifying party shall, without the consent of the indemnified
party, consent to entry of any judgment or enter into any settlement, which does not include as an unconditional term thereof the
giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect of such claim or litigation.
Notwithstanding anything to the contrary set forth herein, and without limiting any of the rights set forth above, in any event
any party shall have the right to retain, at its own expense, counsel with respect to the defense of a claim.

 

    	13

    	 

    

 

(d)          If
an indemnifying party does or is not permitted to assume the defense of an action pursuant to Sections 9(c) or in the case of the
expense reimbursement obligation set forth in Sections 9(a) and (b), the indemnification required by Sections 9(a) and 9(b) shall
be made by periodic payments of the amount thereof during the course of the investigation or defense, as and when bills received
or expenses, losses, damages, or liabilities are incurred.

 

(e)          If
the indemnification provided for in Section 9(a) or 9(b) is held by a court of competent jurisdiction to be unavailable to an indemnified
party with respect to any loss, liability, claim, damage or expense referred to herein, the indemnifying party, in lieu of indemnifying
such indemnified party hereunder, shall (i) contribute to the amount paid or payable by such indemnified party as a result of such
loss, liability, claim, damage or expense as is appropriate to reflect the proportionate relative fault of the indemnifying party
on the one hand and the indemnified party on the other (determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or omission relates to information supplied by the indemnifying party or the indemnified party
and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement
or omission), or (ii) if the allocation provided by clause (i) above is not permitted by applicable law or provides a lesser sum
to the indemnified party than the amount hereinafter calculated, not only the proportionate relative fault of the indemnifying
party and the indemnified party, but also the relative benefits received by the indemnifying party on the one hand and the indemnified
party on the other, as well as any other relevant equitable considerations. No indemnified party guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any indemnifying party who was
not guilty of such fraudulent misrepresentation.

 

(f)          Other
Indemnification. Indemnification similar to that specified in this Section (with appropriate modifications) shall be given
by the Company and each Holder of Registrable Securities with respect to any required registration or other qualification of securities
under any federal or state law or regulation or governmental authority other than the Securities Act.

 

10.         Rule
144.  With a view to making available to the Holders the benefits of Rule 144 and any other rule or regulation of
the Commission that may at any time permit the Holders to sell the Registrable Securities to the public without registration, the
Company agrees: (i) to make and keep public information available as those terms are understood in Rule 144, (ii) to file with
the Commission in a timely manner all reports and other documents required to be filed by an issuer of securities registered under
the Securities Act or the Exchange Act pursuant to Rule 144, (iii) as long as any Holder owns any Registrable Securities, to furnish
in writing upon such Holder’s request a written statement by the Company that it has complied with the reporting requirements
of Rule 144 and of the Securities Act and the Exchange Act, and to furnish to such Holder a copy of the most recent annual or quarterly
report of the Company, and such other reports and documents so filed by the Company as may be reasonably requested in availing
such Holder of any rule or regulation of the Commission permitting the selling of any such Registrable Securities without registration
and (iv) undertake any additional actions commercially reasonably necessary to maintain the availability of the use of Rule 144.

 

    	14

    	 

    

 

11.         Corporate
Existence.  For a period of one (1) year commencing on the date hereof, and so long as any Holder owns any Registrable
Securities, the Company shall not directly or indirectly consummate any merger, reorganization, restructuring, reverse stock split,
consolidation, sale of all or substantially all of the Company’s assets or any similar transaction or related transactions
(each such transaction, an “Organizational Change”), unless, prior to the consummation of an Organizational Change,
the Company obtains the written consent of the Majority Holders.

 

12.         Independent
Nature of Each Purchaser’s Obligations and Rights.  The obligations of each Purchaser under this Agreement
are several and not joint with the obligations of any other Purchaser, and each Purchaser shall not be responsible in any way for
the performance of the obligations of any other Purchaser under this Agreement. Nothing contained herein and no action taken by
any Purchaser pursuant hereto, shall be deemed to constitute such 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 this Agreement. Each Purchaser shall be entitled to independently protect
and enforce its rights, including without limitation the rights arising out of this Agreement, and it shall not be necessary for
any other Purchaser to be joined as an additional party in any proceeding for such purpose; provided, however, that the Majority
Holders shall be able to alter the rights of each Purchaser as provided herein.

