Document:

SECURITIES OPTION AGREEMENT

 

This SECURITIES OPTION
AGREEMENT (the “Agreement”), dated effective as of June 30, 2012 (the “Effective Date”),
is by and between Vicis Capital Master Fund, a sub-trust of Vicis Capital Series Master Trust, a unit trust organized and existing
under the laws of the Cayman Islands (“Vicis”), with a mailing address care of Vicis Capital, LLC, 445 Park
Avenue, Suite 1901, New York, New York 10022, and NET TALK.COM, INC., a Florida corporation maintaining
a mailing address at 1100 NW 163 Drive, Miami, Florida 33169 (the “Company”).

 

BACKGROUND INFORMATION

 

Vicis holds common
stock, Series A 12% convertible preferred stock, Series D common stock purchase warrants, and Series E common stock purchase warrants.
The Company wishes to obtain an option and limited right of first refusal to acquire such securities. Vicis is willing to grant
the Company such option and limited right of first refusal but only upon the terms and conditions set forth herein. Accordingly,
the parties, in consideration of the covenants herein contained, and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties agree as follows:

 

OPERATIVE PROVISIONS

 

1.          Definitions.

 

(a)          The
term “Securities” as used in this Agreement shall mean all of the securities set
forth on Exhibit “A” to
this Agreement, together with, in each case, all securities issued in substitution of or exchange for, or on account
of, any such Securities, including, but not limited to, securities issued upon a conversion, stock dividend, stock split, reverse
stock split, recapitalization, reclassification, merger, consolidation, combination of shares, spinoff, or otherwise.

 

(b)          The
term “Current Outstanding Debentures” means: (i) that certain 12% Senior Secured Debenture dated June 30, 2011
in the principal amount of $5,266,130, (ii) that certain 12% Senior Secured Debenture dated August 8, 2011 in the principal amount
of $2,000,000, (ii) that certain 10% Senior Secured Debenture dated September 30, 2011 in the principal amount of $3,500,000, (iii)
that certain 10% Senior Secured Debenture dated March 29, 2012 in the principal amount of $500,000, (iv) that certain 10% Senior
Secured Debenture dated April 20, 2012 in the principal amount of $500,000, and (v) that certain 10% Senior Secured Debenture dated
May 28, 2012 in the principal amount of $550,000, of which $450,000 in principal was funded.

 

(c)          The
term “Debentures” means, collectively, the Current Outstanding Debentures and the Future Debentures, if any.

 

(d)          The
term “Future Debentures” means all debentures or promissory notes issued by the Company to Vicis, or its successors
or assigns, after the date of this Agreement.

 

2.          Grant
of Option; Exercise Date. Vicis hereby grants to the Company an option (the “Option”) to purchase and
redeem the Securities of the Company from Vicis. The Option to acquire the Securities shall become exercisable on the date that
all principal of, and accrued interest on, all Debentures has been paid in full (the “Initial Exercise Date”),
and may be exercised at any time after the Initial Exercise Date through and including 5:30 p.m., Eastern
Prevailing Time, on December 31, 2013 (the “Expiration Time”). The Option may be exercised in whole but
not in part.

 

    	- 1 -

    	 

    

 

3.          Option
Purchase Price. The purchase price for this Option (the “Option Purchase Price”) shall be one hundred
dollars ($100), and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged. The Option
Purchase Price is payable, in cash, upon execution and delivery of this Agreement.

 

4.          Securities
Redemption Price. Upon exercise of the Option, the redemption price for the Securities (the “Securities Redemption
Price”) shall be an amount equal to sixteen million dollars ($16,000,000), minus the sum of (a) total principal
and accrued interest paid by the Company on the Current Outstanding Debentures, (b) the first one million ($1,000,000) of principal
paid by the Company on any Future Debentures, if any, and (c) accrued interest paid by the Company on the first one million
($1,000,000) of principal on any Future Debentures.

 

By way
of example, if (a) in connection with future advances or loans from Vicis, the Company issues to Vicis a Future Debenture
in the principal amount of $2,000,000; and (b) the Company (i) repays the principal of $12,216,130 on the Current Outstanding Debentures,
(ii) pays interest of $1,800,000 on the principal of the Current Outstanding Debentures, (iii) repays principal of $2,000,000 on
the Future Debenture, and (iv) pays interest of $200,000 on the Future Debenture, then the Securities Redemption Price will be
$ 883,870.

 

Upon exercise of the
Option, any and all unpaid dividends on the Securities, whether accrued, unaccrued, declared or undeclared, shall be surrendered
with the Securities and cancelled without payment of additional consideration.

 

5.          Term;
Termination. The term of the Option shall be for a period that commences on the Effective Date and expires at the Expiration
Time (as defined above). The Option is not intended to be an “incentive stock option” within the meaning of Section
422 of the Internal Revenue Code of 1986, as amended.

 

6.          Exercise
Procedure; Closing; Payment of Securities Redemption Price. The Company may exercise the Option
by (a) delivering written notice to Vicis at any time after the Initial Exercise Date, or (b) delivering written notice to Vicis
that the Company intends to satisfy all principal of, and accrued interest on, all Debentures within thirty days of the
date of such notice (in either case, the “Exercise Notice”); provided, however,
in no event shall the Exercise Notice be provided later than 5:30 p.m., Eastern Prevailing Time, on December 30, 2013.
The closing of the purchase and redemption of the Securities shall
take place at a time and date mutually agreeable to Vicis and the Company, which shall be no later than the earlier of (y) thirty
(30) days after the date that the Exercise Notice is given to Vicis, or (z) the Expiration Time (the “Closing”).
The Closing shall occur at the offices of legal counsel for Vicis, or at such other location (which may include the waiver of any
physical closing and the exchange of executed documentation by facsimile or electronic transmission
or otherwise) as may be agreed to by Vicis and the Company. If the parties do not mutually agree to a time and date for the Closing,
then the Closing shall occur at 10:00 a.m., Eastern Prevailing Time, on the earlier of (a) the thirtieth (30th) day after the date
that the Exercise Notice is given to Vicis, or (b) December 31, 2013. At the Closing, (a) all conditions to exercise the
Option specified in section 2 above must be satisfied, (b) Vicis and the Company shall execute a securities redemption agreement
in the form attached hereto as Exhibit “B”; (c) Vicis shall deliver to the Company the
certificates or instruments evidencing the Securities in negotiable form or accompanied by an
executed stock power or instrument of transfer in a form acceptable to the Company; and (d) the Company shall deliver to
Vicis in cash, via wire transfer or certified check, an amount equal to the Securities Redemption Price. Following such delivery,
the parties shall thereupon cause the Company to register such issuance and ownership in its transfer records.

 

    	- 2 -

    	 

    

 

7.          Representations
and Warranties of Vicis. In order to induce the Company to enter into this Agreement and to consummate the transactions
contemplated hereby, Vicis represents and warrants to the Company that:

 

(a)          Authorization.
Vicis has duly executed and delivered this Agreement. When executed and delivered by Vicis, this Agreement will constitute the
valid and binding obligation of Vicis, enforceable in accordance with its terms except as the enforcement thereof may be limited
by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws generally affecting the rights of creditors and
subject to general equity principles.

 

(b)          Consent.
No consent, approval, or authorization of or registration, qualification, designation, declaration, or filing with any governmental
authority or private person or entity on the part of Vicis is required in connection with the execution and delivery of this Agreement
or the consummation of any other transaction contemplated hereby.

 

(c)          No
Contractual Violation. Neither the execution, delivery nor performance of this Agreement by Vicis, including the consummation
by Vicis of the transactions contemplated hereby, will constitute a violation of or a default under, or conflict with, any term
or provision of any contract, commitment, indenture, or other agreement, or of any other private restriction of any kind, to which
Vicis is a party or by which it is otherwise bound.

