Document:

Exhibit 10.1

 

FRAMEWORK AGREEMENT FOR THE EXCHANGE 
 OF CORPORATE SERVICE

 

This agreement is executed in the City of Buenos Aires, on June 30, 2004, by and between:

 

(i)  Cresud Sociedad Anónima (“Cresud”), represented herein by Eduardo Sergio ELSZTAIN and Saúl ZANG, in their capacity as attorneys-in-fact, domiciled at Moreno 877, Piso 23, City of Buenos Aires;

 

(ii)  IRSA Inversiones y Representaciones Sociedad Anónima (“Irsa”), represented herein by Oscar Pedro BERGOTTO and Gastón Armando LERNOUD, in their capacity as attorneys-in-fact, domiciled at Moreno 877 Piso 21, City of Buenos Aires; and

 

(iii)  Alto Palermo S.A. (“APSA”), represented herein by Alejandro Gustavo ELSZTAIN and David Alberto PEREDNIK, in their capacity as attorneys-in-fact, domiciled at Moreno 877 Piso 22, City of Buenos Aires; and

 

RECITALS

 

a.                   Whereas, Cresud, Irsa, and APSA (the “Parties”) have operating areas and structures with certain features in common;

 

b.                   Whereas, Cresud has a significant shareholding in Irsa, and Irsa is APSA’s controlling shareholder;

 

c.                    Whereas, the Parties wish to implement alternatives that will allow them to cut down certain fixed costs associated to their activities (the “Project”), so as to reduce their impact on operating results, drawing on the individual efficiencies of each of the parties in the different areas that make up the operating management;

 

d.                   Whereas, the Parties have performed some experiences of partial operating integration, which have proven the feasibility of the Project’s implementation;

 

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e.                    Whereas, the Parties have retained the service of an independent third party (Deloitte Argentina) to carry out a study on the definition of settlement guidelines and distribution bases for the Project’s implementation;

 

f.                     Whereas, at the Parties’ request, Deloitte Argentina has prepared a report (the “Report”) dated June 12 this year containing the recommendations, which have been considered by the Parties for the implementation of the Project;

 

g.                    Whereas, the parties have management bodies partially consisting of the same individuals, which facilitates decision-making centralization and management supervision in a coordinated manner;

 

h.                   Whereas, the Parties agree that the Project does not abide by the provisions contained in Section 73 of Executive Order 677/01;

 

i.                       Whereas, the Parties wish to set up a framework setting forth the economic and administrative guidelines and characteristics required for the implementation of the Project, as well as for the gradual expansion of those areas which have already undergone prior experiences of partial operating integration; and

 

j.                  Whereas, the Parties’ Boards of Directors have approved the foregoing Framework Agreement for the Exchange of Corporate Services (the “Agreement”) on June 28, 2004.

 

NOW THEREFORE, the Parties agree to execute this Agreement subject to the following terms and conditions:

 

1. Premises for the Project’s Implementation

 

The implementation of the Project and the execution of all activities involved in the Project shall be carried out based on the following premises (the “Premises”):

 

a.                   The Parties shall maintain full independence regarding their strategic and business decisions, without prejudice to the existence of the Project.

 

b.                   Cost and benefit allocation shall be based on operating efficiency and equity, without either Party pursuing any individual economic benefit whatsoever.

 

c.                    The Parties shall preserve their individual accounting systems and records, including strict separation of their assets and liabilities.

 

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d.               The implementation of the Project shall not hinder identification of the business transactions or services involved, nor shall it harm the effectiveness of internal control systems or internal and external audits of the Parties, nor shall it affect the possibility of reflecting the transactions related to the Agreement pursuant to Technical Resolution 21 of the FACPCE [Argentine Federation of Professional Accountants Associations].

 

2.    Purpose

 

Based on the Premises, the Parties agree to move forward on the implementation of the Project, by exchanging services in those areas listed and described in Annex I.

 

The Parties shall carry out the operational integration of the areas referenced (the “Areas”) considering the Premises and the opinion of the Individual Responsible Parties (as defined in Section 3 of the Agreement) and the General Coordinator (as defined in Section 4 of the Agreement) through the Exchange of Corporate Services (as defined in Section 5 of the Agreement).

 

3.    Individual Responsible Parties

 

Without prejudice to the non-transferable legal liability attributable to each Board of Directors of the Parties, and for the purposes of facilitating the achievement of the goals pursued by the Parties, they hereby appoint the following individuals as Individual Responsible Parties:

 

Cresud appoints Clarisa Diana Lifsic de Estol;

 

IRSA appoints Gabriel Adolfo Gregorio Reznik; and

 

APSA appoints Abraham Perelman.

 

The Individual Responsible Parties shall be members of the Parties’ Audit Committees.

 

The main duties of the Individual Responsible Parties shall consist of:

 

a.                        monitoring the Project’s implementation in accordance with the Premises;

 

b.                        reviewing the billing report on a monthly basis to analyze it and check it against the provisions of the Agreement, and —in the event of discrepancies or deviations — preparing a report to submit for the consideration of the General Coordinator, and in turn, by the Parties’ Boards of Directors; and

 

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c.                         assessing, on a permanent basis the, results derived from the Project’s implementation and proposing to the General Coordinator changes in the event of a conflict with the Premises or, if appropriate, the possibility of establishing cost or benefit allocation mechanisms or criteria more consistent with the Premises.

 

Any of the Parties may substitute the Individual Responsible Party appointed under this Agreement, effective immediately upon its decision, and with no need to obtain consent from the other Parties.

 

4. General Coordinator

 

For the purpose of facilitating the Project’s implementation, and centralizing the flow of information to the Parties’ management bodies, the Parties appoint Alejandro G. Elsztain Project’s General Coordinator, without prejudice to the non-transferable legal liability attributable to each Board of Directors of the Parties

 

The main duties of the General Coordinator shall consist of:

 

a.                        reporting the progress and results of the Project’s implementation, as often as necessary, to the Boards of Directors of the Parties;

 

b.                        receiving the billing report to analyze it and check it against the provisions of the Agreement;

 

c.                         receiving and reviewing any discrepancy or deviation reports from Individual Responsible Parties;

 

d.                        verifying that the Project’s implementation is consistent with the Premises, and proposing to the Board of Directors of the Parties the changes he/she deems convenient.

 

Any two Parties may request the other Party, and the latter shall be forced, to consent to the replacement of the appointed General Coordinator as set forth in the Agreement. The new appointment shall be consented by the Parties.

 

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5.    Exchange of Operating Services

 

In accordance with the Recitals, Premises and purposes of the Agreement, the Parties shall perform an Exchange of Operating Services.

 

For the purposes of this Agreement, the Exchange of Operating Services (the “Exchange”) shall be understood as the provision of services for money involving any of the Areas, carried out by one or more of the Parties for the benefit of another Party or other Parties, primarily billed and payable by means of a compensation in the form of a provision of services from any Area, and secondarily, if there were a difference between the value of the services rendered, in money.

 

The Exchange shall be performed strictly based on the incurred cost without profit or mark-up, and it shall be responsibility of the Individual Responsible Parties and the General Coordinator to verify such circumstance.

 

Any payment derived from such Exchange shall be made monthly in arrears, within 5 days after the first business day of the applicable month, by check or wire transfer.

 

The Exchange for the benefit of subsidiaries of any of the Parties shall be considered as carried out for the benefit of the controlling Party, who shall conduct the necessary arrangements with its subsidiary to recover any amount spent under the Agreement. To this effect, none of the Parties shall be considered a subsidiary of any of the other Parties.

 

Considering the Report, the Premises and the purpose that the Exchange is to equally reflect the actual use of resources and structures by each of the Parties, Annex II includes the service cost allocation bases or criteria for each Area.

 

The allocation bases or criteria shall be reviewed, and if necessary, amended, in January and July each year, or at any time if a significant deviation from the operating efficiency and equity criteria stated in the Premises were found or if such amendment were deemed convenient.

 

6.    Term and Termination of the Agreement

 

The term of the Agreement shall be 24 months, and it may be renewed for the same term except in the case of notified termination by any of the Parties at least 60 days before the applicable expiration date. The notified termination by any of the Parties shall constitute the complete termination of the Agreement.

 

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The following shall also constitute grounds for termination of the Agreement:

 

a.                       change of control concerning any of the Parties;

 

b.                       any significant modification of the facts serving as grounds for the Project; and

 

c.                        the decision at any time of any two of the Parties.

 

7. Miscellaneous

 

a.    Nothing contained herein shall be deemed to confer any rights or benefits whatsoever in favor of any third party other than the Parties hereto, including the Parties’ creditors.

 

b.    This Agreement constitutes the entire and final agreement between the parties and supersedes any prior understanding (written or oral) in connection with the issues regulated under this Agreement, without prejudice to the validity and enforceability of any material or judicial act performed by the Parties in connection with the subject matter of the Agreement.

 

c.     The Parties shall consider the Agreement as intuitu personae, thus, they shall not assign any of the rights or obligations derived from the Agreement.

 

d.    All copies of the Agreement, signed by the Parties, shall be deemed original documents for all purposes.

 

e.     The headings of this Agreement are inserted for the purpose of organizing the contents of the Agreement and are not intended to affect the meaning or interpretation of this Agreement.

 

f.      No amendment to this Agreement shall be valid unless it is made in writing and signed by the Parties, upon prior approval of the Board of Directors of the Parties. Any waiver by one of the Parties regarding the duties or commitments of any other Party shall apply exclusively in connection with that specific duty or commitment, and shall not be extended, nor shall it constitute a precedent binding the Party or Parties to a similar behavior in connection with other obligations or commitments.

 

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g.     If any term or provision of this Agreement is determined to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity of the Agreement.

 

h.    All the terms specified in the Agreement shall be calculated based on calendar days. If any expiration operates on a non-business day it shall be extended to the first following business day.

 

i.        The Agreement shall be governed and construed according to the laws of Argentina, without giving effect to its choice-of-law rules.

 

j.       Any dispute arising from, or related to, the execution, interpretation or performance of this Agreement shall be negotiated in good faith by the Parties. In the event the Parties fail to resolve the dispute through negotiation, upon request of any of the Parties the dispute shall be resolved by the Arbitration Tribunal of the Buenos Aires Stock Exchange (Tribunal de Arbitraje de la Bolsa de Comercio de Buenos Aires), who shall act in accordance with the rules of arbitration, and whose arbitration award shall be final and non-appealable

 

k.    The Parties have jointly participated in drafting this Agreement; thus, in case of ambiguity or any other circumstance requiring interpretation of its provisions, no assumption derived from the authorship of the Agreement shall benefit or harm any of the Parties.

 

l.        Unless otherwise expressly provided for in the Agreement, it shall be understood that: (i) any reference to the singular includes the plural and vice versa; (ii) any reference to the masculine gender includes the feminine gender and vice versa; (iii) any reference to a specific law includes the rules or supplementary legislation passed in connection with the mentioned legislation; and (iv) the term “including” or similar terms constitute an exemplification or list of examples.

 

m.     Any notice or communication given by the Parties in connection with this Agreement shall be made in writing, to the Individual Responsible Parties and delivered in person with acknowledgment of receipt, by means of electronic mail or by registered letter or by any other effective means enabling the determination of reception date and content of notice or communication. A copy of any notice shall be delivered to the General Coordinator.

 

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n. Notices or communications shall be deemed to have been given on the date of reception thereof by addressee. The Parties constitute their legal domicile, which shall be valid for all notices, at the addresses stated above.

 

	
 
    	
 
    	
 
    
	
By Cresud
    	
By Irsa
    	
By APSA
    

 

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Annex I

 

Description of Corporate Service Exchange Areas

 

Human Resources

 

The Human Resources area provides Human Resources Administration and Management services to Parties.

 

Human Resources administration involves activities such as payroll settlement, personnel administration, charities, benefits and labor relations.

 

Human Resources management involves personnel recruitment, selection, training, turnover, and related activities.

 

Finance

 

The Finance area provides Investors-Capital Markets Relations services and overall finance in connection with financial operations.

