Document:

PURCHASE AGREEMENT

 

THIS PURCHASE AGREEMENT,
dated as of May 6, 2014, is entered into by and among Inergetics, Inc., (the “Company”), and Black Mountain Equities,
Inc. (the “Purchaser”).

 

WITNESSETH:

 

WHEREAS, the Company
and the Purchaser are executing and delivering this Agreement in accordance with and in reliance upon the exemption from securities
registration for offers and sales to accredited investors afforded, inter alia, by Rule 506 under Regulation D (“Regulation
D”) as promulgated by the United States Securities and Exchange Commission (the “SEC”) under the Securities Act
of 1933, as amended (the “1933 Act”), and/or Section 4(a)(2) of the 1933 Act; and

 

WHEREAS, the Purchaser
wishes to purchase a Convertible Promissory Note of the Company (the “Note”), subject to and upon the terms and conditions
of this Agreement and acceptance of this Agreement by the Company, on the terms and conditions referred to herein.

 

WHEREAS, in connection
with such purchase, the Company has agreed to issue to the Purchaser 200,000 shares of restricted common stock of the Company (the
“Purchase Shares”) on the terms and conditions referred to herein and,

 

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

 

1.          AGREEMENT
TO PURCHASE; PURCHASE PRICE.

 

a.           Purchase.

 

(i)          Subject
to the terms and conditions of this Agreement and the other Transaction Documents, the Purchaser hereby agrees to purchase (i)
a Note in the amount of $110,000 (the “Principal Amount”), and (ii) the Purchase Shares in exchange for $100,000 (the
“Purchase Price”), which Securities (as defined herein) shall be purchased on the Closing Date as described therein.

 

(ii)         The
Note referred to herein shall be in the form of Annex I annexed hereto.

 

(iii)        The
purchase of the Securities by the Purchaser and the other transactions contemplated hereby are sometimes referred to herein and
in the other Transaction Documents as the purchase and sale of the Securities (as defined below), and are referred to collectively
as the “Transactions”.

 

b.           Certain
Definitions.   As used herein, each of the following terms has the meaning
set forth below, unless the context otherwise requires:

 

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“1934
Act” means the Securities Exchange Act of 1934, as amended.

 

“Affiliate”
means, with respect to a specific Person referred to in the relevant provision, another Person who or which controls or is controlled
by or is under common control with such specified Person.         

 

“Certificate”
means the original signed Note duly executed by the Company.

 

“Closing Date”
means the date of the closing of the issuance of Securities.

 

“Company Control
Person” means each director, executive officer, promoter, and such other Persons as may be deemed in control of the Company
pursuant to Rule 405 under the 1933 Act or Section 20 of the 1934 Act.

 

“Conversion Shares”
means shares of Common Stock underlying and issuable upon conversions of the Note.

 

“Holder”
means the Person holding the relevant Securities at the relevant time.

 

“Last Audited Date”
means December 31, 2013.

 

“Purchaser Control
Person” means each director, executive officer, promoter, and such other Persons as may be deemed in control of the Purchaser
pursuant to Rule 405 under the 1933 Act or Section 20 of the 1934 Act.

 

“Material Adverse
Effect” means an event or combination of events, which individually or in the aggregate, would reasonably be expected to
(w) adversely affect the legality, validity or enforceability of the Securities or any of the Transaction Documents, (x) have or
result in a material adverse effect on the results of operations, assets, prospects, or condition (financial or otherwise) of the
Company and its subsidiaries, taken as a whole, or (y) adversely impair the Company's ability to perform fully on a timely basis
its obligations under any of the Transaction Documents or the transactions contemplated thereby.

 

“Person”
means any living person or any entity, such as, but not necessarily limited to, a corporation, partnership or trust.

 

“Principal Trading
Market” means the OTC Bulletin Board or such other market on which the Common Stock is principally traded at the relevant
time.

 

“Securities”
means the Purchase Shares, the Note, the Conversion Shares, and any shares of common stock of the Company that may be issued to
the Purchaser in connection with any other agreements between the parties.

 

“State of Incorporation”
means Delaware.

 

“Subsidiary”
means any subsidiary of the Company.

 

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“Trading Day”
means any day during which the Principal Trading Market shall be open for business.

 

“Transfer Agent”
means, at any time, the transfer agent for the Company’s Common Stock.

 

“Transaction Documents”
means this Purchase Agreement and the Note, and includes all ancillary documents referred to in those agreements.

 

c.           Form
of Payment; Delivery of Certificates and Purchase Shares.

 

(i)          The
Purchaser shall pay the Purchase Price by wire transfer of immediately available good funds in United States Dollars to the Company
on the Closing Date.

 

(ii)         On
the Closing Date, the Company shall deliver (i) the Note, duly executed on behalf of the Company and (ii) the Purchase Shares,
to the Purchaser.

 

(iii)        By
signing this Agreement, each of the Purchaser and the Company agrees to all of the terms and conditions of the Transaction Documents,
all of the provisions of which are incorporated herein by this reference as if set forth in full.

 

d.           Method
of Payment. Payment of the Purchase Price shall be made by wire transfer of funds as directed to the Purchaser by the Company.

 

2. PURCHASER REPRESENTATIONS,
WARRANTIES, ETC.; ACCESS TO INFORMATION; INDEPENDENT INVESTIGATION.

 

The Purchaser represents
and warrants to, and covenants and agrees with, the Company as follows:

 

a.           Without
limiting Purchaser's right to sell the Securities pursuant to an effective registration statement or otherwise in compliance with
the 1933 Act, the Purchaser is purchasing the Securities for its own account for investment only and not with a view towards the
public sale or distribution thereof and not with a view to or for sale in connection with any distribution thereof.

 

b.           The
Purchaser is (i) an “accredited investor” as that term is defined in Rule 501 of the General Rules and Regulations
under the 1933 Act by reason of Rule 501(a)(3), (ii) experienced in making investments of the kind described in this Agreement
and the related documents, (iii) able, by reason of the business and financial experience of its officers (if an entity) and professional
advisors (who are not affiliated with or compensated in any way by the Company or any of its Affiliates or selling agents), to
protect its own interests in connection with the transactions described in this Agreement, and the related documents, and to evaluate
the merits and risks of an investment in the Securities, and (iv) able to afford the entire loss of its investment in the Securities.

 

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c.           All
subsequent offers and sales of the Securities by the Purchaser shall be made pursuant to registration of the relevant Securities
under the 1933 Act or pursuant to an exemption from registration and, in this regard, should such offers and sales be made pursuant
to Rule 144 under promulgated under the 1933 Act, no such offer or sale shall occur on any date that the Company is not in compliance
with its requirement to file Forms 10-K or 10-Q with the SEC, regardless of whether the Securities (in what ever form) contain
a restrictive legend or electronic notation.

 

d.           The
Purchaser understands that the Securities are being offered and sold to it in reliance on specific exemptions from the registration
requirements of the 1933 Act and state securities laws and that the Company is relying upon the truth and accuracy of, and the
Purchaser's compliance with, the representations, warranties, agreements, acknowledgments and understandings of the Purchaser set
forth herein in order to determine the availability of such exemptions and the eligibility of the Purchaser to acquire the Securities.

 

e.           The
Purchaser and its advisors, if any, have been furnished with or have been given access to all materials relating to the business,
finances and operations of the Company and materials relating to the offer and sale of the Securities which have been requested
by the Purchaser, including those set forth on in any annex attached hereto. The Purchaser and its advisors, if any, have been
afforded the opportunity to ask questions of the Company and its management and have received complete and satisfactory answers
to any such inquiries. Without limiting the generality of the foregoing, the Purchaser has also had the opportunity to obtain and
to review the Company's filings on EDGAR (collectively, the “Company's SEC Documents”).

 

f.            The
Purchaser understands that its investment in the Securities involves a high degree of risk.

 

g.           The
Purchaser hereby represents that, in connection with its purchase of the Securities, it has not relied on any statement or representation
by the Company or any of its officers, directors and employees or any of their respective attorneys or agents, except as specifically
set forth herein.

 

h.           The
Purchaser understands that no United States federal or state agency or any other government or governmental agency has passed on
or made any recommendation or endorsement of the Securities.

 

i.            This
Agreement and the other Transaction Documents to which the Purchaser is a party, and the transactions contemplated thereby, have
been duly and validly authorized, executed and delivered on behalf of the Purchaser and are valid and binding agreements of the
Purchaser enforceable in accordance with their respective terms, subject as to enforceability to general principles of equity and
to bankruptcy, insolvency, moratorium and other similar laws affecting the enforcement of creditors' rights generally.

 

j.            The
Purchaser has not directly or indirectly, nor has any Person acting on behalf of or pursuant to any understanding with the Purchaser,
engaged in any transactions in the securities of the Company (including, without limitation, any Short Sales (as defined below)
involving the Company’s securities) during the period commencing as of the time that the Purchaser was first contacted regarding
the specific investment in the Company contemplated by this Agreement and ending immediately prior to the execution of this Agreement
by the Purchaser (it being understood and agreed that for all purposes of this Agreement, and, without implication that the contrary
would otherwise be true, that neither transactions nor purchases nor sales shall include the location and/or reservation of borrowable
shares of Common Stock). “Short Sales” means all “short sales” as defined in Rule 200 promulgated
under Regulation SHO under the 1934 Act.