 

(d)          Title
to Securities. Vicis has good and marketable title to the Securities free and clear of all liens, claims, encumbrances,
and restrictions, legal or equitable, of every kind, except for certain restrictions on transfer imposed by federal and state securities
laws. Vicis has full and unrestricted legal right, power, and authority to sell, assign, and transfer such Securities to the Company
without obtaining the consent or approval of any other person or governmental authority.

 

8.          Representations
and Warranties of the Company. The Company represents and warrants to Vicis that:

 

(a)          Authorization.
The Company has duly executed and delivered this Agreement. When executed and delivered by the Company, this Agreement will constitute
the valid and binding obligation of the Company, enforceable in accordance with its terms, except as the enforcement thereof may
be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws generally affecting the rights of
creditors and subject to general equity principles.

 

(b)          Consent.
No consent, approval, or authorization of or registration, qualification, designation, declaration, or filing with any governmental
authority or private person or entity on the part of the Company is required in connection with the execution and delivery of this
Agreement or the consummation of any other transaction contemplated hereby, except as shall have been duly taken or effected prior
to the Closing.

 

(c)          No
Contractual Violation. Neither the execution, delivery nor performance of this Agreement by the Company, including the
consummation by the Company of the transactions contemplated hereby, will constitute a violation of or a default under, or conflict
with, any term or provision of any contract, commitment, indenture, or other agreement, or of any other private restriction of
any kind, to which the Company is a party or by which it is otherwise bound.

 

    	- 3 -

    	 

    

 

9.          Right
of First Refusal. Vicis covenants as follows:

 

(a)          Transfer
or Disposition of Securities. As long as this Option remains outstanding, Vicis shall not sell, convey, transfer, exchange,
or otherwise dispose of any of the Debentures or Securities or any interest therein or create, incur, or permit to exist any pledge,
mortgage, lien, charge, encumbrance, or any security interest whatsoever with respect to any of the Debentures or Securities or
the products or proceeds thereof, unless the following conditions are satisfied: (i) all of the Debentures and Securities are sold
in a single transaction and Vicis has complied with 9(b) below or (ii) less than all of the Debentures and Securities are sold
in a single transaction and Vicis has complied with 9(c) below.

 

(b)          Sale
of all the Debentures and Securities. If Vicis intends to sell, prior to the Expiration Time, in a bona-fide arms length transaction,
all of the Debentures and Securities, then Vicis shall follow the procedures set forth in this Section 9(b) below before effecting
such sale. 

 

(i)          Right
of First Refusal. Vicis shall submit a written offer to sell all the Debentures and Securities (the “Offer”)
to the Company, which document shall contain the terms of the Offer, including the purchase price (the “Offer Price”),
the terms for payment of the purchase price, and the proposed closing date; provided, however, if the Offer Price
is more than Sixteen Million Dollars ($16,000,000), plus any Adjustment Amount (as defined in the last sentence of this paragraph),
then the Offer Price shall be deemed to be Sixteen Million Dollars ($16,000,000), plus any Adjustment Amount. “Adjudtment
Amount” means the aggregate principal on any Future Debentures in excess of $1,000,000, plus any accrued interest on
such principal on any Future Debentures.

 

(ii)         Acceptance
of Offer by the Company. The Company may accept the Offer by giving written notice to Vicis prior to the earlier of [A] thirty
(30) calendar days after having been furnished the Offer, or [B] the Expiration Time (the “Right of First Refusal Expiration
Time”).

(iii)        Permitted
Sale. If the Company does not exercise its Right of First Refusal by the Right of First Refusal Expiration Time and close on
the Offer in accordance with its terms, then Vicis shall have the right to sell the Debentures and Securities on the same terms
and conditions set forth in the Offer (a “Permitted Sale”), free and clear of the Company’s rights under
this Agreement (including this Right of First Refusal and the Option); provided, however, if Vicis does not sell
all of the Debentures and Securities within ninety (90) calendar days after having furnished the Offer to the Company, on the same
terms and conditions set forth in the Offer, then Vicis shall not thereafter sell the Debentures and Securities, without
first again offering such securities to the Company in the manner provided in this Section 9(b).

 

(c)          Sale
of less than all the Debentures and Securities. If Vicis intends to sell, prior to the Expiration Time, in a bona-fide arms
length transaction, less than all of the Debentures and Securities, then Vicis shall follow the procedures set forth in this Section
9(c) below before effecting such sale. 

 

(i)          Right
of First Refusal. Vicis shall provide written notice to the Company no less than thirty (30) calendar days prior to the sale
of less than all of the Debentures and Securities. Vicis shall submit a written offer to sell such Debentures and Securities (the
“Partial Sale Offer”) to the Company, which document shall contain the terms of the Partial Sale Offer, including
the purchase price (the “Partial Sale Offer Price”), the terms for payment of the purchase price, and the proposed
closing date.

 

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(ii)         Acceptance
of Partial Sale Offer by the Company. The Company may accept the Partial Sale Offer by giving written notice to Vicis prior
to the earlier of [A] thirty (30) calendar days after having been furnished the Partial Sale Offer, or [B] the Expiration Time
(the “Partial Sale Right of First Refusal Expiration Time”). Alternatively, the Company may fulfill all the
conditions to exercise of the Option and exercise the Option prior to the Partial Sale Right of First Refusal Expiration Time.

 

(iii)        Permitted
Sale. If the Company does not exercise its Right of First Refusal by the Partial Sale Right of First Refusal Expiration Time
and close on the Partial Sale Offer in accordance with its terms, then Vicis shall have the right to sell such Debentures and Securities
on the same terms and conditions set forth in the Partial Sale Offer (a “Permitted Partial Sale”), free and
clear of the Company’s rights under this Agreement (including this Right of First Refusal and the Option). In addition, upon
completion of a Permitted Partial Sale (other than to the Company), this Agreement (including this Right of First Refusal and the
Option) shall be deemed to have expired.

 

(d)          Legend.
Upon request of the Company and subject to this Agreement, Vicis shall place a legend on each of the certificates or instruments
evidencing the Securities and Debentures referencing this Option, such legend being in form and substance reasonably acceptable
to the Company.

 

10.         No
Rights as a Shareholder. Nothing in this Agreement shall convey upon the Company any rights of a shareholder of the Company
prior to the exercise of the Option and the transfer of the Securities pursuant to the terms and conditions set forth herein.

 

11.         Investment
Purpose. This Agreement is executed on the express condition that the purchase and redemption of the Securities shall be
made for investment purposes only and not with a view to their resale or further distribution unless (a) such Securities, at the
time of their issuance and delivery, are registered under the Securities Act of 1933, as amended (the “Act”),
or (b) after the date of such issuance, the resale of such Securities is determined by counsel for the Company to be exempt from
the registration requirements of the Act and of any other applicable law, regulation, or ruling.

 

12.         Assignability.
Each of the provisions and agreements herein contained shall be binding upon and inure to the benefit of the respective parties
hereto, as well as their successors and transferees, as applicable, but no statement contained herein is intended to confer upon
any person or entity, other than the parties hereto and their successors in interest and permitted assignees, any rights or remedies
under or by reason of this Agreement. The Company may assign this Agreement at any time prior to the Expiration Time upon prior
written notice to Vicis.