 

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Institutional Relations

 

The Institutional Relations area provides services such as development and control of advertising, diffusion and marketing actions, media relation, article preparation, brochures, and related activities to Parties.

 

Administration

 

The Administration area is responsible for supervising all accounting transactions carried out by Parties. It is responsible for the budget and management control of companies, including as main activities, preparation of financial statements, administration of taxes, supervision of payment to providers and collection from customers.

 

IT

 

The IT area provides IT structure maintenance, support and update services to Parties.

 

Support and maintenance at user level, helpdesk, safety and security measures, and related activities.

 

Infrastructure and communication maintenance, update and support.

 

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Insurance

 

The Insurance area manages the insurance coverage of Parties’ assets and is in charge of the negotiation, purchase and follow-up of policies, of dealing with losses as regards coverage collection, etc.

 

Procurement

 

The Procurement area is responsible for obtaining the good and/or service which best fits the use it shall be given, at the lowest cost and within the delivery term required by user.

 

Furthermore, it shall provide the necessary means to obtain an adequate financing of purchases by providers.

 

Paperwork

 

The Paperwork area provides internal and external documentation remittance and delivery services, procedures, paperwork, etc.

 

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Director Secretaries

 

It involves appointment of secretaries of Parties’ directors.

 

Contracts

 

The Contracts area provides assistance in the preparation, analysis and response of legal documents, agreements, petitions, etc.

 

Operations

 

The Operations sector provides surveillance, maintenance and works control / supervision services to the Parties.

 

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Annex II

 

Cost Allocation Bases

 

	
Cost Center
    	
 
    	
Allocation Method
    
	
 
    	
 
    	
 
    
	
Human Resources
    	
 
    	
Number of Files
    
	
 
    	
 
    	
 
    
	
Finance
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Financial Operations
    	
 
    	
Financial Assets and   Liabilities
    
	
 
    	
 
    	
 
    
	
Relationship with   Investors
    	
 
    	
Net worth and   Outstanding Shares
    
	
 
    	
 
    	
 
    
	
Institutional Relations
    	
 
    	
Task Distribution
    
	
 
    	
 
    	
 
    
	
Administration
    	
 
    	
Payment and Collections
    
	
 
    	
 
    	
 
    
	
IT
    	
 
    	
Desktops and Licenses
    
	
 
    	
 
    	
 
    
	
Insurance
    	
 
    	
Insured amounts and   volume of losses
    
	
 
    	
 
    	
 
    
	
Procurement
    	
 
    	
PO number and amount
    
	
 
    	
 
    	
 
    
	
Paperwork
    	
 
    	
Amount of paperwork
    
	
 
    	
 
    	
 
    
	
Director Secretaries
    	
 
    	
Appointed Companies
    
	
 
    	
 
    	
 
    
	
Contracts
    	
 
    	
Task Distribution
    
	
 
    	
 
    	
 
    
	
Operations
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Security
    	
 
    	
Per hours
    
	
 
    	
 
    	
 
    
	
Maintenance
    	
 
    	
Per area
    
	
 
    	
 
    	
 
    
	
Works
    	
 
    	
Per hours and area
    
	
 
    	
 
    	
 
    
	
Management
    	
 
    	
Per hours and area
    

 

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SIGNATURES

 

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the city of Buenos Aires, Argentina.

 

	
 
    	
IRSA Inversiones y   Representaciones Sociedad Anónima
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/S/ Saúl Zang
    
	
 
    	
Name:
    	
Saúl Zang
    
	
 
    	
Title:
    	
Vice Chairman of   the Board of Directors
    
				

 

Dated: October 11, 2004SUBSCRIPTION
AGREEMENT

 

This Subscription Agreement (this “Agreement”) is being delivered to the purchaser identified
on the signature page to this Agreement (the “Subscriber”) in connection with its investment in the securities of U.S.
Gold Corp., a Nevada corporation (the “Company”). The Company is conducting a private placement (the “Offering”)
of shares (the “Shares”) of the Company’s common stock, par value $0.001 per share (the “Common Stock”).
The Shares will be sold at a purchase price (the “Purchase Price”) of $2.79 per share of Common Stock. For purposes
of this Agreement, the term “Securities” shall refer to the Shares.

 

IMPORTANT
INVESTOR NOTICES

 

NO
OFFERING LITERATURE OR ADVERTISEMENT IN ANY FORM MAY BE RELIED UPON IN THE OFFERING OF THESE SECURITIES EXCEPT FOR THIS AGREEMENT
AND ANY SUPPLEMENTS HERETO, AND NO PERSON HAS BEEN AUTHORIZED TO MAKE ANY REPRESENTATIONS EXCEPT THOSE CONTAINED HEREIN.

 

THIS
AGREEMENT IS CONFIDENTIAL AND THE CONTENTS HEREOF MAY NOT BE REPRODUCED, DISTRIBUTED OR DIVULGED BY OR TO ANY PERSONS OTHER THAN
THE RECIPIENT OR ITS REPRESENTATIVE, ACCOUNTANT OR LEGAL COUNSEL, WITHOUT THE PRIOR WRITTEN CONSENT OF THE COMPANY. EACH PERSON
WHO ACCEPTS DELIVERY OF THIS AGREEMENT, ACKNOWLEDGES AND AGREES TO THE FOREGOING RESTRICTIONS.

 

THIS
AGREEMENT DOES NOT PURPORT TO BE ALL-INCLUSIVE OR TO CONTAIN ALL OF THE INFORMATION THAT A PROSPECTIVE INVESTOR MAY DESIRE IN
EVALUATING THE COMPANY, OR AN INVESTMENT IN THE OFFERING. THIS AGREEMENT DOES NOT CONTAIN ALL OF THE INFORMATION THAT WOULD NORMALLY
APPEAR IN A PROSPECTUS FOR AN OFFERING REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”).
A PROSPECTIVE INVESTOR MUST CONDUCT AND RELY ON ITS OWN EVALUATION OF THE COMPANY AND THE TERMS OF THE OFFERING, INCLUDING THE
MERITS AND RISKS INVOLVED, IN DECIDING WHETHER TO INVEST IN THE OFFERING.

 

THIS
AGREEMENT DOES NOT CONSTITUTE AN OFFER OR SOLICITATION OF AN OFFER TO ANY PERSON OR IN ANY JURISDICTION WHERE SUCH OFFER OR SOLICITATION
IS UNLAWFUL OR NOT AUTHORIZED. EACH PERSON WHO ACCEPTS DELIVERY OF THIS SUBSCRIPTION AGREEMENT AGREES TO RETURN IT AND ALL RELATED
DOCUMENTS IF SUCH PERSON DOES NOT PURCHASE ANY OF THE SECURITIES DESCRIBED HEREIN.

 

NEITHER
THE DELIVERY OF THIS AGREEMENT AT ANY TIME NOR ANY SALE OF SECURITIES HEREUNDER SHALL IMPLY THAT INFORMATION CONTAINED HEREIN
IS CORRECT AS OF ANY TIME SUBSEQUENT TO ITS DATE. THE COMPANY WILL EXTEND TO EACH PROSPECTIVE INVESTOR (AND TO ITS REPRESENTATIVE,
ACCOUNTANT OR LEGAL COUNSEL, IF ANY) THE OPPORTUNITY, PRIOR TO ITS PURCHASE OF SHARES, TO ASK QUESTIONS OF AND RECEIVE ANSWERS
FROM THE COMPANY CONCERNING THE OFFERING AND TO OBTAIN ADDITIONAL INFORMATION, TO THE EXTENT THE COMPANY POSSESSES THE SAME OR
CAN ACQUIRE IT WITHOUT UNREASONABLE EFFORT OR EXPENSE, IN ORDER TO VERIFY THE ACCURACY OF THE INFORMATION SET FORTH HEREIN. ALL
SUCH ADDITIONAL INFORMATION SHALL ONLY BE PROVIDED IN WRITING AND IDENTIFIED AS SUCH BY THE COMPANY THROUGH ITS DULY AUTHORIZED
OFFICERS AND/OR DIRECTORS ALONE; NO ORAL INFORMATION OR INFORMATION PROVIDED BY ANY THIRD PARTY MAY BE RELIED UPON.

 

NO
REPRESENTATIONS, WARRANTIES OR ASSURANCES OF ANY KIND ARE MADE OR SHOULD BE INFERRED WITH RESPECT TO THE ECONOMIC RETURN, IF ANY,
THAT MAY ACCRUE TO AN INVESTOR IN THE COMPANY.

 

THIS
AGREEMENT MAY CONTAIN FORWARD-LOOKING STATEMENTS REGARDING THE COMPANY’S PERFORMANCE, STRATEGY, PLANS, OBJECTIVES, EXPECTATIONS,
BELIEFS AND INTENTIONS. THE OUTCOME OF THE EVENTS DESCRIBED IN THESE FORWARD-LOOKING STATEMENTS IS SUBJECT TO SUBSTANTIAL RISKS,
AND ACTUAL RESULTS COULD DIFFER MATERIALLY.

 

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THE
OFFERING PRICE OF THE SECURITIES IN THIS OFFERING HAS BEEN DETERMINED ARBITRARILY. THE PRICE OF THE SECURITIES DOES NOT NECESSARILY
BEAR ANY RELATIONSHIP TO THE ASSETS, EARNINGS OR BOOK VALUE OF THE COMPANY, OR TO POTENTIAL ASSETS, EARNINGS, OR BOOK VALUE OF
THE COMPANY. THE COMPANY RESERVES THE RIGHT, IN ITS SOLE DISCRETION, TO REJECT ANY SUBSCRIPTION IN WHOLE OR IN PART FOR ANY REASON
OR FOR NO REASON. THE COMPANY IS NOT OBLIGATED TO NOTIFY RECIPIENTS OF THIS AGREEMENT WHETHER ALL OF THE SECURITIES OFFERED HEREBY
HAVE BEEN SOLD.

 

SUBSCRIBERS
MAY BE DEEMED TO BE IN POSSESSION OF MATERIAL NON-PUBLIC INFORMATION WITHIN THE MEANING OF THE UNITED STATES SECURITIES LAWS AND
REGULATIONS REGARDING A PUBLIC COMPANY. THIS AGREEMENT CONTAINS CONFIDENTIAL INFORMATION CONCERNING THE COMPANY, AND HAS BEEN
PREPARED SOLELY FOR USE IN CONNECTION WITH THE OFFERING DESCRIBED HEREIN. ANY USE OF THIS INFORMATION FOR ANY PURPOSE OTHER THAN
IN CONNECTION WITH THE CONSIDERATION OF AN INVESTMENT IN THE SECURITIES OF THE COMPANY THROUGH THE OFFERING DESCRIBED HEREIN MAY
SUBJECT THE USER TO CIVIL AND/OR CRIMINAL LIABILITY. THE RECIPIENT, BY ACCEPTING THIS AGREEMENT, AGREES NOT TO: (I) DISTRIBUTE
OR REPRODUCE THIS AGREEMENT, IN WHOLE OR IN PART, AT ANY TIME, WITHOUT THE PRIOR WRITTEN CONSENT OF THE COMPANY; (II) TO KEEP
CONFIDENTIAL THE EXISTENCE OF THIS DOCUMENT AND THE INFORMATION CONTAINED HEREIN OR MADE AVAILABLE IN CONNECTION WITH ANY FURTHER
INVESTIGATION OF THE COMPANY; AND (III) REFRAIN FROM TRADING IN THE PUBLICLY-TRADED SECURITIES OF THE COMPANY OR ANY OTHER RELEVANT
COMPANY FOR SO LONG AS SUCH RECIPIENT IS IN POSSESSION OF THE MATERIAL NON-PUBLIC INFORMATION CONTAINED HEREIN. SUBSCRIBERS ARE
ADVISED THAT THEY SHOULD SEEK THEIR OWN LEGAL COUNSEL PRIOR TO EFFECTUATING ANY TRANSACTIONS IN THE PUBLICLY TRADED COMPANY’S
SECURITIES.

