Document:

Exhibit 10.16

 

SUBSCRIPTION AGREEMENT

 

THIS SUBSCRIPTION AGREEMENT
(this “Agreement”) is dated as of August ___, 2011 by and between Wizard World, Inc. (formerly GoEnergy, Inc.),
a Delaware corporation (the “Company”), and the subscribers identified on Schedule 1 hereto (collectively,
the “Subscribers” and each, a “Subscriber”).

 

WHEREAS, the Company
and the Subscribers are executing and delivering this Agreement in reliance upon an exemption from securities registration afforded
by the provisions of Section 4(2), Section 4(6) and/or Regulation D (“Regulation D”), as promulgated by the
United States Securities and Exchange Commission (the “Commission”) under the Securities Act of 1933, as amended
(the “1933 Act”);

 

WHEREAS, the parties
hereto desire that, upon the terms and subject to the conditions contained herein, the Company shall issue and sell to the Subscribers,
as provided herein, and the Subscribers, in the aggregate, shall purchase up to $455,000 principal amount (“Principal
Amount”) of promissory notes of the Company that are convertible into shares of the Company’s common stock, $.0001
par value per share (the “Common Stock”), a form of which is annexed hereto as Exhibit A (“Notes”),
and Series A common stock purchase warrants (the “Warrants”) in the form attached hereto as Exhibit B,
to purchase shares of Common Stock (the “Warrant Shares”), for any aggregate purchase price of up to $455,000
(“Purchase Price”)  (the “Offering”).  The Notes, shares of Common Stock
issuable upon conversion of the Notes (the “Shares”), the Warrants and the Warrant Shares are collectively referred
to herein as the “Securities”; and

 

WHEREAS, the Purchase
Price shall be held in escrow by Grushko & Mittman, P.C., 515 Rockaway Avenue, Valley Stream, New York 11581 (the “Escrow
Agent”) pursuant to the terms of an Escrow Agreement to be executed by the parties hereto substantially in the form attached
hereto as Exhibit C (the “Escrow Agreement”).

 

NOW, THEREFORE, in
consideration of the mutual covenants and other agreements contained in this Agreement, the Company and each of the Subscribers
hereby agree as follows:

 

1.        
   Closing.

 

(a)          Closing.  Subject
to the satisfaction or waiver of the terms and conditions of this Agreement, on the Closing Date (as defined herein) the Subscribers
shall purchase, and the Company shall sell to such Subscribers in accordance with Schedule 1 hereto, the Notes and the Warrants
as described in Section 2 below.  The date the Escrow Agent releases the funds received from one or more Subscribers
to the Company and releases the Escrow Documents (as defined in the Escrow Agreement) to the parties hereto in accordance with
the provisions of the Escrow Agreement shall be the “Closing Date” with respect to such released funds and Escrow
Documents, and such releases are referred to herein as the “Closing.”  The parties hereto may agree
to have more than one Closing once funds are deposited into the escrow account, in which case the first Closing shall be referred
to herein as the “Initial Closing”).

 

(b)          Time
Effective Clauses.  All time effective clauses not specifically related to an actual Closing Date shall be deemed
to have commenced as of the Initial Closing Date, if more than one Closing, or the Closing Date, if only one Closing.

 

2.            Notes
and Series A Warrant.

 

(a)          Notes.  On
the Closing Date, each Subscriber shall purchase, and the Company shall sell to each such Subscriber, a Note in the principal amount
designated on such Subscriber’s signature page hereto for such Subscriber’s Purchase Price indicated thereon.

 

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(b)          Series
A Warrants.  On the Closing Date, the Company shall issue and deliver the Warrants to the Subscribers as follows:  (i)
one Warrant shall be issued for every two Shares that would be issued upon the conversion of all or any part of the Note.  The
exercise price to acquire a Warrant Share upon exercise of a Warrant shall be $0.60, subject to amendment as described in the Warrants.  The
Warrants shall be exercisable until five (5) years after the Closing Date.

 

3.            Payment
and Allocation of Purchase Price.  In consideration of the issuance of the Note and Warrants on the Closing Date,
each Subscriber shall pay to or for the benefit of the Company such Subscriber’s Purchase Price, as set forth on the signature
pages hereto.  The number of Warrant Shares eligible for purchase by each such Subscriber is set forth on the signature
pages hereto.  The Purchase Price will be allocated among the components of the Notes and Warrants so that each component
of same will be fully paid and non-assessable.

 

4.            Subscriber
Representations and Warranties.  Each of the Subscribers, severally but not jointly, hereby represents and warrants
to, and agrees with the Company that, with respect only to such Subscriber:

 

(a)          Organization
and Standing of Subscriber.  If Subscriber is an entity, Subscriber is duly formed, validly existing and in good
standing under the laws of the jurisdiction of its formation.  If the Subscriber is a natural person, Subscriber has
the legal capacity and power to enter into the Transaction Documents (as defined herein).

 

(b)          Authorization
and Power.  Such Subscriber has the requisite power and authority to enter into and perform this Agreement and the
other Transaction Documents and to purchase the Notes and Warrants being sold to such Subscriber hereunder.  The execution,
delivery and performance of this Agreement and the other Transaction Documents by such Subscriber, and the consummation by such
Subscriber of the transactions contemplated hereby and thereby, have been duly authorized by all necessary action, and no further
consent or authorization of Subscriber or its board of directors, manager(s), trustee, stockholders, partners, members or beneficiaries,
as applicable, is required.  This Agreement and the other Transaction Documents have been duly authorized, executed and
delivered by such Subscriber and constitutes, or shall constitute, when executed and delivered, a valid and binding obligation
of such Subscriber, enforceable against Subscriber in accordance with the terms thereof.

 

(c)          No
Conflicts.  The execution, delivery and performance of this Agreement and the other Transaction Documents and the
consummation by such Subscriber of the transactions contemplated hereby and thereby or relating hereto do not and will not (i)
result in a violation of such Subscriber’s charter documents, bylaws or other organizational documents, if applicable; (ii)
conflict with nor constitute a default (or an event which with notice or lapse of time or both would become a default) under any
agreement to which such Subscriber is a party; or (iii) result in a violation of any law, rule or regulation, or any order, judgment
or decree of any court or governmental agency applicable to such Subscriber or its properties (except for such conflicts, defaults
and violations as would not, individually or in the aggregate, have a Material Adverse Effect (as defined herein) on Subscriber).  Such
Subscriber is not required to obtain any consent, authorization or order of, or make any filing or registration with, any court
or governmental agency in order for such Subscriber to execute, deliver or perform any of such Subscriber’s obligations under
this Agreement and the other Transaction Documents, nor to purchase the Securities in accordance with the terms hereof, provided
that for purposes of the representation made in this sentence, such Subscriber is assuming and relying upon the accuracy of the
relevant representations and agreements of the Company herein.

 

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(d)          Information
on Company.  Such Subscriber has been furnished with or has had access to the EDGAR Website of the Commission to
the Company’s filings made with the Commission through the tenth (10th) business day preceding the Closing Date
(hereinafter collectively referred to as the “Reports”).  Such Subscriber is not deemed to have any
knowledge of any information not included in the Reports, unless such information is delivered in the manner described in the next
sentence.  In addition, such Subscriber may have received in writing from the Company such other information concerning
its operations, financial condition and other matters as such Subscriber has requested in writing, identified thereon as OTHER
WRITTEN INFORMATION (such other information is collectively, the “Other Written Information”), and considered
all factors such Subscriber deems material in deciding on the advisability of investing in the Securities.

 

(e)          Information
on Subscriber.  Such Subscriber is, and will be at the time of the issuance of the Notes, the conversion of the Notes,
the issuance of the Warrants, and the exercise of the Warrants, an “accredited investor,” as such term is defined
in Regulation D promulgated by the Commission under the 1933 Act, is experienced in investments and business matters, has made
investments of a speculative nature and has purchased securities of United States publicly-owned companies in private placements
in the past and, with its representatives, has such knowledge and experience in financial, tax and other business matters as to
enable such Subscriber to utilize the information made available by the Company to evaluate the merits and risks of, and to make
an informed investment decision with respect to, the proposed purchase, which such Subscriber hereby agrees represents a speculative
investment.  Such Subscriber has the authority and is duly and legally qualified to purchase and own the Securities.  Such
Subscriber is able to bear the risk of such investment for an indefinite period and to afford a complete loss thereof.  The
information set forth on Schedule 1 hereto regarding such Subscriber is accurate and complete.

 

(f)          Purchase
of Notes and Warrants.  On the Closing Date, such Subscriber will purchase the Notes and Warrants as principal for
its own account for investment only and not with a view toward, or for resale in connection with, the public sale or any distribution
thereof.

 

(g)          Compliance
with Securities Act.  Such Subscriber understands and agrees that the Securities have not been registered under the
1933 Act or any applicable state securities laws by reason of their issuance in a transaction that does not require registration
under the 1933 Act (based in part on the accuracy of the representations and warranties of Subscriber contained herein), and that
such Securities must be held indefinitely unless a subsequent disposition is registered under the 1933 Act or any applicable state
securities laws or is exempt from such registration.  In any event, and subject to compliance with applicable securities
laws, Subscriber may enter into lawful hedging transactions in the course of hedging the position they assume and Subscriber may
also enter into lawful short positions or other derivative transactions relating to the Securities, or interests in the Securities,
and deliver the Securities, or interests in the Securities, to close out their short or other positions or otherwise settle other
transactions, or loan or pledge the Securities, or interests in the Securities, to third parties who in turn may dispose of these
Securities.

 

(h)          Conversion
Shares and Warrant Shares Legend.  The Conversion Shares and Warrant Shares shall bear the following or similar legend:

 

“THE ISSUANCE
AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
NOR 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 (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER AND REASONABLY APPROVED BY THE COMPANY), IN A GENERALLY ACCEPTABLE
FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS 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.”

 

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(i)          Notes
and Warrants Legend.  The Notes and Warrants shall bear the following legend:

 

“NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE [CONVERTIBLE
-OR-  EXERCISABLE] HAVE 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 (WHICH COUNSEL
SHALL BE SELECTED BY THE HOLDER AND REASONABLY APPROVED BY THE COMPANY), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT
REQUIRED UNDER SAID ACT OR (II) UNLESS 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.”

 

(j)          Communication
of Offer.  The Offering was directly communicated to such Subscriber by the Company.  At no time was such
Subscriber presented with or solicited by any leaflet, newspaper or magazine article, radio or television advertisement, or any
other form of general advertising or solicited or invited to attend a promotional meeting otherwise than in connection and concurrently
with such communicated offer.

 

(k)          Restricted
Securities.  Such Subscriber understands that the Securities have not been registered under the 1933 Act and such
Subscriber shall not sell, offer to sell, assign, pledge, hypothecate or otherwise transfer any of the Securities unless pursuant
to an effective registration statement under the 1933 Act, or unless an exemption from registration is available.  Notwithstanding
anything to the contrary contained in this Agreement, and subject to compliance with applicable securities laws, such Subscriber
may transfer (without restriction and without the need for an opinion of counsel as permitted under applicable law) the Securities:
(i) to such Subscriber’s Affiliates (as defined below), provided that each such Affiliate is an “accredited
investor,” as such term is defined in Regulation D promulgated by the Commission under the 1933 Act, and such Affiliate agrees
in writing to be bound by the terms and conditions of this Agreement; (ii) to such Subscriber’s Immediate Family (as defined
below), provided the Immediate Family member agrees in writing to be bound by the terms and conditions of this Agreement;
(iii) to an inter vivos or testamentary trust (or other entity) in which the Securities are to be passed to Subscriber’s
designated beneficiaries; or (iv) by will or by the laws of descent or distribution.  For the purposes of this Agreement,
an “Affiliate” of any person or entity means any other person or entity directly or indirectly controlling,
controlled by or under direct or indirect common control with such person or entity.  Without limiting the foregoing,
each Subsidiary (as defined herein) is an Affiliate of the Company.  For purposes of this definition, “control”
means the power to direct the management and policies of such person or entity, directly or indirectly, whether through the ownership
of voting securities, by contract or otherwise.  For purposes of this Agreement, “Immediate Family”
means any child, stepchild, parent, stepparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law,
daughter-in-law, brother-in-law, or sister-in-law.

 

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(l)          No
Governmental Review.  Such Subscriber understands that no United States federal or state securities agency or any
other governmental or state agency has passed on or made recommendations or endorsement of the Securities or the suitability of
the investment in the Securities, nor have such authorities passed upon or endorsed the merits of the Offering.

 

(m)          Independent
Decision.  The decision of such Subscriber to purchase Securities has been made by such Subscriber independently
of any other Subscriber and independently of any information, materials, statements or opinions as to the business, affairs, operations,
assets, properties, liabilities, results of operations, condition (financial or otherwise) or prospects of the Company which may
have been made or given by any other Subscriber or by any agent or employee of any other Subscriber, and no Subscriber or any of
its agents or employees shall have any liability to any other Subscriber (or any other Person) relating to or arising from any
such information, materials, statements or opinions. 

 

(n)          Correctness
of Representations.  Subscriber represents that the foregoing representations and warranties are true and correct
as of the date hereof and, unless Subscriber otherwise notifies the Company in writing prior to the Closing Date, shall be true
and correct as of the Closing Date.

 

(o)          Survival.  The
foregoing representations and warranties shall survive the Closing Date.

 

5.            Company
Representations and Warranties.  Except as set forth in the Schedules hereto, the Company represents and warrants
to, and agrees with each Subscriber that:

 

(a)          Due
Incorporation.  The Company is a corporation duly incorporated, validly existing and in good standing under the laws
of the State of Delaware and has the requisite corporate power to own its properties and to carry on its business as presently
conducted.  The Company is duly qualified as a foreign corporation to do business and is in good standing in each jurisdiction
where the nature of the business conducted or property owned by it makes such qualification necessary, other than those jurisdictions
in which the failure to so qualify would not have a Material Adverse Effect.  For purposes of this Agreement, a “Material
Adverse Effect” shall mean a material adverse effect on the financial condition, results of operations, prospects, properties
or business of the Company and its Subsidiaries taken as a whole.  For purposes of this Agreement, “Subsidiary”
means, with respect to any entity at any date, any direct or indirect corporation, limited or general partnership, limited liability
company, trust, estate, association, joint venture or other business entity of which (A) more than 30% of (i) the outstanding
capital stock having (in the absence of contingencies) ordinary voting power to elect a majority of the board of directors or other
managing body of such entity, (ii) in the case of a partnership or limited liability company, the interest in the capital
or profits of such partnership or limited liability company or (iii) in the case of a trust, estate, association, joint venture
or other entity, the beneficial interest in such trust, estate, association or other entity business is, at the time of determination,
owned or controlled directly or indirectly through one or more intermediaries, by such entity, or (B) is under the actual control
of the Company.  As of the Closing Date, all of the Company’s Subsidiaries and the Company’s other ownership
interests therein are set forth on Schedule 5(a).  The Company represents that it owns all of the equity
of the Subsidiaries and rights to receive equity of the Subsidiaries set forth on Schedule 5(a), free and clear of
all liens, encumbrances and claims, except as set forth on Schedule 5(a).  No person or entity other than
the Company has the right to receive any equity interest in the Subsidiaries.  Except as set forth on Schedule 5(a),
the Company further represents that neither the Company nor the Subsidiaries have been known by any other names for the five (5)
years preceding the date of this Agreement.

 

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(b)          Outstanding
Stock.  All issued and outstanding shares of capital stock and equity interests in the Company have been duly authorized
and validly issued and are fully paid and non-assessable.

 

(c)          Authority;
Enforceability.  This Agreement, the Notes, Warrants, the Escrow Agreement, and any other agreements delivered or
required to be delivered together with or pursuant to this Agreement or in connection herewith (collectively, the “Transaction
Documents”) have been duly authorized, executed and delivered by the Company and/or the Subsidiaries, as the case may
be, and are valid and binding agreements of the Company and/or the Subsidiaries, as the case may be, enforceable in accordance
with their terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general
applicability relating to or affecting creditors’ rights generally and to general principles of equity.  The Company
and/or the Subsidiaries, as the case may be, have full corporate power and authority necessary to enter into and deliver the Transaction
Documents and to perform their obligations thereunder.

 

(d)          Capitalization
and Additional Issuances.  The authorized and outstanding capital stock of the Company on a fully diluted basis and
the authorized and outstanding capital stock of the Subsidiaries and all outstanding rights to acquire or receive, directly or
indirectly, any equity of the Company and/or the Subsidiaries as of the date of this Agreement and the Closing Date (not including
the Securities) are set forth on Schedule 5(d).  Except as set forth on Schedule 5(d), there
are no options, warrants or rights to subscribe to securities, rights, understandings or obligations convertible into or exchangeable
for or granting any right to subscribe for any shares of capital stock or other equity interest of the Company or any of the Subsidiaries.  The
only officer, director, employee and consultant stock option or stock incentive plan or similar plan currently in effect or contemplated
by the Company is described on Schedule 5(d).  There are no outstanding agreements or preemptive or similar
rights affecting the Company’s Common Stock or equity.

 

(e)          Consents.  Except
as described in Section 12(b) below, no consent, approval, authorization or order of any court, governmental agency or body or
arbitrator having jurisdiction over the Company, the Subsidiaries or any of their Affiliates, any Principal Market (as defined
herein) or the Company’s stockholders is required for the execution by the Company of the Transaction Documents and compliance
and performance by the Company and the Subsidiaries of their respective obligations under the Transaction Documents, including,
without limitation, the issuance and sale of the Securities.  The Transaction Documents and the Company’s performance
of its obligations thereunder have been unanimously approved by the Company’s board of directors in accordance with the Company’s
Certificate of Incorporation and applicable law.  Any such qualifications and filings will, in the case of qualifications,
be effective upon Closing, and will, in the case of filings, be made within the time prescribed by law.

 

(f)          No
Violation or Conflict.  Conditioned upon the representations and warranties of Subscriber in Section 4 hereof being
materially true and correct, neither the issuance nor the sale of the Securities nor the performance of the Company’s obligations
under this Agreement and the other Transaction Documents by the Company, will:

 

(i)          violate,
conflict with, result in a breach of, or constitute a default (or an event which with the giving of notice or the lapse of time
or both would be reasonably likely to constitute a default) under (A) the certificate of incorporation or bylaws of the Company,
(B) to the Company’s knowledge, any decree, judgment, order, law, treaty, rule, regulation or determination applicable to
the Company of any court, governmental agency or body, or arbitrator having jurisdiction over the Company or over the properties
or assets of the Company or any of its Affiliates, (C) the terms of any bond, debenture, note or any other evidence of indebtedness,
or any agreement, stock option or other similar plan, indenture, lease, mortgage, deed of trust or other instrument to which the
Company or any of its Affiliates is a party, by which the Company or any of its Affiliates is bound, or to which any of the properties
of the Company or any of its Affiliates is subject or (D) the terms of any “lock-up” or similar provision of any underwriting
or similar agreement to which the Company, or any of its Affiliates is a party, except the violation, conflict, breach or default
of which would not have a Material Adverse Effect; or

 

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(ii)         result
in the creation or imposition of any lien, charge or encumbrance upon the Securities or any of the assets of the Company or any
of its Affiliates, except in favor of each Subscriber as described herein; or

 

(iii)        except
as set forth in Schedule 5(f) hereto, result in the activation of any anti-dilution rights or a reset or repricing of any
debt, equity or security instrument of any creditor or equity holder of the Company, or the holder of the right to receive any
debt, equity or security instrument of the Company, nor result in the acceleration of the due date of any obligation of the Company;
or

 

           (iv)         except
as set forth in Schedule 5(f) hereto, result in the triggering of any piggy-back or other registration rights of any person
or entity holding securities of the Company or having the right to receive securities of the Company.

 

(g)          The
Securities.  The Securities upon issuance:

 

(i)          are,
or will be, free and clear of any security interests, liens, claims or other encumbrances, subject only to restrictions upon transfer
under the 1933 Act and any applicable state securities laws;

 

(ii)         have
been, or will be, duly and validly authorized and on the dates of issuance of the Notes and Warrants, the Conversion Shares upon
conversion of the Notes, and the Warrant Shares upon exercise of the Warrants, such Notes, Warrants, Conversion Shares and Warrant
Shares will be duly and validly issued, fully paid and non-assessable and if registered pursuant to the 1933 Act and resold pursuant
to an effective registration statement or an exemption from registration, will be free trading, unrestricted and unlegended;

 

(iii)        will
not have been issued or sold in violation of any preemptive or other similar rights of the holders of any securities of the Company
or rights to acquire securities or debt of the Company;

 

(iv)         will
not subject the holders thereof to personal liability by reason of being such holders; and

 

(v)          conditioned
upon the representations and warranties of the Subscribers as set forth in Section 4 hereof being true and correct to the extent
required by Section 5 of the 1933 Act, will not result in a violation of Section 5 under the 1933 Act.

 

(h)          Litigation.  There
is no pending or, to the best knowledge of the Company, threatened action, suit, proceeding or investigation before any court,
governmental agency or body, or arbitrator having jurisdiction over the Company, or any of its Affiliates that would affect the
execution by the Company or the complete and timely performance by the Company of its obligations under the Transaction Documents.  Except
as disclosed in the Reports, there is no pending or, to the best knowledge of the Company, basis for or threatened action, suit,
proceeding or investigation before any court, governmental agency or body, or arbitrator having jurisdiction over the Company,
or any of its Affiliates which litigation if adversely determined would have a Material Adverse Effect.

 

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(i)          No
Market Manipulation.  The Company and its Affiliates have not taken, and will not take, directly or indirectly, any
action designed to, or that might reasonably be expected to, cause or result in stabilization or manipulation of the price of the
Common Stock to facilitate the sale or resale of the Securities or affect the price at which the Securities may be issued or resold.

 

(j)          Information
Concerning Company.  The Reports and Other Written Information contain all material information relating to the Company
and its operations and financial condition as of their respective dates which information is required to be disclosed therein.  Since
December 31, 2010, and except as disclosed in the Reports or modified in the Reports and Other Written Information or in the Schedules
hereto, there has been no Material Adverse Effect relating to the Company’s business, financial condition or affairs.  The
Reports and Other Written Information including the financial statements included therein do not contain any untrue statement of
a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, taken
as a whole, not misleading in light of the circumstances and when made.

 

(k)          Solvency.  Based
on the consolidated financial condition of the Company as of the Closing Date, after giving effect to the receipt by the Company
of the proceeds from the sale of the Securities hereunder, and subject to the assumption of continuing as a going concern, (i)
the Company’s fair saleable value of its assets exceeds the amount that will be required to be paid on or in respect of the
Company’s existing debts and other liabilities (including known contingent liabilities) as they mature; (ii) the Company’s
assets do not constitute unreasonably small capital to carry on its business for the current fiscal year as now conducted and as
proposed to be conducted, including its capital needs taking into account the particular capital requirements of the business conducted
by the Company, and projected capital requirements and capital availability thereof; and (iii) the current cash flow of the Company,
together with the proceeds the Company would receive, were it to liquidate all of its assets, after taking into account all anticipated
uses of the cash, would be sufficient to pay all amounts on or in respect of its debt when such amounts are required to be paid.  The
Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and
amounts of cash to be payable on or in respect of its debt).

 

(l)          Defaults.  The
Company is not in violation of its certificate of incorporation or bylaws.  The Company is (i) not in default under or
in violation of any other material agreement or instrument to which it is a party or by which it or any of its properties are bound
or affected, which default or violation would have a Material Adverse Effect, (ii) not in default with respect to any order of
any court, arbitrator or governmental body or subject to or party to any order of any court or governmental authority arising out
of any action, suit or proceeding under any statute or other law respecting antitrust, monopoly, restraint of trade, unfair competition
or similar matters which default would have a Material Adverse Effect, or (iii) not in violation of any statute, rule or regulation
of any governmental authority which violation would have a Material Adverse Effect.

 

(m)        No
Integrated Offering.  Neither the Company, nor any of its Affiliates, nor any person acting on its or their behalf,
has directly or indirectly made any offers or sales of any security of the Company nor solicited any offers to buy any security
of the Company under circumstances that would cause the offer of the Securities pursuant to this Agreement to be integrated with
prior offerings by the Company for purposes of the 1933 Act or any applicable stockholder approval provisions, including, without
limitation, under the rules and regulations of the Pink Sheets.  No prior offering will impair the exemptions relied
upon in this Offering or the Company’s ability to timely comply with its obligations hereunder.  Neither the Company
nor any of its Affiliates will take any action or suffer any inaction or conduct any offering other than the transactions contemplated
hereby that may be integrated with the offer or issuance of the Securities or that would impair the exemptions relied upon in this
Offering or the Company’s ability to timely comply with its obligations hereunder.

 

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(n)          No
General Solicitation.  Neither the Company, nor any of its Affiliates, nor to its knowledge, any person acting on
its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D
under the 1933 Act) in connection with the Offering or sale of the Securities.

 

(o)          No
Undisclosed Liabilities.  The Company has no liabilities or obligations which are material, individually or in the
aggregate, other than those incurred in the ordinary course of the Company’s business since December 31, 2010, and which,
individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect, except as disclosed in the Reports
or in Schedule 5(o).

 

(p)          No
Undisclosed Events or Circumstances.  Since December 31, 2010, except as disclosed in the Reports, no event or circumstance
has occurred or exists with respect to the Company or its businesses, properties, operations or financial condition, that, under
applicable law, rule or regulation, requires public disclosure or announcement prior to the date hereof by the Company but which
has not been so publicly announced or disclosed in the Reports.

 

(q)          Dilution.  The
Company’s executive officers and directors understand the nature of the Securities being sold hereby and recognize that the
issuance of the Securities will have a potential dilutive effect on the equity holdings of other holders of the Company’s
equity or rights to receive equity of the Company.  The board of directors of the Company has concluded, in its good
faith business judgment that the issuance of the Securities is in the best interests of the Company.  The Company specifically
acknowledges that its obligation to issue the Conversion Shares upon conversion of the Notes and the Warrant Shares upon exercise
of the Warrants is binding upon the Company and enforceable regardless of the dilution such issuance may have on the ownership
interests of other stockholders of the Company or parties entitled to receive equity of the Company.

 

(r)          No
Disagreements with Accountants and Lawyers.  There are no material disagreements of any kind presently existing,
or reasonably anticipated by the Company to arise, between the Company and the accountants and lawyers previously and presently
employed by the Company, including, but not limited to, disputes or conflicts over payment owed to such accountants and lawyers,
nor have there been any such disagreements during the two years prior to the Closing Date.

 

(s)          Investment
Company.  Neither the Company nor any Affiliate of the Company is an “investment company” within the
meaning of the Investment Company Act of 1940, as amended.