 

    	- 5 -

    	 

    

 

13.         Miscellaneous
Provisions. All notices required to be given pursuant to this Agreement shall be in writing and shall be hand delivered
or sent via overnight delivery services to the applicable address set forth in the preamble of this Agreement, or to such other
address as any such party may have designated by like notice forwarded to the other party hereto. This Agreement, and any other
document referenced herein, constitute the entire understanding of the parties hereto with respect to the subject matter hereof,
and no amendment, modification, or alteration of the terms hereof shall be binding unless the same be in writing, dated subsequent
to the date hereof and duly approved and executed by each of the parties hereto. Vicis hereby covenants and agrees with the Company
that, at any time and from time to time, it will promptly execute and deliver to the Company such further assurances, instruments,
and documents and take such further action as the Company may reasonably request in order to carry out the full intent and purpose
of this Agreement. This Agreement, and the application or interpretation thereof, shall be governed exclusively by its terms and
by the laws of the State of New York. Venue for all purposes shall be deemed to lie within New York, New York. The parties agree
that, irrespective of any wording that might be construed to be in conflict with this paragraph, this Agreement is one for performance
in New York. The parties to this Agreement agree that they waive any objection, constitutional, statutory, or otherwise, to a New
York court’s taking jurisdiction of any dispute between them. By entering into this Agreement, the parties, and each of them,
understand that they might be called upon to answer a claim asserted in a New York court. If a legal action is initiated by any
party to this Agreement against another, arising out of or relating to the alleged performance or non-performance of any right
or obligation established hereunder, or any dispute concerning the same, any and all fees, costs, and expenses reasonably incurred
by each successful party or its legal counsel in investigating, preparing for, prosecuting, defending against, or providing evidence,
producing documents or taking any other action in respect of, such action shall be the joint and several obligation of and shall
be paid or reimbursed by the unsuccessful party or parties. EACH OF THE PARTIES HERETO
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO TRIAL BY JURY IN ANY SUCH LEGAL PROCEEDING. All
representations and warranties contained in this Agreement shall survive the closing and the consummation of the transactions contemplated
hereby. This Agreement may be executed in any one or more counterparts, all of which shall be considered one and the same agreement.
The headings in this Agreement are inserted for convenience only and shall not constitute a part of this Agreement.

 

IN WITNESS WHEREOF, this Agreement
has been executed as of the date first above written.

 

	 	VICIS:
	 	 
	 	VICIS CAPITAL MASTER FUND
	 	 
	 	By:  Vicis Capital, LLC, as its Investment Manager
	 	 
	 	By:  /s/ Keith Hughes
	 	Print Name:  Keith Hughes
	 	Its: Chief Financial Officer
	 	 
	 	COMPANY:
	 	 
	 	NET TALK.COM, INC.
	 	 
	 	By: /s/ Anastasios Kyriakides
	 	Print Name: Anastasios Kyriakides
	 	Its: Chief Executive Officer

 

    	- 6 -

    	 

    

 

EXHIBIT A

to the Securities Option Agreement

by and between

Vicis Capital Master Fund and Net Talk.com,
Inc.

 

Securities

 

	Issuer	Type of Security	Number of Securities or, if Debt, Face Value
	 	 	 
	Net Talk.com, Inc.	Common Stock, $0.001 par value per share	19,995,092 shares of common stock
	Net Talk.com, Inc.	Series A 12% Convertible Preferred Stock	500 shares convertible into 20,000,000 shares of common stock.
	Net Talk.com, Inc.	Series D Common Stock Purchase Warrants	 36,000,000 warrants to purchase  36,000,000 shares of common stock
	Net Talk.com, Inc.	Series E Common Stock Purchase Warrants	40,664,520 warrants to purchase  40,664,520 shares of common stock

 

    	- 7 -

    	 

    

 

EXHIBIT B

to the Securities Option Agreement

by and between

Vicis Capital Master Fund and Net Talk.com,
Inc.

 

Form of Securities Redemption Agreement

 

SECURITIES
REDEMPTION AGREEMENT

 

This SECURITIES REDEMPTION
AGREEMENT (the “Agreement”), dated ———————
is by and between Vicis Capital Master Fund, a sub-trust of Vicis Capital
Series Master Trust, a unit trust organized and existing under the laws of the Cayman Islands, with a mailing address of 445 Park
Avenue, Suite 1901, New York, New York 10022 (the “Seller”), and NET TALK.COM, INC.,
a Florida corporation maintaining a mailing address at 1100 NW 163 Drive, Miami, Florida 33169
(the “Company”).

 

BACKGROUND INFORMATION

 

This Agreement sets
forth the terms and conditions upon which the Company is acquiring from the Seller and
the Seller is selling and delivering to the Company, free and
clear of all liabilities, obligations, claims, liens and encumbrances, those securities issued by the Company set forth on Exhibit
“A” to this
Agreement (the “Securities”). The Company
is acquiring the Securities pursuant to an option set forth in the Securities Option Agreement effective June 30, 2012. In
consideration of the mutual agreements contained herein, the parties agree as follows:

 

OPERATIVE PROVISIONS

 

1.          Background
Information. Each party hereto acknowledges and agrees that the foregoing background information is true and correct and
is hereby incorporated by reference and made a part of this Agreement.

 

2.          Securities
to be Sold. Subject to the terms and conditions of this Agreement,
at the Closing referred to in Section 4 hereof, the Seller
is selling and delivering to the Company good, valid, and marketable
title to the Securities, by delivering to the Company stock
certificates, warrant certificates, or any other applicable instrument representing such Securities,
duly endorsed in blank or accompanied by one or more stock powers or instruments of transfer duly endorsed in blank, and in form
for transfer satisfactory to the Company. If any Securities are held in registered or electronic
form, then the Seller will promptly electronically transfer such Securities to the Company in accordance with written instructions
provided by the Company.

 

3.          Purchase
Price of the Securities; Payment.
The aggregate purchase price being paid by the Company to the
Seller for the Securities is _____________________ (the
“Purchase Price”).

 

4.          Closing.
The closing of the sale and purchase of the Securities is taking
place on the date first written above, at the offices of legal counsel for the Seller or at such other location as mutually agreed
to by the parties (the “Closing”). At the Closing,
(a) the Seller is delivering to the Company the certificates
or instruments evidencing the Securities in negotiable form or accompanied by an executed stock
power or instrument of transfer in a form acceptable to the Company, and (b) the Company is delivering to Vicis in cash,
via wire transfer or certified check, an amount equal to the Purchase Price. Each party is responsible
for all fees and costs incurred by them or on their behalf in connection with the Closing.

 

    	- 8 -

    	 

    

 

5.          Representations
and Warranties of the Seller. In order to induce the Company to enter into this Agreement and to consummate the transactions
contemplated hereby, the Seller represents and warrants to the Company that:

 

a.           Authorization.
The Seller has duly executed and delivered this Agreement. When executed and delivered by the Seller, this Agreement will constitute
the valid and binding obligation of the Seller, enforceable in accordance with its terms except as the enforcement thereof
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws generally affecting the rights
of creditors and subject to general equity principles.

 

b.           Consent.
No consent, approval, or authorization of or registration, qualification, designation, declaration, or filing with any governmental
authority or private person or entity on the part of the Seller is required in connection with the execution and delivery of this
Agreement or the consummation of any other transaction contemplated hereby, except as may be required pursuant to the Securities
Exchange Act of 1934, as amended, and the rules and regulations thereunder.

 

c.           No
Contractual Violation. Neither the execution, delivery nor performance of this Agreement by the Seller, including the consummation
by the Seller of the transactions contemplated hereby, constitutes a violation of or a default under, or conflict with, any term
or provision of any contract, commitment, indenture, or other agreement, or of any other private restriction of any kind, to which
the Seller is a party or by which it is otherwise bound.

 

d.           Title
to Securities. The Seller has good and marketable title to the Securities free and clear of all liens, claims, encumbrances,
and restrictions, legal or equitable, of every kind, except for certain restrictions on transfer imposed by federal and state securities
laws. The Seller has full and unrestricted legal right, power, and authority to sell, assign, and transfer such Securities to the
Company without obtaining the consent or approval of any other person or governmental authority, and the delivery of such Securities
to the Company pursuant to this Agreement transfers valid title thereto, free and clear of all liens, encumbrances, claims, and
restrictions of every kind, except for certain restrictions on their further transferability imposed by federal and state securities
laws.

 

6.          Representations
and Warranties of the Company. The Company represents and warrants to, and covenants with, the Seller that:

 

a.           Authorization.
The Company has duly executed and delivered this Agreement. When executed and delivered by the Company, this Agreement will constitute
the valid and binding obligation of the Company, enforceable in accordance with its terms, except as the enforcement thereof
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws generally affecting the rights
of creditors and subject to general equity principles.