 

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3.          COMPANY
REPRESENTATIONS, ETC.  The Company represents and warrants to the Purchaser as of the date hereof and as of the Closing Date.

 

a.           Rights
of Others Affecting the Transactions. There are no preemptive rights of any shareholder of the Company, as such, to acquire
the Note, or any shares of the Company’s common stock that may be issued to the Purchaser in connection with any other agreements
between the parties, in the event such shares are issued. No party other than a Purchaser has a currently exercisable right of
first refusal which would be applicable to any or all of the transactions contemplated by the Transaction Documents.

 

b.           Status.
The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Incorporation
and has the requisite corporate power to own its properties and to carry on its business as now being conducted. The Company is
duly qualified as a foreign corporation to do business and is in good standing in each jurisdiction where the nature of the business
conducted or property owned by it makes such qualification necessary, other than those jurisdictions in which the failure to so
qualify would not have or result in a Material Adverse Effect. The Company has registered its stock and is obligated to file reports
pursuant to Section 12 or Section 15(d) of the 1934 Act. The Common Stock is, or immediately following the Closing Date will be,
quoted on the Principal Trading Market. The Company has received no notice, either oral or written, with respect to the continued
eligibility of the Common Stock for such quotation on the Principal Trading Market, and the Company has maintained all requirements
on its part for the continuation of such quotation.

 

c.           Authorized
Shares.

 

(i)          The
authorized capital stock of the Company as of the date hereof consists of: (i) 2,000,000,000 shares of Common Stock, $0.001 par
value of which 77,679,614 common shares are outstanding and (ii) 500,000 shares of Preferred Stock, $1.00 par value of which the
following are outstanding: 65,141 shares of Series B, 64,763 shares of Series C, and 205,570 shares of Series G.

 

(ii)         The
Company has sufficient authorized and unissued shares of Common Stock as may be necessary to effect the issuance of the Conversion
Shares on the Closing Date.

 

(iii)        As
of the Closing Date, the Conversion Shares shall have been duly authorized by all necessary corporate action on the part of the
Company, and, when issued pursuant to the relevant provisions of the Transaction Documents, in each case in accordance with their
respective terms, will be duly and validly issued, fully paid and non-assessable and will not subject the Holder thereof to personal
liability by reason of being such Holder.

 

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d.           Transaction
Documents and Stock. This Agreement and each of the other Transaction Documents, and the transactions contemplated thereby,
have been duly and validly authorized by the Company, this Agreement has been duly executed and delivered by the Company and this
Agreement is, and the Note and each of the other Transaction Documents, when executed and delivered by the Company, will be, valid
and binding agreements of the Company enforceable in accordance with their respective terms, subject as to enforceability to general
principles of equity and to bankruptcy, insolvency, moratorium, and other similar laws affecting the enforcement of creditors'
rights generally.

 

e.           Non-contravention.
The execution and delivery of this Agreement and each of the other Transaction Documents by the Company, the issuance of the
Securities, and the consummation by the Company of the other transactions contemplated by this Agreement, each of the Note and
the other Transaction Documents do not and will not conflict with or result in a breach by the Company of any of the terms or provisions
of, or constitute a default under (i) the certificate of incorporation or by-laws of the Company, each as currently in effect,
(ii) any indenture, mortgage, deed of trust, or other material agreement or instrument to which the Company is a party or by which
it or any of its properties or assets are bound, including any listing agreement for the Common Stock except as herein set forth,
or (iii) subject to the Required Approvals (as hereinafter defined), to its knowledge, any existing applicable law, rule, or regulation
or any applicable decree, judgment, or order of any court, United States federal or state regulatory body, administrative agency,
or other governmental body having jurisdiction over the Company or any of its properties or assets, except such conflict, breach
or default which would not have or result in a Material Adverse Effect.

 

f.            Approvals.
No authorization, approval or consent of any court, governmental body, regulatory agency, self-regulatory organization, or stock
exchange or market or the shareholders of the Company is required to be obtained by the Company for the issuance and sale of the
Securities to the Purchaser as contemplated by this Agreement, other than the filing of the listing of additional securities with
the Principal Market, a Form D with the SEC and any other filings as may be required by any state securities agencies (collectively,
the “Required Approvals”).

 

g.           Filings.
None of the Company’s SEC Documents contained, at the time they were filed, any untrue statement of a material fact or omitted
to state any material fact required to be stated therein or necessary to make the statements made therein in light of the circumstances
under which they were made, not misleading.

 

h.           Absence
of Certain Changes. Since the Last Audited Date, there has been no material adverse change and no Material Adverse Effect,
except as disclosed in the Company’s SEC Documents. Since the Last Audited Date, except as provided in the Company’s
SEC Documents, the Company has not (i) incurred or become subject to any material liabilities (absolute or contingent) except liabilities
incurred in the ordinary course of business consistent with past practices; (ii) discharged or satisfied any material lien or encumbrance
or paid any material obligation or liability (absolute or contingent), other than current liabilities paid in the ordinary course
of business consistent with past practices; (iii) declared or made any payment or distribution of cash or other property to shareholders
with respect to its capital stock, or purchased or redeemed, or made any agreements to purchase or redeem, any shares of its capital
stock; (iv) sold, assigned or transferred any other tangible assets, or canceled any debts owed to the Company by any third party
or claims of the Company against any third party, except in the ordinary course of business consistent with past practices; (v)
waived any rights of material value, whether or not in the ordinary course of business, or suffered the loss of any material amount
of existing business; (vi) made any increases in employee compensation, except in the ordinary course of business consistent with
past practices; or (vii) experienced any material problems with labor or management in connection with the terms and conditions
of their employment.

 

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i.            Full
Disclosure. To the best of the Company’s knowledge, there is no fact known to the Company (other than general economic
conditions known to the public generally or as disclosed in the Company’s SEC Documents) that has not been disclosed in writing
to the Purchaser that would reasonably be expected to have or result in a Material Adverse Effect.

 

j.            Absence
of Litigation. Except as disclosed in the SEC Documents, there is no action, suit, proceeding, inquiry or investigation before
or by any court, public board or body pending or, to the knowledge of the Company, threatened against or affecting the Company
before or by any governmental authority or nongovernmental department, commission, board, bureau, agency or instrumentality or
any other person, wherein an unfavorable decision, ruling or finding would have a Material Adverse Effect or which would adversely
affect the validity or enforceability of, or the authority or ability of the Company to perform its obligations under, any of the
Transaction Documents. Except as disclosed in the SEC Documents, the Company is not aware of any valid basis for any such claim
that (either individually or in the aggregate with all other such events and circumstances) could reasonably be expected to have
a Material Adverse Effect. Except as disclosed in the SEC Documents, there are no outstanding or unsatisfied judgments, orders,
decrees, writs, injunctions or stipulations to which the Company is a party or by which it or any of its properties is bound, that
involve the transaction contemplated herein or that, alone or in the aggregate, could reasonably be expect to have a Material Adverse
Effect.

 

k.          Absence
of Events of Default. Except as disclosed in the SEC Documents or set forth in Section 3(e) and 3(g) hereof, (i) neither the
Company nor any of its subsidiaries is in default in the performance or observance of any material obligation, agreement, covenant
or condition contained in any material indenture, mortgage, deed of trust or other material agreement to which it is a party or
by which its property is bound, and (ii) no Event of Default (or its equivalent term), as defined in the respective agreement to
which the Company or its subsidiary is a party, and no event which, with the giving of notice or the passage of time or both, would
become an Event of Default (or its equivalent term) (as so defined in such agreement), has occurred and is continuing, which would
have a Material Adverse Effect.

 

l.            No
Undisclosed Liabilities or Events. To the best of the Company’s knowledge, the Company has no liabilities or obligations
other than those disclosed in the Transaction Documents or the Company's SEC Documents or those incurred in the ordinary course
of the Company's business since the Last Audited Date, or which individually or in the aggregate, do not or would not have a Material
Adverse Effect. No event or circumstances has occurred or exists with respect to the Company or its properties, business, operations,
condition (financial or otherwise), or results of operations, which, under applicable law, rule or regulation, requires public
disclosure or announcement prior to the date hereof by the Company but which has not been so publicly announced or disclosed. There
are no proposals currently under consideration or currently anticipated to be under consideration by the Board of Directors or
the executive officers of the Company which proposal would change the articles or certificate of incorporation or other charter
document or by-laws of the Company, each as currently in effect, with or without shareholder approval, which change would reduce
or otherwise adversely affect the rights and powers of the shareholders of the Common Stock.

