Document:

EXHIBIT 4.2               

 

FORM OF WARRANT

 

THIS WARRANT HAS NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED
OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH ACT OR SATISFACTORY
ASSURANCES TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED WITH RESPECT TO SUCH SALE, OFFER, PLEDGE OR HYPOTHECATION.

 

WARRANT TO PURCHASE COMMON STOCK

 

of

 

THE GRILLED CHEESE TRUCK, INC.

 

Void after _________, 2016

 

	Warrant No. ___	Date of Issuance: _____________, 2013   

 

This certifies that,
for value received, _________________, a ________________________, or its registered assigns (the “Holder”)
is entitled, subject to the terms set forth below, to purchase from The Grilled Cheese Truck, Inc. (the “Company”),
a Nevada corporation, __________________ (_______) (shares of the Common Stock of the Company (the “Warrant Shares”),
upon surrender hereof, at the principal office of the Company referred to below and simultaneous payment therefor in lawful money
of the United States or otherwise as hereinafter provided, at the Exercise Price as set forth in Section 2 below.

 

This warrant (the “Warrant”)
is issued pursuant to the “Subscription Agreement” dated as of ____________, 2013, among the Company and certain “Purchasers”
named therein (the “Subscription Agreement”). The number, character and Exercise Price of such shares of Common
Stock (the “Common Stock”) are subject to adjustment as provided below. The term “Warrant” as used
herein shall include this Warrant and any warrants delivered in substitution or exchange therefor as provided herein. Unless otherwise
separately defined herein, all capitalized terms used in this Warrant shall have the same meaning as is set forth in the Subscription
Agreement.

 

The following terms
shall apply to this Warrant:

 

    	 

    	 

    

 

1.               Term
of Warrant. Subject to the terms and conditions set forth herein, this Warrant shall be exercisable, in whole or in part,
during the term commencing on the Date of Issuance, and ending at ___, 2016.

 

2.               Exercise
Price. The Exercise Price per share of Common Stock at which this Warrant may be exercised shall be equal to $2.00 per
share as adjusted from time to time pursuant to Section 10 below (the “Exercise Price”). If the Exercise Price
is adjusted, then the number of Warrant Shares issuable pursuant to this Warrant shall be appropriately adjusted, using the formula
set forth in Section 10 hereof.

 

3.                Exercise
of Warrant.

 

(a)          The
purchase rights represented by this Warrant are exercisable by the Holder in whole or in part, at any time, or from time to time,
by the surrender of this Warrant and the Notice of Exercise annexed hereto duly completed and executed on behalf of the Holder,
at the office of the Company (or such other office or agency of the Company as it may designate by notice in writing to the Holder
at the address of the Holder appearing on the books of the Company), upon payment in cash or by check acceptable to the Company.

 

(b)          Notwithstanding
anything to the contrary set forth herein, upon exercise of this Warrant, the Holder may, at the Holder’s election exercise
this Warrant by paying to the Company an amount equal to the aggregate Exercise Price of the Warrant Shares being purchased.

 

(c)          This
Warrant shall be deemed to have been exercised immediately prior to the close of business on the date of its surrender for exercise
as provided above, and the person entitled to receive the shares of Common Stock issuable upon such exercise shall be treated for
all purposes as the holder of record of such shares as of the close of business on such date. As promptly as practicable on or
after such date, the Company at its expense shall issue and deliver to the person or persons entitled to receive the same a certificate
or certificates for the number of shares issuable upon such exercise. In the event that this Warrant is exercised in part, the
Company at its expense will execute and deliver a new Warrant of like tenor exercisable for the number of shares for which this
Warrant may then be exercised.

 

4.                No
Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise
of this Warrant. In lieu of any fractional share to which the Holder would otherwise be entitled, the Company shall make a cash
payment equal to the Exercise Price multiplied by such fraction.

 

5.                Replacement
of Warrant. On receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction, or mutilation
of this Warrant and, in the case of loss, theft, or destruction, on delivery of an indemnity agreement reasonably satisfactory
in form and substance to the Company or, in the case of mutilation, on surrender and cancellation of this Warrant, the Company
at its expense shall execute and deliver, in lieu of this Warrant, a new warrant of like tenor and amount.

 

    	 

    	 

    

  

6.                Rights
of Stockholders. Until the Holder exercises this Warrant and the Company issues the Holder Warrant Shares purchasable upon
the exercise hereof, as provided herein, the Holder shall not be entitled to vote or receive dividends or be deemed the holder
of Common Stock or any other securities of the Company that may at any time be issuable on the exercise hereof for any purpose,
nor shall anything contained herein be construed to confer upon the Holder, as such, any of the rights of a shareholder of the
Company or any right to vote for the election of directors or upon any matter submitted to shareholders at any meeting thereof,
or to give or withhold consent or assert dissenter’s rights with respect to any corporate action (whether upon any recapitalization,
issuance of stock, reclassification of stock, change of par value, or change of stock to no par value, consolidation, merger, conveyance,
or otherwise) or to receive notice of meetings, or to receive dividends or subscription rights or otherwise.

 

7.                Transfer
of Warrant.

 

(a)          Warrant
Register. The Company will maintain a register (the “Warrant Register”) containing the names and addresses
of the Holder. The Holder may change his address as shown on the Warrant Register by written notice to the Company requesting such
change. Any notice or written communication required or permitted to be given to the Holder may be delivered or given by mail to
the Holder as shown on the Warrant Register and at the address shown on the Warrant Register. Until this Warrant is transferred
on the Warrant Register, the Company may treat the Holder as shown on the Warrant Register as the absolute owner of this Warrant
for all purposes, notwithstanding any notice to the contrary.

 

(b)          Warrant
Agent. The Company may, by written notice to the Holder, appoint an agent for the purpose of maintaining the Warrant Register
referred to in Section 7(a) above, issuing the Common Stock or other securities then issuable upon the exercise of this Warrant,
exchanging this Warrant, replacing this Warrant, or any or all of the foregoing. Thereafter, any such registration, issuance, exchange,
or replacement, as the case may be, shall be made at the office of such agent.

 

(c)          Transferability
and Non-negotiability of Warrant. This Warrant may not be transferred or assigned in whole or in part without compliance with
the terms of this Warrant and all applicable federal and state securities laws by the transferor and the transferee (including
the delivery of investment representation letters reasonably satisfactory to the Company, if such are requested by the Company).

 

    	 

    	 

    

 

(d)               Compliance
with Securities Laws.

 

(i)          The
Warrant and the Warrant Shares are characterized as “restricted securities” under the 1933 Act inasmuch as they are
being acquired from the Company in a transaction not involving a public offering, and that under the 1933 Act and applicable regulations
thereunder, such securities may be resold without registration under the 1933 Act only in certain limited circumstances. In this
connection, the Holder represents that it is familiar with the Securities and Exchange Commission (“SEC”) Rule
144, as presently in effect, and understands the resale limitations imposed thereby and by the 1933 Act. The Company is under no
obligation to register any of the securities sold hereunder, except as provided in Section 11 hereof. No public market now
exists for this Warrant or the Warrant Shares and that it is uncertain whether a public market will ever exist for this Warrant
or the Warrant Shares.

 

(ii)          This
Warrant and all certificates for the Warrant Shares issued upon exercise hereof shall be stamped or imprinted with a legend in
substantially the following form (in addition to any legend required by state securities laws):

 

“THE SECURITIES REPRESENTED
HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THE SECURITES MAY NOT BE SOLD OR OFFERED FOR SALE
IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER SUCH ACT, (B) A “NO ACTION” LETTER
OF THE SECURITIES AND EXCHANGE COMMISSION WITH RESPECT TO SUCH SALE OR OFFER OR (C) SATISFACTORY ASSURANCES TO THE CORPORATION
THAT REGISTRATION UNDER SUCH ACT IS NOT REQUIRED WITH RESPECT TO SUCH SALE OR OFFER.”