 

FOR
RESIDENTS OF ALL STATES

 

THIS
OFFERING IS BEING MADE TO “ACCREDITED INVESTORS,” AS SUCH TERM IS DEFINED IN RULE 501 OF REGULATION D UNDER THE SECURITIES
ACT OR “NON-US PERSONS” AS SUCH TERM IS DEFINED IN REGULATION S UNDER THE SECURITIES ACT. THE SECURITIES HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OR THE SECURITIES LAWS OF ANY STATE AND WILL BE OFFERED AND SOLD IN RELIANCE UPON THE
EXEMPTION FROM REGISTRATION AFFORDED BY SECTION 4(a)(2) THEREUNDER AND REGULATION D (RULE 506) AND REGULATION S OF THE SECURITIES
ACT AND CORRESPONDING PROVISIONS OF STATE SECURITIES LAWS.

 

THE
SECURITIES OFFERED HEREBY ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT
AS PERMITTED UNDER THE SECURITIES ACT AND APPLICABLE STATE LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. SUBSCRIBERS
SHOULD BE AWARE THAT THEY WILL BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.

 

THE
SECURITIES OFFERED HEREBY HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION, ANY STATE
SECURITIES COMMISSION OR ANY OTHER REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON OR ENDORSED THE
MERITS OF THIS OFFERING OR THE ACCURACY OR ADEQUACY OF THIS AGREEMENT. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

 

PROSPECTIVE
SUBSCRIBERS SHOULD NOT CONSTRUE THE CONTENTS OF THIS AGREEMENT AS INVESTMENT, LEGAL, BUSINESS, OR TAX ADVICE. EACH SUBSCRIBER
SHOULD CONTACT HIS, HER OR ITS OWN ADVISORS REGARDING THE APPROPRIATENESS OF THIS INVESTMENT AND THE TAX CONSEQUENCES THEREOF,
WHICH MAY DIFFER DEPENDING ON A SUBSCRIBER’S PARTICULAR FINANCIAL SITUATION. IN NO EVENT SHOULD THIS AGREEMENT BE DEEMED
OR CONSIDERED TO BE TAX ADVICE PROVIDED BY THE COMPANY.

 

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1.
SUBSCRIPTION AND PURCHASE PRICE 

 

1.1
Subscription. Subject to the conditions set forth in Section 2 hereof, the Subscriber hereby subscribes for and agrees
to purchase the number of Shares indicated on the signature page hereof on the terms and conditions described herein.

 

1.2
Purchase of Shares. The Subscriber understands and acknowledges that the purchase price to be remitted to the Company in
exchange for the Shares shall be set at $2,79 per share of Common Stock, for an aggregate purchase price as set forth on the signature
page hereof (the “Aggregate Purchase Price”). The Subscriber’s delivery of this Agreement to the Company shall
be accompanied by payment for the Shares subscribed for hereunder, payable in United States Dollars, by wire transfer of immediately
available funds delivered contemporaneously with the Subscriber’s delivery of this Agreement to the Company in accordance
with the wire instructions below. The Subscriber understands and agrees that, subject to Section 2 and applicable laws, by executing
this Agreement, it is entering into a binding agreement.

 

1.3
The Aggregate Purchase Price is payable by wire transfer of immediately available funds to:

 

Wire
instructions:

 

Bank
of America

1330
N. Main Street

W
alnut Creek, CA 94596 ABA#: 026 009 593

FBO:
U.S. Gold Corp

Acct#:
8980 6834 2323

 

2.
ACCEPTANCE, OFFERING TERM AND CLOSING PROCEDURES

 

2.1
Acceptance. Subject to full, faithful and punctual performance and discharge by the Company of all of its duties, obligations
and responsibilities as set forth in this Agreement and any other agreement entered into between the Subscriber and the Company
relating to this subscription (collectively, the “Transaction Documents”) to be performed or discharged on or prior
to the Closing in which such Subscriber participates, the Subscriber shall be legally bound to purchase the Shares pursuant to
the terms and conditions set forth in this Agreement. For the avoidance of doubt, upon the occurrence of the failure by the Company
to fully, faithfully and punctually perform and discharge any of its duties, obligations and responsibilities as set forth in
any of the Transaction Documents, which shall have been performed or otherwise discharged prior to the Closing (as defined below),
the Subscriber may, on or prior to the Closing, at its sole and absolute discretion, elect not to purchase the Shares and provide
instructions to the Company to receive the full and immediate refund of the Aggregate Purchase Price. In the event the Closing
does not take place because of (i) the election not to purchase the Shares by the Subscriber or (ii) the failure to effectuate
the Closing (as defined below) for any reason or no reason, this Agreement and any other Transaction Documents shall thereafter
be terminated and have no force or effect, and the parties shall take all steps, including the execution of instructions to the
Company, to ensure that the Aggregate Purchase Price shall promptly be returned or caused to be returned to the Subscriber without
interest thereon or deduction therefrom.

 

2.2
Closing. The closing of the purchase and sale of the Shares hereunder (the “Closing”) shall take place at such
time and place as determined by the Company. Closings shall take place on a Business Day promptly following the satisfaction of
the conditions set forth in Section 6 below, as determined by the Company (the “Closing Date”). “Business Day”
shall mean from the hours of 9:00 a.m. (Eastern Time) through 5:00 p.m. (Eastern Time) of a day other than a Saturday, Sunday
or other day on which commercial banks in New York, New York are authorized or required to be closed. The Shares purchased by
the Subscriber will be delivered by the Company promptly following the Closing Date of the Offering.

 

2.3
Following Acceptance or Rejection. The Subscriber acknowledges and agrees that this Agreement and any other documents delivered
in connection herewith will be held by the Company. Prior to the Company’s execution, in the event that this Agreement is
not accepted by the Company for whatever reason, which the Company expressly reserves the right to do, this Agreement, the Aggregate
Purchase Price received (without interest thereon) and any other documents delivered in connection herewith will be returned to
the Subscriber at the address of the Subscriber as set forth in this Agreement. If this Agreement is accepted by the Company,
the Company is entitled to treat the Aggregate Purchase Price received as an interest free loan to the Company until such time
as the Subscription is accepted.

 

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2.4
Extraordinary Events Regarding Common Stock. In the event that the Company shall (a) issue additional shares of Common
Stock as a dividend or other distribution on outstanding Common Stock, (b) subdivide its outstanding shares of Common Stock, or
(c) combine its outstanding shares of the Common Stock into a smaller number of shares of Common Stock, then, in each such event,
the Purchase Price shall, simultaneously with the happening of such event, be adjusted by multiplying the then Purchase Price
by a fraction, the numerator of which shall be the number of shares of Common Stock outstanding immediately prior to such event
and the denominator of which shall be the number of shares of Common Stock outstanding immediately after such event, and the product
so obtained shall thereafter be the Purchase Price then in effect. The Purchase Price, as so adjusted, shall be readjusted in
the same manner upon the happening of any successive event or events described herein. The number of Shares that the Subscriber
shall thereafter be entitled to receive shall be adjusted to a number determined by multiplying the number of shares of Common
Stock that would otherwise (but for the provisions of this Section) be issuable on such conversion or exercise by a fraction of
which (a) the numerator is the Purchase Price that would otherwise (but for the provisions of this Section) be in effect, and
(b) the denominator is the Purchase Price then in effect.

 

2.5
Certificate as to Adjustments. In each case of any adjustment or readjustment in the Shares, the Company, at its expense,
will promptly cause its Chief Financial Officer or other appropriate designee to compute such adjustment or readjustment in accordance
with the terms hereof, and prepare a certificate setting forth such adjustment or readjustment and showing in detail the facts
upon which such adjustment or readjustment is based. The Company will forthwith mail a copy of each such certificate to the Subscriber.
To the extent any such certificate contains material non-public information, the Company shall, no later than the first Business
Day after the date of delivery of such certificate to the Subscriber, include such material non-public information in a Current
Report on Form 8-K filed with the United States Securities and Exchange Commission (the “SEC”). From and after the
filing of such Form 8-K, the Company shall have disclosed all material non-public information (if any) delivered to the Subscriber
by the Company or any of its Subsidiaries, or any of their respective officers, directors, employees or agents in connection with
the transactions described in such certificate.

 

3.
THE SUBSCRIBER’S REPRESENTATIONS, WARRANTIES AND COVENANTS

 

3.1
The Subscriber has full power and authority to enter into this Agreement, the execution and delivery of which has been duly authorized,
if applicable, and this Agreement constitutes a valid and legally binding obligation of the Subscriber, except as may be limited
by bankruptcy, reorganization, insolvency, moratorium and similar laws of general application relating to or affecting the enforcement
of rights of creditors, and except as enforceability of the obligations hereunder are subject to general principles of equity
(regardless of whether such enforceability is considered in a proceeding in equity or law).

 

3.2
If the Subscriber is a U.S. person, the Subscriber acknowledges its understanding that the Offering and sale of the Securities
is intended to be exempt from registration under the Securities Act, by virtue of Section 4(a)(2) of the Securities Act and the
provisions of Regulation D promulgated thereunder (“Regulation D”). In furtherance thereof, the Subscriber represents
and warrants to the Company and its affiliates as follows:

 

(a)
The Subscriber is an “Accredited Investor” as defined in Rule 501(a) under the Securities Act and as indicated by
the Subscriber’s responses to the questions contained in Exhibit A attached hereto, In general, an “Accredited
Investor” is deemed to be an institution with assets in excess of $5,000,000 or individuals with a net worth in excess of
$1,000,000 (excluding such person’s residence) or annual income exceeding $200,000 or $300,000 jointly with his or her spouse.

 

(b)
The Subscriber realizes that the basis for the exemption from registration may not be available if, notwithstanding the Subscriber’s
representations contained herein, the Subscriber is merely acquiring the Securities for a fixed or determinable period in the
future, or for a market rise, or for sale if the market does not rise. The Subscriber does not have any such intention.

 

(c)
The Subscriber realizes that the basis for exemption would not be available if the Offering is part of a plan or scheme to evade
registration provisions of the Securities Act or any applicable state or federal securities laws, except sales pursuant to a registration
statement or sales that are exempted under the Securities Act.

 

    	 	4	 

    	 

    

 

(d)
The Subscriber is acquiring the Securities solely for the Subscriber’s own beneficial account, for investment purposes,
and not with a view towards, or resale in connection with, any distribution of the Securities.

 

(e)
The Subscriber has the financial ability to bear the economic risk of the Subscriber’s investment, has adequate means for
providing for its current needs and contingencies, and has no need for liquidity with respect to an investment in the Company.

 

(f)
The Subscriber and the Subscriber’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively,
the “Advisors”) has such knowledge and experience in financial and business matters as to be capable of evaluating
the merits and risks of a prospective investment in the Securities. If other than an individual, the Subscriber also represents
it has not been organized solely for the purpose of acquiring the Securities.

 

(g)
The Subscriber (together with its Advisors, if any) has received all documents requested by the Subscriber, if any, and has carefully
reviewed them and understands the information contained therein, prior to the execution of this Agreement.

 

3.2
If the Subscriber is a non-U.S. person, the Subscriber acknowledges its understanding that the Offering and sale of the Securities
is intended to be exempt from registration under the Securities Act, by virtue of Regulation S promulgated thereunder (“Regulation
S”). In furtherance thereof, the Subscriber represents and warrants to the Company and its affiliates as follows:

 

(a)
The Subscriber is not a “U.S. Person” as such term is defined in Regulation S, as indicated by the Subscriber’s
responses to the questions contained in Exhibit B attached hereto, and that the Subscriber is able to bear the economic
risk of an investment in the Securities.

 

(b)
The Subscriber realizes that the basis for the exemption from registration may not be available if, notwithstanding the Subscriber’s
representations contained herein, the Subscriber is merely acquiring the Securities for a fixed or determinable period in the
future, or for a market rise, or for sale if the market does not rise. The Subscriber does not have any such intention.

 

(c)
The Subscriber realizes that the basis for exemption would not be available if the Offering is part of a plan or scheme to evade
registration provisions of the Securities Act or any applicable state or federal securities laws, except sales pursuant to a registration
statement or sales that are exempted under the Securities Act.

 

(d)
The Subscriber is acquiring the Securities solely for the Subscriber’s own beneficial account, for investment purposes,
and not with a view towards, or resale in connection with, any distribution of the Securities.