 

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m.           No
Integrated Offering. Neither the Company nor any of its Affiliates, nor, to the knowledge of the Company, any Person acting
on its or their behalf has, directly or indirectly, made any offer or sales of any security or solicited any offers to buy any
security under circumstances that would eliminate the availability of the exemption from registration under Regulation D in connection
with the offer and sale of the Securities as contemplated hereby.

 

n.           Dilution.
Any shares of the Company’s common stock issued to the Purchaser in connection with any agreements between the parties hereto,
in the event such shares are issued may have a dilutive effect on the ownership interests of the other shareholders (and Persons
having the right to become shareholders) of the Company. The Company's executive officers and directors have studied and fully
understand the nature of the Securities being sold hereby and recognize that they have such a potential dilutive effect. The board
of directors of the Company has concluded, in its good faith business judgment, that such issuance is in the best interests of
the Company.

 

o.           Confirmation.
The Company confirms that all statements of the Company contained herein shall survive acceptance of this Agreement by the Purchaser.
The Company agrees that, if any events occur or circumstances exist prior to the Closing Date or the release of the Purchase Price
to the Company which would make any of the Company’s representations, warranties, agreements or other information set forth
herein materially untrue or materially inaccurate as of such date, the Company shall immediately notify the Purchaser (directly
or through its counsel, if any) in writing prior to such date of such fact, specifying which representation, warranty or covenant
is affected and the reasons therefor.

 

p.           Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated
by each of the Transaction Documents and otherwise to carry out its obligations thereunder. The execution and delivery of each
of the Transaction Documents by the Company and the consummation by it of the transactions contemplated thereby have been duly
authorized by all necessary action on the part of the Company and no further action is required by the Company in connection therewith.
Each Transaction Agreement has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance
with the terms hereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance
with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general
application affecting enforcement of creditors’ rights generally and (ii) as limited by laws relating to the availability
of specific performance, injunctive relief or other equitable remedies.

 

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q.           SEC
Reports; Financial Statements. The Company has filed all reports required to be filed by it under the 1934 Act, including pursuant
to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (or such shorter period as the Company was required
by law to file such material) (the foregoing materials, including the exhibits thereto, being collectively referred to herein as
the “SEC Reports”) on a timely basis or has received a valid extension of such time of filing and has filed
any such SEC Reports prior to the expiration of any such extension. As of their respective dates, the SEC Reports complied in all
material respects with the requirements of the 1934 Act and the rules and regulations of the Commission promulgated thereunder,
and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they
were made, not misleading. The financial statements of the Company comply in all material respects with applicable accounting requirements
and the rules and regulations of the Commission with respect thereto as in effect at the time of filing. Such financial statements
have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during
the periods involved (“GAAP”), except as may be otherwise specified in such financial statements or the notes
thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all
material respects the financial position of the Company and its consolidated subsidiaries as of and for the dates thereof and the
results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial,
year-end audit adjustments.

 

r.            Sarbanes-Oxley;
Internal Accounting Controls. The Company is in material compliance with all provisions of the Sarbanes-Oxley Act of 2002 which
are applicable to it as of the Closing Date. Except as set forth in the SEC Documents, the Company and the Subsidiaries maintain
a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance
with management's general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial
statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance
with management's general or specific authorization, and (iv) the recorded accountability for assets is compared with the existing
assets at reasonable intervals and appropriate action is taken with respect to any differences. The Company has established disclosure
controls and procedures (as defined in 1934 Act Rules 13a-15(e) and 15d-15(e)) for the Company and designed such disclosure controls
and procedures to ensure that material information relating to the Company, including its Subsidiaries, is made known to the certifying
officers by others within those entities, particularly during the period in which the Company's most recently filed periodic report
under the 1934 Act, as the case may be, is being prepared. The Company's certifying officers have evaluated the effectiveness of
the Company's controls and procedures as of the date prior to the filing date of the most recently filed periodic report under
the 1934 Act (such date, the “Evaluation Date”). The Company presented in its most recently filed periodic report
under the 1934 Act the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures
based on their evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no significant changes in the
Company's internal controls (as such term is defined in Item 307(b) of Regulation S-K under the 1934 Act) or, to the Company's
knowledge, in other factors that could significantly affect the Company's internal controls.

 

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

 

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t.            No
Disagreements with Accountants and Lawyers. There are no disagreements of any kind presently existing, or reasonably anticipated
by the Company to arise, between the accountants and lawyers formerly or presently employed by the Company and the Company is current
with respect to any fees owed to its accountants and lawyers. By making this representation the Company does not, in any manner,
waive the attorney/client privilege or the confidentiality of the communications between the Company and its lawyers.

 

4.          CERTAIN
COVENANTS AND ACKNOWLEDGMENTS.

 

a.           Transfer
Restrictions. The Purchaser acknowledges that (1) the Securities have not been and are not being registered under the provisions
of the 1933 Act and, the Conversion Shares have not been and are not being registered under the 1933 Act, and may not be transferred
unless (A) subsequently registered thereunder or (B) the Purchaser shall have delivered to the Company an opinion of counsel, reasonably
satisfactory in form, scope and substance to the Company, to the effect that the Securities to be sold or transferred may be sold
or transferred pursuant to an exemption from such registration; (2) any sale of the Securities made in reliance on Rule 144 promulgated
under the 1933 Act (“Rule 144") may be made only in accordance with the terms of said Rule and further, if said Rule
is not applicable, any resale of such Securities under circumstances in which the seller, or the Person through whom the sale is
made, may be deemed to be an underwriter, as that term is used in the 1933 Act, may require compliance with some other exemption
under the 1933 Act or the rules and regulations of the SEC thereunder; and (3) neither the Company nor any other Person is under
any obligation to register the Securities under the 1933 Act or to comply with the terms and conditions of any exemption thereunder.

 

b.           Restrictive
Legend. The Purchaser acknowledges and agrees that the certificates and other instruments representing any of the Securities
shall bear a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of
any such Securities):

 

“THESE SECURITIES HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD OR OFFERED
FOR SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES OR AN OPINION OF COUNSEL OR OTHER EVIDENCE ACCEPTABLE
TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.”

 

c.           Filings.
The Company undertakes and agrees to make all necessary filings in connection with the sale of the Securities to the Purchaser
under any United States laws and regulations applicable to the Company, or by any domestic securities exchange or trading market,
and to provide a copy thereof to the Purchaser promptly after request.

 

d.           Reporting
Status. So long as the Purchaser beneficially owns any of the Securities, the Company shall file all reports required to be
filed with the SEC pursuant to Section 13 or 15(d) of the 1934 Act, shall take all reasonable action under its control to ensure
that adequate current public information with respect to the Company, as required in accordance with Rule 144(c)(2) of the 1933
Act, is publicly available, and shall not terminate its status as an issuer required to file reports under the 1934 Act even if
the 1934 Act or the rules and regulations thereunder would permit such termination. The Company will take all reasonable action
under its control to maintain the continued listing and quotation and trading of its Common Stock on the Principal Trading Market,
to the extent applicable to it, will comply in all material respects with the Company’s reporting, filing and other obligations
under the by-laws or rules of the Principal Trading Market and/or the Financial Industry Regulatory Authority, Inc., as the case
may be, applicable to it for so long as the Purchaser beneficially owns any of the Securities.

 

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e.           Use
of Proceeds. The Company will use the proceeds received hereunder for working capital.

 

f.            Publicity,
Filings, Releases, Etc. Each of the parties agrees that it will not disseminate any information relating to the Transaction
Documents or the transactions contemplated thereby, including issuing any press releases, holding any press conferences or other
forums, or filing any reports (collectively, “Publicity”), without giving the other party reasonable advance notice
and an opportunity to comment on the contents thereof. Neither party will include in any such Publicity any statement or statements
or other material to which the other party reasonably objects, unless in the reasonable opinion of counsel to the party proposing
such statement, such statement is legally required to be included. In furtherance of the foregoing, the Company will provide to
the Purchaser drafts of the applicable text of the first filing of a Current Report on Form 8-K intended to be made with the SEC
which refers to the Transaction Documents or the transactions contemplated thereby as soon as practicable (but at least two (2)
Trading Days before such filing will be made) and will not include in such filing any statement or statements or other material
to which the other party reasonably objects, unless in the reasonable opinion of counsel to the party proposing such statement,
such statement is legally required to be included. Notwithstanding the foregoing, each of the parties hereby consents to the inclusion
of the text of the Transaction Documents in filings made with the SEC as well as any descriptive text accompanying or part of such
filing which is accurate and reasonably determined by the Company’s counsel to be legally required.

 

5.          TRANSFER
AGENT INSTRUCTIONS.

 

a.           The
Company warrants that, with respect to the Securities, other than the stop transfer instructions to give effect to Section 4(a)
hereof, it will give its transfer agent no instructions inconsistent with instructions to issue the Conversion Shares to the Holder
as contemplated in the Transaction Documents. Nothing in this Section shall affect in any way the Purchaser's obligations and agreement
to comply with all applicable securities laws upon resale of the Securities. If the Purchaser provides the Company with an opinion
of counsel reasonably satisfactory to the Company that registration of a resale by the Purchaser of any of the Securities in accordance
with clause (1)(B) of Section 4(a) of this Agreement is not required under the 1933 Act, the Company shall (except as provided
in clause (2) of Section 4(a) of this Agreement) permit the transfer or issue of the Conversion Shares represented by one or more
certificates for Common Stock without legend (or where applicable, by electronic registration) in such name and in such denominations
as specified by the Purchaser.