 

Certificates evidencing the Warrant shall
not contain any legend (including the legend set forth in this Section): (i) following a sale of such Warrant pursuant to an effective
registration statement or (ii) following a sale of such Warrant pursuant to Rule 144, 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
SEC). Following such time as restrictive legends are not required to be placed on certificates representing the Warrant, the Company
will, no later than three Trading Days following the delivery by a Holder to the Company or the Company’s transfer agent
of a certificate representing the Warrant containing a restrictive legend, deliver or cause to be delivered to such Holder a certificate
representing such Warrant that is free from the restrictive legend provided for in this Section. The Company shall cause its counsel
to issue a legal opinion to the Company’s transfer agent promptly after the effective date of a registration statement covering
the Warrant if required by the Company’s transfer agent to effect the removal of the legend hereunder. The Company may not
make any notation on its records or give instructions to any transfer agent of the Company that enlarge the restrictions on transfer
set forth in this Section. Certificates for the Warrant subject to legend removal hereunder shall be transmitted by the transfer
agent of the Company to the Holder by crediting the account of the Holder’s prime broker with the Depository Trust Company
system.

    	 

    	 

    

 

(e)               Disposition
of the Holder's Rights.

 

(i)          Transferability.
Subject to compliance with any applicable securities laws, this Warrant and all rights hereunder (including, without limitation,
any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company
or its designated agent, together with a written assignment of this Warrant, substantially in the form attached hereto, duly executed
by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer.
Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name
of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment,
and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly
be cancelled. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant
Shares without having a new Warrant issued.

 

(ii)          New
Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the
Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by
the Holder or its agent or attorney. Subject to compliance with Section 7(e)(i), as to any transfer which may be involved in such
division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants
to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the initial
exercise date and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto.

 

(f)           Any
entity to whom the Holder transfers any right to purchase the Warrant Shares pursuant to this Warrant or any of the Warrant Shares
issuable upon the exercise of such right shall become a “Holder” for purposes of this Section 7.

 

8.                Reservation
of Stock. The Company covenants that during the term this Warrant is exercisable, the Company will reserve from its authorized
and unissued Common Stock a sufficient number of shares to provide for the issuance of Common Stock upon the exercise of this Warrant
and, from time to time, will take all steps necessary to amend its Amended and Restated Certificate of Incorporation (the “Certificate”)
as the same may be amended from time to time to provide sufficient reserves of shares of Common Stock issuable upon exercise of
the Warrant. The Company further covenants that all shares that may be issued upon the exercise of rights represented by this Warrant,
upon exercise of the rights represented by this Warrant and payment of the Exercise Price, all as set forth herein, will be free
from all taxes, liens, and charges in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously
or otherwise specified herein). The Company agrees that its issuance of this Warrant shall constitute full authority to its officers
who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for shares of Common
Stock upon the exercise of this Warrant.

 

    	 

    	 

    

  

9.                Amendments.

 

(a)          Any
term of the Warrants, including this Warrant, may be amended, and any waiver of any term of the Warrants may be granted, with the
written consent of the Company and the holders of Warrants exercisable for at least a majority of the shares of Common Stock for
which all Warrants are exercisable. Any amendment or waiver effected in accordance with this Section 9 shall be binding upon the
Holder and each future holder of the Warrant and the Company, notwithstanding the fact that the Holder or such future holder did
not consent to such amendment or waiver.

 

(b)          No
waivers of or exceptions to any term, condition or provision of the Warrants, in any one or more instances, shall be deemed to
be, or construed as, a further or continuing waiver of any such term, condition or provision.

 

10.              Adjustments.
The Exercise Price and the number of shares purchasable hereunder are subject to adjustment from time to time as follows: 

 

(a)          Reclassification,
etc. If the Company at any time while this Warrant, or any portion thereof, remains outstanding and unexpired shall, by reclassification
of securities or otherwise, change any of the securities as to which purchase rights under this Warrant exist into the same or
a different number of securities of any other class or classes, this Warrant shall thereafter represent the right to acquire such
number and kind of securities as would have been issuable as the result of such change with respect to the securities which were
subject to the purchase rights under this Warrant immediately prior to such reclassification or other change and the Exercise Price
therefor shall be appropriately adjusted, all subject to further adjustment as provided in this Section 10.

 

(b)          Split,
Subdivision or Combination of Warrant Shares. If the Company at any time while this Warrant, or any portion thereof, remains
outstanding and unexpired shall split, subdivide or combine the securities as to which purchase rights under this Warrant exist,
into a different number of securities of the same class, the Exercise Price for such securities shall be proportionately decreased
in the case of a split or subdivision or proportionately increased in the case of a combination.

 

(d)          Certificate
as to Adjustments. Upon the occurrence of each adjustment or readjustment pursuant to this Section 10, the Company at its expense
shall promptly compute such adjustment or readjustment in accordance with the terms hereof and furnish to each holder of this Warrant
a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment
is based. The Company shall, upon the written request, at any time, of any such holder, furnish or cause to be furnished to such
holder a like certificate setting forth: (i) such adjustments and readjustments; (ii) the Exercise Price at the time in effect;
and (iii) the number of shares and the amount, if any, of other property which at the time would be received upon the exercise
of the Warrant.

 

    	 

    	 

    

 

11.              Registration
Rights. Upon exercise of this Warrant, the shares of Common Stock issued as a result of such exercise shall have the same
registration rights and be subject to the same restrictions as set forth in the Registration Rights Agreement.

 

13.              Miscellaneous.

 

(a)          Additional
Undertaking. The Holder hereby agrees to take whatever additional action and execute whatever additional documents the Company
may deem necessary or advisable in order to carry out or effect one or more of the obligations or restrictions imposed on either
the Holder or the shares of Common Stock issued upon exercise hereof pursuant to the provisions of this Warrant.

 

(b)          Governing
Law. This Warrant shall be governed by, and construed in accordance with, the laws of the State of New York without resort
to that State's conflict-of-laws rules.

 

(c)          Successors
and Assigns. The provisions of this Agreement shall inure to the benefit of, and be binding upon, the Company and its successors
and assigns and upon the Holder, the Holder's permitted assigns and the legal representatives, heirs and legatees of the Holder's
estate, whether or not any such person shall have become a party to this Warrant and have agreed in writing to join herein and
be bound by the terms hereof.

 

(d)          Loss,
Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant
Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of
the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate,
if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation,
in lieu of such Warrant or stock certificate.

 

(e)          Jurisdiction.
All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be determined in accordance
with the provisions of the Subscription Agreement.

 

(f)           Notices.
Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered
in accordance with the notice provisions of the Subscription Agreement.

 

    	 

    	 

    

 

(g)          Limitation
of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase
Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder
for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company
or by creditors of the Company.

 

(h)          Remedies.
The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled
to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation
for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert
the defense in any action for specific performance that a remedy at law would be adequate.

 

(Signatures appear on the following page.)

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
The Grilled Cheese Truck, Inc. has caused this Warrant to be executed by its officer thereunto duly authorized.

 

Dated as of ___________, 2013.

 

	 	THE GRILLED CHEESE TRUCK, INC.
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 

    	 

    

 

NOTICE
OF EXERCISE

 

	 	To:	The Grilled Cheese Truck, Inc.

 

(1)          The
undersigned hereby elects to purchase ____________ shares of Common Stock of The Grilled Cheese Truck, Inc., pursuant to the terms
of the attached Warrant.

 

Such exercise is made
pursuant to Section 1(a) and the undersigned herewith makes payment of the Warrant Price for such shares in full in the amount
of $___________.

 

(2)          In
exercising this Warrant, the undersigned hereby confirms and acknowledges that the shares of Common Stock have not been registered
under the Securities Act of 1933, as amended (the “1933 Act”), and are restricted securities under the 1933
Act and that the undersigned will not offer, sell, or otherwise dispose of any such shares of Common Stock except under circumstances
that will not result in a violation of the 1933 Act or any state securities laws.

 

(3)          Please
issue a certificate or certificates representing said shares of Common Stock in the name of the undersigned or in such other name
as is specified below:

 

	 	Name	 	 
	 	 	 	 
	 	Name	 	 

 

(4) Please issue a new Warrant for the
unexercised portion of the attached Warrant in the name of the undersigned or in such other name as is specified below:

 

	 	Name	 	 
	 	 	 	 
	 	Name	 	 

 

	Signature:	 	 
	 	 	 
	Date:EXHIBIT 10.1

 

SUBSCRIPTION AGREEMENT

 

FOR

 

THE GRILLED CHEESE TRUCK, INC.

 

The Grilled Cheese Truck, Inc. c/o Grandview Capital Partners,
Inc.