 

(e)
The Subscriber has the financial ability to bear the economic risk of the Subscriber’s investment, has adequate means for
providing for its current needs and contingencies, and has no need for liquidity with respect to an investment in the Company.

 

(f)
The Subscriber and the Subscriber’s Advisors has such knowledge and experience in financial and business matters as to be
capable of evaluating the merits and risks of a prospective investment in the Securities. If other than an individual, the Subscriber
also represents it has not been organized solely for the purpose of acquiring the Securities.

 

(g)
The Subscriber (together with its Advisors, if any) has received all documents requested by the Subscriber, if any, and has carefully
reviewed them and understands the information contained therein, prior to the execution of this Agreement.

 

3.3
The Subscriber is not relying on the Company or any of its employees, agents, sub-agents or advisors with respect to the legal,
tax, economic and related considerations involved in this investment. The Subscriber has relied on the advice of, or has consulted
with, only its Advisors. Each Advisor, if any, has disclosed to the Subscriber in writing (a copy of which is annexed to this
Agreement) the specific details of any and all past, present or future relationships, actual or contemplated, between the Advisor
and the Company or any affiliate or sub-agent thereof.

 

    	 	5	 

    	 

    

 

3.4
The Subscriber has carefully considered the potential risks relating to the Company and a purchase of the Securities, and fully
understands that the Securities are a speculative investment that involves a high degree of risk of loss of the Subscriber’s
entire investment. Among other things, the Subscriber has carefully considered each of the risks described under the heading “Risk
Factors” and “Forward Looking Statements” in the Company’s SEC Filings (as defined below) and
any additional disclosures in the nature of Risk Factors described herein.

 

3.5
The Subscriber will not sell or otherwise transfer any Securities without registration under the Securities Act or an exemption
therefrom, and fully understands and agrees that the Subscriber must bear the economic risk of its purchase because, among other
reasons, the Securities have not been registered under the Securities Act or under the securities laws of any state and, therefore,
cannot be resold, pledged, assigned or otherwise disposed of unless they are subsequently registered under the Securities Act
and under the applicable securities laws of such states, or an exemption from such registration is available.

 

3.6
No oral or written representations or warranties have been made, or information furnished, to the Subscriber or its Advisors,
if any, by the Company or any of its officers, employees, agents, sub-agents, affiliates, advisors or subsidiaries in connection
with the Offering, other than any representations of the Company contained herein, and in subscribing for the Shares the Subscriber
is not relying upon any representations other than those contained herein.

 

3.7
The Subscriber’s overall commitment to investments that are not readily marketable is not disproportionate to the Subscriber’s
net worth, and an investment in the Securities will not cause such overall commitment to become excessive.

 

3.8
The Subscriber’s overall commitment to investments that are not readily marketable is not disproportionate to the Subscriber’s
net worth, and an investment in the Securities will not cause such overall commitment to become excessive.

 

3.9
The Subscriber understands and agrees that the certificates for the Securities shall bear substantially one of the following legends,
as the case may be:

 

“[NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN][THE SECURITIES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN] REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY
NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL TO THE HOLDER (IF REQUESTED BY THE COMPANY), IN A FORM
REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD OR ELIGIBLE TO BE SOLD
PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH
A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES;” or

 

“THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR UNDER THE LAWS OF ANY OTHER JURISDICTION, BUT HAVE BEEN ISSUED IN
RELIANCE ON AN EXEMPTION FROM REGISTRATION UNDER UNITED STATES SECURITIES LAWS CONTAINED IN REGULATION S UNDER THE SECURITIES
ACT. THE SECURITIES EVIDENCED BY THIS CERTIFICATE MAY NOT BE TRANSFERRED, NOR WILL ANY ASSIGNEE OR ENDORSEE HEREOF BE RECOGNIZED
AS AN OWNER HEREOF BY THE ISSUER FOR ANY PURPOSE, UNLESS EITHER THE TRANSFER IS MADE IN ACCORDANCE WITH REGULATION S, UNLESS A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT WITH RESPECT TO SUCH SHARES SHALL THEN BE IN EFFECT OR UNLESS THE AVAILABILITY
OF AN EXEMPTION FROM REGISTRATION WITH RESPECT TO ANY PROPOSED TRANSFER OR DISPOSITION OF SUCH SHARES SHALL BE ESTABLISHED TO
THE SATISFACTION OF COUNSEL FOR THE ISSUER. HEDGING TRANSACTIONS MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES
ACT.”

 

    	 	6	 

    	 

    

 

3.10
Certificates evidencing Securities shall not be required to contain the legend set forth in Section 3(h) above or any other legend
(i) while a registration statement covering the resale of such Securities is effective under the Securities Act, (ii) following
any sale of such Securities pursuant to Rule 144 (assuming the transferor is not an affiliate of the Company), (iii) if such Securities
are eligible to be sold, assigned or transferred under Rule 144 and the Subscriber is not an affiliate of the Company (provided
that the Subscriber provides the Company with reasonable assurances that such Securities are eligible for sale, assignment or
transfer under Rule 144 which shall not include an opinion of the Subscriber’s counsel), (iv) in connection with a sale,
assignment or other transfer (other than under Rule 144), provided that the Subscriber provides the Company with an opinion of
counsel, in a form generally acceptable to the Company, to the effect that such sale, assignment or transfer of the Securities
may be made without registration under the applicable requirements of the Securities Act or (v) if such legend is not required
under applicable requirements of the Securities Act (including, without limitation, controlling judicial interpretations and pronouncements
issued by the SEC). If a legend is not required pursuant to the foregoing, the Company shall no later than three (3) business
days following the delivery by the Subscriber to the Company or the transfer agent (with notice to the Company) of a legended
certificate representing such Securities (endorsed or with stock powers attached, signatures guaranteed, and otherwise in form
necessary to affect the reissuance and/or transfer, if applicable), together with any other deliveries from the Subscriber as
may be required above in this Section 3.10, as directed by the Subscriber, either: (A) provided that the Company’s transfer
agent is participating in the DTC Fast Automated Securities Transfer Program and such Securities are Common Stock, credit the
aggregate number of shares of Common Stock to which the Subscriber shall be entitled to the Subscriber’s or its designee’s
balance account with DTC through its Deposit/Withdrawal at Custodian system or (B) if the Company’s transfer agent is not
participating in the DTC Fast Automated Securities Transfer Program, issue and deliver (via reputable overnight courier) to the
Subscriber, a certificate representing such Securities that is free from all restrictive and other legends, registered in the
name of the Subscriber or its designee. The Company shall be responsible for any transfer agent fees or DTC fees with respect
to any issuance of Securities or the removal of any legends with respect to any Securities in accordance herewith; provided, however,
the Company shall not be responsible for payment of any legal opinions required in connection with the removal of legends from
the Securities.

 

3.11
Neither the SEC nor any state securities commission has approved the Securities or passed upon or endorsed the merits of the Offering.
There is no government or other insurance covering any of the Securities.

 

3.12
The Subscriber and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person
or persons acting on behalf of the Company concerning the Offering and the business, financial condition, results of operations
and prospects of the Company, and all such questions have been answered to the full satisfaction of the Subscriber and its Advisors,
if any.

 

3.13
The Subscriber further represents and warrants that:

 

(a)
In making the decision to invest in the Securities the Subscriber has relied solely upon the information provided by the Company
in the Transaction Documents. To the extent necessary, the Subscriber has retained, at its own expense, and relied upon appropriate
professional advice regarding the investment, tax and legal merits and consequences of this Agreement and the purchase of the
Securities hereunder. The Subscriber disclaims reliance on any statements made or information provided by any person or entity
in the course of Subscriber’s consideration of an investment in the Securities other than the Transaction Documents.

 

(b)
(i) the Subscriber was contacted regarding the sale of the Securities by the Company (or an authorized agent or representative
thereof) with whom the Subscriber had a prior substantial pre-existing relationship and (ii) no Securities were offered or sold
to it by means of any form of general solicitation or general advertising, and in connection therewith, the Subscriber did not
(A) receive or review any advertisement, article, notice or other communication published in a newspaper or magazine or similar
media or broadcast over television or radio, whether closed circuit, or generally available; or (B) attend any seminar meeting
or industry investor conference whose attendees were invited by any general solicitation or general advertising; or (C) observe
any website or filing of the Company with the SEC in which any offering of securities by the Company was described and as a result
learned of any offering of securities by the Company.

 

    	 	7	 

    	 

    

 

3.14
The Subscriber has taken no action that would give rise to any claim by any person for brokerage commissions, finders’ fees
or the like relating to this Agreement or the transactions contemplated hereby.

 

3.15
The Subscriber is not relying on the Company or any of its employees, agents, or advisors with respect to the legal, tax, economic
and related considerations of an investment in the Securities, and the Subscriber has relied on the advice of, or has consulted
with, only its own Advisors.

 

3.16
The Subscriber acknowledges that any estimates or forward-looking statements or projections furnished by the Company to the Subscriber
were prepared by the management of the Company in good faith, but that the attainment of any such projections, estimates or forward-looking
statements cannot be guaranteed by the Company or its management and should not be relied upon.

 

3.17
No oral or written representations have been made, or oral or written information furnished, to the Subscriber or its Advisors,
if any, in connection with the Offering that are in any way inconsistent with the information contained herein.

 

3.18
(For ERISA plans only) The fiduciary of the ERISA plan (the “Plan”) represents that such fiduciary has been informed
of and understands the Company’s investment objectives, policies and strategies, and that the decision to invest “plan
assets” (as such term is defined in ERISA) in the Company is consistent with the provisions of ERISA that require diversification
of plan assets and impose other fiduciary responsibilities. The Subscriber or Plan fiduciary (i) is responsible for the decision
to invest in the Company; (ii) is independent of the Company and any of its affiliates; (iii) is qualified to make such investment
decision; and (iv) in making such decision, the Subscriber or Plan fiduciary has not relied primarily on any advice or recommendation
of the Company or any of its affiliates.

 

3.19
This Agreement is not enforceable by the Subscriber unless it has been accepted by the Company, and the Subscriber acknowledges
and agrees that the Company reserves the right to reject any subscription for any reason.

 

3.20
The Subscriber, either alone or together with its representatives, has such knowledge, sophistication and experience in business
and financial matters so as to be capable of evaluating the merits and risks of the Offering, and has so evaluated the merits
and risks of such investment.

 

3.21
The Subscriber agrees to hold the Company and its directors, officers, employees, affiliates, controlling persons and agents and
their respective heirs, representatives, successors and assigns harmless and to indemnify them against all liabilities, costs
and expenses incurred by them as a result of (a) any sale or distribution of the Securities by the Subscriber in violation of
the Securities Act or any applicable state securities or “blue sky” laws; or (b) any false representation or warranty
or any breach or failure by the Subscriber to comply with any covenant made by the Subscriber in this Agreement (including the
appropriate Confidential Investor Questionnaire contained in Exhibit A and Exhibit B attached hereto, as the case
may be) or any other document furnished by the Subscriber to any of the foregoing in connection with this transaction.

 

4.
THE COMPANY’S REPRESENTATIONS, WARRANTIES AND COVENANTS

 

The
Company hereby acknowledges, agrees with and represents, warrants and covenants to each Subscriber as of the date hereof and as
of the Closing Date, except as otherwise qualified by the SEC Filings, as follows:

 

4.1
Organization and Qualification. The Company is a corporation duly organized, validly existing and in good standing under
the laws of its state of incorporation. The Company is duly qualified to do business, and is in good standing in the states required
due to (a) the ownership or lease of real or personal property for use in the operation of the Company’s business or (b)
the nature of the business conducted by the Company, except where the failure to so qualify would not, individually or in the
aggregate, have a Material Adverse Effect. The Company has all requisite power, right and authority to own, operate and lease
its properties and assets, to carry on its business as now conducted, to execute, deliver and perform its obligations under this
Agreement and the other Transaction Documents to which it is a party, and to carry out the transactions contemplated hereby and
thereby, subject to the Required Approvals. All actions on the part of the Company and its officers and directors necessary for
the authorization, execution, delivery and performance of this Agreement and the other Transaction Documents, the consummation
of the transactions contemplated hereby and thereby, and the performance of all of the Company’s obligations under this
Agreement and the other Transaction Documents have been taken or will be taken prior to the Closing. This Agreement has been,
and the other Transaction Documents to which the Company is a party on the Closing will be, duly executed and delivered by the
Company, and this Agreement is, and each of the other Transaction Documents to which it is a party on the Closing will be, a legal,
valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as may be limited
by bankruptcy, reorganization, insolvency, moratorium and similar laws of general application relating to or affecting the enforcement
of rights of creditors, and except as enforceability of the obligations hereunder are subject to general principles of equity
(regardless of whether such enforceability is considered in a proceeding in equity or law).