 

    	Page 11

    	 

    

 

b.           The
Company will authorize the Transfer Agent to give information relating to the Company directly to the Holder or the Holder’s
representatives upon the request of the Holder or any such representative, to the extent such information relates to (i) the status
of shares of Common Stock issued or claimed to be issued to the Holder in connection with a Notice of Exercise, or (ii) the aggregate
number of outstanding shares of Common Stock of all shareholders (as a group, and not individually) as of a current or other specified
date. At the request of the Holder, the Company will provide the Holder with a copy of the authorization so given to the Transfer
Agent.

 

6.          CLOSING
DATE.

 

a.           The
Closing Date shall occur as indicated in Section 1(a)(1) after each of the conditions contemplated by Sections 7 and 8 hereof shall
have either been satisfied or been waived by the party in whose favor such conditions run.

 

b.           The
closing of the Transactions shall occur on the Closing Date at the offices of the Purchaser and shall take place no later than
1:00 P.M., PST, on such day or such other time as is mutually agreed upon by the Company and the Purchaser.

 

7.          CONDITIONS
TO THE COMPANY'S OBLIGATION TO SELL.

 

The Purchaser understands
that the Company's obligation to sell the Securities to the Purchaser pursuant to this Agreement on the Closing Date is conditioned
upon:

 

a.           The
execution and delivery of this Agreement by the Purchaser;

 

b.           The
Purchaser shall have delivered to the Company the Purchase Price for the Securities being purchased by wire transfer of immediately
available funds in accordance with the instructions from the Company;

 

c.           The
accuracy in all material respects on the Closing Date of the representations and warranties of the Purchaser contained in this
Agreement, each as if made on such date, and the performance by the Purchaser on or before such date of all covenants and agreements
of the Purchaser required to be performed on or before such date; and

 

c.           There
shall not be in effect any law, rule or regulation prohibiting or restricting the transactions contemplated hereby, or requiring
any consent or approval which shall not have been obtained.

 

8.          CONDITIONS
TO THE PURCHASER'S OBLIGATION TO PURCHASE.

 

The Company understands
that the Purchaser’s obligation to purchase the Securities and its acceptance of any shares of the Company’s common
stock that may be issued in connection with any agreements between the parties hereto on a Closing Date is conditioned upon:

 

a.           The
execution and delivery of this Agreement and the other Transaction Documents by the Company;

 

    	Page 12

    	 

    

 

b.           Delivery
by the Company to the Purchaser of the Securities in accordance with this Agreement or any other agreements between the parties;

 

c.           The
accuracy in all material respects on the Closing Date of the representations and warranties of the Company contained in this Agreement,
each as if made on such date, and the performance by the Company on or before such date of all covenants and agreements of the
Company required to be performed on or before such date;

 

d.           The
Company must be current with all required 1934 Act filings;

 

e.           There
shall not be in effect any law, rule or regulation prohibiting or restricting the transactions contemplated hereby, or requiring
any consent or approval which shall not have been obtained; and

 

f.            From
and after the date hereof to and including the Closing Date, each of the following conditions will remain in effect: (i) the trading
of the Common Stock shall not have been suspended by the SEC or on the Principal Trading Market; (ii) trading in securities generally
on the Principal Trading Market shall not have been suspended or limited; (iii) no minimum prices shall been established for securities
traded on the Principal Trading Market; and (iv) there shall not have been any Material Adverse Effect in regards to the Company.

 

9.          INDEMNIFICATION
AND REIMBURSEMENT.

 

a.           (i)
The Company agrees to indemnify and hold harmless the Purchaser and its officers, directors, employees, and agents, and each Purchaser
Control Person from and against any losses, claims, damages, liabilities or expenses incurred (collectively, “Damages”),
joint or several, and any action in respect thereof to which the Purchaser, its partners, Affiliates, officers, directors, employees,
and duly authorized agents, and any such Purchaser Control Person becomes subject to, resulting from, arising out of or relating
to any misrepresentation, breach of warranty or nonfulfillment of or failure to perform any covenant or agreement on the part of
Company contained in this Agreement, as such Damages are incurred, except to the extent such Damages result primarily from Purchaser's
failure to perform any covenant or agreement contained in this Agreement or the Purchaser's or its officer’s, director’s,
employee’s, agent’s or Purchaser Control Person’s negligence, recklessness or bad faith in performing its obligations
under this Agreement.

 

    	Page 13

    	 

    

 

(ii)         The
Company hereby agrees that, if the Purchaser, other than by reason of its negligence, recklessness or bad faith (in each case,
as determined by a non-appealable judgment to such effect), (x) becomes involved in any capacity in any action, proceeding or investigation
brought by any shareholder of the Company, in connection with or as a result of the consummation of the transactions contemplated
by this Agreement or the other Transaction Documents, or if the Purchaser is impleaded in any such action, proceeding or investigation
by any Person, or (y) becomes involved in any capacity in any action, proceeding or investigation brought by the SEC, any self-regulatory
organization or other body having jurisdiction, against or involving the Company or in connection with or as a result of the consummation
of the transactions contemplated by this Agreement or the other Transaction Documents, or (z) is impleaded in any such action,
proceeding or investigation by any Person, then in any such case, the Company shall indemnify, defend and hold harmless the Purchaser
from and against and in respect of all losses, claims, liabilities, damages or expenses resulting from, imposed upon or incurred
by the Purchaser, directly or indirectly, and reimburse such Purchaser for its reasonable legal and other expenses (including the
cost of any investigation and preparation) incurred in connection therewith, as such expenses are incurred. The indemnification
and reimbursement obligations of the Company under this paragraph shall be in addition to any liability which the Company may otherwise
have, shall extend upon the same terms and conditions to any Affiliates of the Purchaser who are actually named in such action,
proceeding or investigation, and partners, directors, agents, employees and Purchaser Control Persons (if any), as the case may
be, of the Purchaser and any such Affiliate, and shall be binding upon and inure to the benefit of any successors, assigns, heirs
and personal representatives of the Company, the Purchaser, any such Affiliate and any such Person. The Company also agrees that
neither the Purchaser nor any such Affiliate, partner, director, agent, employee or Purchaser Control Person shall have any liability
to the Company or any Person asserting claims on behalf of or in right of the Company in connection with or as a result of the
consummation of this Agreement or the other Transaction Documents, except to the extent such liability results primarily from Purchaser's
failure to perform any covenant or agreement contained in this Agreement or the Purchaser's or its officer’s, director’s,
employee’s, agent’s or Purchaser Control Person’s negligence, recklessness or bad faith in performing its obligations
under this Agreement, and except as may be expressly and specifically provided in or contemplated by this Agreement.

 

(iii)        The
Purchaser agrees to indemnify and hold harmless the Company and its officers, directors, stockholders, employees, and agents, and
each Company Control Person from and against any losses, claims, damages, liabilities or expenses incurred (collectively, “Damages”),
joint or several, and any action in respect thereof to which the Company, its stockholders, Affiliates, officers, directors, employees,
and duly authorized agents, and any such Company Control Person becomes subject to, resulting from, arising out of or relating
to any breach of the representations, warranties, covenants, or agreements made by the Purchaser in this Agreement, except to the
extent such Damages result primarily from the Company's failure to perform any covenant or agreement contained in this Agreement
or the Company's or its officer’s, director’s, employee’s, agent’s or Company Control Person’s negligence,
recklessness or bad faith in performing its obligations under this Agreement. In no event shall the liability of the Purchaser
or permitted successor hereunder be greater in amount than the dollar amount of the net proceeds actually received by the Purchaser
upon the sale of Securities.

 

b.           All
claims for indemnification by any Indemnified Party (as defined below) under this Section shall be asserted and resolved as follows:

 

(i)          
In the event any claim or demand in respect of which any Person claiming indemnification under any provision of this Section (an
“Indemnified Party”) might seek indemnity under paragraph (a) of this Section is asserted against or sought to be collected
from such Indemnified Party by a Person other than a party hereto or an Affiliate thereof (a “Third Party Claim”),
the Indemnified Party shall deliver a written notification, enclosing a copy of all papers served, if any, and specifying the nature
of and basis for such Third Party Claim and for the Indemnified Party's claim for indemnification that is being asserted under
any provision of this Section against any Person (the “Indemnifying Party”), together with the amount or, if not then
reasonably ascertainable, the estimated amount, determined in good faith, of such Third Party Claim (a “Claim Notice”)
with reasonable promptness to the Indemnifying Party. If the Indemnified Party fails to provide the Claim Notice with reasonable
promptness after the Indemnified Party receives notice of such Third Party Claim, the Indemnifying Party shall not be obligated
to indemnify the Indemnified Party with respect to such Third Party Claim to the extent that the Indemnifying Party's ability to
defend has been prejudiced by such failure of the Indemnified Party. The Indemnifying Party shall notify the Indemnified Party
as soon as practicable within the period ending thirty (30) calendar days following receipt by the Indemnifying Party of either
a Claim Notice or an Indemnity Notice (as defined below) (the “Dispute Period”) whether the Indemnifying Party disputes
its liability or the amount of its liability to the Indemnified Party under this Section and whether the Indemnifying Party desires,
at its sole cost and expense, to defend the Indemnified Party against such Third Party Claim. The following provisions shall also
apply.