641 Lexington Avenue

Suite 1526

New York, NY 10022

Ladies and Gentlemen:

 

1.       Subscription.
The undersigned (the “Purchaser”) will purchase the number of units (“Units”),
each Unit consisting of a 10% Convertible Senior Secured Promissory Note (a “Note”) in the principal
amount of $25,000, substantially in the form attached hereto as Exhibit A, and a warrant (the “Warrant”),
substantially in the form attached hereto as Exhibit B, to purchase 12,500 shares of the common stock (the “Common
Stock”) of The Grilled Cheese Truck, Inc., a Nevada corporation (the “Company”), set forth
on the signature page to this Subscription Agreement, at a purchase price of $25,000 per Unit. The Units are being offered (the
“Offering”) by the Company pursuant to the offering terms set forth in the Company’s Confidential
Private Placement Memorandum, dated May 29, 2013, as may be amended and/or supplemented, from time to time (collectively, the “Memorandum”).
The Note and the shares of Common Stock of the Company issuable upon conversion thereof (the “Convertible Shares”)
and the Warrant and shares of Common Stock issuable upon exercise of the Warrant (the “Warrant Shares”)
are collectively referred to herein as the “Securities.”

 

The
Units are being offered on a “best efforts” basis of up to $2,000,000 (the “Offering Amount”).
The Units may be sold at one or more closings of the Offering (each a “Closing”, and, collectively, the
“Closings”), at any time during the Offering Period (defined hereafter). The minimum investment amount
that may be purchased by a Purchaser is one Unit, or $25,000 (the “Purchaser Minimum Investment”); provided
however, the Company, in its sole discretion, may accept a Purchaser subscription for an amount less than the Purchaser
Minimum Investment. The subscription for the Units will be made in accordance with and subject to the terms and conditions of this
Subscription Agreement and the Memorandum. The Company and the Purchaser each agree that the Offering is being made subject to
the Engagement Letter, dated May 29, 2013 (the “Engagement Letter”), among the Company and Grandview
Capital Partners, Inc., and Blackwall Capital Markets, Inc. (the
“Placement Agent”). 

 

All subscription funds
will be held in a non-interest bearing escrow account in the Company’s name at Cross River Bank, 885 Teaneck Road, Teaneck,
New Jersey 07666, or with such other escrow agent as may be appointed by the Placement Agent and Company (the “Escrow
Account”).

 

    	 

    	 

    

 

The Units will be offered
through June 7, 2013 commencing on the date of the Memorandum (the “Offering Period”) provided, the Company
may extend the Offering Period up to one (1) additional fourteen (14) day period in its sole discretion without notice to investors.
In the event that (i) subscriptions for the Offering are rejected in whole (at the sole discretion of the Company), or (ii) the
Offering is otherwise terminated by the Company, then the Escrow Agent will refund all subscription funds held in the Escrow Account
to the persons who submitted such funds, without interest, penalty or deduction. If a subscription is rejected in part (at the
sole discretion of the Company) and the Company accepts the portion not so rejected, the funds for the rejected portion of such
subscription will be returned without interest, penalty, expense or deduction.

 

The Company reserves
the right (but is not obligated) to have its employees, agents, officers, directors and affiliates purchase Units in the Offering
and all such purchases will be counted towards the Offering Amount.

 

The terms of the Offering
are more completely described in the Memorandum and such terms are incorporated herein in their entirety. Certain capitalized terms
used but not otherwise defined herein will have the respective meanings provided in the Memorandum.

 

2.           Payment.
The Purchaser encloses herewith a check payable to, or will immediately make a wire transfer payment to, “Cross River
Bank, as Escrow Agent for The Grilled Cheese Truck, Inc.,” in the full amount of the purchase price of the Units being
subscribed for. Together with the check for, or wire transfer of, the full purchase price, the Purchaser is delivering a completed
and executed Signature Page to this Subscription Agreement along with a completed Accredited Investor Certification, and a completed
Investor Profile which are annexed hereto. By executing this Subscription Agreement, you will be deemed to have agreed, accepted
and subscribed for each of the Transaction Documents attached to the Memorandum, including the 10% Convertible Senior Secured Note
and Warrant, and will be bound by each of their terms.

 

3.           Deposit
of Funds. All payments made as provided in Section 2 hereof will be deposited by the Purchaser as soon as practicable
with Cross River Bank, as escrow agent (the “Escrow Agent”), or such other escrow agent appointed
by the Company, in a non-interest bearing escrow account (the “Escrow Account”). In the event that the
Company does not effect a Closing during the Offering Period, the Escrow Agent will refund all subscription funds, without deduction
and/or interest accrued thereon, and will return the subscription documents to each Purchaser. If the Company rejects a subscription,
either in whole or in part (at the sole discretion of the Company), the rejected subscription funds or the rejected portion thereof
will be returned promptly to such Purchaser without interest, penalty, expense or deduction.

 

    	 

    	 

    

 

4.           Purchase
and Sale of Note.

 

4.1     Sale
and Issuance of Note. Subject to the terms and conditions of this Subscription Agreement, each Purchaser agrees to purchase
at the Closing (as defined below) and the Company agrees to sell and issue to each Purchaser a Note in the principal amount set
forth opposite such Purchaser’s name on the signature page hereto. The purchase price of each Note shall be equal to 100%
of the principal amount of such Note. The Company’s agreements with each of the Purchasers are separate agreements, and the
sales of the Notes to each of the Purchasers are separate sales.

  

4.2     Closing;
Delivery.

 

The purchase
and sale of the Notes shall take place at such time and place as the Company and the Purchasers mutually agree upon, orally
or in writing. In the event there is more than one closing, the term “Closing” shall apply to each such closing (including
the initial closing), unless otherwise specified herein.

 

At each Closing, the
Company shall deliver to each Purchaser the Note to be purchased by such Purchaser against (1) payment of the purchase price
therefore by check payable to the Company or by wire transfer to a bank designated by the Company and (2) delivery of counterpart
signature pages to this Subscription Agreement and the Note.

 

Until the earlier of
such time as the aggregate amount of face principal indebtedness evidenced by the Notes equals a total of $2,000,000 or June 7,
2013, provided, the Company may extend such date up to one (1) additional fourteen (14) day period in its sole discretion without
notice to investors, the Company may sell additional Notes to such persons or entities as determined by the Company, or to any
Purchaser who desires to acquire additional Notes. All such sales shall be made on the terms and conditions set forth in this Subscription
Agreement. For purposes of this Subscription Agreement, and all other agreements contemplated hereby, any additional purchaser
so acquiring Notes shall be deemed to be a “Purchaser” for purposes of this Subscription Agreement, and any notes so
acquired by such additional purchaser shall be deemed to be “Notes”.

 

At each Closing, the
Parties shall execute and deliver a Registration Rights Agreement, in the form attached hereto as Exhibit C (the “Registration
Rights Agreement”), pursuant to which the Company has agreed to provide certain registration rights with respect to the
Registrable Securities (as defined in the Registration Rights Agreement), under the Securities Act and the rules and regulations
promulgated thereunder, and applicable state securities laws.

 

4.3     Conversion.
Each Purchaser understands and agrees that upon the earlier of: (i) the Purchaser’s election following the date upon which
the Company’s registration statement is declared effective by the Securities and Exchange Commission (“SEC”);
or (ii) thirty-six (36) months from the Issue Date, the Principal Amount shall be mandatorily converted into shares of common stock
(the “Common Stock”) of the Company. The shares of Common Stock issuable upon conversion of the Notes shall
equal: (i) the Principal Amount of the Note and the accrued interest thereon (assuming the Company elects to pay the interest in
shares of Common Stock) divided by (ii) $1.00.

 

    	 

    	 

    

 

5.           Acceptance
of Subscription. The Purchaser understands and agrees that the Company, in its sole discretion, reserves the right to accept
this or any other subscription for the Units, in whole or in part, notwithstanding prior receipt by the Purchaser of notice of
acceptance of this or any other subscription. The Company will have no obligation hereunder until the Company executes and delivers
to the Purchaser an executed copy of the Subscription Agreement. If Purchaser’s subscription is rejected in whole (at the
sole discretion of the Company) or the Offering is terminated, all funds received from the Purchaser will be returned without interest,
penalty, expense or deduction, and this Subscription Agreement will thereafter be of no further force or effect. If Purchaser’s
subscription is rejected in part (at the sole discretion of the Company) and the Company accepts the portion not so rejected, the
funds for the rejected portion of such subscription will be returned without interest, penalty, expense or deduction, and this
Subscription Agreement will continue in full force and effect to the extent such subscription was accepted.