 

b.           Consent.
No consent, approval, or authorization of or registration, qualification, designation, declaration, or filing with any governmental
authority or private person or entity on the part of the Company is required in connection with the execution and delivery of this
Agreement or the consummation of any other transaction contemplated hereby.

 

    	- 9 -

    	 

    

 

c.           No
Contractual Violation. Neither the execution, delivery nor performance of this Agreement
by the Company, including the consummation by the Company of the transactions contemplated hereby, will constitute a violation
of or a default under, or conflict with, any term or provision of any contract, commitment, indenture, or other agreement, or of
any other private restriction of any kind, to which the Company is a party or by which it is otherwise bound.

 

7.          Miscellaneous
Provisions. All notices required to be given pursuant to this Agreement shall be in writing and shall be hand delivered
or sent via overnight delivery services to the applicable address set forth in the preamble of this Agreement, or to such other
address as any such party may have designated by like notice forwarded to the other party hereto. This Agreement, and any other
document referenced herein, constitute the entire understanding of the parties hereto with respect to the subject matter hereof,
and no amendment, modification, or alteration of the terms hereof shall be binding unless the same be in writing, dated subsequent
to the date hereof and duly approved and executed by each of the parties hereto. The Seller hereby covenants and agrees with the
Company that, at any time and from time to time, it will promptly execute and deliver to the Company such further assurances, instruments,
and documents and take such further action as the Company may reasonably request in order to carry out the full intent and purpose
of this Agreement. This Agreement, and the application or interpretation thereof, shall be governed exclusively by its terms and
by the laws of the State of New York. Venue for all purposes shall be deemed to lie within New York, New York. The parties agree
that, irrespective of any wording that might be construed to be in conflict with this paragraph, this Agreement is one for performance
in New York. The parties to this Agreement agree that they waive any objection, constitutional, statutory, or otherwise, to a New
York court’s taking jurisdiction of any dispute between them. By entering into this Agreement, the parties, and each of them,
understand that they might be called upon to answer a claim asserted in a New York court. If a legal action is initiated by any
party to this Agreement against another, arising out of or relating to the alleged performance or non-performance of any right
or obligation established hereunder, or any dispute concerning the same, any and all fees, costs, and expenses reasonably incurred
by each successful party or its legal counsel in investigating, preparing for, prosecuting, defending against, or providing evidence,
producing documents or taking any other action in respect of, such action shall be the joint and several obligation of and shall
be paid or reimbursed by the unsuccessful party or parties. EACH OF THE PARTIES
HERETO IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO TRIAL BY JURY IN ANY SUCH LEGAL PROCEEDING. All
representations and warranties contained in this Agreement shall survive the closing and the consummation of the transactions contemplated
hereby. This Agreement may not be assigned by the Company without the prior written consent of the Seller. This Agreement shall
be binding upon the parties hereto and the successors and assigns of each party hereto. This Agreement may be executed in any one
or more counterparts, all of which shall be considered one and the same agreement. The headings in this Agreement are inserted
for convenience only and shall not constitute a part of this Agreement.

 

[SIGNATURE PAGE TO EXHIBIT A TO FOLLOW]

 

    	- 10 -

    	 

    

 

In
WITNESS Whereof, the parties hereto have each executed and delivered
this Agreement as of the day and year first above written.

 

[EXHIBIT B – SIGNATURE PAGE]

 

    	- 11 -Exhibit 4.1

 

INVESTVIEW, INC. 2012 INCENTIVE STOCK
PLAN

 

This Investview, Inc. 2012 Incentive Stock
Plan (the " Plan ") is designed to retain directors, executives and selected employees and consultants and
reward them for making major contributions to the success of the Company. These objectives are accomplished by making long-term
incentive awards under the Plan thereby providing Participants with a proprietary interest in the growth and performance of the
Company.

 

		1.	Definitions.

 

		(a)	" Board " - The Board of Directors of the Company.

 

		(b)	" Code " - The Internal Revenue Code of 1986, as amended from time to time.

 

		(c)	" Committee " - The Compensation Committee of the Company's Board, or such other committee of the Board that
is designated by the Board to administer the Plan, composed of not less than two members of the Board.

 

		(d)	" Company " – INVESTVIEW, INC. and its subsidiaries including subsidiaries of subsidiaries.

 

		(e)	" Exchange Act " - The Securities Exchange Act of 1934, as amended from time to time.

 

		(f)	" Fair Market Value " - The fair market value of the Company's issued and outstanding Stock as determined
in good faith by the Board or Committee.

 

		(g)	" Grant " - The grant of any form of stock option, stock award, or stock purchase offer, whether granted singly,
in combination or in tandem, to a Participant pursuant to such terms, conditions and limitations as the Committee may establish
in order to fulfill the objectives of the Plan.

 

		(h)	" Grant Agreement " - An agreement between the Company and a Participant that sets forth the terms, conditions
and limitations applicable to a Grant.

 

		(i)	" Option " - Either an Incentive Stock Option, in accordance with Section 422 of Code, or a Nonstatutory Option,
to purchase the Company's Stock that may be awarded to a Participant under the Plan. A Participant who receives an award of an
Option shall be referred to as an " Optionee ."

 

		(j)	" Participant " - A director, officer, employee or consultant of the Company to whom an Award has been made
under the Plan.

 

		(k)	" Restricted Stock Purchase Offer " - A Grant of the right to purchase a specified number of shares of Stock
pursuant to a written agreement issued under the Plan.

 

		(l)	" Securities Act " - The Securities Act of 1933, as amended from time to time.

 

		(m)	" Stock " - Authorized and issued or unissued shares of common stock of the Company.

 

		(n)	" Stock Award " - A Grant made under the Plan in stock or denominated in units of stock for which the Participant
is not obligated to pay additional consideration.

 

		2.	Administration. The Plan shall be administered by the
Board, provided however, that the Board may delegate such administration to the Committee. Subject to the provisions of the Plan,
the Board and/or the Committee shall have authority to (a) grant, in its discretion, Incentive Stock Options in accordance with
Section 422 of the Code, or Nonstatutory Options, Stock Awards or Restricted Stock Purchase Offers; (b) determine in good faith
the fair market value of the Stock covered by any Grant; (c) determine which eligible persons shall receive Grants and the number
of shares, restrictions, terms and conditions to be included in such Grants; (d) construe and interpret the Plan; (e) promulgate,
amend and rescind rules and regulations relating to its administration, and correct defects, omissions and inconsistencies in
the Plan or any Grant; (f) consistent with the Plan and with the consent of the Participant, as appropriate, amend any outstanding
Grant or amend the exercise date or dates thereof; (g) determine the duration and purpose of leaves of absence which may be granted
to Participants without constituting termination of their employment for the purpose of the Plan or any Grant; and (h) make all
other determinations necessary or advisable for the Plan's administration. The interpretation and construction by the Board of
any provisions of the Plan or selection of Participants shall be conclusive and final. No member of the Board or the Committee
shall be liable for any action or determination made in good faith with respect to the Plan or any Grant made thereunder.

 

    	 

    	 

    

 

		3.	Eligibility.

 

		(a)	General: The persons who shall be eligible to receive Grants shall be directors, officers, employees or consultants
to the Company. The term consultant shall mean any person, other than an employee, who is engaged by the Company to render services
and is compensated for such services. An Optionee may hold more than one Option. Any issuance of a Grant to an officer or director
of the Company subsequent to the first registration of any of the securities of the Company under the Exchange Act shall comply
with the requirements of Rule 16b-3 promulgated under the Exchange Act.

 

		(b)	Incentive Stock Options: Incentive Stock Options may only be issued to employees of the Company. Incentive Stock Options
may be granted to officers or directors, provided they are also employees of the Company. Payment of a director's fee shall not
be sufficient to constitute employment by the Company.