 

    	Page 14

    	 

    

 

(x) If the Indemnifying Party
notifies the Indemnified Party within the Dispute Period that the Indemnifying Party desires to defend the Indemnified Party with
respect to the Third Party Claim pursuant to this paragraph (b) of this Section, then the Indemnifying Party shall have the right
to defend, with counsel reasonably satisfactory to the Indemnified Party, at the sole cost and expense of the Indemnifying Party,
such Third Party Claim by all appropriate proceedings, which proceedings shall be vigorously and diligently prosecuted by the Indemnifying
Party to a final conclusion or will be settled at the discretion of the Indemnifying Party (but only with the consent of the Indemnified
Party in the case of any settlement that provides for any relief other than the payment of monetary damages or that provides for
the payment of monetary damages as to which the Indemnified Party shall not be indemnified in full pursuant to paragraph (a) of
this Section, which consent shall not be unreasonably withheld, delayed or conditioned). The Indemnifying Party shall have full
control of such defense and proceedings, including any compromise or settlement thereof; provided, however, that the Indemnified
Party may, at the sole cost and expense of the Indemnified Party, at any time prior to the Indemnifying Party's delivery of the
notice referred to in the first sentence of this subparagraph (x), file any motion, answer or other pleadings or take any other
action that the Indemnified Party reasonably believes to be necessary or appropriate protect its interests; and provided further,
that if requested by the Indemnifying Party, the Indemnified Party will, at the sole cost and expense of the Indemnifying Party,
provide reasonable cooperation to the Indemnifying Party in contesting any Third Party Claim that the Indemnifying Party elects
to contest. The Indemnified Party may participate in, but not control, any defense or settlement of any Third Party Claim controlled
by the Indemnifying Party pursuant to this subparagraph (x), and except as provided in the preceding sentence, the Indemnified
Party shall bear its own costs and expenses with respect to such participation. Notwithstanding the foregoing, the Indemnified
Party may take over the control of the defense or settlement of a Third Party Claim at any time if it irrevocably waives its right
to indemnity under paragraph (a) of this Section with respect to such Third Party Claim.

 

    	Page 15

    	 

    

 

(y) If the Indemnifying Party
fails to notify the Indemnified Party within the Dispute Period that the Indemnifying Party desires to defend the Third Party Claim
pursuant to paragraph (b) of this Section, or if the Indemnifying Party gives such notice but fails to prosecute vigorously and
diligently or settle the Third Party Claim, or if the Indemnifying Party fails to give any notice whatsoever within the Dispute
Period, then the Indemnified Party shall have the right to defend, at the sole cost and expense of the Indemnifying Party, the
Third Party Claim by all appropriate proceedings, which proceedings shall be prosecuted by the Indemnified Party in a reasonable
manner and in good faith or will be settled at the discretion of the Indemnified Party (with the consent of the Indemnifying Party,
which consent will not be unreasonably withheld). The Indemnified Party will have full control of such defense and proceedings,
including any compromise or settlement thereof; provided, however, that if requested by the Indemnified Party, the Indemnifying
Party will, at the sole cost and expense of the Indemnifying Party, provide reasonable cooperation to the Indemnified Party and
its counsel in contesting any Third Party Claim which the Indemnified Party is contesting. Notwithstanding the foregoing provisions
of this subparagraph (y), if the Indemnifying Party has notified the Indemnified Party within the Dispute Period that the Indemnifying
Party disputes its liability or the amount of its liability hereunder to the Indemnified Party with respect to such Third Party
Claim and if such dispute is resolved in favor of the Indemnifying Party in the manner provided in subparagraph(z) below, the Indemnifying
Party will not be required to bear the costs and expenses of the Indemnified Party's defense pursuant to this subparagraph (y)
or of the Indemnifying Party's participation therein at the Indemnified Party's request, and the Indemnified Party shall reimburse
the Indemnifying Party in full for all reasonable costs and expenses incurred by the Indemnifying Party in connection with such
litigation. The Indemnifying Party may participate in, but not control, any defense or settlement controlled by the Indemnified
Party pursuant to this subparagraph (y), and the Indemnifying Party shall bear its own costs and expenses with respect to such
participation.

 

(z) If the Indemnifying Party
notifies the Indemnified Party that it does not dispute its liability or the amount of its liability to the Indemnified Party with
respect to the Third Party Claim under paragraph (a) of this Section or fails to notify the Indemnified Party within the Dispute
Period whether the Indemnifying Party disputes its liability or the amount of its liability to the Indemnified Party with respect
to such Third Party Claim, the amount of Damages specified in the Claim Notice shall be conclusively deemed a liability of the
Indemnifying Party under paragraph (a) of this Section and the Indemnifying Party shall pay the amount of such Damages to the Indemnified
Party on demand. If the Indemnifying Party has timely disputed its liability or the amount of its liability with respect to such
claim, the Indemnifying Party and the Indemnified Party shall proceed in good faith to negotiate a resolution of such dispute;
provided, however, that if the dispute is not resolved within thirty (30) days after the Claim Notice, the Indemnifying Party shall
be entitled to institute such legal action as it deems appropriate.

 

    	Page 16

    	 

    

 

(ii)         In
the event any Indemnified Party should have a claim under paragraph (a) of this Section against the Indemnifying Party that does
not involve a Third Party Claim, the Indemnified Party shall deliver a written notification of a claim for indemnity under paragraph
(a) of this Section specifying the nature of and basis for such claim, together with the amount or, if not then reasonably ascertainable,
the estimated amount, determined in good faith, of such claim (an "Indemnity Notice") with reasonable promptness to the
Indemnifying Party. The failure by any Indemnified Party to give the Indemnity Notice shall not impair such party's rights hereunder
except to the extent that the Indemnifying Party demonstrates that it has been irreparably prejudiced thereby. If the Indemnifying
Party notifies the Indemnified Party that it does not dispute the claim or the amount of the claim described in such Indemnity
Notice or fails to notify the Indemnified Party within the Dispute Period whether the Indemnifying Party disputes the claim or
the amount of the claim described in such Indemnity Notice, the amount of Damages specified in the Indemnity Notice will be conclusively
deemed a liability of the Indemnifying Party under paragraph (a) of this Section and the Indemnifying Party shall pay the amount
of such Damages to the Indemnified Party on demand. If the Indemnifying Party has timely disputed its liability or the amount of
its liability with respect to such claim, the Indemnifying Party and the Indemnified Party shall proceed in good faith to negotiate
a resolution of such dispute; provided, however, that it the dispute is not resolved within thirty (30) days after the Claim Notice,
the Indemnifying Party shall be entitled to institute such legal action as it deems appropriate.

 

c.           The
indemnity agreements contained herein shall be in addition to (i) any cause of action or similar rights of the indemnified party
against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject to.

 

11.         JURY
TRIAL WAIVER. The Company and the Purchaser hereby waive a trial by jury in any action, proceeding or counterclaim brought
by either of the Parties hereto against the other in respect of any matter arising out or in connection with the Transaction Documents.

 

12.         GOVERNING
LAW: MISCELLANEOUS.

 

a.           (i)
This Agreement shall be governed by and interpreted in accordance with the laws of the State of New York for contracts to be wholly
performed in such state and without giving effect to the principles thereof regarding the conflict of laws. Each of the parties
consents to the exclusive jurisdiction of the federal courts whose districts encompass any part of the state courts of the State
of New York as in connection with any dispute arising under this Agreement or any of the other Transaction Documents and hereby
waives, to the maximum extent permitted by law, any objection, including any objection based on forum non conveniens, to
the bringing of any such proceeding in such jurisdictions or to any claim that such venue of the suit, action or proceeding is
improper. To the extent determined by such court, the Company shall reimburse the Purchaser for any reasonable legal fees and disbursements
incurred by the Purchaser in enforcement of or protection of any of its rights under any of the Transaction Documents. Nothing
in this Section shall affect or limit any right to serve process in any other manner permitted by law.

 

(ii) The Company and
the Purchaser acknowledge and agree that irreparable damage would occur in the event that any of the provisions of this Agreement
or the other Transaction Documents were not performed in accordance with their specific terms or were otherwise breached. It is
accordingly agreed that the parties shall be entitled to an injunction or injunctions to prevent or cure breaches of the provisions
of this Agreement and the other Transaction Documents and to enforce specifically the terms and provisions hereof and thereof,
this being in addition to any other remedy to which any of them may be entitled by law or equity.