 

6.           Representations
and Warranties of the Purchaser. The Purchaser hereby acknowledges, represents, warrants, and agrees as follows:

 

(a)          Such
Purchaser has full power and authority to enter into this Subscription Agreement. This Subscription Agreement, when executed and
delivered by the Purchaser, will constitute a valid and legally binding obligation of the Purchaser, enforceable in accordance
with its terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, and
any other laws of general application affecting enforcement of creditors’ rights generally, and as limited by laws relating
to the availability of a specific performance, injunctive relief, or other equitable remedies.

 

(b)          None
of the Securities are registered under the Securities Act of 1933, as amended (the “Securities Act”),
or any state securities laws. The Purchaser understands that the offering and sale of the Securities is intended to be exempt from
registration under the Securities Act, by virtue of Section 4(2) thereof and the provisions of Regulation D promulgated thereunder,
based, in part, upon the representations, warranties and agreements of the Purchaser contained in this Subscription Agreement and
the Purchaser Questionnaire included as part of this Subscription Agreement;

 

(c)          The
Purchaser and the Purchaser’s attorney, accountant, purchaser representative and/or tax advisor (collectively, “Advisors”),
have received and have carefully reviewed the Memorandum, this Subscription Agreement (including the Purchaser Questionnaire),
the Warrant and the Note, the Registration Rights Agreement (collectively, the “Transaction Documents”)
and all other documents requested by the Purchaser or its Advisors, and understand the information contained therein, prior to
the execution of this Subscription Agreement;

 

    	 

    	 

    

 

(d)          The
Purchaser understands that neither the Securities and Exchange Commission (the “Commission”) nor any
state securities commission has approved or disapproved of the Securities or passed upon or endorsed the merits of the Offering
or confirmed the accuracy or determined the adequacy of the Memorandum. The Memorandum has not been reviewed by any Federal, state
or other regulatory authority;

 

(e)          All
documents, records, and books pertaining to the investment in the Securities including, but not limited to, all information regarding
the Company and the Securities, requested by the Purchaser have been made available for inspection and reviewed by the Purchaser
and its Advisors, if any;

 

(f)          The
Purchaser and its Advisors, have had a reasonable opportunity to ask questions of and receive answers from the Company’s
officers and any other persons authorized by the Company to answer such questions, concerning, among other related matters, the
Offering, the Securities, the Transaction Documents and the business, financial condition, results of operations and prospects
of the Company and all such questions have been answered by the Company to the full satisfaction of the Purchaser and its Advisors;

 

(g)          The
Purchaser has not been furnished with any oral representation or oral information in connection with the offering of the Securities
that is not contained in, or is in any way contrary to or inconsistent with, statements made in this Subscription Agreement;

 

(h)          The
Purchaser is unaware of, is in no way relying on, and did not become aware of the offering of the Securities through or as a result
of, any form of general solicitation or general advertising including, without limitation, any article, notice, advertisement or
other communication published in any newspaper, magazine or similar media or broadcast over television, radio or over the Internet,
in connection with the offering and sale of the Securities and is not subscribing for the Securities and did not become aware of
the Offering through or as a result of any seminar or meeting to which the Purchaser was invited by, or any solicitation of a subscription
by, a person not previously known to the Purchaser in connection with investments in securities generally;

 

(i)          The
Purchaser has taken no action which would give rise to any claim by any person for brokerage commissions, finders’ fees or
the like relating to this Subscription Agreement or the transactions contemplated hereby (other than fees to be paid by the Company
to the Placement Agent, as described in the Memorandum);

 

(j)          The
Purchaser, either alone or together with its Advisors has such knowledge and experience in financial, tax, and business matters,
and, in particular, investments in securities, so as to enable it to utilize the information made available to it in connection
with the Offering to evaluate the merits and risks of an investment in the Securities and the Company and to make an informed investment
decision with respect thereto;

 

    	 

    	 

    

 

(k)          The
Purchaser is not relying on the Company, Placement Agent or any of their respective employees or agents with respect to the legal,
tax, economic and related considerations of an investment in any of the Securities and the Purchaser has relied on the advice of,
or has consulted with, only its own Advisors;

 

(l)          This
Subscription Agreement is made with the Purchaser in reliance upon the Purchaser’s representation to the Company, which by
the Purchaser’s execution of this Subscription Agreement, the Purchaser hereby confirms, that the Securities to be acquired
by the Purchaser will be acquired for investment for the Purchaser’s own account, not as a nominee or agent, and not with
a view to the resale or distribution of any part thereof, and that the Purchaser has no present intention of selling, granting
any participation in, or otherwise distributing the same. By executing this Subscription Agreement, the Purchaser further represents
that the Purchaser does not presently have any contract, undertaking, agreement or arrangement with any person to sell, transfer
or grant participations to such person or to any third person, with respect to any of the Securities. The Purchaser has not been
formed for the specific purpose of acquiring any of the Securities.

 

(m)          The
Purchaser understands and agrees that purchase of the Securities is a high risk investment and the Purchaser is able to afford
an investment in a speculative venture having the risks and objectives of the Company, including a risk of total loss of such
investment. The Purchaser must bear the substantial economic risks of the investment in the Securities indefinitely because
none of the Securities may be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act
and applicable state securities laws or an exemption from such registration is available. Legends will be placed on the certificates
representing the Notes and Warrants and the shares of Common Stock underlying conversion of the Notes and the exercise of the Warrants
to the effect that such securities have not been registered under the Securities Act or applicable state securities laws and appropriate
notations thereof will be made in the Company’s books. The Purchaser understands that there is no public market for the Notes
and Warrants to be issued in the Offering and the Company has no intention of seeking an active trading market for these Securities;

 

(n)          The
Purchaser has adequate means of providing for such Purchaser’s current financial needs and foreseeable contingencies and
has no need for liquidity from its investment in the Securities for an indefinite period of time;

 

(o)          The
Purchaser is aware that an investment in the Securities involves a number of very significant risks and has carefully read and
considered the matters set forth in the Memorandum and, in particular, the matters under the caption “Risk Factors”
therein and understands any of such risks may materially adversely affect the Company’s operations and future prospects;

 

    	 

    	 

    

 

(p)          The
Purchaser is an “accredited investor” within the meaning of Regulation D, Rule 501(a), promulgated by the Commission
under the Securities Act and has truthfully and accurately completed the Purchaser Questionnaire included as part of this Subscription
Agreement and will submit to the Company such further assurances of such status as may be reasonably requested by the Company;

 

(q)          The
Purchaser: (i) if a natural person, represents that the Purchaser has reached the age of 21 and has full power and authority to
execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions
hereof and thereof; (ii) if a corporation, partnership, or limited liability company, or association, joint stock company, trust,
unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the
Securities, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization,
the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its
charter or other organizational documents, such entity has full power and authority to execute and deliver this Subscription Agreement
and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the
Securities, the execution and delivery of this Subscription Agreement has been duly authorized by all necessary action, this Subscription
Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity;
or (iii) if executing this Subscription Agreement in a representative or fiduciary capacity, represents that it has full power
and authority to execute and deliver this Subscription Agreement in such capacity and on behalf of the subscribing individual,
ward, partnership, trust, estate, corporation, or limited liability company or partnership, or other entity for whom the Purchaser
is executing this Subscription Agreement, and such individual, partnership, ward, trust, estate, corporation, or limited liability
company or partnership, or other entity has full right and power to perform pursuant to this Subscription Agreement and make an
investment in the Company, and represents that this Subscription Agreement constitutes a legal, valid and binding obligation of
such entity. The execution and delivery of this Subscription Agreement will not violate or be in conflict with any order, judgment,
injunction, agreement or controlling document to which the Purchaser is a party or by which it is bound;

 

(r)          If
a Purchaser is not a United States person (as defined by Rule 902(k) under the Securities Act), such Purchaser hereby represents
that it has satisfied itself as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe
for the Securities or any use of this Subscription Agreement, including (i) the legal requirements within its jurisdiction for
the purchase of the Securities, (ii) any foreign exchange restrictions applicable to such purchase, (iii) any governmental or other
consents that may need to be obtained and (iv) the income tax and other tax consequences, if any, that may be relevant to the purchase,
holding, redemption, sale or transfer of the Securities. Such Purchaser’s subscription and payment for, and his or her continued
beneficial ownership of the Securities, will not violate any applicable securities or other laws of Purchaser’s jurisdiction.
Such Purchaser also hereby represents that such Purchaser is not a “10-percent shareholder” as defined in Section 871(h)
of the Internal Revenue Code of 1986, as amended.