 

    	 	8	 

    	 

    

 

4.2
Issuance of Securities. The Securities to be issued to the Subscriber pursuant to this Agreement and the applicable Transaction
Documents, when issued and delivered in accordance with the terms of this Agreement and the applicable Transaction Documents,
will be duly and validly issued and will be fully paid and non-assessable.

 

4.3
Authorization; Enforcement. The execution, delivery and performance of this Agreement and the other Transaction Documents
by the Company, and the consummation of the transactions contemplated hereby and thereby, will not (a) constitute a violation
(with or without the giving of notice or lapse of time, or both) of any provision of any law or any judgment, decree, order, regulation
or rule of any court, agency or other governmental authority applicable to the Company, (b) require any consent, approval or authorization
of, or declaration, filing or registration with, any person, (c) result in a default (with or without the giving of notice or
lapse of time, or both) under, acceleration or termination of, or the creation in any party of the right to accelerate, terminate,
modify or cancel, any agreement, lease, note or other restriction, encumbrance, obligation or liability to which the Company is
a party or by which it is bound or to which any assets of the Company are subject, (d) result in the creation of any lien or encumbrance
upon the assets of the Company, or upon any shares of Common Stock, preferred stock or other securities of the Company, (e) conflict
with or result in a breach of or constitute a default under any provision of the articles of incorporation or bylaws of the Company,
or (f) invalidate or adversely affect any permit, license, authorization or status used in the conduct of the business of the
Company.

 

4.4
Filings, Consents and Approvals The Company is not required to obtain any consent, waiver, authorization or order of, give
any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority
or other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other
than: (i) approval (“NASDAQ Approval”) of the issuance and listing of the securities by and on The NASDAQ Stock Market
LLC (“NASDAQ”), if required by NASDAQ, (ii) approval of the Company’s stockholders of the Offering, if required
by NASDAQ, or (iii) the filing of Form D with the SEC and such filings as are required to be made under applicable state securities
laws, if required (collectively, the “Required Approvals”).

 

4.5
SEC Filings. The Company is subject to, and in full compliance with, the reporting requirements of Section 13 or 15(d)
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company has made available to each Subscriber
through the EDGAR system true and complete copies of the Company’s filings for the prior two full fiscal years plus any
interim period (collectively, the “SEC Filings”), and all such SEC Filings are incorporated herein by reference. The
SEC Filings, when they were filed with the SEC (or, if any amendment with respect to any such document was filed, when such amendment
was filed), complied in all material respects with the applicable requirements of the Exchange Act and the rules and regulations
thereunder and did not, as of such date, contain an untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they
were made, not misleading. All reports and statements required to be filed by the Company under the Exchange Act have been filed,
together with all exhibits required to be filed therewith. The Company and each of its direct and indirect subsidiaries, if any
(collectively, the “Subsidiaries”), are engaged in all material respects only in the business described in the SEC
Filings, and the SEC Filings contain a complete and accurate description in all material respects of the business of the Company
and the Subsidiaries.

 

    	 	9	 

    	 

    

 

4.6
No Financial Advisor. The Company acknowledges and agrees that each Subscriber is acting solely in the capacity of an arm’s
length purchaser with respect to the Securities and the transactions contemplated hereby. The Company further acknowledges that
Subscriber is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to this
Agreement and the transactions contemplated hereby and any advice given by any Subscriber or any of its representatives or agents
in connection with this Agreement and the transactions contemplated hereby is merely incidental to such Subscriber’s purchase
of the Securities. The Company further represents to each Subscriber that the Company’s decision to enter into this Agreement
has been based solely on the independent evaluation of the transactions contemplated hereby by the Company and its representatives.

 

4.7
Indemnification. The Company will indemnify and hold harmless each Subscriber and, where applicable, its directors, officers,
employees, agents, advisors and shareholders (each, an “Indemnitee”, from and against any and all loss, liability,
claim, damage and expense whatsoever (including, but not limited to, any and all fees, costs and expenses whatsoever reasonably
incurred in investigating, preparing or defending against any claim, lawsuit, administrative proceeding or investigation whether
commenced or threatened) (the “Indemnified Liabilities”), incurred by any Indemnitee as a result of, or arising out
of, or relating to (i) any misrepresentation or breach of any representation or warranty made by the Company or any Subsidiary
in any of the Transaction Documents, (ii) any breach of any covenant, agreement or obligation of the Company or any Subsidiary
contained in any of the Transaction Documents or (iii) any cause of action, suit, proceeding or claim brought or made against
such Indemnitee by a third party (including for these purposes a derivative action brought on behalf of the Company or any Subsidiary)
or which otherwise involves such Indemnitee that arises out of or results from (A) the execution, delivery, performance or enforcement
of any of the Transaction Documents, (B) any transaction financed or to be financed in whole or in part, directly or indirectly,
with the proceeds of the issuance of the Securities, or (C) the status of such Subscriber or holder of the Securities either as
an investor in the Company pursuant to the transactions contemplated by the Transaction Documents or as a party to this Agreement
(including, without limitation, as a party in interest or otherwise in any action or proceeding for injunctive or other equitable
relief). To the extent that the foregoing undertaking by the Company may be unenforceable for any reason, the Company shall make
the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities which is permissible under applicable
law.

 

4.8
Capitalization and Additional Issuances. The capitalization of the Company is as set forth in the SEC Filings. Except as
set forth in the SEC Filings, no Person has any right of first refusal, preemptive right, right of participation, or any similar
right to participate in the transactions contemplated by the Transaction Documents. Except as disclosed in the SEC Filings, there
are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating
to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to
subscribe for or acquire any shares of Common Stock, or contracts, commitments, understandings or arrangements by which the Company
or any Subsidiary is or may become bound to issue additional shares of Common Stock or Common Stock equivalents. Except as set
forth in the SEC Filings, the issuance and sale of the Securities will not obligate the Company to issue shares of Common Stock
or other securities to any Person (other than the Subscribers) and will not result in a right of any holder of Company securities
to adjust the exercise, conversion, exchange or reset price under any of such securities. All of the outstanding shares of capital
stock of the Company are duly authorized, validly issued, fully paid and nonassessable, have been issued in material compliance
with all federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights
or similar rights to subscribe for or purchase securities. No further approval or authorization of any stockholder, the Board
of Directors or others is required for the issuance and sale of the Securities. Except for NASDAQ Approval, no further approval
or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale of the Securities.
Except as disclosed in the SEC Filings, there are no stockholders agreements, voting agreements or other similar agreements with
respect to the Company’s capital stock to which the Company is a party or, to the knowledge of the Company, between or among
any of the Company’s stockholders.

 

4.9
Private Placements. Assuming the accuracy of each Subscriber’s representations and warranties set forth in Section
3, no registration under the Securities Act is required for the offer and sale of the Securities by the Company to the Subscribers
as contemplated hereby.

 

4.10
General Solicitation. None of the Company, any of its affiliates (as defined in Rule 501(b) under the Securities Act) or
any person acting on behalf of the Company or such affiliate will solicit any offer to buy or offer or sell the Securities by
means of any form of general solicitation or general advertising within the meaning of Regulation D and Regulation S, including:
(i) any advertisement, article, notice or other communication published in any newspaper, magazine or similar medium or broadcast
over television or radio; and (ii) any seminar or meeting whose attendees have been invited by any general solicitation or general
advertising.

 

    	 	10	 

    	 

    

 

4.11
No Additional Agreements. Neither the Company nor any of its Subsidiaries has any agreement or understanding with any Subscriber
with respect to the transactions contemplated by the Transaction Documents other than pursuant to documents substantially identical
to the Transaction Documents.

 

5.
OTHER AGREEMENTS OF THE PARTIES

 

5.1
Furnishing of Information. As long as any Subscriber owns Securities, the Company covenants to timely file (or obtain extensions
in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after the date
hereof pursuant to the Exchange Act.

 

5.2
Securities Laws Disclosure; Publicity. The Company shall by 4:30 p.m. (New York City time) within four (4) Business Days
after this Agreement has been executed, file a Current Report on Form 8-K with the SEC (the “8-K Filing”). From and
after the filing of the 8-K Filing, the Company shall have publicly disclosed all material, non-public information delivered to
any of the Subscribers by the Company or any of its Subsidiaries, or any of their respective officers, directors, employees or
agents. The Company and each Subscriber shall consult with each other in issuing any press releases with respect to the transactions
contemplated hereby, and no Subscriber shall issue any such press release or otherwise make any such public statement without
the prior consent of the Company, which consent shall not unreasonably be withheld. Notwithstanding the foregoing, the Company
shall not publicly disclose the name of any Subscriber, or include the name of any Subscriber in any filing with the SEC or any
regulatory agency, without the prior written consent of such Subscriber, except to the extent such disclosure is required by law
in which case the Company shall provide the Subscribers with prior notice of such disclosure. The Company understands that any
such disclosure shall cause irreparable harm and each Subscriber shall be entitled to injunctive relief and liquidated damages
in connection therewith.

 

5.3
Integration. The Company shall not, and shall use its best efforts to ensure that no affiliate of the Company shall, after
the date hereof, sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security that would be
integrated with the offer or sale of the Shares in a manner that would require the registration under the Securities Act of the
sale of the Shares to the Subscribers.

 

5.4
Reservation of Securities.

 

(a)
The Company shall maintain a reserve from its duly authorized shares of Common Stock for issuance pursuant to the Transaction
Documents in such amount as may then be required to fulfill its obligations in full under the Transaction Documents, but not less
than 100% of the maximum number of shares of Common Stock issuable pursuant to the Transaction Documents (the “Required
Minimum”).

 

(b)
The Company shall, if applicable: (i) in the time and manner required by The NASDAQ Capital Market or such other principal market
on which the Company’s Common Stock is then primarily traded (the “Principal Market”), prepare and file with
such Principal Market an additional shares listing application covering a number of shares of Common Stock at least equal to the
Required Minimum on the date of such application, (ii) take all steps necessary to cause such shares of Common Stock to be approved
for listing or quotation on such Principal Market as soon as possible thereafter, (iii) provide to the Subscribers evidence of
such listing or quotation and (iv) maintain the listing or quotation of such Common Stock on any date at least equal to the Required
Minimum on such date on such Principal Market or another Principal Market. The Company will then take all commercially reasonable
action necessary to continue the listing or quotation and trading of its Common Stock on a Principal Market for as long as any
Subscriber holds Securities, and will comply in all material respects with the Company’s reporting, filing and other obligations
under the bylaws or rules of the Principal Market at least until five years after the Closing Date. In the event the aforedescribed
listing is not continuously maintained for five years after the Closing Date (a “Listing Default”), then in addition
to any other rights the Subscribers may have hereunder or under applicable law, on the first day of a Listing Default and on each
monthly anniversary of each such Listing Default date (if the applicable Listing Default shall not have been cured by such date)
until the applicable Listing Default is cured, the Company shall pay to each Subscriber an amount in cash, as partial liquidated
damages and not as a penalty, equal to 1% of (x) Aggregate Purchase Price of Shares, held by such Subscriber on the date of a
Listing Default and (y) the aggregate purchase price of Shares held by such Subscriber on the day of a Listing Default and on
every thirtieth day (pro-rated for periods less than thirty days) thereafter with respect to Shares held as of each such date
until the date such Listing Default is cured or Subscriber no longer holds any Shares. If the Company fails to pay any liquidated
damages pursuant to this Section in a timely manner, the Company will pay interest thereon at a rate of 1.5% per month (pro-rated
for partial months) to the Subscriber, up to a maximum of sixteen (16%) percent for such interest and liquidated damages amounts,
collectively.