 

    	Page 17

    	 

    

 

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

 

c.           This
Agreement shall inure to the benefit of and be binding upon the successors and assigns of each of the parties hereto.

 

d.           All
pronouns and any variations thereof refer to the masculine, feminine or neuter, singular or plural, as the context may require.

 

e.           This
Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and
shall become effective when counterparts have been signed by each party and delivered to the other party. In the event that any
signature is delivered by facsimile transmission or by an e-mail which contains a portable document format (.pdf) file of an executed
signature page, such signature page shall create a valid and binding obligation of the party executing (or on whose behalf such
signature is executed) with the same force and effect as if such signature page were an original thereof.

 

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

 

g.           If
any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall
not affect the validity or enforceability of the remainder of this Agreement or the validity or enforceability of this Agreement
in any other jurisdiction.

 

h.           This
Agreement may be amended only by an instrument in writing signed by the party to be charged with enforcement thereof.

 

i.            This
Agreement supersedes all prior agreements and understandings among the parties hereto with respect to the subject matter hereof.

 

13.         NOTICES.
Any notice required or permitted hereunder shall be given in writing (unless otherwise specified herein) and shall be deemed effectively
given on the earliest of

 

(a) the date delivered,
if delivered by personal delivery as against written receipt therefor or by confirmed facsimile transmission,

 

(b) the fifth Trading
Day after deposit, postage prepaid, in the United States Postal Service by registered or certified mail, or

 

(c) the third Trading
Day after mailing by domestic or international express courier, with delivery costs and fees prepaid,

 

    	Page 18

    	 

    

 

in each case, addressed to each of the
other parties thereunto entitled at the following addresses (or at such other addresses as such party may designate by ten (10)
days’ advance written notice similarly given to each of the other parties hereto):

 

	COMPANY:    	At the address set forth at the head of this Agreement.
	 	Attn: Michael James
	 	Telephone No. 908-604-2500
	 	 
	PURCHASER:	Black Mountain Equities, Inc.
	 	Attn: Adam Baker
	 	13366 Greenstone Court
	 	San Diego, CA 92131

 

14.         SURVIVAL
OF REPRESENTATIONS AND WARRANTIES. The Company’s and the Purchaser’s representations and warranties herein shall
survive the execution and delivery of this Agreement, and the delivery of the Certificate and the Purchase Shares, and the payment
of the Purchase Price, and shall inure to the benefit of the Purchaser and the Company and their respective successors and assigns.

 

[Balance of page intentionally left blank]

 

    	Page 19

    	 

    

 

IN WITNESS WHEREOF,
this Agreement has been duly executed by the Purchaser and the Company as of the date set first above written. 

 

	 	BLACK MOUNTAIN EQUITIES, INC.
	 	 	 
	 	By:	/s/ Adam Baker
	 	Name:	 Adam Baker
	 	Title:	 President

 

	INERGETICS, INC.	 
	 	 	 
	By:	/s/ Michael C. James	 
	(Signature of Authorized Person)	 
	 	 	 
	Michael C. James – CEO and CFO	 
	Printed Name and Title	 

 

    	Page 20Exhibit 10.1

 

INDEPENDENT DIRECTOR AGREEMENT

 

This INDEPENDENT DIRECTOR AGREEMENT (the “Agreement”)
is made and entered into as of May 29, 2014, with an effective date of May 31, 2014 (the “Effective Date”), by and
between China Integrated Energy, Inc., a Delaware corporation (the “Company”),
and Liren Wei, a citizen of the United States, with a permanent residence at 133-10 39th Avenue, Flushing, New York
11354 (the “Independent Director”).

 

WHEREAS, the Company desires to engage the
Independent Director, and the Independent Director desires to serve, as a non-employee director of the Company, subject to the
terms and conditions contained in this Agreement.

 

NOW, THEREFORE, in consideration of the mutual
promises and covenants contained herein, the receipt of which is hereby acknowledged, the Company and the Independent Director,
intending to be legally bound, hereby agree as follows:

 

1.DEFINITIONS.

 

(a)“Corporate Status”
describes the capacity of the Independent Director with respect to the Company and the services performed by the Independent Director
in that capacity.

 

(b)“Entity” shall mean any
corporation, partnership, limited liability company, joint venture, trust, foundation, association, organization or other legal
entity.

 

(c)“Proceeding” shall mean
any threatened, pending or completed claim, action, suit, arbitration, alternate dispute resolution process, investigation, administrative
hearing, appeal, or any other proceeding, whether civil, criminal, administrative or investigative, whether formal or informal,
including a proceeding initiated by the Independent Director pursuant to Section 12 of this Agreement to enforce the Independent
Director’s rights hereunder.

 

(d)“Expenses” shall mean
all reasonable fees, costs and expenses, incurred in connection with any Proceeding, including, without limitation, attorneys’
fees, disbursements and retainers, fees and disbursements of expert witnesses, private investigators, professional advisors (including,
without limitation, accountants and investment bankers), court costs, transcript costs, fees of experts, travel expenses, duplicating,
printing and binding costs, telephone and fax transmission charges, postage, delivery services, secretarial services, and other
disbursements and expenses.

 

(e)“Liabilities” shall mean
judgments, damages, liabilities, losses, penalties, excise taxes, fines and amounts paid in settlement, and any interest, assessments
or other charges imposed thereon, and any federal, state, local or foreign taxes imposed as a result of the actual or deemed receipt
of any payments under this Agreement.

 

(f)“Parent” shall mean any
corporation or other entity (other than the Company) in any unbroken chain of corporations or other entities ending with the Company,
if each of the corporations or entities, other than the Company, owns stock or other interests possessing 50% or more of the economic
interest or the total combined voting power of all classes of stock or other interests in one of the other corporations or entities
in the chain.

 

    	1

    	 

    

 

(g)“Subsidiary” shall mean
any corporation or other entity (other than the Company) in any unbroken chain of corporations or other entities beginning with
the Company, if each of the corporations or entities, other than the last corporation or entity in the unbroken chain, owns stock
or other interests possessing 50% or more of the economic interest or the total combined voting power of all classes of stock or
other interests in one of the other corporations or entities in the chain.

 

2.SERVICES OF INDEPENDENT DIRECTOR. While
this Agreement is in effect, the Independent Director shall also perform duties as Chairman of the Audit Committee and will be
compensated for such duties and be reimbursed expenses in accordance with the Schedule A attached to this Agreement, subject to
the following.

 

(a)The Independent Director will perform
services as is consistent with Independent Director’s position with the Company, as required and authorized by the By-Laws
and Certificate of Incorporation of the Company, and in accordance with high professional and ethical standards and all applicable
laws and rules and regulations pertaining to the Independent Director’s performance hereunder, including without limitation,
laws, rules and regulations relating to a public company.

 

(b)The Independent Director is solely
responsible for taxes arising out of any compensation paid by the Company to the Independent Director under this Agreement, and
the Independent Director understands that he will be issued a U.S. Treasury form 1099 for any compensation paid to him by the Company,
and understands and agrees that the Company shall comply with any tax or withholding obligations as required by applicable law
from time to time in connection with this Agreement.

 

(c)The Company may offset any and all
monies payable to the Independent Director to the extent of any monies owing to the Company from the Independent Director.

 

(d)The rules and regulations of the
Company notified to the Independent Director, from time to time, apply to the Independent Director. Such rules and regulations
are subject to change by the Board in its sole discretion. Notwithstanding the foregoing, in the event of any conflict or inconsistency
between the terms and conditions of this Agreement and rules and regulations of the Company, the terms of this Agreement control.

 

3.REQUIREMENTS OF INDEPENDENT DIRECTOR.
During the term of the Independent Director’s services to the Company hereunder, Independent Director shall observe all applicable
laws and regulations relating to independent directors of a public company as promulgated from to time, and shall not: (1) be an
employee of the Company or any Parent or Subsidiary; (2) accept, directly or indirectly, any consulting, advisory, or other compensatory
fee from the Company other than as a director and/or a member of a committee of the Board; (3) be an affiliated person of the Company
or any Parent or Subsidiary, as the term “affiliate” is defined in 17 CFR 240.10A-3(e)(1), other than in his capacity
as a director and/or a member of a committee of the Board; (4) possess an interest in any transaction with the Company or any Parent
or Subsidiary, for which disclosure would be required pursuant to 17 CFR 229.404(a), other than in his capacity as a director and/or
a member of a committee of the Board; (5) be engaged in a business relationship with the Company or any Parent or Subsidiary, for
which disclosure would be required pursuant to 17 CFR 229.404(b), except that the required beneficial interest therein shall be
modified to be 5% hereby.

 

4.REPORT OBLIGATION. While this Agreement
is in effect, the Independent Director shall immediately report to the Company in the event: (1) the Independent Director knows
or has reason to know or should have known that any of the requirements specified in Section 3 hereof is not satisfied or is not
going to be satisfied; and (2) the Independent Director simultaneously serves on an audit committee of any other public company.