 

(t)          Foreign
Corrupt Practices.  Neither the Company, nor to the knowledge of the Company, any agent or other person acting on
behalf of the Company, has (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other
unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government
officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose
fully any contribution made by the Company (or made by any person acting on its behalf of which the Company is aware) which is
in violation of law, or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended.

 

    	9

    	 

    

(u)          Reporting
Company/Shell Company.  The Company is a publicly-held company.  As of the Closing Date, the Company
is not a “shell company” but is a “former shell company” as those terms are employed in Rule 144 under
the 1933 Act.  Except with respect to the Form 10-Q for the three month period ended January 31, 2011 that is being reviewed
by the Commission as of the date hereof, pursuant to the provisions of the 1934 Act, the Company has timely filed all reports and
other materials required to be filed thereunder with the Commission during the preceding twelve months.

 

(v)          Listing.  The
Company’s Common Stock is quoted on the Pink Sheets (“Pink Sheets”) under the symbol “WIZD”.  The
Company has not received any pending oral or written notice that its Common Stock is not eligible nor will become ineligible for
quotation on the Pink Sheets nor that its Common Stock does not meet all requirements for the continuation of such quotation.

 

(w)          DTC
Status.  The Company’s transfer agent is a participant in, and the Common Stock is or shall be eligible for
transfer pursuant to, the Depository Trust Company Automated Securities Transfer Program.  The name, address, telephone
number, fax number, contact person and email address of the Company transfer agent is set forth on Schedule 5(w)
hereto.

 

(x)          Company
Predecessor and Subsidiaries.  The Company makes each of the representations contained in Sections 5(a), (b), (c),
(d), (e), (f), (h), (j), (k), (l), (o), (p), (r), (s) and (t) of this Agreement, as same relate or could be applicable to each
Subsidiary.  All representations made by or relating to the Company of a historical or prospective nature and all undertakings
described in Section 9 hereto shall relate, apply and refer to the Company and the Subsidiaries and their predecessors and successors.

 

(y)          Correctness
of Representations.  The Company represents that the foregoing representations and warranties are true and correct
as of the date hereof in all material respects, and, unless the Company otherwise notifies the Subscribers prior to the Closing
Date, shall be true and correct in all material respects as of the Closing Date; provided that if such representation or
warranty is made as of a different date, such representation or warranty shall be true as of such date.

 

(z)          Survival.  The
foregoing representations and warranties shall survive the Closing Date.

 

6.            Regulation
D Offering/Legal Opinion.  The offer and issuance of the Securities to the Subscribers is being made pursuant to
an exemption from the registration provisions of the 1933 Act afforded by Section 4(2) or Section 4(6) of the 1933 Act and/or Rule
506 of Regulation D promulgated thereunder.  On the Closing Date, the Company will provide an opinion reasonably acceptable
to each Subscriber from the Company’s legal counsel in substantially the form attached hereto as Exhibit D opining
on the availability of an exemption from registration under the 1933 Act as it relates to the Offering and issuance of the Securities
and other matters reasonably requested by the Subscribers.  The Company will provide, at the Company’s expense,
to the Subscribers such other legal opinions, if any, as are necessary in each Subscriber’s opinion for the issuance and
resale of the Conversion Shares and Warrant Shares pursuant to an exemption from registration such as Rule 144 under the 1933 Act.

 

7.            Broker’s
Commission/Finder’s Fee. The Company on the one hand, and each Subscriber (for such Subscriber only) on the other
hand, agrees to indemnify the other against and hold the other harmless from any and all liabilities to any persons claiming brokerage
commissions or similar fees on account of services purported to have been rendered on behalf of the indemnifying party in connection
with this Agreement or the transactions contemplated hereby and arising out of such party’s actions.  The Company
represents that to the best of its knowledge there are no parties entitled to receive fees, commissions, finder’s fees, due
diligence fees or similar payments in connection with the Offering.  Anything in this Agreement to the contrary notwithstanding,
each Subscriber is providing indemnification only for such Subscriber’s own actions and not for any action of any other Subscriber.  The
liability of the Company and each Subscriber’s liability hereunder is several and not joint.

 

    	10

    	 

    

8.            Subscriber’s
Legal Fees.  The Company shall pay to Grushko & Mittman, P.C. a cash fee of $3,500 (“Legal Fees”)
as reimbursement for services rendered in connection with the transactions described in the Transaction Documents.  The
Legal Fees will be payable out of funds held pursuant to the Escrow Agreement.  Grushko & Mittman, P.C. will be reimbursed
at Closing or Initial Closing, as the case may be, by the Company for all lien searches, filing fees and reasonable printing and
shipping costs for the closing statements to be delivered to the Subscribers.

 

9.            Covenants
of the Company.  The Company covenants and agrees with the Subscribers as follows:

 

(a)          Stop
Orders.  Subject to the prior notice requirement described in Section 9(n) hereof, the Company will advise the Subscribers,
within twenty-four (24) hours after it receives notice of issuance by the Commission, any state securities commission or any other
regulatory authority of any stop order or of any order preventing or suspending any offering of any securities of the Company,
or of the suspension of the qualification of the Common Stock of the Company for offering or sale in any jurisdiction, or the initiation
of any proceeding for any such purpose.  The Company will not issue any stop transfer order or other order impeding the
sale, resale or delivery of any of the Securities, except as may be required by any applicable federal or state securities laws,
provided at least five (5) business days prior notice of such instruction is given to the Subscribers.

 

(b)          Listing/Quotation.  The
Company shall promptly secure the quotation or listing of the Conversion Shares and Warrant Shares upon each national securities
exchange, or automated quotation system upon which the Company’s Common Stock is quoted or listed and upon which such Conversion
Shares and Warrant Shares are or become eligible for quotation or listing (subject to official notice of issuance) and shall maintain
same so long as any Notes and Warrants are outstanding.  The Company will maintain the quotation or listing of its Common
Stock on the NYSE Amex Equities, Nasdaq Capital Market, Nasdaq Global Market, Nasdaq Global Select Market, OTC Markets, or New
York Stock Exchange (whichever of the foregoing is at the time the principal trading exchange or market for the Common Stock) (the
“Principal Market”), and will comply in all respects with the Company’s reporting, filing and other obligations
under the bylaws or rules of the Principal Market, as applicable. Subject to the limitation set forth in Section 9(n) hereof, the
Company will provide the Subscribers with copies of all notices it receives notifying the Company of the threatened and actual
delisting of the Common Stock from any Principal Market.  As of the date of this Agreement and the Closing Date, the
OTC Pink is the Principal Market.

 

(c)          Market
Regulations.  If required, the Company shall notify the Commission, the Principal Market and applicable state authorities,
in accordance with their requirements, of the transactions contemplated by this Agreement, and shall take all other necessary action
and proceedings as may be required and permitted by applicable law, rule and regulation, for the legal and valid issuance of the
Securities to the Subscribers and promptly provide copies thereof to the Subscribers.

 

    	11

    	 

    

(d)          Filing
Requirements.  Commencing on the four month anniversary after the date of this Agreement and until the last to occur
of (i) all the Conversion Shares have been resold or transferred by the Subscribers pursuant to a registration statement or pursuant
to Rule 144(b)(1)(i), or (ii) none of the Notes and Warrants are  outstanding (the date of such latest occurrence being
the “End Date”), the Company will (A) voluntarily comply with all reporting and filing requirements that are
applicable to an issuer subject to reporting obligations pursuant to Section 13 of the Securities Exchange Act of 1934, as amended
(the “1934 Act”) even if the Company is not subject to such reporting requirements sufficient to permit the Subscribers
to be able to resell the Conversion Shares and Warrant Shares pursuant to Rule 144(b)(i), (B) voluntarily comply with all reporting
requirements that are applicable to an issuer with a class of shares registered pursuant to Section 12(g) of the 1934 Act even
if the Company is not subject to such reporting requirements sufficient to permit the Subscribers to be able to resell the Conversion
Shares and Warrant Shares pursuant to Rule 144(b)(i) and (C) comply with all requirements related to any registration statement
filed pursuant to this Agreement.  The Company will use its commercially reasonable best efforts not to take any action
or file any document (whether or not permitted by the 1933 Act or the 1934 Act or the rules thereunder) to terminate or suspend
such registration or to terminate or suspend its reporting and filing obligations under said acts until the End Date.  Until
the End Date, the Company will continue the listing or quotation of the Common Stock on a Principal Market and will comply in all
respects with the Company’s reporting, filing and other obligations under the bylaws or rules of the Principal Market.  The
Company agrees to timely file a Form D with respect to the Securities if required under Regulation D and to provide a copy thereof
to each Subscriber promptly after such filing.

 

(e)          Use
of Proceeds.  The proceeds of the Offering will be substantially employed by the Company for the purposes set forth
on Schedule 9(e) hereto.  Except as described on Schedule 9(e), the Purchase Price may not
and will not be used for accrued and unpaid officer and director salaries, nor payment of financing related debt nor redemption
of outstanding notes or equity instruments of the Company nor non-trade payables outstanding on the Closing Date.

 

(f)          Reservation.  Prior
to the Closing or Initial Closing, as the case may be, the Company undertakes to reserve on behalf of the Subscribers from its
authorized but unissued Common Stock, a number of shares of Common Stock equal to 150% of the amount of Common Stock necessary
to allow the Subscribers to be able to convert all of the Notes and 100% of the amount of Warrant Shares issuable upon exercise
of the Warrants (“Required Reservation”).  Failure to have sufficient shares reserved pursuant to
this Section 9(f) at any time prior to the End Date shall be a material default of the Company’s obligations under this Agreement
and an Event of Default as employed in the Notes.  Without waiving the foregoing requirement, if at any time the Notes
and Warrants are outstanding the Company has reserved on behalf of the Subscribers less than 125% of the amount necessary for full
conversion of the outstanding Notes and interest accrued on such Notes at the conversion price in effect on every such date and
100% of the Warrant Shares issuable upon exercise of outstanding Warrants (“Minimum Required Reservation”),
the Company will promptly reserve the Minimum Required Reservation, or if there are insufficient authorized and available shares
of Common Stock to reserve the Minimum Required Reservation, the Company will take all action necessary to increase its authorized
capital to be able to fully satisfy its reservation requirements hereunder, including the filing of a preliminary proxy with the
Commission not later than fifteen (15) days after the first day the Company has reserved less than the Minimum Required Reservation.  The
Company agrees to provide notice to the Subscribers not later than five days after the date the Company has less than the Minimum
Required Reservation reserved on behalf of the Subscribers.

 

(g)           DTC
Program.  At all times that the Notes or Warrants are outstanding, the Company will employ as the transfer agent
for the Common Stock, Conversion Shares and Warrant Shares a participant in the Depository Trust Company Automated Securities Transfer
Program.

 

(h)          Taxes.  From
the date of this Agreement and until the End Date, the Company will promptly pay and discharge, or cause to be paid and discharged,
when due and payable, all lawful taxes, assessments and governmental charges or levies imposed upon the income, profits, property
or business of the Company; provided, however, that any such tax, assessment, charge or levy need not be paid if the validity
thereof shall currently be contested in good faith by appropriate proceedings and if the Company shall have set aside on its books
adequate reserves with respect thereto, and provided, further, that the Company will pay all such taxes, assessments, charges
or levies forthwith upon the commencement of proceedings to foreclose any lien which may have attached as security therefore.

 

    	12

    	 

    

(i)          Insurance.  As
reasonably necessary as determined by the Company, from the date of this Agreement and until the End Date, the Company will keep
its assets which are of an insurable character insured by financially sound and reputable insurers against loss or damage by fire,
explosion and other risks customarily insured against by companies in the Company’s line of business and location, in amounts
and to the extent and in the manner customary for companies in similar businesses similarly situated and located and to the extent
available on commercially reasonable terms.

 

(j)          Books
and Records.  From the date of this Agreement and until the End Date, the Company will keep true records and books
of account in which full, true and correct entries in all material respects will be made of all dealings or transactions in relation
to its business and affairs in accordance with United States generally accepted accounting principles (“GAAP”)
applied on a consistent basis.

 

(k)          Governmental
Authorities.  From the date of this Agreement and until the End Date, the Company shall duly observe and conform
in all material respects to all valid requirements of governmental authorities relating to the conduct of its business or to its
properties or assets.

 

(l)          Intellectual
Property.  From the date of this Agreement and until the End Date, the Company shall maintain in full force and effect
its corporate existence, rights and franchises and all licenses and other rights to use intellectual property owned or possessed
by it and reasonably deemed to be necessary to the conduct of its business, unless it is sold for value.  Schedule
9(l) hereto identifies all of the intellectual property owned by the Company and the Subsidiaries, which schedule includes,
but is not limited to, patents, patents pending, patent applications, trademarks, tradenames, service marks and copyrights.

 

(m)          Properties.  From
the date of this Agreement and until the End Date, the Company will keep its properties in good repair, working order and condition,
reasonable wear and tear excepted, and from time to time make all necessary and proper repairs, renewals, replacements, additions
and improvements thereto as the Company shall reasonably determine; and the Company will at all times comply with each provision
of all leases and claims to which it is a party or under which it occupies or has rights to property if the breach of such provision
could reasonably be expected to have a Material Adverse Effect.  The Company will not abandon any of its assets, except
for those assets which have negligible or marginal value , are obsolete or for which it is prudent to do so under the circumstances
as reasonably determined by the Company.

 

(n)          Confidentiality/Public
Announcement.  From the date of this Agreement  until the End Date, the Company agrees that except in connection
with a Form 8-K, Form 10-Q, Form 10-K and the registration statement or statements regarding the Subscribers’ Securities
or in correspondence with the Commission regarding same, it will not disclose publicly or privately the identity of a Subscriber
unless expressly agreed to in writing by such Subscriber or only to the extent required by law and then only upon not less than
two (2) business days prior notice to such Subscriber.  In any event and subject to the foregoing, the Company undertakes
to file a Form 8-K describing the Offering no later than the fourth (4th) day of the Closing Date.  Prior
to the filing of such Form 8-K, a draft in the final form will be provided for Subscribers’ review and approval.  In
the Form 8-K, the Company will specifically disclose the amount of Common Stock outstanding immediately after the Closing.  Upon 
delivery by the Company to the Subscribers after the Closing Date of any notice or information, in writing, electronically
or otherwise, and while Notes, Conversion Shares or Warrants are held by the Subscribers, unless the  Company has in
good faith determined that the matters relating to such notice do not constitute material, nonpublic information relating
to the Company or the Subsidiaries, the Company  shall, within four (4) days after any such delivery, publicly
disclose such  material,  nonpublic  information on a Report on Form 8-K.  In the event that
the Company believes that a notice or communication to the Subscribers contains material, nonpublic information
relating to the Company or the Subsidiaries, except as required to be delivered in connection with this Agreement, the Company
shall so indicate to the Subscribers prior to delivery of such notice or information.  A Subscriber will be granted five
(5) days to notify the Company that such Subscriber elects not to receive such information.  In the case that a Subscriber
elects not to receive such information, the Company will not deliver such information to such Subscriber.  In the absence
of any such Company indication, the Subscribers shall be allowed to presume that all matters relating to such notice and information
do not constitute material, nonpublic information relating to the Company or the Subsidiaries.

 

    	13

    	 

    

(o)          Non-Public
Information.  The Company covenants and agrees that except for the Reports, Other Written Information and schedules
and exhibits to this Agreement and the Transaction Documents, which information the Company undertakes to publicly disclose on
the Form 8-K described in Section 9(n) above, neither it nor any other person acting on its behalf will at any time provide any
Subscriber or its agents or counsel with any information that the Company believes constitutes material non-public information,
unless prior thereto such Subscriber, its agent or counsel shall have agreed in writing to accept such information as described
in Section 9(n) above.  The Company understands and confirms that the Subscribers shall be relying on the foregoing representations
in effecting transactions in securities of the Company.  The Company agrees that any information known to Subscriber
required to be made public by the Company but not made public by the Company, and not already made public by the Company, may be
made public and disclosed by the Subscriber.

 

(p)          Negative
Covenants.  So long as Notes are outstanding, without the consent of a Majority in Interest (as defined herein) of
the Subscribers, the Company will not and will not permit any of its Subsidiaries to directly or indirectly:

 

(i)          create,
incur, assume or suffer to exist any pledge, hypothecation, assignment, deposit arrangement, lien, charge, claim, security interest,
security title, mortgage, security deed or deed of trust, easement or encumbrance, or preference, priority or other security agreement
or preferential arrangement of any kind or nature whatsoever (including any lease or title retention agreement, any financing lease
having substantially the same economic effect as any of the foregoing, and the filing of, or agreement to give, any financing statement
perfecting a security interest under the Uniform Commercial Code or comparable law of any jurisdiction) (each, a “Lien”)
upon any of its property, whether now owned or hereafter acquired, except for:  (a) Liens imposed by law for taxes that
are not yet due or are being contested in good faith and for which adequate reserves have been established in accordance with GAAP;
(b) carriers,’ warehousemen’s, mechanic’s, material men’s, repairmen’s and other like Liens imposed
by law, arising in the ordinary course of business and securing obligations that are not overdue by more than thirty (30) days
or that are being contested in good faith and by appropriate proceedings; (c) pledges and deposits made in the ordinary course
of business in compliance with workers’ compensation, unemployment insurance and other social security laws or regulations;
(d) deposits to secure the performance of bids, trade contracts, leases, statutory obligations, surety and appeal bonds, performance
bonds and other obligations of a like nature, in each case in the ordinary course of business; (e) Liens created with respect to
the financing of the purchase of new property in the ordinary course of the Company’s business up to the amount of the purchase
price of such property; and (f) easements, zoning restrictions, rights-of-way and similar encumbrances on real property imposed
by law or arising in the ordinary course of business that do not secure any monetary obligations and do not materially detract
from the value of the affected property (each of (a) through (f) hereof, a “Permitted Lien”);

 

(ii)         amend
its certificate of incorporation, bylaws or its charter documents so as to materially and adversely affect any rights of the Subscribers;
provided that an increase in the amount of authorized shares will not be deemed adverse to the rights of the Subscribers;

 

    	14

    	 

    

(iii)        repay,
repurchase or offer to repay, repurchase or otherwise acquire or make any dividend or distribution in respect of any of its Common
Stock, preferred stock, or other equity securities other than to the extent permitted or required under the Transaction Documents;

 

(iv)         except
with respect to the Securities, engage in any transactions with any officer, director, employee or any Affiliate of the Company,
including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental
of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or,
to the knowledge of the Company, any entity in which any officer, director or any such employee has a substantial interest or is
an officer, director, trustee or partner, in each case in excess of $100,000, other than (i) for payment of salary or fees for
services rendered, pursuant to and on the terms of a written contract in effect at least one (1) business day prior to the Closing
Date, a copy of which has been provided to the Subscriber at least one (1) business day prior to the Closing Date, (ii) reimbursement
for authorized expenses incurred on behalf of the Company or its Affiliates, (iii) for other employee benefits, including stock
option agreements under any stock option plan of the Company disclosed in the Reports or (iv) other transactions disclosed in the
Reports; or

 

(v)          pay
or redeem any financing related debt or past due obligations or securities outstanding as of the Closing Date, or past due obligations,
except with respect to vendor obligations, which in management’s good faith, reasonable judgment must be paid to avoid disruption
of the Company’s businesses.

 

(q)          [Reserved]

 

(r)           Seniority.  Except
for Permitted Liens, for so long as the Notes are outstanding, without written consent of the Subscribers, the Company and Subsidiaries
shall not grant nor allow any security interest to be taken in any assets of the Company or any Subsidiary or any Subsidiary’s
assets; nor issue or amend any debt, equity or other instrument which would give the holder thereof directly or indirectly, a right
in any equity of the Company or any Subsidiary or any right to payment equal to or superior to any right of the Subscribers as
holders of the Notes in or to such equity or payment, nor issue or incur any debt not in the ordinary course of business in an
amount greater than $500,000.

 

(s)          Notices.  For
so long as the Subscribers hold any Notes or Warrants, the Company will maintain a United States address and United States fax
number for notice purposes under the Transaction Documents.

 

(t)           Transactions
with Insiders.  So long as the Notes and Warrants are outstanding, without consent of a Majority in Interest of the
Subscribers, the Company shall not, and shall cause each of its Subsidiaries not to, enter into, materially amend, materially modify
or materially supplement, or permit any Subsidiary to enter into, materially amend, materially modify or materially supplement,
any agreement, transaction, commitment, or arrangement relating to the sale, transfer or assignment of any of the Company’s
tangible or intangible assets with any of its Insiders (as defined below) (or any persons who were Insiders at any time during
the previous two (2) years), or any Affiliates (as defined below) thereof, or with any individual related by blood, marriage, or
adoption to any such individual.  “Affiliate,” for purposes of this Section 9(t), means, with respect
to any person or entity, another person or entity that, directly or indirectly, (i) has a ten percent (10%) or more equity interest
in that person or entity, (ii) has ten percent (10%) or more common ownership with that person or entity, (iii) controls that person
or entity, or (iv) shares common control with that person or entity.  “Control” or “Controls,”
for purposes of the Transaction Documents, means that a person or entity has the power, direct or indirect, to conduct or govern
the policies of another person or entity.  For purposes hereof, “Insiders” shall mean any officer,
director or manager of the Company, including, but not limited to, the Company’s president, chief executive officer, chief
financial officer and chief operations officer, and any of their Affiliates or Immediate Family members.

 

    	15

    	 

    

(u)          Stock
Splits.  For so long as the Notes and Warrants are outstanding, the Company will not enter into any stock splits
without the consent of the Subscribers.

 

(v)          Notice
of Event of Default.  The Company agrees to notify Subscriber of the occurrence of an Event of Default (as defined
and employed in the Transaction Documents) not later than ten (10) days after any of the Company’s officers or directors
becomes aware of such Event of Default.

 

10.          Covenants
of the Company Regarding Indemnification.

 

(a)          The
Company agrees to indemnify, hold harmless, reimburse and defend the Subscribers, the Subscribers’ officers, directors, agents,
counsel, Affiliates, members, managers, control persons, and principal shareholders, against any claim, cost, expense, liability,
obligation, loss or damage (including reasonable legal fees) of any nature, incurred by or imposed upon the Subscribers or any
such person which results, arises out of or is based upon (i) any material misrepresentation by Company or breach of any representation
or warranty by Company in this Agreement or in any Exhibits or Schedules attached hereto in any Transaction Document, or other
agreement delivered pursuant hereto or in connection herewith, now or after the date hereof; or (ii) after any applicable notice
and/or cure periods, any breach or default in performance by the Company of any covenant or undertaking to be performed by the
Company hereunder, or any other agreement entered into by the Company and Subscribers relating hereto.

 

(b)          In
no event shall the liability of the Subscribers or permitted successor hereunder or under any Transaction Document or other agreement
delivered in connection herewith be greater in amount than the dollar amount of the net proceeds actually received by such Subscriber
or successor upon the sale of the Notes, Conversion Shares, Warrant and Warrant Shares.

 

           11.         Unlegended
Shares and 144 Sales.

 

(a)          Delivery
of Unlegended Shares.  Within three (3) days (such third (3rd) day being the “Unlegended Shares
Delivery Date”) after the day on which the Company has received (i) a notice that Conversion Shares, Warrant Shares or
any other Common Stock held by Subscriber has been sold pursuant to a registration statement or Rule 144 under the 1933 Act, (ii)
a representation that the prospectus delivery requirements, or the requirements of Rule 144, as applicable and if required, have
been satisfied, (iii) the original share certificates representing the shares of Common Stock that have been sold, and (iv) in
the case of sales under Rule 144, customary representation letters of Subscriber and, if required, Subscriber’s broker regarding
compliance with the requirements of Rule 144, the Company, at its expense, (y) shall deliver, and shall cause legal counsel selected
by the Company to deliver to its transfer agent (with copies to Subscriber) an appropriate instruction directing the delivery of
shares of Common Stock without any legends including the legend set forth in Section 4(h) above (the “Unlegended Shares”);
and (z) cause the transmission of the certificates representing the Unlegended Shares, together with a legended certificate representing
the balance of the submitted Common Stock certificate, if any, to Subscriber at the address specified in the notice of sale, via
express courier, by electronic transfer or otherwise on or before the Unlegended Shares Delivery Date.

 

(b)          DWAC.  In
lieu of delivering physical certificates representing the Unlegended Shares, upon request of the Subscribers, so long as the certificates
therefor do not bear a legend and Subscriber is not obligated to return such certificate for the placement of a legend thereon,
the Company shall cause its transfer agent to electronically transmit the Unlegended Shares by crediting the account of Subscriber’s
prime broker with the Depository Trust Company through its Deposit Withdrawal Agent Commission system, if such transfer agent participates
in such DWAC system.  Such delivery must be made on or before the Unlegended Shares Delivery Date.

 

    	16

    	 

    

(c)          Late
Delivery of Unlegended Shares.  The Company understands that a delay in the delivery of the Unlegended Shares pursuant
to Section 11 hereof later than the Unlegended Shares Delivery Date could result in economic loss to a Subscriber.  As
compensation to a Subscriber for such loss, the Company agrees to pay late payment fees (as liquidated damages and not as a penalty)
to Subscriber for late delivery of Unlegended Shares in the amount of $100 per business day after the Unlegended Shares Delivery
Date for each $10,000 of purchase price of the Unlegended Shares, subject to the delivery default; provided that such delay
is not the direct or indirect result of Subscriber’s actions or omissions.  If during any three hundred sixty (360)
day period, the Company fails to deliver Unlegended Shares as required by this Section 11 for an aggregate of thirty (30) days,
then each Subscriber or assignee holding Securities subject to such default may, at its option, require the Company to redeem all
or any portion of the Unlegended Shares subject to such default at a price per share equal to the greater of (i) 110% of the Purchase
Price paid by Subscriber for the Unlegended Shares that were not timely delivered, or (ii) a fraction in which the numerator is
the highest closing price of the Common Stock during the aforedescribed thirty day period and the denominator of which is the lowest
conversion price or exercise price, as the case may be, during such thirty (30) day period, multiplied by the price
paid by Subscriber for such Common Stock (“Unlegended Redemption Amount”).  The Company shall promptly
pay any payments incurred under this Section in immediately available funds upon demand.