 

    	 

    	 

    

 

(s)          The
Purchaser and its Advisors, if any, have had the opportunity to obtain any additional information, to the extent the Company had
such information in its possession or could acquire it without unreasonable effort or expense, necessary to verify the accuracy
of the information contained in the Memorandum including, but not limited to, the terms and conditions of the Securities as set
forth therein and the Transaction Documents and all other related documents, received or reviewed in connection with the purchase
of the Securities and have had the opportunity to have representatives of the Company provide them with such additional information
regarding the terms and conditions of this particular investment and the financial condition, results of operations, business and
prospects of the Company deemed relevant by the Purchaser or its Advisors, if any, and all such requested information, to the extent
the Company had such information in its possession or could acquire it without unreasonable effort or expense, has been provided
by the Company in writing to the full satisfaction of the Purchaser and its Advisors, if any;

 

(t)          Any
information which the Purchaser has heretofore furnished or is furnishing herewith to the Company is complete and accurate and
may be relied upon by the Company in determining the availability of an exemption from registration under Federal and state securities
laws in connection with the Offering of the Securities as described in the Memorandum;

 

(u)          The
Purchaser has significant prior investment experience, including investment in non-listed and non-registered securities. The Purchaser
has a sufficient net worth to sustain a loss of its entire investment in the Company in the event such a loss should occur. The
Purchaser’s overall commitment to investments which are not readily marketable is not excessive in view of the Purchaser’s
net worth and financial circumstances and the purchase of the Securities will not cause such commitment to become excessive. This
investment is a suitable one for the Purchaser;

 

(v)         The
Purchaser is satisfied that it has received adequate information with respect to all matters which it or its Advisors, if any,
consider material to its decision to make this investment;

 

(w)          The
Purchaser acknowledges that any and all estimates or forward-looking statements or projections included in the Memorandum were
prepared by the Company in good faith, but that the attainment of any such projections, estimates or forward-looking statements
cannot be guaranteed, will not be updated by the Company and should not be relied upon;

 

(x)          No
oral or written representations have been made, or oral or written information furnished, to the Purchaser or its Advisors, if
any, in connection with the offering of the Securities which are in any way inconsistent with the information contained in the
Memorandum;

 

    	 

    	 

    

 

(y)          Within
five (5) days after receipt of a request from the Company, the Purchaser will provide such information and deliver such documents
as may reasonably be necessary to comply with any and all laws and ordinances to which the Company is subject;

 

(z)          The
Purchaser acknowledges that the Company has not and will not present the Purchaser with audited financial statements for the year
ended December 31, 2012.

 

(aa)         The
Purchaser acknowledges that the Company is presently not current with its required periodic filings with the Commission, including
but not limited to the Company’s Annual Report on Form 10-K and respective audited financial statements for the fiscal year
ended December 31, 2012 or the Company’s Quarterly Report on Form 10-Q.

 

(bb)         The
Purchaser acknowledges that the Company has retained new auditors to audit the financial statements for the fiscal year ended December
31, 2012 and the audit for the year ended December 31, 2012 has not been completed.

 

(cc)         The
Purchaser acknowledges that the Company is unable to file a registration statement until the audit for the fiscal year ended December
31, 2012 and interim financial statements has been completed, and the Company is unable to list or trade any of its securities
on an exchange or quotation system until the Company is current on its required Commission filings.

 

6.           Transfer
Restrictions; Legends. The Purchaser understands that (i) the Securities have not been registered under the Securities
Act; (ii) the Securities are being offered and sold pursuant to an exemption from registration, based in part upon the Company’s
reliance upon the statements and representations made by the Purchasers in this Subscription Agreement, and that the Securities
must be held by the Purchaser indefinitely, and that the Purchaser must, therefore, bear the economic risk of such investment indefinitely,
unless a subsequent disposition thereof is registered under the Securities Act or is exempt from such registration; (iii)
each Certificate representing the Securities will be endorsed with a legend substantially in the following form until the earlier
of (1) such date as the Securities have been registered for resale by the Purchaser or (2) the date the Securities are eligible
for sale under Rule 144 under the Securities Act or any successor rule (“Rule 144”):

 

“THE SECURITIES
REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR
UNDER THE SECURITIES LAWS OF ANY STATES. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT
BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION
OR EXEMPTION THEREFROM. UNLESS SOLD PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, THE ISSUER OF THESE
SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER
OR RESALE IS IN COMPLIANCE WITH THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS.”

 

    	 

    	 

    

 

Any legend required
by the Blue Sky laws of any state to the extent such laws are applicable to the shares represented by the certificate so legended.
The Company acknowledges and agrees that a Purchaser may from time to time pledge, and/or grant a security interest in some or
all of the Securities pursuant to a bona fide margin agreement in connection with a bona fide margin account and, if required under
the terms of such agreement or account, the Purchaser may transfer pledged or secured Securities to the pledgees or secured parties.
Such a pledge or transfer shall not be subject to approval or consent of the Company and no legal opinion of legal counsel to the
pledgee, secured party or pledgor shall be required in connection with the pledge, but such legal opinion may be required in connection
with a subsequent transfer following default by the Purchaser transferee of the pledge. 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 the preparation
and filing of any required prospectus supplement under Rule 424(b)(3) of the Securities Act or other applicable provision of the
Securities Act to appropriately amend the list of Selling Stockholders thereunder.

 

Certificates evidencing
the Securities shall not contain any legend (including the legend set forth in this Section): (i) following a sale of such Securities
pursuant to an effective registration statement (including the Registration Statement), or (ii) following a sale of such Securities
pursuant to Rule 144, 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). Following such time as restrictive legends are not required
to be placed on certificates representing the Securities, the Company will, no later than three Trading Days following the delivery
by a Purchaser to the Company or the Company’s transfer agent of a certificate representing the Securities containing a restrictive
legend, deliver or cause to be delivered to such Purchaser a certificate representing such Securities that is free from the restrictive
legend provided for in this Section. The Company may not make any notation on its records or give instructions to any transfer
agent of the Company that enlarge the restrictions on transfer set forth in this Section. Certificates for the Securities subject
to legend removal hereunder shall be transmitted by the transfer agent of the Company to the Purchasers by crediting the account
of the Purchaser’s prime broker with the Depository Trust Company system.

 

    	 

    	 

    

 

Each Purchaser, severally
and not jointly with the other Purchasers, agrees that the removal of the restrictive legend from certificates representing Securities
as set forth in this Section is predicated upon the Company’s reliance that the Purchaser will sell any Securities pursuant
to either the registration requirements of the Securities Act, including any applicable prospectus delivery requirements, or an
exemption therefrom.

 

The Purchaser acknowledges
that the Securities have not been recommended by any Federal or state securities commission or regulatory authority. In making
an investment decision, investors must rely on their own examination of Company and the terms of the Offering, including the merits
and risks involved. Furthermore, the foregoing authorities have not confirmed the accuracy or determined the adequacy of this Subscription
Agreement. Any representation to the contrary is a criminal offense. The Securities are subject to restrictions on transferability
and resale and may not be transferred or resold except as permitted under the Securities Act, and the applicable state securities
laws, pursuant to registration or exemption therefrom. Investors should be aware that they will be required to bear the financial
risks of this investment for an indefinite period of time;

 

(For ERISA plans
only) The fiduciary of the ERISA plan (the “Plan”) represents that such fiduciary has been informed
of and understands the Company’s investment objectives, policies and strategies, and that the decision to invest “plan
assets” (as such term is defined in ERISA) in the Company is consistent with the provisions of ERISA that require diversification
of plan assets and impose other fiduciary responsibilities. The Purchaser or Plan fiduciary (a) is responsible for the decision
to invest in the Company; (b) is independent of the Company and any of its affiliates; (c) is qualified to make such investment
decision; and (d) in making such decision, the Purchaser or Plan fiduciary has not relied on any advice or recommendation of the
Company or any of its affiliates; and

 

The Purchaser has read
in its entirety the Memorandum and all exhibits thereto, including, but not limited to, all information relating to the Company,
and the Securities, and understands fully to its full satisfaction all information included in the Memorandum including, but not
limited to, the Section entitled “Risk Factors”.