 

The Company shall not grant an
Incentive Stock Option under the Plan to any employee if such Grant would result in such employee holding the right to exercise
for the first time in any one calendar year, under all Incentive Stock Options granted under the Plan or any other plan maintained
by the Company, with respect to shares of Stock having an aggregate fair market value, determined as of the date of the Option
is granted, in excess of $100,000. Should it be determined that an Incentive Stock Option granted under the Plan exceeds such maximum
for any reason other than a failure in good faith to value the Stock subject to such option, the excess portion of such option
shall be considered a Nonstatutory Option. To the extent the employee holds two (2) or more such Options which become exercisable
for the first time in the same calendar year, the foregoing limitation on the exercisability of such Option as Incentive Stock
Options under the Federal tax laws shall be applied on the basis of the order in which such Options are granted. If, for any reason,
an entire Option does not qualify as an Incentive Stock Option by reason of exceeding such maximum, such Option shall be considered
a Nonstatutory Option.

 

		(c)	Nonstatutory Option: The provisions of the foregoing Section 3(b) shall not apply to any Option designated as a "
Nonstatutory Option " or which sets forth the intention of the parties that the Option be a Nonstatutory Option.

 

		(d)	Stock Awards and Restricted Stock Purchase Offers: The provisions of this Section 3 shall not apply to any Stock Award
or Restricted Stock Purchase Offer under the Plan.

 

		4.	Stock.

 

		(a)	Authorized Stock: Stock subject to Grants may be either unissued or reacquired Stock.

 

		(b)	Number of Shares: Subject to adjustment as provided in Section 5(i) of the Plan, the total number of shares of Stock
which may be purchased or granted directly by Options, Stock Awards or Restricted Stock Purchase Offers, or purchased indirectly
through exercise of Options granted under the Plan shall not exceed 250,000. If any Grant shall for any reason terminate
or expire, any shares allocated thereto but remaining unpurchased upon such expiration or termination shall again be available
for Grants with respect thereto under the Plan as though no Grant had previously occurred with respect to such shares. Any shares
of Stock issued pursuant to a Grant and repurchased pursuant to the terms thereof shall be available for future Grants as though
not previously covered by a Grant.

 

		(c)	Reservation of Shares: The Company shall reserve and keep available at all times during the term of the Plan such number
of shares as shall be sufficient to satisfy the requirements of the Plan. If, after reasonable efforts, which efforts shall not
include the registration of the Plan or Grants under the Securities Act, the Company is unable to obtain authority from any applicable
regulatory body, which authorization is deemed necessary by legal counsel for the Company for the lawful issuance of shares hereunder,
the Company shall be relieved of any liability with respect to its failure to issue and sell the shares for which such requisite
authority was so deemed necessary unless and until such authority is obtained.

 

		(d)	Application of Funds : The proceeds received by the Company from the sale of Stock pursuant to the exercise of Options
or rights under Stock Purchase Agreements will be used for general corporate purposes.

 

		(e)	No Obligation to Exercise : The issuance of a Grant shall impose no obligation upon the Participant to exercise any
rights under such Grant.

 

		5.	Terms and Conditions of Options. Options granted hereunder shall be evidenced by agreements between the Company and the respective
Optionees, in such form and substance as the Board or Committee shall from time to time approve. The form of Incentive Stock Option
Agreement attached hereto as Exhibit A and the three forms of a Nonstatutory Stock Option Agreement for employees, for directors
and for consultants, attached hereto as Exhibit B-1, Exhibit B-2 and Exhibit B-3, respectively, shall be deemed
to be approved by the Board. Option agreements need not be identical, and in each case may include such provisions as the Board
or Committee may determine, but all such agreements shall be subject to and limited by the following terms and conditions:

 

		(a)	Number of Shares: Each Option shall state the number of shares to which it pertains.

 

		(b)	Exercise Price: Each Option shall state the exercise price, which shall be determined as follows:

 

		(i)	Any Incentive Stock Option granted to a person who at the time the Option is granted owns (or is deemed to own pursuant to
Section 424(d) of the Code) stock possessing more than ten percent (10%) of the total combined voting power or value of all classes
of stock of the Company (" Ten Percent Holder ") shall have an exercise price of no less than 110% of the Fair
Market Value of the Stock as of the date of grant; and

 

    	 

    	 

    
 

		(ii)	Incentive Stock Options granted to a person who at the time the Option is granted is not a Ten Percent Holder shall have an
exercise price of no less than 100% of the Fair Market Value of the Stock as of the date of grant.

 

For the purposes of this Section 5(b), the Fair Market
Value shall be as determined by the Board in good faith, which determination shall be conclusive and binding; provided however,
that if there is a public market for such Stock, the Fair Market Value per share shall be the average of the bid and asked prices
(or the closing price if such stock is listed on the NASDAQ National Market System or Small Cap Issue Market) on the date of grant
of the Option, or if listed on a stock exchange, the closing price on such exchange on such date of grant.

 

		(c)	Medium and Time of Payment: The exercise price shall become immediately due upon exercise of the Option and shall be
paid in cash or check made payable to the Company. Should the Company's outstanding Stock be registered under Section 12(g) of
the Exchange Act at the time the Option is exercised, then the exercise price may also be paid as follows:

 

		(i)	in shares of Stock held by the Optionee for the requisite period necessary to avoid a charge to the Company's earnings for
financial reporting purposes and valued at Fair Market Value on the exercise date, or

 

		(ii)	through a special sale and remittance procedure pursuant to which the Optionee shall concurrently provide irrevocable written
instructions (a) to a Company designated brokerage firm to effect the immediate sale of the purchased shares and remit to the Company,
out of the sale proceeds available on the settlement date, sufficient funds to cover the aggregate exercise price payable for the
purchased shares plus all applicable Federal, state and local income and employment taxes required to be withheld by the Company
by reason of such purchase and (b) to the Company to deliver the certificates for the purchased shares directly to such brokerage
firm in order to complete the sale transaction.

 

At the discretion of the Board, exercisable either
at the time of Option grant or of Option exercise, the exercise price may also be paid (i) by Optionee's delivery of a promissory
note in form and substance satisfactory to the Company and permissible under applicable securities rules and bearing interest at
a rate determined by the Board in its sole discretion, but in no event less than the minimum rate of interest required to avoid
the imputation of compensation income to the Optionee under the Federal tax laws, or (ii) in such other form of consideration permitted
by the State of Nevada corporations law as may be acceptable to the Board.

 

		(d)	Term and Exercise of Options: Any Option granted to an employee of the Company shall become exercisable over a period
of no longer than five (5) years and no less than twenty percent (20%) of the shares covered thereby shall become exercisable annually
unless the Board determines otherwise. No Option shall be exercisable, in whole or in part, prior to one (1) year from the date
it is granted unless the Board shall specifically determine otherwise, as provided herein. In no event shall any Option be exercisable
after the expiration of ten (10) years from the date it is granted, and no Incentive Stock Option granted to a Ten Percent Holder
shall, by its terms, be exercisable after the expiration of five (5) years from the date of the Option. Unless otherwise specified
by the Board or the Committee in the resolution authorizing such Option, the date of grant of an Option shall be deemed to be the
date upon which the Board or the Committee authorizes the granting of such Option.

 

Each Option shall be exercisable to the nearest whole share,
in installments or otherwise, as the respective Option agreements may provide. During the lifetime of an Optionee, the Option shall
be exercisable only by the Optionee and shall not be assignable or transferable by the Optionee, and no other person shall acquire
any rights therein. To the extent not exercised, installments (if more than one) shall accumulate, but shall be exercisable, in
whole or in part, only during the period for exercise as stated in the Option agreement, whether or not other installments are
then exercisable.

 

		(e)	Termination of Status as Employee, Consultant or Director: If Optionee's status as an employee shall terminate for any
reason other than Optionee's disability or death, then Optionee (or if the Optionee shall die after such termination, but prior
to exercise, Optionee's personal representative or the person entitled to succeed to the Option) shall have the right to exercise
the portions of any of Optionee's Incentive Stock Options which were exercisable as of the date of such termination, in whole or
in part, not less than 30 days nor more than three (3) months after such termination (or, in the event of " termination
for good cause " as that term is defined in Nevada case law related thereto, or by the terms of the Plan or the Option
Agreement or an employment agreement, the Option shall automatically terminate as of the termination of employment as to all shares
covered by the Option).