 

(d)          Injunction.  In
the event a Subscriber shall request delivery of Unlegended Shares as described in Section 11 and the Company is required to deliver
such Unlegended Shares pursuant to Section 11, the Company may not refuse to deliver Unlegended Shares based on any claim that
such Subscriber or anyone associated or Affiliated with such Subscriber has not complied with Subscriber’s obligations under
the Transaction Documents, or for any other reason, unless an injunction or temporary restraining order from a court, on notice,
restraining and or enjoining delivery of such Unlegended Shares, shall have been sought and obtained by the Company and the Company
has posted a surety bond for the benefit of such Subscriber in the amount of the greater of (i) 125% of the amount of the aggregate
Purchase Price of the Common Stock which is subject to the injunction or temporary restraining order, (ii) the closing price of
the Common Stock on the trading day before the issue date of the injunction multiplied by the number of Unlegended Shares to be
subject to the injunction, which bond shall remain in effect until the completion of arbitration/litigation of the dispute and
the proceeds of which shall be payable to such Subscriber to the extent Subscriber obtains judgment in Subscriber’s favor.

 

(e)          Buy-In.  In
addition to any other rights available to Subscriber, if the Company fails to deliver to Subscriber Unlegended Shares as required
pursuant to this Agreement and after the Unlegended Shares Delivery Date, Subscriber, or a broker on Subscriber’s behalf,
purchases (in an open market transaction or otherwise) shares of common stock to deliver in satisfaction of a sale by such Subscriber
of the shares of Common Stock which Subscriber was entitled to receive from the Company (a “Buy-In”), then the
Company shall promptly pay in cash to Subscriber (in addition to any remedies available to or elected by Subscriber) the amount
by which (A) Subscriber’s total purchase price (including brokerage commissions, if any) for the shares of common stock so
purchased exceeds (B) the aggregate purchase price of the shares of Common Stock delivered to the Company for reissuance as Unlegended
Shares together with interest thereon at a rate of 15% per annum accruing until such amount and any accrued interest thereon
is paid in full (which amount shall be paid as liquidated damages and not as a penalty).  For purposes of illustration
only, if Subscriber purchases shares of Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to
$10,000 of purchase price of shares of Common Stock delivered to the Company for reissuance as Unlegended Shares, the Company shall
be required to pay the Subscriber $1,000, plus interest.  Subscriber shall promptly provide the Company written notice
indicating the amounts payable to Subscriber in respect of the Buy-In, including evidence regarding the purchase of common stock
for which the Buy-In is implemented.

 

    	17

    	 

    

                                (f)          144
Default.  At any time commencing six (6) months after the Closing Date, in the event Subscriber is not permitted
to sell any of the Conversion Shares or Warrant Shares without any restrictive legend, or if such sales are permitted but subject
to volume limitations or further restrictions on resale as a result of the unavailability to Subscriber of Rule 144(b)(1)(i) under
the 1933 Act or any successor rule (a “144 Default”), for any reason, including, but not limited to, failure
by the Company to file quarterly, annual or any other filings required to be made by the Company by the required filing dates (provided
that any filing made within the time for a valid extension shall be deemed to have been timely filed), or the Company’s failure
to make information publicly available which would allow Subscriber’s reliance on Rule 144 in connection with sales of Conversion
Shares or Warrant Shares, except due to a change in current applicable securities laws or because Subscriber is an Affiliate (as
defined under Rule 144) of the Company, then the Company shall pay such Subscriber as liquidated damages and not as a penalty for
each thirty (30) days (or such lesser pro-rata amount for any period less than thirty (30) days) an amount equal to one percent
(1%) of the purchase price of the Conversion Shares and Warrant Shares subject to such 144 Default.  Liquidated Damages
shall not be payable pursuant to this Section 11(e) in connection with Conversion Shares or Warrant Shares for such times as such
shares may be sold by the holder thereof without any legend or volume or other restrictions pursuant to Section 144(b)(1)(i) of
the 1933 Act or pursuant to an effective registration statement.

 

12.          (a)          Favored
Nations Provision.  Other than in connection with (i) full or partial consideration in connection with a strategic
merger, acquisition, consolidation or purchase of substantially all of the securities or assets of a corporation or other entity,
so long as such issuances are not for the purpose of raising capital and which holders of such securities or debt are not at any
time granted registration rights, (ii) the Company’s issuance of securities in connection with strategic license agreements
and other partnering arrangements, so long as such issuances are not for the purpose of raising capital and which holders of such
securities or debt are not at any time granted registration rights, (iii) the Company’s issuance of Common Stock or the issuances
or grants of options to purchase Common Stock to employees, directors, and consultants, pursuant to plans described on Schedule
5(d) , (iv) securities upon the exercise or exchange of or conversion of any securities exercisable or exchangeable for
or convertible into shares of Common Stock issued and outstanding on the date of this Agreement on the terms disclosed in the Reports
and which securities are also described on Schedule 12(a), and (v) as a result of the exercise of Warrants
or conversion of Notes which are granted or issued pursuant to this Agreement on the unamended terms in effect on the Closing Date
(collectively, the foregoing (i) through (v) are “Excepted Issuances”), if at any time the Notes or Warrants
are outstanding, the Company shall agree to or issue (the “Lower Price Issuance”) any Common Stock or securities
convertible into or exercisable for shares of Common Stock (or modify any of the foregoing which may be outstanding) to any person
at a price per share or conversion or exercise price per share which shall be less than the conversion price in effect at such
time or the Warrant exercise price in effect at such time, as applicable, without the unanimous consent of all of the Subscribers,
then the conversion price and Warrant exercise price, as applicable, shall automatically be reduced to such other lower price.  The
average conversion price of the Conversion Shares and average exercise price in relation to the Warrant Shares shall be calculated
separately for the Conversion Shares and Warrant Shares.  Common Stock issued or issuable by the Company for no consideration
or for consideration that cannot be determined at the time of issue will be deemed issuable or to have been issued for $0.0001
per share of Common Stock.  For purposes of the issuance and adjustments described in this paragraph, the issuance of
any security of the Company carrying the right to convert such security into shares of Common Stock or any warrant, right or option
to purchase Common Stock shall result in the issuance of the additional shares of Common Stock upon the sooner of (A) the agreement
to or (B) actual issuance of such convertible security, warrant, right or options and again at any time upon any subsequent issuances
of shares of Common Stock upon exercise of such conversion or purchase rights if such issuance is at a price lower than the conversion
price or Warrant exercise price, as applicable, in effect upon such issuance.  The rights of the Subscribers set forth
in this Section 12 are in addition to any other rights the Subscribers have pursuant to this Agreement, the Notes, Warrants or
any other Transaction Document.

 

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(b)          Outstanding
Rights of First Refusal.  The Company hereby undertakes to provide within five business days after the Closing Date
the notice required pursuant to Sections 12(b) (“Right of First Refusal”) of each of the subscription agreements
it entered into on December 6, 2010 and April 18, 2011, respectively  (the “Previous Subscription Agreements”).  In
the event any subscriber to the Previous Subscription Agreements (“Prior Subscriber”) elects to exercise its
Right of First Refusal pursuant to Sections 12(b) of the Previous Subscription Agreements (the “Additional Investment”),
the Company shall have the right within 20 days after the Closing Date, to use the Additional Investment to repay such amount of
Note principal, including interest thereon, as shall equal the amount of the Additional Investment (“Recession Payment”).  Within
5 days after the Subscriber’s receipt of the Recession Payment, the Subscriber will return the original Note and Warrant
to the Company in exchange for a Note and Warrant corresponding to the Subscriber’s remaining Note principal, interest and
Warrants if any.

 

(c)          Maximum
Exercise of Rights.  Notwithstanding the foregoing, in the event the exercise of the rights described in Section
12(a) would or could result in the issuance of an amount of Common Stock of the Company that would exceed the maximum amount that
may be issued to a Subscriber as described in Section __ of the Notes and Section 9 of the Warrant, then the issuance of such additional
shares of Common Stock of the Company to such Subscriber will be deferred in whole or in part until such time as such Subscriber
is able to beneficially own such Common Stock without exceeding the applicable maximum amount set forth and such Subscriber notifies
the Company accordingly.

 

13.         Miscellaneous.

 

(a)          Notices.  All
notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and,
unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted
by hand delivery, telegram, or facsimile addressed as set forth below or to such other address as such party shall have specified
most recently by written notice in accordance with this Section 13(a).  Any notice or other communication required or
permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile with accurate confirmation
generated by the transmitting facsimile machine at the address or number designated below (if delivered on a business day during
normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other
than on a business day during normal business hours where such notice is to be received), or (b) on the second business day following
the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing,
whichever shall first occur. The addresses for such communications shall be: (i) if to the Company, to: Wizard World, Inc., 1350
Avenue of the Americas, 2nd Floor, New York, NY 10019, Attn: Gareb Shamus, facsimile: (212) 707-8180, with a copy by
fax only to (which shall not constitute notice):Lucosky Brookman LLP, 33 Wood Avenue South, 6th Floor, Iselin, NJ 10019,
Attn: Joseph M. Lucosky, Esq., facsimile: (732) 395-4401, and (ii) if to a Subscriber, to: the addresses and fax numbers indicated
on Schedule 1 hereto, with an additional copy by fax only to (which shall not constitute notice): Grushko & Mittman,
P.C., 515 Rockaway Avenue, Valley Stream, New York 11581, facsimile: (212) 697-3575.

 

 (b)          Entire
Agreement; Assignment.  This Agreement and other documents delivered in connection herewith represent the entire
agreement between the parties hereto with respect to the subject matter hereof and may be amended only by a writing executed by
all parties.  Neither the Company nor the Subscribers has relied on any representations not contained or referred to
in this Agreement or the other Transaction Documents.  No right or obligation of the Company shall be assigned without
prior notice to and the written consent of the Subscribers.

 

    	19

    	 

    

(c)          Counterparts/Execution.  This
Agreement may be executed in any number of counterparts and by the different signatories hereto on separate counterparts, each
of which, when so executed, shall be deemed an original, but all such counterparts shall constitute but one and the same instrument.  This
Agreement may be executed by facsimile transmission, PDF, electronic signature or other similar electronic means with the same
force and effect as if such signature page were an original thereof.

 

(d)          Law
Governing this Agreement.  This Agreement shall be governed by and construed in accordance with the laws of the State
of New York without regard to principles of conflicts of laws thereof or any other State.  Any action brought by any
party hereto against the other concerning the transactions contemplated by this Agreement shall be brought only in the state courts
of New York or in the federal courts located in the state and county of New York.  The parties to this Agreement hereby
irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based
on lack of jurisdiction or venue or based upon forum non conveniens.  The parties executing this Agreement
and other agreements referred to herein or delivered in connection herewith on behalf of the Company agree to submit to the in
personam jurisdiction of such courts and hereby irrevocably waive trial by jury.  The prevailing party shall be entitled
to recover from the other party its reasonable attorney’s fees and costs.  In the event that any provision of this
Agreement or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule
of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified
to conform with such statute or rule of law.  Any such provision which may prove invalid or unenforceable under any law
shall not affect the validity or enforceability of any other provision of any agreement.  Each party hereto hereby irrevocably
waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this
Agreement or any other Transaction Document by mailing a copy thereof via registered or certified mail or overnight delivery (with
evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service
shall constitute good and sufficient service of process and notice thereof.  Nothing contained herein shall be deemed
to limit in any way any right to serve process in any other manner permitted by law.

 

(e)          Specific
Enforcement, Consent to Jurisdiction.  The Company and each Subscriber hereby irrevocably waives, and agrees not
to assert in any such suit, action or proceeding, any claim that it is not personally subject to the jurisdiction in New York of
such court, that the suit, action or proceeding is brought in an inconvenient forum or that the venue of the suit, action or proceeding
is improper.  Nothing in this Section shall affect or limit any right to serve process in any other manner permitted
by law.  Subject to Section 13(d) hereof, the Company and the Subscribers acknowledge and agree that irreparable damage
would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms
or were otherwise breached.  It is accordingly agreed that the parties hereto shall be entitled to seek an injunction
or injunctions to prevent or cure breaches of the provisions of this Agreement and to enforce specifically the terms and provisions
hereof, this being in addition to any other remedy to which any of them may be entitled by law or equity.

 

(f)          Damages.  In
the event the Subscriber is entitled to receive any liquidated or other damages pursuant to the Transactions Documents, the Subscriber
may elect to receive the greater of actual damages or such liquidated damages.  In the event the Subscriber is granted
rights under different sections of the Transaction Documents relating to the same subject matter or which may be exercised contemporaneously,
or pursuant to which damages or remedies are different, Subscriber is granted the right in Subscriber’s absolute discretion
to proceed under such section as Subscriber elects.

 

    	20

    	 

    

(g)          Maximum
Payments.  Nothing contained herein or in any document referred to herein or delivered in connection herewith shall
be deemed to establish or require the payment of a rate of interest or other charges in excess of the maximum permitted by applicable
law.  In the event that the rate of interest or dividends required to be paid or other charges hereunder exceed the maximum
permitted by such law, any payments in excess of such maximum shall be credited against amounts owed by the Company to the Subscribers
and thus refunded to the Company.  The Company agrees that it may not and actually waives any right to challenge the
effectiveness or applicability of this Section 13(g).

 

(h)          Calendar
Days.  All references to “days” in the Transaction Documents shall mean calendar days unless otherwise
stated.  The terms “business days” and “trading days” shall mean days that the New York Stock
Exchange is open for trading for three or more hours.  Time periods shall be determined as if the relevant action, calculation
or time period were occurring in New York City.  Any deadline that falls on a non-business day in any of the Transaction
Documents shall be automatically extended to the next business day and interest, if any, shall be calculated and payable through
such extended period.

 

(i)          Captions;
Certain Definitions.  The captions of the various sections and paragraphs of this Agreement have been inserted only
for the purposes of convenience; such captions are not a part of this Agreement and shall not be deemed in any manner to modify,
explain, enlarge or restrict any of the provisions of this Agreement.  As used in this Agreement the term “person”
shall mean and include an individual, a partnership, a joint venture, a corporation, a limited liability company, a trust, an unincorporated
organization and a government or any department or agency thereof.

 

(j)          Consent.  As
used in this Agreement and the other Transaction Documents and any other agreement delivered in connection herewith, “Consent
of the Subscribers” or similar language means the consent of holders of not less than seventy percent (70%) of the outstanding
Notes on the date consent is requested (such Subscribers being a “Majority in Interest”).  A Majority
in Interest may consent to take or forebear from any action permitted under or in connection with the Transaction Documents, modify
any Transaction Documents or waive any default or requirement applicable to the Company, the Subsidiaries or the Subscribers under
the Transaction Documents, provided the effect of such action does not waive any accrued interest or damages and further
provided that the relative rights of the Subscribers to each other remains unchanged.

 

(k)         Severability.  In
the event that any term or provision of this Agreement shall be finally determined to be superseded, invalid, illegal or otherwise
unenforceable pursuant to applicable law by an authority having jurisdiction and venue, that determination shall not impair or
otherwise affect the validity, legality or enforceability: (i) by or before that authority of the remaining terms and provisions
of this Agreement, which shall be enforced as if the unenforceable term or provision were deleted, or (ii) by or before any other
authority of any of the terms and provisions of this Agreement.

 

(l)          Successor
Laws.  References in the Transaction Documents to laws, rules, regulations and forms shall also include successors
to and functionally equivalent replacements of such laws, rules, regulations and forms.  A successor rule to Rule 144(b)(1)(i)
shall include any rule that would be available to a non-Affiliate of the Company for the sale of Common Stock not subject to volume
restrictions and after a six month holding period.

 

(m)      Maximum
Liability.  In no event shall the liability of the Subscribers or permitted assign hereunder or under any Transaction
Document or other agreement delivered in connection herewith be greater in amount than the dollar amount of the net proceeds actually
received by such Subscriber or successor upon the sale of Conversion Shares.

 

    	21

    	 

    

(n)          Independent
Nature of Subscribers.  The Company acknowledges that the obligations of each Subscriber under the Transaction Documents
are several and not joint with the obligations of any other Subscriber, and no Subscriber shall be responsible in any way for the
performance of the obligations of any other Subscriber under the Transaction Documents. The Company acknowledges that each Subscriber
has represented that the decision of each Subscriber to purchase Securities has been made by such Subscriber independently of any
other Subscriber and independently of any information, materials, statements or opinions as to the business, affairs, operations,
assets, properties, liabilities, results of operations, condition (financial or otherwise) or prospects of the Company which may
have been made or given by any other Subscriber or by any agent or employee of any other Subscriber, and no Subscriber or any of
its agents or employees shall have any liability to any other Subscriber (or any other person) relating to or arising from any
such information, materials, statements or opinions.  The Company acknowledges that nothing contained in any Transaction
Document, and no action taken by any Subscriber pursuant hereto or thereto shall be deemed to constitute the Subscribers as a partnership,
an association, a joint venture or any other kind of entity, or create a presumption that the Subscribers are in any way acting
in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents. 
The Company acknowledges that it has elected to provide all Subscribers with the same terms and Transaction Documents for the convenience
of the Company and not because Company was required or requested to do so by the Subscribers.  The Company acknowledges that
such procedure with respect to the Transaction Documents in no way creates a presumption that the Subscribers are in any way acting
in concert or as a group with respect to the Transaction Documents or the transactions contemplated thereby.

 

(o)          Equal
Treatment.  No consideration shall be offered or paid to any person to amend or consent to a waiver or modification
of any provision of the Transaction Documents unless the same consideration is also offered and paid to all the Subscribers and
their permitted successors and assigns.

 

(p)          Adjustments.  The
conversion price, Warrant exercise price, amount of Conversion Shares and Warrant Shares, trading volume amounts, price/volume
amounts and similar figures in the Transaction Documents shall be equitably adjusted and as otherwise described in this Agreement,
the Notes and Warrants.

 

[SIGNATURE PAGES FOLLOW]

 

    	22

    	 

    

SIGNATURE PAGE TO SUBSCRIPTION
AGREEMENT

 

Please acknowledge your acceptance
of the foregoing Subscription Agreement by signing and returning a copy to the undersigned whereupon it shall become a binding
agreement between us.

 

	 	WIZARD WORLD INC.
	 	a Delaware corporation
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	Dated: __________ ___, 2011

 

	SUBSCRIBER	 	NOTE PRINCIPAL	 	WARRANTS
	Name of Subscriber:	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	Address:	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	Fax No.:	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 
	Taxpayer ID# (if applicable):	 	 	 	 
	 	 	 	 	 	 	 
	or Social Security #	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	(Signature)	 	 	 	 
	By:	 	 	 	 

 

    	23

    	 

    

 

LIST OF EXHIBITS AND
SCHEDULES

 

	Exhibit A	Form of Convertible Promissory Note
	Exhibit B	Form of Series A Warrants
	Exhibit C	Form of Escrow Agreement
	Exhibit D	Form of Legal Opinion
	Schedule 1	List of Subscribers
	Schedule 5(a)	Subsidiaries
	Schedule 5(d)	Capitalization and Additional Issuances
	Schedule 5(f)	Violations and Conflicts
	Schedule 5(o)	Undisclosed Liabilities
	Schedule 5(w)	Transfer Agent
	Schedule 9(e)	Use of Proceeds
	Schedule 9(l)	Intellectual Property
	Schedule 12(a)	Excepted Issuances

 

    	24

    	 

    

 

Exhibit A

 

NEITHER THE ISSUANCE AND
SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE 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 (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER, AT THE
COMPANY’S EXPENSE), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS 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.

 

	Principal Amount: $___________	Issue Date: August __, 2011

 

CONVERTIBLE PROMISSORY
NOTE

 

FOR VALUE RECEIVED, WIZARD
WORLD, INC., a Delaware corporation (hereinafter called “Borrower”), hereby promises to pay to the order
of [Holder’s name], with an address at [Holder’s _______________________Address], without demand,
the sum of up to _______ Dollars ($___) (“Principal Amount”), with interest accruing thereon,
on December __, 2011 (the “Maturity Date”), if not sooner paid or modified as permitted herein.

 

This Convertible Promissory
Note (the “Note”)  has been entered into pursuant to the terms of a subscription agreement by and
among the Borrower, the Holder and certain other holders (the “Other Holders”) of convertible promissory notes
(the “Other Notes”), dated of even date herewith (the “Subscription Agreement”), for an aggregate
Principal Amount of up to $455,000.  Unless otherwise separately defined herein, each capitalized term used in this Note
shall have the same meaning as set forth in the Subscription Agreement.  The following terms shall apply to this Note:

 

ARTICLE I

 

GENERAL PROVISIONS

 

1.1           Interest
Rate.  Interest payable on this Note shall accrue at the annual rate of fourteen percent (14%) from the Issue Date
through the Maturity Date.  Interest shall be payable on the Maturity Date, accelerated or otherwise, when the Principal
Amount and remaining accrued but unpaid interest shall be due and payable, or sooner as described below.

 

1.2           Default
Interest.  After the Maturity Date and during the pendency of an Event of Default (as described in Article III),
a default interest rate of eighteen percent (18%) per annum shall be in effect.

 

1.3           Conversion
Privileges.  The Conversion Rights (as set forth in Article II) shall remain in full force and effect immediately
from the Issue Date and until the Note is paid in full regardless of the occurrence of an Event of Default.  This Note
shall be payable in full on the Maturity Date, unless previously converted into Common Stock in accordance with Article II hereof.

    	25

    	 

    

1.4        Presentment.  The
Holder may, at any time, present this Note or any sum payable hereunder to the Borrower in satisfaction of any sum due or payable
by the Holder to Borrower for any reason whatsoever, including, but not limited to, the payment for securities subscriptions.

 

ARTICLE II

 

CONVERSION RIGHTS

 

The Holder shall have the
right to convert the Principal Amount and any interest due under this Note into shares of the Borrower’s Common Stock, $0.0001
par value per share (“Common Stock”), as set forth below.

 

2.1.    
   Conversion into the Borrower’s Common Stock.

 

(a)         The
Holder shall have the right from and after the Issue Date until this Note is fully paid, to convert any outstanding and unpaid
portion of the Principal Amount of this Note, and accrued but unpaid interest, at the election of the Holder (the date of giving
of such notice of conversion being a “Conversion Date”) into fully paid and non-assessable shares of Common
Stock , or any shares of capital stock of Borrower into which such Common Stock shall hereafter be changed or reclassified, at
the conversion price as defined in Section 2.1(b) hereof, determined as provided herein.  Upon delivery to the
Borrower of a completed notice of conversion, a form of which is annexed hereto as Exhibit A (the “Notice of Conversion”),
Borrower shall issue and deliver to the Holder within three (3) business days after the Conversion Date (such third day being the
“Delivery Date”) that number of shares of Common Stock for the portion of the Note converted in accordance with
the foregoing.  The Holder will not be required to surrender the Note to the Borrower until the Note has been fully converted
or satisfied.  The number of shares of Common Stock to be issued upon each conversion of this Note shall be determined
by dividing that portion of the Principal Amount of the Note and accrued but unpaid interest, if any, to be converted, by the Conversion
Price (as defined herein).

 

(b)         Subject
to adjustment as provided in Section 2.1(c) hereof, the conversion price (“Conversion Price”) shall be
$0.60 per share.

 

(c)        
The Conversion Price and number and kind of shares or other securities to be issued upon conversion determined pursuant to Section
2.1(a) hereof, shall be subject to adjustment from time to time upon the happening of certain events while this conversion
right (the “Conversion Right”) remains outstanding, as follows:

 

A.           Merger,
Sale of Assets, etc.  If (A) the Borrower effects any merger or  consolidation of the Borrower with or
into another entity, (B) the Borrower effects any sale of all or substantially all of its assets in one or a series of related
transactions,  (C) any tender offer or exchange offer (whether by the Borrower or another entity) is completed pursuant
to which holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property, (D) the
Borrower consummates a stock purchase agreement or other business combination (including, without limitation, a reorganization,
recapitalization, spin-off or scheme of arrangement) with one or more persons or entities whereby such other persons or entities
acquire more than the 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by such other
persons or entities making or party to, or associated or affiliated with the other persons or entities making or party to, such
stock purchase agreement or other business combination), (E) any “person” or “group” (as these terms are
used for purposes of Sections 13(d) and 14(d) of the 1934 Act) is or shall become the “beneficial owner” (as defined
in Rule 13d-3 under the 1934 Act), directly or indirectly, of 50% of the aggregate Common Stock of the Borrower), or (F) the Borrower
effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively
converted into or exchanged for other securities, cash or property (other than a reverse merger) (in any such case, a “Fundamental  Transaction”),
this Note, as to the unpaid portion of the Principal Amount and accrued interest thereon, if any, shall thereafter be deemed to
evidence the right to convert into such number and kind of shares or other securities and property as would have been issuable
or distributable on account of such Fundamental Transaction, upon or with respect to the securities subject to the Conversion Right
immediately prior to such Fundamental Transaction.  The foregoing provision shall similarly apply to successive Fundamental
Transactions of a similar nature by any such successor or purchaser.  Without limiting the generality of the foregoing,
the anti-dilution provisions of this Section shall apply to such securities of such successor or purchaser after any such Fundamental
Transaction.

    	26

    	 

    

 

B.           Reclassification,
etc.  If the Borrower at any time shall, by reclassification or otherwise, change the Common Stock into the same
or a different number of securities of any class or classes that may be issued or outstanding, this Note, as to the unpaid portion  of
the Principal Amount  and accrued interest thereon, shall thereafter be deemed to evidence the right to purchase an adjusted
number of such securities and kind of securities as would have been issuable as the result of such change with respect to the Common
Stock immediately prior to such reclassification or other change.

 

C.           Stock
Splits, Combinations and Dividends.  If the shares of Common Stock are subdivided or combined into a greater or smaller
number of shares of Common Stock, or if a dividend is paid on the Common Stock in shares of Common Stock, the Conversion Price
shall be proportionately reduced in case of subdivision of shares or stock dividend or proportionately increased in the case of
combination of shares, in each such case by the ratio which the total number of shares of Common Stock outstanding immediately
after such event bears to the total number of shares of Common Stock outstanding immediately prior to such event.

 

D.           Share
Issuance.  So long as this Note is outstanding, if the Borrower shall issue any Common Stock, except for the Excepted
Issuances (as defined in Section 12(a) of the Subscription Agreement), prior to the complete conversion or payment of this Note,
for a consideration per share that is less than the Conversion Price that would be in effect at the time of such issue, then, and
thereafter successively upon each such issuance, the Conversion Price shall be reduced to such other lower issue price.  For
purposes of this adjustment, the issuance of any security or debt instrument of the Borrower carrying the right to convert such
security or debt instrument into Common Stock or of any warrant, right or option to purchase Common Stock shall result in an adjustment
to the Conversion Price upon the issuance of the above-described security, debt instrument, warrant, right, or option and again
upon the issuance of shares of Common Stock upon exercise of such conversion or purchase rights if such issuance is at a price
lower than the then applicable Conversion Price. Common Stock issued or issuable by the Borrower for no consideration will be deemed
issuable or to have been issued for $0.0001 per share of Common Stock.  The reduction of the Conversion Price described
in this paragraph is in addition to the other rights of the Holder described in the Subscription Agreement.