 

13.         Other
Registration Rights.  The Company shall not grant any registration rights which would require the Company to file
a registration statement in connection therewith prior to the effectiveness of the Registration Statement without the consent of
the Majority Holders.

 

14.         Miscellaneous.

 

(a)          Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the United States of America and the
State of New York, both substantive and remedial, without regard to New York conflicts of law principles. Any judicial proceeding
brought against either of the parties to this Agreement or any dispute arising out of this Agreement or any matter related hereto
shall be brought in the courts of the State of New York, New York County, or in the United States District Court for the Southern
District of New York and, by its execution and delivery of this Agreement, each party to this Agreement accepts the jurisdiction
of such courts. The foregoing consent to jurisdiction shall not be deemed to confer rights on any person other than the parties
to this Agreement.

 

    	15

    	 

    

 

(b)          Remedies.
In the event of a breach by the Company or by a Holder of any of their respective obligations under this Agreement, each Holder
or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under this Agreement,
including recovery of damages, shall be entitled to specific performance of its rights under this Agreement. The Company and each
Holder agree that monetary damages would not provide adequate compensation for any losses incurred by reason of a breach by it
of any of the provisions of this Agreement and hereby further agrees that, in the event of any action for specific performance
in respect of such breach, it shall not assert or shall waive the defense that a remedy at law would be adequate. Notwithstanding
the foregoing, the sole and exclusive remedy for a Registration Event shall be as set forth in Section 3(d).

 

(c)          Successors
and Assigns. Except as otherwise provided herein, the provisions hereof shall inure to the benefit of, and be binding upon,
the successors, Permitted Assignees, executors and administrators of the parties hereto.

 

(d)          No
Inconsistent Agreements. The Company has not entered, as of the date hereof, and shall not enter, on or after the date of this
Agreement, into any agreement with respect to its securities that would have the effect of impairing the rights granted to the
Holders in this Agreement or otherwise conflicts with the provisions hereof.

 

(e)          Entire
Agreement. This Agreement constitutes the full and entire understanding and agreement between the parties with regard to the
subjects hereof.

 

(f)          Notices,
etc. All notices or other communications which are required or permitted under this Agreement shall be in writing and sufficient
if delivered by hand, by facsimile transmission, by registered or certified mail, postage pre-paid, by electronic mail, or by courier
or overnight carrier, to the persons at the addresses set forth below (or at such other address as may be provided hereunder),
and shall be deemed to have been delivered as of the earlier of the date of actual delivery or, as of the first business day following
the date of transmission, if delivered by facsimile, five days after mailing, if delivered by registered or certified mail, or
the next business day if delivered by electronic mail or by overnight courier:

 

If to the Company to:

 

BOLDFACE Group, Inc.

1309 Pico Blvd., Suite A

Santa Monica, CA 90405 

Attention:  Nicole
Ostoya, CEO and President 

Facsimile:  (310) 421-9274

 

    	16

    	 

    

 

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

 

Gottbetter & Partners, LLP

488 Madison Avenue, 12th
Floor

New York, NY 10022

Attention:  Adam S.
Gottbetter, Esq. 

Facsimile:  (212) 400-6901

 

If to the Purchasers:

 

To each Purchaser at
the address set forth on the signature page hereto

 

or at such other address as any party shall
have furnished to the other parties in writing.

 

(g)          Delays
or Omissions.  No delay or omission to exercise any right, power or remedy accruing to any Holder, upon any breach
or default of the Company under this Agreement, shall impair any such right, power or remedy of such Holder nor shall it be construed
to be a waiver of any such breach or default, or an acquiescence therein, or of any similar breach or default thereunder occurring;
nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter
occurring. Any waiver, permit, consent or approval of any kind or character on the part of any Holder of any breach or default
under this Agreement, or any waiver on the part of any Holder of any provisions or conditions of this Agreement, must be in writing
and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement, or
by law or otherwise afforded to any holder, shall be cumulative and not alternative.

 

(h)          Counterparts.  This
Agreement may be executed in any number of counterparts, each of which shall be enforceable against the parties actually executing
such counterparts, and all of which together shall constitute one instrument. In the event that any signature is delivered by facsimile
transmission, 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 signature page were an original thereof.