 

7.           Representations
and Warranties of the Company.

 

(a)         The
Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada and has all
requisite corporate power and authority to carry on its business as now conducted and as proposed to be conducted. The Company
is duly qualified to transact business and is in good standing in each jurisdiction in which the failure so to qualify would have
a material adverse effect on its business or properties.

 

(b)         This
Subscription Agreement and the Securities have been duly authorized by the Board of Directors of the Company. This Subscription
Agreement and the Securities, when executed and delivered by the Company, shall constitute valid and legally binding obligations
of the Company, enforceable against the Company in accordance with their respective terms except as limited by applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance, and other laws of general application affecting enforcement of creditors’
rights generally, and as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable
remedies.

    	 

    	 

    

 

(c)         The
Company is not in violation of or default on any term of its Certificate of Incorporation, as amended and/or restated from time
to time (the “Certificate of Incorporation”), as each is in effect on the date hereof, or any provision of any
mortgage, indenture, contract, agreement, instrument, judgment, decree, order, rule or regulation or other restriction to which
the Company is a party or by which it is bound, the breach of or default under which would have a material adverse effect on the
condition, financial or otherwise, business or operations of the Company or, to the Company’s knowledge, of any provision
of any federal, state or other applicable statute, rule or regulation applicable to the Company and a violation of which would
have a material adverse effect on the condition, financial or otherwise, business or operations of the Company.

 

(d)         The
execution, delivery and performance by the Company of this Subscription Agreement and the Notes, the compliance herewith and therewith,
the issuance by the Company of the Securities and the consummation of the transactions contemplated hereby will not result in any
violation of and will not conflict with, or result in a breach of any of the terms of, or constitute a default under, (i) any provision
of any federal, state or other applicable statute, rule or regulation applicable to the Company and a violation of which would
have a material adverse effect on the condition, financial or otherwise, business or operations of the Company, (ii) the Certificate
of Incorporation in effect on the date hereof, or (iii) any provision of any mortgage, indenture, contract, agreement, instrument,
judgment, decree, order, rule or regulation or other restriction to which the Company is a party or by which it is bound, the breach
of or default under which would have a material adverse effect on the condition, financial or otherwise, business or operations
of the Company, or result in the creation of any mortgage, pledge, lien, encumbrance or charge upon any of the properties or assets
of the Company pursuant to any such term.

 

(e)         The
authorized capital stock of the Company currently consists of 100,000,000 shares of Common Stock and 10,000,000 shares of Preferred
Stock of which 1,000,000 is designated as Series A Preferred Shares. All issued and outstanding shares have been duly authorized
and validly issued and are fully paid and nonassessable. Except as disclosed in the Memorandum, and except for the Notes, there
are no other outstanding rights, options, warrants, preemptive rights, rights of first refusal, or similar rights for the purchase
or acquisition from the Company of any securities of the Company nor are there any commitments to issue or execute any such rights,
options, warrants, preemptive rights or rights of first refusal. Except as otherwise provided in the Company’s Certificate
of Incorporation, there are no outstanding rights or obligations of the Company to repurchase or redeem any of its securities.
All outstanding securities have been issued in compliance with state and federal securities laws.

 

    	 

    	 

    

 

(f)          There
is no action, suit, proceeding, or investigation (including without limitation any suit, proceeding, or investigation involving
the prior employment of any of the Company’s employees, their use in connection with the Company’s business of any
information or techniques allegedly proprietary to any of their former employers, or their obligations under any agreements with
prior employers) pending or, to the best of the Company’s knowledge, currently threatened before any court, administrative
agency, or other governmental body. The Company is not a party or subject to, and none of its assets is bound by, the provisions
of any order, writ, injunction, judgment, or decree of any court or government agency or instrumentality. There is no action, suit,
or proceeding by the Company currently pending or that the Company intends to initiate.

 

(g)         The
Company has fully provided each Purchaser with all the information that such Purchaser has requested for deciding whether to purchase
the Securities and all material information that the Company believes is reasonably necessary to enable a reasonable Purchaser
to make such decision. Neither this Subscription Agreement, nor any other agreements, statements or certificates made or delivered
to Purchaser in connection herewith or therewith contains any untrue statement of a material fact or, when taken together, omits
to state a material fact necessary to make the statements herein or therein, in light of the circumstances under which they were
made, not misleading.

 

8.         Indemnification.
The Purchaser agrees to indemnify and hold harmless the Company, the Placement Agent and each of their respective officers, directors,
managers, employees, agents, attorneys, control persons and affiliates from and against all losses, liabilities, claims, damages,
costs, fees and expenses whatsoever (including, but not limited to, any and all expenses incurred in investigating, preparing or
defending against any litigation commenced or threatened) based upon or arising out of any actual or alleged false acknowledgment,
representation or warranty, or misrepresentation or omission to state a material fact, or breach by the Purchaser of any covenant
or agreement made by the Purchaser herein or in any other document delivered in connection with this Subscription Agreement.

 

9.          Irrevocability;
Binding Effect. The Purchaser hereby acknowledges and agrees that the subscription hereunder is irrevocable by the Purchaser,
except as required by applicable law, and that this Subscription Agreement will survive the death or disability of the Purchaser
and will be binding upon and inure to the benefit of the parties and their heirs, executors, administrators, successors, legal
representatives, and permitted assigns. If the Purchaser is more than one person, the obligations of the Purchaser hereunder will
be joint and several and the agreements, representations, warranties and acknowledgments herein will be deemed to be made by and
be binding upon each such person and such person’s heirs, executors, administrators, successors, legal representatives and
permitted assigns.

 

    	 

    	 

    

 

10.                   Closing Conditions.

 

(a)               Conditions
of the Purchasers’ Obligations at Closing. The obligations of each Purchaser to the Company under this Subscription Agreement
are subject to the fulfillment, on or before the Closing, of each of the following conditions, unless otherwise waived:

 

(i)          Representations
and Warranties. The representations and warranties of the Company contained in Section 5 shall be true on and as of the
Closing with the same effect as though such representations and warranties had been made on and as of the date of the Closing.

 

(ii)         Qualifications.
All authorizations, approvals or permits, if any, of any governmental authority or regulatory body of the United States or of any
state that are required in connection with the lawful issuance and sale of the Securities pursuant to this Subscription Agreement
shall be obtained and effective as of the Closing.

 

(b)               Conditions
of the Company’s Obligations at Closing. The obligations of the Company to each Purchaser under this Subscription Agreement
are subject to the fulfillment, on or before the Closing, of each of the following conditions, unless otherwise waived:

 

(i)          Representations
and Warranties. The representations and warranties of each Purchaser contained in Section 6 shall be true on and as of
the Closing with the same effect as though such representations and warranties had been made on and as of the Closing.

 

(ii)         Qualifications.
All authorizations, approvals or permits, if any, of any governmental authority or regulatory body of the United States or of any
state that are required in connection with the lawful issuance and sale of the Securities pursuant to this Subscription Agreement
shall be obtained and effective as of the Closing.

 

11.             Modification.
This Subscription Agreement will not be modified or waived except by an instrument in writing signed by the party against whom
any such modification or waiver is sought.

 

12.              Notices.
Any notice or other communication required or permitted to be given hereunder will be in writing and will be mailed by certified
mail, return receipt requested, or delivered against receipt to the party to whom it is to be given (a) if to the Company, at
the address set forth in the Memorandum or (b) if to the Purchaser, at the address set forth on the signature page hereof (or,
in either case, to such other address as the party will have furnished in writing in accordance with the provisions of this Section
11). Any notice or other communication given by certified mail will be deemed given at the time of certification thereof,
except for a notice changing a party’s address which will be deemed given at the time of receipt thereof.

 

    	 

    	 

    

 

13.           Assignability. This Subscription Agreement and the rights, interests and obligations hereunder are not transferable or assignable
by the Purchaser and the transfer or assignment of any of the Securities will be made only in accordance with all applicable laws.