 

(d)         Whenever
the Conversion Price is adjusted pursuant to Section 2.1(c) above, the Borrower shall promptly, but not later than the fifth
(5th) business day after the effectiveness of the adjustment, provide notice to the
Holder setting forth the Conversion Price after such adjustment and setting forth a statement of the facts requiring such adjustment.  Failure
to provide the foregoing notice is an Event of Default under this Note.

 

(e)         During
the period the Conversion Right exists, Borrower will reserve from its authorized and un-issued Common Stock not less than an amount
of Common Stock equal to 150% of the amount of shares of Common Stock issuable upon the full conversion of this Note.  Borrower
represents that upon issuance, such shares will be duly and validly issued, fully paid and non-assessable.  Borrower
agrees that its issuance of this Note shall constitute full authority to its officers, agents, and transfer agents who are charged
with the duty of executing and issuing stock certificates to execute and issue the necessary certificates for shares of Common
Stock upon the conversion of this Note.

    	27

    	 

    

 

2.2         Method
of Conversion.  This Note may be converted by the Holder in whole or in part as described in Section 2.1(a)
hereof and the Subscription Agreement.  Upon partial conversion of this Note, a new Note containing the same date and
provisions of this Note shall, at the request of the Holder, be issued by the Borrower to the Holder for the balance of the Principal
Amount of this Note and accrued but unpaid interest which shall not have been converted or paid, upon surrender of the existing
Note.

 

2.3.        Maximum
Conversion.  The Holder shall not be entitled to convert on a Conversion Date that amount of the Note in connection
with that number of shares of Common Stock which would be in excess of the sum of (i) the number of shares of Common Stock beneficially
owned by the Holder and its Affiliates on a Conversion Date, (ii) any Common Stock issuable in connection with the unconverted
portion of the Note, and (iii) the number of shares of Common Stock issuable upon the conversion of the Note with respect to which
the determination of this provision is being made on a Conversion Date, which would result in beneficial ownership by the Holder
and its affiliates of an aggregate of more than 4.99% of the outstanding shares of Common Stock of the Borrower on such Conversion
Date.  For the purposes of the provision to the immediately preceding sentence, beneficial ownership shall be determined
in accordance with Section 13(d) of the 1934 Act, and Regulation 13d-3 promulgated thereunder.  Subject to the foregoing,
the Holder shall not be limited to aggregate conversions of 4.99%.  The Holder shall have the authority to determine
whether the restriction contained in this Section 2.3 will limit any conversion hereunder and the extent such limitation
applies and to which convertible or exercisable instrument or part thereof such limitation applies.  The Holder may waive
the conversion limitation described in this Section 2.3, in whole or in part, upon and effective after 61 days’ prior
written notice to the Borrower to increase such percentage up to 9.99%.

 

ARTICLE III

 

ACCELERATION AND REDEMPTION

 

3.1.        Redemption.  This
Note may not be prepaid, converted, redeemed or called by the Borrower without the consent of the Holder, except as described in
this Note.

 

3.2.        Fundamental
Transaction.  Upon the occurrence of a Fundamental Transaction, then in addition to the Holder’s rights described
in Section 2.1(c)(A), until twenty (20) business days after the Borrower notifies the Holder of the occurrence of the Fundamental
Transaction, the Holder may elect to accelerate the Maturity Date as of the date of the Fundamental Transaction and receive payment
for the then outstanding Principal Amount, and any other amount owed to the Holder pursuant to the Transaction Documents.

 

ARTICLE IV

 

EVENT OF DEFAULT

 

The occurrence of any of
the following events of default (“Event of Default”) occurring after Closing and not otherwise disclosed in
the Subscription Agreement and schedules thereto, shall, at the option of the Holder hereof, make all sums of the Principal Amount
and accrued but unpaid interest then remaining unpaid hereon and all other amounts payable hereunder immediately due and payable,
upon demand, without presentment or grace period, all of which hereby are expressly waived, except as set forth below:

    	28

    	 

    

 

4.1         Failure
to Pay Principal Amount or Interest.  The Borrower (i) fails to pay any installment of the Principal Amount under
this Note when due or (ii) fails to pay any accrued but unpaid interest or other sums due under this Note within three (3) days
after such amounts are due.

 

4.2         Breach
of Covenant.  The Borrower or any Subsidiary breaches any material covenant or other term or condition of the Subscription
Agreement, Transaction Documents or this Note, except for a breach of payment, in any material respect and such breach, if subject
to cure, continues for a period of twenty (20) days after written notice to the Borrower from the Holder.

 

4.3         Breach
of Representations and Warranties.  Any material representation or warranty of the Borrower made herein, in the Subscription
Agreement, or the Transaction Documents shall be false or misleading in any material respect.

 

4.4         Liquidation.  Any
dissolution, liquidation or winding up by Borrower or a Subsidiary of a substantial portion of their business.

 

4.5         Cessation
of Operations.  Any cessation of operations by Borrower or a Subsidiary.

 

4.6         Maintenance
of Assets.  The failure by Borrower or any Subsidiary to maintain any material intellectual property rights, personal,
real property, equipment, leases or other assets which are necessary to conduct its business (whether now or in the future) and
such breach is not cured with fifteen (15) days after written notice to the Borrower from the Holder.

 

4.7         Receiver
or Trustee.  The Borrower or any Subsidiary shall make an assignment for the benefit of creditors, or apply for or
consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business; or such a receiver
or trustee shall otherwise be appointed.

 

4.8         Judgments.  Any
money judgment, writ or similar final process shall be entered or made in a non-appealable adjudication against Borrower or any
Subsidiary or any of its property or other assets for more than $100,000 in excess of the Borrower’s insurance coverage,
unless stayed vacated or satisfied within thirty (30) days.

 

4.9         Bankruptcy.  Bankruptcy,
insolvency, reorganization or liquidation proceedings or other proceedings or relief under any bankruptcy law, or the issuance
of any notice in relation to such event, for the relief of debtors shall be instituted by or against the Borrower or any Subsidiary.

 

4.10       Delisting.  An
event resulting in the Common Stock no longer being quoted on the OTC Pink (the “OTC”); failure to comply with
the requirements for continued quotation on the OTC for a period of seven (7) consecutive trading days; or notification from the
OTC that the Borrower is not in compliance with the conditions for such continued quotation and such non-compliance continues for
seven (7) days following such notification.

 

4.11       Non-Payment.  A
default by the Borrower or any Subsidiary under any one or more obligations in an aggregate monetary amount in excess of $100,000
for more than twenty (20) days after the due date, unless the Borrower or such Subsidiary is contesting the validity of such obligation
in good faith.

 

4.12       Stop
Trade.  A Commission or judicial stop trade order or OTC suspension that lasts for ten (10) or more consecutive trading
days.

    	29

    	 

    

4.13       Failure
to Deliver Common Stock or Replacement Note.  Borrower’s failures to timely deliver Common Stock to the Holder
pursuant to and in the form required by this Note, Sections 7 and 11 of the Subscription Agreement, and the Warrant or, if required,
a replacement Note following a partial conversion.

 

4.14       Reservation
Default.  Failure by the Borrower to have reserved for issuance upon conversion of the Note or upon exercise of the
Warrants, the number of shares of Common Stock as required in the Subscription Agreement, this Note and the Warrants, and such
failure continues for a period of thirty (30) business days.

 

4.15       Financial
Statement Restatement.  The restatement after the date hereof of any financial statements filed by the Borrower with
the Commission for any date or period from two years prior to the Issue Date of this Note and until this Note is no longer outstanding,
if the result of such restatement would, by comparison to the un-restated financial statements, have constituted a Material Adverse
Effect.  For the avoidance of doubt, any restatement related to new accounting pronouncements, including without limitation,
for derivative accounting shall not constitute a default under this Section 4.15.

 

4.16       [Reserved].

 

4.17       Reverse
Splits.  The Borrower effectuates a reverse split of its Common Stock without twenty (20) days prior written notice
to the Holder.

 

4.18       Event
Described in Subscription Agreement.  The occurrence of an Event of Default as described in the Subscription Agreement,
any Transaction Document or the Previous Subscription Agreement that, if susceptible to cure, is not cured during any designated
cure period.

 

4.19       Notification
Failure.  A failure by Borrower to notify Holder of any material event of which Borrower is obligated to notify Holder
pursuant to the terms of this Note or any other Transaction Document.

 

4.20       Cross
Default.  A default by the Borrower of a material term, covenant, warranty or undertaking of any other material agreement
to which the Borrower and Holder are parties, or the occurrence of an event of default under any such other agreement to which
Borrower and Holder are parties which is not cured after any required notice and/or cure period.

 

4.21       Other
Note Default.  The occurrence of an Event of Default under any Other Note.

 

ARTICLE V

 

MISCELLANEOUS

 

5.1         Failure
or Indulgence Not Waiver.  No failure or delay on the part of the Holder hereof in the exercise of any power, right
or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or
privilege preclude other or further exercise thereof or of any other right, power or privilege.  All rights and remedies
existing hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available.

    	30

    	 

    

5.2         Notices.  All
notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and,
unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted
by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified
most recently by written notice.  Any notice or other communication required or permitted to be given hereunder shall
be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile
machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice
is to be received), or the first business day following such delivery (if delivered other than on a business day during normal
business hours where such notice is to be received) or (b) on the first business day following the date of mailing by express courier
service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur.  The
addresses for such communications shall be: (i) if to the Borrower to: Wizard World, Inc., 1350 Avenue of the Americas, 2nd
Floor, New York, NY 10019, Attn: Gareb Shamus, facsimile: (212) 707-8180, with a copy by fax only to (which shall not constitute
notice):Lucosky Brookman LLP, 33 Wood Avenue South, 6th Floor, Iselin, NJ 10019,
Attn: Joseph M. Lucosky, Esq., facsimile: (732) 395-4401, and (ii) if to the Holder to the name, address and facsimile number set
forth on the front page of this Note, with copies, with an additional copy by fax only to (which shall not constitute notice):
Grushko & Mittman, P.C., 515 Rockaway Avenue, Valley Stream, New York 11581, facsimile: (212) 697-3575.

 

5.3         Amendment
Provision.  The term “Note” and all reference thereto, as used throughout this instrument, shall mean
this instrument as originally executed, or if later amended or supplemented, then as so amended or supplemented.

 

5.4         Assignability.  This
Note shall be binding upon the Borrower and its successors and assigns, and shall inure to the benefit of the Holder and its successors
and assigns.  The Borrower may not assign its obligations under this Note without the written consent of the Holder.

 

5.5         Cost
of Collection.  If default is made in the payment of this Note, Borrower shall pay the Holder hereof reasonable costs
of collection, including reasonable attorneys’ fees.

 

5.6         Governing
Law.  This Note shall be governed by and construed in accordance with the laws of the State of New York without regard
to conflicts of laws principles that would result in the application of the substantive laws of another jurisdiction.  Any
action brought by either party hereto against the other concerning the transactions contemplated by this Agreement must be brought
only in the civil or state courts of New York or in the federal courts located in the State and County of New York.  Both
parties hereto and the individual signing this Agreement on behalf of the Borrower agree to submit to the jurisdiction of such
courts.  The prevailing party shall be entitled to recover from the other party its reasonable attorneys’ fees
and costs.  In the event that any provision of this Note is invalid or unenforceable under any applicable statute or
rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified
to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not
affect the validity or unenforceability of any other provision of this Note.  Nothing contained herein shall be deemed
or operate to preclude the Holder from enforcing a judgment or other decision in favor of the Holder.  This Note shall
be deemed an unconditional obligation of Borrower for the payment of money and, without limitation to any other remedies of Holder,
may be enforced against Borrower by summary proceeding pursuant to New York Civil Procedure Law and Rules Section 3213 or any similar
rule or statute.  For purposes of such rule or statute, any other document or agreement to which Holder and Borrower
are parties or which Borrower delivered to Holder, which may be convenient or necessary to determine Holder’s rights hereunder
or Borrower’s obligations to Holder are deemed a part of this Note, whether or not such other document or agreement was delivered
together herewith or was executed apart from this Note.

    	31

    	 

    

 

5.7         Maximum
Payments.  Nothing contained herein shall be deemed to establish or require the payment of a rate of interest or
other charges in excess of the maximum rate permitted by applicable law.  In the event that the rate of interest required
to be paid or other charges hereunder exceed the maximum rate permitted by applicable law, any payments in excess of such maximum
rate shall be credited against amounts owed by the Borrower to the Holder and thus refunded to the Borrower.

 

5.8         Non-Business
Days.  Whenever any payment or any action to be made shall be due on a Saturday, Sunday or a public holiday under
the laws of the State of New York, such payment may be due or action shall be required on the next succeeding business day and,
for such payment, such next succeeding day shall be included in the calculation of the amount of accrued interest payable on such
date.

 

5.9         Shareholder
Status.  The Holder shall not have rights as a shareholder of the Borrower with respect to unconverted portions of
this Note.  However, the Holder will have the rights of a shareholder of the Borrower with respect to the shares of Common
Stock to be received after delivery by the Holder of a Conversion Notice to the Borrower.

 

[THE REMAINDER OF THIS
PAGE INTENTIONALLY LEFT BLANK]

    	32

    	 

    

IN WITNESS WHEREOF,
Borrower has caused this Note to be signed in its name by an authorized officer as of the _____ day of August, 2011.

 

	 	 	WIZARD WORLD, INC.
	 	 	 
	 	 	By: 	 
	 	 	 	Name:
	 	 	 	Title:
	 	 	 	 
	WITNESS:	 	 	 
	 	 	 	 
	 	 	 	 

    	33

    	 

    

 EXHIBIT A - NOTICE
OF CONVERSION

 

(To be executed by the Registered
Holder in order to convert the Note)

 

The undersigned hereby elects
to convert $_________ of the Principal Amount and $_________ of the interest due on the Note issued by WIZARD WORLD, INC. on July
__, 2011 into shares of Common Stock of WIZARD WORLD, INC. (the “Borrower”) according to the conditions set
forth in such Note, as of the date written below.

 

	Date of Conversion: 	 

 

	Conversion Price: 	 

 

Number of Shares of Common
Stock Beneficially Owned on the Conversion Date: Less than 5% of the outstanding Common Stock of WIZARD WORLD, INC.

 

	Shares To Be Delivered: 	 

 

	Signature: 	 

 

	Print Name: 	 

 

	Address: 	 
	 	 
	 	 

    	34

    	 

    

 

Exhibit B

 

NEITHER THE ISSUANCE AND
SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE 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 (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN
A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS 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.

 

	 	Right to Purchase _____ shares of Common Stock of Wizard World, Inc. (subject to adjustment as provided herein)

 

SERIES A COMMON STOCK PURCHASE
WARRANT

 

	No. 2011-A-00_	Issue Date: August ___, 2011

 

WIZARD WORLD, INC.
(formerly GoEnergy, Inc.), a corporation organized under the laws of the State of Delaware (the “Company”),
hereby certifies that, for value received [Holder’s name], with an address at [Holder’s _______________________Address], or
its assigns (the “Holder”), is entitled, subject to the terms set forth below, to purchase from the Company
at any time after the Issue Date until 5:00 p.m., EDT on the five (5) year anniversary of the Issue Date (the “Expiration
Date”), up to _______ (___) fully paid and non-assessable shares of Common Stock at a per share purchase
price of $0.60.  The aforedescribed purchase price per share, as adjusted from time to time as herein provided, is referred
to herein as the “Purchase Price.”  The number and character of such shares of Common Stock and the
Purchase Price are subject to adjustment as provided herein.  The Company may reduce the Purchase Price for some or all
of the Warrants, temporarily or permanently, provided such reduction is made as to all outstanding Warrants for all Holders
of such Warrants.  Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that
certain Subscription Agreement (the “Subscription Agreement”), dated as of August __, 2011, entered into by
the Company, Holder and the other signatories thereto.

 

As used herein the following
terms, unless the context otherwise requires, have the following respective meanings:

 

(a)         The
term “Company” shall mean Wizard World, Inc. (formerly GoEnergy, Inc.), a Delaware corporation, and any corporation
which shall succeed or assume the obligations of Wizard World, Inc. hereunder.

 

(b)         The
term “Common Stock” includes (i) the Company's Common Stock, $0.0001 par value per share, as authorized
on the date of the Subscription Agreement, and (ii) any other securities into which or for which any of the securities described
in (i) may be converted or exchanged pursuant to a plan of recapitalization, reorganization, merger, sale of assets or otherwise.

    	35

    	 

    

 

(c)         The
term “Other Securities” refers to any stock (other than Common Stock) and other securities of the Company or
any other person (corporate or otherwise) which the holder of the Warrant at any time shall be entitled to receive, or shall have
received, on the exercise of the Warrant, in lieu of or in addition to Common Stock, or which at any time shall be issuable or
shall have been issued in exchange for or in replacement of Common Stock or Other Securities pursuant to Section 4
hereof or otherwise.

 

(d)         The
term “Warrant Shares” shall mean the Common Stock issuable upon exercise of this Warrant.

 

1.           Exercise
of Warrant.

 

1.1.        Number
of Shares Issuable upon Exercise.  From and after the Issue Date through and including the Expiration Date, the Holder
shall be entitled to receive, upon exercise of this Warrant in whole in accordance with the terms of Section 1.2 hereof
or upon exercise of this Warrant in part in accordance with Section 1.3 hereof, shares of Common Stock of the Company,
subject to adjustment pursuant to Section 4 hereof and Sections 12(a) and 14(p) of the Subscription Agreement.

 

1.2.        Full
Exercise.  This Warrant may be exercised in full by the Holder hereof by delivery to the Company of an original or
facsimile copy of the form of subscription attached as Exhibit A hereto (the “Subscription Form”)
duly executed by such Holder and delivered within two (2) business day thereafter of payment, in cash, wire transfer or by certified
or official bank check payable to the order of the Company, in the amount obtained by multiplying the number of shares of Common
Stock for which this Warrant is then exercisable by the Purchase Price then in effect.  The original Warrant is not required
to be surrendered to the Company until it has been fully exercised.

 

1.3.        Partial
Exercise.  This Warrant may be exercised in part (but not for a fractional share) by delivery of a Subscription Form
in the manner and at the place provided in Section 1.2 hereof, except that the amount payable by the Holder on such
partial exercise shall be the amount obtained by multiplying (a) the number of whole shares of Common Stock designated by
the Holder in the Subscription Form by (b) the Purchase Price then in effect.  On any such partial exercise, upon
the written request of the Holder, provided the Holder has surrendered the original Warrant, the Company, at its expense, will
forthwith issue and deliver to or upon the order of the Holder a new Warrant of like tenor, in the name of the Holder hereof or
as such Holder (upon payment by such Holder of any applicable transfer taxes) may request, the whole number of shares of Common
Stock for which such Warrant may still be exercised.

 

1.4.        Fair
Market Value.  For purposes of this Warrant, the Fair Market Value of a share of Common Stock as of a particular
date (the “Determination Date”) shall mean:

 

(a)           If
the Company's Common Stock is traded on an exchange or on the NASDAQ Global Market, NASDAQ Global Select Market, the NASDAQ Capital
Market, the New York Stock Exchange or the NYSE AMEX Equities, then the average of the closing sale prices of the Common Stock
for the five (5) trading days immediately prior to (but not including) the Determination Date;

 

(b)           If
the Company's Common Stock is not traded on an exchange or on the NASDAQ Global Market, NASDAQ Global Select Market, the NASDAQ
Capital Market, the New York Stock Exchange or the NYSE AMEX Equities, but is traded on the OTC Bulletin Board or in the over-the-counter
market or Pink Sheets, then the average of the closing bid and ask prices reported for the five (5) trading days immediately prior
to (but not including) the Determination Date;

    	36

    	 

    

 

(c)           Except
as provided in clause (d) below and Section 3.1 hereof, if the Company's Common Stock is not publicly traded, then
as the Holder and the Company shall mutually agree, or in the absence of such an agreement after good faith efforts of the Company
and the Holder to reach an agreement, by arbitration in accordance with the rules then standing of the American Arbitration Association,
before a single arbitrator to be chosen from a panel of persons qualified by education and training to pass on the matter to be
decided; or

 

(d)           If
the Determination Date is the date of a liquidation, dissolution or winding up, or any event deemed to be a liquidation, dissolution
or winding up pursuant to the Company's charter, then all amounts to be payable per share to holders of the Common Stock pursuant
to the charter in the event of such liquidation, dissolution or winding up, plus all other amounts to be payable per share in respect
of the Common Stock in liquidation under the charter, assuming for the purposes of this clause (d) that all of the shares
of Common Stock then issuable upon exercise of all of the Warrants are outstanding at the Determination Date.

 

1.5.        Company
Acknowledgment.  The Company will, at the time of the exercise of the Warrant, upon the request of the Holder hereof,
acknowledge in writing its continuing obligation to afford to such Holder any rights to which such Holder shall continue to be
entitled after such exercise in accordance with the provisions of this Warrant. If the Holder shall fail to make any such request,
such failure shall not affect the continuing obligation of the Company to afford to such Holder any such rights.

 

1.6.        Delivery
of Stock Certificates, etc. on Exercise.  The Company agrees that, provided the purchase price listed in the Subscription
Form is received as specified in Section 2 hereof, the shares of Common Stock purchased upon exercise of this Warrant shall
be deemed to be issued to the Holder hereof as the record owner of such shares as of the close of business on the date on which
delivery of a Subscription Form shall have occurred and payment made for such shares as aforesaid. As soon as practicable after
the exercise of this Warrant in full or in part and the payment is made, and in any event within five (5) business days thereafter
(“Warrant Share Delivery Date”), the Company, at its expense (including the payment by it of any applicable
issue taxes), will cause to be issued in the name of, and delivered to, the Holder hereof, or as such Holder (upon payment by such
Holder of any applicable transfer taxes) may direct in compliance with applicable securities laws, a certificate or certificates
for the number of duly and validly issued, fully paid and non-assessable shares of Common Stock (or Other Securities) to which
such Holder shall be entitled on such exercise, plus, in lieu of any fractional share to which such Holder would otherwise be entitled,
cash equal to such fraction multiplied by the then Fair Market Value of one full share of Common Stock, together with any other
stock or other securities and property (including cash, where applicable) to which such Holder is entitled upon such exercise pursuant
to Section 1 hereof or otherwise.  The Company understands that a delay in the delivery of the Warrant Shares
after the Warrant Share Delivery Date could result in economic loss to the Holder.  As compensation to the Holder for
such loss, the Company agrees to pay (as liquidated damages and not as a penalty) to the Holder for late issuance of Warrant Shares
upon exercise of this Warrant the proportionate amount of $100 per business day after the Warrant Share Delivery Date for each
$10,000 of Purchase Price of Warrant Shares for which this Warrant is exercised which are not timely delivered.  The
Company shall promptly pay any payments incurred under this Section in immediately available funds upon demand.  Furthermore,
in addition to any other remedies which may be available to the Holder, in the event that the Company fails for any reason to effect
delivery of the Warrant Shares by the Warrant Share Delivery Date, the Holder may revoke all or part of the relevant Warrant exercise
by delivery of a written notice to such effect to the Company, whereupon the Company and the Holder shall each be restored to their
respective positions immediately prior to the exercise of the relevant portion of this Warrant, except that the liquidated damages
described above shall be payable through the date notice of revocation or rescission is given to the Company.

    	37

    	 

    

 

1.7.        Buy-In.  In
addition to any other rights available to the Holder, if the Company fails to deliver to a Holder the Warrant Shares as required
pursuant to this Warrant, and the Holder or a broker on the Holder’s behalf, purchases (in an open market transaction or
otherwise) shares of Common Stock to deliver in satisfaction of a sale by such Holder of the Warrant Shares which the Holder was
entitled to receive from the Company (a “Buy-In”), then the Company shall pay in cash to the Holder (in addition
to any remedies available to or elected by the Holder) the amount by which (A) the Holder's total purchase price (including brokerage
commissions, if any) for the shares of Common Stock so purchased exceeds (B) the aggregate Purchase Price of the Warrant Shares
required to have been delivered together with interest thereon at a rate of 15% per annum, accruing until such amount and any accrued
interest thereon is paid in full (which amount shall be paid as liquidated damages and not as a penalty).  For purposes
of illustration, if a Holder purchases shares of Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect
to $10,000 of Purchase Price of Warrant Shares to have been received upon exercise of this Warrant, the Company shall be required
to pay the Holder $1,000, plus interest.  The Holder shall provide the Company written notice indicating the amounts
payable to the Holder in respect of the Buy-In, which shall include evidence of the price at which such Holder had to purchase
the Common Stock in an open-market transaction or otherwise.

 

2.           Cashless
Exercise.

 

(a)         Payment
upon exercise may be made at the written option of the Holder either in (i) cash, wire transfer or by certified or official bank
check payable to the order of the Company equal to the applicable aggregate Purchase Price, (ii) by delivery of Common Stock issuable
upon exercise of the Warrants in accordance with Section (b) below or (iii) by a combination of any of the foregoing
methods, for the number of Common Stock specified in such form (as such exercise number shall be adjusted to reflect any adjustment
in the total number of shares of Common Stock issuable to the Holder per the terms of this Warrant) and the Holder shall thereupon
be entitled to receive the number of duly authorized, validly issued, fully-paid and non-assessable shares of Common Stock (or
Other Securities) determined as provided herein.  Notwithstanding the immediately preceding sentence, payment upon exercise
may be made in the manner described in Section 2(b) below only with respect to Warrant Shares not included for unrestricted
public resale in an effective registration statement on the date notice of exercise is given by the Holder.

 

(b)         If
the Fair Market Value of one share of Common Stock is greater than the Purchase Price (at the date of calculation as set forth
below), in lieu of exercising this Warrant for cash, the Holder may elect to receive shares equal to the value (as determined below)
of this Warrant (or the portion thereof being cancelled) by delivery of a properly endorsed Subscription Form delivered to the
Company by any means described in Section 13 hereof, in which event the Company shall issue to the holder a number of shares
of Common Stock computed using the following formula:

 

X=Y (A-B)

          A

 

	 	Where    X= 	the number of shares of Common Stock to be issued to the Holder

 

	 	Y=	the number of shares of Common Stock purchasable under the Warrant or, if only a portion of the Warrant is being exercised, the portion of the Warrant being exercised (at the date of such calculation)

 

	 	A=	Fair Market Value

 

	 	B=	Purchase Price (as adjusted to the date of such calculation)

    	38

    	 

    

 

For purposes of Rule 144
promulgated under the 1933 Act, it is intended, understood and acknowledged that the Warrant Shares issued in a cashless exercise
transaction in the manner described above shall be deemed to have been acquired by the Holder, and the holding period for the Warrant
Shares shall be deemed to have commenced, on the date this Warrant was originally issued pursuant to the Subscription Agreement.