 

With respect to Nonstatutory Options granted to employees, directors
or consultants, the Board may specify such period for exercise, not less than 30 days (except that in the case of " termination
for cause " or removal of a director, the Option shall automatically terminate as of the termination of employment or
services as to shares covered by the Option, following termination of employment or services as the Board deems reasonable and
appropriate. The Option may be exercised only with respect to installments that the Optionee could have exercised at the date of
termination of employment or services. Nothing contained herein or in any Option granted pursuant hereto shall be construed to
affect or restrict in any way the right of the Company to terminate the employment or services of an Optionee with or without cause.

 

		(f)	Disability of Optionee: If an Optionee is disabled (within the meaning of Section 22(e)(3) of the Code) at the time
of termination, the three (3) month period set forth in Section 5(e) shall be a period, as determined by the Board and set forth
in the Option, of not less than six months nor more than one year after such termination.

 

    	 

    	 

    

 

		(g)	Death of Optionee: If an Optionee dies while employed by, engaged as a consultant to, or serving as a Director of the
Company, the portion of such Optionee's Option which was exercisable at the date of death may be exercised, in whole or in part,
by the estate of the decedent or by a person succeeding to the right to exercise such Option at any time within (i) a period, as
determined by the Board and set forth in the Option, of not less than six (6) months nor more than one (1) year after Optionee's
death, which period shall not be more, in the case of a Nonstatutory Option, than the period for exercise following termination
of employment or services, or (ii) during the remaining term of the Option, whichever is the lesser. The Option may be so exercised
only with respect to installments exercisable at the time of Optionee's death and not previously exercised by the Optionee.

 

		(h)	Nontransferability of Option: No Option shall be transferable by the Optionee, except by will or by the laws of descent
and distribution.

 

		(i)	Recapitalization: Subject to any required action of shareholders, the number of shares of Stock covered by each outstanding
Option, and the exercise price per share thereof set forth in each such Option, shall be proportionately adjusted for any increase
or decrease in the number of issued shares of Stock of the Company resulting from a stock split, stock dividend, combination, subdivision
or reclassification of shares, or the payment of a stock dividend, or any other increase or decrease in the number of such shares
affected without receipt of consideration by the Company; provided, however, the conversion of any convertible securities of the
Company shall not be deemed to have been " effected without receipt of consideration " by the Company.

 

In the event of a proposed dissolution or liquidation of the
Company, a merger or consolidation in which the Company is not the surviving entity, or a sale of all or substantially all of the
assets or capital stock of the Company (collectively, a " Reorganization "), unless otherwise provided by the
Board, this Option shall terminate immediately prior to such date as is determined by the Board, which date shall be no later than
the consummation of such Reorganization. In such event, if the entity which shall be the surviving entity does not tender to Optionee
an offer, for which it has no obligation to do so, to substitute for any unexercised Option a stock option or capital stock of
such surviving of such surviving entity, as applicable, which on an equitable basis shall provide the Optionee with substantially
the same economic benefit as such unexercised Option, then the Board may grant to such Optionee, in its sole and absolute discretion
and without obligation, the right for a period commencing thirty (30) days prior to and ending immediately prior to the date determined
by the Board pursuant hereto for termination of the Option or during the remaining term of the Option, whichever is the lesser,
to exercise any unexpired Option or Options without regard to the installment provisions of Paragraph 6(d) of the Plan; provided,
that any such right granted shall be granted to all Optionees not receiving an offer to receive substitute options on a consistent
basis, and provided further, that any such exercise shall be subject to the consummation of such Reorganization.

 

Subject to any required action of shareholders,
if the Company shall be the surviving entity in any merger or consolidation, each outstanding Option thereafter shall pertain to
and apply to the securities to which a holder of shares of Stock equal to the shares subject to the Option would have been entitled
by reason of such merger or consolidation.

 

In the event of a change in the Stock of
the Company as presently constituted, which is limited to a change of all of its authorized shares without par value into the same
number of shares with a par value, the shares resulting from any such change shall be deemed to be the Stock within the meaning
of the Plan.

 

To the extent that the foregoing adjustments
relate to stock or securities of the Company, such adjustments shall be made by the Board, whose determination in that respect
shall be final, binding and conclusive.

 

Except as expressly provided in this Section
5(i), the Optionee shall have no rights by reason of any subdivision or consolidation of shares of stock of any class or the payment
of any stock dividend or any other increase or decrease in the number of shares of stock of any class, and the number or price
of shares of Stock subject to any Option shall not be affected by, and no adjustment shall be made by reason of, any dissolution,
liquidation, merger, consolidation or sale of assets or capital stock, or any issue by the Company of shares of stock of any class
or securities convertible into shares of stock of any class.

 

The Grant of an Option pursuant to the Plan
shall not affect in any way the right or power of the Company to make any adjustments, reclassifications, reorganizations or changes
in its capital or business structure or to merge, consolidate, dissolve, or liquidate or to sell or transfer all or any part of
its business or assets.

 

		(j)	Rights as a Shareholder: An Optionee shall have no rights as a shareholder with respect to any shares covered by an
Option until the effective date of the issuance of the shares following exercise of such Option by Optionee. No adjustment shall
be made for dividends (ordinary or extraordinary, whether in cash, securities or other property) or distributions or other rights
for which the record date is prior to the date such stock certificate is issued, except as expressly provided in Section 5(i) hereof.

 

		(k)	Modification, Acceleration, Extension, and Renewal of Options: Subject to the terms and conditions and within the limitations
of the Plan, the Board may modify an Option, or, once an Option is exercisable, accelerate the rate at which it may be exercised,
and may extend or renew outstanding Options granted under the Plan or accept the surrender of outstanding Options (to the extent
not theretofore exercised) and authorize the granting of new Options in substitution for such Options, provided such action is
permissible under Section 422 of the Code and applicable state securities rules. Notwithstanding the provisions of this Section
5(k), however, no modification of an Option shall, without the consent of the Optionee, alter to the Optionee's detriment or impair
any rights or obligations under any Option theretofore granted under the Plan.

 

    	 

    	 

    

 

		(l)	Exercise Before Exercise Date: At the discretion of the Board, the Option may, but need not, include a provision whereby
the Optionee may elect to exercise all or any portion of the Option prior to the stated exercise date of the Option or any installment
thereof. Any shares so purchased prior to the stated exercise date shall be subject to repurchase by the Company upon termination
of Optionee's employment as contemplated by Section 5(n) hereof prior to the exercise date stated in the Option and such other
restrictions and conditions as the Board or Committee may deem advisable.

 

		(m)	Other Provisions: The Option agreements authorized under the Plan shall contain such other provisions, including, without
limitation, restrictions upon the exercise of the Options, as the Board or the Committee shall deem advisable. Shares shall not
be issued pursuant to the exercise of an Option, if the exercise of such Option or the issuance of shares thereunder would violate,
in the opinion of legal counsel for the Company, the provisions of any applicable law or the rules or regulations of any applicable
governmental or administrative agency or body, such as the Code, the Securities Act, the Exchange Act, applicable state securities
rules, Nevada corporation law, and the rules promulgated under the foregoing or the rules and regulations of any exchange upon
which the shares of the Company are listed. Without limiting the generality of the foregoing, the exercise of each Option shall
be subject to the condition that if at any time the Company shall determine that (i) the satisfaction of withholding tax or other
similar liabilities, or (ii) the listing, registration or qualification of any shares covered by such exercise upon any securities
exchange or under any state or federal law, or (iii) the consent or approval of any regulatory body, or (iv) the perfection of
any exemption from any such withholding, listing, registration, qualification, consent or approval is necessary or desirable in
connection with such exercise or the issuance of shares thereunder, then in any such event, such exercise shall not be effective
unless such withholding, listing registration, qualification, consent, approval or exemption shall have been effected, obtained
or perfected free of any conditions not acceptable to the Company.