 

14.           Applicable Law. This Subscription Agreement will be governed by and construed under the laws of the State of New York
as applied to agreements among New York residents entered into and to be performed entirely within New York. The parties hereto
(1) agree that any legal suit, action or proceeding arising out of or relating to this Subscription Agreement will be instituted
exclusively in New York State Supreme Court, County of New York, or in the United States District Court for the Southern District
of New York, (2) waive any objection which the parties may have now or hereafter to the venue of any such suit, action or proceeding,
and (3) irrevocably consent to the jurisdiction of the New York State Supreme Court, County of New York, or in the United States
District Court for the Southern District of New York in any such suit, action or proceeding. Each of the parties hereto further
agrees to accept and acknowledge service of any and all process which may be served in any such suit, action or proceeding New
York State Supreme Court, County of New York, or in the United States District Court for the Southern District of New York and
agrees that service of process upon it mailed by certified mail to its address will be deemed in every respect effective service
of process upon it, in any such suit, action or proceeding. THE PARTIES HERETO AGREE TO WAIVE THEIR RESPECTIVE RIGHTS TO A JURY
TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS SUBSCRIPTION AGREEMENT OR ANY DOCUMENT OR AGREEMENT CONTEMPLATED
HEREBY.

 

15.           Blue Sky Qualification. The purchase of Securities pursuant to this Subscription Agreement is expressly conditioned upon
the exemption from qualification of the offer and sale of the Securities from applicable federal and state securities laws.

 

16.           Use of Pronouns. All pronouns and any variations thereof used herein will be deemed to refer to the masculine, feminine,
neuter, singular or plural as the identity of the person or persons referred to may require.

 

17.           Confidentiality. The Purchaser acknowledges and agrees that any information or data the Purchaser has acquired from or about
the Company not otherwise properly in the public domain, was received in confidence. The Purchaser agrees not to divulge, communicate
or disclose, except as may be required by law or for the performance of this Subscription Agreement, or use to the detriment of
the Company or for the benefit of any other person or persons, or misuse in any way, any confidential information of the Company,
including any trade or business secrets of the Company and any business materials that are treated by the Company as confidential
or proprietary, including, without limitation, confidential information obtained by or given to the Company about or belonging
to third parties.

 

    	 

    	 

    

 

18.         Miscellaneous.

 

(a)        This Subscription Agreement, together with the other Transaction Documents, constitute the entire agreement between the Purchaser
and the Company with respect to the subject matter hereof and supersede all prior oral or written agreements and understandings,
if any, relating to the subject matter hereof. The terms and provisions of this Subscription Agreement may be waived, or consent
for the departure therefrom granted, only by a written document executed by the party entitled to the benefits of such terms or
provisions.

 

(b)        Each of the Purchaser’s and the Company’s representations and warranties made in this Subscription Agreement will survive
the execution and delivery hereof and delivery of the Securities.

 

(c)        Each of the parties hereto will pay its own fees and expenses (including the fees of any attorneys, accountants, appraisers or
others engaged by such party) in connection with this Subscription Agreement and the transactions contemplated hereby whether or
not the transactions contemplated hereby are consummated.

 

(d)        This Subscription Agreement may be executed in one or more counterparts each of which will be deemed an original, but all of which
will together constitute one and the same instrument.

 

(e)        Each provision of this Subscription Agreement will be considered separable and, if for any reason any provision or provisions hereof
are determined to be invalid or contrary to applicable law, such invalidity or illegality will not impair the operation of or affect
the remaining portions of this Subscription Agreement.

 

(f)        Paragraph titles are for descriptive purposes only and will not control or alter the meaning of this Subscription Agreement as
set forth in the text.

 

(g)        Except for the commissions payable by the Company to the Placement Agent (as described in the Memorandum), each party, each party
represents that it neither is nor will be obligated for any finder’s fee or commission in connection with this transaction.
Each Purchaser agrees to indemnify and to hold harmless the Company from any liability for any commission or compensation in the
nature of a finder’s fee (and the costs and expenses of defending against such liability or asserted liability)
for which each Purchaser or any of its officers, employees, or representatives is responsible. The Company agrees to indemnify
and hold harmless each Purchaser from any liability for any commission or compensation in the nature of a finder’s fee
(and the costs and expenses of defending against such liability or asserted liability) for which the Company or any of its officers,
employees or representatives is responsible.

 

(h)        Each Purchaser acknowledges that it is not relying upon any person, firm or corporation, other than the Company and its officers
and directors, in making its investment or decision to invest in the Company. Each Purchaser agrees that no Purchaser nor the respective
controlling persons, officers, directors, partners, agents, or employees of any Purchaser shall be liable for any action heretofore
or hereafter taken or omitted to be taken by any of them in connection with the Securities.

 

    	 

    	 

    

 

19.         Entire Agreement. This Subscription Agreement, the Memorandum and the Transaction Documents constitutes the entire agreement
of the parties to this Agreement and supersedes all prior written or oral and all contemporaneous oral agreements, understandings
and negotiations with respect to the subject matter hereof.

 

20.         Signature Page.

 

(a)          It
is hereby agreed that the execution by the Purchaser of this Subscription Agreement, in the place set forth herein, will constitute
agreement to be bound by the terms and conditions hereof. It is hereby agreed by the parties hereto that the execution
by the Purchaser of this Subscription Agreement, in the place set forth herein below, will be deemed and constitute the agreement
by the Purchaser to be bound by all of the terms and conditions hereof as well the Transaction Documents, and will be deemed and
constitute the execution by the Purchaser of all such Transaction Documents without requiring the Purchaser’s separate signature
on any of such Transaction Documents.

 

ANTI-MONEY LAUNDERING REQUIREMENTS

  

	The USA PATRIOT Act	 	
        What is money

        laundering?
	 	
        How big is the 

        problem

        and why is it 

        important?

	 	 	 	 	 
	The USA PATRIOT Act is designed to detect, deter, and punish terrorists in the United States and abroad.  The Act imposes new anti-money laundering requirements on brokerage firms and financial institutions.  Since April 24, 2002 all brokerage firms have been required to have new, comprehensive anti-money laundering programs.	 	Money laundering is the process of disguising illegally obtained money so that the funds appear to come from legitimate sources or activities.  Money laundering occurs in connection with a wide variety of crimes, including illegal arms sales, drug trafficking, robbery, fraud, racketeering, and terrorism.	 	The use of the U.S. financial system by criminals to facilitate terrorism or other crimes could well taint our financial markets.  According to the U.S. State Department, one recent estimate puts the amount of worldwide money laundering activity at $1 trillion a year.

 

To help you understand these efforts, we
want to provide you with some information about money laundering and our steps to implement the USA PATRIOT Act.

 

    	 

    	 

    

 

What are we required to do to eliminate money laundering?

 

	Under new rules required by the USA PATRIOT Act, our anti-money laundering program must designate a special compliance officer, set up employee training, conduct independent audits, and establish policies and procedures to detect and report suspicious transaction and ensure compliance with the new laws.	 	As part of our required program, we may ask you to provide various identification documents or other information.  Until you provide the information or documents we need, we may not be able to effect any transactions for you.

 

    	 

    	 

    

 

THE GRILLED CHEESE TRUCK, INC.

SIGNATURE PAGE TO

SUBSCRIPTION AGREEMENT

 

Purchaser hereby elects to purchase
a total of $________ of Notes and Warrants (or $______ of face principal amount of Notes). For each $25,000 of face principal amount
of Notes purchased the purchaser to receive Warrants to purchase 12,500 shares of common stock. (NOTE: to be completed by the Purchaser).

 

Date (NOTE: To be completed by the Purchaser):
__________________, 2013

 

	If the Purchaser is an INDIVIDUAL, and if purchased as JOINT TENANTS, as
	 
	TENANTS IN COMMON, or as COMMUNITY PROPERTY:

 

	 	 	 
	Print Name(s)	 	Social Security Number(s)
	 	 	 
	 	 	 
	Signature(s) of Purchaser(s)	 	Signature
	 	 	 
	 	 	 
	Date	 	Address

 

If the Purchaser is a PARTNERSHIP, CORPORATION,
LIMITED LIABILITY

 

COMPANY or TRUST:

 

	 	 	 
	Name of Partnership,	 	Federal Taxpayer
	 	 	 
	Corporation, Limited	 	Identification Number
	 	 	 
	Liability Company or Trust	 	 
	 	 	 
	By:	 	 	 
	 	 	 	 
	 	Name:	 	State of Organization
	 	 	 	 
	 	Title:	 	 
	 	 	 
	Date	 	Address
	 	 	 
	AGREED AND ACCEPTED:	 	 
	 	 	 
	THE GRILLED CHEESE TRUCK, INC.	 	 
	 	 	 