 

3.           Adjustment
for Reorganization, Consolidation, Merger, etc.

 

3.1.        Fundamental Transaction. 
If, at any time while this Warrant is outstanding, (A) the Company  effects any merger or  consolidation  of
the Company with or into another entity, (B) the Company effects any sale of all or substantially all of its assets in
one or a series of related transactions,  (C) any tender offer or exchange offer (whether
by the Company or another entity) is completed pursuant to which holders of Common Stock are permitted to tender or exchange
their shares for other securities, cash or property, (D) the Company consummates a stock purchase agreement or other
business combination (including, without limitation, a reorganization, recapitalization, or spin-off) with one or more persons
or entities whereby such other persons or entities acquire more than the 50% of the outstanding shares of Common Stock (not including
any shares of Common Stock held by such other persons or entities making or party to, or associated or affiliated with the other
persons or entities making or party to, such stock purchase agreement or other business combination), (E) any “person”
or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the 1934 Act) is or shall become the
“beneficial owner” (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of 50% of the aggregate Common
Stock of the Company, or (F) the Company effects any reclassification of the Common Stock or any compulsory share exchange
pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash
or property (in any such case, a “Fundamental  Transaction”), then, upon any subsequent exercise
of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise
immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder, (a) upon exercise of
this Warrant, the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it
is the surviving corporation, and any additional consideration (the “Alternate Consideration”) receivable upon
or as a result of such reorganization, reclassification, merger, consolidation or disposition of assets
by a Holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such event or
(b) if the Company is acquired in (1) a transaction where the consideration paid to the holders of the Common Stock
consists solely of cash, (2) a “Rule 13e-3 transaction” as defined in Rule 13e-3 under the 1934 Act, or (3) a transaction
involving a person or entity not traded on a national securities exchange, the Nasdaq Global Select Market, the Nasdaq Global Market
or the Nasdaq Capital Market, cash equal to the Black-Scholes Value (as defined herein).  For purposes of
any such exercise, the determination of the Purchase Price shall be appropriately adjusted to apply to such Alternate
Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in
such Fundamental Transaction, and the Company shall apportion the Purchase Price among the Alternate Consideration
in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration.  If
holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction,
then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant
following such Fundamental Transaction.  To the extent necessary to effectuate the foregoing provisions, any
successor to the Company or surviving entity in such Fundamental Transaction shall issue to the Holder a new warrant consistent with
the foregoing provisions and evidencing the Holder's right to exercise such warrant into Alternate
Consideration.  The terms of any agreement pursuant to which a Fundamental Transaction is effected include terms requiring
any such successor or surviving entity to comply with the provisions of this Section 3.1 and insuring that
this Warrant (or any such replacement security) will be similarly adjusted upon any subsequent transaction analogous to a
Fundamental Transaction.  “Black-Scholes Value” shall be determined in accordance with the Black-Scholes
Option Pricing Model obtained from the “OV” function on Bloomberg L.P. using (i) a price per share of Common Stock
equal to the Volume Weighted Average Price of the Common Stock for the Trading Day immediately preceding the date of consummation
of the applicable Fundamental Transaction, (ii) a risk-free interest rate corresponding to the U.S. Treasury rate for a period
equal to the remaining term of this Warrant as of the date of such request and (iii) an expected volatility equal to the 100 day
volatility obtained from the HVT function on Bloomberg L.P. determined as of the Trading Day immediately following the public announcement
of the applicable Fundamental Transaction.

    	39

    	 

    

 

3.2.        Continuation
of Terms.  Upon any reorganization, consolidation, merger or transfer (and any dissolution following any transfer)
referred to in this Section 3 hereof, this Warrant shall continue in full force and effect and the terms hereof shall
be applicable to the Other Securities and property receivable on the exercise of this Warrant after the consummation of such reorganization,
consolidation or merger or the effective date of dissolution following any such transfer, as the case may be, and shall be binding
upon the issuer of any Other Securities, including, in the case of any such transfer, the person acquiring all or substantially
all of the properties or assets of the Company, whether or not such person shall have expressly assumed the terms of this Warrant
as provided in Section 4 hereof.

 

3.3         Share
Issuance.  Until the Expiration Date, if the Company shall issue any Common Stock, except for the Excepted Issuances
(as defined in the Subscription Agreement), prior to the complete exercise of this Warrant for a consideration less than the Purchase
Price that would be in effect at the time of such issuance, then, and thereafter successively upon each such issuance, the Purchase
Price shall be reduced to such other lower price for then outstanding Warrants.  For purposes of this adjustment, the
issuance of any security or debt instrument of the Company carrying the right to convert such security or debt instrument into
Common Stock or of any warrant to purchase Common Stock shall result in an adjustment to the Purchase Price upon the issuance of
the of the above-described security, debt instrument, warrant, right, or option if such issuance is at a price lower than the Purchase
Price in effect upon such issuance and again at any time upon any actual, permitted, optional, or allowed issuances of shares of
Common Stock upon any actual, permitted, optional, or allowed exercise of such conversion or purchase rights if such issuance is
at a price lower than the Purchase Price in effect upon any actual, permitted, optional, or allowed such issuance.  Common
Stock issued or issuable by the Company for no consideration will be deemed issuable or to have been issued for $0.0001 per share
of Common Stock.  The reduction of the Purchase Price described in this Section 3.3 is in addition to the other
rights of the Holder described in the Subscription Agreement.  Upon any reduction of the Purchase Price, the number of
shares of Common Stock that the Holder of this Warrant shall thereafter, on the exercise hereof, 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 3.3) be issuable on such exercise by a fraction of which (a) the numerator is the Purchase Price that would
otherwise (but for the provisions of this Section 3.3) be in effect, and (b) the denominator is the Purchase Price in effect
on the date of such exercise.

 

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 in this Section 4.  The
number of shares of Common Stock that the Holder of this Warrant shall thereafter, on the exercise hereof, 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 4) be issuable on such exercise by a fraction of which (a) the numerator is the Purchase Price
that would otherwise (but for the provisions of this Section 4) be in effect, and (b) the denominator is the Purchase Price
in effect on the date of such exercise.

    	40

    	 

    

 

5.           Certificate
as to Adjustments.  In each case of any adjustment or readjustment in the shares of Common Stock (or Other Securities)
issuable on the exercise of the Warrants or in the Purchase Price, 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 of the Warrant and
prepare a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment
or readjustment is based, including a statement of (a) the consideration received or receivable by the Company for any additional
shares of Common Stock (or Other Securities) issued or sold or deemed to have been issued or sold, (b) the number of shares
of Common Stock (or Other Securities) outstanding or deemed to be outstanding, and (c) the Purchase Price and the number of
shares of Common Stock to be received upon exercise of this Warrant, in effect immediately prior to such adjustment or readjustment
and as adjusted or readjusted as provided in this Warrant. The Company will forthwith mail a copy of each such certificate to the
Holder of the Warrant and any Warrant Agent (as defined herein) of the Company (appointed pursuant to Section 10 hereof).  Holder
will be entitled to the benefit of the adjustment regardless of the giving of such notice.  The timely giving of such
notice to Holder is a material obligation of the Company.

 

6.           Reservation
of Stock, etc. Issuable on Exercise of Warrant; Financial Statements.   The Company will at all times reserve
and keep available, solely for issuance and delivery on the exercise of the Warrants, all shares of Common Stock (or Other Securities)
from time to time issuable on the exercise of the Warrant.  This Warrant entitles the Holder hereof, upon written request,
to receive copies of all financial and other information distributed or required to be distributed to the holders of the Company's
Common Stock.

 

7.           Assignment;
Exchange of Warrant.  Subject to compliance with applicable securities laws, this Warrant, and the rights evidenced
hereby, may be transferred by any registered holder hereof (a “Transferor”).  On the surrender for
exchange of this Warrant, with the Transferor's endorsement in the form of Exhibit B attached hereto (the “Transferor
Endorsement Form”) and together with an opinion of counsel reasonably satisfactory to the Company that the transfer of
this Warrant will be in compliance with applicable securities laws, the Company will issue and deliver to or on the order of the
Transferor thereof a new Warrant or Warrants of like tenor, in the name of the Transferor and/or the transferee(s) specified in
such Transferor Endorsement Form (each a “Transferee”), calling in the aggregate on the face or faces thereof
for the number of shares of Common Stock called for on the face or faces of the Warrant so surrendered by the Transferor.

 

8.           Replacement
of Warrant.  On receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation
of this Warrant and, in the case of any such loss, theft or destruction of this Warrant, on delivery of an indemnity agreement
or security reasonably satisfactory in form and amount to the Company or, in the case of any such mutilation, on surrender and
cancellation of this Warrant, the Company at its expense, twice only, will execute and deliver, in lieu thereof, a new Warrant
of like tenor.

 

    	41

    	 

    

9.           Maximum
Exercise.  The Holder shall not be entitled to exercise this Warrant on an exercise date, in connection with that
number of shares of Common Stock which would be in excess of the sum of (i) the number of shares of Common Stock beneficially
owned by the Holder and its Affiliates on an exercise date, and (ii) the number of shares of Common Stock issuable upon the
exercise of this Warrant with respect to which the determination of this limitation is being made on an exercise date, which would
result in beneficial ownership by the Holder and its Affiliates of more than 4.99% of the outstanding shares of Common Stock on
such date.  For the purposes of the immediately preceding sentence, beneficial ownership shall be determined in accordance
with Section 13(d) of the 1934 Act and Rule 13d-3 thereunder.  Subject to the foregoing, the Holder shall not
be limited to aggregate exercises which would result in the issuance of more than 4.99%.  The restriction described in
this paragraph may be waived, in whole or in part, upon sixty-one (61) days’ prior notice from the Holder to the Company
to increase such percentage.  The Holder may decide whether to convert the Note or exercise this Warrant to achieve an
actual 4.99% or increase such ownership position as described above.

 

10.         Warrant
Agent.  The Company may, by written notice to the Holder, appoint an agent (a “Warrant Agent”)
for the purpose of issuing Common Stock (or Other Securities) on the exercise of this Warrant pursuant to Section 1
hereof, exchanging this Warrant pursuant to Section 7 hereof, and replacing this Warrant pursuant to Section 8
hereof, or any of the foregoing, and thereafter any such issuance, exchange or replacement, as the case may be, shall be made at
such office by such Warrant Agent.

 

11.         Transfer
on the Company's Books.  Until this Warrant is transferred on the books of the Company, the Company may treat the
registered holder hereof as the absolute owner hereof for all purposes, notwithstanding any notice to the contrary.

 

12.         Reserved.

 

13.         Notices.  All
notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and,
unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted
by hand delivery, telegram, or facsimile addressed as set forth below or to such other address as such party shall have specified
most recently by written notice.  Any notice or other communication required or permitted to be given hereunder shall
be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile
machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice
is to be received), or the first business day following such delivery (if delivered other than on a business day during normal
business hours where such notice is to be received), or (b) on the second business day following the date of mailing by express
courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur.  The
addresses for such communications shall be:  (i) if to the Company, to Wizard World, Inc., 1350 Avenue of the Americas,
2nd Floor, New York, NY 10019, Attn: Gareb Shamus, with a copy by fax only to (which
shall not constitute notice) Lucosky Brookman LLP, 33 Wood Avenue South, 6th Floor,
Iselin, NJ 08830, Attn: Joseph M. Lucosky, Esq., facsimile: (732) 395-4401, and (ii) if to the Holder, to the address and facsimile
number listed on the first paragraph of this Warrant, with a copy by fax (which shall not constitute notice) only to Grushko &
Mittman, P.C., 515 Rockaway Avenue, Valley Stream, New York 11581, facsimile: (212) 697-3575.

    	42

    	 

    

 

14.         Law
Governing This Warrant.  This Warrant shall be governed by and construed in accordance with the laws of the State
of New York without regard to its principles of conflicts of laws or of any other State.  Any action brought by either
party hereto against the other concerning the transactions contemplated by this Warrant shall be brought only in the state courts
of New York or in the federal courts located in the state and county of New York.  The parties to this Warrant hereby
irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based
on lack of jurisdiction or venue or based upon forum non conveniens.  The Company and the Holder waive trial
by jury.  The prevailing party shall be entitled to recover from the other party its reasonable attorneys’
fees and costs.  In the event that any provision of this Warrant or any other agreement delivered in connection herewith
is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the
extent that it may conflict therewith and shall be deemed modified to conform to, such statute or rule of law.  Any such
provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision
of any agreement.  Each party hereto hereby irrevocably waives personal service of process and consents to process being
served in any suit, action or proceeding in connection with this Warrant or any other Transaction Document by mailing a copy thereof
via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices
to it under this Warrant and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing
contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

 

[Signature Page Follows]

    	43

    	 

    

 

IN WITNESS WHEREOF, the Company
has executed this Warrant as of the date first written above.

 

	WIZARD WORLD INC.
	 
	By: 	 
	 	Gareb Shamus
	 	President and Chief Executive Officer

    	44

    	 

    

Exhibit A

 

FORM OF SUBSCRIPTION

(to be signed only on exercise
of Warrant)

 

TO:  WIZARD WORLD,
INC.

 

The undersigned, pursuant
to the provisions set forth in the attached Warrant (No.____), hereby irrevocably elects to purchase (check applicable box):

 

	___ 	________ shares of the Common Stock covered by such Warrant; or

 

	___	the maximum number of shares of Common Stock covered by such Warrant pursuant to the cashless exercise procedure set forth in Section 2 of the Warrant.

 

The undersigned herewith
makes payment of the full purchase price for such shares at the price per share provided for in such Warrant, which is $___________.  Such
payment takes the form of (check applicable box or boxes):

 

	___ 	$__________ in lawful money of the United States; and/or

 

	___	the cancellation of such portion of the attached Warrant as is exercisable for a total of _______ shares of Common Stock (using a Fair Market Value of $_______ per share for purposes of this calculation); and/or

 

	___	the cancellation of such number of shares of Common Stock as is necessary, in accordance with the formula set forth in Section 2 of the Warrant, to exercise this Warrant with respect to the maximum number of shares of Common Stock purchasable pursuant to the cashless exercise procedure set forth in Section 2.

 

After application of the
cashless exercise feature as described above, _____________ shares of Common Stock are required to be delivered pursuant to the
instructions below.

 

The undersigned requests
that the certificates for such shares be issued in the name of, and delivered to __________________________________________, whose
address is ___________________________ ___________________________________________________________________________________________.

 

The undersigned represents
and warrants that all offers and sales by the undersigned of the securities issuable upon exercise of the within Warrant shall
be made pursuant to registration of the Common Stock under the Securities Act of 1933, as amended (the “Securities Act”),
or pursuant to an exemption from registration under the Securities Act.

 

	Dated:___________________	 
	 	(Signature must conform to name of holder as
	 	specified on the face of the Warrant)
	 	 
	 	 
	 	 
	 	(Address)

    	45

    	 

    

Exhibit B

 

FORM OF TRANSFEROR ENDORSEMENT

(To be signed only on transfer
of Warrant)

 

For value received, the
undersigned hereby sells, assigns, and transfers unto the person(s) named below under the heading “Transferees” the
right represented by the within Warrant to purchase the percentage and number of shares of Common Stock of WIZARD WORLD, INC. to
which the within Warrant relates specified under the headings “Percentage Transferred” and “Number Transferred,”
respectively, opposite the name(s) of such person(s) and appoints each such person Attorney to transfer its respective right on
the books of WIZARD WORLD, INC., with full power of substitution in the premises.

 

	Transferees	 	Percentage Transferred	 	Number Transferred
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

	Dated:  __________________, _______	 	 
	 	 	(Signature must conform to name of holder as specified
	 	 	on the face of the warrant)
	 	 	 
	Signed in the presence of:	 	 
	 	 	 
	 	 	 
	(Name)	 	 
	 	 	(address)
	 	 	 
	ACCEPTED AND AGREED:	 	 
	[TRANSFEREE]	 	 
	 	 	(address)
	 	 	 
	 	 	 
	(Name)	 	 
	 	 	 

    	46

    	 

    

 

Exhibit C

 

FORM OF ESCROW AGREEMENT

 

This
Agreement is dated as of the ____ day of August, 2011 among Wizard World, Inc. (formerly GoEnergy, Inc.), a Delaware corporation
(the “Company”), the subscribers listed on Schedule 1 hereto (the “Subscribers”),
and Grushko & Mittman, P.C. (the “Escrow Agent”):

 

WITNESSETH:

 

WHEREAS, the Company
and the Subscribers have entered into a Subscription Agreement calling for the sale by the Company to the Subscribers of the Notes
and Series A Warrants (the “Warrants”) for an aggregate purchase price of up to $455,000; and

 

WHEREAS, the parties
hereto require the Company to deliver the Notes and Warrants against payment therefor, with such Notes, Warrants and the Escrowed
Payment to be delivered to the Escrow Agent, along with the other documents, instruments and payments hereinafter described, to
be held in escrow and released by the Escrow Agent in accordance with the terms and conditions of this Agreement; and

 

WHEREAS, the Escrow
Agent is willing to serve as escrow agent pursuant to the terms and conditions of this Agreement;

 

NOW THEREFORE, the
parties hereto agree as follows:

 

ARTICLE I

INTERPRETATION

 

1.1.Definitions. Capitalized terms used and not otherwise defined herein shall have the meanings
given to such terms in the Subscription Agreement (and the exhibits and schedules thereto) entered into or to be entered into by
the Company and the Subscribers in reference to the sale and purchase of the Notes and Warrants (the “Subscription Agreement”).
Whenever used in this Agreement, the following terms shall have the following respective meanings:

 

§“Agreement”
means this Agreement and all amendments made hereto by written agreement of the parties hereto;

 

§“Escrowed
Payment” means an aggregate cash payment of up to $290,000;

 

§“Legal
Fees” shall have the meaning set forth in Section 8 of the Subscription Agreement;

 

§“Legal
Opinion” means the original signed legal opinion referred to in Section 6 of the Subscription Agreement;

 

§“Notes”
shall have the meaning set forth in the second recital to the Subscription Agreement;

 

§
“Subscription Agreement” means the Subscription Agreement (and the exhibits and schedules thereto) entered into
or to be entered into by the Company and Subscribers in reference to the sale and purchase of the Notes and Warrants;

 

    	47

    	 

    
 

§“Warrants”
shall have the meaning set forth in Section 2(b) of the Subscription Agreement;

 

§Collectively,
the Legal Opinion, Notes, Warrants, and Subscription Agreement signed and executed by all signatories thereto other than the Subscribersare
referred to as “Company Documents”; and

 

§Collectively,
the Escrowed Payment and the Subscribers’ executed Subscription Agreement are referred to as “Subscriber Documents.”

 

1.2.Entire Agreement.
This Agreement along with the Company Documents and the Subscriber Documents to which the Subscriber and the Company are a party
constitute the entire agreement between the parties hereto pertaining to the Company Documents and Subscriber Documents and supersedes
all prior agreements, understandings, negotiations and discussions, whether oral or written, of the parties hereto. There are no
warranties, representations and other agreements made by the parties hereto in connection with the subject matter hereof, except
as specifically set forth in this Agreement, the Company Documents and the Subscriber Documents.

 

1.3.Extended
Meanings. In this Agreement words importing the singular number include the plural and vice versa; words importing the masculine
gender include the feminine and neuter genders. The word “person” includes an individual, body corporate, partnership,
trustee or trust or unincorporated association, executor, administrator or legal representative.

 

1.4.Waivers
and Amendments. This Agreement may be amended, modified, superseded, cancelled, renewed or extended, and the terms and conditions
hereof may be waived, only by a written instrument signed by all parties hereto, or, in the case of a waiver, by the party waiving
compliance. Except as expressly stated herein, no delay on the part of any party hereto in exercising any right, power or privilege
hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any party hereto of any right, power or privilege
hereunder preclude any other or future exercise of any other right, power or privilege hereunder.

 

1.5.Headings.
The division of this Agreement into articles, sections, subsections and paragraphs, and the insertion of headings are for convenience
of reference only and shall not affect the construction or interpretation of this Agreement.

 

1.6.Law Governing
this Agreement. This Agreement shall be governed by and construed in accordance with the laws of the State of New York without
regard to conflicts of laws principles that would result in the application of the substantive laws of another jurisdiction. Any
action brought by any party hereto against the other concerning the transactions contemplated by this Agreement shall be brought
only in the state courts of New York or in the federal courts located in the state and county of New York. The parties hereto and
the individuals executing this Agreement and other agreements on behalf of the Company agree to submit to the jurisdiction of such
courts and waive trial by jury. The prevailing party (which shall be the party which receives an award most closely resembling
the remedy or action sought) shall be entitled to recover from the other party its reasonable attorneys’ fees and costs.
In the event that any provision of this Agreement or any other agreement delivered in connection herewith is invalid or unenforceable
under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict
therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid
or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement.

 

    	48

    	 

    
 

1.7.Specific
Enforcement, Consent to Jurisdiction. The Company and the Subscribers acknowledge and agree that irreparable damage would occur
in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise
breached. It is accordingly agreed that the parties hereto shall be entitled to an injuction or injunctions to prevent or cure
breaches of the provisions of this Agreement and to enforce specifically the terms and provisions hereof or thereof, this being
in addition to any other remedy to which any of them may be entitled by law or equity. Subject to Section 1.6 hereof, each of the
Company and the Subscribers hereby waives, and agrees not to assert in any such suit, action or proceeding, any claim that it is
not personally subject to the jurisdiction of such court, that the suit, action or proceeding is brought in an inconvenient forum
or that the venue of the suit, action or proceeding is improper. Nothing in this Section shall affect or limit any right to serve
process in any other manner permitted by law.

 

ARTICLE II

DELIVERIES TO THE ESCROW AGENT

 

2.1.Company
Deliveries. On or before the Closing Date, the Company shall execute and deliver the Company Documents to the Escrow Agent.

 

2.2.Subscriber
Deliveries. On or before the Closing Date, the Subscribers shall execute and deliver the Subscription Agreements, and shall
deliver the Escrowed Payment in cash, to the Escrow Agent. The Escrowed Payment will be delivered pursuant to the following wire
transfer instructions:

 

Citibank, N.A.

1155 6th Avenue

New York, NY 10036

ABA Number: 0210-00089

For Credit to: Grushko & Mittman, IOLA Trust Account

Account Number: 45208884

 

2.3.Intention
to Create Escrow Over Company Documents and Subscriber Documents. The Subscribers and Company intend that the Company Documents
and Subscriber Documents shall be held in escrow by the Escrow Agent pursuant to this Agreement for their respective benefit as
set forth herein.

 

2.4.Escrow Agent
to Deliver Company Documents and Subscriber Documents. The Escrow Agent shall hold and release the Company Documents and Subscriber
Documents only in accordance with the terms and conditions of this Agreement.

 

ARTICLE III

RELEASE OF COMPANY DOCUMENTS AND SUBSCRIBER
DOCUMENTS

 

 

3.1.Release
of Escrow. Subject to the provisions of Section 4.2 hereof, the Escrow Agent shall release the Company Documents and Subscriber
Documents as follows:

 

(a)On
the Closing Date, the Escrow Agent will simultaneously release the Company Documents to the Subscribers and release the Subscriber
Documents to the Company, except that the Legal Fees will be released directly to the Subscribers’ attorneys.

 

    	49

    	 

    
 

(b)Notwithstanding
the above, upon receipt by the Escrow Agent of joint written instructions (“Joint Instructions”) signed by the
Company and the Subscribers, it shall deliver the Company Documents and Subscriber Documents in accordance with the terms of the
Joint Instructions.

 

(c)Anything herein to the contrary
notwithstanding, upon receipt by the Escrow Agent of a final and non-appealable judgment, order, decree or award of a court of
competent jurisdiction directing delivery of the Company Documents and Subscriber Documents (a “Court Order”),
the Escrow Agent shall deliver the Company Documents and Subscriber Documents in accordance with the Court Order. Any Court Order
shall be accompanied by an opinion of counsel for the party presenting the Court Order to the Escrow Agent (which opinion shall
be satisfactory to the Escrow Agent) to the effect that the court issuing the Court Order has competent jurisdiction and that the
Court Order is final and non-appealable.

 

3.2.Closings may
take place on or before August 15, 2011. After August 15, 2011, the Escrow Agent will promptly return the applicable Company Documents
to the Company and return the Subscriber Documents to the Subscribers.

 

3.3.Acknowledgement
of Company and Subscriber; Disputes. The Company and the Subscribers acknowledge that the only terms and conditions upon which
the Company Documents and Subscriber Documents are to be released are set forth in Sections 3 and 4 of this Agreement. The Company
and the Subscribers reaffirm their agreement to abide by the terms and conditions of this Agreement with respect to the release
of the Company Documents and Subscriber Documents. Any dispute with respect to the release of the Company Documents and Subscriber
Documents shall be resolved pursuant to Section 4.2 hereof or by mutual agreement between the Company and Subscribers.

 

ARTICLE IV

CONCERNING THE ESCROW AGENT

 

4.1.Duties and
Responsibilities of the Escrow Agent. The Escrow Agent’s duties and responsibilities shall be subject to the following
terms and conditions:

 

(a)The Subscribers and the Company
acknowledge and agree that the Escrow Agent (i) shall not be responsible for or bound by, and shall not be required to inquire
into whether either the Subscribers or Company is entitled to receipt of the Company Documents and Subscriber Documents, respectively,
pursuant to any other agreement or otherwise; (ii) shall be obligated only for the performance of such duties as are specifically
assumed by the Escrow Agent pursuant to this Agreement; (iii) may rely on and shall be protected in acting or refraining from acting
upon any written notice, instruction, instrument, statement, request or document furnished to it hereunder and believed by the
Escrow Agent in good faith to be genuine and to have been signed or presented by the proper person or party, without being required
to determine the authenticity or correctness of any fact stated therein or the propriety or validity or the service thereof; (iv)
may assume that any person believed by the Escrow Agent in good faith to be authorized to give notice or make any statement or
execute any document in connection with the provisions hereof is so authorized; (v) shall not be under any duty to give the property
held by Escrow Agent hereunder any greater degree of care than Escrow Agent gives its own similar property; and (vi) may consult
counsel satisfactory to Escrow Agent, the opinion of such counsel to be full and complete authorization and protection in respect
of any action taken, suffered or omitted by Escrow Agent hereunder in good faith and in accordance with the opinion of such counsel.