 

		(n)	Repurchase Agreement: The Board may, in its discretion, require as a condition to the Grant of an Option hereunder,
that an Optionee execute an agreement with the Company, in form and substance satisfactory to the Board in its discretion ("Repurchase
Agreement "), (i) restricting the Optionee's right to transfer shares purchased under such Option without first offering
such shares to the Company or another shareholder of the Company upon the same terms and conditions as provided therein; and (ii)
providing that upon termination of Optionee's employment with the Company, for any reason, the Company (or another shareholder
of the Company, as provided in the Repurchase Agreement) shall have the right at its discretion (or the discretion of such other
shareholders) to purchase and/or redeem all such shares owned by the Optionee on the date of termination of his or her employment
at a price equal to: (A) the fair value of such shares as of such date of termination; or (B) if such repurchase right lapses at
20% of the number of shares per year, the original purchase price of such shares, and upon terms of payment permissible under applicable
state securities rules; provided that in the case of Options or Stock Awards granted to officers, directors, consultants or affiliates
of the Company, such repurchase provisions may be subject to additional or greater restrictions as determined by the Board or Committee.

 

		6.	Stock Awards and Restricted Stock Purchase Offers.

 

		(a)	Types of Grants.

 

		(i)	Stock Award. All or part of any Stock Award under the Plan may be subject to conditions established by the Board or
the Committee, and set forth in the Stock Award Agreement, which may include, but are not limited to, continuous service with the
Company, achievement of specific business objectives, increases in specified indices, attaining growth rates and other comparable
measurements of Company performance. Such Awards may be based on Fair Market Value or other specified valuation.

 

		(ii)	Restricted Stock Purchase Offer. A Grant of a Restricted Stock Purchase Offer under the Plan shall be subject to such
(i) vesting contingencies related to the Participant's continued association with the Company for a specified time and (ii) other
specified conditions as the Board or Committee shall determine, in their sole discretion, consistent with the provisions of the
Plan.

 

		(b)	Conditions and Restrictions. Shares of Stock which Participants may receive as a Stock Award under a Stock Award Agreement
or Restricted Stock Purchase Offer under a Restricted Stock Purchase Offer may include such restrictions as the Board or Committee,
as applicable, shall determine, including restrictions on transfer, repurchase rights, right of first refusal, and forfeiture provisions.
When transfer of Stock is so restricted or subject to forfeiture provisions it is referred to as "Restricted Stock
". Further, with Board or Committee approval, Stock Awards or Restricted Stock Purchase Offers may be deferred, either in
the form of installments or a future lump sum distribution. The Board or Committee may permit selected Participants to elect to
defer distributions of Stock Awards or Restricted Stock Purchase Offers in accordance with procedures established by the Board
or Committee to assure that such deferrals comply with applicable requirements of the Code including, at the choice of Participants,
the capability to make further deferrals for distribution after retirement. Any deferred distribution, whether elected by the Participant
or specified by the Stock Award Agreement, Restricted Stock Purchase Offers or by the Board or Committee, may require the payment
be forfeited in accordance with the provisions of Section 6(c). Dividends or dividend equivalent rights may be extended to and
made part of any Stock Award or Restricted Stock Purchase Offers denominated in Stock or units of Stock, subject to such terms,
conditions and restrictions as the Board or Committee may establish.

 

		(c)	Cancellation and Rescission of Grants. Unless the Stock Award Agreement or Restricted Stock Purchase Offer specifies
otherwise, the Board or Committee, as applicable, may cancel any unexpired, unpaid, or deferred Grants at any time if the Participant
is not in compliance with all other applicable provisions of the Stock Award Agreement or Restricted Stock Purchase Offer, the
Plan and with the following conditions:

 

    	 

    	 

    

 

		(i)	A Participant shall not render services for any organization or engage directly or indirectly in any business which, in the
judgment of the chief executive officer of the Company or other senior officer designated by the Board or Committee, is or becomes
competitive with the Company, or which organization or business, or the rendering of services to such organization or business,
is or becomes otherwise prejudicial to or in conflict with the interests of the Company. For Participants whose employment has
terminated, the judgment of the chief executive officer shall be based on the Participant's position and responsibilities while
employed by the Company, the Participant's post-employment responsibilities and position with the other organization or business,
the extent of past, current and potential competition or conflict between the Company and the other organization or business, the
effect on the Company's customers, suppliers and competitors and such other considerations as are deemed relevant given the applicable
facts and circumstances. A Participant who has retired shall be free, however, to purchase as an investment or otherwise, stock
or other securities of such organization or business so long as they are listed upon a recognized securities exchange or traded
over-the-counter, and such investment does not represent a substantial investment to the Participant or a greater than ten percent
(10%) equity interest in the organization or business.

 

		(ii)	A Participant shall not, without prior written authorization from the Company, disclose to anyone outside the Company, or use
in other than the Company's business, any confidential information or material relating to the business of the Company, acquired
by the Participant either during or after employment with the Company.

 

		(iii)	A Participant shall disclose promptly and assign to the Company all right, title and interest in any invention or idea, patentable
or not, made or conceived by the Participant during employment by the Company, relating in any manner to the actual or anticipated
business, research or development work of the Company and shall do anything reasonably necessary to enable the Company to secure
a patent where appropriate in the United States and in foreign countries.

 

		(iv)	Upon exercise, payment or delivery pursuant to a Grant, the Participant shall certify on a form acceptable to the Committee
that he or she is in compliance with the terms and conditions of the Plan. Failure to comply with all of the provisions of this
Section 6(c) prior to, or during the six months after, any exercise, payment or delivery pursuant to a Grant shall cause such exercise,
payment or delivery to be rescinded. The Company shall notify the Participant in writing of any such rescission within two years
after such exercise, payment or delivery. Within ten days after receiving such a notice from the Company, the Participant shall
pay to the Company the amount of any gain realized or payment received as a result of the rescinded exercise, payment or delivery
pursuant to a Grant. Such payment shall be made either in cash or by returning to the Company the number of shares of Stock that
the Participant received in connection with the rescinded exercise, payment or delivery.

 

		(d)	Nonassignability.

 

		(i)	Except pursuant to Section 6(e)(iii) and except as set forth in Section 6(d)(ii), no Grant or any other benefit under the Plan
shall be assignable or transferable, or payable to or exercisable by, anyone other than the Participant to whom it was granted.

 

		(ii)	Where a Participant terminates employment and retains a Grant pursuant to Section 6(e)(ii) in order to assume a position with
a governmental, charitable or educational institution, the Board or Committee, in its discretion and to the extent permitted by
law, may authorize a third party (including but not limited to the trustee of a "blind" trust), acceptable to the applicable
governmental or institutional authorities, the Participant and the Board or Committee, to act on behalf of the Participant with
regard to such Awards.

 

		(e)	Termination of Employment. If the employment or service to the Company of a Participant terminates, other than pursuant
to any of the following provisions under this Section 6(e), all unexercised, deferred and unpaid Stock Awards or Restricted Stock
Purchase Offers shall be cancelled immediately, unless the Stock Award Agreement or Restricted Stock Purchase Offer provides otherwise:

 

		(i)	Retirement Under a Company Retirement Plan. When a Participant's employment terminates as a result of retirement in
accordance with the terms of a Company retirement plan, the Board or Committee may permit Stock Awards or Restricted Stock Purchase
Offers to continue in effect beyond the date of retirement in accordance with the applicable Grant Agreement and the exercisability
and vesting of any such Grants may be accelerated.