 

    	 	11	 

    	 

    

 

5.5
Form D and Blue Sky. If required, the Company shall file a Form D with respect to the Securities as required under
Regulation D and to provide a copy thereof to each Subscriber promptly after such filing. The availability of the filed Form D
on EDGAR shall satisfy the foregoing delivery requirement. The Company shall, on or before the Closing Date, take such action
as the Company shall reasonably determine is necessary in order to obtain an exemption for, or to, qualify the Securities for
sale to the Subscribers at the Closing pursuant to this Agreement under applicable securities or “Blue Sky” laws of
the states of the United States (or to obtain an exemption from such qualification), and shall provide evidence of any such action
so taken to the Subscribers on or prior to the Closing Date. Without limiting any other obligation of the Company under this Agreement,
the Company shall timely make all filings and reports relating to the offer and sale of the Securities required under all applicable
securities laws (including, without limitation, all applicable federal securities laws and all applicable “Blue Sky”
laws), and the Company shall comply with all applicable federal, foreign, state and local laws, statutes, rules, regulations and
the like relating to the offering and sale of the Securities to the Subscribers.

 

5.6
Use of Proceeds. The Company anticipates using the gross proceeds from the Offering as set forth on Exhibit C.

 

5.7
Non-Public Information. Except with respect to the material terms and conditions of the transactions contemplated by the
Transaction Documents, the Company covenants and agrees that neither it, nor any other Person acting on its behalf will provide
any Subscriber or its agents or counsel with any information that the Company believes constitutes or could constitute material
non-public information, and each Subscriber agrees, and shall direct its agents and counsel not to, request any material non-public
information from the Company or any Person acting on its behalf, unless prior thereto such Subscriber shall have executed a written
agreement with the Company regarding the willingness to accept receipt of such material non-public information and acknowledges
the confidentiality and use of such information and the Company’s covenant to file a further SEC filing or report and the
period in which such information shall remain confidential or be required to not be disclosed. The Company understands and confirms
that each Subscriber shall be relying on the foregoing covenant in effecting transactions in securities of the Company. In addition,
effective upon the filing of the 8-K Filing, the Company acknowledges and agrees that any and all confidentiality or similar obligations
under any agreement, whether written or oral, between the Company and any of its Subsidiaries or any of their respective officers,
directors, affiliates, employees or agents, on the one hand, and the Subscriber or any of its affiliates on the other hand, shall
terminate.

 

5.8
DTC Program. From the Closing Date until such time as no Subscriber holds any of the Securities (such date, the “Release
Date”), the Company shall use its best efforts to employ as the transfer agent for the Common Stock a participant in the
Depository Trust Company Automated Securities Transfer Program (FAST) and cause the Common Stock to be transferable pursuant to
such program.

 

6.
CONDITIONS TO ACCEPTANCE OF SUBSCRIPTION

 

6.1
The Closing of the sale of the Shares is conditioned upon satisfaction of the following conditions precedent on or before the
Closing Date:

 

(a)
As of the Closing, no legal action, suit or proceeding shall be pending against the Company that seeks to restrain or prohibit
the transactions contemplated by this Agreement.

 

(b)
The representations and warranties of the Company and the Subscribers contained in this Agreement shall have been true and correct
in all material respects on the date of this Agreement (except whether such representations are qualified by material or material
adverse effect, which shall be true and correct in all respects) and shall be true and correct as of the Closing as if made on
the Closing Date and the Company shall have performed, satisfied and complied in all respects with the covenants, agreements and
conditions required to be performed, satisfied or complied with by the Company in connection with the consummation of the transactions
contemplated by the Transaction Documents at or prior to the Closing Date.

 

    	 	12	 

    	 

    

 

(c)
The Company shall have submitted to NASDAQ, a “Listing of Additional Shares” application (the “LAS”) for
the listing of the Shares thereon and NASDAQ shall have completed its review of the LAS without comment, if required by NASDAQ.

 

7.
MISCELLANEOUS PROVISIONS

 

7.1
All parties hereto have been represented by counsel, and no inference shall be drawn in favor of or against any party by virtue
of the fact that such party’s counsel was or was not the principal draftsman of this Agreement.

 

7.2.
Each of the parties hereto shall be responsible to pay the costs and expenses of its own legal counsel in connection with the
preparation and review of this Agreement and related documentation.

 

7.3
Neither this Agreement, nor any provisions hereof, shall be waived, modified, discharged or terminated except by an instrument
in writing signed by the party against whom any waiver, modification, discharge or termination is sought.

 

7.4
The representations, warranties and agreement of each Subscriber and the Company made in this Agreement shall survive the execution
and delivery of this Agreement and the delivery of the Securities.

 

7.5
Any party may send any notice, request, demand, claim or other communication hereunder to the Subscriber at the address set forth
on the signature page of this Agreement or to the Company at its primary office (including personal delivery, expedited courier,
messenger service, fax, ordinary mail or electronic mail), but no such notice, request, demand, claim or other communication will
be deemed to have been duly given unless and until it actually is received by the intended recipient. Any party may change the
address to which notices, requests, demands, claims and other communications hereunder are to be delivered by giving the other
parties written notice in the manner herein set forth.

 

7.6
Except as otherwise provided herein, this Agreement shall be binding upon, and inure to the benefit of, the parties to this Agreement
and their heirs, executors, administrators, successors, legal representatives and assigns. If any Subscriber is more than one
person or entity, the obligation of any Subscriber shall be joint and several and the agreements, representations, warranties
and acknowledgments contained herein shall be deemed to be made by, and be binding upon, each such person or entity and its heirs,
executors, administrators, successors, legal representatives and assigns. This Agreement sets forth the entire agreement and understanding
between the parties as to the subject matter hereof and merges and supersedes all prior discussions, agreements and understandings
of any and every nature among them.

 

7.7
This Agreement is not transferable or assignable by the Company.

 

7.8
Except as otherwise provided herein, this Agreement shall not be changed, modified or amended and no right hereunder shall be
waived, except in writing signed by both (a) the Company and (b) Subscribers holding at least 60% of the Shares sold in the Offering
outstanding on the date of determination. The Company shall be prohibited from offering any additional consideration to any Subscriber
in this Offering (or such original Subscriber’s transferee) for the purposes of inducing such person to change, modify,
waive or amend any term of this Agreement or any other Transaction Document without making the same offer on a pro-rata basis
to all other Subscribers (and those transferees) in this Offering allocable to the securities acquired by such transferee(s).

 

7.9
This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without giving effect
to conflicts of law principles.

 

7.10
The Company and each Subscriber hereby agree that any dispute that may arise between them arising out of or in connection with
this Agreement shall be adjudicated before a court located in the City of New York, Borough of Manhattan, and they hereby submit
to the exclusive jurisdiction of the federal and state courts of the State of New York located in the City of New York, Borough
of Manhattan with respect to any action or legal proceeding commenced by any party, and irrevocably waive any objection they now
or hereafter may have respecting the venue of any such action or proceeding brought in such a court or respecting the fact that
such court is an inconvenient forum, relating to or arising out of this Agreement or any acts or omissions relating to the sale
of the securities hereunder, and consent to the service of process in any such action or legal proceeding by means of registered
or certified mail, return receipt requested, postage prepaid, in care of the address set forth herein or such other address as
either party shall furnish in writing to the other.

 

    	 	13	 

    	 

    

 

7.11
WAIVER OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY,
THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY,
IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.

 

7.12
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument.

 

7.13
Legal Representation. Each party hereto acknowledges that it has been represented by independent legal counsel in the preparation
of the Agreement and each party waives any conflicts of interest and other allegations that it has not been represented by its
own counsel.

 

[Signature
Pages Follow]

 

    	 	14	 

    	 

    

 

ALL
SUBSCRIBERS MUST COMPLETE THIS PAGE

 

IN
WITNESS WHEREOF, the Subscriber has executed this Agreement on the ____ day of _____, 2017.

 

	 	x
    $2.79 for per share of Common

Stock =	 
	Shares
    subscribed for	 	Aggregate
Purchase Price

 

Manner
in which Title is to be held (Please Check One):

 

	1.	___	Individual	7.	___	Trust/Estate/Pension
        or Profit sharing Plan

        Date
        Opened:______________

	2.	___	Joint
    Tenants with Right of Survivorship	8.	___	As
        a Custodian for

        ________________________________

        Under
        the Uniform Gift to Minors Act of the State of

        ________________________________

	3.	___	Community
    Property	9.	___	Married
    with Separate Property
	4.	___	Tenants
    in Common	10.	___	Keogh
	5.	___	Corporation/Partnership/
    Limited Liability Company	11.	___	Tenants
    by the Entirety
	6.	___	IRA	 	 	 

 

ALTERNATIVE
DISTRIBUTION INFORMATION

 

To
direct distribution to a party other than the registered owner, complete the information below. YOU MUST COMPLETE THIS SECTION
IF THIS IS AN IRA INVESTMENT.

 

Name
of Firm (Bank, Brokerage, Custodian):

 

Account
Name:

 

Account
Number:

 

Representative
Name:

 

Representative
Phone Number:

 

Address:

 

City,
State, Zip:

 

    	 	15	 

    	 

    

 

IF
MORE THAN ONE SUBSCRIBER, EACH SUBSCRIBER MUST SIGN.

INDIVIDUAL SUBSCRIBERS MUST COMPLETE THIS PAGE.

SUBSCRIBERS WHICH ARE ENTITIES MUST COMPLETE THE FOLLOWING PAGE.

 

EXECUTION
BY NATURAL PERSONS

 

	_____________________________________________________________________________

        Exact
        Name in Which Title is to be Held

	 
	_________________________________

        Name
        (Please Print)
	 	_________________________________

        Name
        of Additional Purchaser

	 	 	 
	_________________________________

        Residence:
        Number and Street
	 	_________________________________

        Address
        of Additional Purchaser

	 	 	 
	_________________________________

        City,
        State and Zip Code
	 	_________________________________

        City,
        State and Zip Code

	 	 	 
	_________________________________

        Social
        Security Number
	 	_________________________________

        Social
        Security Number

	 	 	 
	_________________________________

        Telephone
        Number
	 	_________________________________

        Telephone
        Number

	 	 	 
	_________________________________

        Fax
        Number (if available)
	 	________________________________

        Fax
        Number (if available)

	 	 	 
	_________________________________

        E-Mail
        (if available)
	 	________________________________

        E-Mail
        (if available)

	 	 	 
	__________________________________

        (Signature)

        
	 	________________________________

        (Signature
        of Additional Purchaser)

	 	 	 
	ACCEPTED
    this ___ day of _________ 2017, on behalf of the Company.

 

	 	By:	 
	 	Name:	 
	 	Title:
    	 

 

[SIGNATURE
PAGE FOR SUBSCRIPTION AGREEMENT]

 

    	 	16	 

    	 

    

 

EXECUTION
BY SUBSCRIBER WHICH IS AN ENTITY

(Corporation,
Partnership, LLC, Trust, Etc.)

 

	_____________________________________________________________________________

        Name
        of Entity (Please Print)

	 
	Date
    of Incorporation or Organization:
	 
	State
    of Principal Office:
	 
	Federal
        Taxpayer Identification Number:

         

        ____________________________________________

        Office
        Address

         

        ____________________________________________

        City,
        State and Zip Code

         

        ____________________________________________

        Telephone
        Number

         

        ____________________________________________

        Fax
        Number (if available)

         

        ____________________________________________

        E-Mail
        (if available)

         

 

	 	By:	 
	 	Name:	 
	 	Title:	 

 

	[seal]	 	 	 
	 	 	 	 
	Attest:	 	 	 
	 	(If
    Entity is a Corporation)	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	Address

 

ACCEPTED
this ____ day of __________ 2017, on behalf of the Company.