 

(b)The Subscribers
and Company acknowledge that the Escrow Agent is acting solely as a stakeholder at their request and that the Escrow Agent shall
not be liable for any action taken by Escrow Agent in good faith and believed by Escrow Agent to be authorized or within the rights
or powers conferred upon Escrow Agent by this Agreement. The Subscribers and Company, jointly and severally, agree to indemnify
and hold harmless the Escrow Agent and any of Escrow Agent’s partners, employees, agents and representatives for any action
taken or omitted to be taken by Escrow Agent or any of them hereunder, including the reasonable fees of outside counsel and other
costs and expenses of defending itself against any claim or liability under this Agreement, except in the case of gross negligence
or willful misconduct on Escrow Agent’s part committed in its capacity as Escrow Agent under this Agreement. The Escrow Agent
shall owe a duty only to the Subscribers and Company under this Agreement and to no other person.

 

    	50

    	 

    
 

(c)The Subscribers and the Company
jointly and severally agree to reimburse the Escrow Agent for reasonable outside counsel fees, to the extent authorized hereunder
and incurred in connection with the performance of its duties and responsibilities hereunder.

 

(d)The Escrow Agent may at any
time resign as Escrow Agent hereunder by giving five (5) days’ prior written notice of resignation to the Subscribers and
the Company. Prior to the effective date of the resignation as specified in such notice, the Subscribers and the Company will issue
to the Escrow Agent a Joint Instruction authorizing delivery of the Company Documents and Subscriber Documents to a substitute
Escrow Agent selected by the Subscribers and the Company. If no successor Escrow Agent is named by the Subscribers and the Company,
the Escrow Agent may apply to a court of competent jurisdiction in the State of New York for appointment of a successor Escrow
Agent, and to deposit the Company Documents and Subscriber Documents with the clerk of any such court.

 

(e)Other than in connection with
the Legal Fees, the Escrow Agent does not have and will not have any interest in the Company Documents and Subscriber Documents,
but is serving only as escrow agent, having only possession thereof. The Escrow Agent shall not be liable for any loss resulting
from the making or retention of any investment in accordance with this Escrow Agreement.

 

(f)This Agreement sets forth exclusively
the duties of the Escrow Agent with respect to any and all matters pertinent thereto and no implied duties or obligations shall
be read into this Agreement.

 

(g)The Escrow Agent shall be permitted
to act as counsel for the Subscribers in any dispute as to the disposition of the Company Documents and Subscriber Documents, in
any other dispute between the Subscribers and the Company, whether or not the Escrow Agent is then holding the Company Documents
and Subscriber Documents and continues to act as the Escrow Agent hereunder.

 

(h)The provisions of this Section
4.1 shall survive the resignation of the Escrow Agent or the termination of this Agreement.

 

4.2.Dispute
Resolution; Judgments. Resolution of disputes arising under this Agreement shall be subject to the following terms and conditions:

 

(a)If any dispute shall arise with
respect to the delivery, ownership, right of possession or disposition of the Company Documents and Subscriber Documents, or if
the Escrow Agent shall in good faith be uncertain as to its duties or rights hereunder, the Escrow Agent shall be authorized, without
liability to anyone, to (i) refrain from taking any action other than to continue to hold the Company Documents and Subscriber
Documents pending receipt of a Joint Instruction from the Subscribers and the Company, or (ii) deposit the Company Documents and
Subscriber Documents with any court of competent jurisdiction in the State of New York, in which event the Escrow Agent shall give
written notice thereof to the Subscribers and the Company and shall thereupon be relieved and discharged from all further obligations
pursuant to this Agreement. The Escrow Agent may, but shall be under no duty to, institute or defend any legal proceedings which
relate to the Company Documents and Subscriber Documents. The Escrow Agent shall have the right to retain counsel if it becomes
involved in any disagreement, dispute or litigation on account of this Agreement or otherwise determines that it is necessary to
consult counsel.

 

    	51

    	 

    
 

(b)The Escrow Agent is hereby expressly
authorized to comply with and obey any Court Order. In case the Escrow Agent obeys or complies with a Court Order, the Escrow Agent
shall not be liable to the Subscribers and the Company or to any other person, firm, corporation or entity by reason of such compliance.

 

ARTICLE V

GENERAL MATTERS

 

5.1.Termination.
This escrow shall terminate upon the release of all of the Company Documents and Subscriber Documents or at any time upon the agreement
in writing of the Subscribers and Company.

 

5.2.Notices.
All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing
and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted
by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified
most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed
effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine,
at the address or number designated below (if delivered on a business day during normal business hours where such notice is to
be received), or the first business day following such delivery (if delivered other than on a business day during normal business
hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service,
fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for
such communications shall be:

 

		(a)	If to the Company, to:

 

Wizard World, Inc.

1350 Avenue of the Americas, 2nd Floor

New York, NY 10019

Attn: Gareb Shamus

Fax: (212) 707-8180

 

With a copy by fax only to (which shall not constitute
notice):

 

Lucosky Brookman LLP

33 Wood Avenue South, 6th
Floor

Iselin, NJ 08830

Attn: Joseph M. Lucosky, Esq.

Fax: (732) 395-4401

 

    	52

    	 

    
 

		(b)	If to the Subscribers, to the addresses set forth on Schedule
1 hereto

 

With a copy by
facsimile only to (which shall not constitute notice):

 

Grushko & Mittman, P.C.

515 Rockaway Avenue

Valley Stream, New York 11581

Fax: (212) 697-3575

 

		(c)	If to the Escrow Agent, to:

 

Grushko & Mittman, P.C.

515 Rockaway Avenue

Valley Stream, New York 11581

Fax: (212) 697-3575

 

or to such other address as any of them
shall give to the others by notice made pursuant to this Section 5.2.

 

5.3.Interest.
The Escrowed Payment shall not be held in an interest bearing account nor will interest be payable in connection therewith.
In the event the Escrowed Payment is deposited in an interest bearing account, the Subscribers shall be entitled to receive any
accrued interest thereon, but only if the Escrow Agent receives from the Subscriber the Subscribers’ United States taxpayer
identification number and other requested information and forms.

 

5.4.Assignment;
Binding Agreement. Neither this Agreement nor any right or obligation hereunder shall be assignable by any party hereto without
the prior written consent of the other parties hereto. This Agreement shall enure to the benefit of and be binding upon the parties
hereto and their respective legal representatives, successors and assigns.

 

5.5.Invalidity.
In the event that any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid,
illegal, or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision in every
other respect and of the remaining provisions contained herein shall not be in any way impaired thereby, it being intended that
all of the rights and privileges of the parties hereto shall be enforceable to the fullest extent permitted by law.

 

5.6.Counterparts/Execution.
This Agreement may be executed in any number of counterparts and by different signatories hereto on separate counterparts, each
of which, when so executed, shall be deemed an original, but all such counterparts shall constitute but one and the same instrument.
This Agreement may be executed by facsimile transmission and delivered by facsimile transmission.

 

5.7.No
Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors
and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

5.8.Agreement.
Each of the undersigned states that he has read the foregoing Escrow Agreement and understands and agrees to it.

 

[REST OF THIS PAGE LEFT INTENTIONALLY
BLANK]

 

    	53

    	 

    

 

IN WITNESS WHEREOF,
the undersigned have executed and delivered this Escrow Agreement, as of the date first written above.

 

 

	 	THE “COMPANY”
	 	 
	 	WIZARD WORLD INC.
a Delaware corporation
	 	 
	 	 
	 	By: 	 
	 	 	Name:
Title:
	 	 	 
	 	 	 
	 	ESCROW AGENT:
	 	 
	 	GRUSHKO & MITTMAN, P.C.
	 	 
	 	 
	 	 
	 	Name:
	 	Title:

 

 

SUBSCRIBERS:

 

	 	 	 	 	 
	 	 	 	 	 
	Name:	 	 	Name:	 
	Title:	 	 	Title:	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	Name:	 	 	 	 
	Title:	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

    	54

    	 

    

 

SCHEDULE 1 - (SUBSCRIBERS)

 

 

	
        SUBSCRIBER

         
	NOTE PRINCIPAL	WARRANTS
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	TOTALS	 	 

 

    	55

    	 

    

 

Exhibit D

 

 

 

August 19, 2011

 

 

		TO:	The Subscribers identified on Schedule A hereto:

 

We have acted as special
counsel to Wizard World, Inc., a Delaware corporation (the “Company”), in connection with the offer and sale by the
Company of the Company’s Convertible Promissory Notes (the “Notes”) and Series A Common Stock Purchase Warrants
(the “Warrants”), for the aggregate Purchase Price of $290,000 to the subscribers identified on Schedule A hereto
(each a “Subscriber” and together, the “Subscribers”) in the amounts designated thereon pursuant to the
exemption from registration under the Securities Act of 1933, as amended (the “Act”), as set forth in Regulation D
(“Regulation D”) promulgated thereunder. Capitalized terms used herein and not otherwise defined shall have the meaning
assigned to them in that certain subscription agreement (the “Agreement”) by and among the Company and the Subscribers
entered into on or about the date hereof. The Agreement and the agreements described below are sometimes hereinafter referred to
collectively as the “Documents.”

 

In connection with
the opinions expressed herein, we have made such examination of law as we have considered appropriate or advisable for purposes
hereof. As to matters of fact material to the opinions expressed herein, we have relied, with your permission, upon the representations
and warranties as to factual matters contained in and made by the Company and the Subscribers pursuant to the Documents and upon
certificates and statements of certain government officials and of officers of the Company as described below. We have also examined
originals or copies of certain corporate documents or records of the Company as described below:

 

		(a)	Bylaws of the Company;

		(b)	Certificate of Incorporation of the Company;

		(c)	Good Standing Certificate dated August 1, 2011 of the Company (the “Good Standing Certificate”);

		(d)	Form of Note;

		(e)	Escrow Agreement;

		(f)	Form of Agreement;

		(g)	Form of Warrants; and

		(h)	Minutes of the action of the Company’s Board of Directors (the “Board”) or unanimous
written consent of the Board approving the Documents.

 

In rendering this opinion,
we have, with your permission, assumed: (a) the authenticity of all documents submitted to us as originals; (b) the conformity
to the originals of all documents submitted to us as copies; (c) the genuineness of all signatures; (d) the legal capacity of natural
persons; (e) the truth, accuracy and completeness of the information, factual matters, representations and warranties contained
in all of such documents; (f) the due authorization, execution and delivery of all such documents by the Subscribers, and the legal,
valid and binding effect thereof on the Subscribers; and (g) that the Company and the Subscribers will act in accordance with their
respective representations and warranties as set forth

in the Documents.

 

    	56

    	 

    
 

We are members of the
bar of the State of New York. We express no opinion as to the laws of any jurisdiction other than New York, Delaware and New Jersey
and the federal laws of the United States of America. We express no opinion with respect to the effect or application of any other
laws. Special rulings of authorities administering any of such laws or opinions of other counsel have not been sought or obtained
by us in connection with rendering the opinions expressed herein.

 

1.Based solely
on the Good Standing Certificate, the Company and each Subsidiary is duly incorporated, validly existing and in good standing in
the jurisdictions of its formation; has qualified to do business in each state and jurisdiction where required, unless the failure
to do so would not have a Material Adverse Effect on its operations; and have the requisite corporate power and authority to conduct
its business, and to own, lease and operate its properties.

 

2.The Company and
each Subsidiary has the requisite corporate power and authority to execute, deliver and perform its respective obligations under
the Documents. The Documents, and the issuance of the Notes and Warrants on the Closing Date and the reservation and issuance of
Conversion Shares and Warrant Shares (a) have been duly approved by the Board, as required, and (b) when issued pursuant to the
Agreement and upon delivery, shall be validly issued and outstanding, fully paid and non-assessable.

 

3.The execution,
delivery and performance of the Documents by the Company and the consummation of the transactions contemplated thereby, will not,
with or without the giving of notice or the passage of time or both:

 

(a)Violate the provisions
of the Certificate of Incorporation or bylaws of the Company or any Subsidiary; or

 

(b)To the best
of counsel’s knowledge, violate any judgment, decree, order or award of any court binding upon the Company or a Subsidiary.

 

4.The Documents
constitute the valid and legally binding obligations of the Company and are enforceable against the Company in accordance with
their respective terms.

 

5.None of the Notes,
Warrants, Conversion Shares and Warrant Shares has been registered under the Act or under the laws of any state or other jurisdiction,
and is or will be issued pursuant to a valid exemption from registration.

 

6.The Company and
each Subsidiary has either obtained the approval of the transactions described in the Documents from its Principal Market, if applicable,
and shareholders, or no such approval is required.

 

Our opinions expressed
above are specifically subject to the following limitations, exceptions, qualifications and assumptions:

 

A.The effect of
bankruptcy, insolvency, reorganization, moratorium and other similar laws relating to or affecting the relief of debtors or the
rights and remedies of creditors generally, including, without limitation, the effect of statutory or other law regarding fraudulent
conveyances and preferential transfers.

 

B.Limitations imposed
by state law, federal law or general equitable principles upon the specific enforceability of any of the remedies, covenants or
other provisions of any applicable agreement or upon the availability of injunctive relief or other equitable remedies, regardless
of whether enforcement of any such agreement is considered in a proceeding in equity or at law.

 

    	57

    	 

    
 

C.This opinion
letter is governed by, and shall be interpreted in accordance with, the Legal Opinion Accord (the “Accord”) of the
ABA Section of Business Law (1991), which is incorporated by reference herein. As a consequence, it is subject to a number of qualifications,
exceptions, definitions, limitations on coverage and other limitations, all as more particularly described in the Accord, including
the General Qualifications and the Equitable Principles Limitation, and this opinion letter should be read in conjunction therewith.

 

This opinion is rendered
as of the date first written above and is solely for your benefit in connection with the Agreement and may not be relied upon or
used by, circulated, quoted, or referred to, nor may any copies hereof by delivered to, any other person without our prior written
consent. We disclaim any obligation to update this opinion letter or to advise you of facts, circumstances, events or developments
which hereafter may be brought to our attention and which may alter, affect or modify the opinions expressed herein.

 

 

	 	 
	 	Very truly yours,
	 	 
	 	 
	 	 	 
	 	 	 

 

 

 

 

    	58

    	 

    

 

SCHEDULE A TO LEGAL OPINION

 

CONVERTIBLE PROMISSORY NOTES

SERIES A COMMON STOCK PURCHASE WARRANTS

 

 

	SUBSCRIBER	PURCHASE PRICE	NOTE PRINCIPAL	WARRANTS
	 	$150,000.00	$150,000.00	125,000
	 	$103,100.00	$103,100.00	85,917
	 	$100,000.00	$100,000.00	83,333
	 	$60,264.67	$60,264.67	50,221
	 	$40,000.00	$40,000.00	33,333
	TOTALS	$453,364.67	$453,364.67	377,804

 

    	59

    	 

    

 

SCHEDULE 1

 

	SUBSCRIBER	 	
        PURCHASE

        PRICE
	 	 	
        NOTE

        PRINCIPAL
	 	 	WARRANTS	 
	
         

         

         

         
	 	$	150,000.00	 	 	$	150,000.00	 	 	 	125,000	 
	
         

         

         

         
	 	$	103,100.00	 	 	$	103,100.00	 	 	 	85,917	 
	
         

         

         

         
	 	$	100,000.00	 	 	$	100,000.00	 	 	 	83,333	 
	
         

         

         

         
	 	$	60,057.54	 	 	$	60, 057.54	 	 	 	50,048	 
	
         

         

         

         
	 	$	40,000.00	 	 	$	40,000.00	 	 	 	33,333	 
	TOTALS	 	$	453,157.54	 	 	$	453,157.54	 	 	 	377,631	 

 

    	60

    	 

    

 

SCHEDULE 5(a)

 

SUBSIDIARIES

 

 

	Name of Subsidiary	 	Ownership Interests	 
	 	 	 	 
	Kick the Can Corp., a Nevada corporation	 	 	100	%
	 	 	 	 	 
	Wizard World Digital, Inc., a Nevada corporation	 	 	100	%

 

No exception to the Company’s
representation that it owns all of the equity of the Subsidiaries and rights to receive equity of the Subsidiaries, free and clear
of all liens, encumbrances and claims.

 

Wizard World, Inc. was formerly
known as GoEnergy, Inc.

 

Kick the Can Corp. is doing
business in New York under the assumed name ‘Wizard World.’

 

    	61

    	 

    

 

SCHEDULE 5(d)

 

CAPITALIZATION

 

Wizard World, Inc.

 

	 	1. 	Authorized and Outstanding Stock:

 

	 	(a) 	Preferred Stock, par value $.0001 per share – 20,000,000 authorized and 15,510 Series A Convertible Preferred outstanding; and

	 	(b) 	Common Stock, par value $.0001 per share – 80,000,000 shares authorized and 34,687,735 outstanding pre-dilution.

 

	 	2. 	Outstanding rights to acquire or receive, directly or indirectly, any equity of the Company (e.g., options, warrants or rights to subscribe to securities, rights, understandings or obligations convertible into or exchangeable for or granting any right to subscribe for any shares of capital stock or other equity interest of the Company):

 

	 	·	Warrants dated November 5, 2010 issued in connection with the Bridge Notes exercisable for an aggregate of 500,000 shares of common stock at an exercise price of $.60 per share;

	 	·	An aggregate of 9,760 Series A Convertible Preferred Stock issued December 6, 2010 convertible into an aggregate of 24,400 shares of common stock at a conversion price of $.40 per share;

	 	·	An aggregate of 487,964 Series A Warrants dated December 6, 2010 exercisable for an aggregate of 813,273 shares of common stock at an exercise price of $.60 per share;

	 	·	An aggregate of 5,750 Series A Convertible Preferred Stock issued April 18, 2011 convertible into an aggregate of 14,375 shares of common stock at a conversion price of $.40 per share; and

An aggregate of 287,500
Series A Warrants dated April 16, 2011 exercisable into an aggregate of 479,167 shares of common stock at an exercise price of
$.60 per share.

 

See also Item 3 below.

 

	 	3. 	Officer, director, employee and consultant stock option or stock incentive plan or similar plan:

 

Officer, director,
employee and consultant stock option

 

	 	·	Non-qualified stock options pursuant to which each of three consultants was granted 1,000,000 stock options exercisable at $.40 per share; and

	 	·	Non-qualified stock options issued to each director, except for Chairman Michael Mathews, to purchase up to 150,000 shares of the Company’s common stock at an exercise price per share equal to the closing price of the Company’s Common Stock on the execution date of a director agreement entered into between the Company and such director.

 

Stock incentive plan
or similar plan

 

	 	·	2011 Incentive Stock and Award Plan (to be amended)

 

    	62

    	 

    

 

Subsidiary Kick the Can Corp.

 

	 	1. 	Common Stock, par value $.0001 per share – 60,000,000 authorized and 33,239,840 outstanding.

 

	 	2. 	Outstanding rights to acquire or receive, directly or indirectly, any equity of the Company (e.g., options, warrants or rights to subscribe to securities, rights, understandings or obligations convertible into or exchangeable for or granting any right to subscribe for any shares of capital stock or other equity interest of the Company):

 

	 	·	Convertible Demand Promissory Note dated November 5, 2010 issued by GoEnergy, Inc. (now Wizard World, Inc.), as holder, and Kick the Can Corp., as maker, in the amount of $200,000 with a conversion price of $.40 per share; and

 

	 	3.	Officer, director, employee and consultant stock option or stock incentive plan or similar plan:

 

None.

 

Subsidiary Wizard World Digital,
Inc.

 

	 	1. 	Common Stock, par value $.0001 per share – 25,000,000 authorized and 1,000 outstanding.

 

	 	2. 	Outstanding rights to acquire or receive, directly or indirectly, any equity of the Company (e.g., options, warrants or rights to subscribe to securities, rights, understandings or obligations convertible into or exchangeable for or granting any right to subscribe for any shares of capital stock or other equity interest of the Company):

 

None

 

	 	3.	Officer, director, employee and consultant stock option or stock incentive plan or similar plan:

 

None

 

    	63

    	 

    

 

SCHEDULE 5(f)

 

ANTIDILUTION AND REGISTRATION
RIGHTS

 

	 	1. 	Triggered anti-dilution rights/reset/repricing:

 

	 	·	Warrants dated November 5, 2010 issued in connection with the Bridge Notes; exercisable for an aggregate of 500,000 shares at an exercise price of $.60 per share;

	 	·	An aggregate of 9,760 Series A Convertible Preferred Stock issued December 6, 2010 convertible into an aggregate of 24,400 shares of common stock at a conversion price of $.40 per share;

	 	·	An aggregate of 487,964 Series A Warrants dated December 6, 2010 exercisable for an aggregate of 813,273 shares of common stock  at an exercise price of $.60 per share;

	 	·	An aggregate of 5,750 Series A Convertible Preferred Stock issued April 18, 2011 convertible into an aggregate of 14,375 shares of common stock at a conversion price of  $.40 per share; and

	 	·	An aggregate of 287,500 Series A Warrants dated April 16, 2011 exercisable into an aggregate of 479,167 shares of common stock at an exercise price of $.60 per share;

	 	·	Non-qualified stock options pursuant to which each of three consultants was granted 1,000,000 stock options exercisable at $.40 per share; and

	 	·	Non-qualified stock options issued to each director, except for Chairman Michael Mathews, to purchase up to 150,000 shares of the Company’s common stock at an exercise price per share equal to the closing price of the Company’s Common Stock on the execution date of a director agreement entered into between the Company and such director.

 

	 	2.	Triggered registration rights:

 

	 	·	Warrants dated November 5, 2010 issued in connection with the Bridge Notes; exercisable for an aggregate of 500,000 shares at an exercise price of $.60 per share;

	 	·	An aggregate of 9,760 Series A Convertible Preferred Stock issued December 6, 2010 convertible into an aggregate of 24,400 shares of common stock at a conversion price of $.40 per share;

	 	·	An aggregate of 487,964 Series A Warrants dated December 6, 2010 exercisable for an aggregate of 813,273 shares of common stock at an exercise price of $.60 per share;

	 	·	An aggregate of 5,750 Series A Convertible Preferred Stock issued April 18, 2011 convertible at a conversion price of $.40 per share; and

	 	·	Series A Warrants dated April 16, 2011 exercisable into an aggregate of 479,167 shares of common stock at an exercise price of $.60 per share ;

	 	·	Non-qualified stock options pursuant to which each of three consultants was granted 1,000,000 stock options exercisable at $.40 per share; and

	 	·	Non-qualified stock options issued to each director, except for Chairman Michael Mathews, to purchase up to 150,000 shares of the Company’s common stock at an exercise price per share equal to the closing price of the Company’s Common Stock on the execution date of a director agreement entered into between the Company and such director.

 

    	64

    	 

    

 

SCHEDULE 5(o)

 

UNDISCLOSED LIABILITIES

 

None.

    	65

    	 

    

SCHEDULE 5(w)

 

TRANSFER AGENT

 

VStock Transfer, LLC

77 Spruce Street, Suite 201

Cedarhurst, New York 11516

Attn:  Yoel Goldfeder,
Esq.

Chief Executive Officer

 

Phone: (212) 828-8436

Facsimile: (646) 536-3179

Email: yoel@vstocktransfer.com

 

    	66

    	 

    

SCHEDULE 9(e)

 

USE OF PROCEEDS

 

All proceeds will be used
for working capital and general corporate.

 

    	67

    	 

    

SCHEDULE 9(l)

 

INTELLECTUAL PROPERTY

 

Wizard World, Inc.

 

	 	·	Website www.wizardworld.com

	 	·	Wizard World Digital newsletter

	 	·	www.pop-fi.com

	 	·	Flash game

	 	·	Android and iPhone apps

	 	·	Integration with iPad

 

Kick the Can Corp.

 

	 	·	Domain name www.wizardworld.com;

	 	·	License to use a subscriber database granted to Kick the Can Corp. by Wizard Entertainment (d/b/a Gareb Shamus Enterprises, Inc.), the licensor; and

	 	·	The following comic conventions:

 

	1.	Atlanta Comic Convention, including, without limitation, the assignment of the Memorandum, dated January 1, 2010, by and between Kick the Can Corp. and Wes Tillander; and ‘Atlanta Comic Convention’ (non-exclusive).

 

	2.	Big Apple Comic Convention, including, without limitation, the assignment of the Memorandum, dated April 1, 2009, by and between Kick the Can Corp. and Big Apple Tables, LLC; ‘Big Apple Con’; www.bigapplecon.com; and mail and email lists (non-exclusive).

 

	3.	Cincinnati Comic Convention, including, without limitation, the assignment of the Memorandum, dated January 4, 2010, by and between Kick the Can Corp. and Marc Ballard; and ‘Cincinnati Comic Con’ (non-exclusive).

 

	4.	Connecticut Comic Convention, including, without limitation, the assignment of the Memorandum, dated May 2010, by and among Kick the Can Corp. and Alternative Universe, Mitchell Hallock, Erik Yaeko and Jay Claus; ‘ComiConn’ (non-exclusive); and mail and email lists (non-exclusive).

 

	5.	Nashville Comic Convention, including, without limitation, the assignment of the Memorandum, dated January 4, 2010, by and between Kick the Can Corp. and Marc Ballard; and ‘Nashville Comic Con’ (non-exclusive).

 

	6.	New England Comic Convention, including, without limitation, the assignment of the Memorandum, dated November 16, 2009, by and between Kick the Can Corp. and Harrisons Limited (Harrisons); ‘New England Comic Con’; and ‘NECC’.

 

	7.	North Coast Comic Convention, including, without limitation, the assignment of the Memorandum, dated January 2010, by and between Kick the Can Corp. and Roger Priebe; ‘North Coast Comic Con’ (non-exclusive); and mail and email lists (non-exclusive).

 

    	68

    	 

    

 

	8.	Toronto Comic Convention, including, without limitation, the assignment of the Memorandum, dated June 2009, by and among Kick the Can Corp., Peter Dixon and Paradise Conventions; ‘Paradise Toronto Comicon’; and www.torontocomicon.com.

 

	9.	New Orleans Comic Convention, including, without limitation, the assignment of a Memorandum or agreement from Ronnie Prudhomme to Kick the Can Corp.; ‘Nola’; Nola Comic Con marks (non-exclusive); and mail and email lists (non-exclusive).

 

	10.	Winnipeg (Central Canada) Comic Convention, including, without limitation, the assignment of a Memorandum or agreement from Michael Damien Paille to Kick the Can Corp.; ‘Central Canada Comic Con’; C4 marks (non-exclusive); and mail and email lists ((non-exclusive).

 

Kick the Can Corp. may acquire,
if not already owned, the following comic conventions:

 

	11.	Houston Comic Convention, including, without limitation, the assignment of a Memorandum or agreement from Robert Quijano to Kick the Can Corp.; ‘Houston Comic Con’ (non-exclusive); and mail and email lists ((non-exclusive).