 

		(ii)	Rights in the Best Interests of the Company. When a Participant resigns from the Company and, in the judgment of the
Board or Committee, the acceleration and/or continuation of outstanding Stock Awards or Restricted Stock Purchase Offers would
be in the best interests of the Company, the Board or Committee may (i) authorize, where appropriate, the acceleration and/or continuation
of all or any part of Grants issued prior to such termination and (ii) permit the exercise, vesting and payment of such Grants
for such period as may be set forth in the applicable Grant Agreement, subject to earlier cancellation pursuant to Section 9 or
at such time as the Board or Committee shall deem the continuation of all or any part of the Participant's Grants are not in the
Company's best interest.

 

    	 

    	 

    

 

		(iii)	Death or Disability of a Participant.

 

		(1)	In the event of a Participant's death, the Participant's estate or beneficiaries shall have a period up to the expiration date
specified in the Grant Agreement within which to receive or exercise any outstanding Grant held by the Participant under such terms
as may be specified in the applicable Grant Agreement. Rights to any such outstanding Grants shall pass by will or the laws of
descent and distribution in the following order: (a) to beneficiaries so designated by the Participant; if none, then (b) to a
legal representative of the Participant; if none, then (c) to the persons entitled thereto as determined by a court of competent
jurisdiction. Grants so passing shall be made at such times and in such manner as if the Participant were living.

 

		(2)	In the event a Participant is deemed by the Board or Committee to be unable to perform his or her usual duties by reason of
mental disorder or medical condition which does not result from facts which would be grounds for termination for cause, Grants
and rights to any such Grants may be paid to or exercised by the Participant, if legally competent, or a committee or other legally
designated guardian or representative if the Participant is legally incompetent by virtue of such disability.

 

		(3)	After the death or disability of a Participant, the Board or Committee may in its sole discretion at any time (1) terminate
restrictions in Grant Agreements; (2) accelerate any or all installments and rights; and (3) instruct the Company to pay the total
of any accelerated payments in a lump sum to the Participant, the Participant's estate, beneficiaries or representative; notwithstanding
that, in the absence of such termination of restrictions or acceleration of payments, any or all of the payments due under the
Grant might ultimately have become payable to other beneficiaries.

 

		(4)	In the event of uncertainty as to interpretation of or controversies concerning this Section 6, the determinations of the Board
or Committee, as applicable, shall be binding and conclusive.

 

		7.	Investment Intent. All Grants under the Plan are intended to be exempt from registration under the Securities Act provided
by Rule 701 thereunder. Unless and until the granting of Options or sale and issuance of Stock subject to the Plan are registered
under the Securities Act or shall be exempt pursuant to the rules promulgated thereunder, each Grant under the Plan shall provide
that the purchases or other acquisitions of Stock thereunder shall be for investment purposes and not with a view to, or for resale
in connection with, any distribution thereof. Further, unless the issuance and sale of the Stock have been registered under the
Securities Act, each Grant shall provide that no shares shall be purchased upon the exercise of the rights under such Grant unless
and until (i) all then applicable requirements of state and federal laws and regulatory agencies shall have been fully complied
with to the satisfaction of the Company and its counsel, and (ii) if requested to do so by the Company, the person exercising the
rights under the Grant shall (i) give written assurances as to knowledge and experience of such person (or a representative employed
by such person) in financial and business matters and the ability of such person (or representative) to evaluate the merits and
risks of exercising the Option, and (ii) execute and deliver to the Company a letter of investment intent and/or such other form
related to applicable exemptions from registration, all in such form and substance as the Company may require. If shares are issued
upon exercise of any rights under a Grant without registration under the Securities Act, subsequent registration of such shares
shall relieve the purchaser thereof of any investment restrictions or representations made upon the exercise of such rights.

 

		8.	Amendment, Modification, Suspension or Discontinuance of the Plan. The Board may, insofar as permitted by law, from time to
time, with respect to any shares at the time not subject to outstanding Grants, suspend or terminate the Plan or revise or amend
it in any respect whatsoever, except that without the approval of the shareholders of the Company, no such revision or amendment
shall (i) increase the number of shares subject to the Plan, (ii) decrease the price at which Grants may be granted, (iii) materially
increase the benefits to Participants, or (iv) change the class of persons eligible to receive Grants under the Plan; provided,
however, no such action shall alter or impair the rights and obligations under any Option, or Stock Award, or Restricted Stock
Purchase Offer outstanding as of the date thereof without the written consent of the Participant thereunder. No Grant may be issued
while the Plan is suspended or after it is terminated, but the rights and obligations under any Grant issued while the Plan is
in effect shall not be impaired by suspension or termination of the Plan.

 

In the event of any change in the outstanding Stock by reason
of a stock split, stock dividend, combination or reclassification of shares, recapitalization, merger, or similar event, the Board
or the Committee may adjust proportionally (a) the number of shares of Stock (i) reserved under the Plan, (ii) available for Incentive
Stock Options and Nonstatutory Options and (iii) covered by outstanding Stock Awards or Restricted Stock Purchase Offers; (b) the
Stock prices related to outstanding Grants; and (c) the appropriate Fair Market Value and other price determinations for such Grants.
In the event of any other change affecting the Stock or any distribution (other than normal cash dividends) to holders of Stock,
such adjustments as may be deemed equitable by the Board or the Committee, including adjustments to avoid fractional shares, shall
be made to give proper effect to such event. In the event of a corporate merger, consolidation, acquisition of property or stock,
separation, reorganization or liquidation, the Board or the Committee shall be authorized to issue or assume stock options, whether
or not in a transaction to which Section 424(a) of the Code applies, and other Grants by means of substitution of new Grant Agreements
for previously issued Grants or an assumption of previously issued Grants.

 

		9.	Tax Withholding. The Company shall have the right to deduct applicable taxes from any Grant payment and withhold, at the time
of delivery or exercise of Options, Stock Awards or Restricted Stock Purchase Offers or vesting of shares under such Grants, an
appropriate number of shares for payment of taxes required by law or to take such other action as may be necessary in the opinion
of the Company to satisfy all obligations for withholding of such taxes. If Stock is used to satisfy tax withholding, such stock
shall be valued based on the Fair Market Value when the tax withholding is required to be made.

 

		10.	Availability of Information. During the term of the Plan and any additional period during which a Grant granted pursuant to
the Plan shall be exercisable, the Company shall make available, not later than one hundred and twenty (120) days following the
close of each of its fiscal years, such financial and other information regarding the Company as is required by the bylaws of the
Company and applicable law to be furnished in an annual report to the shareholders of the Company.

 

    	 

    	 

    

 

		11.	Notice. Any written notice to the Company required by any of the provisions of the Plan shall be addressed to the chief financial
officer or to the chief executive officer of the Company, and shall become effective when it is received by the office of the chief
personnel officer or the chief executive officer.

 

		12.	Indemnification of Board. In addition to such other rights or indemnifications as they may have as directors or otherwise,
and to the extent allowed by applicable law, the members of the Board and the Committee shall be indemnified by the Company against
the reasonable expenses, including attorneys' fees, actually and necessarily incurred in connection with the defense of any claim,
action, suit or proceeding, or in connection with any appeal thereof, to which they or any of them may be a party by reason of
any action taken, or failure to act, under or in connection with the Plan or any Grant granted thereunder, and against all amounts
paid by them in settlement thereof (provided such settlement is approved by independent legal counsel selected by the Company)
or paid by them in satisfaction of a judgment in any such claim, action, suit or proceeding, except in any case in relation to
matters as to which it shall be adjudged in such claim, action, suit or proceeding that such Board or Committee member is liable
for negligence or misconduct in the performance of his or her duties; provided that within sixty (60) days after institution of
any such action, suit or Board proceeding the member involved shall offer the Company, in writing, the opportunity, at its own
expense, to handle and defend the same.

 

		13.	Governing Law. The Plan and all determinations made and actions taken pursuant hereto, to the extent not otherwise governed
by the Code or the securities laws of the United States, shall be governed by the law of the State of Nevada and construed accordingly.

 

		14.	Effective and Termination Dates. The Plan shall become effective on the date it is approved by the holders of a majority of
the shares of Stock then outstanding. The Plan shall terminate ten years later, subject to earlier termination by the Board pursuant
to Section 8.

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