 

(i)          Severability.  In
the case any provision of this Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions shall not in any way be affected or impaired thereby.

 

(j)          Amendments.  The
provisions of this Agreement may be amended at any time and from time to time, and particular provisions of this Agreement may
be waived, with and only with an agreement or consent in writing signed by the Company and the Majority Holders. The Purchasers
acknowledge that by the operation of this Section, the Majority Holders may have the right and power to diminish or eliminate all
rights of the Purchasers under this Agreement.

 

[signature
pages follow]

 

    	17

    	 

    

 

This Registration Rights
Agreement is hereby executed as of the date first above written.

 

		BOLDFACE GROUP, INC.
	 	 	 
	 	By:	
	 	Name:	 Nicole Ostoya
	 	Title:	Chief Executive Officer and President

  

[PURCHASERS SIGN BY EXECUTING OMNIBUS
SIGNATURE PAGE 

TO THE SECURITIES PURCHASE AGREEMENT]

 

    	 

    	 

    

 

ANNEX A

 

BOLDFACE GROUP, INC.

 

Selling Securityholder Notice and Questionnaire

 

The undersigned beneficial
owner of securities of BOLDFACE Group, Inc., a Nevada corporation (the “Company”), with respect to which the
undersigned has certain registration rights (“Registrable Securities”), understands that the Company has filed
or intends to file with the Securities and Exchange Commission a registration statement (the “Registration Statement”)
for the registration and resale under Rule 415 of the Securities Act of 1933, as amended, of the Registrable Securities, in accordance
with the terms of a registration rights agreement between the Company and the undersigned, among others (the “Registration
Rights Agreement”). A copy of the Registration Rights Agreement is available from the Company upon request at the address
set forth below. All capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Registration
Rights Agreement.

 

Certain legal consequences
arise from being named as a selling securityholder in the Registration Statement and the related prospectus. Accordingly, holders
and beneficial owners of Registrable Securities are advised to consult their own securities law counsel regarding the consequences
of being named or not being named as a selling securityholder in the Registration Statement and the related prospectus.

 

NOTICE

 

The undersigned beneficial
owner (the “Selling Securityholder”) of Registrable Securities hereby elects to include the Registrable Securities
owned by the Selling Securityholder in the Registration Statement.

 

The undersigned hereby
provides the following information to the Company and represents and warrants that such information is accurate:

 

QUESTIONNAIRE

 

1. Name:

 

		(a)	Full Legal Name of Selling Securityholder:

 

	 	 
	 	 

 

		(b)	Full Legal Name of Holder of Record (if not the same as (a) above) through which Registrable Securities
are held:

 

	 	 
	 	 

 

		(c)	Full Legal Name of Natural Control Person (which means a natural person who directly or indirectly
alone or with others has power to vote or dispose of the securities covered by this questionnaire):

 

	 	 
	 	 

 

    	 

    	 

    

 

2. Address for Notices to Selling
Securityholder:

 

 

 

 

 

 

 

	Telephone: 	 	  Fax:	 

	Email:	 

	Contact Person:  	 

 

  

3. Broker-Dealer Status:

 

		(a)	Are you a broker-dealer?

 

	 	Yes  ̈ 	No  ̈ 

 

		(b)	If “yes” to Section 3(a), did you receive your Registrable Securities as compensation
for investment banking services to the Company?

 

	 	Yes  ̈ 	No  ̈ 

 

		Note:	If “no” to Section 3(b), the Commission’s staff has indicated that you should
be identified as an underwriter in the Registration Statement.

 

		(c)	Are you an affiliate of a broker-dealer?

 

	 	Yes  ̈ 	No  ̈ 

 

		(d)	If you are an affiliate of a broker-dealer, do you certify that you purchased the Registrable Securities
in the ordinary course of business, and at the time of the purchase of the Registrable Securities to be resold, you had no agreements
or understandings, directly or indirectly, with any person to distribute the Registrable Securities?

 

	 	Yes  ̈ 	No  ̈ 

 

		Note:	If “no” to Section 3(d), the Commission’s staff has indicated that you should
be identified as an underwriter in the Registration Statement.