	 	 

	12.	Mid Ohio Comic Convention, including, without limitation, the assignment of a Memorandum or agreement from CGC Holdings LLC; ‘Mid-Ohio-Con’; and Ohio Comic-Con marks

	 	 

	13.	Austin Comic Convention

	 	 

	14.	Anaheim Comic Convention

	 	 

	15.	[Miami Comic Convention]

	 	 

	16.	Philadelphia Comic Convention

	 	 

	17.	Chicago Comic Convention

	 	 

	18.	Los Angeles Comic Convention

 

Wizard World Digital, Inc.

 

Wizard World Girls

 

    	69

    	 

    

 

SCHEDULE 12(a)

 

See Schedule 5(d) hereof

 

    	70SECURITIES
PURCHASE AGREEMENT

 

This Securities Purchase
Agreement (this “Agreement”), dated as of June 26, 2012, is made by and between NanoViricides, Inc., a Nevada
corporation (the “Company”), and Seaside 88, LP, a Florida limited partnership (the “Purchaser”).

 

WHEREAS, subject to
the terms and conditions set forth in this Agreement and pursuant to the Registration Statement (as defined below), the Company
desires to issue and sell to the Purchaser, and the Purchaser desires to purchase from the Company, securities of the Company as
more fully described in this Agreement.

 

NOW, THEREFORE, IN
CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the Company and the Purchaser agree as follows:

 

ARTICLE I.

DEFINITIONS

 

1.1             
Definitions. In addition to the terms defined elsewhere in this Agreement,
for all purposes of this Agreement, the following terms have the meanings set forth in this Section 1.1:

 

“20-Day VWAP”
means the daily volume weighted average of actual trading prices (measured in hundredths of cents) during normal trading hours
of the Common Stock of the Company on the Trading Market for the twenty (20) consecutive Trading Days ending on the last Trading
Day immediately preceding a Conversion Date.

 

“Acquiring
Person” shall have the meaning ascribed to such term in Section 4.4.

 

“Action”
shall have the meaning ascribed to such term in Section 3.1(j).

 

“Affiliate”
means, with respect to any specified Person, any other Person that, directly or indirectly through one or more intermediaries,
controls, is controlled by or is under common control with such Person, as such terms are used in and construed under Rule 405
under the Securities Act.

 

“Agreement”
shall have the meaning ascribed to such term in the introduction hereof, as the same may be amended from time to time.

 

“Board
of Directors” means the board of directors of the Company.

 

“Broker”
shall have the meaning ascribed to such term in Section 3.1(s).

 

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or
any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to
close.

    	1

    	 

    
 

“Certificate
of Designation” means the Certificate of Designation, Rights and Preferences of the Series C Stock as filed with the
Secretary of State of the State of Nevada.

 

“Closing”
means the Initial Closing and the Subsequent Closing.

 

“Closing
Dates” means the Initial Closing Date and the Subsequent Closing Date.

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Common
Stock” means the common stock of the Company, par value $0.001 per share, and any other class of securities into which
such securities may hereafter be reclassified or changed.

 

“Common
Stock Equivalents” means any securities of the Company or its Subsidiaries that would entitle the holder thereof to acquire
at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument
that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common
Stock.

 

“Company”
shall have the meaning ascribed to such term in the introduction hereof, including any successor or assign thereof.

 

“Company
Counsel” means Tarter Krinsky & Drogin LLP, 1350 Broadway, New York, NY 10018.

 

“Conversion
Date” shall have the meaning ascribed to such term in Section 2.6(a).

 

“Conversion
Shares” means the shares of Common Stock issued or issuable to the Purchaser upon conversion of the Shares.

 

“Conversion
Volume Amount” means an amount equal to fifteen percent (15%) of the total number of shares of Common Stock traded during
the ten (10) Trading Days preceding a Conversion Date, as reported by Bloomberg Financial Markets, rounded up to the nearest whole
number.

 

“Disclosure
Schedules” shall have the meaning ascribed to such term in the introduction to Section 3.1.

 

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

 

“Floor”
shall mean $0.20 (as the same may be proportionately adjusted in respect of any stock split, stock dividend, combination, recapitalization
or the like with respect to the Common Stock).

 

“GAAP”
shall have the meaning ascribed to such term in Section 3.1(h).

    	2

    	 

    
 

“Initial
Closing” means the closing of the purchase and sale of the first 2,500 Shares pursuant to Section 2.2.

 

“Initial
Closing Date” means the Trading Day on which all of the Transaction Documents have been executed and delivered by the
applicable parties thereto, and all conditions precedent to (i) the Purchaser’s obligations to pay the Subscription Amount
for the first tranche of 2,500 Shares and (ii) the Company’s obligations to deliver such 2,500 Shares, in each case, have
been satisfied or waived, but in no event later than the third (3rd) Trading Day following the date hereof.

 

“Intellectual
Property Rights” shall have the meaning ascribed to such term in Section 3.1(o).

 

“Liens”
means a lien, charge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

“Material
Adverse Effect” shall have the meaning assigned to such term in Section 3.1(b).

 

“Per
Share Purchase Price” equals $1,000.00, subject to adjustment for reverse and forward stock splits, stock dividends,
stock combinations and other similar transactions that occur after the date of this Agreement.

 

“Per
Share Conversion Price” shall be an amount equal to the lower of (i) the daily volume weighted average of actual trading
prices (measured in hundredths of cents) during normal trading hours of the Common Stock on the Trading Market for the ten (10)
consecutive Trading Days ending on the last Trading Day immediately preceding a Conversion Date, as reported by Bloomberg Financial
Markets, multiplied by 0.85 and (ii) the daily volume weighted average of actual trading prices (measured in hundredths of cents)
during normal trading hours of the Common Stock on the Trading Market for the Trading Day immediately preceding a Conversion Date,
as reported by Bloomberg Financial Markets, multiplied by 0.88.

 

“Permits”
shall have the meaning ascribed to such term in Section 3.1(m).

 

“Person”
means an individual, corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Prospectus
Supplement” means the supplement or supplements to the base prospectus contained in the Registration Statement to be
filed in connection with the sale to the Purchaser, and the resale by the Purchaser, of the Securities.

 

“Purchaser”
shall have the meaning ascribed to such term in the introduction hereof, including any successor or assign thereof.

 

“Purchaser
Party” shall have the meaning ascribed to such term in Section 4.7.

    	3

    	 

    
 

“Registration
Statement” means the registration statement of the Company, Commission File No. 333-165221, as the same may amended from
time to time, covering the issuance and sale to the Purchaser, and the resale by the Purchaser, of the Securities.

 

“Required
Approvals” shall have the meaning ascribed to such term in Section 3.1(e).

 

“Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“Rule
424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

  

“SEC
Reports” shall have the meaning ascribed to such term in Section 3.1(h).

 

“Securities”
means the Shares and the Conversion Shares.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Series
C Stock” means the shares of Series C Convertible Preferred Stock, $0.001 par value per share, of the Company.

 

“Share
Amount” means the number of Shares to be converted by Purchaser on a Conversion Date, such number to be equal to the
quotient, calculated to four places to the right of the decimal point, determined by dividing (a) the product of the Conversion
Volume Amount and the Per Share Conversion Price by (b) the Per Share Purchase Price, subject
to the limitations set forth in Section 2.6(f) and 2.7 herein.

 

“Share
Limit” shall have the meaning ascribed to such term in Section 2.6(f).

 

“Shares”
means the shares of Series C Stock issued to the Purchaser pursuant to this Agreement.

 

“Short
Sales” means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act (but
shall not be deemed to include the location and/or reservation of borrowable shares of Common Stock). 

 

“Subscription
Amount” shall have the meaning ascribed to such term in Section 2.4(b)(ii).

 

“Subsequent
Closing” means the closing of the purchase and sale of the second 2,500 Shares pursuant to Section 2.3.

    	4

    	 

    
 

“Subsequent
Closing Date” means the day that is ten (10) Business Days subsequent to the final Conversion Date on which the last
of the Shares issued and sold in the Initial Closing have been converted into Common Stock (or, if any such day is not a Trading
Day, then the first day thereafter that is a Trading Day), or such later date when all conditions precedent to (i) the Purchaser’s
obligations to purchase the second tranche of 2,500 Shares and (ii) the Seller’s obligations to deliver such 2,500 Shares
at the Subsequent Closing have been satisfied or waived, unless this Agreement is earlier terminated pursuant to the terms hereof.

 

“Subsidiary”
means any subsidiary of the Company as set forth on Schedule 3.1(a) and shall, where applicable, also include any direct
or indirect subsidiary of the Company formed or acquired after the date hereof.

 

“Trading
Day” means a day on which the principal Trading Market is open for trading.

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the New York Stock Exchange, the NYSE Alternext Exchange, the NYSE Amex, the Nasdaq Capital Market, the Nasdaq
Global Market, the Nasdaq Global Select Market, the Over-The-Counter Bulletin Board or the OTCQX (or any successors to any of the
foregoing).

 

“Transaction
Documents” means this Agreement and all schedules hereto (including the Disclosure Schedules) and any other documents
or agreements executed in connection with the transactions contemplated hereunder.

 

“Transfer
Agent” means Corporate Stock Transfer, Inc., the current transfer agent of the Company, with a mailing address of 3200
Cherry Creek Drive South, Suite 430, Denver, CO 80209 and a facsimile number of (302) 282-5800, and any successor transfer agent
of the Company.

 

ARTICLE II.

PURCHASE AND SALE

 

2.1             
Sale and Issuance of the Series C Stock. 

 

(a)               
On or before the Initial Closing Date, the Company shall adopt and file with the Secretary of State of the State of Nevada
the Certificate of Designation for the Series C Stock in the form of Exhibit A attached hereto and made a part hereof (the
“Certificate of Designation”).

 

(b)              
On the terms and subject to the conditions set forth in this Agreement, at each Closing the Purchaser agrees to purchase,
and the Company agrees to sell, the applicable number of shares of the Series C Stock at the Per Share Purchase Price.

 

2.2             
Initial Closing. On the Initial Closing Date, upon the terms and
subject to the conditions set forth herein, the Company shall issue and sell to the Purchaser, in book entry form to be maintained
by the Company, and the Purchaser shall purchase from the Company, 2,500 shares of Series C Stock at the Per Share Purchase Price.
Upon satisfaction or waiver of the covenants and conditions set forth in Sections 2.4 and 2.5, the Initial Closing shall occur
remotely via the exchange of documents and signatures on the Initial Closing Date.

    	5

    	 

    

 

2.3             
Subsequent Closing. On the Subsequent Closing Date, upon the terms
and subject to the conditions set forth herein, the Company shall issue and sell to the Purchaser, in book entry form to be maintained
by the Company, and the Purchaser shall purchase from the Company, 2,500 shares of Series C Stock at the Per Share Purchase Price.
Upon satisfaction or waiver of the covenants and conditions set forth in Sections 2.4 and 2.5, the Subsequent Closing shall occur
remotely via the exchange of documents and signatures on the Subsequent Closing Date.

 

2.4             
Deliveries.

 

(a)               
On or prior to each Closing Date, the Company shall deliver or cause to be delivered to the Purchaser the following:

 

(i)                
solely on the Initial Closing Date, this Agreement duly executed by the Company;

 

(ii)              
the opinion of Company Counsel, substantially in the form of Exhibit B hereto;

 

(iii)            
an officer’s certificate of the Company’s Chief Executive Officer or Chief Financial Officer in the form of
Exhibit C attached hereto; and

 

(iv)            
a certificate evidencing the number of Shares to be purchased by the Purchaser at such Closing, registered in the name of
the Purchaser.

 

(b)              
On or prior to each Closing Date, the Purchaser shall deliver or cause to be delivered to the Company the following:

 

(i)                
solely on the Initial Closing Date, this Agreement duly executed by the Purchaser; and

 

(ii)              
funds in United States Dollars in an amount equal to the Per Share Purchase Price multiplied by the number of Shares to
be purchased by the Purchaser at such Closing (the “Subscription Amount”), in each case less the amount due
the Purchaser for reimbursement of its expenses pursuant to Section 5.2 hereof, by wire transfer to the account as specified in
writing by the Company.

 

2.5             
Closing Conditions. 

 

(a)               
The obligations of the Company hereunder to sell Shares at a Closing are subject to the satisfaction by the Purchaser, or
waiver by the Company, of each of the following conditions:

 

(i)                
the representations and warranties of the Purchaser contained herein shall be true and correct as of the Closing Date (unless
such representations and warranties speak as of a specific date, in which case they shall be true and correct as of such date);

    	6

    	 

    
 

(ii)              
the Purchaser shall have performed and complied with all obligations, covenants and agreements of the Purchaser required
to be performed at or prior to the Closing Date; and

 

(iii)            
the Purchaser shall have delivered the items set forth in Section 2.4(b) of this Agreement applicable for such Closing.

 

(b)              
The obligations of the Purchaser hereunder to acquire Shares at a Closing are subject to the satisfaction by the Company,
or waiver by the Purchaser, of each of the following conditions:

 

(i)                
the representations and warranties of the Company contained herein shall be true and correct as of the Closing Date (unless
such representations and warranties speak as of a specific date, in which case they shall be true and correct as of such date);

 

(ii)              
the Company shall have performed and complied with all obligations, covenants and agreements of the Company required to
be performed at or prior to the Closing Date;

 

(iii)            
the Company shall have delivered the items set forth in Section 2.4(a) of this Agreement applicable for such Closing;

 

(iv)            
the Company shall have obtained all authorizations, approvals and permits, if any, of any Person required in connection
with the lawful issuance and sale of the Shares to the Purchaser at such Closing, and all such authorizations, approvals and permits
shall be effective as of such Closing;

 

(v)              
there shall have been no Material Adverse Effect with respect to the Company since the date hereof;

 

(vi)            
the Registration Statement shall be in full force and effect; and

 

(vii)          
from the date hereof to the Closing Date, trading in the Common Stock shall not have been suspended by the Commission or
the Company’s principal Trading Market, and, at any time prior to the Closing Date, trading in securities generally as reported
by Bloomberg L.P. shall not have been suspended or limited, or minimum prices shall not have been established on securities whose
trades are reported by such service, or on any Trading Market, nor shall a banking moratorium have been declared either by the
United States or New York State authorities, nor shall there have occurred any material outbreak or escalation of hostilities or
other national or international calamity of such magnitude in its effect on, or any material adverse change in, any financial market
which, in each case, in the reasonable judgment of the Purchaser, makes it impracticable or inadvisable to purchase the Shares
at the Closing.

    	7

    	 

    
 

2.6             
Automatic Conversion of Shares; Conversion Dates; Per Share Conversion Price.

 

(a)               
Each of the Company and Purchaser agrees that, (i) on each of the Initial Closing Date and the Subsequent Closing Date,
the Share Amount shall automatically convert, without any action on the part of the Purchaser, into shares of Common Stock of the
Company, and (ii) on every fourteenth (14th) day after each of the Initial Closing Date and Subsequent Closing Date
(or, if such day in not a Trading Day, then the first day thereafter that is a Trading Day) (each, a “Conversion Date”),
the Share Amount shall automatically convert (or such lesser number of Shares that then remains unconverted), without any action
on the part of the Purchaser, into shares of Common Stock of the Company until all of the Shares have been converted, in each case
subject to the conditions to conversion set forth herein and the limitations set forth in Sections 2.6(f) and 2.7 herein.

 

(b)              
No conversion shall occur on a Conversion Date unless the following conditions are met:

 

(i)                
the 20-Day VWAP as calculated with respect to such Conversion Date shall equal or exceed the Floor;

 

(ii)              
the Registration Statement shall be in full force and effect; and

 

(iii)            
as of the Conversion Date, trading in the Common Stock shall not have been suspended by the Commission or the Company’s
principal Trading Market, and, at any time prior to the Conversion Date, trading in securities generally as reported by Bloomberg
L.P. shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are
reported by such service, or on any Trading Market, nor shall a banking moratorium have been declared either by the United States
or New York State authorities, nor shall there have occurred any material outbreak or escalation of hostilities or other national
or international calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in
each case, in the reasonable judgment of the Purchaser, makes it impracticable or inadvisable to sell the Conversion Shares issuable
in connection with such conversion.

 

(c)               
For each Conversion Date for which all conditions to conversion have been satisfied, the Share Amount shall be convertible
into the number of shares of Common Stock that results from dividing (x) the product of the Per Share Purchase Price and the Share
Amount by (y) the Per Share Conversion Price in effect at the time of conversion for each Share being converted. The Per Share
Conversion Price shall be subject to adjustment from time to time as provided in the Certificate of Designation. On each Conversion
Date that occurs, the Company shall deliver or cause to be delivered to the Purchaser the number of Conversion Shares issuable
on each such Conversion Date, registered in the name of the Purchaser, via the DTC DWAC system, as specified on the signature page
hereto, subject to the limitation set forth in Section 2.6(f) below.

    	8

    	 

    
 

(d)              
If, with respect to any Conversion Date, the Floor is not met or the Registration Statement is not in full force and effect,
then no conversion of Shares will occur on such Conversion Date. With respect to any Conversion Date on which no conversion of
Shares occurs due to the failure of the Registration Statement to be in full force and effect, the redemption rights set forth
in the Certificate of Designation shall be available to the Purchaser with respect to such Securities. With respect to any Conversion
Date on which no conversion of Shares occurs due to the failure of the Floor to be met, the Shares not converted on such Conversion
Date shall be added to the Shares to be converted on the following Conversion Date.

 

(e)               
In connection with each conversion on a Conversion Date, the Company shall provide irrevocable instructions to the Transfer
Agent instructing the Transfer Agent to deliver, via the DWAC DTC system, the number of Conversion Shares to be issued to the Purchaser
at each such Conversion Date, registered in the name of the Purchaser as specified on the signature page hereto.

 

(f)               
Notwithstanding anything contained herein to the contrary, if, with respect to any Conversion Date, the proposed number
of Conversion Shares to be received by the Purchaser on such Conversion Date is greater than two (2) times the number of Conversion
Shares received by the Purchaser on the immediately preceding Conversion Date (the “Share Limit”), then Purchaser
shall have the option to reduce the number of Shares converted on such Conversion Date such that the number of Conversion Shares
to be received by Purchaser on such Conversion Date is an amount equal to as near as possible the applicable Share Limit.

 

2.7             
Ownership Limitation. In no event, as a result of any conversion
or otherwise, shall the Purchaser own, beneficially or of record, more than 4.99% of the issued and outstanding Common Stock of
the Company immediately after such conversion or other event.

 

ARTICLE III.

REPRESENTATIONS AND WARRANTIES

 

3.1             
Representations and Warranties of the Company. Except as set forth
in the corresponding section of the disclosure schedules delivered concurrently herewith (the “Disclosure Schedules”),
which Disclosure Schedules may be updated in connection with the Subsequent Closing and which shall be deemed a part hereof and
shall qualify any representation made herein to the extent of the disclosure contained in the corresponding section of the Disclosure
Schedules, the Company hereby makes the following representations and warranties to the Purchaser:

 

(a)               
Subsidiaries. All of the direct and indirect Subsidiaries of the Company are set forth on Schedule 3.1(a).
The Company owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear
of any Liens, and all of the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully
paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase such securities. If the Company has
no subsidiaries, all other references to the Subsidiaries or any of them in the Transaction Documents shall be disregarded.

    	9

    	 

    
 

(b)              
Organization and Qualification. Each of the Company and its Subsidiaries is an entity duly incorporated or otherwise
organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with
the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted.
Neither the Company nor any Subsidiary is in violation or default of any of the provisions of its respective certificate or articles
of incorporation, bylaws or other organizational or charter documents. Each of the Company and its Subsidiaries is duly qualified
to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of
the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified
or in good standing, as the case may be, could not have or reasonably be expected to result in a material adverse effect on (i)
the legality, validity or enforceability of any Transaction Document, (ii) the results of operations, assets, business, prospects
or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) the Company’s ability
to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or (iii),
a “Material Adverse Effect”). No Action has been instituted in any such jurisdiction revoking, limiting or curtailing
or seeking to revoke, limit or curtail such power and authority or qualification.

 

(c)               
Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate
the transactions contemplated by this Agreement and each of the other Transaction Documents to which it is a party and otherwise
to carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement and each of the other Transaction
Documents to which it is a party by the Company and the consummation by it of the transactions contemplated hereby and thereby
have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company,
the Board of Directors or the Company’s stockholders in connection therewith other than in connection with the Required Approvals
(as defined below). Each Transaction Document to which it is a party has been (or upon delivery will have been) duly executed by
the Company and, when delivered in accordance with its terms, will constitute the valid and binding obligation of the Company enforceable
against the Company in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy,
insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally,
(ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and
(iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

(d)              
No Conflicts. The execution, delivery and performance by the Company of this Agreement and the other Transaction
Documents to which it is a party, and the consummation by the Company of the transactions contemplated hereby and thereby (including
without limitation the issuance and sale of the Securities), do not and will not: (i) conflict with or violate any provision of
the Company’s or any Subsidiary’s certificate or articles of incorporation, bylaws or other organizational or charter
documents, (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default)
under, result in the creation of any Lien upon any of the properties or assets of the Company or any Subsidiary, or give to others
any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement,
credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which
the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected,
or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment,
injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary is subject
(including federal and state securities laws and regulations), or by which any property or asset of the Company or a Subsidiary
is bound or affected, except in the case of clause (ii), such as could not have or reasonably be expected to result in a Material
Adverse Effect.

    	10

    	 

    
 

(e)               
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) the filings required pursuant to Section 4.3 of this Agreement, and (ii) such filings, if any, as are required
to be made under applicable state securities laws (collectively, the “Required Approvals”).

 

(f)               
Issuance of the Securities. The Securities are duly authorized and, when issued and paid for in accordance with the
applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed
by the Company other than restrictions on transfer provided for in the Transaction Documents. The Company shall at all times reserve
and keep available out of its authorized but unissued shares of Common Stock, solely for the purpose of effecting the conversion
of the Shares on each Conversion Date, such number of its shares of Common Stock as shall from time to time be sufficient to effect
the conversion of all outstanding Shares. The issuance by the Company to the Purchaser, and the resale by the Purchaser,
of the Securities have been registered under the Securities Act and all of the Conversion Shares when delivered will be freely
transferable and tradable on the Trading Market by the Purchaser without restriction (other than any restrictions arising solely
from an act or omission of the Purchaser). The Registration Statement is effective and available for the issuance or resale of
the Securities thereunder and the Company has not received any notice that the Commission has issued or intends to issue a stop-order
with respect to the Registration Statement or that the Commission otherwise has suspended or withdrawn the effectiveness of the
Registration Statement, either temporarily or permanently, or intends or has threatened in writing to do so. The “Plan of
Distribution” section under the Registration Statement as supplemented by the Prospectus Supplement permits the issuance
and sale or resale of the Securities, including the Conversion Shares.

    	11

    	 

    
 

(g)              
Capitalization. The capitalization of the Company is as set forth on Schedule 3.1(g), which Schedule 3.1(g)
shall also include the number of shares of Common Stock owned beneficially, and of record, by Affiliates of the Company as of the
date hereof. The Company has not issued any capital stock since its most recently filed periodic or
current report under the Exchange Act, other than (i) in payment for goods or services, (ii) pursuant to the Company’s
employee compensation agreements, (iii) upon the exercise of employee stock options under the Company’s stock option plans,
(iv) to employees pursuant to the Company’s employee stock purchase plans and (v) pursuant to the conversion and/or exercise
of Common Stock Equivalents outstanding as of the date of the most recently filed periodic report under the Exchange Act. 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 a result of the purchase and sale of the Securities or as set forth on Schedule
3.1(g), 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. 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 Purchaser) 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 validly
issued, fully paid and nonassessable, have been issued in 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.
There are no stockholder 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.

 

(h)              
SEC Reports; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents
required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d)
thereof, for the two (2) years preceding the date hereof (or such shorter period as the Company was required by law or regulation
to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein,
being collectively referred to herein as the “SEC Reports”) and any notices, reports or other filings pursuant
to applicable requirements of the Trading Market, on a timely basis or has received a valid extension of such time of filing and
has filed any such SEC Reports and notices, reports or other filings pursuant to applicable requirements of the Trading Market
prior to the expiration of any such extension. As of their respective dates, the SEC Reports complied in all material respects
with the requirements of the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained
any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order
to make the statements therein, in the light of the circumstances under which they were made, not misleading. The Company has never
been an issuer subject to Rule 144(i) under the Securities Act. The financial statements of the Company included in the SEC Reports
comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect
thereto as in effect at the time of filing. Such financial statements (i) have been prepared in accordance with United States generally
accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”), except as
may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may
not contain all footnotes required by GAAP, and (ii) fairly present in all material respects the financial position of the Company
and its consolidated Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods
then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.

    	12

    	 

    
 

(i)                
Material Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial
statements included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the date
hereof: (i) there has been no event, occurrence or development that has had or that could reasonably be expected to result in a
Material Adverse Effect, (ii) the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade payables
and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required
to be reflected in the Company’s financial statements pursuant to GAAP or disclosed in filings made with the Commission,
(iii) the Company has not altered its method of accounting, (iv) the Company has not declared or made any dividend or distribution
of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of
its capital stock and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except pursuant
to existing Company stock option plans. The Company does not have pending before the Commission any request for confidential treatment
of information. Except for the issuance of the Securities contemplated by this Agreement or as set forth on Schedule 3.1(i),
no event, liability, fact, circumstance, occurrence or development has occurred or exists, or is reasonably expected to occur or
exist, with respect to the Company or its Subsidiaries or their respective businesses, properties, operations, assets or financial
condition, that would be required to be disclosed by the Company under applicable securities laws at the time this representation
is made or deemed made that has not been publicly disclosed at least one (1) Trading Day prior to the date that this representation
is made.

 

(j)                
Litigation. There is no claim, action, suit, inquiry, notice of violation, proceeding or investigation pending or,
to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective properties
or assets before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county,
local or foreign, and including without limitation an informal investigation or partial proceeding, such as a deposition) (collectively,
an “Action”) which (i) adversely affects or challenges the legality, validity or enforceability of any of the
Transaction Documents or the Securities or (ii) could, if there were an unfavorable decision, have or reasonably be expected to
result in a Material Adverse Effect. Neither the Company nor any Subsidiary, nor any director or officer thereof (in his or her
capacity as such), is or has been the subject of any Action involving a claim of violation of or liability under federal or state
securities laws or a claim of breach of fiduciary duty. There has not been, and to the knowledge of the Company, there is not pending
or contemplated, any investigation by the Commission involving the Company or any current or former director or officer of the
Company (in his or her capacity as such). The Commission has not issued any stop order or other order suspending the effectiveness
of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the Securities Act and, to the Company’s
knowledge, no proceeding for such purpose is pending before or threatened by the Commission.