 

    	2

    	 

    

 

5.TERM AND TERMINATION. The term of this
Agreement and the Independent Director’s services hereunder shall be for one (1) year from the Effective Date, unless terminated
as provided for in this Section 5. This Agreement and the Independent Director’s services hereunder shall terminate upon
the earlier of the following:

 

(a)Expiration of the Independent Director’s
term as a director of the Company;

 

(b)Removal of the Independent Director
as a director of the Company, upon proper action by the stockholders of the Company in accordance with the By-Laws and Certificate
of Incorporation of the Company and applicable law;

 

(c)Resignation of the Independent Director
as a director of the Company upon written notice to the Board of Directors of the Company; or

 

(d)Termination of this Agreement by
the Board, in the event any of the requirements specified in Section 3 hereof is not satisfied, as determined by the Board in its
sole discretion.

 

6.LIMITATION OF LIABILITY. In no event
shall the Independent Director be individually liable to the Company or its shareholders for any damages for breach of fiduciary
duty as an independent director of the Company, unless the Independent Director’s act or failure to act involves willful
misconduct, fraud or a knowing violation of law. No act or failure to act on the part of the Independent Director shall be considered
“willful” unless it is done, or omitted to be done, by the Independent Director in bad faith or without reasonable
belief that his action or omission was in the best interest of the Company.

 

7.AGREEMENT OF INDEMNITY. The Company
agrees to indemnify the Independent Director as follows:

 

(a)Subject to the exceptions contained
in Section 8(a) below, if the Independent Director was or is a party or is threatened to be made a party to any Proceeding (other
than an action by or in the right of the Company) by reason of the Independent Director’s Corporate Status, the Independent
Director shall be indemnified by the Company against all Expenses and Liabilities incurred or paid by the Independent Director
in connection with such Proceeding (referred to herein as “INDEMNIFIABLE EXPENSES” and “INDEMNIFIABLE LIABILITIES,”
respectively, and collectively as “INDEMNIFIABLE AMOUNTS”).

 

(b)Subject to the exceptions contained
in Section 8(b) below, if the Independent Director was or is a party or is threatened to be made a party to any Proceeding by or
in the right of the Company, to procure a judgment in its favor by reason of the Independent Director’s Corporate Status,
the Independent Director shall be indemnified by the Company against all Indemnifiable Amounts.

 

    	3

    	 

    

 

(c) For purposes of this Agreement, the
Independent Director shall be deemed to have acted in good faith in conducting the Company’s affairs as an independent director
of the Company and/or a member of a committee of the Board of the Company, if the Independent Director: (i) exercised or used the
same degree of diligence, care, and skill as an ordinarily prudent man would have exercised or used under the circumstances in
the conduct of his own affairs; or (ii) took, or omitted to take, an action in reliance upon advise of counsels or other professional
advisors for the Company, or upon statements made or information furnished by other directors, officers or employees of the Company,
or upon a financial statement of the Company provided by a person in charge of its accounts or certified by a public accountant
or a firm of public accountants, which the Independent Director had reasonable grounds to believe to be true.

 

(d) The parties hereto
acknowledge and intend that this Agreement shall provide
for indemnification in excess of that expressly provided by statute
and currently provided in the Company’s formation and governing documents, including,
without limitation, any indemnification provided by the Company’s By-Laws, Certificate of Incorporation, vote of its shareholders
or disinterested directors, or applicable law.

 

(e) In the event the Independent Director intends to engage
separate legal counsel, the Independent Director shall provide at least two days’ prior written notice to the Company before
such engagement and identify therein the Proceeding.

 

8. EXCEPTIONS TO INDEMNIFICATION. The Independent
Director shall be entitled to indemnification under Sections 7(a) and 7(b) above in all circumstances other than the following:

 

(a) If indemnification is requested under
Section 7(a) and it has been adjudicated finally by a court or arbitral body of competent jurisdiction that, in connection with
the subject of the Proceeding out of which the claim for indemnification has arisen, (i) the Independent Director failed to act
in good faith and in a manner the Independent Director reasonably believed to be in or not opposed to the best interests of the
Company, (ii) the Independent Director had reasonable cause to believe that the Independent Director’s conduct was unlawful,
or (iii) the Independent Director’s conduct constituted willful misconduct, fraud or knowing violation of law, then the Independent
Director shall not be entitled to payment of Indemnifiable Amounts hereunder. No act or failure to act on the part of the Independent
Director shall be considered “willful” unless it is done, or omitted to be done, by the Independent Director in bad
faith or without reasonable belief that his action or omission was in the best interest of the Company.

 

(b) If indemnification is requested under
Section 7(b) and

 

(i) it has been adjudicated finally by
a court or arbitral body of competent jurisdiction that, in connection with the subject of the Proceeding out of which the claim
for indemnification has arisen, the Independent Director failed to act in good faith and in a manner the Independent Director reasonably
believed to be in or not opposed to the best interests of the Company, including without limitation, the breach of Section 4 hereof
by the Independent Director, the Independent Director shall not be entitled to payment of Indemnifiable Expenses hereunder; or

 

(ii) it has been adjudicated finally by
a court or arbitral body of competent jurisdiction that the Independent Director is liable to the Company with respect to any claim,
issue or matter involved in the Proceeding out of which the claim for indemnification has arisen, including, without limitation,
a claim that the Independent Director received an improper benefit or improperly took advantage of a corporate opportunity, the
Independent Director shall not be entitled to payment of Indemnifiable Expenses hereunder with respect to such claim, issue or
matter.

 

    	4

    	 

    

 

9. WHOLLY OR PARTLY SUCCESSFUL. Notwithstanding
any other provision of this Agreement, and without limiting any such provision, to the extent that the Independent Director is,
by reason of the Independent Director’s Corporate Status, a party to and is successful, on the merits or otherwise, in any
Proceeding, the Independent Director shall be indemnified in connection therewith. If the Independent Director is not wholly successful
in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters
in such Proceeding, the Company shall indemnify the Independent Director against those Expenses and Liabilities reasonably incurred
by the Independent Director or on the Independent Director’s behalf in connection with each successfully resolved claim,
issue or matter. For purposes of this section, the termination of any claim, issue or matter in such a Proceeding by dismissal,
with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

 

10. ADVANCES AND INTERIM EXPENSES. The
Company shall pay to the Independent Director on request (and, in any event, within not more than ten business days of such request),
all Indemnifiable Expenses incurred by the Independent Director in connection with any Proceeding, including a Proceeding by or
in the right of the Company, in advance of the final disposition of such Proceeding, if the Independent Director furnishes the
Company with a written undertaking, to the satisfaction of the Company, to repay the amount of such Indemnifiable Expenses advanced
to the Independent Director in the event it is finally determined by a court or arbitral body of competent jurisdiction that the
Independent Director is not entitled under this Agreement to indemnification with respect to such Indemnifiable Expenses. The Independent
Director’s obligation to reimburse the Company for such advances shall be unsecured and no interest shall be charged thereon.

 

11. PROCEDURE FOR PAYMENT OF INDEMNIFIABLE
AMOUNTS. The Independent Director shall submit to the Company a written request specifying the Indemnifiable Amounts, for which
the Independent Director seeks payment under Section 7 hereof and the Proceeding of which has been previously notified to the Company
and approved by the Company for indemnification hereunder. At the request of the Company, the Independent Director shall furnish
such documentation and information as are reasonably available to the Independent Director and necessary to establish that the
Independent Director is entitled to indemnification hereunder. The Company shall pay such Indemnifiable Amounts within ten (10)
days of receipt of all required documents.

 

12. REMEDIES OF INDEPENDENT DIRECTOR.

 

(a) RIGHT TO PETITION COURT. In the event
that the Independent Director makes a request for payment of Indemnifiable Amounts under Sections 7, 9-11 above, or seeks payment
of insurance under Section 14, below, and such payment or advancement is not made in a timely manner (i) by the Company, pursuant
to the terms of this Agreement, or (ii) by any insurance carrier(s), pursuant to the terms of their respective insurance policies,
then the Independent Director may petition the appropriate judicial authority to enforce the Company’s or the carrier(s)
respective obligations.

 

(b) BURDEN OF PROOF. In any judicial
proceeding brought under Section 12 (a) above, the Company shall have the burden of proving that the Independent Director is not
entitled to payment of Indemnifiable Amounts hereunder.

 

(c) EXPENSES. The Company agrees to reimburse
the Independent Director in full for any Expenses incurred by the Independent Director in connection with investigating, preparing
for, litigating, defending or settling any action brought by the Independent Director under Section 12 (a) above, or in connection
with any claim or counterclaim brought by the Company in connection therewith.

 

(d) VALIDITY OF AGREEMENT. The Company
shall be precluded from asserting in any Proceeding, including, without limitation, an action under Section 12 (a) above, that
the provisions of this Agreement are not valid, binding and enforceable or that there is insufficient consideration for this Agreement
and shall stipulate in court that the Company is bound by all the provisions of this Agreement.