	By:	 	 	 
	 	Name:	 	Date
	 	Title:	 	 

 

    	 

    	 

    

 

THE GRILLED CHEESE TRUCK, INC.

ACCREDITED INVESTOR CERTIFICATION

 

For Individual Investors Only

 

(All individual investors must INITIAL
where appropriate. Where there are joint investors both parties must INITIAL):

 

	Initial _______	I certify that I have a “net worth” of at least $1 million either individually or through aggregating my individual holdings and those in which I have a joint, community property or other similar shared ownership interest with my spouse.  For purposes hereof, “net worth” shall be deemed to include all of your assets, liquid or illiquid (excluding the value of your principal residence), minus all of your liabilities (excluding the amount of indebtedness secured by your principal residence up to its fair market value).
	Initial _______	I certify that I have had an annual gross income for the past two years of at least $200,000 (or $300,000 jointly with my spouse) and expect my income (or joint income, as appropriate) to reach the same level in the current year.

 

For Non-Individual
Investors

(all Non-Individual
Investors must INITIAL where appropriate):

 

	Initial _______	The undersigned certifies that it is a partnership, corporation, limited liability company or business trust that is 100% owned by persons who meet either of the criteria for Individual Investors, above.
	Initial _______	The undersigned certifies that it is a partnership, corporation, limited liability company or business trust that has total assets of at least $5,000,000 and was not formed for the purpose of investing in Company.
	Initial _______	The undersigned certifies that it is an employee benefit plan whose investment decision is made by a plan fiduciary (as defined in ERISA §3(21)) that is a bank, savings and loan association, insurance company or registered investment adviser.
	Initial _______	The undersigned certifies that it is an employee benefit plan whose total assets exceed $5,000,000 as of the date of the Subscription Agreement.
	Initial _______	The undersigned certifies that it is a self-directed employee benefit plan whose investment decisions are made solely by persons who meet either of the criteria for Individual Investors, above.
	Initial _______	The undersigned certifies that it is a U.S. bank, U.S. savings and loan association or other similar U.S. institution acting in its individual or fiduciary capacity.
	Initial _______	The undersigned certifies that it is a broker-dealer registered pursuant to §15 of the Securities Exchange Act of 1934.
	Initial _______	The undersigned certifies that it is an organization described in §501(c)(3) of the Internal Revenue Code with total assets exceeding $5,000,000 and not formed for the specific purpose of investing in Company.
	Initial _______	The undersigned certifies that it is a trust with total assets of at least $5,000,000, not formed for the specific purpose of investing in Company, and whose purchase is directed by a person with such knowledge and experience in financial and business matters that he is capable of evaluating the merits and risks of the prospective investment.
	Initial _______	The undersigned certifies that it is a plan established and maintained by a state or its political subdivisions, or any agency or instrumentality thereof, for the benefit of its employees, and which has total assets in excess of $5,000,000.
	Initial _______	The undersigned certifies that it is an insurance company as defined in §2(a)(13) of the Securities Act of 1933, as amended, or a registered investment company.

 

    	 

    	 

    

 

THE GRILLED
CHEESE TRUCK, INC.

Purchaser Questionnaire

(Must be completed by Investor)

 

Section A - Personal Investor Information

 

Title in Which Securities Are to be Held:

________________________________________________________________________

 

Individual Executing Profile or Trustee:

_______________________________________________________________________

 

Social Security Numbers / Federal I.D. Number:

________________________________________________________________________

 

Date of Birth: _________________ Marital Status: _________________

 

Joint Party Date of Birth:_________________

 

Investment Experience (Years): ___________

 

Annual Income: _________________

 

Liquid Net Worth:_____________

 

Net Worth: ________________

 

	Investment Objectives (circle one or more):	Long Term Capital Appreciation, Short Term

 Trading, Businessman’s Risk, Income, Safety

 of Principal, Tax Exempt Income or other

 

Home Street Address: ________________________________________________________________________

 

Home City, State & Zip Code: ________________________________________________________________________

 

Home Phone: ________________________ Home Fax: _____________________

 

Home Email: _______________________________

 

Employer: ________________________________________________________________________

 

Employer Street Address: ________________________________________________________________________

 

Employer City, State & Zip Code: 

________________________________________________________________________

 

Bus. Phone: __________________________ Bus. Fax: _______________________

 

Bus. Email: ________________________________

 

Type of Business: ________________________________________________________________________

 

GRANDVIEW Account Executive / Outside Broker/Dealer: 

_______________________________________________________

 

    	 

    	 

    

 

THE GRILLED CHEESE TRUCK, INC.

Purchaser Questionnaire

(Must be completed by Subscriber)

 

Section B – Entity Investor
Information

 

Title in Which Securities Are to be Held:________________________________________________________________________

 

Authorized Individual Executing Profile or Trustee: _______________________________________________________________________

 

Social Security Numbers / Federal I.D. Number: ________________________________________________________________________

 

Investment Experience (Years): ___________

 

Annual Income: _______________

 

Net Worth: ________________

 

Was the Trust formed for the specific purpose of purchasing
the Preferred Stock and Warrants?

 

 ̈ Yes  ̈
No

 

Principal Purpose (Trust)______________________________________

 

Type of Business: ________________________________________________________

 

	Investment Objectives (circle one or more):	Long Term Capital Appreciation, Short Term

 Trading, Businessman’s Risk, Income, Safety

 of Principal, Tax Exempt Income or other

 

Street Address: ________________________________________________________________________

 

City, State & Zip Code: ________________________________________________________________________

 

Phone: ________________________        Fax:
________________________

 

Email: __________________________

 

Grandview Account Executive /Outside Broker/Dealer:

 

_______________________________________________________

 

    	 

    	 

    

 

Section C – Form of Payment
– Check or Wire Transfer

 

____ Check payable to “CROSS
RIVER BANK AS ESCROW AGENT FOR THE GRILLED CHEESE TRUCK, INC.”

 

____ Wire funds from my outside
account according to the “To subscribe for Units of Senior Secured Convertible Promissory Note(s) and Warrants to Purchase
Shares of Common Stock of THE GRILLED CHEESE TRUCK, INC.” page (page “i”)

 

____ Wire funds from my GRANDVIEW Account – See following
page

 

____The funds for this investment
are rolled over, tax deferred from ____________________ within the Allowed 60-day window

 

Section D – Securities Delivery
Instructions (check one)

 

____ Please deliver my securities to Grandview for deposit into
my brokerage account.

 

____ Please deliver my securities to the address listed in the
above Investor Profile.

 

____ Please deliver my securities to the below address:

_________________

_________________

_________________

_________________

 

Section E – Investor Instructions
for Payments (check one)

 

____   Please
make out my interest and any other payment checks pursuant to the Units to “[Insert Client Name]” and deliver such
checks to Grandview so that they may deposit them into my Grandview brokerage account.

 

____   Please
make out my interest and any other payment checks pursuant to the Units in the registered name set forth in the Investor Profile
and mail such checks to me at the address specified in the Investor Profile.

 

Investor Signature(s) _______________________________________       Date_______________

 

Wire Transfer Authorization

 

		TO:	PLACEMENT AGENT

GRANDVIEW CAPITAL PARTNERS, INC.

 

		RE:	Client Wire Transfer Authorization

THE GRILLED CHEESE TRUCK, INC.

 

DATE: ________________

 

    	 

    	 

    

 

This memorandum authorizes the transfer of the following
listed funds from my GRANDVIEW Brokerage Account as follows:

 

GRANDVIEW Brokerage Account #   ______________________

 

Wire Amount                                 $______________________

 

Cross River Bank

885 Teaneck Road

Teaneck, New Jersey 07666

 

ABA No.: 031301752

For Credit to Cross River Bank,
as Escrow Agent for 

The Grilled Cheese Truck,
Inc.

Account
No.: 

 

REFERENCE:

 

SUBSCRIBER’S LEGAL NAME

______________________________________________________

 

TAX ID NUMBER

______________________________________________________

 

SUBSCRIBER’S ADDRESS

______________________________________________________

 

FBO: ________________________________________________

 

	Signature:	 	 	 
	 	 	 	 
	Signature:	 	 	 
	 	 	(Joint Signature)

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