    	13

    	 

    
 

(k)              
Labor Relations. No material labor dispute exists or, to the knowledge of the Company, is imminent with respect to
any of the employees of the Company, which dispute could reasonably be expected to result in a Material Adverse Effect. None of
the Company’s or its Subsidiaries’ employees is a member of a union that relates to such employee’s relationship
with the Company or such Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a collective bargaining
agreement, and the Company and its Subsidiaries believe that their relationships with their employees are good. No executive officer,
to the knowledge of the Company, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality,
disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive
covenant in favor of any third party, and the continued employment of each such executive officer does not subject the Company
or any of its Subsidiaries to any liability with respect to any of the foregoing matters. The Company and its Subsidiaries are
in compliance with all U.S. federal, state, local and foreign laws and regulations relating to employment and employment practices,
terms and conditions of employment and wages and hours, except where the failure to be in compliance could not, individually or
in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(l)                
Compliance. Neither the Company nor any Subsidiary: (i) is in default under or in violation of (and no event has
occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary
under), nor has the Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation
of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of
its properties is bound (whether or not such default or violation has been waived), (ii) is in violation of any judgment, decree,
or order of any court, arbitrator or governmental body or (iii) is or has been in violation of any statute, rule, ordinance or
regulation of any governmental authority, including without limitation all foreign, federal, state and local laws relating to taxes,
environmental protection, occupational health and safety, product quality and safety and employment and labor matters, except in
each case as could not have or reasonably be expected to result in a Material Adverse Effect.

 

(m)            
Regulatory Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued
by the appropriate federal, state, local and foreign regulatory authorities necessary to conduct their respective businesses as
described in the SEC Reports (“Permits”), except where the failure to possess such Permits could not reasonably
be expected to result in a Material Adverse Effect, and neither the Company nor any Subsidiary has received any notice of Actions
relating to the revocation or modification of any Permit.

    	14

    	 

    
 

(n)              
Title to Assets. The Company and the Subsidiaries have good and marketable title to all real property owned by them
and good and marketable title in all personal property owned by them that is material to the business of the Company and the Subsidiaries,
in each case free and clear of all Liens, except for (i) Liens as do not materially affect the value of such property and do not
materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries and (ii) Liens
for the payment of federal, state or other taxes, the payment of which is neither delinquent nor subject to penalties. Any real
property and facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable
leases with which the Company and the Subsidiaries are in compliance.

 

(o)              
Patents and Trademarks. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications,
trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual
property rights and similar rights as described in the SEC Reports as necessary or material for use in connection with their respective
businesses and which the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual Property
Rights”). None of, and neither the Company nor any Subsidiary has received a notice (written or otherwise) that any of,
the Intellectual Property Rights has expired, terminated or been abandoned, or is expected to expire or terminate or be abandoned,
within two (2) years from the date of this Agreement. Neither the Company nor any Subsidiary has received, since the date of the
latest audited financial statements included within the SEC Reports, a written notice of a claim or otherwise has any knowledge
that the Intellectual Property Rights violate, misappropriate or infringe upon the rights of any Person. To the knowledge of the
Company, all such Intellectual Property Rights are enforceable and there is no existing infringement by another Person of any of
the Intellectual Property Rights. The Company and its Subsidiaries have taken reasonable security measures to protect the secrecy,
confidentiality and value of all items of intellectual property (whether owned or licensed), except where failure to do so could
not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(p)              
Insurance. The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against
such losses and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries
are engaged. Neither the Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance
coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue
its business without a significant increase in cost.

 

(q)              
Transactions With Affiliates and Employees. Except as set forth in the SEC Reports, none of the officers or directors
of the Company and, to the knowledge of the Company, none of the employees of the Company is presently a party to any transaction
with the Company or any Subsidiary (other than for services as employees, officers and directors), including any contract, agreement
or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or
from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any
entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner,
in each case in excess of $120,000 other than for: (i) payment of salary or consulting fees for services rendered, (ii) reimbursement
for expenses incurred on behalf of the Company and (iii) other employee benefits, including stock option agreements under any stock
option plan of the Company.

    	15

    	 

    
 

(r)                
Sarbanes-Oxley; Internal Accounting Controls. The Company is and shall be as of each Closing Date in compliance with
any and all applicable requirements of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof and thereof, and
any and all applicable rules and regulations promulgated by the Commission thereunder that are effective as of the date hereof
and as of such Closing Date. The Company and the Subsidiaries maintain a system of internal accounting
controls sufficient to provide reasonable assurance that: (i) transactions are executed in accordance with management’s general
or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity
with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s
general or specific authorization, and (iv) the recorded accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences. The Company has established disclosure controls and
procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and designed such disclosure controls and
procedures to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange
Act is recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms.

 

(s)               
Certain Fees. Except for a fee payable to Midtown Partners & Co., LLC (such broker or its successor or assign,
the “Broker”), no brokerage or finder’s fees or commissions are or will be payable by the Company to any
broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions
contemplated by the Transaction Documents. The Purchaser shall have no obligation with respect to any fees or with respect to any
claims made by or on behalf of other Persons for fees of a type contemplated herein that may be due in connection with the transactions
contemplated by the Transaction Documents.

 

(t)                
Investment Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for
the Shares, will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company
Act of 1940, as amended. The Company shall conduct its business in a manner so that it will not become an “investment company”
subject to registration under the Investment Company Act of 1940, as amended.

 

(u)              
Listing and Maintenance Requirements. The Company’s Common Stock is registered pursuant to Section 12(g) of
the Exchange Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating
the registration of the Common Stock under the Exchange Act, nor has the Company received any notification that the Commission
is contemplating terminating such registration. The Company has not, in the twelve (12) months preceding the date hereof, received
notice from any Trading Market on which the Common Stock is or has been listed or quoted to the effect that the Company does not
comply with the listing or maintenance requirements of such Trading Market. The Company is, and has no reason to believe that it
will not in the foreseeable future continue to be, in compliance with all such listing and maintenance requirements. The issuance
and sale of the Shares hereunder does not contravene the rules and regulations of the Trading Market.

    	16

    	 

    
 

(v)              
Application of Takeover Protections. The Company and the Board of Directors have taken all necessary action, if any,
in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under
a rights agreement) or other similar anti-takeover provision under the Company’s certificate of incorporation (or similar
charter documents) and the laws of its state of incorporation that is or could become applicable to the Purchaser as a result of
the Purchaser and the Company fulfilling their respective obligations or exercising their respective rights under the Transaction
Documents, including without limitation as a result of the Company’s issuance of the Securities and the Purchaser’s
ownership of the Securities.

 

(w)            
Effective Registration Statement. The Registration Statement has been declared effective by the Commission and remains
effective as of the date hereof and the Company knows of no reason why the Registration Statement will not continue to remain effective
for the foreseeable future. The Company is eligible to use Form S-3 registration statements for the issuance of securities.

 

(x)              
Disclosure. The Company confirms that neither it nor any other Person acting on its behalf (as such term is used
in Regulation FD) has provided the Purchaser or its agents or counsel with any information that constitutes or might reasonably
be expected to constitute material, non-public information except insofar as the existence and terms of the proposed transactions
hereunder may constitute such information. The Company understands and confirms that the Purchaser will rely on the foregoing representation
in effecting transactions in securities of the Company. All of the disclosure furnished by or on behalf of the Company to the Purchaser
regarding the Company, its business and the transactions contemplated hereby, including the Disclosure Schedules to this Agreement,
is true and correct and does not contain any untrue statement of a material fact or omit to state any material fact necessary in
order to make the statements made therein, in light of the circumstances under which they were made, not misleading.

 

(y)              
Solvency. Based on the consolidated financial condition of the Company as of the Closing Date, after giving effect
to the receipt by the Company of the proceeds from the sale of the Shares hereunder: (i) the fair saleable value of the Company’s
assets exceeds the amount that will be required to be paid on or in respect of the Company’s existing debts and other liabilities
(including known contingent liabilities) as they mature, (ii) the Company’s assets do not constitute unreasonably small capital
to carry on its business as now conducted and as proposed to be conducted including its capital needs, taking into account the
particular capital requirements of the business conducted by the Company and projected capital requirements and capital availability
thereof, and (iii) the current cash flow of the Company, together with the proceeds the Company would receive were it to liquidate
all of its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in
respect of its liabilities when such amounts are required to be paid. The Company does not intend to incur debts beyond its ability
to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt).
The Company has no knowledge of any facts or circumstances that lead it to believe that it will file for reorganization or liquidation
under the bankruptcy or reorganization laws of any jurisdiction within one (1) year from the last Closing Date hereunder.

    	17

    	 

    
 

(z)               
Tax Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to
result in a Material Adverse Effect, the Company and each Subsidiary (i) has made or filed all income and franchise tax returns,
reports and declarations required by any jurisdiction to which it is subject, (ii) has paid all taxes and other governmental assessments
and charges, shown or determined to be due on such returns, reports and declarations and (iii) has set aside on its books provision
reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations
apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the
officers of the Company or of any Subsidiary know of no basis for any such claim.

 

(aa)Acknowledgment
Regarding the Purchaser’s Acquisition of the Securities. The Company acknowledges and agrees that the Purchaser is acting
solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated
thereby. The Company further acknowledges that the Purchaser is not acting as a financial advisor or fiduciary of the Company (or
in any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby and any advice given
by the Purchaser or its representatives or agents in connection with the Transaction Documents and the transactions contemplated
thereby is merely incidental to the Purchaser’s acquisition of the Securities. The Company further represents to the Purchaser
that the Company’s decision to enter into this Agreement and the other Transaction Documents has been based solely on the
independent evaluation of the transactions contemplated hereby and thereby by the Company and its representatives.

 

(bb)          
Regulation M Compliance.  The Company has not, and to its knowledge no one acting on its behalf has, (i) taken,
directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security
of the Company to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or paid any compensation
for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay to any Person any compensation for soliciting
another to purchase any other securities of the Company, other than, in the case of clauses (ii) and (iii), compensation paid to
the Company’s placement agent (if any) in connection with the placement of the Securities.

 

(cc)           
Stock Option Plans. Each stock option granted by the Company under the Company’s stock option plans was granted
(i) in accordance with the terms of the applicable Company stock option plan and (ii) with an exercise price at least equal to
the fair market value of the Common Stock on the date such stock option would be considered granted under GAAP and applicable law.
No stock option granted under any of the Company’s stock option plans has been backdated. The Company has not knowingly granted,
and there is no and has been no Company policy or practice to knowingly grant, stock options prior to, or otherwise knowingly coordinate
the grant of stock options with, the release or other public announcement of material information regarding the Company or its
Subsidiaries or their financial results or prospects.

    	18

    	 

    
 

3.2             
Representations and Warranties of the Purchaser. The Purchaser makes
the following representations and warranties to the Company:

 

(a)               
Organization; Authority. The Purchaser is a limited partnership duly organized, validly existing and in good standing
under the laws of the State of Florida, with full right, power and authority to enter into and to consummate the transactions contemplated
by this Agreement and the other Transaction Documents to which it is a party and otherwise to carry out its obligations hereunder
and thereunder. The execution and delivery of this Agreement and the other Transaction Documents to which it is a party by the
Purchaser and performance by the Purchaser of the transactions contemplated hereby and thereby have been duly authorized by all
necessary action on the part of the Purchaser and no such further action is required. Each Transaction Document to which the Purchaser
is a party has been duly executed by the Purchaser, and when delivered by the Purchaser in accordance with the terms hereof, will
constitute the valid and legally binding obligation of the Purchaser, enforceable against it in accordance with its terms, except:
(i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws
of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability
of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions
may be limited by applicable law.

 

(b)              
Experience of The Purchaser. The Purchaser, 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 prospective
investment in the Securities, and has so evaluated the merits and risks of such investment. The Purchaser is able to bear the economic
risk of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.

 

(c)               
Short Sales. The Purchaser has not directly or indirectly executed any Short Sales or other hedging transactions
in the securities of the Company through the date hereof.

 

The Company acknowledges
and agrees that the representations contained in Section 3.2 shall not modify, amend or affect the Purchaser’s right to rely
on the Company’s representations and warranties contained in this Agreement or any representations and warranties contained
in any other Transaction Document or any other document or instrument executed and/or delivered in connection with this Agreement
or the consummation of the transaction contemplated hereby.

 

ARTICLE IV.

OTHER AGREEMENTS OF THE PARTIES

 

4.1             
No Transfer Restrictions. Certificates evidencing the Securities
shall not contain any legend restricting their transferability by the Purchaser. The Company shall cause its counsel to issue a
legal opinion to the Company’s Transfer Agent if required by the Transfer Agent to effect a transfer of any of the Securities;
such opinion shall be provided by the Company’s counsel at no expense to the Purchaser.

    	19

    	 

    
 

4.2             
Furnishing of Information; Public Information. As long as the Purchaser
owns any Securities, the Company covenants to use its best efforts 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 Section
15(d) of the Exchange Act even if the Company is not then subject to the reporting requirements of the Exchange Act. As long as
the Purchaser owns Securities that are “restricted securities” as that term is defined in Rule 144 that it has held
for less than one (1) year in accordance with Rule 144(d), if the Company is not required to file reports pursuant to the Exchange
Act, it will prepare and furnish to the Purchaser and make publicly available in accordance with Rule 144(c) such information as
is required for the Purchaser to sell the Securities. The Company further covenants that it will undertake its best efforts to
take such further action as any holder of Securities may reasonably request, to the extent required from time to time to enable
such Person to sell such Securities without registration under the Securities Act, including without limitation, within the requirements
of the exemption provided by Rule 144.

 

4.3             
Securities Laws Disclosure; Publicity. The Company shall timely issue
and file a Current Report on Form 8-K and press release disclosing the material terms of the transactions contemplated hereby,
and including the Transaction Documents as exhibits to such Current Report on Form 8-K, in each case reasonably acceptable to the
Purchaser and its counsel. From and after the issuance of such press release, the Company shall have publicly disclosed all material,
non-public information delivered to the Purchaser by the Company or any of its Subsidiaries, or any of their respective officers,
directors, employees or agents, in connection with the transactions contemplated by the Transaction Documents. The Company and
the Purchaser shall consult with each other in issuing any press releases with respect to the transactions contemplated hereby,
and neither the Company nor the Purchaser shall issue any such press release nor otherwise make any such public statement without
the prior consent of the other party. 

 

4.4             
Shareholder Rights Plan. No claim will be made or enforced by the
Company or, with the consent of the Company, any other Person, that the Purchaser is an “Acquiring Person” under any
control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or similar anti-takeover
plan or arrangement in effect or hereafter adopted by the Company, or that the Purchaser could be deemed to trigger the provisions
of any such plan or arrangement, by virtue of receiving Securities under the Transaction Documents or under any other agreement
between the Company and the Purchaser.

 

4.5             
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 the Purchaser or its agents or counsel with any information that the Company
believes constitutes material non-public information, unless prior thereto the Purchaser shall have executed a written agreement
with the Company regarding the confidentiality and use of such information. The Company understands and confirms that the Purchaser
shall be relying on the foregoing covenant in effecting transactions in securities of the Company.

    	20

    	 

    
 

4.6             
Use of Proceeds. The Company shall use the net proceeds from the
sale of the Securities hereunder for working capital and general corporate purposes and shall not use such proceeds for: (a) the
satisfaction of any portion of the Company’s debt (other than payment of trade payables in the ordinary course of the Company’s
business consistent with prior practice), (b) the redemption of any Common Stock or Common Stock Equivalents, (c) the settlement
of any outstanding litigation or (d) in violation of the Foreign Corrupt Practices Act of 1977, as amended, or any rules or regulations
of the Office of Foreign Assets Control of the U.S. Treasury Department.

 

4.7             
Indemnification of the Purchaser. Subject to the provisions of this
Section 4.7, the Company will indemnify and hold the Purchaser, Seaside 88 Advisors, LLC, and their respective directors, officers,
shareholders, members, partners, employees, agents and Affiliates (and any other Persons with a functionally equivalent role of
a Person holding such titles notwithstanding a lack of such title or any other title), each Affiliate, each Person who controls
the Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers,
shareholders, agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding
such titles notwithstanding a lack of such title or any other title) of such controlling persons (each, a “Purchaser
Party”) harmless from any and all losses, liabilities, obligations, claims,
contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys’
fees and costs of investigation that any such Purchaser Party may suffer or incur as a result of or relating to (a) any breach
of any of the representations, warranties, covenants or agreements made by the Company in this Agreement or in the other Transaction
Documents or (b) any action instituted against a Purchaser in any capacity, or any of them or their respective Affiliates, by any
stockholder of the Company who is not an Affiliate of the Purchaser, with respect to any of the transactions contemplated by the
Transaction Documents (unless such action is based upon a breach of the Purchaser’s representations, warranties or covenants
under the Transaction Documents or any agreements or understandings the Purchaser may have with any such stockholder or any violations
by the Purchaser of state or federal securities laws or any conduct by the Purchaser which constitutes fraud, gross negligence,
willful misconduct or malfeasance). If any action shall be brought against any Purchaser Party in respect of which indemnity may
be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the Company in writing, and the Company shall
have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable to such Purchaser Party. Any
Purchaser Party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but
the fees and expenses of such counsel shall be at the expense of such Purchaser Party except to the extent that (i) the employment
thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time
to assume such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion of counsel, a material
conflict on any material issue between the position of the Company and the position of such Purchaser Party, in which case the
Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel. The Company will not
be liable to any Purchaser Party under this Agreement (y) for any settlement by a Purchaser Party effected without the Company’s
prior written consent, which shall not be unreasonably withheld or delayed; or (z) to the extent, but only to the extent that a
loss, claim, damage or liability is attributable to any Purchaser Party’s breach of any of the representations, warranties,
covenants or agreements made by such Purchaser Party in this Agreement or in the other Transaction Documents. The indemnification
required by this Section 4.7 shall be made by periodic payments of the amount thereof during the course of the investigation or
defense, as and when bills are received or are incurred. The indemnity agreements contained herein shall be in addition to any
cause of action or similar right of any Purchaser Party against the Company or others, and any liabilities the Company may be subject
to pursuant to law.

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4.8             
Listing of Common Stock. The Company shall use best efforts to maintain
the listing or quotation (as applicable) of the Common Stock on its current Trading Market, and concurrently with the Initial Closing
the Company shall apply to list or quote the maximum number of Conversion Shares on such Trading Market and promptly secure the
listing of all of such Conversion Shares on such Trading Market. The Company further agrees, if the Company applies to have the
Common Stock traded on any other Trading Market, it will then include in such application all of the Conversion Shares, and will
take such other action as is necessary to cause all of the Conversion Shares to be listed or quoted on such other Trading Market
as promptly as possible. The Company will then take all action reasonably necessary to continue the listing or quotation and trading
of its Common Stock on a Trading Market and will comply in all respects with the Company’s reporting, filing and other obligations
under the bylaws or rules of the Trading Market.

 

4.9             
Stockholder Approval. The Company shall not issue Conversion Shares
to the Purchaser if such issuance would require stockholder approval pursuant to applicable rules of the Trading Market unless
and until such stockholder approval is obtained.

 

4.10         
Certain Transactions. The Purchaser covenants that neither it, nor
any Affiliate acting on its behalf, will execute any Short Sales of any of the Company’s securities during the period commencing
with the execution of this Agreement and ending on the Subsequent Closing Date.  

 

4.11         
Delivery of Securities After Closing. The Company shall deliver,
or cause to be delivered, the Shares purchased by the Purchaser at a Closing to the Purchaser within three (3) Trading Days of
the applicable Closing Date.

 

ARTICLE V.

MISCELLANEOUS

 

5.1             
Termination.  This Agreement may be terminated by the Purchaser
by written notice to the Company if the Initial Closing has not been consummated on or before July 1,
2012; provided, however,
that such termination will not affect the right of any party to sue for any breach by the other party.

 

5.2             
Fees and Expenses. Except as otherwise set forth in this Agreement
and as set forth in this Section 5.2, each party shall pay the fees and expenses of its own advisers, counsel, accountants and
other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery
and performance of this Agreement. The Company shall pay all stamp and other taxes and duties levied in connection with the delivery
of the Securities. Notwithstanding the foregoing, (a) at the Initial Closing, the Company shall reimburse the Purchaser for the
fees and expenses of its counsel, White White & Van Etten PC, in an amount equal to $25,000 and (b) at the Subsequent Closing,
the Company shall reimburse the Purchaser for the fees and expenses of its counsel, White White & Van Etten PC, in an amount
equal to $12,500, of which $6,250 shall be deducted from the fees owed to the Broker by the Company. Such legal fees may be withheld
by the Purchaser from the applicable Subscription Amount to be paid for the Shares purchased at the Initial Closing and Subsequent
Closing.

    	22

    	 

    
 

5.3             
Entire Agreement. The Transaction Documents, together with the schedules
thereto (including the Disclosure Schedules), contain the entire understanding of the parties with respect to the subject matter
hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties
acknowledge have been merged into such documents, exhibits and schedules.

 

5.4             
Notices. Any and all notices or other communications or deliveries
required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of:
(a) the date of transmission, if such notice or communication is delivered via facsimile or electronic mail at the facsimile number
or electronic mail address set forth on the signature pages attached hereto prior to 5:30 p.m. (New York City time) on a Trading
Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile or electronic
mail at the facsimile number or electronic mail address set forth on the signature pages attached hereto on a day that is not a
Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the second (2nd) Trading Day following
the date of mailing, if sent by U.S. nationally recognized overnight courier service or (d) upon actual receipt by the party to
whom such notice is required to be given. The address for such notices and communications shall be as set forth on the signature
pages attached hereto or as otherwise provided by written notice delivered in compliance with this Section 5.4 by the addressee
to the other party.

 

5.5             
Amendments; Waivers. No provision of this Agreement may be waived,
modified, supplemented or amended except in a written instrument signed, in the case of an amendment, by the Company and the Purchaser
or, in the case of a waiver, by the party against whom enforcement of any such waiver is sought. No waiver of any default with
respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or
a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or
omission of any party to exercise any right hereunder in any manner impair the exercise of any such right.

 

5.6             
Headings. The headings herein are for convenience only, do not constitute
a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.

 

5.7             
Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of the parties and their successors and permitted assigns. The Company may not assign this Agreement or any
rights or obligations hereunder without the prior written consent of the Purchaser (other than by merger). The Purchaser may assign
this Agreement or any rights or obligations hereunder without the prior written consent of the Company.

 

5.8             
No Third-Party Beneficiaries. This Agreement is intended for the
benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any
provision hereof be enforced by, any other Person, except as otherwise set forth in Section 4.8.

    	23

    	 

    
 

5.9             
Governing Law. All questions concerning the construction, validity,
enforcement and interpretation of the Transaction Documents shall be governed by and construed and enforced in accordance with
the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. The parties hereby waive
all rights to a trial by jury. If either party shall commence an action or proceeding to enforce any provisions of the Transaction
Documents, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorneys’
fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.

 

5.10         
Survival. The representations and warranties contained herein shall
survive the Closing and the delivery of the Securities.

 

5.11         
Execution. This Agreement may be executed in two or more counterparts,
all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have
been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart.
In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data
file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed)
with the same force and effect as if such facsimile or “.pdf” signature page were an original thereof.

 

5.12         
Severability. If any term, provision, covenant or restriction of
this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the
terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected,
impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ an alternative
means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction.

 

5.13         
Replacement of Securities. If any certificate or instrument evidencing
any Securities is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution
for and upon cancellation thereof (in the case of mutilation), or in lieu of and substitution therefor, a new certificate or instrument,
but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction. The applicant for
a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs (including customary indemnity)
associated with the issuance of such replacement Securities.

 

5.14         
Rescission and Withdrawal Right. Notwithstanding anything to the
contrary contained in (and without limiting any similar provisions of) the Transaction Documents, whenever the Purchaser exercises
a right, election, demand or option under a Transaction Document and the Company does not timely perform its related obligations
within the periods therein provided, then the Purchaser may rescind or withdraw, in its sole discretion from time to time upon
written notice to the Company, any relevant notice, demand or election in whole or in part without prejudice to its future actions
and rights.

    	24

    	 

    
 

5.15         
Remedies. In addition to being entitled to exercise all rights provided
herein or granted by law, including recovery of damages, each of the Purchaser and the Company will be entitled to specific performance
under the Transaction Documents. The parties agree that monetary damages may not be adequate compensation for any loss incurred
by reason of any breach of obligations contained in the Transaction Documents and hereby agree to waive and not to assert in any
action for specific performance of any such obligation the defense that a remedy at law would be adequate.

 

5.16         
Payment Set Aside. To the extent that the Company makes a payment
or payments to the Purchaser pursuant to any Transaction Document or the Purchaser enforces or exercises its rights thereunder,
and such payment or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated,
declared to be fraudulent or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise
restored to the Company, a trustee, receiver or any other person under any law (including, without limitation, any bankruptcy law,
state or federal law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part
thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not
been made or such enforcement or setoff had not occurred.

 

5.17         
Construction. The parties agree that each of them and/or their respective
counsel has reviewed and had an opportunity to revise the Transaction Documents and, therefore, the normal rule of construction
to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of
the Transaction Documents or any amendments hereto. 

 

*          *          *

    	25

    	 

    
 

IN WITNESS WHEREOF,
the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories
as of the date first indicated above.

 

 

 

	
        NanoViricides, Inc.

         

         
	Address for Notice:
	
        By:_____________________________________

             Name:

             Title:

         
	
        135 Wood Street

        Suite 205

        West Haven, CT 06516

        Attention: Eugene Seymour

        Fax: (203)

        Email: Eugene@nanoviricides.com

         

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

         

         
	
        Tarter, Krinsky & Drogin LLP

        1350 Broadway

        New York, NY 10018

        Attention: Peter Campitiello, Esq.

        Fax: (212) 216-8001

        Email: PCampitiello@tarterkrinsky.com

 

	
        Seaside 88, LP

         

        By: Seaside 88 Advisors, LLC
	Address for Notice:
	
         

         

        By:_____________________________________

             Name: William J. Ritger

             Title: Manager

         
	
        750 Ocean Royale Way, Suite 1101

        Juno Beach, FL 33408

        Attention: William J. Ritger and

        Denis M. O’Donnell, M.D.

        Fax: (866) 358-6721

        Email: wjr@seaside88.com

         

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

         

         

         
	
        White White & Van Etten PC

        55 Cambridge Parkway

        Cambridge, MA 02142

        Attention: David A. White, Esq.

        Fax: (617) 225-0205

        Email: daw@wwvlaw.com

 

 

    	26

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