 

	 	By:	 
	 	Name:
    	 
	 	Title:
    	 

 

[SIGNATURE
PAGE FOR SUBSCRIPTION AGREEMENT]

 

    	 	17	 

    	 

    

 

EXHIBIT
A

 

CONFIDENTIAL
INVESTOR QUESTIONNAIRE FOR “ACCREDITED INVESTORS” Instructions: Check all boxes below which correctly describe
you.

 

	[  ]	You
    are (i) a bank, as defined in Section 3(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”),
    (ii) a savings and loan association or other institution, as defined in Section 3(a)(5)(A) of the Securities Act, whether
    acting in an individual or fiduciary capacity, (iii) a broker or dealer registered pursuant to Section 15 of the Securities
    Exchange Act of 1934, as amended (the “Exchange Act”), (iv) an insurance company as defined in Section
    2(13) of the Securities Act, (v) an investment company registered under the Investment Company Act of 1940, as amended
    (the “Investment Company Act”), (vi) a business development company as defined in Section 2(a)(48)
    of the Investment Company Act, (vii) a Small Business Investment Company licensed by the U.S. Small Business Administration
    under Section 301 (c) or (d) of the Small Business Investment Act of 1958, as amended, (viii) a plan established and
    maintained by a state, its political subdivisions, or an agency or instrumentality of a state or its political subdivisions,
    for the benefit of its employees and you have total assets in excess of $5,000,000, or (ix) an employee benefit plan
    within the meaning of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) and (1)
    the decision that you shall subscribe for and purchase Shares, is made by a plan fiduciary, as defined in Section 3(21) of
    ERISA, which is either a bank, savings and loan association, insurance company, or registered investment adviser, or (2) you
    have total assets in excess of $5,000,000 and the decision that you shall subscribe for and purchase the Shares is made solely
    by persons or entities that are accredited investors, as defined in Rule 501 of Regulation D promulgated under the Securities
    Act (“Regulation D”) or (3) you are a self-directed plan and the decision that you shall subscribe for
    and purchase the Securities is made solely by persons or entities that are accredited investors.
	 	 
	[  ]	You
    are a private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940, as amended.
	 	 
	[  ]	You
    are an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the “Code”),
    a corporation, Massachusetts or similar business trust or a partnership, in each case not formed for the specific purpose
    of making an investment in the Securities and its underlying securities in excess of $5,000,000.
	 	 
	[  ]	You
    are a director or executive officer of the Company.
	 	 
	[  ]	You
    are a natural person whose individual net worth, or joint net worth with your spouse, exceeds $1,000,000 (excluding residence)
    at the time of your subscription for and purchase of the Securities.
	 	 
	[  ]	You
    are a natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income
    with your spouse in excess of $300,000 in each of the two most recent years, and who has a reasonable expectation of reaching
    the same income level in the current year.
	 	 
	[  ]	You
    are a trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the Securities and
    whose subscription for and purchase of the Securities is directed by a sophisticated person as described in Rule 506(b)(2)(ii)
    of Regulation D.
	 	 
	[  ]	You
    are an entity in which all of the equity owners are persons or entities described in one of the preceding paragraphs.

 

    	 	18	 

    	 

    

 

Check
all boxes below which correctly describe you.

 

With
respect to this investment in the Securities, your:

 

	 	Investment Objectives: 	[  ] Aggressive Growth 	[  ] Speculation	 
	 	 	 	 	 
	 	Risk Tolerance: 	[  ] Low Risk 	[  ] Moderate Risk 	[  ] High Risk

 

Are
you associated with a FINRA Member Firm? [  ] Yes [  ] No

 

Your
initials (purchaser and co-purchaser, if applicable) are required for each item below:

 

	____
    ____ 	I/We
    understand that this investment is not guaranteed.
	 	 
	____
    ____ 	I/We
    are aware that this investment is not liquid.
	 	 
	____
    ____ 	I/We
    are sophisticated in financial and business affairs and are able to evaluate the risks and merits of an investment in this
    offering.
	 	 
	____
    ____ 	I/We
    confirm that this investment is considered “high risk.” (This type of investment is considered high risk due to
    the inherent risks including lack of liquidity and lack of diversification. Success or failure of private placements such
    as this is dependent on the corporate issuer of these securities and is outside the control of the investors. While potential
    loss is limited to the amount invested, such loss is possible.)

 

The
Subscriber hereby represents and warrants that all of its answers to this Investor Questionnaire are true as of the date of its
execution of the Subscription Agreement pursuant to which it purchased the Securities.

 

	___________________________________

        Name of Purchaser [please print]

         

        ___________________________________

        Signature
        of Purchaser (Entities please

        provide
        signature of Purchaser’s duly

        authorized
        signatory.)

         

        ___________________________________

        Name
        of Signatory (Entities only)

         

        ___________________________________

        Title
        of Signatory (Entities only)
	___________________________________

        Name of Co-Purchaser [please print]

         

        ___________________________________

        Signature
        of Co-Purchaser

 

[SIGNATURE
PAGE FOR INVESTOR QUESTIONNAIRE]

 

    	 	19	 

    	 

    

 

EXHIBIT
B

 

CONFIDENTIAL
INVESTOR QUESTIONNAIRE FOR NON-U.S. PERSONS

 

The
Subscriber represents and warrants as follows:

 

1.
No Public Solicitation. I did not acquire the Securities pursuant to this Agreement as a result of or subsequent to any
advertisement, article, notice or other communication published in any newspaper, magazine or similar media or broadcast over
television or radio, or presented at any seminar or meeting, or any solicitation of a subscription by a person not previously
known to me in connection with investments in securities generally or as a result of any registration statement of the Company
filed with the Securities and Exchange Commission or any other securities agency or regulator. Neither the Company nor I have
engaged in any “Directed Selling Efforts in the U.S.” as defined in Regulation S.

 

2.
Regulation S Exemption. I understand that the Securities were offered and issued to me in reliance on an exemption from
the registration requirements of United States federal and state securities laws under Regulation S promulgated under the Securities
Act and that the Company relied, and continues to rely, upon the truth and accuracy of the representations, warranties, agreements,
acknowledgments and understandings set forth in this Agreement in order to determine the applicability of such exemptions and
my suitability to acquire the Securities, and my suitability to sell the Securities. In this regard, I represent, warrant and
agree that:

 

(a)
I am not a U.S. Person (as defined below) and am not an affiliate (as defined in Rule 501(b) under the Securities Act) of the
Company. A U.S. Person means any one of the following:

 

	 	(i)	any
    U.S. Citizen;
	 	 	 
	 	(ii)	any
    natural person resident in the United States of America;
	 	 	 
	 	(iii)	any
    partnership or corporation organized or incorporated under the laws of the United States of America;
	 	 	 
	 	(iv)	any
    estate of which any executor or administrator is a U.S. person;
	 	 	 
	 	(v)	any
    trust of which any trustee is a U.S. person;
	 	 	 
	 	(vi)	any
    agency or branch of a foreign entity located in the United States of America;
	 	 	 
	 	(vii)	any
    non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit
    or account of a U.S. person;
	 	 	 
	 	(viii)	any
    discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated
    or (if an individual) resident in the United States of America; and

 

    	 	20	 

    	 

    

 

	 	(ix)	any
    partnership or corporation if:

 

	 	(A)	organized
    or incorporated under the laws of any foreign jurisdiction; and
	 	 	 
	 	(B)	formed
    by a U.S. person principally for the purpose of investing in securities not registered under the Securities Act, unless it
    is organized or incorporated, and owned, by accredited investors (as defined in Rule 501(a) under the Securities Act) who
    are not natural persons, estates or trusts.

 

(b)
At the time of the origination of contact concerning this offer of the Securities and the issuance of the Securities to me and
the date hereof, I was outside of the United States.

 

(c)
I will not, during the offering period and for six months thereafter, (the “Restricted Period”), offer, sell, pledge
or otherwise transfer the Securities in the United States, or to a U.S. Person for the account or benefit of a U.S. Person, or
otherwise in a manner that is not in compliance with Regulation S.

 

(d)
I will, after expiration of the Restricted Period, offer, sell, pledge or otherwise transfer the Securities only pursuant to registration
under the Securities Act or an available exemption there from and, in accordance with all applicable state and foreign securities
laws.

 

(e)
I have not, in any jurisdiction, engaged in, and prior to the expiration of the Restricted Period will not engage in, any short
selling of or any hedging transaction with respect to the Securities, including without limitation, any put, call or other option
transaction, option writing or equity swap.

 

(f)
Neither myself nor or any person acting on my behalf have engaged, nor will engage, in any directed selling efforts to U.S. Citizens
with respect to the Securities and I and any person acting on my behalf have complied and will comply with the “offering
restrictions” requirements of Regulation S under the Securities Act.

 

(g)
The transactions contemplated by this Agreement and my proposed resale of the Securities, if any, have not been pre-arranged with
a buyer located in the United States or with a U.S. Person, and are not part of a plan or scheme to evade the registration requirements
of the Securities Act.

 

(h)
Neither I nor any person acting on my behalf has undertaken or carried out any activity for the purpose of, or that could reasonably
be expected to have the effect of, conditioning the market in the United States, its territories or possessions, for any of the
Securities. I agree not to cause any advertisement of the Securities to be published in any newspaper or periodical or posted
in any public place and not to issue any circular relating to the Securities, except such advertisements that include the statements
required by Regulation S under the Securities Act, and only offshore and not in the U.S. or its territories, and only in compliance
with any local applicable securities laws.

 

(i)
I consent to the Company making a notation on its records or giving instructions to any transfer agent of the Company in order
to implement the restrictions on transfer of the Securities set forth herein.

 

(j)
For all Subscribers, please list types of prior investments:

 

	 	 
	 	 
	 	 

	 	 	 

 

(k)
For all Subscribers, please state whether you have participated in other private placements before:

 

	 	YES_______	NO_______

 

    	 	21	 

    	 

    

 

(l)
If your answer to question (k) above was “YES”, please indicate frequency of such prior participation in private
placements of:

 

	 	Public

        Companies
	 	Private

        Companies
	 	Public
        or Private Companies

        with
        no, or insignificant,

        assets
        and operations

	 	 	 	 	 	 
	Frequently	 	 	 	 	 
	Occasionally	 	 	 	 	 
	Never	 	 	 	 	 

 

(m)
For individual Subscribers, do you expect your current level of income to significantly decrease in the foreseeable future:

 

	 	YES_______	NO_______

 

(n)
For trust, corporate, partnership and other institutional Subscribers, do you expect your total assets to significantly decrease
in the foreseeable future:

 

	 	YES_______	NO_______

 

(o)
For all Subscribers, do you have any other investments or contingent liabilities which you reasonably anticipate could cause you
to need sudden cash requirements in excess of cash readily available to you:

 

	 	YES_______	NO_______

 

(p)
For all Subscribers, are you familiar with the risk aspects and the non-liquidity of investments such as the securities for which
you seek to subscribe?

 

	 	YES_______	NO_______

 

(q)
For all Subscribers, do you understand that there is no guarantee of financial return on this investment and that you run the
risk of losing your entire investment?

 

	 	YES_______	NO_______

 

3.
FINRA Affiliation.

 

Are
you affiliated or associated with an FINRA member firm (please check one):

 

	YES_______	NO_______	 

 

If
Yes, please describe:

 

______________________________________________________________________________

 

______________________________________________________________________________

 

______________________________________________________________________________

 

*If
Subscriber is a Registered Representative with an FINRA member firm, have the following acknowledgment signed by the appropriate
party:

 

The
undersigned FINRA member firm acknowledges receipt of the notice required by Article 3, Sections 28(a) and (b) of the Rules of
Fair Practice.

 

	 	 	 
	Name
    of FINRA Member Firm	 	 

 

	By:
    	 	 
	 	Authorized
    Officer	 

 

    	 	22	 

    	 

    

 

	Date:	 	 

 

The
Subscriber is informed of the significance to the Company of the foregoing representations and answers contained in the Confidential
Investor Questionnaire contained in this Exhibit B, Annex A and Annex B and such answers have been provided
under the assumption that the Company will rely on them.