 

    	2

    	 

    

 

4. Beneficial Ownership of Securities of
the Company Owned by the Selling Securityholder:

 

Except as set forth below
in this Item 4, the undersigned is not the beneficial or registered owner of any securities of the Company.

 

		(a)	Type and Amount of securities (including
                                                               any Registrable Securities) beneficially owned1 by the
                                                               Selling Securityholder:

 

	 	 
	 	 
	 	 
	 	 

 

5. Relationships with the Company:

 

Except as set forth below,
neither the undersigned nor (if you are a natural person) any member of your immediate family, nor (if you are not a natural person)
any of your affiliates2, officers, directors or principal equity holders (owners of 5% of more of the equity securities
of the undersigned) has held any position or office or has had any other material relationship with the Company (or its predecessors
or affiliates) during the past three years.

 

		State any exceptions here:

 

	 	 
	 	 
	 	 
	 	 

 

 

1
Beneficially Owned:  A “beneficial owner” of a security includes any
person who, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise has or shares (i) voting
power, including the power to direct the voting of such security, or (ii) investment power,
including the power to dispose of, or direct the disposition of, such security.  In addition, a person is deemed to have “beneficial
ownership” of a security of which such person has the right to acquire beneficial ownership at any time within 60 days,
including, but not limited to, any right to acquire such security: (i) through the exercise of any option, warrant or right,
(ii) through the conversion of any security or (iii) pursuant to the power to revoke, or the automatic termination of,
a trust, discretionary account or similar arrangement.

 

It is possible that a security
may have more than one “beneficial owner,” such as a trust, with two co-trustees sharing voting power, and the settlor
or another third party having investment power, in which case each of the three would be the “beneficial owner” of
the securities in the trust.  The power to vote or direct the voting, or to invest or dispose of, or direct the investment
or disposition of, a security may be indirect and arise from legal, economic, contractual or other rights, and the determination
of beneficial ownership depends upon who ultimately possesses or shares the power to direct the voting or the disposition of the
security.

 

The final determination of the
existence of beneficial ownership depends upon the facts of each case.  You may, if you believe the facts warrant it, disclaim
beneficial ownership of securities that might otherwise be considered “beneficially owned” by you.

 

		2	Affiliate:  An “affiliate” is a company or person that directly,
or indirectly through one or more intermediaries, controls you, or is controlled by you, or is under common control with you.

  

    	3

    	 

    

 

The undersigned agrees
to promptly notify the Company of any inaccuracies or changes in the information provided herein that may occur subsequent to the
date hereof at any time prior to the effectiveness of the Registration Statement or while the Registration Statement remains effective.

 

By signing below, the
undersigned consents to the disclosure of the information contained herein in its answers to Items 1 through 5 and the inclusion
of such information in the Registration Statement and the related prospectus and any amendments or supplements thereto. The undersigned
understands that such information will be relied upon by the Company in connection with the preparation or amendment of the Registration
Statement and the related prospectus and any amendments or supplements thereto.

 

IN WITNESS WHEREOF,
the undersigned, by authority duly given, has caused this Selling Securityholder Notice and Questionnaire to be executed and delivered
either in person or by its duly authorized agent.

 

	BENEFICIAL OWNER (individual)	 	BENEFICIAL OWNER (entity)
	 	 	 
	 	 	 
	Signature	 	Name of Entity
	 	 	 
	 	 	 
	Print Name	 	Signature
	 	 	 
	 	 	Print Name:	 
	Signature (if Joint Tenants or Tenants in Common)	 	 
	 	 	Title:	 
	 	 	 
	Dated:	 	 	 
	 	 	 	 	 	 

PLEASE E-MAIL OR FAX A COPY OF THE COMPLETED
AND EXECUTED QUESTIONNAIRE, AND RETURN THE ORIGINAL BY MAIL, TO:

 

Gottbetter & Partners, LLP

488 Madison Avenue, 12th Floor

New York, NY 10022

Attention: Kathleen L. Rush

Facsimile: (212) 400-6901

E-mail: klr@gottbetter.com

 

PLEASE RETURN THE COMPLETED AND EXECUTED
NOTICE AND QUESTIONNAIRE AT YOUR FIRST OPPORTUNITY.

 

    	4

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