 

    	5

    	 

    

 

(e) FAILURE TO ACT NOT A DEFENSE. The
failure of the Company (including its Board of Directors or any committee thereof, independent legal counsel, or stockholders)
to make a determination concerning the permissibility of the payment of Indemnifiable Amounts or the advancement of Indemnifiable
Expenses under this Agreement shall not be a defense in any action brought under Section 12 (a) above.

 

13. PROCEEDINGS AGAINST COMPANY. Except
as otherwise provided in this Agreement, the Independent Director shall not be entitled to payment of Indemnifiable Amounts or
advancement of Indemnifiable Expenses with respect to any Proceeding brought by the Independent Director against the Company, any
Entity which it controls, any director or officer thereof, or any third party, unless the Board has consented to the initiation
of such Proceeding. This section shall not apply to counterclaims or affirmative defenses asserted by the Independent Director
in an action brought against the Independent Director.

 

14. INSURANCE. The Company shall obtain
and maintain a policy or policies of director and officer liability insurance, in an amount not less than $5,000,000, providing
the Independent Director with coverage for Indemnifiable Amounts and/or Indemnifiable Expenses in accordance with said insurance
policy or policies (“D&O INSURANCE”), provided that the Company shall not be liable under this Agreement to make
any payment in connection with any claim made against the Independent Director to the extent the Independent Director has otherwise
received payment (under any insurance policy) of the amounts otherwise indemnifiable hereunder. The Company shall thereafter take
all necessary or desirable action to cause such insurers to pay, on behalf of the Independent Director, all amounts payable as
a result of such Proceeding in accordance with the terms of such policies.

 

15. Non-Exclusivity.
The rights of the Independent Director hereunder shall be in addition to and not in lieu of any other rights the Independent Director
may have under the Company’s Certificate of Incorporation, Bylaws, applicable law, contract or otherwise. It is the intention
of this Agreement to effect the greatest protection possible to the Independent Director. To the extent that a change in applicable
law (whether by statute or judicial decision) permits greater indemnification than would be afforded currently under the Company’s
Certificate of Incorporation, Bylaws, applicable law, contract or this Agreement, it is the intent of the parties that the Independent
Director enjoy by this Agreement and any other agreements the greater benefits so afforded by such change.

 

16. SUBROGATION. In
the event of any payment of Indemnifiable Amounts under this Agreement or the D&O Insurance, the Company or its Insurance Carrier,
as the case may be, shall be subrogated to the extent of such payment to all of the rights of contribution or recovery of the Independent
Director against other persons, and the Independent Director shall take, at the request of the Company, all reasonable action necessary
to secure such rights, including the execution of such documents as are necessary to enable the Company to bring suit to enforce
such rights.

 

17. AUTHORITY. Each party has all necessary
power and authority to enter into, and be bound by the terms of, this Agreement, and the execution, delivery and performance of
the undertakings contemplated by this Agreement have been duly authorized by each party hereto:

 

18. SUCCESSORS AND ASSIGNMENT. This Agreement
shall (a) be binding upon and inure to the benefit of all successors and assigns of the Company (including any transferee of all
or a substantial portion of the business, stock and/or assets of the Company and any direct or indirect successor by merger or
consolidation or otherwise by operation of law), and (b) be binding on and shall inure to the benefit of the heirs, personal representatives,
executors and administrators of the Independent Director. The Independent Director has no power to assign this Agreement or any
rights and obligations hereunder.

 

    	6

    	 

    

 

19. CHANGE IN LAW. To the extent that a
change in applicable law (whether by statute or judicial decision) shall mandate broader or narrower indemnification than is provided
hereunder, the Independent Director shall be subject to such broader or narrower indemnification and this Agreement shall be deemed
to be amended to such extent.

 

20. SEVERABILITY. Whenever possible, each
provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law, but if any
provision of this Agreement, or any clause thereof, shall be determined by a court of competent jurisdiction to be illegal, invalid
or unenforceable, in whole or in part, such provision or clause shall be limited or modified in its application to the minimum
extent necessary to make such provision or clause valid, legal and enforceable, and the remaining provisions and clauses of this
Agreement shall remain fully enforceable and binding on the parties.

 

21. MODIFICATIONS AND WAIVER. Except as
provided in Section 19 hereof with respect to changes in applicable law which broaden or narrow the right of the Independent Director
to be indemnified by the Company, no supplement, modification or amendment of this Agreement shall be binding unless executed in
writing by each of the parties hereto. No delay in exercise or non-exercise by the Company of any right under this Agreement shall
operate as a current or future waiver by it as to its same or different rights under this Agreement or otherwise.

 

22. NOTICES. All notices, requests, demands
and other communications hereunder shall be in writing and shall be deemed to have been duly given (a) when delivered by hand,
(b) when transmitted by facsimile and receipt is acknowledged, or (c) if mailed by certified or registered mail with postage prepaid,
on the third business day after the date en which it is so mailed:

 

If to Independent Director, to: Liren Wei,
133-10 39th Avenue, Flushing, New York 11354, USA.

 

If to the Company, to: Gao Xincheng, Chairman
and Chief Executive Officer, China Integrated Energy, Inc., 10F Western International Square, No.2 Gao-Xin-Lu, Xi’an City,
Shaanxi Province, P.R.China, or to such other address as may have been furnished in the same manner by any party to the others.

 

23. GOVERNING LAW. This Agreement shall
be governed by and construed and enforced under the laws of the State of Delaware.

 

24. CONSENT TO JURISDICTION. The parties
hereby consent to the jurisdiction of the courts having jurisdiction over matters arising in Delaware for any proceeding arising
out of or relating to this Agreement. The parties agree that in any such proceeding, each party shall waive, if applicable, inconvenience
of forum and right to a jury.

 

25. AGREEMENT GOVERNS. This Agreement is
to be deemed consistent wherever possible with relevant provisions of the By-Laws and Certificate of Incorporation of the Company;
however, in the event of a conflict between this Agreement and such provisions, the provisions of this Agreement shall control.

 

26. INDEPENDENT CONTRACTOR. The parties
understand, acknowledge and agree that the Independent Director’s relationship with the Company is that of an independent
contractor and nothing in this Agreement is intended to or should be construed to create a relationship other than that of independent
contractor. Nothing in this Agreement shall be construed as a contract of employment/engagement between the Independent Director
and the Company or as a commitment on the part of the Company to retain the Independent Director in any capacity, for any period
of time or under any specific terms or conditions, or to continue the Independent Director’s service to the Company beyond
any period.

 

    	7

    	 

    

 

27. ENTIRE AGREEMENT. This Agreement
constitutes the entire agreement between the Company and the Independent Director with respect to the subject matter hereof, and
supersedes all prior understandings and agreements with respect to such subject matter.

 

IN WITNESS WHEREOF, the parties hereto have
executed this Independent Director Indemnification Agreement as of the day and year first above written.

 

	 	 
	AGREED	AGREED
	 	 
	China Integrated Energy, Inc.	Independent Director
	 	 
	/s/ Gao Xincheng	/s/ Liren Wei
	Name:  Gao Xincheng	Name: Liren Wei
	Title:   Chairman and CEO	 
	 	 

 

    	8

    	 

    

 

SCHEDULE A

 

I POSITION:

 

INDEPENDENT DIRECTOR AND MEMBER OF THE AUDIT
COMMITTEE

 

II. COMPENSATION:

 

FEES. For all services rendered by the Independent
Director pursuant to this Agreement, both during and outside of normal working hours, including but not limited to, attending all
required meetings of the Board or applicable committees thereof, executive sessions of the independent directors, reviewing filing
reports and other corporate documents as requested by the Company, providing comments and opinions as to business matters as requested
by the Company, the Company agrees to pay to the Independent Director a fee in cash of Ninety Thousand Dollars ($90,000) per annum
(“the Fee”), which will be payable in installments of $22,500, every three months during the Term, with the first installment
to be paid upon the execution of this Agreement.

 

If this Agreement is terminated in accordance
with Section 5 hereof prior to the end of the Term, the Independent Director agrees to return to the Company the pro rata portion
of the Fee for the remainder of the Term.

 

EXPENSES. During the term of the Independent
Director’s service as a director of the Company, the Company shall promptly reimburse the Independent Director for all expenses
incurred by him/her in connection with attending (a) all meetings of the Board or applicable committees thereof, (b) executive
sessions of the independent directors, and (c) stockholder meetings, as a director or a member of any committee of the Board ,
which are approved by the Company in advance.

 

    	9

    	 

    

 

NO OTHER BENEFITS OR COMPENSATION. The Independent
Director acknowledges and agrees that he/she is not granted and is not entitled to any other benefits or compensation from the
Company for the services provided under this Agreement except expressly provided for in this Schedule A.

 

 

	 	 
	AGREED	AGREED
	 	 
	China Integrated Energy, Inc.	Independent Director
	 	 
	/s/ Gao Xincheng	/s/ Liren Wei
	 	 
	Name:  Gao Xincheng	Name:  Liren Wei
	Title:   Chairman and CEO	 
	 	 

 

    	10

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