 

The
Subscriber hereby represents and warrants that all of its answers to this Investor Questionnaire are true as of the date of its
execution of the Subscription Agreement pursuant to which it purchased the Securities.

 

	___________________________________

        Name of Purchaser [please print]

         

        ___________________________________

        Signature
        of Purchaser (Entities please

        provide
        signature of Purchaser’s duly

        authorized
        signatory.)

         

        ___________________________________

        Name
        of Signatory (Entities only)

         

        ___________________________________

        Title
        of Signatory (Entities only)
	___________________________________

        Name of Co-Purchaser [please print]

         

        ___________________________________

        Signature
        of Co-Purchaser

 

[SIGNATURE
PAGE FOR INVESTOR QUESTIONNAIRE]

 

    	 	23	 

    	 

    

 

ANNEX
A

 

UNITED
STATES ANTI-MONEY LAUNDERING

 

REPRESENTATIONS
AND WARRANTIES

 

In
connection with the acquisition of the Company’s Shares, the Subscriber hereby represents, warrants and covenants to the
Company as follows:

 

1.
The Subscriber has reviewed the website of the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”),
and conducted such other investigation as Subscriber deems necessary or prudent, prior to making these representations and warranties.
The Subscriber acknowledges that U.S. federal regulations and executive orders administered by OFAC prohibit, among other things,
engaging in transactions with, and the provision of services to, certain foreign countries, territories, entities and individuals.

 

2.
All evidence of identity provided in connection with the Subscriber’s acquisition of Shares is genuine and all related
information furnished is accurate.

 

3.
The Subscriber understands and agrees that the investment of funds is prohibited by or restricted with respect to any persons
or entities: (i) acting, directly or indirectly, on behalf of terrorists or terrorist organizations, including those persons,
entities and organizations that are included on any of the OFAC lists; (ii) residing or having a place of business in a country
or territory named on such lists or which is designated as a Non-Cooperative Jurisdiction by the Financial Action Task Force on
Money Laundering (“FATF”), or whose subscription funds are transferred from or through such a jurisdiction; (iii)
(A) that are a “Foreign Shell Bank” within the meaning of the USA PATRIOT Act or (B) that are a foreign bank other
than a “Regulated Affiliate” that is barred, pursuant to its banking license, from conducting banking activities with
the citizens of, or with the local currency of, the country that issued the license or (C) whose subscription funds are transferred
from or through the entities listed in foregoing clauses (A) and (B); or (iv) residing in, or organized under the laws of, a jurisdiction
designated by the Secretary of the Treasury under Sections 311 or 312 of the USA PATRIOT Act as warranting special measures due
to money laundering concerns. Such persons or entities in (i) through (iv) are collectively referred to as “Restricted Persons.”
Neither the Subscriber, nor any person or entity controlling, controlled by, or under common control with, the Subscriber, any
investors in the Subscriber (if the Subscriber is a pooled investment vehicle) or any person or entity for whom the Subscriber
is acting as agent, representative, intermediary, nominee or similar capacity (each such investor in the Subscriber and each such
person for whom the Subscriber acts as agent, representative, intermediary, nominee or in a similar capacity, an “Underlying
Beneficial Owner”) in connection with the acquisition of Shares is a Restricted Person.

 

4.
No funds tendered for the acquisition of Shares are directly or indirectly derived from activities that may contravene U.S. federal,
state or non-U.S. laws and regulations, including anti-money laundering laws, rules and regulations, and no capital contribution
in relation to Shares acquired by the Subscriber or, if applicable, any Underlying Beneficial Owner will be derived from any illegal
or illegitimate activities.

 

5.
To the extent the Subscriber has any Underlying Beneficial Owners, the Subscriber: (i) has carried out thorough due diligence
as to, and established the identities of, the Underlying Beneficial Owners and any related persons to the extent required by applicable
law and regulations (“Related Persons”); (ii) holds the evidence of such identities and will maintain all such evidence
for at least five years from the date of the completion of the liquidation of the Company; and (iii) will make such information
available to the Company upon the Company’s request.

 

6.
The Subscriber acknowledges and understands that the Company, in its sole discretion, may decline to accept any subscription for
Shares by a person who is a “Covered Person” within the meaning of the Guidance on Enhanced Scrutiny for Transactions
that May Involve the Proceeds of Foreign Official Corruption, issued by the U.S. Department of the Treasury, et al., January,
2001. Accordingly, the Subscriber agrees to inform the Company, prior to its acquisition of Shares, if the Subscriber or any person
controlling, controlled by, or under common control with, the Subscriber, or for whom the Subscriber is acting as agent or nominee
in connection with the acquisition of Shares, is a Covered Person.

 

7.
The Subscriber agrees to provide any information (including confidential information about the Subscriber and, if applicable,
any Underlying Beneficial Owner or Related Person) to any person deemed necessary by the Company, in its sole and absolute discretion,
to comply with its anti-money laundering responsibilities and policies and any laws, rules and regulations applicable to an investment
held or proposed to be held by the Company.

 

    	 	24	 

    	 

    

 

8.
The Subscriber authorizes and permits the Company, using its own reasonable business judgment, to report information about the
Subscriber, or any person controlling, controlled by, or under common control with the Subscriber, to appropriate authorities,
and the Subscriber agrees not to hold them liable for any loss or injury that may occur as the result of providing such information.

 

9.
The Subscriber agrees that, in the event of a material change with respect to the information provided in connection with the
purchase of the Shares, the Subscriber will provide the Company promptly with updated information affected by the material change.

 

10.
The Subscriber agrees that, notwithstanding any statement to the contrary in any agreement into which it has entered that relates
to the Company, or any statement to the contrary in any private placement memorandum of the Company, if the Company determines
that the Subscriber has appeared on a list of known or suspected terrorists or terrorist organizations compiled by any U.S. or
non-U.S. governmental agency, or that any information provided by the Subscriber in connection with the acquisition of Shares
is no longer true or accurate, the Company, without limiting any other rights available under any agreement between the Company
and the Subscriber, shall be authorized to take any action it deems necessary or appropriate as a result thereof. The Company
may be obligated to “freeze the account” of the Subscriber, either by prohibiting additional capital contributions,
restricting any distributions and/or declining any requests to transfer the Subscriber’s Shares. In addition, in any such
event, the Subscriber may forfeit its Shares, may be forced to withdraw from the Company or may otherwise be subject to the remedies
required by law, and the Subscriber shall have no claim against the Company nor its officers, directors, employees, agents, control
persons, affiliates and professional advisors and such parties shall be held harmless and indemnified by the Subscriber in accordance
with the indemnification section of this Agreement for any form of damages as a result of any of the actions described in this
paragraph. The Company may also be required to report such action and to disclose the Subscriber’s identity or provide other
information with respect to the Subscriber to OFAC or other governmental entities.

 

11.
The Subscriber acknowledges and agrees that any distributions paid to it by the Company will be paid to, and any contributions
made by it to the Company will be made from, an account in the Subscriber’s name unless the Company, in its sole discretion,
agrees otherwise.

 

12.
The Subscriber understands, acknowledges and agrees that the acceptance of this Agreement, together with the appropriate remittance,
will not breach any applicable money laundering or related rules or regulations (including, without limitation, any statutes,
rules or regulations in effect under the laws of the U.S.A. pertaining to prohibitions on money laundering or to transacting business
or dealing in property that may be blocked or may belong to Specially Designated Nationals, as such term is used by OFAC).

 

    	 	25	 

    	 

    

 

ANNEX
B

 

ANTI-MONEY
LAUNDERING DOCUMENTATION

 

The
Subscriber has delivered, or is concurrently delivering herewith, the true, correct and applicable documentation noted below that
is applicable to the Subscriber:

 

	 	(i)	Individuals
    (each of the following):

 

	 	(A)	Certified
    (notarized) copy of passport or other valid government identification document displaying the true name, signature, date of
    birth and photograph of the Subscriber (with certified English translation, if necessary); and
	 	 	 
	 	(B)	Copy
    of a recent bank statement or utility bill showing the Subscriber’s current home address.

 

	 	(ii)	Corporate
    (each of the following):

 

	 	(A)	Certificate
    of Incorporation (or equivalent) with evidence of any name changes;
	 	 	 
	 	(B)	Certificate
    of Good Standing;
	 	 	 
	 	(C)	Director
    resolution authorizing the investment, if applicable;
	 	 	 
	 	(D)	Current
    list or register of Directors;
	 	 	 
	 	(E)	Specimen
    signatures of persons authorized to bind the Subscriber with regard to its investments with name and office held printed underneath
    or Powers of Attorney or Letters of Authority (if applicable);
	 	 	 
	 	(F)	Information
    on at least two Directors (see (i) above for individuals and (ii) for all other entities);
	 	 	 
	 	(G)	Evidence
    of identity for authorized signatories and all beneficial owners of the Subscriber >25% OR comfort letter (see (i) above
    for individuals and (ii) for all other entities); and
	 	 	 
	 	(H)	Signed
    copy of the Subscriber’s latest available financial statements.

 

	 	(iii)	Limited
    Partnership (or Limited Liability Company) (each of the following):

 

	 	(A)	Certificate
    of Limited Partnership (or equivalent) (evidencing registered address) with evidence of any name changes;
	 	 	 
	 	(B)	Certified
    copy of the limited partnership agreement (or equivalent);
	 	 	 
	 	(C)	Limited
    partnership mandate (or equivalent) for making the investment (if any);
	 	 	 
	 	(D)	Specimen
    signatures of persons authorized to bind the Subscriber with regard to its investments with name and office held printed underneath
    or Powers of Attorney or Letters of Authority (if applicable);
	 	 	 
	 	(E)	Information
    on the individual(s) that control the general partner (or managing member, if applicable) (see (i) above for individuals and
    (ii) for all other entities);
	 	 	 
	 	(F)	Evidence
    of identity for authorized signatories and all beneficial owners of the Subscriber >25% OR comfort letter (see (i) above
    for individuals and (ii) for all other entities); and
	 	 	 
	 	(G)	Signed
    copy of the Subscriber’s latest available financial statements.

 

    	 	26	 

    	 

    

 

	 	(iv)	Trust
    (each of the following):

 

	 	(A)	Certified
    copy of Trust Deed/Agreement (including trust name, nature of trust, trustees, authorizations, date of trust and principal
    address);
	 	 	 
	 	(B)	Information
    about the trustee(s) and settlor(s) (or beneficial owner(s), if different than the settlor(s)) (see (i) above for individuals
    and (ii) for all other entities); and
	 	 	 
	 	(C)	Signed
    copy of the Subscriber’s latest available financial statements.
	 	 	 

 

	 	(v)	Private
    Pension Plans or Not For Profit (including Foundations and Charities) (each of the following):

 

	 	(A)	Certified
    copy of the entity’s formation documents;
	 	 	 
	 	(B)	An
    explanation of the nature of the entity’s purpose and operations;
	 	 	 
	 	(C)	Evidence
    of identity for authorized signatories, anyone who gives instructions on behalf of the entity and all beneficial owners of
    the Subscriber >25% OR comfort letter (see (i) above for individuals and (ii) for all other entities); and
	 	 	 
	 	(D)	Confirmation
    of not for profit designation from the applicable government authority.

 

	 	(vi)	Financial
    Institutions (additional requirements):

 

In
addition to the applicable requirements above, banks, brokers and other financial institutions must deliver a representation letter
in the form determined by the Company indicating that they have established and implemented anti-money laundering procedures reasonably
designed to achieve compliance with the USA PATRIOT Act.

 

The
Subscriber acknowledges that the Company and its affiliates may require further identification of the Subscriber or source of
funds before the subscription can be processed, and the Company and its officers, directors, employees, agents, control persons,
affiliates and professional advisors shall be held harmless and indemnified in accordance with the indemnification provisions
of the Agreement as a result of a failure to process the subscription if such information as has been required by the Company
has not been provided by the Subscriber. The Subscriber agrees to provide any information deemed necessary by the Company in its
sole and absolute discretion to comply with its anti-money laundering policies and obligations.

 

    	 	27	 

    	 

    

 

EXHIBIT
C

 

USE
OF PROCEEDS

 

    	 	28

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